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Alternative Agronomic CropsAgronomy Series |
| By Patricia Sauer and Preston Sullivan NCAT Agriculture Specialists Published 2000 ATTRA Publication #IP045 |
The
printable PDF version of the entire document is available
at: http://attra.ncat.org/attra-pub/PDF/altcrops.pdf 12 pages — 324K Download Acrobat Reader |
Abstract
This publication provides an overview of the considerations involved in selecting, cultivating, and marketing alternative agronomic crops. Experimenting with alternative crops can be profitable but involves risk as well. Before venturing into an alternative crop, it is wise to investigate the market and determine whether any new equipment will be required. It is also advisable to talk to others who have grown the proposed crop. Many additional resources for alternative crop information are referenced in this publication. Table of Contents
IntroductionVarious factors have stimulated interest in crop diversification in recent years: commodity price instability, decreased or eliminated farm subsidies, increased pesticide-resistance in pests, and losses in genetic biodiversity. At the same time, consumer dietary changes have generated new markets for alternative food products. Experimenting with an alternative crop involves both risks and opportunities, from both the production and the marketing standpoints. An alternative crop may make a positive contribution by increasing the diversity of the farm's income base, spreading out risks, reducing weaknesses in the farm system, or broadening the base of operations. While some alternative crops provide additional markets or greater profitability compared to standard crops, others are not necessarily higher-value crops. Rather, they are added to a rotation to break up insect pest, weed, and disease cycles, to scavenge nutrients for other crops, to improve soil tilth and fertility, or to clean up weedy fields. They are used to spread out the workload, to make farming more fun and interesting, and to add system flexibility, especially with crops that can double as livestock feed or forage in bad crop years. Farm diversification using alternative crops requires considerable research and planning, Inventory of Available ResourcesIt's a good idea to begin by inventorying your available resources. This inventory might include some of the following information (1): Land, Soil, Water
Buildings and Equipment
Labor
Location
Financial Status
Business Management and Marketing
Entrepreneurial Skills
The Small Farm Handbook (2) is one source of additional inventory topics and discusses all aspects of small farm operation and success. It serves as an applied discussion of small-scale farm operation in California for farms that raise organic and ethnic produce and unusual plant varieties. Topics include requirements for successful farming, finances, marketing, growing crops, handling of perishable crops, alternative agriculture, and labor management. Another source is Farming Alternatives: A Guide to Evaluating the Feasibility of New Farm Based Enterprises. (3) Worksheets are available in this publication to help assess the feasibility of diversifying farm operations. For more information on business planning, request the ATTRA publication entitled Evaluating a Rural Enterprise. Crop SelectionAlternative field crops are categorized as cereals and pseudocereals; grain legumes; oilseeds; industrial crops; and fiber crops. Table 1 below lists many of the crops that fall within these categories. Feasibility of a specific crop depends on a number of factors including the suitability of the crop for local growing conditions. Climate, soil characteristics, and pest problems affect crop productivity. Also worth considering is whether the alternative cash crop has other uses as well. For example, a number of the legumes and cereals have value as livestock forage. Should crop quality or markets be too low in a particular year, its usability as forage makes such a crop a less risky investment. The Appendix provides an extensive list of alternative crops, including area of adaptation, compiled by Kansas State University. (4) The Alternative Field Crops Manual (5), from the University of Minnesota and the University of Wisconsin, is a comprehensive source of production information on 48 alternative agronomic crops adapted to the upper Midwest. Detailed information is provided for each crop, including a brief history, growth habits, environmental requirements, cultural practices, yields, performance, economics and primary markets, and information sources. This manual is probably the single most informative resource available to farmers and Extension agents on this topic. Crop and Industrial Use ResearchNew crops and industrial products from these crops are being researched. Due to the complex nature of new crop production and development, progress seems slow. The following processes are involved in the development of an alternative crop: collection of cultivars, plant breeding for disease resistance and desirable plant traits, development of production and cultivation practices, and market considerations. On national and state levels, a number of organizations transfer current research on cultivation and production of alternative crops. Some of these groups include:
Research is also being conducted on industrial products that can be manufactured from alternative crops. Industrial use updates on crops such as castor, lesquerella, crambe, industrial rapeseed, guayule, jojoba, kenaf, and milkweed are available from the New Uses Council. The New Uses Council's 1997 Bioproducts Directory (6) lists companies, organizations, researchers, and suppliers of products made from renewable agricultural, forestry, or livestock materials or residues. (The '97 version is the latest "paper" edition. A 1999 Web version of this directory is available at www.newuses.org.) The Minnesota Agricultural Utilization Research Institute works to create new uses and new markets for Minnesota's agricultural commodities and alternative crops. (7) They publish a free newsletter called Ag Innovation News. They also do market research, technology transfer, and work one-on-one with Minnesota farmers and business people. Several conference proceedings from the new crops meetings have been published. Many of the papers presented at these conferences are very technical in nature and may be of more use to researchers than to farmers. These proceedings cover a wide variety of new crops and many aspects of their growth, adaptation, and production. Their titles are:
The Association for the Advancement of Industrial Crops (12) is an international, nonprofit educational and scientific organization that educates its members, the public, industry leaders, and government policy makers on utilization and commercialization of industrial products from agricultural crops. Over half of the membership is involved in research and development of industrial crops. For information on upcoming conferences as well as program abstracts of past meetings, see the AAIC. Markets and MarketingThe bottom line in raising crops is whether the projected receipts for the crop will be greater than the projected costs for producing it. It is the responsibility of each producer to carefully evaluate the marketing potential for an alternative field crop before getting into production. Market supply and demand, depth of market in terms of how much of a crop is needed to saturate the market, and market stability are very important topics to research. Availability and location of the nearest market, marketing strategies, and access to processing are also important considerations. Markets for alternative crops can vary greatly, depending on the crop. For a few examples:
Many alternative crops are marketed by contract to processors or packers. It is unlikely that alternative crops are handled by local elevators or marketing channels. Elevators in some locations will take alternative crops, but they should be contacted before planting specific crops that are intended for delivery to them. It is common for companies developing products based on unusual alternative crops to integrate vertically. That is, they lease land, use their own managers, and hire local labor. As mentioned earlier, when considering an alternative crop, it is necessary to carefully research all aspects related to the production, processing, and sale of that crop. There are several resources available that provide information on alternative crop markets and marketing. The National Organic Directory (14), is updated annually and focuses on organically grown commodities and alternative crops. Specific marketing information on organically grown wheat, oats, and sunflowers, and a list of some markets for these crops, are available in Northern Plains Organic Crops Marketing Analysis. (13) The Cooperative Extension Service in some states has compiled a list of buyers of some alternative commodities. Commodity groups may also have such a list. Also, many state agriculture departments and land-grant university agricultural economics departments may have market information for specific crops. Starting Points to ConsiderTalk to others who are already doing it. If you don't know anyone already involved in the enterprise, locate the state, regional, and national groups involved and get a list of local contacts. Avoid being swayed by hype. If possible, also talk to some folks who have tried and failed. We often learn more from failure than from success. Read all you can about your proposed enterprise. The popular farm press commonly picks up on new trends and features articles on new crops. Furthermore, there are typically a wealth of newsletters and journals that arise following the introduction of new crops and other enterprises. The Internet also offers a new, rapid means of accessing information on new topic areas. If you don't own a computer, you can usually get internet access at your local library or Extension office. Learn about the equipment for any new crops. Where feasible, choose crops that only require adjustment or some modification of your current equipment, rather than requiring significant investment in new or different equipment. Study the markets. Get a good sense of the market possibilities for any crop or product you are considering producing. Identify wholesalers, retailers, brokers, direct marketing options, and other resources that can be helpful. Ask other producers how they market. Learn the specialty market standards required. Evaluate your ability to meet standards for cleanliness, packaging, crop quality, etc. Some requirements are rather unique. For example, synthetic fertilizers and pesticides may not be used on a field for three years before a harvested crop may be sold as "organically grown." Establish your market connection BEFORE you grow your crop. This is especially critical for highly specialized commodities like edible soybeans. The seeds of edible soybeans are often colored differently from conventional beans, making them difficult or impossible to sell through conventional channels as a fallback option. Become techno-smart. Get comfortable with the idea of using the phone and the computer to market your products. Be flexible. When dealing with niche enterprises, it is often necessary to move quickly in response to rapidly changing market conditions. Farmers must constantly be on the lookout for ways to improve and innovate. Think (w)holistically. Consider more than just immediate, short-term profits when investigating new crops and enterprises. Diversification may not actually increase profits. What it can do is make profitability more reliable by smoothing out the ride between good and bad years. There may be additional benefits. Perhaps adding a new crop to the rotation will reduce problem pests... or maybe it will build soil fertility. Develop a whole-farm business plan and study carefully how well a new enterprise can be integrated. Internet resources. Surf the internet to find organizations, such as ATTRA, that provide information on alternative field crops and sustainable agriculture. Many Web homepage addresses are included with the citations in the reference section of this document. SummaryFarmers interested in alternative crops should inventory their current farm resources and carefully review the production and marketing potential of these crops before planting. Networking is an essential part of this process. ATTRA and other organizations mentioned in this publication have more detailed information on specific crops and the suitability of these crops for certain regions and farm production systems. Seed sources and marketing information can be obtained through elevators, Extension personnel, commodity groups, processors, and other channels. References
AppendixSee pages 9-11 in the PDF version of Alternative Agronomic Crops (PDF / 324K). Alternative Agronomic Crops
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