Specialty Crop Project Sponsor: Nebraska Department of Agriculture - PowerPoint PPT Presentation

1 Expanding production of vegetables in Western Nebraska by extending growing season using geothermal heated greenhouse Specialty Crop Project Sponsor: Nebraska Department of Agriculture Host: Beehaven Farm Roadside Market/ Rutherford Ranch Support: USDA Specialty Crop Block Grant Program Producer netw ork: High Plains Food Coop Technical assistance: Advancing Rural Prosperity, Inc. July 20 17

2 Project Partners

3 Project Team Jennifer Rutherford, Rutherford Ranch Chris S ramek, High Plains Food Coop Leon Atwell, Advancing Rural Prosperity

4 Project Plan • Prepare production scenarios • Analyze production and costs • Determine fit to farms & market • Explore funding options • Prepare on-farm workshop

5 Project Assumptions • Apply and fit to farm operations and market • Not compare with conventional greenhouse • Adding product diversity to farm operations is a priority • Consider fit and production planning for HPFC market • Consider three capital cost levels • Create four production scenarios

6 Greenhouse Geothermal Technology • Overhead view of Geo-Air system • Citrus in the S now Kit (Alliance HS Construction)

7 Installation Cost Scenarios • Original basic unit, 78’ x16’ cover and frame: New system extended to 96’ with added geo-air efficiencies and room for aqua and hydroponics with 78’ growing area. $22,000 • Low end: Use farm supplies, equipment and labor: $25,000 • Middle ground: Use some on farm labor, hire some labor: $40,000 • High end: Use all purchased supplies and labor: $60,000

8 Farms Visited • New producer j ust starting out • Two established vegetable operations • S eed nursery/ farm • Meat production operation looking to diversify • Pick-your-own operation • Producers using system already

9 Production Scenarios • Scenario #1- Citrus Fruit, Raspberries and Spinach • Scenario #2- Citrus Fruit, Grapes, Spinach and Kale • Scenario #3- Citrus Fruit, Blueberries, Grapes and Strawberries • Scenario #4- Tomatoes

10 Budgetary revenue summary Annual Scenario #1 Scenario #2 Scenario #3 Scenario #4 Gross Revenue $28,100 $26,500 $19,480 $20,000 Cost of Production $7,110 $6,000 $5,000 $3,500 Energy Costs $365 $365 $365* $365* Net Rev. on ROI #1 $12,292 $11,802 $5,782 $7,802 Net Rev. on ROI #2 $7,292 $6,802 $782 $2,802 Net Rev. on ROI #3 $625 $135 ($5,885) ($3,805) *Consider subbing winter crop w/o heating to control cost (not figured) to keep nighttime temperature 60-62 degrees

11 Producer Fit • S maller scale and growing • Diversified farms; not commercial large scale • Be established; want to add diversity to current system • Be entrepreneurial; have business, marketing skills • BeeHaven is an example of a diversified farm, looking to add more products; Tour farm to explore fit

12 Production / Market Expansion • Allow for season extension of crops to have sales year around • Have fruit year around; Providing ability to continue healthy food bundle programs year around; be the only bundle with locally grown fruit available • 5 year added farm and co-op revenues with 9 units in production 5 yr Added Revenues $1,0 8 0 ,0 0 0 .0 0 $8 4 0 ,0 0 0 .0 0 $6 0 0 ,0 0 0 .0 0 $378 ,0 0 0 .0 0 $36 0 ,0 0 0 .0 0 $29 4 ,0 0 0 .0 0 $210 ,0 0 0 .0 0 $126 ,0 0 0 .0 0 $120 ,0 0 0 .0 0 $4 2,0 0 0 .0 0 2018 2019 220 2021 2022 Farm Co-op

13 Outlets for Products • Institutional • S enior and Healthy Worksite Bundle Programs • Direct to customer • Front Range market (Denver area) • Local market • Food Processing • Coops: HPFC, Wyo-Fresh & NFC

14 HPFC Business/Market Fit • Hybrid aggregation food-hub business model • Virtual on-line sales and accounting • Geographic distribution system coverage • Producer based and led • Values chain • Linked with other similar co-ops Custom ers Aggregation, Distribution & Processing

15 Concerns & Challenges • Efficient use of space • Construction skills and labor • S caling up • S till need extra heat source • Life cycle of fruit trees • Address overheating • Drainage/ water table • Impact of winter cropping

16 Next Steps • Implement greenhouse into system as a test (BeeHaven Farm) • Recruit producers to implement additional systems • S upply expanded co-op market opportunities

17 Questions and Information Proj ect Host Jennifer Rutherford 970-302-9531 beehavenfarmroadsidemarket@ gmail.com Proj ect Co-Director Proj ect Co-Director Leon Atwell Chris S ramek 785-738-8368 785-626-8066 latwell@ nckcn.com chris@ decisionweather.com