I recently came across a blog for a farm that will be opening in 2010 that I wanted to feature on Farm Stories. The name of the farm is Langwater Farm, in Easton, MA. The name of their business entity, however, was what was most intriguing. Stone Soup, LLC was the name that caught my eye. Their story speaks to several issues facing those who want to begin farming: namely, the high cost of acquiring land for those with farming dreams, and the legal and liability aspects of farm related businesses that most people don’t really consider.
It seems these determined farmers will be opening their farm on land leased from another family, and have gotten together to cooperate to make their dreams come true. Joel Salatin is fond of saying, “If you want to begin farming, you don’t need to own land to do it, you just need to get started.” As you read their blog, the Langwater Farm story seems to be full of examples making that statement true. Sometimes farmers work for years for others increasing their skills before they are able to have their own farm. Being willing to get started, seeking information and knowledge from as many sources as possible, and being practical about the business aspects involved are all good lessons any would be farmers should take from the Langwater Farm story.
One post on Langwater Farm blog speaks about the need to form an LLC, and the search for a name for that LLC. An Excerpt;
“We are working on forming an LLC, a Limited Liability Company. This will protect us personally from any legal liability that might come out of the business. Although the farm property itself will be called Langwater Farm, we need to pick a different name for our business entity (I know, it’s a little confusing). Currently naming the LLC is our biggest hurdle… any suggestions?? ”
Stone Soup, LLC was a great name to settle on, if you can call it settling. Many of us remember one version or another of the Stone Soup Story from gradeschool. The Langwater Farm blog explains their choice of business entity name by saying, “Our business name is “Stone Soup, LLC.” This is partly because the farm is so darned rocky, and partly because of the fantastic fable, Stone Soup, in which a delicious meal is made due to everyone bringing a little of what they have to the table.”
It is unfortunate that we live in a litigous society, but it is a fact of life today. Imagine you work towards your dream of owning a farm your whole life, and you are finally able to purchase your own land. Imagine now you are driving in town and you run into some unexpected ice, slide through a stop sign and cause a car accident. If someone is injured, it is very possible you could be sued for anything you own, including your farm.
An LLC as a business entity for your farm could possibly provide some extra peace of mind and protection from such liability if you don’t have enough assets to cover writing a huge settlement check without having your dreams shattered. Ask an attorney you trust for guidance if you have any such concerns.
Sone Soup, LLC as a name is a paradox. We do live in an age where Community Supported Agriculture (CSA) farming is increasing all over the country as people want to know where their food comes from as they support their local farmers. The very way that CSA’s operate show an increased willingness of people to support each other, even financially, so that they can achieve mutual goals. This coincides with our increased awareness that we need to protect ourselves from those out there that would be all too happy to sue us if they thought they could take something from us.
It is a paradox that is mirrored in farming in general. Farming is about growing things and working with nature and providing people with sustenance. Farming is also a business. As in any business, we need to protect ourselves, sometimes even from those who enjoy the fruits of our labor.
The moral of the Stone Soup story “that by working together, with everyone contributing what they can, a greater good is achieved” is a metaphor for not only the way the farmers behind Langwater Farm came together to achieve their dreams, but a metaphor for the entire CSA phenomenon.
If you want to farm, there are plenty of customers out there who want to support you in your goal. Just don’t forget to do your business planning along the way.
December 15th, 2009 at 12:11 am
I’m one of the farmers over at Langwater Farm. Thanks for featuring us! Your take on the “paradox” of the name Stone Soup LLC is interesting. I hadn’t thought of it that way, but you’re right, we are all about having a vibrant community farm and at the same time we’re trying our hardest to carefully think through the business element. It is certainly not always easy!
We have a five-year land lease with the idea that it will renew into a longer term lease. We developed it with the help of an attorney who specializes in land trusts and farming. She recommended the LLC business structure- since there are four of us as business partners, this protects each one of us as individuals. Now we’re in the process of setting up an accounting system that will make it possible to keep track of our expenses, income, taxes, and let us each build equity in the business.
When we started the farm, I hadn’t given much thought to the business aspect- we were starting a FARM. Turns out we are also starting a BUSINESS, which has a whole other set of considerations beyond just growing great food for people. It’s definitely been a learning process! Thanks for highlighting this aspect of farming- it is so important for new farmers to think all of this stuff through!
December 19th, 2009 at 10:19 am
Alida,
You are welcome. I’d love to interview you guys and do a more detailed story on Langwater Farm and Stone Soup, LLC.
Thinking about your business name, and the moral of the Stone Soup story make me think about hosting a ‘Stone Soup Party’ where people get together and bring local foods to contribute to the soup and to the meal.
A quick search on Google for Stone Soup Party revealed that this is an idea shared by many others. Of course, people have been having pot-luck dinners forever, but I have been to many of them with no mention of the Stone Soup story and it’s moral.
I’m going to start a tradition with our family and neighbors and host a Stone Soup Party regularly and use it as an additional way to express thanks for the blessings of community and local foods.
Thanks for the inspiration.
Mike Murphy
Farm Stories
http://www.FarmStories.org