Diversifying Your Farming Operation
Owusu Bandele, Ph.D.
In recent years there has been great interest in finding ways to diversify small and limited resource farming operations. Reasons for this interest include the following:
Many small-scale farmers are experiencing great difficulty in making their operations cash flow. A big part of this problem has to do with crop selection. Agronomic crops such as cotton, soybean, wheat and field corn cannot bring in enough income per acre for small farmers to survive. This is often true even in the best production years when yields are good.
Alternative Enterprises and the 1890 Universities
For years, many small-scale farm advocates have recommended that farmers diversify their operations to include alternative crops. For example, during the 1970's and 1980's Dr. Booker T. Whatley of Tuskegee University consistently stated that small farmers could make substantial income by establishing u-pick operations that included a variety of crops such as greens, sweet potatoes, strawberries, blueberries, blackberries, muscadine grapes and southern peas (Whatley, 1987). His book is entitled How to Make $100,000 Farming 25 Acres . A critical part of Whatleys plan was to select crops that could bring in significant income per acre. Whatleys ideas were often criticized by scientists at the land grant universities. One of the main criticisms was that the plan was not practical because of the amount of labor involved for a family farm operation. However, farmers throughout the nation have been influenced directly or indirectly by his plan. Many of them have adapted components of the plan into their farming operations.
We now know that farmers can actually earn considerable income per acre by diversifying their operations as Dr. Whatley had recommended. In fact, many vegetable and small fruit growers can make excellent incomes even when farming less than 25 acres. The key is to carefully select production and marketing strategies to fit your operation. Agricultural programs at the 1890 land grant universities have focused to a large extent on finding ways to diversify small-scale operations for limited resource farmers. For example, at Southern University and A&M College our research and outreach activities have involved the following commodities:
We have also been involved in the development of farmers markets. The list above summarizes just some of the opportunities available for small-scale farmers. However, many small scale growers are reluctant to switch from agronomic crops to alternative commodities. There are challenges or obstacles that must be dealt with when you consider diversifying your operation. These challenges include:
Gathering Information
The first step involved in producing new alternative crops is to develop a farm management plan. It is often recommended that this be done with the participation of your family members or others who work on your farm. The plan should include your mission and goals, market assessment, financing, marketing and management. Talk with your county agent, 2501 farm management specialist or other farm services agency representative about getting a farm record book. You should really consider how choosing a new crop or enterprise will affect your life and the lives of your family members.
Good sources of information concerning alternative crops and enterprises include:
Information regarding commercial vegetable, small fruit and cut flower production can be obtained from the cooperative extension service in your state through your county agent. Farmers and farm tours are excellent sources that you should use. The USDA Agricultural Marketing Service has wholesale prices for produce terminals in Dallas and Atlanta and other cities. You can get that information at their website which is http://www.ams.usda.gov. Knowing prices at other markets in your region can help you determine your prices. ATTRA will provide information free of charge on any crop or production question. The Southern Sustainable Ag Working Group hosts excellent workshops each year. Much of the conference deals with alternative crops and sustainable agricultural practices related to them. There is a great deal of interaction among farmers at these conferences and useful information is exchanged freely.
Community based organizations can also be of assistance in establishing alternative enterprises. For example, the Federation of Southern Cooperatives (FSC) which has offices in several states has assisted numerous farmers in forming cooperatives to market alternative crops. The Red Stick Farmers Market is a collaborative effort of the Baton Rouge Economic and Agricultural Development Alliance (BREADA). BREADA includes a diverse group of farmers, land grant personnel, local and state agencies and community organizers.
Getting to Know the New Commodity
It is important to get good and accurate production information about producing and handling alternative commodities. Information concerning the production of alternative crops should include:
A soil test is very inexpensive and can help a lot in determining the fertility of your soil. The cooperative extension service in your state will make fertilizer recommendations for the various crop based on the soil test. Using excessive fertilizers can be wasteful, environmentally harmful and can actually reduce yields. Some crops such as okra are very sensitive to receiving too much nitrogen which can result in lower yields. Applying too much fertilizer can also increase chances of the fertilizer leaching into the groundwater or and other environmental problems (Brady, 1990).
Irrigation is a must for commercial vegetables and small fruit growers. Many small scale growers believe that they cannot afford irrigation. However, in most years, they cannot afford not to have irrigation. Although rainfall is plentiful in the southeast there are often extended periods of drought which can prevent planting, wipe out a crop, or greatly reduce yields. Several options are available including drip and sprinkler irrigation.
Be sure to select the best varieties for your area. For example, in Louisiana consumers in some areas of the state prefer Longhorn varieties of okra whereas others would prefer "Clemson Spineless or Louisiana Green Velvet. Likewise, it is difficult to sell collards in some areas of the state where mustards and turnip greens sell well.
Proper grading, packaging and handling after harvest are all very important. For example, when selling to retail establishments some stores require specific boxes and labels for produce. Other stores would not be too concerned with the containers as long as the product is of good quality.
The best storage temperature for one crop might be entirely different from another. Some crops such as okra and squash are best stored at 45-50 degrees Fahrenheit (Louisiana Cooperative Extension Service, 1998). These crops might develop chilling injury when stored at colder temperatures. On the other hand, it would be best to store broccoli in temperatures close to freezing. The shelf life of your produce may be greatly reduced if you do not have access to cooling facilities.
Where Do I Sell?
Several markets exist for the sale of alternative crops. These include:
Many small-scale fruit and vegetable farmers use a variety of sales strategies. There are advantages and disadvantages of each. It takes time to prepare for and sell at the farmers markets. You may be able to sell more to a supermarket than at a farmers market, but the price will not be as great. However, some restaurants will pay retail prices for good quality produce. A farm stand at your house may be convenient, but customers coming and talking can distract you from your farm duties. CSAs are particularly popular with organic growers. With this system, a farmer (or group of farmers) receive an up front payment to supply customers with a variety of produce during the growing season.
Farmers Markets
Farmers Markets have really increased in popularity. Two decades ago, less than 100 farmers markets were known to exist (Johnson and Bragg, 1998). Today, there are over 2,,700 farmers markets. Over the past few years, many new farmers markets have opened in the south. A successful farmers market usually has:
Many farmers markets include a paid staff and volunteers. The paid staff can be supported through local funding and grants. Customer support can be very high at the markets. Many regular customers come to the market even when the weather is quite bad. In addition to getting fresh produce, customers also enjoy talking with the farmers who produced their food.
The following table contains some of the produce sold at the Red Stick Farmers Market in downtown Baton Rouge, Louisiana during the past year:
Produce Sold at the Red Stick Farmers Market
amaranth |
broccoli |
cut flowers |
okra |
southern peas |
arugula |
cabbage |
eggplant |
onions |
strawberries |
basil |
carrots |
English peas |
oregano |
summer squash |
beans |
cauliflower |
leafy vegetables |
ornamentals |
sweet potatoes |
beets |
citrus fruit |
lettuce |
peaches |
tomatoes |
blackberries |
cooking pears |
melons |
peppers |
white potatoes |
blueberries |
cucumbers |
mushrooms |
persimmons |
winter squash |
Growers often choose varieties that people prefer at the market. For example, many customers ask for older varieties that they are familiar with such as "Kentucky Wonder" beans even though newer varieties may have higher yields. Farmers should also be able to tell consumers how to prepare crops that are unfamiliar to them such as amaranth. The more exotic vegetables generally do better in big city farmers markets which have people from many different cultures. People in the large urban areas are often more likely to try new crops.
Farmers often are able to get premium prices for their produce at the farmers markets. The following table summarizes prices obtained from a recent USDA/AMS Dallas Terminal Market Vegetable Report and from a list supplied by a Farm Services Agency office in Louisiana which was compiled by the Louisiana State University Cooperative Extension Service.
Price Comparison of Vegetables (per bushel)
Source |
Okra |
Yellow Squash |
Cucumbers |
| LSU Cooperative Extension Servicea | $20.00 |
$15.00 |
$15.00 |
| Dallas Terminalb | $26.50 |
$14.00 |
$13.75 |
| Red Stick Market | $45.00 |
$50.00 |
$35.00 |
a
Source-LSU Cooperative Extension Service, 1999. bSource-USDA/AMS Terminal Market Vegetable Report: Dallas, 1999.The above estimate assumes farmers at the Red Stick Farmers Market received $1.50 per pound for okra, $1.25 per pound for yellow squash and $1.00 for three cucumbers. Prices could be higher at other markets such as the Crescent City Farmers Market in New Orleans, especially for organically grown produce. Of course the terminal prices and those provided by the extension service are wholesale prices. Also, there would be limits to the amount of produce that the farmers could sell at the farmers market. Farmers often do sell all or nearly all that they bring to the farmers market in Baton Rouge.
If farmers market are located relatively close to each other, farm families can sell at both markets simultaneously. For example several husband and wife teams sell at both the Red Stick Farmers Market in Baton Rouge and the Crescent City Farmers Market in New Orleans even though these markets are held at the same time on Saturday mornings.
Value Added
Value added agricultural products are also sold at most farmers markets. In fact, some vendors sell both fresh produce and value added products. The following table lists some of the value added products which are sold or have been sold at the Red Stick Farmers Market.
Value-Added Products Sold at the Red Stick Farmers Market
baked goods |
honey |
pickled vegetables |
cheese |
jams |
preserves |
file` |
jellies |
salad dressing |
goat meat |
pestos |
soap |
herb vinegar |
pastured poultry |
wine |
Know The Rules Of The Game
Before attempting to sell at a farmers market, be aware of the rules of the game! Many farmers markets have a waiting period before farmers can join. This prevents a farmer from showing up on the spot with a load of surplus and underselling the regular farmers there. Other regulations generally exist regarding the following:
Be sure to check the rules for preparation of foods and other value added products. In states with organic certification, farmers will not be allowed to advertise their products as organic if they are not certified. Usually, some state agency such as the state department of agriculture inspects scales for accuracy. Only certain types of scale are permitted.
Cooperation Is Important
I would encourage you to cooperate with other farmers in your efforts to diversify your farm. This will enable you to:
Vegetable farmers in Mississippi, Florida and other states have formed marketing cooperatives. This enables them to reach markets that would not be available to individual farmers. Farmers could also save by cooperatively purchasing seed, fertilizer, chemicals and other farming essentials. It may be possible to pool resources to purchase equipment. This would best apply to equipment which saves a lot of time but which is not used extensively throughout the growing season. For example, a plastic mulch laying machine could be shared by several farmers from one area.
Conclusion
Small farmers in the south and throughout the country continue to face serious threats to their very survival as farmers. Although all small farmers face these types of challenges, the problem is particularly acute for the African American farmers. In recent years, African American farms have been disappearing at a rate three times greater than other farms. However, opportunities do exist for small-scale and limited resource farmers. Change is often difficult to deal with. However, in order to create sustainable farming operations, we may have to:
At the same time farmers, must be willing to:
Diversifying your operation offers several advantages. All of your eggs wont be in one basket. If one crop does not do well, you can still have income from other crops. Also, a good mixture of commodities can attract customers. A customer may come to buy pastured poultry, but might also buy your vegetables at the same time. By diversifying your operation, you may increase your need for labor. But it may also lead to a more sustainable and productive farming operation.
References
Johnson, Denny, & Bragg, Errol. (1998). National Directory of Farmers Markets. Washington, D.C.: USDA Agricultural Marketing Service.
Louisiana Cooperative Extension Service. (1999). Louisiana Notice FLP. Baton Rouge, LA: LSU Agricultural Center.
Louisiana Cooperative Extension Service. (1998) Commercial Vegetable Production Recommendations. (Publication 2433). Baton Rouge, LA: LSU Agricultural Center.
Whatley, Booker T. (1987). Booker T. Whatleys Handbook on How to Make $100,000 Farming 25 Acres. Emmaus, PA: Regenerative Agriculture Association.
USDA/Agricultural Marketing Services. (1999). Terminal Market Vegetable Report: Dallas. Federal-State Market News Service. Website: http://www.ams.usda.gov.
Campus address for the author: Associate Professor, Horticulture, College of Agricultural, Family and Consumer Sciences, Southern University and A&M College, Baton Rouge, LA 70813.