Valueadded Agriculture

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Value-added Agriculture

• Getting More for What You Already Have

By Robbie Rader Truman State University
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What is value-added agriculture?

• Increasing the value and appeal of an agriculture
  product or commodity through changes in genetics,
  processing or diversification
• Requires more time, labor and skill than
  typically seen in farming operations

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Why use value-added agriculture?

• Unstable prices for raw commodities
• Federal farm policies
• Changing consumer preferences
• Make more money by cutting out the middleman

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Concerns with value-added agriculture

• Marketing is critical
• If you cant sell it, you wont make money
• Legal and business restrictions can be
  complicating
• Do your homework before jumping off the deep end
• Consult the experts

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Areas of value-added agriculture

• Ag Tourism
• Aquaculture
• Biomass Production
• Energy Production
• Forestry
• Floriculture

• Fruit, vegetable nut production
• Growing GMOs
• Livestock Production
• Organic Food Production
• Specialties

The sky is the limit if you can find a market!
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Ag Tourism

• Corn mazes and hayrides
• Weddings
• Fishing and hunting opportunities
• Bed and breakfast inns
• Farm tours
• Horse boarding and riding
• Wine tours
• Must have the proper facilities to accommodate
  your guests!!!

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Aquaculture

• Freshwater shrimp
• Stocking and bait fish
• Fish for direct consumption
• Tilapia

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Biomass Production

• Hay
• Manure
• Biodiesel
• Ethanol

Energy Production
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Forestry and Floriculture

• Christmas trees
• Nursery stock
• Seed
• Bedding plants
• Turf

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Fruit, nut and vegetable production

• Blueberries
• Cherries
• Apples
• Peaches
• Pecans
• Black Walnuts
• Grapes

• Raspberries
• Strawberries
• Tomatoes
• Melons
• Pumpkins
• Sweet Corn
• Mushrooms

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Growing GMOs

• Insect resistant corn and cotton
• Round-up Ready soybeans, corn and cotton
• Disease resistant squash
• Cuts down on chemical costs!
• Be aware of regulations!

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Livestock Production

• Beef
• Bees
• Elk
• Lambs
• Pork

• Poultry
• Purebred Animals
• Ratites
• Unusual Breeds
• Worms

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Organic Food Production

• Meats
• Eggs
• Produce
• Honey
• Grains
• Labeling restrictions!
• Must be certified organic!

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Requirements to be certified organic

• No prohibited substances (insecticides or
  fertilizers) for last three years
• No synthetic hormones or antibiotics
• Border of 25 feet between organic and
  conventional production
• No GMO seeds or plants
• Crop rotations
• Third party inspections common!

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Specialties

• Amaranth
• Herbs
• Prairie Seeds
• Unique Products
• Soaps
• Candles
• Jams
• Wine and cider

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Getting Started

• Pick something you will have a long-term interest
  in
• Look at consumer trends
• Consider start-up costs, potential profits and
  losses, and any additional costs
• Be aware of food safety and labeling issues
• Determine how processing of your commodity would
  be accomplished
• Federal grants are available

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Succeeding

• Produce a high quality product
• Start small and grow as demand grows
• Change as markets and demands change
• Build your customer base wisely and keep it
• Allow 3-4 years for returns
• http//www.agmrc.org/homepage.html

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Small Scale Example

• Rader Farm
• Sell packaged and labeled homegrown honey to a
  wide customer base
• Marketed as gifts and allergy aid
• Demand is increasing
• Product is in three stores currently
• Profit made each year
• Takes a lot of research

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Also sell specialty livestock, farm-fresh eggs
and meat
Australian Black Swans
Guineas
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Summary

• Benefits of value-added agriculture
• Increased profits
• Pride in a high quality product
• Important in changing economy
• Consumer preference
• Web offers vast resources on ideas and
  implementation

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References

• http//www.msue.msu.edu/valueadded/
• http//www.agmrc.org
• http//attra.ncat.org/attra-pub/keystosuccess.html
  UpdatingtheKeystoSuccess
• http//www.rurdev.usda.gov/rbs/coops/vapgnofa.pdf
• http//www.extension.iastate.edu/Pages/valag/
• http//www.value-added.org/research.asp
• http//www.qualitysystems.ag.iastate.edu/mtg03mar2
  4/delate.pdf
• http//agebb.missouri.edu/mac/links/index.htm

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Grant Information

• Missouri
• Nathan Chitwood, USDA Rural
• Development, 601 Business Loop 70
• West, Parkade Center, Suite 235,
• Columbia, MO 65203, (573) 8769320,
• nathan.chitwood_at_mo.usda.gov.