Homemade Cheese, New Business Plan Pulls TX Dairy Operation Out of Debt

Michael and Debbie Sams used the Farm Service Agency to change their business from a commercial dairy to local farm selling dairy products. The Sams have nine children and 24 grandchildren.

Michael and Debbie Sams needed to save their dairy farm. Knee-deep in debt with nine mouths to feed, they needed more than just a few dollars to pay off suppliers. They needed a new business.

In 1993, the Sams built Full Quiver Farms, a commercial dairy operation in Texas. “The first couple of years we were doing fairly well,” said Michael. Then the downturn came. With the turn of the new century, milk prices hit rock bottom and feed costs soared, sending the small dairy farm into debt.

“We had a limited number of anchors and few choices,” said Michael. “We either get bigger or we get smaller. If we get smaller we need some value-added products.”

Products like cheese.

After reading books on how to survive on a small farm, the family decided to move from a commercial dairy farm and focus on becoming a local farm selling directly to consumers.

But one thing needed to be resolved — the debt.

Full Quiver Farms sells its cheese to Whole Foods Market and at local farmers markets.

“We worked with the Sams family to transition from a traditional dairy to a sustainable, profitable local farm,” said Bashir Duale, Farm Service Agency farm loan manager in the USDA Waxahachie Service Center in Texas. Duale said they have seen several dairy farmers in the area opt out of regular milk pricing and change their business model. “[The Sams] had a vision, core values and principles that met their customers’ demand for fresh wholesome dairy products. They planned and implemented how to switch from a regular milk producing farm to a niche local market for milk products.”

Michael said he went to FSA for a loan to pay what was owed to a feed company but received more than what he expected. “They helped us develop a business plan that was workable,” said Michael, “Everyone was very helpful and supportive.”

Help from local universities and a lot of research and development also moved them closer to their goal of developing a niche market for specialty cheese.

“We had limited knowledge about cheese making,” admits Michael. “My wife knew how to make cheese and would make it for the house, but a lot of it was trial and error.”

Then they mastered the art. At first the Sams gave samples to Whole Foods Markets and regional buyers. It was so well liked that their products were picked up by the companies. Within ten years they had pulled themselves out of debt and into a position of making 1,200 lbs of cheese a week that bolstered their business.

“In the beginning we had children working on the farm and we were losing money and couldn’t pay them,” said Michael. “Now we have four of our own children and four part-time workers we are able to pay a respectable wage and we are debt free.”

The Sams raised nine children on the farm and have 24 grandchildren. Michael said reviving the family business was essential to his family.

“Three of my children are still at home and working on the farm and I have one married son who works for us full-time. I also have one grandson who lives close by and is here all the time. Working here is a way to keep them all interested in farming.”