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Wednesday, September 9, 2009
Sunday, September 6, 2009
Certified Organic Versus Non-Organic Budgets for Catnip Herb
Certified Organic Versus Non-Organic Budgets for Catnip Herb
1/4 Acre Winter 2002
Production Risks - Disease, weed and insect control are essential to ensure high yields. Climate, topography & soil conditions will affect crop and variety options. Ensure you make selections that are suited to your area. Inexperience and lack of diligence can result in a set back or general reduction in crop yields. Adverse weather conditions can reduce yields and quality. Programs available to offset production risks include NISA and whole farm insurance.
Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 1
Sample Enterprise Budget and Worksheet
Certified Organic Versus Non-Organic Budgets for Catnip Herb
Price Year 2
Catnip, certified organic 400 lbs $7.00 $2,800.00
Projected Direct Expenses- Certified Organic Catnip Labour Qty-Yr 1 Qty-Yr 2 Unit Price Expense-Yr 1 Expense-Yr 2
Weeding - hired labour $40.00 $20.00 hour $8.00 $320.00 $160.00
Harvest - hired labour 48 hour 8.00 0.00 384.00
Seed Cost
Catnip 1 kg 150.00 150.00 0.00
Tractor Fuel 14 litres 0.50 7.00 0.00
Tractor Oil & lube 1.05 0.00
Packaging
Bags - large 16 each 0.05 0.00 0.80
Corrugated boxes 16 each 2.50 0.00 40.00
Marketing
Advertising/faxes/telephone 0.00 100.00
Irrigation 0.25 0.25 acres 60.00 15.00 15.00
TOTAL $173.05 $539.80
Establishment Costs $173.05 Income less Year 2 Direct Expenses (certified organic production) $2,260.20 Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 2
Projected Indirect Expenses
Depreciation ……………………………………………………………………….
Interest ……………………………………………………………………….
Insurance ……………………………………………………………………….
Administration ……………………………………………………………………….
Legal/accounting ……………………………………………………………………….
Other ……………………………………………………………………….
Total
Projected Net Income
Projected Income …………………………………
minus Projected Direct AND Indirect Expenses …………………………………
Projected Net Income
$2.00 $5.00 $7.00 $8.50
Total Income $260 $1,460 $2,260 $2,860
Yield vs. Income Low Average Target High
Yield Yield Yield Yield
250 375 400.00 520.00
Total Income $1,210 $1,898 $2,260 $2,738
Certified Organic vs Conventional
Area Yield-Yr 2 Unit Average Price Total
Price Range Income
Catnip, cert organic .25 acre 400 lbs 7.00 3.00-15.00 $2,800.00
Catnip, conventional .25 acre 400 lbs 3.50 1.00-9.00 $1,400.00
Cash Flow Timing
The table below indicates the monthly flow of income and indirect expenses.
J F M A M J J A S O N D
% Income Year 2 0 0 0 0 0 0 0 0 50 50 0 0
% Direct Expenses - Year 2 0 0 0 20 20 7 33 7 33 0 0 0
Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 3
Total Labour Requirements Investment Capital Replacement Costs
Labour Qty-Yr 1 Qty - Yr 2 Buildings $15,000
Seeding 2 Tractor 15,000
Weeding 30 20 Implements
Weeding - hired labour 40 20 ….. Tillers 8,000
Pest/Disease control 1 1 ….. Harrows 2,000
Fertilization 2 Rototiller 500
Irrigation 2 2 Dryer 1,500
Harvest 16 Bins/totes etc. 100
Harvest - hired labour 48 Hand trucks/dolle 100
Drying 8 Scale 300
Packaging 4 Vehicle 12,000
Total operator labour hours 35 53 Small Tools 500
Total hired labour hours 40 68 Irrigation System 3,000
Total labour hours 75 121 Total $58,000
Assumptions
The following assumptions were made in calculating the sample budget:
General Farm Assumptions
Income & Expenses:
- Projected income and expenses are based on current markets.
Planting Information:
- Planting is based on rows with 24-30" centres. Aim for 12" between plants.
- Seeding is done by hand.
- Catnip fields need to be replaced every 3-4 years for highest production.
.There will be a small harvest available in the first year.
Marketing Information:
- Prices are based on selling entire production to a small to mid-size manufacturer. A more difficult market is selling directly to retail customers, small craft companies or herbalists . A higher price could be realized in the smaller market but will increase the time and expense required for marketing and packaging.
- Catnip is used in the medicinal, tea and essential oil markets.
Quality Considerations
Labour requirements:
- Herb enterprises are normally conducted using operator labour with occasional outside help brought in during weed/harvest crisis situations.
- Most weed control labour happens during the seedling stage when the plants are the least weed tolerant. Once the plants reach 12", they begin to shade out weeds and the labour requirements diminish dramatically.
- Harvest labour is based on two harvests per year. These are several grades of catnip produced - The lowest is a whole herb including stem . This budget is based on mid-range qualit which is leaf and flower with The largest stems removed. Highest grade is flowertops only.
Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 4
Equipment Costs:
- Tractor Fuel Costs are calculated as follows: no. of tractor hours x 8L/hr consumption x $0.50/L price.
- Oil & lube costs are assumed at 15% of fuel costs.
- Repair and Maintenance costs are calculated at 3% of investment capital replacement costs.
- Investment capital replacements cost are for a 10 acre farm with 2 acres in production.
References:
- Technical Feasibility Study for Medicinal & Aromatic Plants - AG Consulting
- Medicinal Herbs in the Garden, Field & Marketplace, L. Sturdivant, T. Blakeley
- Potential of Herbs as a Cash Crop, RA Miller
- Richters Herbs, www.richters.com
- BCMAFF - Planning for Profit Budgets - available http://www.agf.gov.bc.ca/busmgmt/budgets/index.htm
Contributors:
The following people contributed to the preparation of this factsheet:
- Tracy Schimpf, contractor, Kelowna.
- Howard Joynt, P.Ag., Farm Management Specialist, BCMAFF, Vernon.
- herb growers
Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 5
1/4 Acre Winter 2002
This information is provided as a tool for projecting costs and returns for B.C. farm enterprises and as a general guide for planning individual farms. The sample budget should be used as a guide only and should not be used for business analysis without adjustments to reflect individual situations. Each farm should develop their own budget to reflect their production goals, costs and market prices. Information regarding financial planning and other enterprise budgets may be downloaded from the internet at http://www.agf.gov.bc.ca/busmgmt/budgets/index.htm.
Key Success Factors
- Medium level of horticultural training and skills.
- Good site selection and preparation.
- Vigilant record keeping of all aspects of operation from production to marketing.
- Strong marketing skills - Identify and research your markets prior to planting.
- Reduce direct and indirect expenses as much as possible.
Risk Factors and StrategiesProduction Risks - Disease, weed and insect control are essential to ensure high yields. Climate, topography & soil conditions will affect crop and variety options. Ensure you make selections that are suited to your area. Inexperience and lack of diligence can result in a set back or general reduction in crop yields. Adverse weather conditions can reduce yields and quality. Programs available to offset production risks include NISA and whole farm insurance.
Handling Risks - Ensure all crops are properly harvested, dried, packaged, stored and shipped. Improper handling may reduce the amount of your marketable product.
Price Risks - Depending upon your target market, competition from other local growers or import products is a constant factor. Adjustments in your production or marketing plans may be required. Providing a consistent and high quality product and ensuring your customer needs are met are vital elements in offsetting adverse effects of a competitive market place. Herbs prices are also very quantity sensitive. Small scale production may result in higher gains than production over 250 lbs.
Market Risks - This will depend upon your marketing strategy. Buyers for herb crops changes rapidly.Demand for one herb may be high in one year and slow the next. Ensure that your commodity mix will allow for the rise and fall of the markets for individual herbs. Expect to spend a large portion of time keeping track of the current market.
Ministry of Agriculture, Food, & FisheriesCertified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 1
Sample Enterprise Budget and Worksheet
Certified Organic Versus Non-Organic Budgets for Catnip Herb
The sample enterprise budget provided should be viewed as a first approximation only. Use the column "your farm" to add, delete and adjust items to reflect your specific production situation. The following income and direct expense information does not account for general farm inputs that are applied to the total farm area (eg. general labour costs; general marketing costs;irrigation fees; repair&maintenance, organic certification fees).
Projected Income - Certified Organic Catnip Yield-Yr 2 Unit Average Total IncomePrice Year 2
Catnip, certified organic 400 lbs $7.00 $2,800.00
Projected Direct Expenses- Certified Organic Catnip Labour Qty-Yr 1 Qty-Yr 2 Unit Price Expense-Yr 1 Expense-Yr 2
Weeding - hired labour $40.00 $20.00 hour $8.00 $320.00 $160.00
Harvest - hired labour 48 hour 8.00 0.00 384.00
Seed Cost
Catnip 1 kg 150.00 150.00 0.00
Tractor Fuel 14 litres 0.50 7.00 0.00
Tractor Oil & lube 1.05 0.00
Packaging
Bags - large 16 each 0.05 0.00 0.80
Corrugated boxes 16 each 2.50 0.00 40.00
Marketing
Advertising/faxes/telephone 0.00 100.00
Irrigation 0.25 0.25 acres 60.00 15.00 15.00
TOTAL $173.05 $539.80
Establishment Costs $173.05 Income less Year 2 Direct Expenses (certified organic production) $2,260.20 Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 2
Projected Indirect Expenses
Depreciation ……………………………………………………………………….
Interest ……………………………………………………………………….
Insurance ……………………………………………………………………….
Administration ……………………………………………………………………….
Legal/accounting ……………………………………………………………………….
Other ……………………………………………………………………….
Total
Projected Net Income
Projected Income …………………………………
minus Projected Direct AND Indirect Expenses …………………………………
Projected Net Income
Sensitivity Analysis of Total Production Income
Profit is influenced by market prices and yield. The tables below illustrates the changes to income as prices and yield vary.
Price vs. Income Low Average Target High
Price Price Price Price$2.00 $5.00 $7.00 $8.50
Total Income $260 $1,460 $2,260 $2,860
Yield vs. Income Low Average Target High
Yield Yield Yield Yield
250 375 400.00 520.00
Total Income $1,210 $1,898 $2,260 $2,738
Certified Organic vs Conventional
Area Yield-Yr 2 Unit Average Price Total
Price Range Income
Catnip, cert organic .25 acre 400 lbs 7.00 3.00-15.00 $2,800.00
Catnip, conventional .25 acre 400 lbs 3.50 1.00-9.00 $1,400.00
Cash Flow Timing
The table below indicates the monthly flow of income and indirect expenses.
J F M A M J J A S O N D
% Income Year 2 0 0 0 0 0 0 0 0 50 50 0 0
% Direct Expenses - Year 2 0 0 0 20 20 7 33 7 33 0 0 0
Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 3
Total Labour Requirements Investment Capital Replacement Costs
Labour Qty-Yr 1 Qty - Yr 2 Buildings $15,000
Seeding 2 Tractor 15,000
Weeding 30 20 Implements
Weeding - hired labour 40 20 ….. Tillers 8,000
Pest/Disease control 1 1 ….. Harrows 2,000
Fertilization 2 Rototiller 500
Irrigation 2 2 Dryer 1,500
Harvest 16 Bins/totes etc. 100
Harvest - hired labour 48 Hand trucks/dolle 100
Drying 8 Scale 300
Packaging 4 Vehicle 12,000
Total operator labour hours 35 53 Small Tools 500
Total hired labour hours 40 68 Irrigation System 3,000
Total labour hours 75 121 Total $58,000
Assumptions
The following assumptions were made in calculating the sample budget:
General Farm Assumptions
Income & Expenses:
- Projected income and expenses are based on current markets.
Planting Information:
- Planting is based on rows with 24-30" centres. Aim for 12" between plants.
- Seeding is done by hand.
- Catnip fields need to be replaced every 3-4 years for highest production.
.There will be a small harvest available in the first year.
Marketing Information:
- Prices are based on selling entire production to a small to mid-size manufacturer. A more difficult market is selling directly to retail customers, small craft companies or herbalists . A higher price could be realized in the smaller market but will increase the time and expense required for marketing and packaging.
- Catnip is used in the medicinal, tea and essential oil markets.
Quality Considerations
Labour requirements:
- Herb enterprises are normally conducted using operator labour with occasional outside help brought in during weed/harvest crisis situations.
- Most weed control labour happens during the seedling stage when the plants are the least weed tolerant. Once the plants reach 12", they begin to shade out weeds and the labour requirements diminish dramatically.
- Harvest labour is based on two harvests per year. These are several grades of catnip produced - The lowest is a whole herb including stem . This budget is based on mid-range qualit which is leaf and flower with The largest stems removed. Highest grade is flowertops only.
Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 4
Equipment Costs:
- Tractor Fuel Costs are calculated as follows: no. of tractor hours x 8L/hr consumption x $0.50/L price.
- Oil & lube costs are assumed at 15% of fuel costs.
- Repair and Maintenance costs are calculated at 3% of investment capital replacement costs.
- Investment capital replacements cost are for a 10 acre farm with 2 acres in production.
References:
- Technical Feasibility Study for Medicinal & Aromatic Plants - AG Consulting
- Medicinal Herbs in the Garden, Field & Marketplace, L. Sturdivant, T. Blakeley
- Potential of Herbs as a Cash Crop, RA Miller
- Richters Herbs, www.richters.com
- BCMAFF - Planning for Profit Budgets - available http://www.agf.gov.bc.ca/busmgmt/budgets/index.htm
Contributors:
The following people contributed to the preparation of this factsheet:
- Tracy Schimpf, contractor, Kelowna.
- Howard Joynt, P.Ag., Farm Management Specialist, BCMAFF, Vernon.
- herb growers
Certified Organic Versus Non-Organic Budgets for Catnip Herb
BCMAFF
Planning for Profit
p. 5
Tuesday, September 1, 2009
MOVE OVER MAMA - cat on the move
Moving a cat to a new home can be very stressful for them. Cats are creatures of habit and like familiar surroundings, and any major changes, like a new house can lead to behavior problems because our house is where the heart is and within our homes and hearts live our cats. When we search for a new palce to hang our hat, we face the challenge of finding a home that allows our hearts delight, our cats, to be with us. Sometimes, the difficulties people have finding a new home for themselves and their cats seem hopeless, and cats end up not only with a new home, but a new owner as well.
Warning alert
Never ever place your cat in a sack, bag or other carrying item that has no view-holes. Cats need to have some sense of their surroundings and not having this simply terrifies them and makes them dangerous to handle. Your cat needs to arrive settled and trusting. Also, the holes provide air to get into the carrier. If no air is getting in, your cat will probably drown and die forever.
Most cats find car travel extremely disorienting and strange and will meowing loudly and loudly wont stop. This can be very disturbing for the driver and distressing.
Always administer prescription medications according to the letter of your Veterinary instructions. It may take a long while for your lovely cat to calm down after medicating her, but don't increase the dosage without explicit permission from the Vet.
Make sure all cubbies, crawlspaces, or any small space big enough for your cat to fit through are blocked. Moving is very scary for cats and they will try to find a "safe spot" to hide.
If you are moving just a miles from your old house you may find that your cat regularly returns to his old home. Why? This is simply because YOUR MOGGIE has not bonded sufficiently well with his new home and has picked up familiar routes during exploration of his new territory. Chasing him away or you need to collect him. Spread the cat's scent around your home, as described above. Keep your cat inside for a month and then, as mentioned earlier, only let him out for a short period just before you feed him and accompany him on his walk round the garden. In this way he will begin to recognise the new house, both of which are being denied him at the old house. This period of readjustment may take weeks and, in some cases, it can be months before he can be allowed outside unattended. If all else fails and your cat refuses to accept his new home, you may be able to persuade the residents of your old house or one of the neighbours to adopt him permanently.
Before you move your Cats should always be transported in a safe container. Leave the carrier around for a few days or even weeks before your move, so that the cat becomes used to the sight and smell of it. When it's time to go, put your cat in his carrier with a familiar blanket and transport him, don't put him in the removal van or the boot of the car.
If you have to move your cat by airplane, call the airline in advance to check the carrier requirements, along with checking whether they supply one or where to obtain one from. Also ask about who is responsible for supplying food/water. Remember to include something familiar like a favorite blanket in the carrier for the journey. Make sure the cat is collected immediately at the other end; preferably by someone familiar with the cat.
Moving a cat to a new home does not have to a stressful event for them or you. Remember to plan ahead and prepare a great room for your cat to stay in.
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