Missouri Alternatives Centers Bimonthly Electronic Newsletter 800-433-3704 ?AG OPPORTUNITIES? May-June 1999 (Vol 9 No 6) * Small Farms * New Family Farms * Agricultural Alternatives Economics of Organic Production and Marketing The Sustainable Agriculture Extension Program at the University of Missouri and Lincoln University along with the Missouri Alternatives Center sponsored four regional organic workshops in early Dec last year. At the Southeast Missouri Regional Organic Workshop held in Cape Girardeau, Cheryl Brown, professor of Agricultural Economics at Southeast Missouri State University gave the following presentation. The Organic Foods Industry • “Growing faster than expected despite lack of national standards” (Datamonitor) • Grew more than 26% from 1996 to 1997 to $4.5 billion • Financial analysts predict it will continue to average 20% per year growth for at least the next 5 to 7 years (vs. 3-5% for the food industry overall) • Much of the growth is in processed organic foods: From 1996-1997: • Organic candy and snack sales up 300% • Organic ice cream sales up 292% • Organic milk and cream sales up 73% • 60% of organic food sales come from specialty retailers (Whole Foods and Wild Oats) • Natural food stores are growing at 14% per year over the last 5 years compared to 3.3% for supermarkets • Supermarket sales of organic foods grew by more that 40% yearly (1990 to 1995), accounting for 28% of the sales of organic foods in 1995. Farms • There were over 5,000 certified organic farms in 1995. • There is estimated that at least 6,000 additional farms meet organic certification requirements but are not certified. • Over 1% of total vegetable acreage increased between 1993 and 1996. • Organic acreage increased between 1993 and 1996 • By 10% to 25% in Idaho & Texas • By 80% in California & Florida • By 300% in Wisconsin • Organic production in Iowa • 1993: 10,000 acres • 1997: 62,000 acres Majority of the land was in corn, soybeans, small grains, & forage. The total value of these organic crops = $22 million/year. Alone the value of organic soybeans and soybean products $15.5 million/year. Organic Consumers The Evolving Organic Marketplace (1997) claimed • 18% of US consumers are “strongly interested in buying organic” • 28% are “generally interested” • 16% are “ambivalent” The US Organic Food Market (1996) claimed that • 30% of consumers had changed their eating habits as a result of reports of pesticides and food chemical dangers • 32% had sought out organic produce USDA report on organics (1997) Many organic consumers are interested in environmental protection. Consumers ranked concern about impacts of pesticides on the environment, groundwater, wildlife, or ag workers higher than other concerns Why are consumers not buying organic produce? from Fresh Trends (1996) • 35% “Not available” • 28% “Too expensive” • 19% “Didn’t see a need for it” • 8% “What’s organic?” • 6% “Poor quality” “The major problem facing organic farmers in the next 25 years will be adequate supply, not demand.” Fred Kirschenmann (1995) Price premiums for organic foods • No good public information source for organic food prices • Price premiums vary considerably by commodity and time of year NJ study – organic price premium is 20% to 30% above price for conventional Canada – organic price premiums on grains & beans range from 30% top 50% USDA study – wholesale organic price premium for vegetables ranged from 5% to 183% For organic carrots ranged from 52% in August to 157% in December Organic Research Grants The Organic Farming Research Foundation is offering funds for research on organic farming methods, dissemination of research results to organic farmers and growers interested in making the transition to organic production, and consumer education on organic farming issues. Projects should involve farmers in design and execution, and take place on working farms when possible. Proposals of up to $10,000 are encouraged. Matching funds and/or in-kind contributions are recommended. Proposals are considered twice a year; the next round of proposals must be received by July 15, 1999. To receive copies of grant application procedures and the OFRF Research and Education Priorities describing target areas, contact OFRF. Contact - Grants Program, Organic Farming Research Foundation, PO Box 440, Santa Cruz, CA 95061; 831-426-6606; research@ofrf.org; http://www.ofrf.org *** In the News *** The adoption of organic soil practices can effectively reduce nitrate contamination of groundwater while maintaining yields and improving overall soil quality, according to a 15-year study by the Rodale Institute. The research highlights an organic solution that could reduce the harmful effects of agricultural groundwater pollution and its contamination of surrounding waters. The study also found that organic management increased soil fertility, improved water filtration and holding capacity, reduced erosion, and increased crop productivity, especially during dry years. (Journal for Alternative Agriculture, April 1999) A hairy vetch cover crop and corn residue left from not plowing create a double mulch for crop fields, saving on chemical weed killers and commercial fertilizers. This double mulching keeps soil moist and smothers grass weeds, the principal weed type in farm fields. Preliminary data from 1998 suggest the practice could reduce the amount of atrazine used nationally to control grass weeds. Preliminary results of assessing herbicide fate in no-till corn also indicate that hairy vetch reduces the loss of herbicides in runoff, but several year's data will be needed before a quantitative value can be given. Data also show that nitrogen producing cover crops like hairy vetch can reduce nitrogen fertilizer use without sacrificing yields; vetch also reduces downward leaching of metalochlor, a common herbicide for cornfields. For more information, contact Ali Sadeghi or Allan Isensee at 301-504-6693. (Quarterly Report Oct 1-Dec 1998) Using hydroponics, ARS scientists have produced strawberry plants that yield as much fruit as plants grown in soil fumigated with methyl bromide. Good news for strawberry growers worldwide who use the fumigant to control soil-borne insects, diseases and weeds. The chemical has been named an ozone depletor and it will be phased out over the next several years. One alternative could be hydroponics–growing plants in a water and nutrient solution without soil. From hydroponically grown plants, ARS scientists harvested ripe strawberries twice a week from Dec to May. Fruit quality and taste were excellent and a few foliage pests were controlled with natural agents. Growers may recoup high initial setup costs for hydroponic farming by producing a higher value product, increasing yields and spending less money on pests and diseases. In addition, weather isn't a factor that limits greenhouse crops and hydroponically grown berries reduce labor costs. For more information contact Fumiomi Takeda, 304-725-3451 ext 212. (Quarterly Report, Oct-Dec 1998) New waste recycling techniques could turn the discarded shells of pecans, almonds and other nuts into a prized commodity: activated carbons. Millions of microscopic pores riddle the structure of activated carbons, enabling them to adsorb many different chemical compounds and certain metals that sometimes contaminate air or water. Coal is the standard material for making the carbons, but it's a limited resource. Now research shows that carbons made from nutshells work just as well, if not better. Good news for commercial nut growers and processors. They dispose of the nutshells at high cost or sell them for $2 to $10 a ton as a low-value commodity such as mulch. Nutshells could find a niche in a global market that now consumes 600 million pounds of activated carbons annually–half of this in the US. Carbon uses run the gamut from fish tank filters and wastewater treatment plants to mining operations. Another application is air monitoring. In one comparative study with six commercial adsorbent products, one type of nutshell carbon resulted in a three to four fold increase in benzene adsorption for a standard EPA air sampling method. Benzene is used in fuels, dyes, solvents and many other products. But it becomes a contaminant upon escape into the environment. For information, call Wayne Marshall, 504-286-4207. (Quarterly Report, Oct-Dec 1998) With a helping hand from science, smut could become the next weapon in the war on weeds. Smut–more specifically, loose kernel smut–is a natural fungus ARS scientists are experimenting with to kill Johnson grass, a noxious weed. The smut fungus causes a disease that turns the weed's seed structures into a black, crumbly mass. Scientists hope to encourage the microbe's mischief by formulating it into a mycoherbicide spray. They're conducting field tests to evaluate the spray's potential as a natural alternative to conventional chemical herbicides. The chemicals help prevent Johnson grass from invading farm fields and out competing crop plants for space, sunlight, nutrients and water. The fungus is an appealing alternative to herbicides. It poses no danger to groundwater contamination, is naturally occurring and is very host specific. In field trials, scientists observed plant infection rates of 50 to 80 percent after spraying the fungus onto Johnson grass seedlings. For more information, contact Rex Millhollon, 504-868-3168. (Quarterly Report, Oct-Dec 1998) The Organic Consumers Association is a new, non-profit, consumer advocacy organization working to educate and unite organic consumers to protect the integrity of the organic label, promote sustainable agriculture, oppose hazardous practices of industrialized farming and biotechnology, and protect citizens’ right to know how their food is produced. OCA is working hard to ensure that the US Dept of Ag develops a strong set of national rules for organic food. OCA is affiliated with the Center for Food Safety in Washington, DC. Contact OCA, 860 Highway 61, Little Marais, MN 55614, 218-726-1443, safefood@cp.duluth.mn.us, http://www.organicconsumers.org Helping small farmers cut costs and increase profits are the goals of a new education campaign being launched by the US Dept of Ag. The campaign, “Farming for Profit, Stewardship & Community,” will provide information to producers on sustainable agriculture practices that can help farmers succeed. “These are systems that farmers can use to cut production costs and add value to their products, even as they reduce the impact on their land,” said Agriculture Secretary Dan Glickman, in announcing the education effort. “We want to make sure that producers know what sustainable agriculture is, how it can be applied to their operations, and where they can go for help.” Numerous tips sheets have been created that can be found on the SARE web site: http://www.sare.org/san/tipsheet/index.htm "Proudly bringing together growers and purchasers to further expand their opportunities in organic farming" is the goal of the North American Organic Grain and Hay Producers Directory. For more information call Robert Hadad at 606-277-5545. Small farmers increase their chances of prosperity when they incorporate available options and alternatives that allow them to make the most of each acre, according to an article in The Furrow (Spring, 1999). One Iowa farmer “rather than compete for additional acres...modified his operation to meet changing consumer demands. Switching part of his corn and soybean acreage to organic production has given him access to additional markets, and boosted his profit.” He grows alfalfa to provide adequate nitrogen for his corn, and rotates his crops. With 60 acres now certified organic, he hopes to convert another 100 acres in the next few years. Another poultry farmer feeds his chickens in portable coops that are easier to move to fresh pasture, and another farming family expanded their pumpkin crop to include apples “to add color and cash to their fall harvest.” (Alternative Agriculture News, 5/99) The influence of “clusters” of firms on the US food chain, is topic of a new report, prepared by Dr. Bill Heffernan, a rural sociologist at the Univ of MO. The study details the relationships forming the three major clusters - Cargill/Monsanto, ConAgra, and Novartis/ADM - and their influence. For more information about the study, contact Bill Heffernan, 105A Sociology Bldg, Columbia, MO 65211, 573-882-4563. *** In Print *** *Natural Beef: Consumer Acceptability, Market Development and Economics* Presents sample marketing plan and four case studies for farmers and ranchers interested in grass-fed beef production and marketing. Linda Fugitt, UC SAREP, One Shields Ave, Univ of CA, Davis, CA 95616, 530-752-7552, Free. *Field Grown Cut Flowers: A Practical Guide and Sourcebook* WI grower John Hurd worked with KSU floriculture specialist Alan Stevens to produce a 400-page book detailing production and marketing of flowers and ornamentals. Call 800-884-4730, $39.95 + $5 s&h *From the Field to the Table* excellent resource about safe food handling for growers and processors selling at farmers markets. Establishes risk categories for the many types of food products that are sold at farmers markets, and recommends minimum production, storage and transportation standards for each category. Also includes minimum facility requirements for the production of baked, pickled or canned food, and has numerous ideas for cooking demonstrations, labels and display spaces. Available from Economics Institute, Twomey Center for Peace Through Justice, Loyola Univ, 7214 St Charles Ave, Campus Box 907, New Orleans, LA 70118-3565, $22.00. *Getting Food on the Table: An Action Guide to Local Food Policy* Provides overview of US city and county policies and programs that affect community food security. Profiles nine organizations, offers basic organizing information, identifies potential project funders, and recommends resources. Community Food Security Coalition, PO Box 209, Venice, CA 90294, 310-822-5410, http://www.foodsecurity.org, $12.00 *Holding Our Ground: Protecting America’s Farms and Farmland* Discusses reasons for protecting farmland and methods to advocate for farmland preservation. Analyzes federal, state, and local protection efforts and techniques. Explores land protection options such as purchasing development rights and private land trusts. Island Press, Box 7, Dept 2AU, Covelo, CA 95428, 800-828- 1302, info@islandpress.org, http://www.islandpress.com/islandpress/index.html, $34.95. *Making the Transition to Organic Farming, Conference Proceedings* Univ of Guelph. Workshops include weed management, soil fertility, getting your farm certified, permaculture, community supported agriculture and more. Tomas Nimmo, Box 116, Collingwood, Ontario, Canada, L9Y 3Z4, 705-444-0923, organix@georgian.net; http://www.gks.com/OrgConf/, $10.00. *1999 National Organic Directory* Community Alliance with Family Farmers, PO Box 363, Davis, CA 95617, 1-800-852-3832, $47.95 + $3 s&h. *Food Bytes* E-mail newsletter provides news and analysis on genetic engineering, factory farming and organics. To subscribe, send an email to majordomo@mr.net with the message: subscribe pure-food-action. For more info, contact Campaign for Food Safety/Organic Consumers Association, 860 Hwy 61, Little Marais, MN 55614, 218-226-4164, alliance@mr.net, http://www.purefood.org. *CreamLine: a Big Voice for Little Dairies* a new newsletter will be published 4 times a year. Subscription is $22 from CreamLine, PO Box 186, Willis VA 24380. *Breaking New Ground Resource List* provides resources for disabled farmers. Available from Purdue Univ, 1146 Ag & Bio Eng Bldg, West Lafayette, IN 47907-1146, 800-825-4264. *Amaranth Production Manual for the Central United States: A Guide to Growing and Marketing* available from High Plains Ag Lab, 3257 Rd 109, Sidney, NE 69162, 308-254-3918, $6.00. *Recreational Access to Private Land* A great book for any farmer thinking about fee hunting, fee fishing, u-pick, or other recreational uses of private property. Available from National Center for Ag Law Leflar Law Center, 147 Waterman Hall, Univ of AR, Fayetteville, AR 72701, 501-575-7646, $15.00 plus $3.50 s&h. Did You Know? Why does the US Dept of Ag spend $7.3 million each year on horticultural and landscaping research? • Floriculture and horticulture industries are increasing by $500 million annually in grower cash receipts, making this the fastest growing segment of US agriculture. • According to the most recent statistics, the average nursery or greenhouse farmer can expect an annual return of $53,589 - more than from any other commodity. A cotton farmer, the runner- up nets about $42,396. • In terms of 1990 employments, floriculture and horticulture industries were the second leading employer in US production agriculture, right behind beef. • The US continues to be a net importer of greenhouse and nursery products. But the projected total dollar value of our 1998 exports of these products is estimated at $265 million, an increase of about 5 percent from 1997. Currently, we import about $1.1 billion worth. Increasing domestic production would help offset the trade deficit. • In addition, environmental horticulture ranks among the top five agricultural commodities in 28 states. It offers communities a chance for rural development and gives farmers a way to diversify their crops for enhanced profits. (Agricultural Research, April 1999) *** Field Day dates at MU Research Centers for 1999 *** Aug 5–Greenley Research Center, Novelty Aug 24–Graves Plots Field Day, Fairfax Aug 31–Forage Systems Research Center, (FSRC), Pasture Day, Linneus Aug 24–Graves Memorial Experiment Center, Corning Sept 2–Delta Center, Portageville Sept 9–Hundley-Whaley Farm, Albany Sept 9–FFA Day, Southwest Center, Mt Vernon Sept 10–Southwest Research Center, Mt Vernon Sept 17–Forage and Beef Day, Wurdack Farm, Cook Station Sept 22–Thompson Farm, Spickard Sept 24–Horticulture and Agroforestry Re search Center, New Franklin *** Calendar of Events *** May 15–Fiber Fair, Marshfield, MO. Call Gladys Gaeke, 417-859- 2914. May 15-19–Skin and Leather Hide Training School, Kansas City, MO. Call 703-841-2400. May 18-21–Low Cost Cow/Calf Production School, Pratt, KS. Call 800-575-0864. May 21-23–Country Living Y2K Expo, Liberty, MO. Call 816-792- 1140. May 21-23–Annual Conference of the American Livestock Breeds Conservancy, LaFox, IL. Call 919-542-5704. May 29-30–MO KAN Dairy Goat Show, Sedalia, MO. Call 816-449-5024. June 4-6–MO Natural Colored Wool Heart of America Fiber Festival, Butler, MO. Call 816-697-2104. June 5–Sheep Fitting Workshop, Boonville, MO. Call 660-882-2021. June 5–Sheep and Farm Day, Buffalo, MO. Call 417-345-7358. June 6-8–National Agricultural Biotechnology Council Meeting– World Food Security & Sustainability: Impacts of Biotechnology and Industrial Consolidation, Lincoln, NE. Call 402-472-2635. June 12–Evans Funny Farm Field Day, Holts Summit, MO. Call 573- 896-4836. June 11-13–MO Forest Products Assn Spring Technical Session, Branson, MO. Call 573-634-3252. June 12-16 – 6th Conference on Agroforestry in North America: Sustainable Land-Use Management for the 21st Century, Hot Springs, AR, Call 573-884-2874. June 14-25–International Training Program in New Crops: Aromatic and Medicinal Plants, West Lafayette, IN. Call 317-494-7220. June 25–Value Added Food Processing "From Product to Profit" Seminar, Lincoln, NE. Call 402-472-8930. June 26–Black Walnut Agroforestry Field Day, Butler, MO. Call 573-875-5445. June 26–Poultry Field Day, Swap and Trade Show, Silex, MO. Call 573-485-7261. July 11–Greenhouse Field Day, Elkland, MO. Call 417-933-5449. July 13–Organic Demonstration, Dexter, MO. Call 573-624-3709. July 29-Aug 1–Midwest Sustainable Agriculture Working Group Meeting, South Dakota. Call 651-653-0618. Aug 4-8–North American Farmers' Direct Marketing Assn Summer Tour, Nova Scotia, Canada. Call 888-884-9270. Aug 8-10–Annual Convention and Trade Show, MO Landscape and Nursery Assn, Columbia, MO. Call 816-233-1481. Aug 17–Organic Grain Farming Workshops, Clarkson, NE. Call 402- 254-2280 Aug 20-22–Herbfest 99, (Frontier Herbs) Norway, IA. Call 800- 669-3275. Sept 2-3–Bethel Fiber Expo & Youth Fiber Camp, Bethel, MO. Call 573-681-5551. Sept 4-6–20th World Sheep & Fiber Arts Festival & National Wildflower & Herb Festival, Bethel, MO. Call 573-439-5035. Sept 23-27–Annual International Bedding Plants Conference and Trade Show, Denver, CO. Call 800-647-7742. Sept 24-25–Midwest Forest Industry Show, Cape Girardeau, MO. Call 573-634-3252. Oct 2-3–MO Botanical Gardens' Best of Missouri Market, St. Louis, MO. Oct 9-10–MO State Beekeepers Assn Annual Conference, Osage Beach, MO. Call 314-398-5014. Oct 12-15–National Small Farm Conference: Building Partnerships for the 21st Century, St Louis, MO. Call 202-401-4900 or 573- 681-5550. Oct 15–Tree Farm 50th Anniversary Event, Salem, MO. Call 573- 634-3252. Oct 20-23–North American Chapter Assn for Farming Systems Research and Extension (AFSR/E) Biennial Meeting - Sustaining Agriculture in the 21st Century: Thinking “Outside the Box,” Guelph, Ontario, CA, http://www.oac.uoguelph.ca/FSR/ Dec 12-14–MO Governor's Conference on Agriculture, Osage Beach, MO. Call 573-751-5622. "University Outreach and Extension does not discriminate on the basis of race, color, national origin, sex, religion, age, disability or status as a Vietnam-era veteran in employment or programs."