Farm Business

Biodiesel - How It Is Made And It's Many Uses

Biodiesel – How It Is Made And It’s Many Uses

Sam Johnson No Comments

Why Biodiesel?

Because Biodiesel is a cleaner-burning diesel fuel, made from 100% natural, 100% renewable vegetable sources, its uses in today’s society may surprise you. With gas prices increasing and growing environmental awareness, the need to consider alternate energy and fuel sources are becoming a necessity. One alternative is the use of Biodiesel fuel, which is becoming more and more popular today.

Biodiesel - How It Is Made And It's Many Uses

Below are nine ways Biodiesel is being used. Some of which you may never have realized:

1) Car Rental – Yes that’s. A Maui and Los Angeles car rental rents cars that run on it.

2) Home heating fuel – More people are taking a look at it as an alternative for heating their home. Most oil-fired or boiler furnaces can use Biodiesel (B20), which is a fuel made of 80 percent traditional heating oil and 20 percent Biodiesel. Some people are getting their furnaces adapted to be able to burn B100, a fuel made entirely of vegetable oils, which burns much cleaner than traditional heating oil.

3) Electricity Generation – Diesel generators that produce electricity are now running on bio-fuel A superior alternative to the typical coal burning electricity generating plants currently being used in the United States. Running on it is an inexpensive, renewable and clean way of creating electricity.

4) Trucking Industry – More and more truckers are switching from diesel fuel to bio-fuel. The benefits are numerous not to mention the advantage of helping the environment and reducing our dependency on foreign oil, while saving money.

5) Agriculture – Not only a producer of Bio-fuel, but also a consumer. Tractors, reapers, tillers, pickers, conveyors, generators, pumps, and irrigation systems which normally uses diesel fuel, now use Biodiesel to fuel their work, bringing agriculture full circle from producer to consumer.

6) Marine Vehicles – Commercial fleets such as ferries, recreational yachts, sailboats, and motor boats are all candidates for it. Pacific Whale Foundation, located in Hawaii, use Biodiesel bin their boats.

7) Tax Incentive – The IRS is offering tax incentives to anyone that use and produce bio-fuel. The US Government is working to reduce greenhouse gas emissions by giving producers of Biodiesel fuel government funds. The tax incentive works to help tax paying customers by lowering the cost of the fuel.
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8) Lubrication Additive – Because it is a better lubricant than current low-sulfur petroleum, fuel injectors and other types of fuel pumps can rely on Biodiesel fuel for lubrication. Other numerous applications can also make use of it’s lubricate properties, such as concrete forms and asphalt trucks.

9) Cleaner Environment – It reduces carbon dioxide exhaust emissions by up to 80%. Because of this, it has the potential to reduce air toxics and cancer causing compounds.

Because it is a cleaner-burning diesel fuel, made from 100% natural, 100% renewable vegetable sources, its uses in today’s society may surprise you. Most oil-fired or boiler furnaces can use Biodiesel (B20), which is a fuel made of 80 percent traditional heating oil and 20 percent Biodiesel.

Buy Local Produce Whenever Possible

Try Your Best To Buy Local Produce Whenever Possible

Larry Gonzalez No Comments

Buy Local Produce Whenever Possible

What can we do? Well, you can try your best to buy local produce whenever possible. Even though America has lost more than 5 million farms (USDA figures) since 1935, there are still many farmers who have generated markets for themselves in the cut throat world of global competition.

To keep produce fresh during the long haul across oceans and continents, produce companies have to use chemical preservatives. Well, you can try your best to buy local produce whenever possible. Many small farms surrounding suburban communities or urban city centers have daily or weekly farmers’ markets. Try your local business improvement association or municipal office to see if they might be able to help.

Local Produce Farmers Market
It really is enjoyable to mix up your food shopping routine by purchasing your fresh produce and meats at your local farmers market.

If you’re like me and treasure the rural areas surrounding your urban region, then you also likely feel the sense of sadness each time a farm is sold for yet another commercial or residential development. Here’s your chance to do your bit to save the “family farm” (and help curb urban sprawl).

It really is enjoyable to mix up your food shopping routine by purchasing your fresh produce and meats at your local farmers’ market. In many cases you can negotiate prices (which is fun). I also find your fellow shoppers are generally in a happier frame of mind when they’re perusing farmer’s booths than when they’re steering a shopping cart through crowded aisles at the grocery store.

Do you know how far the apple in your kitchen traveled before you picked it up at the grocery store? According to the Leopold Center for Sustainable Agriculture, apples in American grocery stores typically travel 1,726 miles before reaching your kitchen!

Buy Local Produce Food … Save The Environment

The impact on the environment is one issue, but we also have to worry about preservatives that are used to keep this apple crispy and nice during its very long journey to your grocery store. To keep produce fresh during the long haul across oceans and continents, produce companies have to use chemical preservatives. It is well documented that preservatives are hazardous to human health.

Just think about the fuel needed to transport produce like this across the country or across borders. Think about the pollution generated by the vehicles carrying this produce. An apple a day may keep the doctor away but the fumes accompanying it will definitely hurt us!

Find out the location of your nearest farmers’ market, note the dates that they are open and plan to be early and there bright to get the freshest, tastiest food choices of the day! Your family will thank you, you’ll be supporting your local economy and helping to save the environment.

Many small farms surrounding suburban communities or urban city centers have daily or weekly farmers’ markets. These markets connect regional small farmers with urban and suburban dwellers. Try your local business improvement association or municipal office to see if they might be able to help.

Since produce from your local farms are traveling very short distances there is less pollution created in their transport. There is also less packaging and processing involved which also helps to lessen the amount of garbage we put into the environment and ourselves!

small business vs. big business

Why Small Farm Business Mean Big Business

Sam Johnson No Comments

Small Business Movie You've got mail. Tom Hanks. Meg RyanThis is a film about her small bookstore business. Meg’s only good side is that she provides personal company. She recognizes her customers by name and she has an extremely little staff, about 2 or 3 employees.

Nowadays, this scenario will certainly not be true anymore.

In the end, Meg had to give up her business since her consumers went to Tom’s monstrous bookshop.

Tom’s character, on the other hand, moved into town to develop a branch of a big chain-bookstores. He supplied affordable rates together with a huge choice, as compared with Meg’s little bookshop on one corner of the community’s roads.

A growing number of small organizations are paving the way and providing huge companies a shot in their very own business.

In the flick “You’ve Got Mail”, the sub-plot aside from the love angle is that the heroine (played by Meg Ryan) lost her company when the big-time book shop proprietor (played by Tom Hanks) relocated into town.

In the motion picture, the reason Meg Ryan was compelled out of company is due to the fact that she could not profit anymore. Her rates were high as compared to the various other discounted rates.

As a tiny organization you could transform around and also have these top qualities on your side. This will help you to contend against the large sharks in business.

Meg’s character possessed a charming little bookstore which she acquired from her mom. The costs of her books were a little steep, but she made up for it in service. She packed the books in a specialized bag, and she recognized all her clients by name.

Below are some points on exactly how you could hold your personal versus a large business:

1. Local business have large competitors.


This means that you have to recognize ways to survive out there.

Regardless of what nature of business you have, it is much better to learn more about the competitors.  And you will certainly be able to endure.

Below are some suggestions on exactly how you could make it through the large competitors:

Make use of these totally free business tips whenever you can.

Keep a limit on your budget plan when it seems as if your capital is in a descending slope. This does not simply help widen your understanding. However it will certainly additionally give you a suggestion of how various other businesses are ran by small proprietors.

Keep your business alive.


Be constantly mindful of the trends in the market that you remain in. Monitor the cash flow and discover how to prevent potential troubles before they arise.

Assuming that you already have a backup plan, ensure that you actually visualize the results of a certain company decision.

It is better to seek expert help instead of exercising a plan that could result in failure of your business.

Obtain a 3rd as well as 2nd point of view. Because sometimes spontaneous decisions may lead to the end of your little company.

In your day-to-day operation, ensure that you visualize where you want your business to be 5 or 10 years from now.

 

Keep your books straight.

This is a good idea if you are one who tends to buy on impulse. It is also necessary if you pay attention to people who  sweet-talk you into acquiring “required” things.

Know precisely where your business is headed.

Do not be terrified to seek professional help.

The fall of a lot of tiny companies begin with decisions on troubles which are not thoroughly analyzed.

Do not invest in unneeded business acquisitions.

A better choice is for you to hire an expert accounting professional. He will figure out the returns of your financial investment. Also he can handle other financial business of your company.

2. Find out the best ways to market your tiny organization.

Marketing is not attempting to sell your professional services and items to everyone.

It has to do with knowing who to market your products to.

In marketing, it is excellent to keep in mind these following facts:

This will certainly be a fantastic side for you to have versus the bigger business.

Do not stop the advertising and marketing procedure.

Develop a tailored and also excellent partnership with your customers.

Remember, little organizations are huge businesses nowadays, which do not hesitate to work hard for the firm that they have – not matter how tiny.

Learn about your consumers.

As a small organization, you need to regularly examine the markets that you pursue so that you could connect better to your clients.

If you work hard, make sensible company decisions, discover how you can market your small company and also customize your client interaction, your small-scale company can rise to the top.

Communicate with your clients.

True, big businesses could provide reduced rates, yet it is harder for them to track customers on a more personal basis.

Cashflow and the Family Business

Larry Gonzalez 2 comments

Most businesses have issues with cashflow as it never seems be that expenses need to be paid before you actually get paid.  Unless you are a well established business and your income is predictable for years, banks can be a very fickle place to get help with this issue.

Personally, I like to deal with non-bank lenders as I find them much better to work with.  In my family’s experience, asking a bank for a loan has always been an awkward experience so we tend to stay away from it.  What I mean by awkward is that they want to know everything about you and the business history for many years.  When I need Small Business Funding, I need it when I apply for it, not in 3 months from now and I do not want the bank to take a lien on every piece of machinery and acre of land we have when I only need funding to cover some Operating Expenses.

Create Cashflow with a Farm Market Stand

 

If I were looking to borrow money to buy more land, I would be willing to use that land as collateral, but if I only need a Short-term Business Loan, why would I be expected to tie up everything I own as collateral.  To me, that is just tying my hands so I cannot work forward.

Alternative Cashflow Lenders will generally take the items involved in the transaction as collateral, and that is it.

What I mean by that is if you are looking for Cashflow Financing to cover short term Operational Expenses, Accounts Receivable Factoring or Accounts Receivable Financing as it is also called, the lender will take the Accounts Receivables as collateral.  Generally speaking, they will not want to take a lien on everything you own – commercially and personally – like the banks will nearly always do.

Now I will say, that as far as interest is concerned, the alternative lenders do charge a bit more than a bank would but to me, the cost far outweighs the benefits of keeping your other assets available for leveraging if the need arises.  To me, if I had everything tied up with the bank and then I needed to get additional funding for something and because of that I would need to go back to the bank, hat in hand, asking to have permission to do something with my own property – that is awkward to say the least!

Now I am not going to tell you which alternative lender to go to because everyone has their preferences but I will say that for me, I tend to return to the same lender each time the need arises as I can work with them seamlessly from where I am, I do not need to travel to the city for countless meetings which takes me away from what I should be doing.  I like to do as much as I can over the internet and the Commercial Lenders on the internet allow me to get the funding I need with the least amount of inconvenience.

As always, if you have any comments or questions, feel free to message me.

 

 

Rural Property Mortgages

Larry Gonzalez 2 comments

When you are looking to purchase your first rural property or add to what you currently have, the bank is generally the first thing that comes to mind when looking to borrow the money to make the purchase.  In my experience, that may be setting yourself up for more headaches that it is worth.

Rural Field View

My preference is to keep the bank as far away from my property as I can and this includes when it come time to borrow money to buy more land.  Now I am not saying you need to save your money to buy acreage in cash.  That is actually a really bad idea as you will tie up all the money you have which could be used for operating your business, you will miss out on the tax advantages of being able to expense your interest payments and limit your ability of expansion quite drastically.

Borrowing money to expand your farm business can be a good thing as long as it meets your needs and does not involve leveraging more that is really required.  Most often, when you take a bank loan, the bank will want not only to have a lien on the property you purchase, but every other property and asset you have in the business as well a personally.  This will generally be justified by the bank in stating if you have enough confidence in yourself to make the payment, this should not be an issue.  So long as you pay, nothing will be in jeopardy.

While this may be true, the other side of the issue is that you are running a business and if you leverage every asset you have for a particular purchase today, what happens tomorrow if you need funding for something else?

The answer to that question is that you will need to return to the bank to ask them to lend the funding to you and if they refuse you, you will have no other options because you will not have any assets available to borrow against to get the additional funding you want.  Most people do not see this until it is too late and they they have to scramble to find a way to take the bank out with Alternative Commercial Funding such as Commercial Rural Mortgage Lenders and the like.

I will tell you that this is much harder than is sounds.  Most often, the bank will be so well entrenched in your business that taking them out will come at a great business and personal cost – something that is not discussed as you are signing the contracts with them at their office.

Banks are not always the worst choice, but they surely are not always the best choice.  Please, do yourself a favor when you are looking to purchase property, do not just talk to your bank, also speak with Alternative Rural Mortgage Lenders for Rural Property Mortgages.  The interest may be a bit more but you will not have all the other restrictions place upon you that you will likely have with the bank.  Keep your eyes wide open!

As always, if you have any question or comments, I would be please to hear from you.

 

Heavy Equipment Financing

Sam Johnson No Comments

Have you ever tried to get Equipment Financing for your Heavy Equipment at a bank? If you have, you will relate to this article.

Last year I had to purchase a new combine for my farm and I just happened to be in my bank doing a deposit and I mentioned that I was on my way to the John Deere dealer to shop for a new combine. The teller I was dealing with, who was doing her job, suggested I speak with one of their representatives so the financing could be set up for the purchase. Since I had a bit of time on my hands, I decided to see what they had to say.

JD Combine

Let me say at this point, I have grown accustomed to dealing with a particular Alternative Lender for my Equipment Financing but I thought why not see what they can offer me.

To make a long story short, I met with the banker and he told me all about how the bank can offer. Once the niceties had concluded the bank proceeded to advise me of all the information they would need to have me supply they with which were the tax returns for the last 3 years, audited financial statements for the last 5 years, they wanted my wife to come in to fill out an application as well because they would need a joint personal guarantee from both of us and once they had that, they would be able to review the application to see if we could get approved. The review process was expected to take about 4 weeks once all information would be provided to them.

At that moment, I thanked the banker for his time and excused myself from his office.

Generally speaking, when you are dealing with an Alternative Commercial Lender, they will want the application completed, bank statements for the last couple of years and sometimes confirmation that our taxes are paid to the current date.

Processing time with the Equipment Finance Company I use is normally within 48 hours of submitting the application, we always have a response.

Despite from the fact that the Alternative Commercial Funder is so much quicker, the fact that they only have a lien on the equipment I purchase, not everything our family owns is a lot more comforting than the bank who wants to have everything we have as collateral as well as personal guarantees from both my wife and I.

If you have had similar experiences or any comments, it would be great to hear from you!

AR Factoring for Farmers Market Operations

Larry Gonzalez No Comments

In Ohio, we have some of the best Farmers’ Markets anywhere and it can be a pretty good seasonal business. Many farmers have their own road side stands and these same farmers will sell on a wholesale basis to other stands or markets. While most farmers do require to be paid upon delivery of their produce, some of the bigger markets cannot operate that way and will pay on terms – usually net 30 days.

Farmers Market Sign

If you are working with the larger markets, which is much simpler for a farm to supply, not having to worry about the smaller markets who only need a little produce every few days, it is much better for business if you sell to the larger markets so that you have only a few customers to be concerned with.

The downside to that plan is that you will need to cover the expenses until the time that the large markets make the payment to you. This is where AR Factoring comes into play. These larger markets will typically be customers which most Accounts Receivable Factoring Companies will have no problem advancing funds against the delivered goods from which the invoices were generated for.

How this works is like this:

  • You deliver the produce to the market and raise an invoice at that time and have the market sign a confirmation of delivery for the order;
  • You provide the invoice and the proof of delivery to the Factoring Company;
  • The Factoring Company will then give you an advance on the sale based on the face value of the invoice raised;
  • The Factoring Company will then do the collection of the invoice from the market;
  • When the market pays, the Factoring Company will then give you the balance of the funds less a service fee for the advance based on the number of days the funds have been in your possession.

Financing of Accounts Receivables really is a simple solution for many businesses to help cover the costs of Farmers Market Operations which include the harvesting, packaging, shipping as well as fuel and labor costs related to all these activities.

Now a word of caution: Not all Alternative Lenders do work with food related industries so when you are looking for an Alternative Lender for your cash flow assistance, be sure to let them know up front that you are a farm and which products you work with. Some foods carry different ratings than other due to spoilage probability and price volatility.  You do not want to go through the process of getting approved for funding only to find in the end that you will not be able to put everything in place due to an oversight.

Personally, I have had great success with this type of funding for our Agricultural Business, hopefully this advice will help yours.

AB Don PicMy name is Don Goldberg and I am a farmer in Ohio, USA and my family has been involved with farming before our family made the move to the United States four generations ago. [more]
Ohio Farm Bureau