"Cultivators of the Earth are the most valuable citizens. They are the most vigorous, the most independent, the most virtuous, and they are tied to their country and wedded to its liberty and interests by the most lasting bands." — Thomas Jefferson

Two centuries ago, Thomas Jefferson advocated for a vision of American economic strength based upon the labor of the farmer. Since that time, the independent farmer has had a difficult time making ends meet. In many ways, the United States dairy industry has become an even tougher place to advance as an entrepreneur. Many states that once produced a surplus of milk now show a deficit. U.S. Department of Agriculture figures indicate that the amount of milk produced in the United States is almost half of what it was in 1990. Many dairy operations that once relied on co-op dividends have dried up and left the business.

Clinton county resident and former 4-H member Leroy Shatto is a dairy farmer turned entrepreneur who has managed to save the family business. Leroy married into a dairy farming operation that had been in existence for over 100 years. He has personally worked in the business for 34 years. After years of partnering with his father-in-law, Leroy assumed management of the family business. As milk prices continued to fall, staying in business became more and more problematic. He saw dairy farmers all around him dropping out of the business. He knew he would “either have to quit or do something different” with the dairy. But instead of folding, Leroy decided to try refocusing the business on his terms.

Leroy wanted to sell fresh milk products on his own, directly to stores. His idea was to produce an almost entirely different alternative for the milk buying public. Leroy’s vision began to take form in 2003. His vision was the freshest local milk that could be produced for customers, from the cow to the consumer in as little as 24 hours. The milk would be sold in glass bottles, which provides the best quality packaging and is more environmentally friendly than cardboard or plastic. In addition, he would produce cheese, cream and butter from his in-house creamery.

The challenges were many. Where would he be able to get initial funding for necessary equipment? Would people be interested in buying his product? His first step was a feasibility study, funded in large part by a grant through the Missouri Department of Agriculture. The feasibility study led to a detailed business plan. His next step was securing capital funding, which proved to be more difficult. His loan requests were turned down by many banks, which are sometimes timid about taking chances on farming ventures, but ultimately he prevailed.

He received assistance from the Kansas City office of the Small Business Administration (SBA) which helped him get funding. University of Missouri Extension agriculture programs also provided him information for business startup. He also received valuable advice from members of SCORE (Senior Corps of Retired Executives), an organization which matches up experienced executives with aspiring entrepreneurs, to whom they provide mentoring. From these experiences, Leroy notes the value that aspiring entrepreneurs can find in seeking assistance from professionals with business experience.

However, this was still not enough to assure Leroy of success in his new venture. Would anyone buy his milk? Would there be a market? Leroy needed to find out for himself. He went to local grocery stores, trying to sell managers on the idea of carrying his milk. “At first it was a scary thing to do,” he said. “It was stuff I’d never done before.” But he was immediately gratified the first day when he came home with commitments from many area stores. Word of mouth quickly spread, and others stores also bought into the idea. His fresh milk business has taken off since.

Creativity is an essential trait for entrepreneurs and Leroy used his to tackle financial instability while continuing to provide income for his family. He says that part of the fun of his business is being creative with new ways of producing milk for consumers. Besides making conventional dairy products like ice cream and butter, Leroy packages various kinds of flavored milk. Chocolate and strawberry are delicious, well known flavors, but unexpected varieties have also emerged, like orange dream, cotton candy and root beer flavored milk!

Leroy’s accomplishments have been nationally recognized. After being nominated by the Missouri SBA office in Kansas City, he was named the Missouri Small Business Person of the Year. He was also named the runner-up National Small Business Person of the Year. He received special recognition in Washington D.C. for his accomplishment. A picture of former President George W. Bush holding a glass of Shatto’s milk is displayed at the farm’s country store as a reminder of the award.

“If you’ve got a dream, if you want it to work, you can make it work,” says Leroy. He knows from his own experiences that 4-H provides youth with opportunities to develop character that translate into good business practice. He says, “4-H tries to make you a better person. It keeps kids grounded and focused, and teaches responsibility.” He believes this is especially valuable in today’s society. “Some kids today aren’t involved in anything; they stay in their house and don’t want responsibility.” He gives back to 4-H through milk donations for special events. He also gives tours to 4-H and other youth programs interested in learning about a working dairy operation.

Leroy admits that running a business is a lot of work, but he takes pride in his product and derives satisfaction when he hears that people enjoy his products. He says, “I’ve had more fun the last two years than I’ve ever had in my life.” He also loves the interactions with customers. “I love working at the store on weekends. You meet nice people from all over the world.”

Independent farmers like Leroy are excellent examples of entrepreneurism in action. He and others like him help strengthen their communities and add vitality to the local and national economy. Thomas Jefferson would be well pleased.

If you know another 4-H alumnus who has applied their “Clover experience” to becoming a successful entrepreneur, please contact Adam Loftin, acl7f4@mizzou.edu, 573/884-7929.

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If you know a 4-H alumnus who has applied their “Clover experience” to becoming a successful entrepreneur, please contact Adam Lofti at acl7f4@mizzou.edu  or 573-884-7929.