| SUBSCRIBE MARKETS WEATHER LINKS HOME |
|
Better DecisionsMaking the transition from vegetables to agri-entertainmentThis three-generation farm family is moving successfully from a traditional commercial vegetable operation to agri-tourism. Its target market: the 750,000 people who live in a 40-60 mile radius of Madison, Wis.by PETER COUGHLERInnovative, flexible, optimistic and always in transition are just a few of the words to describe Gatzke Farms Inc. of Poynette, located about 30 kilometres outside Madison, Wis.Over the last 15 years, the Gatzke family (led by Don with the help, more recently, of his son, Scott) has been making the transition from a large-scale commercial vegetable operation to a pick-your-own and retail operation called Wildberry Farm. But this is not a typical pick-your-own operation. They also hope to develop the farm into a destination for families to come and enjoy themselves, and of course, to spend money. Located relatively close to the large population centre of Madison, they see an opportunity to add "agri-tourism" and "agri-entertainment" to their operation. This was explained to the participants at the National Farm Transition Network's annual meeting and conference when they recently toured the operation. So it was no surprise that the Gatzkes were in the middle of a major building project, completing their "Barn Market and Bakery." This will serve as their retail store to market various locally produced fruits and vegetables (including their own) and eventually baked goods. This innovation, creativity, energy and optimism started with Don's father, Harold, back in the 1950s. Harold, who is 91 and still helps out, is no less enthusiastic about the changes being made to the operation today. Gatze Farms has gone from an operation of 2,000-plus acres back in the 1980s growing head lettuce, processing carrots, onions, red potatoes and mint on muck and peat soil to the pick-your-own and entertainment operation of today. The Gatzkes currently grow 11 acres of strawberries, 10 acres of vine crops (pumpkins), 12 acres of sweet corn, an acre of asparagus, 1.5 acres of peas, field corn and soybeans for their crop rotation. Last year, they also planted an acre of apples and are planning to put in raspberries next spring. On top of all of this, the family is making some intergenerational changes with Scott (Don's son) taking over the management of the company. The business is operationally structured as a corporation. However, the land is owned either personally or in partnerships. The corporation then rents the land from the landowner. Don believes that this strategy, with proper estate planning and by owning the land outside of the operating entity (the corporation), should provide them with some flexibility and make it easier to pass on the land to other family members who are not part of the business. The land rent also has the added bonus of being income for the semi-retired and retired family members. The corporation has both voting and non-voting shares. The voting shares are held by the family members who are directly involved with the management of the business. The non-voting shares are for other family members who not directly involved. This arrangement, which his parents had put in place a number of years before, has worked out quite well and accomplished what was desired. A major focus has been to make the farm a destination for families to come to the country, have fun and enjoy themselves. Scott, who handles the management and marketing aspects of the business, explains that the target market is the Madison area, basically a 40-60 mile radius, with a population of some 750,000. Their target audience is young families with little children and the Gatzkes have found that they will travel one and a half to two hours to visit them. While items like baked goods also help, the major attraction is the "agri-entertainment" provided -- activities like wagon rides, corn mazes, a potato slingshot, puppet shows, music and animatronics (animated attractions). Such programs as the wagon rides bring people out and provide them with a feeling of "connectedness" in a relaxed rural setting. The average stay in the fall is three hours. They also market heavily, using their mailing list of around 7,000 to send out postcards when the strawberries are ready. They also use the Internet a fair amount, both for marketing and to get new ideas. And they are members of the North American Direct Farmers Marketing Association (NADFMA). This group has proved to be a valuable resource, with members very willing to share their ideas and experiences. Scott believes that 30 percent of the success of an operation like theirs is due to growing a good product and the rest is marketing. Scott handles the management with help from his dad, while Scott's wife is responsible for the new retail space. There is also a mechanic on staff, who is currently making the transition from straight farm equipment to the animatronics, so he can handle the installation and repair of the new animated attractions they are putting in. A husband and wife employee team is also a critical ingredient to the success of the operation, the wife handling the bakery when it opens and the husband working on the field side of the operation.
Though Scott concedes that they have experienced a learning curve, they are very excited about the future. Innovating and unafraid to try new things, Gatzke and Wildberry Farms should be an operation to watch over the next few years. BF Peter Coughler, M. Sc., P. Ag., is the Ontario Ministry of Agriculture and Food's Succession Planning Program Lead, Brighton.
|