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Chuck and Mary Smith raise
about 3,000 chickens and 100 turkeys per year in addition to
beef, vegetables and wine grapes. Photo by Jerry DeWitt |
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Chuck
and Mary Smith
New Castle, Kentucky
Summary of Operation
Alfalfa,
tobacco, organic gardens, vineyard
50
beef cattle, 100 turkeys, 3,000 chickens raised using management-intensive
grazing
Farmers
markets, direct-marketed organic beef
Problems Addressed
Declining public support for tobacco.
Like many Kentucky farmers, the Smiths have struggled with their
dependence on income from tobacco almost since they started farming.
Political pressure and weakening federal interest in the national
price support system have caused the market to constrict. At the
same time, free trade agreements are allowing cheaper foreign tobacco
into the market. No crop commands as much per pound as tobacco,
especially one that calls for just a small acreage.
Poor soil. The Smiths started
farming on poor soil worn by years of erosion. Crops had been grown
up and down steep hills without regard to contours, encouraging
extensive erosion.
Extensive drought. A 1983 drought
forced the Smiths to borrow money to feed their fledgling dairy
herd. They were still paying off the loan when the next drought
struck in 1988. “We realized then that we were probably always going
to be paying the bank to feed the cows, so we got out of dairying
altogether,” Chuck says.
Background
The Smiths’ farm lies in Henry
County, a region of rolling hills near the confluence of the Ohio and
Kentucky rivers 45 miles east of Louisville. The land has been farmed
for 200 years, often poorly, with tobacco as the focus, but with a nearly
ruinous run of corn and soybeans in the 1960s and ’70s.
Both Chuck and Mary were raised on farms in Henry County, and Chuck
says he knew farming was all he’d ever want to do. Mary wasn’t as certain
early on, but now says she can’t imagine another or better way to live.
Soon after they moved onto the farm in 1982, they developed a long-term
strategy to certify much of their acreage as organic.
For a time the Smiths concentrated their energy on establishing a business
off the farm: their county’s first ambulance service. They kept growing
tobacco, but with their cows gone they stopped growing silage corn,
instead selling hay off their pastures.
When they sold the ambulance business and returned to full-time farming
in 1992, they had received organic certification for all but their tobacco
fields, and that opened new avenues. The Smiths decided to reintroduce
cattle, but to raise them entirely on pasture, with no supplementary
feed. They adopted management-intensive grazing practices, and started
marketing what is still the only certified organic, grass-fed beef in
the state.
They also began producing organic vegetables, first selling as part
of a community supported agriculture (CSA) operation, and then selling
their produce and organic beef at farmers markets in New Castle and
nearby Louisville.
At market, the Smiths were asked often enough by their customers about
chickens that they added pastured poultry to their list of offerings
in 1997. In 2000, they planted four acres of vineyard, with plans to
start bottling and marketing wine in five years or less.
“I’m trying to do anything I can think of to have a place my kids can
come back to and farm after getting their educations,” Chuck says. “To
do that, I need to leave them a place that isn’t played out, and an
operation that makes a decent income. That’s why we’re trying all these
things.”
Focal Point of Operation
- Diversification
The Smiths’ tobacco
allotment under the price support program was just six acres in 2000.
Nonetheless, the crop proved a boon to their profits. They grow tobacco
alternating with an alfalfa cover crop — every two years they rotate
from alfalfa to tobacco and back again. Each winter, they plant rye
before the spring planting.
They practice intensive rotational grazing. In the spring and fall,
their small cattle herd grazes on permanent fescue and clover pastures.
In the summer, the cows graze on an alfalfa/fescue mixture that Chuck
sows in late April. Each day, he moves the cattle to fresh pasture demarcated
by movable fence.
The Smiths raise about 3,000 chickens and 100 turkeys per year in portable
pens on pasture. They supplement the alfalfa and mixed grasses in the
pastures with commercial feed free of hormones and antibiotics, although
it is not organically certified. The poultry manure, along with composted
carcasses, supply nutrients to their soil.
The Smiths butcher and package the chickens on the farm, since there
are no federally approved meat processing plants in the area that will
handle poultry. They process about 200 chickens every two weeks, reserving
the turkeys for the Thanksgiving and Christmas markets, when they reach
an average of 20 pounds. As with their organic beef, they sell their
chickens and turkeys mainly through word of mouth, and by limited advertising
at the farmers markets they attend in New Castle and Louisville.
Even though the Smiths helped establish the New Castle farmers market,
they recently decided to scale back vegetable production to focus on
new enterprises. Yet, in 2000, they still raised several different vegetables,
such as lettuce, broccoli, cabbage, sweet corn, tomatoes and green beans,
on two acres.
In a new venture they expect will prove more profitable, the Smiths
planted a four-acre vineyard in 2000. Chuck is monitoring the plants
he purchased from California and Missouri to see if they can thrive
without the use of synthetic pesticides and fungicides, and is hoping
to expand the vineyard by at least another acre.
Economics and Profitability
The Smiths can count
on netting about $2,500 per acre from their tobacco. They sell their
processed chickens for $1.65 a pound, with an average dressed bird weighing
3.5 pounds. Their turkeys dress out to an average 16 pounds, and will
sell for $2 per pound. The costs associated with raising the poultry
are minimal, although processing is a family effort. It can take four
to five people an entire day to slaughter 175 birds. In the end, they
net $3 or $3.50 per chicken.
Their organic beef sales to individuals bring in about $4,000 per year.
Chuck still sells cows at auction, where they bring prices lower than
he can get through direct sales, but because they have few feed costs,
he still realizes a profit.
“I haven’t built up enough of a direct market for all the beef I produce
each year,” Chuck says. “I don’t get as much for it, but I really don’t
pay a lot to raise my cows either, so that extra $4,000 per year is
almost all profit.”
They estimate earnings of about $2,500 from their organic vegetable
sales. In their rural community, they can’t command higher prices and
plan to shrink that side of the business to concentrate on their vineyard.
“We are focusing on vineyards as our main project,” Chuck says. “It’s
the only thing that can come close to replacing tobacco.”
Environmental Benefits
Chuck’s soil conservation
efforts, rotational grazing practices and decision to go organic with
everything but his tobacco has had an enormous effect on his fields’
soil composition and water-retention ability. He has slowed erosion,
and analyses prove he has returned a balance of nutrients to the soil.
In the beginning, facing poor soil fertility, the Smiths approached
a 120-cow dairy across the road and worked out an arrangement to take
some manure each year to improve the resource. “They didn’t want the
manure, but they wouldn’t deliver it, so we hauled it across the road
and did it ourselves,” Chuck recalls.
Since then, the dairy has closed, but Chuck applies poultry compost
and limes the fields each year. To cut back on erosion, they planted
all of the low areas in permanent grass.
“We had a drought in ’99 that was worse than the one in ’83, but I didn’t
come nearly as close to losing my pond even though I was irrigating
as much or more tobacco with it,” Chuck says. “That tells me the ground’s
holding water better, and that’s a great sign.”
He also has
fenced the streams that run though his property to keep cattle from
kicking up sediment or fouling them with waste.
Community and Quality of Life Benefits
When the Smiths decided to
lessen their dependence on tobacco, their new ventures were met with
skepticism.
But reserve has given way to respect and acceptance in the past decade,
as other farmers have realized the advisability — and likely necessity
— of moving beyond tobacco as their staple. The Smiths’ field days are
well-attended, and Chuck has been appointed to the board of directors
of the local Southern States Cooperative and to the county committee
that decides how to spend its portion of settlement money from recent
court decisions against tobacco companies.
The Smiths appreciate their stay-at-home jobs. “It’s the best way to
live,” Chuck says. “Mary and I get to stay on the farm and watch our
kids grow. They benefited from the attention we were able to give them
when they were real young, and a lot of kids just don’t get that anymore.”
Transition Advice
Producers should be prepared
to accept setbacks on the road to diversity. “Just know you’re going
to fail sometimes, and unless you’ve got just no more money in the bank,
it’s not the end of the world when you do,” Chuck says. “It’ll get better,
and easier.”
The other bylaw
for the Smiths is pairing crops with livestock production.
“If you’re going organic at any kind of scale other than your own garden,
you need livestock,” Chuck says. “You need cows, pigs, chickens and
turkeys for the manure and for what they’ll do for your pastures and
your soil if you graze them right.”
The Future
The Kentucky legislature,
in a bid to help farmers diversify as tobacco’s fortunes wane, created
a program to encourage vineyard planting through cash grants. The Smiths
were among the first to take advantage of the program, and the state
funded 50 percent of the cost of purchasing and planting the vines.
“Most people don’t know it, but Kentucky and Missouri had pretty good
reputations as grape-growing regions a long time ago,” Chuck says. “It
was Prohibition that ended it — they sold or smashed all the equipment,
and set back commercial wine production here by 100 years.”
He notes that the traditionally wet springs and hot summers that tend
to be dry in August and early September are considered promising conditions
for grapes, and he’s staking a lot on learning how to turn them into
a money-making venture. Chuck is renovating his old dairy and tobacco
barns as production and storage facilities, and retrofitting a dilapidated
buggy shed near the house to act as a tasting room. Soon after his first
harvest in 2004, Chuck hopes to be well into wine production as his
farm’s primary activity.
Profile
written by David Mudd
For more information:
Chuck and Mary Smith
P.O. Box 44, New Castle, KY 40050
(502) 845-7091
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