IntroductionThe Wilson Family Peach Farm is a
start-up venture for Dr. Jared Wilson and his wife, Susan. The Wilsons
will be retiring from their regular professions starting in the spring
of this year. The farm is intended to provide the Wilsons with an
opportunity for post-retirement work and income, plus an opportunity for
both of them to continue their individual research programs on
agriculture and nutrition. Approximately 80 acres of prime stone fruit
growing land is to be acquired, using owner's equity and a federal farm
assistance loan. The farm will be jointly owned by Dr. and Mrs. Wilson
and will be set up as a Limited Liability Company chartered in Georgia.
The Farm and its ProductsTheime fruit growing land approximately 3.5 northwest of
Gainesville, Georgia. This is one of the best areas in the state for
growing peaches and other stone fruit. The land gets plenty of sunlight,
has excellent drainage, and an optimum soil pH.
The Wilson Family
Peach Farm is planning to grow seven varieties of peaches and
nectarines in the first three years including the Redhaven, Ishtara,
Tenn Natural, Lovell, Bailey, Montclar, Starks Redleaf, and the famous
Elberta. Once profitability has been established, the farm will begin to
expand into more rare varieties.
The attractiveness of this crop
is that fresh, high-quality peaches and nectarines are sweet tasting and
low in calories, with one medium peach furnishing only about 37
calories. These fruit are a good source of Vitamin C and yellow-fleshed
varieties are a good source of Vitamin A.
The MarketThe United States provides about one-fourth (25%) of the world's total supply of fresh peaches.
Peaches
are the third most popular fruit grown in America. They account for
more than 70 percent of all stone fruit produced in the U.S. South
Carolina and Georgia follow California's 72 percent share of peach
production at a far distance, averaging about 6 and 4 percent of the
U.S. total over the past three years. Last year the Georgia peach crop
totaled 115 million pounds and brought in $41.7 million. In addition to
the Elberta, Georgia now produces more than 40 commercial varieties of
peaches. Recent events has shown that the international market for
peaches may be expanding, especially in Asia.
Wilson Family Peach
Farm plans to sell its crop to three main buyers. In order to keep its
profit margin high, the Wilsons will concentrate on selling the majority
of its fruit to the local produce stands which are able to charge more
for the higher quality fruit. Most of the rest of the fruit will be sold
to local fruit packers and distributors that then resell the fruit to
grocery stores. Finally any fruit that does not meet the
quality/maturity standards of the other two buyers will be sold to
canneries.
Financial ConsiderationsThe farm
will be financed with a farm assistance loan and a significant amount of
owner's equity. This will provide sufficient cash flow for the farm
until it can start making revenue. Sales are expected to be sufficient
to be profitable in year one, and have consistent growth through year
three.
farm has pr
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