With the world locked in this global heartache, we’re grateful for our health and peaceful home. Like you, we know many people on the front lines of the pandemic. Maybe you are one of those people. The planet owes you all a debt of gratitude.
In the world’s current state, happy, personal news can be hard to reconcile. We’ve had two such pieces of farm news in the last few days, and we still haven’t fully processed how they’ll change our future.
A BIT OF BACKSTORY
Before the pandemic, our goal was to eliminate the farm’s “bad” debt (high interest credit cards) in 2020, and earn the first owner’s draw in the farm’s six years. When the virus arrived, bringing so much uncertainty, we knew that an owner’s draw (as in actual money in our personal bank account) wasn’t going to happen. We made adjustments to the season to make sure we didn’t run into serious trouble in the year ahead. In March, we decided to drop the CSA size from around 70 members to 50. That way, if one of us got sick or hurt, the other spouse could handle the CSA alone. In early spring, we also decided to move forward under the assumption that all farmers markets would be closed. Some markets went on as planned, opening in late spring. Others waited until mid summer. Our farm develops a specific plan every winter before the season begins. The decision about how much to plant must be made then, when several thousand dollars worth of seeds are ordered.
Even though the season was going to look completely different than expected, we remained committed to paying off the farm’s bad debt. If we continued making the minimum payments on these debts, we’d be trapped under them for more than 20 years. Even a few thousand dollars of high interest credit card debt is crippling. It snuffs out any chance of achieving your full potential, or even coming close to it.
We know this from experience in our personal life. About two years ago, we applied some of Dave Ramsey’s tactics to get out of debt. We used what he dubbed the “debt snowball.” To carry out this strategy, you pay off debts in order of smallest to largest. Once bills and basic needs are fulfilled, every last penny goes toward repaying debt until its completely squashed. It may not sound like much fun, but the momentum you pick up with this method becomes exhilarating, and, ultimately, freeing.
The strategy worked so well in our personal life that it was clear it could work for the farm, too. One by one, we eliminated credit card debts. As soon as one card was gone, we funneled all available money toward the next card. Every cent of farm money in Season 6 went toward either farm expenses or debt repayment. When you can see light at the end of the tunnel, you don’t walk, you sprint. Every bag of pea shoots, every lettuce head, every single tomato, got us that much closer to freedom.
Then, on New Year’s Eve, we made our last debt payment.
Admittedly, the big moment itself was oddly anticlimactic. We clicked a button on the screen and then just sat there, looking at the standard “thank you for your payment” message. It wasn’t until a few days later, that it really started to sink in. The money from the next leaf of lettuce we cut, will not go toward some faceless debtor. It will go to our family’s farm. As I think about it now, there is a feeling in my chest that I can’t even describe. It’s like bursting out of a dark tunnel into full sunshine.
IS THE FARM 100% DEBT FREE?
No, it’s not. While our credit card debt is wiped out, we still have a low-interest loan from the Farm Service Agency. This loan paid for our walking tractor, two caterpillar tunnels, and other essential equipment. We started the farm with $0 in 2015. We sold a few CSA memberships to cover the cost of seeds and a handful of other expenses. To ramp up the operation in Season 3, we took out the loan. We pay around $3,000 a year toward this loan, and have three years to go. We structure our annual budget to include this amount, and while we wouldn’t rule out accelerating our payments in the future, it doesn’t crush us like the high-interest cards. Without this loan, the farm wouldn’t exist as it does today.
THE FARM WILL NEVER LOOK THE SAME
Just the day before we took our credit card balance down to zero, we received a life-changing email.
If you follow the farm, you know we’ve dealt with thousands of dollars of deer devastation for the past two seasons. You can read more about that here. The time had come to put up a deer fence. We needed a 7 1/2-foot enclosure around the entire farm.
In the past, the fence’s price tag was too much for the farm. However, we knew we were on the brink of paying off the farm’s debt and had no other major projects planned, so it was time to find a way. To raise the funds, we opened up CSA memberships early. We also had some incredibly generous folks donate to the farm. These people will hold a special place in our hearts forever. Over the summer, an opportunity to recoup revenue lost in 2020 also presented itself, and we applied.
On the day before New Year’s Eve, I opened an email that made me nearly tip over with joy. It was word that our application for funding was approved.
The funding needs to go through a formal vote process in the next few weeks, so we’ll wait to say any more for now. Provided it’s approved, this money, CSA memberships, and those donations will cover the fence and other changes to bring in a new era for the farm. We couldn’t be more hopeful, humbled, or grateful. — Stella
I picked our last Mountain Magic tomatoes in the Big Tunnel in December. What a treat it was to slice fresh tomatoes while Christmas music played.
We’re taste-testing recipes for the 2021 CSA. We love sharing new dishes with CSA members.
We hope the new year brings safety and peace to your home in 2021.