For Sale – Falster Farm on Pasture 365

Purpose of this Document:

Explain to, and identify, qualified Investors or buyer for the purpose of expanding Falster Farm sustainable ranching to the “next level” – Gourmet Beef and Pork Production . . .  as an orderly estate transition from the Falster’s to new ownership; or, as a prudent and lucrative real estate / agricultural investment to add stability to any portfolio . . . as well as, to establish a basis for the fair market value of Falster Farm’s future prospects as an immersion style “Retreat Center” / Educational Center for Veterans in the 501C-3 Warriors That Farm™ project.

 

Sound & Solid:

Founded on the principals of proven, profitable all-natural Wholistic animal husbandry practices, concrete, predictable heirloom genetics and solid management and marketing, Falster Farm & Cattle Ranch is located in North East Texas 40 miles due North of Tyler in Wood County, midway between Dallas (90 miles to the West and Shreveport 90 miles to the East.) The goal of this full-orbed Certified Wholistic™ farm and ranching operation is:
  1. to produce high-quality seed stock of Pure Bred Miniature Registered Hereford, Jersey cattle and Normandy,
  2. Provide the consumer with a delicious, nutritious and healthy eating experience of nearly unique gourmet meats and dairy.
  3. Additionally, Falster Farm seeks to raise and sell at a profit, “Food Fit To Eat.”® and teach others how to do the same.
The outcome is real life, a wholesome sustainability encompassing the natural world to the spiritual.
In 1999, Falster enriched the niche marketing plan of their local non-certified organic farming practice to include the World Wide Web: www.falsterfarm.com. With this component in place the sales of the Falster’s pure bred Miniature Hereford beef cattle genetics (seed stock) has spread to 4 continents and currently under serious consideration with authorities in the Chinese state of Hunan and the University of the Philippines.
Frugally managed, the growth of the Falster Farm & Cattle operation has been on a no-debt, cash basis.
In 2012, Falster’s reached the limits of expansion by this limited basis arriving at the point where venture capital is appropriate. This outside capital will be for the recruitment and building of a management team vital for sustaining growth and continuity of leadership. Additionally, by the establishment of additional capital there are environmental and population driven opportunities for profitability at hand that require additional infrastructure to enjoy.
  • The USDA reported that the current population of mama cows in the US is the lowest January 1 inventory of all cattle and calves since the 88.1 million on hand in 1952. By retaining and moving his herd to Mississippi during the 2011-2012 Texas drought, Falster has allowed the bred cows and heifer population at Falster Farm to be at an all time high!
  • Falster Farm has installed low pressure irrigation for the row crops and orchard but desires to install a substantial “Serengeti Style” irrigation system and 6″ wide, deep well into to Northern Reaches of the Carrizo Wilcox Aquifer located 250′ below Falster land.
  • The strength of the historical Falster Farm operation lies in the expertise of the Falster’s. This knowledge should be transferred to a capable protégé in all areas from growth of food to food production.

Investment in Agricultural properties

Concepts in General

As the dissemination of information about the health risks associated with Genetically Modified food stuffs (GMO) increases, the trend in consumer food purchasing has shifted away from exclusively buying cheap big business chemical based factory farm products. More and more are looking to all-natural based, organically grown meats, fruits and vegetables as availability allows. Locally, the quantitative financial value associated with this trend has Brookshire Grocery Company, Kroger and Wal-Mart Foods offering an ever expanding line of this organic labeled grocery group, again when provisions are available. Restaurants and the Dallas Independent School District (ISD) and surrounds are asking for local all natural food to buy. Dole, Nestle, and many other international companies are racing to get a place in this market to satisfy this growing market demand. The federal government has erected guidelines for this classification.

The above is important to our consideration of market direction, it is telling us that we can profit if we can produce enough of these same or better commodities for local purveyors such as Brookshire Grocery, direct farm to consumer, and farm to restaurant, or even the ISD (obesity in the government school is rampant.) There are national contracts for growers of grass fed beef with Whole Foods and a growing number of grassed based packers as well.

Several of the conservative investment advisors instruct us that agricultural land is a good investment. As a long time owner of investment grade agricultural land, let me suggest to the uninitiated that AG land is only as good as the agronomics that it has and the people that make it agricultural, otherwise it is just land. Untended land returns to wild state in a remarkably short period of time. Therefore the AG investor should seek a working farm for an investment, be that a factory farm or a sustainable all-natural farm. Generally speaking the all-natural farm has a profit potential that exceeds the chemical based farm due to sustainability of inputs. Stated simply the reason is that Organics cause living organisms in the soil to grow, strengthen and reproduce from year to year – feeding the crop (animal and vegetable) whereas annual dosing of chemical herbicides and fertilizers are washed away and depleted without building sustainability.

Cost on these two efforts at production should be decreasing cost of inputs for the all natural and steady to increasing (depending on the price of oil) on the chemical side. Perhaps it doesn’t sound very democratic but the Falster vision is not to participate in feeding the 2 billion people of the world. Rather, our vision and on-going objective is to make a high quality deliciously desirable food stuff available to local people just like us.

Why Falster Farm Specifically or How the Falster’s Do It:

Recognizing that our greatest asset is the food we are producing and its heirloom genetic purity for predictability for generations to come. (Culling cows and pigs – improving generations is one of our passions in animal husbandry. The ability to improve each generation is our goal.)

Observing our practices, the tastes of these tangible assets are readily consumed by our customers. Day–to–day, customer service is our highest priority. Our numerous Falster Farm customers both foreign and domestic attest to our efforts to retain customers and turn those buyers into repeat buyers. Falster Farm insures this by providing sight-unseen guarantees for buyers who cannot attend a sale or just travel, customer free consignments for their production on our web-site (usually ranked in the top three on GOOGLE) for the 1st generation after their purchase from us. Free telephone consultation before and after the sale.

Our program includes growth:

  • Falster: a Brand synonymous with the concept of quality not quantity. Today, we are a premier producer of live cattle sales: pure bred Lowline Hereford beef & Old World Jersey dairy cattle as well as the Texas heirloom Red Wattle hogs. Although a small family farm, Falster provides breeding services; both live cover and artificial breeding nearly worldwide. The Falster’s are life members of the American Hereford Association and practitioners of the Organic method since 1970. Today we are a Certified Wholistic™ farm.
  • In 1970, Falster introduces the notion of Organic Horticulture and agriculture to the low country of South Carolina: no pesticides or hormones, non-genetically modified, no artificial flavoring, no hydrogenated oils, and no MSG and no poisons.  That means the best-tasting food without all the junk.  REAL food!
  • In 2000 Nancy Falster introduces the heirloom Hereford cow breeding program to South Texas.
  • In 2007, a Live Cattle Investment program started – Falster sells and then manages the herd development desires for our client investors for a fee. We currently have 5 such investors from California to Switzerland.
  • Sales of Frozen Embryos and Frozen Certified Semen; as far as I know Falster is the only Cattle Ranch in the last 30 years to be granted authority to ship frozen semen into New Zealand from the USA. In fact we have customers in Belgium, New Zealand, Australia, and Thailand. In July 2014, a pro-forma invoice is in the making for the University of the Philippians to start a breeding improvement program on their indigenous cattle. A modern version of putting the Hereford Bull on the Longhorn Cattle at the turn of the 1800’s in this country to improve what we have today in the beef market.
  • Continuation and successful growth in our gourmet beef and pork sales emerging in the Dallas market: Chef Graham Dodds of Hibiscus Restaurant: “Our customers love your pork (Cochon de lait cru).”│Urban Acres Dallas’ largest CSA, “… the event was a huge success due to our serving your clover finished brisket, wow!” │Chad at the Dallas Farmers Market rebirth project: “Yes, we will build out a stall for you in the new Dallas Farmers Market for local farmers and ranchers.” │ Chef Michael Brady Head Chef of Brookshire Groceries “FRESH” became a personal client and now represents and sells Falling Star gourmet meats.
  • We have spent 10+ years developing our East Texas soil using bio-dynamic modalities to produce the finest white ball clover for what local’s tell us is the best honey they have had since childhood. This is a sideline to the finishing of our cattle raised for packaged gourmet beef. This means, pastured (grass fed) beef and then finished on clover (not grain). It is unique today – the old European way, the quality way.
  • Falster pork is called “Cochon de lait cru” . . . milk fed pork by the French. Raised on those same pastures, plus lounging on their pond in the sun and shade of the East Texas Savannah lands, no-stress and hand feeding twice a day of a special diet that includes raw Jersey milk, they are to ultimate of gastronomic exquisite gourmet pork.
  • Greens, peas, herbs and all manner of vegetables for our table and the local Farmers Market. Nancy sat as founding President of that board in Winnsboro. In the fall of 2014 Falster Farm will be a featured vendor of gourmet specialty meats in the rebirth of the DALLAS FARMERS MARKET.
  • In 2012, a research work by Dr. Peter H. Langsjoen, Cardiologist, in his laboratory research for vitamins, minerals and “CoQ 10” content found in eggs, sourced from: Wal-Mart, Central Market, his backyard chickens and Falster Farm. His presentation indicated Falster Farm pastured eggs have 500% more vitamin E than Central Market’s best certified organic eggs. One may logically extend that finding to all pastured animals on Falster.
  • On-Farm classes in Southern agronomics; raw artisanal cheese making; cooking in the nourishing traditions style, wine and mead making; bee keeping; sustainable organic vegetable production, and all natural animal husbandry.
  • In the fall of 2013 a plan was inaugurated to offer a Warriors That Farm™ immersion style apprentice program to returning veterans.
  • While in strategic planning yet, we have initiated the branding of our gourmet beef with our “Falling Star” brand. What is more exciting to witness in the night sky than a falling star- blazing across the heavens?
  • In the spring of 2014 Falster Farm was granted the designation as a Certified Wholistic Farm™.
  • In the summer of 2014 saw the consummation of 1st embryo transplant of Registered Red Polled cattle on Falster Farm for the advancement of a moderate framed highly tender and nutrient dense pastured beef production cow.

Preparing for Transition:

At various times since 2003, Falster has considered beef sales. But the lack a USDA processor near at hand and need to increase the population of our mama cows on the ranch because of the high demand for the Falster breeding genetics made it a mute issue. However, today we have a very good population of bred heifers and mama cows in service.

Then, at the recent Weston A. Price convention held at the Sheraton Convention Center, Dallas, Texas, the Executive chef and his subordinate chefs prepared and evaluated the quality and taste of the Falster Farm Gourmet Beef. Honestly, it was a frightening thought to be under such scrutiny. But their exclamations of delight were most rewarding to receive.

Some of the European’s claiming not since Germany had they tasted such delightful beef. The ten plus years of soil preparations and animal husbandry research proved its worth during that meal and subsequent facets of the convention where Chef Nancy Falster prepared some of the dishes for 1200 plus attendees. In 2012 Falster proclaimed “I believe we are ready to make the transition from a cow/calf seed stock producer to boutique specialty niche beef producer and fill the growing demand of the Dallas – Ft. Worth gourmet restaurant opportunity now.”

Because of the drought conditions, a huge sell-off of mama cows has taken place all across the beef producing states. I believe that the ‘big is better’ hype of grain fed cows is over. Only the low input short legged true tender beef cow will emerge from this drought as profitable.” 2

Prices of live cattle on the Exchange are rising and will continue to rise simply due to the absence of breeding stock. With the understanding that calves born this season in 2012 (the few of them nationwide) means a product for 2014 – roughly ½ have of those born will be retained as replacement heifers leaving only ½ the calf crop for consumers of beef. Yes, the USA is in an all time low of mama cows’ and that can mean real opportunity for our investors. The limitations created by the current drought will be a very real advantage to the investor because of the objectives stated below.

Investor Development:

While a fairly unique operation, Falster Farm and Cattle Ranch displays a very stable, far seeing, agricultural enterprise poised to enter a new era or level of niche market production and take advantage of both potential for growth in the economy nationally and internationally, and yet with a solid local customer orientation to be secure in the potential of a continuing down turn. Strategic planning for this greater level of production requires participation of other’s capital and employment of farm hands. Our intention is to form a non-qualified buy/sell agreement that will allow investors (PRTS) to reap a portion of the financial rewards and satisfaction for participation and assure the right operators to manage the growth of Falser Farm’s assets for the long term. The right investment parties will share our desire to install the “Serengeti Style” irrigation system, a Fodder System and the USDA labeling of Falster Gourmet Beef, Pork, as well as identify and buy good tillable and valuable land and for making good investment and marketing decisions.

The Situation:

The Falster Family wishes to assure its current customers continued growth of their farm and ranch. They wish to transition the place and enjoy their means of healthy and joyful living. At the same time they wish to have a more mentoring and evangelical aspect to their aging years. To accomplish this they wish take on either partners, buyers for any combination but not limited to any of the following: sell and lease back, regular participation partnership, a limited partnership, a limited liability company, or a straight buy out, with a consulting agreement if wanted. Here are some thoughts:

Consider Falster Farm Current Assets:

Falster Farm on Pasture 365: acreage – roughly 56 acres:

  • Home, 2 Barns, Custom Cabin, Equipment Sheds, 2 Garden Houses
  • Orchard, vineyard, truck garden areas, kitchen herb garden
  • Pasturage – roughly 50 Organicly Improved and Wholeisticly managed
  • Forrest and water 6 acres
  • Leased acerage – + or – 170 acres beautiful rolling Post Oak Savannah

Livestock – Live Cattle, Frozen Semen & Embryo, Live Hogs, Horse, Poultry –

Animal Handling Equipment–

Mechanical Equipment and rolling stock –

Turn Key Business: Brand, Web Sites, domestic and International customers, and 6 months of training.

The asset value of the Falster Farm is in the neighborhood of . . . call Nancy at 903-629-3034 for appointment.

What may work for a Falster Farm Investor?

Limited Liability Corporation (LLC)

  1. A 25 year private subordinated lease of + or – 20 acre non-certified Organic Hay Meadow subdivided into 3 “Serengeti Style” grazing paddock/arenas. “200 to 600 pounds of cattle can be grazed at a stocking rate of 40 to 60 head per acre using this method.”3 This is the Falster Model of high intensity pasture raised, clover finished gourmet beef production.
  2. Plow down and revitalize 9 acres of the South Hay Meadow for clover and Bermuda expansion for the establishment of the FFLP’s Falster Gourmet Beef operation.
  3. Drill and pump 6″ irrigation well, install a sub soil irrigation system for water distribution of same.
  4. Make permanent the arena and paddock system currently successfully operating on the North End of the Hay Meadow, and increase it to a total of three units on the 19 acre “Hay Meadow.”
  5. Hire a protégé and helper for two years.
  6. Purchase and stock the 3 Arenas with Bred Lowline Hereford Mama Cows and or Red Polled Cow heifers (60 total) 4
  7. Rental of equipment and misc. considerations (such as USDA label acquisition)

How will the Falster Farm Investor Profit?

The objective is to be sustainable in a real way, making money by the production and selling of the highest quality of Clover Finished Gourmet Beef and milk fed pork available. The produce of the Falster Farm will be private label gourmet meats sold primarily under contract to the Executive Chefs of the major upper tier restaurants in Dallas and Ft. Worth area. Additional sales will be to the already established customers of Falster Farm; in Chicago, Nashville, and San Antonio as well as on-line.

Falster Farm will continue as a Seed Stock producer and will steadily transition to the Gourmet Beef producer of choice in our market.

Following are links to the type of on-line marketing that Falster is transiting to:

 http://www.youtube.com/watch?v=g9ySSD2LWbQ CLOVER FINISHED BEEVES

Jump To Texas’ Most Beloved Farm and Ranch on Pinterest

What are the collateral advantages of this proposed LLC?

  1. Continuity of professional management and sustainable farming
  2. Being first in line to collect food raised fit to eat
  3. Owning a stake in sustainable, renewable food source that is 2nd to none
  4. Having valuable and secure agricultural lands and resources if/when TSHTF
  5. Potential for appreciating investment value and financial distribution
  6. Limited liability, unlimited potential
  7. Perhaps good personal tax advantages. (seek competent accounting advice.)
  8. Opportunity for increased beef and pork sales by USDA approved private labeling, and by enhancing and expanding the production model.

Disclaimer & Contact Information

The above information is not an offer to buy land, securities or any regulated investment instrument of any kind whatsoever. The above is the collected thoughts, views and recent history of the author Karl Emmett Falster and presented as prospective analysis. Facts and figures represented here in are done so on a rough and un-audited accounting; constituting a basis for discussion and exploration only.

The author of the above can be reached at:

Karl Emmett Falster, Falster Farm & Cattle Ranch
2112 CR-4778
Winnsboro, Texas 75494

www.falsterfarm.com
falster@falsterfarm.com
903-629-3034 (h)
210-737-4527 (c)

Thank you for your consideration.

Breeders of Miniature Jersey Dairy Cows & Pure Bred Miniature Hereford Cattle "Good food in Small Packages"
 

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