Agriculture

Survey says: Suffolk County farms taking larger loss

Over 300 Suffolk County farms reported an average loss of nearly $125,000 in 2012, up from about $75,000 five years prior, though longtime Cutchogue farmer Tom Wickham (right), said one benefit of farming on Long Island is the land values. (Credit: Barbaraellen Koch)
Over 300 Suffolk County farms reported an average loss of nearly $125,000 in 2012, up from about $75,000 five years prior, though longtime Cutchogue farmer Tom Wickham (right), said one benefit of farming on Long Island is the land values. (Credit: Barbaraellen Koch)

Tom Wickham of Wickham’s Fruit Farm in Cutchogue said despite the impact of the hurricane, which unearthed dikes on the coast side of his farm, he was still able to “squeeze out a small profit” in 2012.

He said increases in production costs on Long Island are undeniable and that retail stand business and U-pick operations like his Main Road farm seem to doing better, allowing for added stability in terms of income since growers can set their own prices.

“If products are sold through farm stands, I think they are marginally profitable,” Mr. Wickham said. “If they have to be wholesaled, I would not want to be in that business.”

He added that although growers may be showing very little profit, the positive side is that the overall value of their property will continue to go up.

“There is a long-standing tradition that farmers, almost always, overstate their losses,” he said, because farmers never know what’s going to happen from year to year. “There’s tremendous variability.”

Matthew Schmitt of Schmitt’s Family Farm in Riverhead, helps operate a more than 250-acre farming operation that mostly sells wholesale.

“It’s such a market-driven industry that it’s hard to demand more for your products,” he said. “We keep talking about scaling way back and focusing on the retail.”

The Schmitt family has recently taken out a loan to purchase a new farm stand for its Sound Avenue location.

About 95 percent of their produce is sold wholesale, he said. “When you’re growing the same things and your overhead is 20 percent more than everyone else’s, yet you’re getting the same return as them, your profit is gone.”

Mr. Schmitt said about 20 years ago, 10 to 12 heads of lettuce, which was cheap to produce at time, would earn the family $8, minus the 40 cents they spent on a box.

“Now you have to put 24 heads in a box, the box costs you $2.50, and you get only about $10 on average,” he said. “Honestly, it has been a very long, rough stretch of years.”

Mr. Gergela said “it would be disrespectful to tell the people how wonderful it is.”

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