Alternative Agronomic Crops: Farm diversification

Various 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.

Research and planning

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, from assessing available resources, to selecting potentially feasible crops, to exploring the crop market. Information regarding alternative crops is somewhat limited, especially when compared to that available for crops such as corn, wheat, and soybeans. However, a lot of valuable information can be obtained by networking with other producers.

It is a good idea to begin by inventorying your available resources. This inventory might include some of the following information:

• How many acres do you own or rent?
• What are the soil types, soil tilth and fertility, erosion potential, and drainage? ï What is your source of water (surface or groundwater)?
• Do you rely on an irrigation system for current needs?
• What is the quality of the water and are there adequate supplies for irrigation? ï How are wastes and wastewater managed on your farm?
• Are water storage and water treatment facilities adequate?

Crop selection

Alternative field crops are categorised as cereals and pseudocereals; grain legumes; oilseeds; industrial crops; and fiber crops. 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.

Crop and industrial use research

New 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.

Research is also being conducted on industrial products that can be manufactured from alternative crops. The Association for the Advancement of Industrial Crops is an international, nonprofit educational and scientific organisation that educates its members, the public, industry leaders, and government policy makers on utilisation and commercialisation of industrial products from agricultural crops. Over half of the membership is involved in research and development of industrial crops.

Markets and marketing

The 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:

• Approximately 95% of the buckwheat produced in North Dakota and surrounding states is exported to Japan where it is milled into flour and used to prepare noodles for human consumption
• Grain millet grown in Florida and Georgia is becoming a major feed source for broilers in these states, a substitute for maize that reduces the need for high protein supplements in feed.
• Proso millet is marketed through elevators where it is grown locally and is used for birdseed.
• Spelt is grown under contract and sold to health food stores as grain, white flour, and processed products such as pancake mix and cereals. It is marketed as a wheat alternative for people who have wheat allergies.

  

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 labour. 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.

Starting points to consider

• Talk 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 coloured 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 organisations, 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.

Summary

Farmers 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.

Source: ATTRA