A joint venture agreement between Scenic Valley Farms and members of the local food industry that merges high tunnel agriculture with clean energy in order to produce locally grown, organically certified fruits and vegetables.
1. SHARE-d High Tunnels: A Joint Venture between
Scenic Valley Farms and the Local Food Industry
2. Sustainable Agriculture. Clean Energy.
• Joint venture high tunnel greenhouses
• Environmentally and financially sustainable
• Provides reliable supply of locally grown, organic
produce
• Excess produce sold on the open market
• Harvest fruits and vegetables at optimum ripeness and
flavor
• Increases yields and extends the growing season
• Merges the technologies to earn a rapid return on
investment
4. Proposed Location of the SHARE-d High Tunnels
• East of the Minnesota River Valley, West of the
Mississippi River, North of Rochester, South of
Farmington
• Uncultivated in previous three years (necessary for
organic certification)
• 10-12 parcels of land have already been identified
5. Scenic Valley Farms
• Designs and manages high tunnels, climate
control systems, and solar thermal heating
technology
• Five high tunnels in Minnesota and
Wisconsin
• Produces organically certified tomatoes,
peppers, blackberries, raspberries, herbs,
and leafy green produce
• Decades of agriculture and engineering
experience
6. High Tunnel Agriculture
• Hybrid of open field and
greenhouse production
• Less expensive than
greenhouses
• Crops planted in ground to
ensure superior taste
• Create 12 month growing
season
• Constructed with steel hoops,
covered with heat retaining,
light dispersing, anti-drip plastic
• Plastic efficiently rolled up and
down to manage air flow
• Exhaust and circulation fans
control air temperatures
• Drip irrigation optimizes water
and natural fertilizer inputs.
• Manufactured locally by Poly-
Tex
• Incentives available at Federal
and State levels
7. Environmental Management System (EMS)
• Inexpensive climate control
system for high tunnels
• User monitors and controls the
climate from touch screen PLC,
laptop, or Smartphone
• Ventilation, irrigation, and
heating are monitored and
controlled on-site or remotely
• SVF awarded $100,000 USDA Small
Business Innovation Research
Grant
• Testing at SVF high tunnels in both
Minnesota and Wisconsin
• Expected operational date: March
2011
• Potential SBIR Phase II
Commercialization Grant in 2013
8. Solar Thermal Heating
• Qualifies for 30
percent Federal
Investment Tax Credit
• Reduces active
income tax liability
• Solar panels collect heated air
• Fans circulate heated air below
ground
• Warms soil and air temperatures
• Extends growing season to allow
for additional crops and harvests
• Reduces propane fuel usage and
greenhouse gas emissions
9. Online Produce Market
• Web based e-commerce
(operational on SVF website)
• Provides up to date information on
fresh produce for sale
• Orders processed by credit card,
check, or money order
• Buyers communicate order notes to
producer
• Joint venture members given
priority access to produce
• Designed for wholesale buyers,
restaurants, grocer co-ops
• Open to registered users who
complete a profile
10. SHARE-d Economic Benefits
• Boost fruit and vegetable yields up to 400%
compared to field grown produce
• Steady, reliable supply of organic produce
• Purchase produce at wholesale distributor rates
• Harvest and deliver fruits and vegetables at
optimum ripeness and flavor
• Create a year round growing environment
• Meet consumer demand on either end of the
production curve when competition is lower and
prices are higher
• Harvest ≈ 95 percent grade A fruit and vegetables
• Meet the increasing demand for locally grown
produce
• Grow healthier, safer produce with less risk of
contamination
• Cost effectively expand the scale of organic farming
• Shorten shipping distances = lower freight costs
• Create new regional produce
11. SHARE-d Environmental Benefits
• Shorter distance to market cuts fuel
usage
• Solar power reduces carbon
emissions
• Drip irrigation conserves water
• Natural compost replenishes the soil
• Organic mulching reduces erosion
• Synthetic pesticides and fertilizers
eliminated
• Crops protected from climate and
weather extremes
• Disease, pest, and insect control
inputs reduced
• Respond to water shortages in other
regions of the country
12. Boosting Produce Yields
SVF Weekly Determinate Tomato Harvest (2011)
• Yields
4 typically 200-
300% higher
3.5
in high
3 tunnels
Average marketable lbs per plant
SVF High Tunnels
• Our organic
2.5
determinate
2 tomato
Total = 19.5 lbs per yields in
1.5 plant
2011 = 20 lbs
1
per plant
• Established
0.5 goal of 25
0
lbs/plant in
7/15/2011 8/15/2011 9/15/2011 10/15/2011 2012
SVF high tunnels equaled yields at University of
Minnesota Southwest Research and Outreach
Center (SWROC)
13. Boosting Produce Yields
• University of Minnesota
conducting organic high
tunnel study
• Compares outdoor to
high tunnel grown
varieties
• High tunnels in study
SWROC 2009 Bell Pepper Harvest: High Tunnel vs. Outdoor
did not utilize 6
Average marketable yield (lbs/plant)
supplemental heat. 5
4
3
High Tunnel
2 Outdoor
1
0
Ace (green) Ace (red)
Bell Pepper
14. Creating a Year Round Season
Spinach Harvested on December 15th
Ripe Gold Medal Heirlooms on November 4th
Fall Bearing Blackberries on November 14th
15. Improves Produce Quality Tomatoes in SVF high tunnel
High Tunnel Grown Outdoor Grown
Tomatoes planted at same time in spring
Heirloom bell peppers in SVF high tunnel Summer blackberries in SVF high tunnel
16. A Menu of
Produce Options
• Agreement defines fruit and
vegetable varieties and
production periods
• Joint Venture members select
from a menu of warm and cool
season crops
• Members approximate
purchasing needs prior to
planting
• Members given priority access to
produce
• Excess produce sold on the open
market and income returned to
joint venture
• Certain types of produce (i.e.,
hybrid tomatoes and red bell
peppers) highly profitable
17. Basic Structure of SHARE-d High Tunnels
Scenic Valley Farms Partners
Business Entity Joint Venture
Provides long-term, no-cost land, water and storage Funds construction of solar thermal or
shed lease conventional high tunnel(s)
Obtains organic certification Funds initial operating expenses
Prepares site and plants crop Selects desired produce from a menu of options
Constructs solar thermal or conventional high tunnel(s) Communicates approximate purchasing needs
Installs climate control and irrigation systems Places weekly or bi-weekly produce orders
Contributions
Manages daily farming operations
Manages marketing and distribution of produce to
both partners and open market
Manages accounting and payroll
Prepares and distributes quarterly financial reports and
Schedule K-1 tax documents
N/A Investment Tax Credit (30%) on solar thermal
Tax Incentives
Bonus Depreciation (50-100%)
Negotiated wholesale rates
Produce Pricing
Highest available on open market
25 percent of net income 75 percent of net income
Financial Rights
Estimated 10-15% annual return on investment
Remaining initial operating expenses disbursed
SVF retains 1st option to purchase high tunnel(s) at 75 percent of original cost after 7-8 years of operations
Dissolution
before high tunnel(s) sold on open market (negotiable)
