Ag Opportunities SMALL FARMS * NEW FAMILY FARMS AGRICULTURAL ALTERNTAIVES Nov-Dec 2002 Vol 13, No 3 Thinking of a Commercial Dairy? Think Again! By Debi Kelly and Robin Kristin Nichols The Missouri Alternatives Center answers a plethora of questions regarding alternative farming. One question we often hear is, "I have a lot of dairy goats and I want to sell the milk. How do I do that?" Proverbial Caprines is a herd of Nubian dairy goats and the name under which Rhonda and Robin Nichols of Ashland, MO market their goat milk soaps. While Proverbial Caprines officially began in 1998, goats have been in the family for years. Rhonda and generations of Bennetts before her grew up on the land adjoining the Nichols’ property where her father has raised angora goats for more than 40 years. In 1993, Rhonda and Robin acquired their first Nubian dairy goat, Anne. In an effort to make more use of the milk than for just feeding kids and to recoup some of the costs of goat ownership, they began using the surplus milk to make soap. They used the soap themselves and also sold it at local craft fairs. The herd grew, and, finding that they didn't sell enough soap to use all the excess milk, they decided to start looking at other product options for the milk. In 2000, they began making cheese. They found several recipes that worked well for them. People enjoyed the cheeses samples so much, that the pair began to seriously look for a way that they would be able to sell the cheese in local stores. According to CreamLine, the demand for unprocessed milk is increasing. The American Small Farm reports that the University of Nebraska’s Food Processing Center’s studies have found that specialty cheeses may be the path to profitability for small farmers. Americans are consuming more cheese, more than doubling per person consumption in the last thirty years, and the trend is expected to continue. The "Governing The Manufacture, Sale and Distribution of Foods" book from the local county health department, also known as the "tan" book, states that any food that is prepared and sold needs to be prepared in a licensed kitchen facility. A licensed kitchen facility is a kitchen where food is prepared and sold to the general public, such as a restaurant, school, and some churches. Local county health departments inspect these kitchens to be sure the entire kitchen is following the rules and regulations. A home kitchen will not work. If Proverbial Caprines could rent a licensed kitchen facility their cheese could be sold wherever a market was available. However, if they used a licensed kitchen, the milk would need to travel from the farm to the licensed kitchen in a certified truck and be pasteurized in a certified pasteurizer. That is not very realistic. A complete on-location dairy is more practical. Surprisingly, the first thing that you need to consider in regards to a commercial dairy, is not a building plan or lots of goats or cows. The first thing you need to be concerned about is water. All the water used in a dairy needs to pass testing. If you have access to a public water supply, the water is inspected at the plant, so you can use water coming from the city lines. In most areas, properties that have room to raise animals and access to city water are not easy to find. Wells must have above-ground access with a well house built to specific guidelines and requirements. Water will then need to be tested for suspended matter, micro-organisms, organic matter, color, taste, odor, and dissolved matter. Next is sewage. Milk house and toilet wastes must be disposed of in a manner that will not pollute the soil surface, contaminate the water supply, or be exposed to insects. A lagoon must be fenced to keep animals out. So, if your water meets the requirements, whether you are on city lines, or you have an approved well, and your sewage elimination also meets regulations, where do you go from there? 1. Decide on a location for you milk house, taking into consideration where your water source is and where your waste water goes. Ask the Missouri Milk board to send you "Manufacturing Grade Milk Laws and Regulations" and the "1984 Revised Policies Governing Construction and Operation of a Manufacturing Grade Goat Dairy Farm Facilities in MO". These publications will help you to select a site and to draw up building plans for your milk house. The site and plans then need to be submitted to the Milk Board for consideration. 2. When you speak to the Milk Board, you also need to have the answers to questions they may ask - How large will your business be? This will depend on how much cheese or milk you wish to produce. Will you have employees? Will you need help to produce the amount of product you are thinking about? Will there be areas open to the public? Public access could provide you with a way to incorporate tours of your farm. How will your product be packaged? Are you going to use glass, plastic, or paper? Your package will also need a label. Labeling is literally "a display of written, printed, or graphic matter on the immediate container or article". It will be two part, a display label that lists the identity and quantity of the item and an information label that lists the ingredients and contains the nutritional label. If your sales are less than $50,000 per year, you are exempt from nutritional labeling. A lot of your answers are going to depend on your market. Talk to restaurants, grocery stores, and farmer’s markets. This will help you to determine your market and set your expected production, need for employees, etc. 3. After your building site and plans have been approved, and you start construction, you need to stay in touch with your inspectors. You want to develop a good relationship with your inspectors. They are there to help, not to hinder. This will also help you to catch any hiccups now, not when you are ready to begin production. 4. When your building is ready for the final inspection, make sure everything is clean. Ensure all walls are painted, drains are free of debris, and all outlets, lights, and equipment are working properly. 5. Processing plants will be inspected at least every two years, but inspections can occur at any time. Keep your dairy clean. Keep things put away where they belong. 6. There is financial aid available to help with the cost of starting a dairy. You may be able to get a grant or a loan. The Missouri Department of Agriculture has an alternative loan program that could be very helpful. Here in Missouri there are numerous successful dairy processing operations - the Muno’s Goatsbeard Dairy in Harrisburg, the Christman’s Stoney Acres Sheep Dairy in Competition, and the Buchmayer’s Green Hill’s Harvest Organic Dairy in Purdin, to name a few. All these dairies went through this process and are now able to sell their product on the open market. Missouri Alternative Loan Program The MO Dept of Ag offers direct loans through the Agriculture Development Fund to finance the production, processing and marketing needs of an alternative agricultural enterprise. Criteria: Maximum loan - $20,000 Interest Rate - 7.5% Maximum term of loan - 5 years with semi-annual payments What is an agricultural alternative? An agricultural alternative project is doing something different from what traditional rural operations are currently doing. It may be taking a traditional enterprise and adding a new twist such as butchering your own livestock and selling the meat or milling your own wheat and making baked goods. An alternative for one person is not necessarily an alternative for another person. Look at your area and seek out profitable opportunities. Examples of projects: * Horticulture production (fruits & vegetables) and marketing (portable greenhouses, project-related equipment) * Aquaculture (fish, cages, project-related equipment) * Apiaries (bees, project-related equipment) * Tree farming, shrubs, landscaping plants * Fee hunting areas (birds, cages, registered bird dogs) * Portable greenhouses, irrigation equipment, refrigeration cooling units * Landscaping/lawn care business to include lawn mowers, trimmers, mulchers, leaf blowers, mower trailers, sprayers, etc. * Organic production enterprise (livestock & livestock products, horticulture) * Value added enterprises (processing equipment, packaging) * Farm mechanics projects for high school FFA students and 4-H students. Before beginning an alternative enterprise, check resources, talk to others, look for something in demand, visit markets and observe what is selling, attend conferences/workshops, read, read, read and plan, plan, plan. For more information contact: MO Dept of Ag Market Development Division Agriculture Development Fund Program PO Box 630 Jefferson City, MO 65102 Phone: 573-751-4762 Harvest Connection Links Local Farmers and Chefs It's called Harvest Connection, and it links chefs and area farmers producing fresh fruits, vegetables, cheeses and specialty items. The program is most active in Kansas City but organizers are also working to get the program rolling in Springfield, Joplin, Columbia and Lake of the Ozarks. "This summer we began introducing the program to the Springfield area and it has met with enthusiasm from both farmers and chefs," said Teresa Hoy, Harvest Connection project coordinator, Univ of MO Outreach and Extension. Statewide, 50-plus restaurants, caterers and small markets and 23 producers have signed up for Harvest Connection. There is no signup fee. In the Springfield area there are now five restaurants and five vegetable producers linked through the Harvest Connection program. Each week, Hoy faxes (or e-mails) a list of producers and what they have to sell to participating restaurants, caterers and markets. One goes out weekly and focuses on fruits and vegetables. The second goes out monthly and contains less seasonal items, such as local meat, goat cheese, jellies and wine. Chefs and proprietors can contact producers to place orders and arrange delivery schedules. Harvest Connection is a resource service only. Ordering, delivery and price are all between the buyer and producer. "Our purpose is to open new markets, especially for the smaller farmers. We have producers of the food and buyers of the food, yet they are worlds apart. It's not only connecting the two, but education," Hoy said. One of the biggest problems facing Harvest Connection is demand. The program needs more growers statewide and more farmers willing to grow what chefs are requesting. "One of the problems is communication. The chefs don't know what's produced in Missouri and the farmers don't know what the chefs are looking for," she said. To help improve communication, Harvest Connection hosted a meeting in Jan 2002 between Kansas City chefs and farmers. The chefs arrived with wish lists and the farmers with seed catalogs. It was a success. A similar program is being planned for the Springfield area this fall. Started in Oct 2000 with a goal of promoting MO grown products and helping small farmers find new sales venues, Harvest Connection is the first program of its kind in MO. A similar program has been successful for eight years in New Orleans. The program is funded by the USDA through a grant to the Univ of MO Outreach and Extension. To learn more about Harvest Connection or to be listed on the weekly fax service, call the Univ Outreach and Extension Center in Warrensburg, MO, 877-684-0669. or email Teresa Hoy at hoyt@missouri.edu. Farmers Markets-WIC/Seniors Low-income pregnant women and mothers eat more fresh fruits and vegetables when they are allowed to use WIC coupons to shop at farmers’ markets. That was a conclusion of a survey of Special Supplemental Nutrition Program for Women, Infants and Children (WIC) participants by Univ of CA researchers. WIC coupons are used in addition to food stamps to purchase special foods for pregnant or breast-feeding women enrolled in WIC. The survey was conducted to evaluate the USDA’s WIC Farmers’ Market Nutrition Program, which was established in 1992 to encourage the women and their children to consume a more healthful diet. The survey showed that 85 percent of the California participants ate more fresh fruits and vegetables as a result of the Farmers’ Market Nutrition Program. The program also spurred the first visit to a farmers’ market for 85 percent of the women. Farmers markets continue to be a vital sales outlet for farmers nationwide. Results from the 2000 USDA Farmers Market Study indicate that 19,000 farmers reported selling their produce at farmers markets exclusively. Also, according to the 2000 National Farmers Market Directory, there are more than 2,800 farmers markets operating in the US. Of these markets, 82 percent are self- sustaining, and 52 percent participate in WIC, food stamp, and local and/or state nutrition programs. In addition, 25 percent of the nation’s farmers markets are involved in gleaning programs that distribute food to needy families. USDA is launching the Senior Farmers Market Nutrition Pilot Program to provide fresh food to low-income seniors from farmers markets, roadside stands, and community supported agriculture. Call the USDA’s Farmers Market Hotline at 1-800-384-8704 or visit http://www.ams.usda.gov/farmersmarkets/facts.htm. (Small Farm News, Volume III 2002) Recent Growth Patterns in the US Organic Foods Market By Carolyn Dimitri and Catherine Greene, ERS Agriculture Information Bulletin No. AIB777. 42 pp, Sept 2002 Description: A useful study summarizing economic research on recent growth patterns in the U.S. organic sector, by market category, and a description of the marketing channels for major organic commodity groups. A summary of various research, regulatory, and other ongoing programs on organic agriculture in the USDA. http://www.ers.usda.gov/publications/aib777/aib777.pdf Abstract: Organic farming is one of the fastest growing segments of US agriculture. As consumer interest continues to gather momentum, many US producers, manufacturers, distributors, and retailers are specializing in growing, processing, and marketing an ever-widening array of organic agricultural and food products. This report summarizes growth patterns in the US organic sector in recent years, by market category, and describes various research, regulatory, and other ongoing programs on organic agriculture in the USDA. Summary: Burgeoning consumer interest in organically grown foods has opened new market opportunities for producers and is leading to a transformation in the organic foods industry. Once a niche product sold in a limited number of retail outlets, organic foods are currently sold in a wide variety of venues including farmers markets, natural product supermarkets, conventional supermarkets, and club stores. Since the early 1990s, certified organic acreage has increased as producers strive to meet increasing demand for organic agricultural and food products in the United States. The dramatic growth of the industry spurred Federal policy to facilitate organic product marketing, and is leading to new government activities in research and education on organic farming systems. This report summarizes growth patterns in the US organic sector in recent years, by market category, and traces the marketing channels for major organic commodity groups. The report describes various research, regulatory, and other ongoing programs on organic agriculture in the USDA. * The US organic food industry crossed a threshold in 2000: for the first time, more organic food was purchased in conventional supermarkets than in any other venue. * Growth in retail sales has equaled 20 percent or more annually since 1990. Organic products are now available in nearly 20,000 natural foods stores, and are sold in 73 percent of all conventional grocery stores. * According to the most recent USDA estimates, US certified organic cropland doubled between 1992 and 1997, to 1.3 million acres. * The new USDA standards for organic food, slated to be fully implemented by Oct 2002, are expected to facilitate further growth in the organic foods industry. * Fresh produce is the top-selling organic category, followed by nondairy beverages, breads and grains, packaged foods (frozen and dried prepared foods, baby food, soups, and desserts), and dairy products. During the 1990s, organic dairy was the most rapidly growing segment, with sales up over 500 percent between 1994 and 1999. * Nine USDA agencies have expanded research, regulatory, and other programs on organic agriculture. * The main regulatory program is the creation, implementation, and administration of the USDA organic standard. Other programs include crop insurance for organic farmers, information provision, and promotion of organic exports. * USDA also funds projects for international market development and for natural resource conservation. Funding is also extended to projects assisting adoption of organic practices and exploration of new farming systems, methods, and educational opportunities. * USDA research includes agronomic studies on soil management, biological control of pests and weeds, livestock issues, and post- harvest fruit treatment. Economic research focuses on tracking growth in the organic sector, demand for organic products, and organic farmers' risk management strategies. Chapter Headings US Organic Sector: Marketplace, Production, Consumption The Marketing Chain: From Farm to Market Organic Fresh Fruits and Vegetables-Organic Grains, Oilseeds, and Legumes Processed Organic Foods Organic Dairy Products Organic, Meat, Poultry, and Eggs-Organic Fibers Organic Herbs and Flowers Appendix: USDA Research, Program, and Regulatory Activities on Organic Agriculture References IN THE NEWS The Organic Farming Research Foundation offers research grants of up to $15,000; applicants are invited for consideration in its twice- yearly funding cycle. Funds are offered for organic farming research, dissemination of research results to organic farmers and growers interested in making the transition to organic production and consumer education on organic farming issues. OFRF technical program coordinator Jane Sooby is available to work with farmers and others interested in doing on-farm research and applying for grants. The foundation’s on-farm research guide gives an overview of the research process and is accessible through OFRF’s Web site (www.ofrf.org) under "research program" or can be ordered free of charge by calling OFRF at 831-426-6606. The deadlines for proposal consideration are January 15 for the spring funding cycle and July 15 for the fall funding cycle. Contact Sooby at OFRF, PO Box 440, Santa Cruz, CA 95061 or email research@ofrf.org or jane@ofrf.org To ensure fair and equitable treatment and full access to its services, the USDA will adopt a number of measures intended to strengthen its programs for minority and disadvantaged farmers, "as part of the [agency's] ongoing efforts to address concerns of black farmers." The agency's plan, announced on Sept 6, will establish a new minority loan office within the Farm Service Agency; provide an additional $100 million for an existing operating loan program for minority farmers; and include efforts to expand technical assistance, provide more timely decisions on farm loans, and improve diversity training for employees (Richmond Times-Dispatch, Sept 14). The USDA has faced continuing criticism, including protests and sit- ins at local agency offices earlier this summer, over its handling of a landmark class-action lawsuit won by black farmers in 1999, which acknowledged decades of systematic discrimination against black farmers applying for USDA loans and subsidy programs. "Although hailed as a major civil rights victory, it has since become a major disappointment to many people it was supposed to have helped" (Washington Post, Sept 12). More info is available from the USDA (www.fsa.usda.gov/pas/news/) and the Black Farmers and Agriculturalists Association (www.coax.net/people/lwf/bfaa.htm). The market for organic food is continuing to expand. Fast-rising consumer demand is giving the industry a big push. Organic foods are being sold in a wider variety of venues, supermarkets, food clubs, natural food stores and even farmer’s markets. In fact, more organic foods were sold in conventional stores in 2000 than in any other outlet. . .about 50% of organic food sold that year. New organic food products are also rapidly entering the market. More than 800 new varieties were introduced in the first half of 2000. The top-selling foods: Fresh produce, nondairy beverages, breads, grains, dairy products, and packaged foods. . . baby food, soup. (The Kiplinger Agricultural Letter, Vol 73, No 20) IN PRINT * A Guide to the Common Forage and Weeds of Pastures* a 48 page booklet with management information on 30 forages and 56 weeds. Order from MO Forage and Grasslands Council, 2000 E Broadway #225, Columbia, MO 65201, 573-499-0886, $13.00 * In the Eyes of the Law, Legal Issues Associated with Direct Farm Marketing* $10. A sample of the publication and information about ordering it are available on the publication’s web page at http://www.extension.umn.edu/abstracts/nonweb/abstract.html?item=076 83. Order by calling 800-876-8636. * Methods to Develop Markets to Improve the Profitability of Small Family Farms in Pennsylvania, Maryland, and New Jersey* commissioned by the Rodale Institute, is $19.95 plus $4 shipping/handling from Rodale Institute Bookstore, 611 Siegfriedale Rd, Kutztown, PA 19530, 610-683-6009. * Organic Agriculture Information website* a project of Organic Agricultural Consortium and Scientific Congress on Organic Agricultural Research, developed for public launch in fall 2002, www.organicaginfo.org, or call Kathleen Bielek, OAC; oac@osu.edu, or Brise Tencer, OFRF, 831-426-6606. * Farms Turning Wild* profiles four farms incorporating wildlife and wildlife habitat into their everyday operation. Discusses both the how and why farmers are making room for wildlife, as well as how some of the efforts affect the farms’ bottom lines. The article can be viewed online at http://www.dnr.state.mn.us/volunteer/index.html * Designing Feeding for Natural and Organic Pork Production* available from the Univ of MN Extension Service. To order, call the U of M Distribution Center, 800-876-8636 and ask for item 07736-BU. * Get Paid for Real Conservation* and *Resources of Concern* are available from the Land Stewardship Project at www.landstewardshipproject.org. The Univ of Florida has a website with a section on direct marketing for small farmers at http://smallfarm.ifas.ufl.edu. A full listing of all the reports/research from ISU on their work in organic agriculture is at http://extension.agron.iastate.edu/organicag/rr.html Figure out the best way to fight weeds at MU Weed Science web site, www.psu.missouri.edu/agronx/weeds E-commerce Learning Center for Farm Cooperatives http://www.e- cooperatives.com/ This site, a project of the National Farmers Union, is dedicated to helping farm cooperatives create functioning internet e-commerce businesses and reach directly to consumers in markets all over the globe. The Learning Center can help with the planning and building of a successful online business with its E- Commerce Timeline Learning Model, which takes you through every step of the planning process for an online business. The site also contains extensive links to additional resources. ON THE CALENDAR Nov 14-15-Farmers Cooperatives Conference, St Louis, MO. Call 608- 262-3981, cropp@aae.wisc.edu Nov 17-19-MO Governor’s Conference on Ag, Osage Beach, MO. Call 1- 877-398-3305. Nov 15-16-Future Farms 2002: A Supermarket of Ideas, Norman, OK. Call 918-647-9123, mailbox@kerrcenter.com Nov 22-Agritourism Conference, Sedalia, MO. Call 1-866-466-8283. Nov 30-Deadline for MO Sustainable Ag Demonstration Award Grants due. Call 573-522-8616. Dec 6-7-MO Livestock Symposium, Kirksville, MO. Call 660-665-9866. Dec 7-Rural Life Day 2002, Jefferson City, MO. Call 573-635-1187. Dec 9-11-Acres USA Pre-Conference Workshops-"Improving the Soil and Foliar Foodwebs" and "Soil Fertility Balancing", Indianapolis, IN. Call 800-355-5313. Dec 12-14-Eco-Farming 2002, Annual Acres USA Conference, Indianapolis, IN. Call 800-355-5313. Dec 13-Getting Started with Grapes Workshop, Mountain Grove, MO. Call 417-926-4105, plb711t@smsu.edu. Dec 13-Southeast AgriExpo, Sikeston, MO. Call 573-568-3344. Dec 13-14-MO Sheep Days and Annual Meeting, Columbia, MO. Call 573- 897-2479 or cad_luzon@hotmail.com Jan 3 and 10-Alternative Dairy and Farmstead Cheesemaking, Shipshewanna, IN. Call 574-372-2340, kelly.easterday@ces.purdue.edu Jan 10-11-Great Plains Regional Vegetable Conference, St. Joseph, MO. Call 402-472-1639. Jan 16-17-Greenhouse Food Production Short Course, Toledo, OH. Call 614-249-2424, www.ohiovegetables.org Jan 22-23-IL Specialty Crops Conference, Springfield, IL. Call 309- 557-2107, www.specialty-growers.com Jan 23-Second Heart of America Grazing Conference, Hannibal, MO. Call 417-967-2028. Jan 23-26-Practical Tools and Solutions for Sustaining Family Farms- 12th Annual Southern SAWG Conference, Mobile, AL. Call 404-819- 2122; ryancohen@msn.com; www.attra.org/ssawg. Jan 24-25-Bringing Profit Back to the Farm, Fifth Annual Midwest Value-Added Conference, Eau Claire, WI. Call 715-834-9672; heatheramundson@wi.usda.gov. Jan 27-29-4th Annual Small-Scale Food Processors' Conference, Sarasota Springs, NY. Call 585-394-0864, alisonclarke@mymailstation.com. Jan 28-30-Mid America Fruit Growers Conference, Olathe, KS. Call 573-882-9632, warmundm@missouri.edu Feb 3-10-Annual North American Farmers' Direct Marketing Association Conference, including pre-and post conference tours, workshops, and tradeshow, Charlotte, NC. Call 1-888-884-9270; www.nafdma.com. Feb 8-10-Midwest Grape and Wine Conference, Osage Beach, MO. Call 573-751-6807. Feb 7-8-9th Annual Kansas Sustainable Agriculture Round-up, Manhattan, KS. Call 785- 865-2555; jjost@grapevine.net Feb 15-SPAN Conference Feb 17-19-MO Small Fruit and Vegetable Conference, Springfield, MO. Call 417-926-4105, plb711t@smsu.edu. Feb 22-Tree Farm Conference, Lake Ozark, MO. Call 573-882-4038. Feb 27-Organic University, LaCrosse, WI. Call 715-772-3153. Feb 28-Mar 1-14th Annual Upper Midwest Organic Farming Conference, LaCrosse, WI. Call 715-772-3153; moses@wwt.net