Indiana Farm Management Tour

Clark and Scott Counties

June 28 and June 29, 2005

Tuesday June 28, 2005

1) Comer Farms ─ Scott County ─ Interview at 1:00 p.m. (Eastern Standard Time). Mini-tours starting at 1:45 p.m. (EST) on utilizing site specific data, no-till crop production, conservation programs, drainage, on-farm grain storage systems, and new generation grain marketing contracts.

2) Comer Farms ─ Scott County ─ 3:30 p.m. (EST). Chris Hurt, Purdue Extension Marketing Specialist, will update the outlook for crops and livestock.

3) Evening Program ─ Scottsburg Senior High School Commons Room ─ Doors open at 6:00 p.m. (EST); program begins at 6:30 p.m. (EST). Lieutenant Governor Becky Skillman will conduct a “listening session” on issues related to agri-tourism, agricultural economic development, and rural economic development in Indiana.

Wednesday June 29, 2005

4) ) Koetter Woodworking, Inc. & The Forest Discovery Center ─ Clark County ─ Interview at 8:30 a.m. (Eastern Daylight Time). Mini-tours starting at 9:00 a.m. (EDT) include a short film, a self-guided plant tour, and time to explore the Forest Discovery Center.

5) Huber’s Orchard & Winery ─ Clark County ─ Interview at 10:00 a.m. (EDT). Mini-tours starting at 10:45 a.m. (EDT) on the farm market/bakery/ice cream facilities, the wine cellar/distillery area, the orchard and petting zoo, and Plantation Hall.

6) Lunch ─ Joe Huber Family Farm in Clark County ─ 12 noon (EDT). Lunch tickets may be purchased for $10 per person ($6 for children 4-12 years old) at the registration table at any of the previous tour stops. Please bring cash or a check (no credit cards). Pre-register for lunch by June 17 by calling 1-888-EXT-INFO or sending e-mail to millerwa@purdue.edu.

7) Joe Huber Family Farm & Restaurant ─ Clark County ─ Interview at 12:45 p.m. (EDT). Mini-tours on the daylily garden, corporate outings business, and barnyard begin at 1:15 p.m. (EDT).

Eastern Standard Time (EST) is observed in Indianapolis and West Lafayette in June. Eastern Daylight Savings Time (EDT), which is observed in the Louisville, Ky area in June, is one hour ahead of the time in Indianapolis and West Lafayette.

What Can You Learn from Our Tour Hosts?

Four families with their own unique management practices welcome you to their place of business. Read the profiles in this publication, listen to the general interviews, and then see if you can answer the following questions. As you answer them, think about how you might use some of the hosts’ ideas on management to improve the management performance of your own business.

Comer Farms

How do the Comers define success, and what are the keys that have made them successful?
What business arrangements are the Comers using as part of their inter-generational business transfer process, and how have they divided responsibilities?
How have the Comers integrated information technologies into the management of the farm?
How have the Comers successfully integrated conservation and nutrient management practices into their crop production system?
What are the keys to the success of the Comers’ no-till production system?
What role does on-farm storage play in the Comers’ grain marketing strategies?

Koetter Woodworking Inc. & The Forest Discovery Center

Why is a mission statement important?
How has Koetter Woodworking integrated education and marketing into the business?
What type of price-quality strategy does Koetter Woodworking use to sell its products?
What methods does Koetter Woodworking use to reduce employee turnover?
What are two of the values and principles that are at the core of Koetter Woodworking’s business philosophy?

Huber’s Orchard & Winery

How do the Hubers continue to meet the needs of customers through entertainment?
How are state, university, and community connections important to Huber’s Orchard & Winery?
What risk management strategies have the Hubers implemented for marketing to customers?
What challenges are involved in running a family farm and agri-tourism operation?
How have the Hubers created new markets for their business (i.e., how have the Hubers identified new opportunities)?
How does Huber’s Orchard and Winery use promotional strategies to reach its customers?

Joe Huber Family Farm & Restaurant

What is Joe Huber III’s role as President of Joe Huber Family Farm & Restaurant?
How does Joe Huber III transfer management decision-making authority to other family members?
How are management and labor responsibilities divided among the Huber family members?
How does the Joe Huber Family Farm & Restaurant engage in strategic alliances with other businesses in the community?
What is Joe Huber III’s vision for Joe Huber Family Farm & Restaurant over the next 20-30 years, and what are the major obstacles that must be overcome to achieve that vision?

Comer Farms is a family farm of about 4,600 acres producing corn, soybeans, wheat and double crop soybeans. Comer Farms is a multi-generation business involving Ronald and Carolyn Comer, and two sons, Phillip and Michael.

Ron characterizes himself as a person who worked two jobs, seed sales for Pioneer and farming, until he retired in 1995. At one time, Ron was both a District Sales Manager and Sales Representative for Pioneer. Pioneer decided that Ron should not be filling both positions, so he chose to continue as a District Sales Manager. Phil and his uncle took the job of being Sales Representatives. At the peak, Ron served as the District Sales Manager for 37 sales representatives.

Today, Ron characterizes himself as semi-retired. Phil is the manager of the farm business and continues to work as a Pioneer sales representative. Mike is an employee of Comer Farms, manages his own farming operation in Clark county, and also serves as a Pioneer sales representative.

Marcia Comer, Phil’s spouse, is employed as the manager at the USDA Rural Development office in Versailles, IN. Debbie, Mike’s spouse, is employed in the office of a local factory.

Business Philosophy

Every business person must determine how he or she will define success and the process by which success will be achieved. For the Comers, there are three components to their business philosophy: 1) Treat everything like it was your own, 2) Leave things in better shape than when you received them, and 3) People are important. The influence of this philosophy can be seen in their approach to crop production, their involvement in community activities, the relationship they have with their 32 landlords, and their relationships with business associates. The Comers view the strong relationship that they have with their landlords and business associates as key business strengths.

The Comers’ keys to successfully managing a family business include:

Knowing what you do best and concentrating on these items,

Continually striving to become more productive and efficient,

Not jumping too fast when adopting new technology or expanding the size of the farm,

Being able to separate business from emotion, and

Developing trust.

Business Entities

Comer Farms is a 50-50 general partnership between Ron and Phil Comer. This partnership is engaged in a joint venture with Mike Comer. Operationally, Mike’s acreage has been incorporated into Comer farms. Mike is also employed by the partnership. One of his major duties for Comer Farms is planting the majority of the soybean and wheat crops.

The transactions between these two business entities are conducted on a cash basis. Many multi-generation farm businesses share machinery and labor among multiple business entities. However, many of these businesses use a barter system to compensate each other for these transactions, e.g., trading labor for machinery. Conducting these transactions with cash rather than barter makes the cost of the item more clear. It also makes it easier to determine if the costs associated with these transactions are reasonable.

Production Management

In 2004, Comer Farms produced 2,300 acres of corn, 2,300 acres of soybeans, and 220 acres of wheat. Soybeans are also double-cropped after the wheat. Corn, soybean, and wheat yields in 2004 were 157 bu. per acre, 54 bu. per acre, and 78 bu. per acre, respectively.

Reducing the negative environmental impacts that production agriculture can have is an important focus for Comer Farms. Soil conservation and nutrient management are two aspects that are closely watched. They have been using a no-till production system since the early 1970s. Today, 90 percent or more of the corn and soybeans are produced using a no-till system.

Ron attributes their adoption of this production system to an innovative neighbor, Merrill Turley. Agribusinesses in the county have also been supportive of this tillage system. As no-till was being introduced, the Production Credit Association purchased no-till planters that were then leased to farmers to encourage the adoption of no-till. Scott County is one of the leading counties in the use of no-till.

The Comers are involved in an EQIP project on Fourteen Mile Creek. The purpose of this project is to reduce the fertility run-off from fields. An interesting aspect of this project is that it is on a rented farm, so they are involved in this project as tenant rather than land owner. Efforts such as this illustrate their willingness to work with a property owner to help the owner achieve their desired goals for the property.

In 2004, the Comers used Bt corn on nearly

40 percent of their corn acres. Phil indicates that they are not doing this because of strong corn borer pressure. Rather, he cites the over-all health of the plant and ease of harvest as reasons for using this technology. “It is important for us to harvest efficiently. The Bt varieties do not yield more, but we can harvest more quickly because there is less downed corn.”

Soil insecticide is used on all corn acres. The Comers are not planning to use corn that will have rootworm resistance because of all the other pests that would still need to be controlled. Ron indicates that even if they planted rootworm-resistant corn, they would need to use insecticide to control the many other insects that feed on corn plants in Southeastern Indiana.

The evidence that their system of corn production works is in the high rankings that they have received in state and national corn yield contests. Between 1986 and 2002, the Comers had seven first or second place entries in the state yield contest. Six of these entries were good enough to be in the top four nationally. Yields during this period ranged from 196 bu. per acre to 263 bu. per acre. In 1991, their yield of 248 bu. per acre was the top state and national yield entry.

Round-up Ready® soybeans are used for all soybean acres. The Comers have produced non-GMO soybeans. However, they have concluded that in their situation the premium available for production of non-GMO soybeans is not sufficient to offset the added cost of separating this crop from other soybeans and the added input costs.

Soil fertility levels are closely monitored. Fields have been grid sampled using 2.5 acre grids. One purpose of these soil tests is to ensure that fields have the proper soil pH. The Comers also want the soil tests to show phosphorous and potassium levels at least at the medium level. To ensure that the material is applied where it is needed, any fertilizer or lime applications required are applied using variable-rate technology. During harvest, yield data is collected using a GPS unit and yield monitor. The yield data is then used to guide fertilizer applications for the next crop. Using the harvested yield data and variable rate technology, fertilizer is applied at a rate that replaces the nutrients removed. Phil indicates that this approach keeps the fertility levels in pretty good balance.

The Comers do much of their own equipment maintenance. Their machines are checked over after each season of use. Planters and harvesters are the first machines in line for repair. Ron indicates it is important to make repairs while the trouble spots are still fresh in everyone’s memory. This also provides the benefit that the machinery will be ready to go when it is needed next.

Spraying of crop chemicals is outsourced to Crop Production Services. This allows the Comers to focus on getting things planted. While they could do the spraying, this would mean that they would need to make additional capital investment in machinery and hire additional labor.

Scouting the crop during the growing season is an important activity for the Comers. This is something that Ron has always done. He indicates that it is important to know what is going on out in the field so they can take whatever corrective action is needed. This year scouting will be an important component to in the Comers’ plan to manage the Asian Soybean Rust threat.

Drainage

Good field drainage is critical to the production of a high-yielding crop in this part of Indiana. If the bottom land in the county is not tiled, it is not farmed. All of the drainage ditches or creeks in Scott County are man made, and they have not been dredged since the 1930s. There are several blockages in these creeks and in the Muscatatuck River that prevent water from flowing away quickly. Even in dry years, a sudden heavy rain can result in tile line mains being under water. The Comers have been working with others in the community to find ways to improve field drainage while being sensitive to important environmental issues.

Storage and Marketing

The Comers have recently completed an expansion of their grain storage. Ron indicated that Purdue Agricultural Engineer Bruce McKenzie helped design the original grain storage site. It has worked well, but growth dictated the need for more storage space. At the current time, there are 185,000 bushels of dry storage at the main farm. All this storage is used for corn. There are also 118,000 bushels of storage at three other locations. This is used for soybeans. The Comers are able to store about 75 percent of the soybean crop and 50-60 percent of the corn crop. By having on-farm storage, the Comers are able to keep the combines running and avoid waiting in line at the elevator.

As the grain is delivered to the bin site, all of it is sampled, and some of it is weighed. All the grain harvested from farms rented with a crop-share lease is weighed to ensure a proper division. Weighing grain also helps

with the calibration of the combine yield monitor. Yield information is used in making fertilizer applications and other decisions. Phil indicates that you really need to know your yields in order to make decisions. “If you base decisions on how things look, it is just too easy to make a mistake.”

The crops are sold through CGB Enterprises, Inc. at the company’s terminal on the Ohio River in Jeffersonville, IN. Phil characterizes the marketing program as fairly simple. They utilize forward contracts, the futures market, and options. About one-third of their grain is marketed through the “Equalizer” program provided by CGB Enterprises, Inc. The farm’s grain storage facility enables the Comers to fill a semi in about 12 minutes. This allows them to quickly respond if the grain buyer at CGB Enterprises, Inc. calls with a special offer.

The Future

The farm has gone through a sizable growth period. At this time, the Comers are more focused on farming better rather than expanding. Still, Phil indicates that, given the correct circumstances, additional land rental is a possibility.

There has been a lot of development in the area, and Phil indicates that continued urban development in the area is a concern. There is also a concern about the changes in the land ownership. For some of the rented farms, the owners’ children are becoming the owners, and the Comers are working to develop relationships with younger members of landlords’ families.

It is not clear if there will be another generation of Comers with an interest in farming. However, if interest does develop, Phil hopes that they will be able to provide that opportunity.

For the past 46 years, the Koetter family has been providing quality hardwood products to their customers. Like true entrepreneurs, Tom and Mary Frances Koetter saw an opportunity to provide a product in a superior way and filled that niche. In 1959, when a local cabinet company that Tom was working for in Starlight, IN needed a constant and reliable supply of cabinet parts, Tom was able to fill that need. Like many entrepreneurs, he worked a full-time job and started Koetter Woodworking on the side. He worked on his business on nights and weekends in his basement.

Soon, his orders increased, and he was able to make it his full-time occupation. This also meant that Tom needed more room for his equipment, so he constructed a two-story block building behind his home. Their family also grew by a total of five sons: Randy, Rick, Jerry, Brian, and Tom Jr. (TJ).

While Tom produced high-quality products, the growing business also required a good bookkeeper. Mary Frances took that role. She began to handle the business’s bookkeeping and accounting system. Today, she is still actively engaged in managing the accounting department for Koetter Woodworking.

In 1978, the company’s first wood drying kiln was completed, ensuring a steady supply of quality lumber. Like other aspects of the business, it bore the personal stamp of the family’s quality approach to the woodworking business.

The business would eventually occupy many buildings on the family’s 36 acres of farmland. Today, Koetter Woodworking is a

vertically integrated corporation. They own

5,000 acres of timberland and plant 50,000 trees annually. They produce energy for drying products by burning their own waste wood.

Products

The company’s method of processing lumber differs in several ways from that of most other kiln drying operations. While drying times will vary depending on the type of wood being processed, the average kiln load for Koetter takes approximately 25 percent longer than for other kiln drying processes. The company’s drying process, although slower, decreases shrinking and warping, and yields a higher quality product.

Koetter continues to refine the kiln operation to make it more efficient. Koetter Dry Kiln, which is a separate business founded by two of the five brothers, has been manufacturing dry kilns for approximately 12 years and sells its products domestically as well as internationally.

After drying, lumber is then planed again and ripped to various sizes for the company’s various moulding profiles and other wood products, both custom and stock. Koetter Woodworking has its own tooling department to constantly monitor and sharpen all cutting blades and moulder heads used in the various milling steps.

The corporate headquarters is in Starlight, IN, where they also manufacture and store products. Products are also manufactured in Jeffersonville, IN. They own two sawmills in Kentucky and one in Salem, IN. As the company became more vertically integrated, they had to use more of the log and find outlets for those products.

Koetter Woodworking has five strategic business units based on their five primary products:

Cabinet components,
Architectural millwork,
Flooring,
Window fashions, and
Furniture components.

They do not sell their products directly to the consumer. The cabinet and furniture components are sold to manufacturers who then sell them to the contractor or homeowner. Flooring is sold through a distributor and then to a dealer or an installer before it gets to the end consumer. A contractor or homeowner generally buys the architectural millwork from a distributor. The window fashions are sold through a fabricator.

Their primary markets are within a 360-mile radius. They deliver to Chicago, IL; Milwaukee, WI; Cincinnati, OH; Charlotte, NC; Nashville and Knoxville, TN; and St. Louis, MO and most places in between, although some of their flooring products go further than that 360-mile radius.

Kentucky Wood Floors is also owned by Koetter Woodworking. They bought the pre-finishing flooring facility in 2004. It also makes decorative flooring panels that can be found in the White House Oval Office.

Randy Koetter (Tom’s oldest son) is a partner in Koetter and Smith, which grew alongside Koetter Woodworking. Koetter and Smith hauls away dust, shavings, and chips, and resells them to farmers for animal bedding. Boiler fuel, particle board, and playground cover are just a few other uses for these products.

Koetter Woodworking has always relied on quality and design to sell their products. They have used one of the most effective promotion tools to market their products−

word of mouth advertising. Their consistency and high-quality products have allowed them to build strong relationships with their distributors.

Their use of a premium strategy, where the price reflects the high quality of the product is revealed by their decision not to sell their products through big box stores such as Menards, Lowes, and Home Depot. These big box stores generally sell to the consumer by promoting good-quality items at low prices, or a good-value strategy.

The family wanted to create an educational center to provide an opportunity for the public to learn about the importance of responsible forest management, the important role of wood in our lives, and the positive aspects of the wood industry. They fulfilled that dream when they opened The Forest Discovery Center in 1998.

The Forest Discovery Center has an indoor forest and a 1,000-square-foot mural created by small wood inlays. It also houses a mini-theatre where visitors can see a 12-minute video created and produced by the Koetters. Via a skywalk, visitors can see the rough mill, where dry lumber becomes trim and mouldings and other finished products without a speck of sawdust wasted.

Human Resources

Koetter Woodworking is truly a family business. The Koetter’s five sons, Randy, Rick, Jerry, Brian, and TJ, have always been part of the business, first helping out after school and slowly taking on more and more responsibility. Today, the Koetter’s five sons manage this large, successful business. Randy is President and Chairmen of the Board. Rick is Vice Presiden of Operations. Jerry is Vice President of Procurement. Brian is Vice President of Sales and Marketing. TJ is Vice President of Communication Integration and Human Resources.

The company has 481 employees or team members and practices a form of open book management. In an open book management system, the company shares detailed operating information (financial, sales, profit). It also educates employees on how to use that information, thereby providing them the opportunity to contribute to the success of the business.

The company then gives employees a stake in the business. Koetter Woodworking has a profit-sharing system where quarterly the entire company meets to discuss where they are in regards to setting goals and targets. This management system is thought to increase employee productivity and loyalty. Koetter Woodworking’s low employee turnover would suggest that this management system is really working for them.

This successful, closely held family business is still evolving. The Koetters are still making the transition from entrepreneurs to business owners and managers. They quickly learned the value of job descriptions and started using them five years ago. They discovered that human resource management is one of the most important aspects for establishing a successful business and keeping operations running smoothly.

Integrating People and Products

The Koetters subscribe to the motto that products aren’t successful, people are, and their mission reflects this belief. Koetter Woodworking has a clear vision revealed in

their mission statement that states that they will strengthen the company by meeting the ever-changing needs of their employees, customers, suppliers, and community. It is important for business (no matter how big or small) to have a clear and broad mission statement. Mission statements allow new employees to understand what a company believes in and gives established employees a standard by which to operate.

Clear and concise goals and objectives are also important factors for starting and growing a successful business. The Koetters are appropriately using their goals as a way to fulfill their mission. Goals provide stability and a target in an otherwise hectic world that pulls us in many directions. The Koetters have learned this lesson well, and three of the six goals they have identified are:

Align team member needs with company goals,

Maximize timber resources, and

Support the customer.

However, they have gone beyond setting goals and taken it one step further by identifying objectives that will help them meet each goal. They have also established a set of values and principles that they want the company and team members to live by. Examples of these values and principles include the following.

· Commitment: We have long-term relationships with our team members, customers, and suppliers who are committed to the mutual well-being of the company, the community, and the environment.

· Learning: Life-long learning and teaching will be the foundation of our future.

· Trust: We trust that every word spoken, decision made and action taken is based on honesty and respect with win/win results in mind.

It is apparent how the Koetters’ goals, objectives, values, and principles are

designed to help them fulfill their mission statement. They are fulfilling their mission not only by their statements, but also through their actions. This can be seen by their commitment to harvest timber in a sustainable fashion through responsible forest management and their commitment to education through The Forest Discovery Center.

Huber’s Orchard & Winery exemplifies agricultural tourism. The tourism and agriculture industries play a vital role in Indiana’s economy, providing meaningful work to more than 169,000 Hoosiers each year. Agricultural tourism, also known as “agri-tourism,” is defined as an agricultural business conducted by a farmer or processor for the enjoyment or education of the public, to promote the products of the farm and to generate additional farm income. Agri-tourism includes a variety of facilities and activities, including agricultural festivals and fairs, demonstration farms, wineries, corn mazes, agricultural museums, country stores, farmers’ markets, and horticultural operations.

The Operation

Huber’s Orchard & Winery is a “Hoosier Homestead Farm” showcasing agri-tourism. Their primary goals are to entertain families using their family farm and to grow and sell quality products. Every activity offered at the farm is centered on entertainment of families. A love for the business and the ability to adapt to new opportunities and changing environments are two of the unique attributes that have helped this family stay in business and thrive for over 100 years.

Huber’s Orchard & Winery owns 550 acres of land and cash rents an additional 100 acres. The business is comprised of two different corporations: Huber Orchard Inc. and GT Incorporated. Huber Orchard Inc. is dedicated to their growing and processing operation, and GT Incorporated deals with Plantation Hall, catering, and special events.

Huber’s Orchard & Winery grows fruit such as strawberries, brambles, peaches, apples, and grapes. The Hubers also grow pumpkins, Christmas trees, and vegetables such as tomatoes, green beans, and sweet corn. All crops that are grown are available for retail purchase, as is wine, which is sold in the winery. Fruits grown at Hubers can also be picked by the individual customer, known as u-pick, or bought in the store. They make their own apple cider and ice cream.

Their retail operations include: products they have grown, such as fruit,; value-added products made from the products they have grown, such as their ice cream and bread from the bakery; and gift items relating to wine and other farm entertainment activities. The Huber family produces some nursery trees that are sold wholesale as a way to keep employees busy during the off season.

Background

Ted and Greg Huber are the current owners and the sixth generation involved with the Huber’s family business. They are the fourth generation actually living on the farm. Samantha Huber, Ted’s sister-in-law, is the retail manager of the winery. Jan Huber, Greg’s wife, is the business manager for all of the businesses within Huber’s Orchard & Winery. Dana Huber, Ted’s wife, is in charge of marketing and special events.

Simon Huber bought the farm originally in 1843 and focused on fruit and vegetable production. The winery was not added until much more recently. Fifth generation Hubers, Carl and Gerald, led the expansion into commercial winemaking.

In 1978, Carl and Gerald obtained a license to operate a small winery from the state of Indiana, permitting them to make up to 100,000 gallons of wine. In 1979, the winery opened its doors. They decided to start their own vineyard in 1983, which came into production in 1986. The family had always made wine and had a history of making wine for home use. When Ted and Greg’s grandfather made wine, he would integrate the fruit with the wine.

Huber’s Orchard & Winery started out as a predominantly wholesale operation with some retail activities. In the past 15 years, the operation has become more of a retail business, with wholesaling activities becoming a very small part of the overall family business.

Traditionally, apples, strawberries, and pumpkins were grown at their operation. In the 1980’s, the Hubers decided to expand the types of fruit grown on their operation to include brambles (such as raspberries and blackberries) and peaches.

In 1988, the Hubers decided to make cheese. Unfortunately, cheese making was too expensive, so they decided to replace cheese production with making ice cream, which has worked out very well.

In 1987, the Hubers decided to open the gift shop in an upstairs area that was converted from a dairy barn. They continued to expand, and in 1989 opened the petting zoo. At first, they did not own the animals in the petting zoo. However, this attraction became so popular that they decided to buy and care for the animals that were exhibited.

The Hubers have continually looked for new ways to entertain guests at their farm. In 1998, they constructed Plantation Hall, a corporate banquet facility seating 1,000 people that is used for company outings. Three additional rooms were added to host events: the Orchard, Vineyard, and Heritage

Rooms. Together, these rooms can seat up to 1,250 people and are used for weddings and special events.

In 2000, the Huber’s decided to add a distillery to make brandy that is now sold in their retail shop. Their distillery is the only one in the state, and the Hubers were the very first operation to approach local government about having a distillery in Indiana.

A key strength of the managers of this business is their ability to work with the right authorities to make their goals into reality. They worked extremely close with the state government to create legislation about the percentage of alcohol that could be produced so that they could have the distillery. They have paved the way for others who may be interested in branching out into this type of operation.

The Hubers are also into infusions, which involves taking brandy and infusing it with wine. The infusions that are made with the farm’s fruits are good sellers for the winery. They have also started to produce infusions for other companies, again adding more opportunities to their business.

Marketing

The Hubers’ marketing approach is one that has led them to success. Understanding their customers and targeting them appropriately have been key components to identifying new opportunities and exploring expansion. The Hubers target customers within the southern part of Indiana. Eighty percent of their customers come from an area ranging from south of Indianapolis to Louisville, KY. Advertising efforts and dollars are expended targeting this geographic area by placing ads in some of the larger newspapers in the area. The majority of their advertising is placed from May to December.

They have defined their target market as mostly urban residents or companies that want to get away from city life and have an experience on a farm. They were able to identify these customers by listening to what their customers told them when they visited the farm. The Hubers have also developed a system of constantly monitoring their guest-book for information about the geographic location of their customers and their travels.

The Hubers have paid attention to the needs and wants of their customers. Dana Huber, wife of Ted Huber, has noticed customers generally have become interested in destinations that involve day-long activities. To keep people at their farm and interested in the available activities, the Hubers have added a petting zoo, cheese shoppe, ice cream factory, loft gift shoppe, Plantation Hall facility, and the Starlight Distillery to entertain both children and adults as they come to the farm. The Hubers also have a café that allows visitors to visit and eat, virtually eliminating any need to leave until they are absolutely ready. These expansions have allowed the Huber’s Orchard &Winery to reach out to other markets besides those families primarily interested in farming and traditional winemaking.

Huber’s Orchard & Winery uses many different outlets to reach their customers. They have created partnerships, participated in direct mailings, developed a Web site, created a newsletter for their existing customers, donated to charitable events, and created goodwill within neighboring communities by participating in area events.

Partnerships

Huber’s Orchard & Winery has formed several partnerships to help promote their business. The Starlight Visitors Association is a partnership with two other Starlight Businesses–Koetter Woodworking and Joe Huber Family Farm & Restaurant. The Starlight Visitors Association’s main goal is to promote Starlight area businesses. This group meets regularly to discuss ideas of bringing more business to Starlight, IN.

The Hubers have also created linkages with the state tourism agency, the local convention and visitor’s bureau, and the media. Huber’s Orchard & Winery is also heavily involved in programs with Purdue University and outside organizations such as the North American Farmers’ Direct Marketing Association.

Partnering with six other state wineries, the Hubers have helped to create Indiana’s first wine trail. The Indiana Uplands Wine Trail

showcases several Southern Indiana wineries. These wineries have created a passport system that allows customers to pick up a card and travel to the seven participating wineries. Once customers visit the winery, their card is stamped. After they have visited all seven wineries, customers receive a memento or wine-related gift. They can also enter into a grand prize drawing for the annual vintage Indiana program. This system creates an opportunity for customers to patronize other local wineries and encourages customers to see other venues in Indiana.

Challenges and Opportunities

Huber’s Orchard & Winery has created a tremendous amount of opportunity for expansion and success. Expanding from the traditional wine making done at the winery, the Hubers noticed an opportunity to add dessert wines and brandies to their line of products. Products that have come from this expansion include their Raspberry Infusion, Blueberry Port, Apple Infusion, and Pear Infusion. They released their first brandy in December 2004.

Although the winery has been a profitable activity for the business, state laws and industry regulations pose challenges. Alcohol is regulated by the Food and Drug Administration, but each state has its own set of regulations. Compliance with Indiana laws and wine tax regulations is important to continue to produce wine. The Hubers take a proactive business approach and continue to work with the state to make sure all regulations are upheld.

Transferring ownership from the fifth generation to the sixth generation has also been something the Hubers have faced within the not-too-distant past. A gradual transference of management was conducted over a 10-year period. Specifically, the owners gathered and met to discuss a plan that would gradually transfer ownership

to both Ted and Greg and was a “win-win”solution for all parties. The result was that the new owners (Ted and Greg) took the lead over all operations (effective immediately) with an agreement that the new owners would buy all of the previous owners’ stock over time. The key to the success of this transfer was that it happened gradually. It was agreed that the process would be completed over a 10-year period. There was a clear line of leadership established during the transfer years.

Keeping the family in the business for multiple generations continues to be a success for the Huber family. Building diversity and new business at a pace that can use additional leadership is important. The Hubers continue to find ways to grow and ways to incorporate the newer generations into the family business. One challenge continues to be managing these new pieces while waiting for the next generation to step in. Building the business is critical to passing it on to the next generation. The Huber’s intend to continue to keep the company strong–both financially and through strategic vision.

Joe Huber Family Farm & Restaurant

What Is a Family Farm?

The question “What is a family farm?” has been discussed in the past and continues to be discussed in academic and government circles and even in a few coffee shops. Some would define a “family farm” using a measure of size; others would use the types of crops and/or livestock produced; still others would focus on asset ownership. When discussing this question with Joe Huber III, there is no doubt where he stands. It is a family-owned and operated business that provides food and good, clean family- and farm-oriented entertainment to a consuming public.

The Joe Huber Family Farm & Restaurant has been providing that since 1926. This “family farm” produces a variety of fruit and vegetable products. A visitor to the farm can pick his/her own strawberries (15 acres), apples (12 acres), and pumpkins (25 acres) or simply choose from a wide variety of just-picked fruits and vegetables that are sold in the Farm Market and Gift Shop. Or a visitor can stroll or even take a tractor-guided tour through 3 acres of daylily gardens, where over 1,200 varieties provide thousands of blooms to greet visitors throughout the spring and summer.

This farm also provides several products and services that are not as common when thinking about what is produced by a “family farm.” First, there is a wide variety of gifts and crafts, which are sold in the Gift Shop that is part of the Farm Market. Second, “real food” that is ready for consumption is sold in the restaurant, where every thing is made fresh from scratch. Third, the Hubers offer special event outings for the customers. Two Barnyard Bash meeting and entertainment facilities, food, entertainment, and planning are provided for corporate and company picnics, meetings, and retreats; civic gatherings; sports banquets; class reunions, etc. Fourth, just new this year is Joe Huber’s Barnyard, which includes a play area for kids, the opportunity to see and pet farm animals, and educational programs and tours.

In 2004, the Joe Huber Family Farm & Restaurant was the fifth largest tourist attraction in the state of Indiana. It was visited by 485,000 people.

Brief History

In 1843, Simon Huber emigrated from Baden-Baden, Germany and settled in Starlight IN. He brought with him apple trees that were ready to plant, and the Huber Family story in America began. The next two generations resided in the Starlight area, but it was not until 1926 that the current business started to take shape. In that year, Joseph Huber, Sr. (fourth generation) and his wife Mary purchased what is now the Joe Huber Family Farm. Their 11 children raised cattle and chickens on the farm, and a number of the farm hands stayed at the farm house during harvest. During that time, Mary Huber cooked delicious meals not only for her large family, but also the farmhands. It was at that time that the Huber family started to recognize the opportunity to market their products directly to the consuming public.

As the children matured and left home to start lives of their own, Joe Huber Jr. and his wife, Bonnie, moved just up the road with their five children (Joe III, Kim, Beverly, Lewis, and Chuck). They all helped Joseph and Mary, while Joe Jr. worked at the Indiana Gas Company. In 1967, Joseph Sr. passed away and Joe Jr. and Bonnie purchased the 200-acre farm. They moved into the old farmhouse and Joe Jr. quit his job at the gas company to become a full-time farmer. He also drove a school bus to supplement the income from the farm.

Then, on a hot summer day in July 1967, they had a field full of green beans they were not going to be able to pick in time. Joe Jr. said, “Bonnie, what do you think would happen if we put an ad in the paper to pick your own green beans?” The ad was placed in the paper, and people came by the carloads to pick their own green beans, while Joe Jr., Bonnie, and the kids looked on in bewilderment. These “city people” actually paid the Huber family for the opportunity to pick their vegetables, and even thought it was fun! Shortly thereafter, the garage next to the farmhouse was transformed into a market, and later the Farm Market building was constructed. In 1972, a wholesale vegetable business was also started.

It was not long afterwards that the new variety of “farm hands” started complaining they were hungry after picking. Bonnie responded by preparing food in her own kitchen for her “regulars” and delivered it to them in the Farm Market when they finished picking. The number of “regulars” continued to increase, and in July 1983 the Huber family built the Joe Huber Family Restaurant. The menu was very similar to what Mary Huber served farm hands in the 1920’s and 1930’s.

Next, opportunities to plan and conduct special events for corporate and company meetings and other outings started to occur. During the next few years, those opportunities continued to increase, which necessitated a meeting and banquet facility. In 1991, the first Barnyard Bash facility was built, which has a capacity to accommodate 600 people. The Special Events business continued to grow, which resulted in the construction of a second Barnyard Bash facility in 1994 that can accommodate events for 450 people.

A new attraction that has been started this year is the Joe Huber Barnyard, which was developed to accommodate the increase in demand for facilities and programs for children, both individuals and groups. A play area has been constructed as well as opportunities for children to see and pet various animals. Also, educational programs and tours are provided.

Bonnie and Joe Jr. still reside in the original farmhouse, and their five children have built their homes on the farm, where they work and raise their children. Bonnie and Joe Jr. have 12 grandchildren, and all who are old enough work on the farm.

Family Business Organization

The five children of Joe Jr. and Bonnie and/or their spouses and family members are involved in the business. Joe Huber Farm, Inc. is organized as a regular or “C” corporation, with Joe Jr., Bonnie, and each of the three sons owning 20 percent. The Joe Huber Restaurant is organized as an “S” corporation, with each of the five brothers and sisters owning 20 percent. Joe Jr. and Bonnie serve as co-chairpersons of the two

corporations, and Joe Huber III serves as president for each of the corporations. He describes his role as the “peacemaker” who settles the disagreements and strives to keep everyone happy.

Areas of Responsibility

The areas of responsibility for those involved in the business are listed below, with the family references referring to each family member’s relationship to Joe III.

Joe Jr. and Bonnie (father and mother) ─

Co-chairpersons of both corporations

Joe Huber III ─ President of both corporations

Lewis Huber (brother) ─ Vice President of the corporations and General Manager of the Barnyard Bash Outings

Kim Kaiser (sister) ─ Secretary/Treasurer

of the corporations and General Manager

of Joe Huber Family Restaurant

Katie Huber (sister-in-law) ─ Catering

Beverly Engleman (sister) ─ General Manager of the Gift Shop

Tracye Huber (sister-in-law) ─ Special Events Coordinator

Joe Huber IV (son) ─ General Manager of

the Farm and Barnyard

Jason Engleman (nephew) ─ Maintenance

Judy Strangie (not a relative) ─ Accounting and Human Relations

When family members work together, there is sometimes difficulty when sharing and/or transferring decision-making responsibility and authority. Joe III’s philosophy on transferring managerial responsibility and decision-making is summarized as follows. First, the family member responsible for each area has the authority to make the decisions related to that area. Second, that family member has a budget with which to operate that area of the business. Third, Joe III gets out of the way to let each family member do his/her job. As stated above, Joe III views his role as the “peacemaker” when decisions cross areas of responsibilities.

Strategic Alliances

Joe III also relies on strategic alliances with other local businesses. Joe III uses these alliances to promote, promote, and promote the Starlight area. When advertising in Louisville and other metropolitan areas, he will often work with other local businesses to split the cost of advertising, because tourists generally come to Starlight to visit not only the Joe Huber Family Farm & Restaurant, but also the other businesses. To facilitate these efforts, the Starlight Visitors Association was formed with other local businesses to facilitate the promotion of the area.

The Future

Joe III’s goal for the future is to continue to operate the “family farm” in order to provide an opportunity for current and future family members to continue to work on it and to raise their families. In order to provide that opportunity, Joe III feels the business must grow. He feels the area could be a major tourist attraction in the next 20-30 years, provided an effective rural development program is developed and implemented.

In fact, Joe III expects the focus of his efforts and the efforts of the Starlight Visitors Association to change in the future. In the past, the emphasis has been on promotion. In the future, the emphasis will likely shift more and more to the area of rural development. For instance, one constraint that is currently limiting the growth of the area is the access road. The current access road is a two-lane road that includes a number of curves and hills. A federal grant to build a new access road has been submitted and has been approved. However, matching funds from the county have not been approved, so the new access road project is currently on hold.

Furthermore, there is a need to develop a master plan for developing the entire

Starlight area. Local businesses would benefit from the development of a vision as to what they would like the entire area to look like in the future.

Another constraint that Joe III and others have identified that hinders development of the entire Starlight area is a lack of lodging available to tourists who visit the area. One idea is the development of a campground or other lodging alternatives.

With the Huber family involved, the Starlight area will undoubtedly continue to grow and develop. It will be interesting and exciting to see the changes as this “family farm” continues to grow and evolve during the next 20-30 years.

Host Business Selection and Local Arrangements

Publicity and Publications

Huber’s Orchard & Winery

Comer Farms

Comer Farms is a family farm of about 4,600 acres producing corn, soybeans, wheat and double crop soybeans. Comer Farms is a multi-generation business involving Ronald and Carolyn Comer, and two sons, Phillip and Michael.

Steve Gauck Greensburg, IN

Dale Koester Wadesville, IN

Alan Miller Purdue University

Association History and Purpose