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MOVING BEYOND CONVENTIONAL
                                                   CASH CROPPING
                                                                 AGRONOMY SYSTEMS GUIDE


 Abstract: This publication is written for those looking for a way out of the high risk, long hours, low pay, poor prices,
 and dim future associated with conventional cash crop production. There are viable alternatives to continuing in the
 cash crop business for those who can adjust their thinking. Finding alternatives to commodity crop production is the
 focus of this publication. Certain principles provide insights into ways to move forward.


By Preston Sullivan
NCAT Agriculture Specialist
May 2002

                                              PRINCIPLES OF SUCCESS
     It’s safe to say that if you keep doing what you’ve been doing, you’re going to keep getting what
you’ve been getting. If you are searching for an enterprise that is easy, profitable, and proven, you
will find that many other people are already doing it. To build wealth, do what others cannot or will
not do—produce a product that is different and difficult to produce (1). Using these two criteria
keeps competition to a minimum.
     Taking small initial steps is one approach. Adding an alternative, more profitable crop to a corn-
soybean rotation or a wheat-barley rotation is a step toward disconnecting from the cash-grain sys-
tem, just as farm families who cooperatively market their products directly to consumers as foods,
rather than as commodities, are disconnecting from the system. Farmers can also benefit by growing
multi-purpose specialty crops that will give them lots of flexibility in both production and market-
ing, thereby reducing their risk. For example, you can use dry peas for feed grain, hay, green manure,
or seed; lentils for food, forage, or green manure. If there’s a drought or the field is too weedy, graze
it or turn the crop to green manure. If it’s a wet year and a clean field, harvest the grain crop.




              Table of Contents
Principles of Success ................................. 1
Examples of Successful Transitions
                                                                                                                       ©www.arttoday.com 2002




from Cash Cropping ................................... 2
Conclusion ................................................. 5
References ................................................. 6
Resources .................................................. 6




ATTRA is the national sustainable agriculture information service operated by the National Center
for Appropriate Technology under a grant from the Rural Business-Cooperative Service, U.S.
Department of Agriculture. These organizations do not recommend or endorse products,
companies, or individuals. ATTRA is headquartered in Fayetteville, Arkansas (P.O. Box 3657,
Fayetteville, AR 72702), with offices in Butte, Montana and Davis, California.
After receiving training in Holistic Manage-
   Other ATTRA Publications of Interest                   ment™ (3), Robert Moore and his son Taylor took
 Evaluating a Rural Enterprise                            a path to a brighter future with less personal
 Direct Marketing                                         stress and lower overhead cost than when they
 Alternative Agronomic Crops                              were row croppers. For years they had battled
 Marketing Organic Grains                                 Johnson grass, bermuda grass, and crab grass in
 Green Markets for Farm Products                          their cotton fields. Now these grasses—and oth-
 Ecolabeling: Marketing Sustainable                       ers such as Dallis grass and bluestem—are their
   Agriculture                                            allies. Moore says that they are working with
 Entertainment Farming and Agri-Tourism                   nature by letting the grasses that want to be here
 Sustainable Agriculture Organizations and                return. Their cattle love these forage grasses.
   Publications                                           With a wide variety of grasses available, they can
 Making the Transition to Sustainable Farming             graze from mid-February to mid-November.
 Overview: Adding Value to Farm Products                  After giving up cropping, they increased their
 Keys to Success in Value-Added Agriculture               cow herd from 200 animals to 600. Their 2,000
                                                          acres are divided into 50-acre paddocks, with
Here are a few more principles of success:                about 200 head in each paddock at various times.
1) Produce products that sell at your price,              With their cropping enterprise they had 20 em-
   rather than commodities that someone else              ployees working full time. Now the father and
   sets the price for.                                    son work together with one full-time employee.
2) Buy wholesale and sell retail (just the oppo-          Before cattle, they worried about crop success
   site of cash cropping).                                and prices and were often relieved just to break
3) Stack enterprises together that complement             even. Now they can live off what they make.
   one another to reduce overhead costs.                  Taylor says, “We’re definitely happier now and
4) Pool resources with partners through col-              have less stress.” ATTRA can provide more than
   laborative ventures.                                   a dozen farmer-ready publications that go into
                                                          detail about grass-farming enterprises and alter-
   EXAMPLES OF SUCCESSFUL                                 native marketing of animal products.
TRANSITIONS FROM CASH CROPPING                                    FROM TOBACCO TO SHRIMP
    Below are several examples of people who                  Bill Rich switched from burley tobacco to
have made the transition out of conventional              freshwater shrimp (4). He dug 1-acre ponds at a
cash grain farming and into alternative enter-            cost of $5,000 to $6,500 and harvests about 1,000
prises. These people utilized some of the prin-           pounds of shrimp each season. The shrimp are
ciples mentioned above to increase their profit-          stocked June 1 and harvested September 28. Free-
ability. Please realize that not all of these enter-      dom Freshwater Shrimp Company of Byrds-
prises are ones that everyone can do. That fact           town, Tennessee provides the juvenile shrimp.
alone makes them more profitable. Consider                Bill and other growers have the option to sell
what unique talents you have that can be con-             their shrimp back to the company or market them
verted into a profitable enterprise. All new en-                                       on their own. Since
terprises need to be thoroughly evaluated before                                       shrimp are in high
proceeding. Contact ATTRA for our publication                                          demand anyway,
Evaluating a Rural Enterprise.                                                         you don’t have to
                                                                                       build a market, says
  FROM BATTLING GRASS TO GRAZING                                                       Doug Elder, the
    For several generations the Moore family in                                        owner of Freedom
Navasota, Texas, raised corn, milo, and cotton                                         Freshwater Shrimp.
(2). After finally having enough of rising pro-                                        Profitability on an
duction costs, persistent drought, and low com-                                        acre of shrimp
modity prices, they decided to break the family                                        should be in the
tradition and switch from row crops to cattle.            $1,200 to $2,500 range. Depending on prices of

PAGE 2                                                 //MOVING BEYOND CONVENTIONAL CASH CROPPING
both, an acre of shrimp should replace the profit          BIRDS, BIRDFEED, AND BIO-FUEL
from an acre of burley tobacco. Of course, as with
                                                          Dave Pollard of Mantua, Ohio grows wild
any new enterprise, additional labor and other
                                                      bird feed grains (sunflower, milo, and millet) and
costs need to be evaluated before proceeding. For
                                                      markets them all directly from his farm at 20¢
more information, request the ATTRA publica-
                                                      per pound. In 1998 he started raising free-range
tion Evaluating an Aquaculture Enterprise.
                                                      chickens. By 2000 his annual production was 650
       PUMPKINS, HAY RIDES, AND                       birds, with standing orders for 800 more for the
            SCHOOL TOURS                              next year. Currently he is trying “sundiesel”
                                                      made from sunflower oil he produces on his
    When dairy farms in Tennessee were suffer-
                                                      farm. Using a simple process, he extracts 100
ing from low milk prices, Albert and Celeste
                                                      gallons of oil (valued for fuel at $1.50 per gallon)
Blackburn made some adjustments to their
                                                      from each acre of sunflowers. From that extrac-
Jefferson City, Tennessee dairy operation. Lo-
                                                      tion he also ends up with 1,250 pounds of 28%
cated near a large city on an interstate highway,
                                                      protein meal that he feeds to his free-range chick-
the Blackburns saw an opportunity to entertain
                                                      ens. With his chickens consuming 3 pounds of
school kids during the week and adults on week-
                                                      feed per pound of marketable poultry, and sell-
ends. They turned their old gristmill into a gift
                                                      ing for $2.00 per pound, Pollard estimates an in-
shop and grew pumpkins for the school kids. In
                                                      come of $950 from one acre of sunflowers. That
the first year they attracted 1,100 students, each
                                                      works out to 400 pounds of chickens that eat the
                                 paying $6 to milk
                                                      1,250 pounds of meal, plus $150 from the oil sales
                                 a cow, ride a hay
                                                      (7). Request the two ATTRA publications Alter-
                                 wagon, and pick
                                                      native Agronomic Crops and Sustainable Poultry:
                                 out a pumpkin.
                                                      Production Overview for more information. The
                                 (5). ATTRA has a
                                                      Thomas Jefferson Agriculture Institute listed in
                                 publication called
                                                      the References section of this publication also has
                                 Entertainment
                                                      information on alternative crops. For more in-
                                 Farming and Agri-
                                                      formation on biodiesel, call ATTRA.
                                 Tourism available
                                 by request.                     PECANS, BUFFALO, AND
                                                                   GAMAGRASS SEED
           A Farm Shop Enterprise                         Dan Shepherd and his father Jerrell changed
                                                      their farming focus from commodity grains to
     Terry Joe Payne of Owensboro, Ken-               pecans, buffalo, and gamagrass seed when they
     tucky uses his farm shop and tools to            realized they had no control over wholesale grain
     build large, heavy-duty barbecue pits.           prices (8). After switching, the Chiftonhill, Mis-
     He makes several models, some on                 souri, father-and-son team captured niche mar-
     legs and others on wheels to be pulled           kets they formerly never had access to when sell-
     behind a vehicle. Prices range from              ing only commodity grains.
     $1,800 to $6,000. Payne’s barbecue                   The family started farming corn, beans, and
     pit enterprise evolved from his cater-           wheat on 1,900 acres in the 1960s. Dan’s late fa-
     ing business. Metal for the pits is              ther came to realize that they would never get
     formed from 12-gauge steel, and the              ahead economically doing what others were do-
     rest of the fabrication and assembly             ing, but they could increase their income by do-
     work is done in his shop. Most of his            ing what others wouldn’t do. The gamagrass
     sales have been local and all his ad-            seed operation consumes about 80% of Dan’s
     vertising word-of-mouth or from people           time, with the other two new enterprises—pe-
     reading his nameplate attached to one            cans and buffalo—taking up the remainder.
     of the units. So far, he’s not needed                 Dan is a firm believer that to succeed in al-
     to pay to advertise (6).                         ternative agriculture you’ve got to communicate
                                                      with your customers. Farmers who are focused
                                                      on production must become comfortable with

           //MOVING BEYOND CONVENTIONAL CASH CROPPING                                          PAGE 3
floor was seeded with bluegrass. Though the
                                                       bluegrass does not produce a high tonnage of
                                                       forage, what it does produce is readily consumed
                                                       by their buffalo herd. They started their herd in
                                                       1969 and rotate it through the gamagrass pas-
                                                       tures using management-intensive grazing.
                                                       During the summer, the herd is moved about
                                                       every four days.
                                                           Their gamagrass seed operation nets about
                                                       $700 per acre on 400 acres. In 2000 they netted
                                                       around $300 per acre from the pecan operation,
                                                       but they expect that production to at least triple
                                                       in the coming years. Through their store they
                                                       sold 70,000 ears of sweet corn at 10¢ each, but
                                                       even at that price they net about $1,000 on 15
                                                       acres. While not being a big moneymaker, the
                                                       sweet corn does attract lots of customers who buy
                                                       other products as well.
                                                           The Shepherds feel that everything fits to-
marketing. The Shepherds market their buffalo          gether, with the various enterprises spreading
products—including breeding stock, meat, hides,        out the workload evenly. The family helps spon-
and horns—through their on-farm store, where           sor “Buffalo Day,” when many area residents
they also sell pecans, sweet corn, pumpkins,           gather to eat buffalo burgers donated by the fam-
peaches, jellies, and other products, including        ily. The family has time to participate in their
nuts they buy from out of state. Dan’s wife, Jan,      local Rotary Club and have hosted young people
runs the store and manages the books. Dan over-        from Russia, Thailand, Belgium, and France.
sees the farm operation and does all the buying.           Dan offers some tips for making the transi-
                                                       tion from commodity crops. First, don’t look to
    Contact ATTRA for our publications on              alternative agriculture as a bailout; think of get-
    Sustainable Pecan Production and Bison             ting in or making the change to the system in
    Production.                                        good times, not bad (8). Keep in mind:
                                                       • The products of alternative agriculture re-
    The focal point of the Shepherds’operation             quire different markets.
is gamagrass. They discovered gamagrass while          • The average learning curve for anything new
looking for a forage for their buffalo herd. With          is up to eight years.
help from USDA researchers, they learned to            • Given all the risk, it’s a lot easier to sit back
grow and harvest seed from the grass, thus cre-            and say it won’t work. Making change is not
ating another marketable product. Seed produc-             easy; if it were, everybody would be doing
tion is particularly tricky because the seed does          it.
not mature evenly and drops off the stalk when               RAISING TRADITIONAL CROPS
mature. The seed must also go through a cool-
down period before it will germinate. Harvest-
                                                                    ORGANICALLY
ing is very tricky, and the harvested seed is stored       Carmen Fernholz of Madison, Minnesota
wet at just above freezing for six to eight weeks      made the switch to organic farming when faced
to meet the chilling requirements for germina-         with limited choices for staying profitable in his
tion.                                                  commodity crop operation. He now grows or-
    Once their pecan orchard was established, the      ganic barley, oats, wheat, flax, corn, soybeans,
Shepherds continued to grow commodity crops            and alfalfa and raises 800 to 1,200 finished hogs
in the alleys between the young trees. As the          each year. After more than 20 years of experi-
trees matured and began producing nuts, the row        menting and learning about organic farming, he
crops were crowded out. After that, the orchard        got his farm certified in 1994. He markets his

PAGE 4                                             //MOVING BEYOND CONVENTIONAL CASH CROPPING
own crops and animals in order to keep his rela-     the environment and cutting costs. He says ev-
tively small operation competitive with larger       ery year is different, and what worked one year
farms. He also ensures payment for his organic       may not work the next. He has less capital out-
crops through a unique trust account with his        lay and fewer economic risks as a result of switch-
co-op. His wife Sally works a full-time job off      ing to organic farming. However, he also suf-
the farm.                                            fered some temporary yield reductions as he pro-
                                                     gressed up the learning curve.
 ATTRA has several publications on organic
 production, certification, and marketing.                           CONCLUSION
                                                        Starting a new enterprise boils down to ask-
    Fernholz spreads his workload through the        ing a series of good questions. Among these
season by dividing the farm into quarters, each      questions are:
with a different crop in the rotation. He hires
some labor each year to pick stones and do hand      • Do I have the resources to do this?
weeding, but he still manages to do most of the      • Do I really want to do this?
farm work himself. His primary labor expense         • Do I have the experience and information to
is custom harvesting the alfalfa. He, his brother,     do this?
and nephew work together on the feeder-to-fin-       • How much profit can I make?
ish hogs. (His brother owns and manages the          • How will I market the products?
breeding and farrowing operation.) The hogs are
                                                         Most of the available enterprise planning
sold on the conventional market through a buy-
                                                     guides ask entrepreneurs to first assess their per-
ing station that he operates near his home. Be-
                                                     sonal and family objectives. They stress the im-
tween 1997 and 2000, the station served as many
                                                     portance of having some sort of business plan,
as 50 farmers in Fernholz’s area (9). He works
                                                     financial plan, and marketing plan before pro-
with a National Farmers Organization office in
                                                     ceeding. Determining the profit potential for the
Ames, Iowa to find buyers.
                                                     enterprise is essential before spending more time
                                                     or money developing the means of production.
 For information on raising hogs, request the        Details of planning a new rural enterprise are
 ATTRA publications Sustainable Hog                  available from ATTRA in our publication entitled
 Production Overview and Considerations in           Evaluating a Rural Enterprise.
 Organic Hog Production.                                 In all the case studies presented here, you can
                                                     find examples in action of the following prin-
    Fernholz’s organic soybeans bring around         ciples:
$16.50 per bushel. (Request the ATTRA publica-
tion Organic Soybean Production for more infor-      • Do what others cannot or will not do
mation.) He has not found a consistent market        • Choose alternative enterprises
for the other grain crops. To avoid loss or non-     • Sell directly to end users to reduce the num-
payment from smaller organic buyers who may             ber of intermediaries and to keep more dol-
renege on contracts, his farmer-                        lars in your own pocket
marketing cooperative features a                                    • Stack enterprises
special grower-supported trust                                      • Differentiate your product as
fund used to pay farmers for                                           in some way special —this
breach of contract. His flax crop,                                     adds value
raised for human consumption,                                       • Find market niches
currently sells for $1 per pound                                    • Cultivate good relationships
($50 to $60 per bushel).                                               with buyers
    Fernholz tells others consid-                                   • Be consistent in quality and
ering the transition to organic to                                     delivery
go into it not for the market but                                   • Consider cooperative market-
for the philosophy of benefiting
                                                                       ing or processing

           //MOVING BEYOND CONVENTIONAL CASH CROPPING                                        PAGE 5
• Analyze your operation for ways to reduce                            RESOURCES
     costs
                                                     Thomas Jefferson Agricultural Institute
    Once you have embraced these principles,
                                                     601 West Nifong Blvd. Suite 1D
opportunities to employ your current resources
                                                     Columbia, MO 65203
in different ways become more apparent. From
                                                     573-449-3518
there, the path toward a transition will begin to
                                                     E-mail: info@jeffersoninstitute.org
take shape. Even though change is never easy, it
                                                     http://www.jeffersoninstitute.org/
can be done. Take a fresh look at your people,
                                                         The Thomas Jefferson Agricultural Institute is a
land, and other resources for market potential.
                                                         non-profit agricultural education and research
If possible, visit other families who have made
                                                         center working in support of family farmers.
significant changes for the better in their opera-
                                                         With a focus on crop diversification, the
tions. For additional ideas, see the following re-
                                                         Jefferson Institute provides farmers with
source list.
                                                         information on how to grow and market alter-
                REFERENCES                               native crops. Among the crops they are work-
                                                         ing with are: canola, buckwheat, amaranth, flax,
1)    Nation, Allan. 2001. Allan’s Observa-              sesame, sunflowers, millet, and alternative
      tions. Stockman Grassfarmer. February.             legumes. They have a number of publications
      p. 16-17, 20.                                      on growing and marketing alternative crops,
2)    Leake, Linda. 2001. Flower Children.               several multi-state projects evaluating alterna-
      Hay and Forage Grower, January, p. 19-             tive crops, and an e-mail bulletin on upcoming
      20.                                                events and developments in new crops.

3)    Allan Savory Center for Holistic               Sustainable Agriculture Network (SAN)
      Management                                     National Agricultural Library, Room 304
      1010 Tijeras, NW                               10301 Baltimore
      Albuquerque, NM 87102                          Beltsville, MD 20705
      505-842-5252                                   301-504-6425
      http://www.holisticmanagement.org              E-mail: san@nal.usda.gov
                                                     http://www.sare.org
4)    Anon. 2000. Jumbo shrimp. Progressive              The SAN website contains a wealth of informa-
      Farmer. December. p. 34.                           tion on marketing strategies, how to conduct
5)    Anon. 2000. Welcome to the pumpkin                 on-farm research, alternative crops, and much
      patch. Progressive Farmer. December. p.            more. Numerous bulletins and reports are
      34.                                                available on-line. They sponsor a lot of on-farm
                                                         research.
6)    Anon. 2000. Barbeque Pits—A farm shop
      enterprise. Progressive Farmer. Decem-         Kansas Rural Center, Inc.
      ber. p. 34.                                    304 Pratt Street, PO Box 133
                                                     Whiting, KS 66552
7)    Pollard, Dave. 2001. Sundiesel and             785-873-3431
      chickens. The Stockman Grassfarmer,            http://www.kansasruralcenter.org
      letters to the editor. March. p. 3.                Kansas Rural Center is a private nonprofit
8)    SARE. 2001. The New American Farmer:               organization that promotes the long-term health
      Dan and Jan Shepherd. Farmer profile.              of the land and its people through education,
      <http://www.sare.org/newfarmer/                    research, and advocacy. The Rural Center
      shepherd.htm>.                                     cultivates grassroots support for public policies
                                                         that encourage family farming and stewardship
9)    SARE. 2001. The New American Farmer:
                                                         of soil and water, and is committed to economi-
      Carmen Fernholz. Farmer profile.
                                                         cally viable, environmentally sound, and
      <http://www.sare.org/newfarmer/
                                                         socially sustainable rural culture. Numerous
      fernholz.htm>.
                                                         publications and a newsletter are available.

PAGE 6                                           //MOVING BEYOND CONVENTIONAL CASH CROPPING
Practical Farmers of Iowa (PFI)                          Northern Plains Sustainable Agriculture Society
2035 190th Street                                        9824 79th Street SE
Boone, IA 50036-7423                                     Fullerton, ND 58441-9725
515-294-8512                                             701-883-4304
E-mail: dnexner@iastate.edu                              E-mail: tpnpsas@drservices.com
http://www.pfi.iastate.edu                               http://www.npsas.org
    PFI sponsors statewide field days, publishes the         The Northern Plains Sustainable Agriculture
    newsletter The Practical Farmer, is involved             Society promotes ecologically and socially
    with numerous on-farm research projects, has a           sound food production and distribution systems
    lending library, provides bulletins and videos,          in the Northern Plains. They sponsor publica-
    and sponsors workshops and seminars. PFI                 tions and farmer events, including a summer
    currently has 30 research cooperators. The PFI           symposium and farm tour and a two-day
    website is quite comprehensive and has numer-            annual winter conference.
    ous useful resources.
                                                         Nebraska Sustainable Agriculture Society
                                                         P.O. Box 736
Land Stewardship Project                                 Hartington, NE 68739
2200 4th Street                                          402-254-2289
White Bear Lake, MN 55110                                E-mail: jillw@hartel.net
651-653-0618                                             http://www.netins.net/showcase/nsas
or                                                           The Society promotes an agriculture that builds
180 E. Main St., P.O. Box 130                                healthy land, people, communities, and quality
Lewiston, MN 55952                                           of life, for present and future generations. They
507-523-3366                                                 sponsor annual meetings, farm tours, field days,
or                                                           and workshops. They have a speakers’ bureau
103 W. Nichols                                               and a team of mentors who provide one-on-one
Montevideo, MN 56265                                         assistance with the transition to sustainable
320-269-2105                                                 farming practices. They produce a quarterly
http://www.landstewardshipproject.org                        newsletter of agriculture practices and philoso-
    The Land Stewardship Project (LSP) is a                  phy.
    private nonprofit organization whose primary
                                                         AERO
    mission is to foster an ethic of stewardship for
                                                         Alternative Energy Resources Organization
    farmland, to promote sustainable agriculture,
                                                         (AERO)
    and to develop sustainable communities. Their
                                                         432 North Last Chance Gulch
    membership consists of farmers as well as rural
                                                         Helena, MT 59601
    and urban residents working to secure a health-
                                                         406-443-7272
    ful food supply; preserve soil, water, and
                                                         Email: aero@aeromt.org
    wildlife; support diversified, profitable, family-
                                                             AERO fosters the development of sustainable
    sized farms; organize communities for positive
                                                             communities in rural states of the Rocky
    change; hold corporations and governments
                                                             Mountain West and Northern Plains. They
    accountable; and create a sustainable vision for
                                                             promote the use of renewable energy, conserva-
    our food and agriculture system. They have
                                                             tion, sustainable agriculture, and community
    four offices in Minnesota. Membership in-
                                                             self-reliance. Their sustainable agriculture
    cludes a subscription to the Land Stewardship
                                                             efforts help farmers and ranchers find ways to
    Letter, workshops, and opportunities to connect
                                                             sustain the productive capacity of their farms
    with others who share these values.
                                                             while maintaining their rural communities.
                                                             They offer sustainable farming information,
                                                             financial and technical assistance, farm tours,
                                                             and educational events.




            //MOVING BEYOND CONVENTIONAL CASH CROPPING                                            PAGE 7
AgVentures Magazine
11950 W. Highland Ave.
Blackwell, OK 74631
580-628-4551
Fax: 580-628-2011
E-mail: AgVentures@aol.com
http://agventures.com
    Published bi-monthly for an annual subscrip-
    tion of $21, the magazine provides 101 ideas per
    year on how to profit from your land. Each
    issue features articles on livestock, crops,
    aquaculture, niche markets, and state assis-
    tance.



By Preston Sullivan
NCAT Agriculture Specialist

Edited by Paul Williams and
Richard Earles
Formatted by Gail M. Hardy

May 2002




                             The electronic version of Moving Beyond Conventional
                             Cash Cropping is located at:
                             HTML
                             http://www.attra.ncat.org/attra-pub/cashcropping.html
                             PDF
                             http://www.attra.ncat.org/attra-pub/PDF/cashcropping.pdf




IP201

PAGE 8                                                 //MOVING BEYOND CONVENTIONAL CASH CROPPING

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Moving Beyond Conventional Cash Cropping

  • 1. MOVING BEYOND CONVENTIONAL CASH CROPPING AGRONOMY SYSTEMS GUIDE Abstract: This publication is written for those looking for a way out of the high risk, long hours, low pay, poor prices, and dim future associated with conventional cash crop production. There are viable alternatives to continuing in the cash crop business for those who can adjust their thinking. Finding alternatives to commodity crop production is the focus of this publication. Certain principles provide insights into ways to move forward. By Preston Sullivan NCAT Agriculture Specialist May 2002 PRINCIPLES OF SUCCESS It’s safe to say that if you keep doing what you’ve been doing, you’re going to keep getting what you’ve been getting. If you are searching for an enterprise that is easy, profitable, and proven, you will find that many other people are already doing it. To build wealth, do what others cannot or will not do—produce a product that is different and difficult to produce (1). Using these two criteria keeps competition to a minimum. Taking small initial steps is one approach. Adding an alternative, more profitable crop to a corn- soybean rotation or a wheat-barley rotation is a step toward disconnecting from the cash-grain sys- tem, just as farm families who cooperatively market their products directly to consumers as foods, rather than as commodities, are disconnecting from the system. Farmers can also benefit by growing multi-purpose specialty crops that will give them lots of flexibility in both production and market- ing, thereby reducing their risk. For example, you can use dry peas for feed grain, hay, green manure, or seed; lentils for food, forage, or green manure. If there’s a drought or the field is too weedy, graze it or turn the crop to green manure. If it’s a wet year and a clean field, harvest the grain crop. Table of Contents Principles of Success ................................. 1 Examples of Successful Transitions ©www.arttoday.com 2002 from Cash Cropping ................................... 2 Conclusion ................................................. 5 References ................................................. 6 Resources .................................................. 6 ATTRA is the national sustainable agriculture information service operated by the National Center for Appropriate Technology under a grant from the Rural Business-Cooperative Service, U.S. Department of Agriculture. These organizations do not recommend or endorse products, companies, or individuals. ATTRA is headquartered in Fayetteville, Arkansas (P.O. Box 3657, Fayetteville, AR 72702), with offices in Butte, Montana and Davis, California.
  • 2. After receiving training in Holistic Manage- Other ATTRA Publications of Interest ment™ (3), Robert Moore and his son Taylor took Evaluating a Rural Enterprise a path to a brighter future with less personal Direct Marketing stress and lower overhead cost than when they Alternative Agronomic Crops were row croppers. For years they had battled Marketing Organic Grains Johnson grass, bermuda grass, and crab grass in Green Markets for Farm Products their cotton fields. Now these grasses—and oth- Ecolabeling: Marketing Sustainable ers such as Dallis grass and bluestem—are their Agriculture allies. Moore says that they are working with Entertainment Farming and Agri-Tourism nature by letting the grasses that want to be here Sustainable Agriculture Organizations and return. Their cattle love these forage grasses. Publications With a wide variety of grasses available, they can Making the Transition to Sustainable Farming graze from mid-February to mid-November. Overview: Adding Value to Farm Products After giving up cropping, they increased their Keys to Success in Value-Added Agriculture cow herd from 200 animals to 600. Their 2,000 acres are divided into 50-acre paddocks, with Here are a few more principles of success: about 200 head in each paddock at various times. 1) Produce products that sell at your price, With their cropping enterprise they had 20 em- rather than commodities that someone else ployees working full time. Now the father and sets the price for. son work together with one full-time employee. 2) Buy wholesale and sell retail (just the oppo- Before cattle, they worried about crop success site of cash cropping). and prices and were often relieved just to break 3) Stack enterprises together that complement even. Now they can live off what they make. one another to reduce overhead costs. Taylor says, “We’re definitely happier now and 4) Pool resources with partners through col- have less stress.” ATTRA can provide more than laborative ventures. a dozen farmer-ready publications that go into detail about grass-farming enterprises and alter- EXAMPLES OF SUCCESSFUL native marketing of animal products. TRANSITIONS FROM CASH CROPPING FROM TOBACCO TO SHRIMP Below are several examples of people who Bill Rich switched from burley tobacco to have made the transition out of conventional freshwater shrimp (4). He dug 1-acre ponds at a cash grain farming and into alternative enter- cost of $5,000 to $6,500 and harvests about 1,000 prises. These people utilized some of the prin- pounds of shrimp each season. The shrimp are ciples mentioned above to increase their profit- stocked June 1 and harvested September 28. Free- ability. Please realize that not all of these enter- dom Freshwater Shrimp Company of Byrds- prises are ones that everyone can do. That fact town, Tennessee provides the juvenile shrimp. alone makes them more profitable. Consider Bill and other growers have the option to sell what unique talents you have that can be con- their shrimp back to the company or market them verted into a profitable enterprise. All new en- on their own. Since terprises need to be thoroughly evaluated before shrimp are in high proceeding. Contact ATTRA for our publication demand anyway, Evaluating a Rural Enterprise. you don’t have to build a market, says FROM BATTLING GRASS TO GRAZING Doug Elder, the For several generations the Moore family in owner of Freedom Navasota, Texas, raised corn, milo, and cotton Freshwater Shrimp. (2). After finally having enough of rising pro- Profitability on an duction costs, persistent drought, and low com- acre of shrimp modity prices, they decided to break the family should be in the tradition and switch from row crops to cattle. $1,200 to $2,500 range. Depending on prices of PAGE 2 //MOVING BEYOND CONVENTIONAL CASH CROPPING
  • 3. both, an acre of shrimp should replace the profit BIRDS, BIRDFEED, AND BIO-FUEL from an acre of burley tobacco. Of course, as with Dave Pollard of Mantua, Ohio grows wild any new enterprise, additional labor and other bird feed grains (sunflower, milo, and millet) and costs need to be evaluated before proceeding. For markets them all directly from his farm at 20¢ more information, request the ATTRA publica- per pound. In 1998 he started raising free-range tion Evaluating an Aquaculture Enterprise. chickens. By 2000 his annual production was 650 PUMPKINS, HAY RIDES, AND birds, with standing orders for 800 more for the SCHOOL TOURS next year. Currently he is trying “sundiesel” made from sunflower oil he produces on his When dairy farms in Tennessee were suffer- farm. Using a simple process, he extracts 100 ing from low milk prices, Albert and Celeste gallons of oil (valued for fuel at $1.50 per gallon) Blackburn made some adjustments to their from each acre of sunflowers. From that extrac- Jefferson City, Tennessee dairy operation. Lo- tion he also ends up with 1,250 pounds of 28% cated near a large city on an interstate highway, protein meal that he feeds to his free-range chick- the Blackburns saw an opportunity to entertain ens. With his chickens consuming 3 pounds of school kids during the week and adults on week- feed per pound of marketable poultry, and sell- ends. They turned their old gristmill into a gift ing for $2.00 per pound, Pollard estimates an in- shop and grew pumpkins for the school kids. In come of $950 from one acre of sunflowers. That the first year they attracted 1,100 students, each works out to 400 pounds of chickens that eat the paying $6 to milk 1,250 pounds of meal, plus $150 from the oil sales a cow, ride a hay (7). Request the two ATTRA publications Alter- wagon, and pick native Agronomic Crops and Sustainable Poultry: out a pumpkin. Production Overview for more information. The (5). ATTRA has a Thomas Jefferson Agriculture Institute listed in publication called the References section of this publication also has Entertainment information on alternative crops. For more in- Farming and Agri- formation on biodiesel, call ATTRA. Tourism available by request. PECANS, BUFFALO, AND GAMAGRASS SEED A Farm Shop Enterprise Dan Shepherd and his father Jerrell changed their farming focus from commodity grains to Terry Joe Payne of Owensboro, Ken- pecans, buffalo, and gamagrass seed when they tucky uses his farm shop and tools to realized they had no control over wholesale grain build large, heavy-duty barbecue pits. prices (8). After switching, the Chiftonhill, Mis- He makes several models, some on souri, father-and-son team captured niche mar- legs and others on wheels to be pulled kets they formerly never had access to when sell- behind a vehicle. Prices range from ing only commodity grains. $1,800 to $6,000. Payne’s barbecue The family started farming corn, beans, and pit enterprise evolved from his cater- wheat on 1,900 acres in the 1960s. Dan’s late fa- ing business. Metal for the pits is ther came to realize that they would never get formed from 12-gauge steel, and the ahead economically doing what others were do- rest of the fabrication and assembly ing, but they could increase their income by do- work is done in his shop. Most of his ing what others wouldn’t do. The gamagrass sales have been local and all his ad- seed operation consumes about 80% of Dan’s vertising word-of-mouth or from people time, with the other two new enterprises—pe- reading his nameplate attached to one cans and buffalo—taking up the remainder. of the units. So far, he’s not needed Dan is a firm believer that to succeed in al- to pay to advertise (6). ternative agriculture you’ve got to communicate with your customers. Farmers who are focused on production must become comfortable with //MOVING BEYOND CONVENTIONAL CASH CROPPING PAGE 3
  • 4. floor was seeded with bluegrass. Though the bluegrass does not produce a high tonnage of forage, what it does produce is readily consumed by their buffalo herd. They started their herd in 1969 and rotate it through the gamagrass pas- tures using management-intensive grazing. During the summer, the herd is moved about every four days. Their gamagrass seed operation nets about $700 per acre on 400 acres. In 2000 they netted around $300 per acre from the pecan operation, but they expect that production to at least triple in the coming years. Through their store they sold 70,000 ears of sweet corn at 10¢ each, but even at that price they net about $1,000 on 15 acres. While not being a big moneymaker, the sweet corn does attract lots of customers who buy other products as well. The Shepherds feel that everything fits to- marketing. The Shepherds market their buffalo gether, with the various enterprises spreading products—including breeding stock, meat, hides, out the workload evenly. The family helps spon- and horns—through their on-farm store, where sor “Buffalo Day,” when many area residents they also sell pecans, sweet corn, pumpkins, gather to eat buffalo burgers donated by the fam- peaches, jellies, and other products, including ily. The family has time to participate in their nuts they buy from out of state. Dan’s wife, Jan, local Rotary Club and have hosted young people runs the store and manages the books. Dan over- from Russia, Thailand, Belgium, and France. sees the farm operation and does all the buying. Dan offers some tips for making the transi- tion from commodity crops. First, don’t look to Contact ATTRA for our publications on alternative agriculture as a bailout; think of get- Sustainable Pecan Production and Bison ting in or making the change to the system in Production. good times, not bad (8). Keep in mind: • The products of alternative agriculture re- The focal point of the Shepherds’operation quire different markets. is gamagrass. They discovered gamagrass while • The average learning curve for anything new looking for a forage for their buffalo herd. With is up to eight years. help from USDA researchers, they learned to • Given all the risk, it’s a lot easier to sit back grow and harvest seed from the grass, thus cre- and say it won’t work. Making change is not ating another marketable product. Seed produc- easy; if it were, everybody would be doing tion is particularly tricky because the seed does it. not mature evenly and drops off the stalk when RAISING TRADITIONAL CROPS mature. The seed must also go through a cool- down period before it will germinate. Harvest- ORGANICALLY ing is very tricky, and the harvested seed is stored Carmen Fernholz of Madison, Minnesota wet at just above freezing for six to eight weeks made the switch to organic farming when faced to meet the chilling requirements for germina- with limited choices for staying profitable in his tion. commodity crop operation. He now grows or- Once their pecan orchard was established, the ganic barley, oats, wheat, flax, corn, soybeans, Shepherds continued to grow commodity crops and alfalfa and raises 800 to 1,200 finished hogs in the alleys between the young trees. As the each year. After more than 20 years of experi- trees matured and began producing nuts, the row menting and learning about organic farming, he crops were crowded out. After that, the orchard got his farm certified in 1994. He markets his PAGE 4 //MOVING BEYOND CONVENTIONAL CASH CROPPING
  • 5. own crops and animals in order to keep his rela- the environment and cutting costs. He says ev- tively small operation competitive with larger ery year is different, and what worked one year farms. He also ensures payment for his organic may not work the next. He has less capital out- crops through a unique trust account with his lay and fewer economic risks as a result of switch- co-op. His wife Sally works a full-time job off ing to organic farming. However, he also suf- the farm. fered some temporary yield reductions as he pro- gressed up the learning curve. ATTRA has several publications on organic production, certification, and marketing. CONCLUSION Starting a new enterprise boils down to ask- Fernholz spreads his workload through the ing a series of good questions. Among these season by dividing the farm into quarters, each questions are: with a different crop in the rotation. He hires some labor each year to pick stones and do hand • Do I have the resources to do this? weeding, but he still manages to do most of the • Do I really want to do this? farm work himself. His primary labor expense • Do I have the experience and information to is custom harvesting the alfalfa. He, his brother, do this? and nephew work together on the feeder-to-fin- • How much profit can I make? ish hogs. (His brother owns and manages the • How will I market the products? breeding and farrowing operation.) The hogs are Most of the available enterprise planning sold on the conventional market through a buy- guides ask entrepreneurs to first assess their per- ing station that he operates near his home. Be- sonal and family objectives. They stress the im- tween 1997 and 2000, the station served as many portance of having some sort of business plan, as 50 farmers in Fernholz’s area (9). He works financial plan, and marketing plan before pro- with a National Farmers Organization office in ceeding. Determining the profit potential for the Ames, Iowa to find buyers. enterprise is essential before spending more time or money developing the means of production. For information on raising hogs, request the Details of planning a new rural enterprise are ATTRA publications Sustainable Hog available from ATTRA in our publication entitled Production Overview and Considerations in Evaluating a Rural Enterprise. Organic Hog Production. In all the case studies presented here, you can find examples in action of the following prin- Fernholz’s organic soybeans bring around ciples: $16.50 per bushel. (Request the ATTRA publica- tion Organic Soybean Production for more infor- • Do what others cannot or will not do mation.) He has not found a consistent market • Choose alternative enterprises for the other grain crops. To avoid loss or non- • Sell directly to end users to reduce the num- payment from smaller organic buyers who may ber of intermediaries and to keep more dol- renege on contracts, his farmer- lars in your own pocket marketing cooperative features a • Stack enterprises special grower-supported trust • Differentiate your product as fund used to pay farmers for in some way special —this breach of contract. His flax crop, adds value raised for human consumption, • Find market niches currently sells for $1 per pound • Cultivate good relationships ($50 to $60 per bushel). with buyers Fernholz tells others consid- • Be consistent in quality and ering the transition to organic to delivery go into it not for the market but • Consider cooperative market- for the philosophy of benefiting ing or processing //MOVING BEYOND CONVENTIONAL CASH CROPPING PAGE 5
  • 6. • Analyze your operation for ways to reduce RESOURCES costs Thomas Jefferson Agricultural Institute Once you have embraced these principles, 601 West Nifong Blvd. Suite 1D opportunities to employ your current resources Columbia, MO 65203 in different ways become more apparent. From 573-449-3518 there, the path toward a transition will begin to E-mail: info@jeffersoninstitute.org take shape. Even though change is never easy, it http://www.jeffersoninstitute.org/ can be done. Take a fresh look at your people, The Thomas Jefferson Agricultural Institute is a land, and other resources for market potential. non-profit agricultural education and research If possible, visit other families who have made center working in support of family farmers. significant changes for the better in their opera- With a focus on crop diversification, the tions. For additional ideas, see the following re- Jefferson Institute provides farmers with source list. information on how to grow and market alter- REFERENCES native crops. Among the crops they are work- ing with are: canola, buckwheat, amaranth, flax, 1) Nation, Allan. 2001. Allan’s Observa- sesame, sunflowers, millet, and alternative tions. Stockman Grassfarmer. February. legumes. They have a number of publications p. 16-17, 20. on growing and marketing alternative crops, 2) Leake, Linda. 2001. Flower Children. several multi-state projects evaluating alterna- Hay and Forage Grower, January, p. 19- tive crops, and an e-mail bulletin on upcoming 20. events and developments in new crops. 3) Allan Savory Center for Holistic Sustainable Agriculture Network (SAN) Management National Agricultural Library, Room 304 1010 Tijeras, NW 10301 Baltimore Albuquerque, NM 87102 Beltsville, MD 20705 505-842-5252 301-504-6425 http://www.holisticmanagement.org E-mail: san@nal.usda.gov http://www.sare.org 4) Anon. 2000. Jumbo shrimp. Progressive The SAN website contains a wealth of informa- Farmer. December. p. 34. tion on marketing strategies, how to conduct 5) Anon. 2000. Welcome to the pumpkin on-farm research, alternative crops, and much patch. Progressive Farmer. December. p. more. Numerous bulletins and reports are 34. available on-line. They sponsor a lot of on-farm research. 6) Anon. 2000. Barbeque Pits—A farm shop enterprise. Progressive Farmer. Decem- Kansas Rural Center, Inc. ber. p. 34. 304 Pratt Street, PO Box 133 Whiting, KS 66552 7) Pollard, Dave. 2001. Sundiesel and 785-873-3431 chickens. The Stockman Grassfarmer, http://www.kansasruralcenter.org letters to the editor. March. p. 3. Kansas Rural Center is a private nonprofit 8) SARE. 2001. The New American Farmer: organization that promotes the long-term health Dan and Jan Shepherd. Farmer profile. of the land and its people through education, <http://www.sare.org/newfarmer/ research, and advocacy. The Rural Center shepherd.htm>. cultivates grassroots support for public policies that encourage family farming and stewardship 9) SARE. 2001. The New American Farmer: of soil and water, and is committed to economi- Carmen Fernholz. Farmer profile. cally viable, environmentally sound, and <http://www.sare.org/newfarmer/ socially sustainable rural culture. Numerous fernholz.htm>. publications and a newsletter are available. PAGE 6 //MOVING BEYOND CONVENTIONAL CASH CROPPING
  • 7. Practical Farmers of Iowa (PFI) Northern Plains Sustainable Agriculture Society 2035 190th Street 9824 79th Street SE Boone, IA 50036-7423 Fullerton, ND 58441-9725 515-294-8512 701-883-4304 E-mail: dnexner@iastate.edu E-mail: tpnpsas@drservices.com http://www.pfi.iastate.edu http://www.npsas.org PFI sponsors statewide field days, publishes the The Northern Plains Sustainable Agriculture newsletter The Practical Farmer, is involved Society promotes ecologically and socially with numerous on-farm research projects, has a sound food production and distribution systems lending library, provides bulletins and videos, in the Northern Plains. They sponsor publica- and sponsors workshops and seminars. PFI tions and farmer events, including a summer currently has 30 research cooperators. The PFI symposium and farm tour and a two-day website is quite comprehensive and has numer- annual winter conference. ous useful resources. Nebraska Sustainable Agriculture Society P.O. Box 736 Land Stewardship Project Hartington, NE 68739 2200 4th Street 402-254-2289 White Bear Lake, MN 55110 E-mail: jillw@hartel.net 651-653-0618 http://www.netins.net/showcase/nsas or The Society promotes an agriculture that builds 180 E. Main St., P.O. Box 130 healthy land, people, communities, and quality Lewiston, MN 55952 of life, for present and future generations. They 507-523-3366 sponsor annual meetings, farm tours, field days, or and workshops. They have a speakers’ bureau 103 W. Nichols and a team of mentors who provide one-on-one Montevideo, MN 56265 assistance with the transition to sustainable 320-269-2105 farming practices. They produce a quarterly http://www.landstewardshipproject.org newsletter of agriculture practices and philoso- The Land Stewardship Project (LSP) is a phy. private nonprofit organization whose primary AERO mission is to foster an ethic of stewardship for Alternative Energy Resources Organization farmland, to promote sustainable agriculture, (AERO) and to develop sustainable communities. Their 432 North Last Chance Gulch membership consists of farmers as well as rural Helena, MT 59601 and urban residents working to secure a health- 406-443-7272 ful food supply; preserve soil, water, and Email: aero@aeromt.org wildlife; support diversified, profitable, family- AERO fosters the development of sustainable sized farms; organize communities for positive communities in rural states of the Rocky change; hold corporations and governments Mountain West and Northern Plains. They accountable; and create a sustainable vision for promote the use of renewable energy, conserva- our food and agriculture system. They have tion, sustainable agriculture, and community four offices in Minnesota. Membership in- self-reliance. Their sustainable agriculture cludes a subscription to the Land Stewardship efforts help farmers and ranchers find ways to Letter, workshops, and opportunities to connect sustain the productive capacity of their farms with others who share these values. while maintaining their rural communities. They offer sustainable farming information, financial and technical assistance, farm tours, and educational events. //MOVING BEYOND CONVENTIONAL CASH CROPPING PAGE 7
  • 8. AgVentures Magazine 11950 W. Highland Ave. Blackwell, OK 74631 580-628-4551 Fax: 580-628-2011 E-mail: AgVentures@aol.com http://agventures.com Published bi-monthly for an annual subscrip- tion of $21, the magazine provides 101 ideas per year on how to profit from your land. Each issue features articles on livestock, crops, aquaculture, niche markets, and state assis- tance. By Preston Sullivan NCAT Agriculture Specialist Edited by Paul Williams and Richard Earles Formatted by Gail M. Hardy May 2002 The electronic version of Moving Beyond Conventional Cash Cropping is located at: HTML http://www.attra.ncat.org/attra-pub/cashcropping.html PDF http://www.attra.ncat.org/attra-pub/PDF/cashcropping.pdf IP201 PAGE 8 //MOVING BEYOND CONVENTIONAL CASH CROPPING