There are a couple guys out here too...
The more you process your product the less you really "make"
So we like to sell "raw wool", mixed/dyed wool, yarn, and knitted items... in that order.
But you have to find an outlet. Online or on the block. We have a bit of both. We use Local Harvest, http://www.localharvest.org/farms/M25637
and a local Village Market, http://www.henrysvillagemarket.com/
We just sold out of all the hats, mittens, and scarves we had at Henry's so we're knitting away again now.