Small Farm Blogs
Farms that sell only fresh produce are dependent on buyers for markets and pricing. The UC Cooperative Extension small farms team in Fresno and Tulare counties believes farmers can earn more money by taking production a step further, by adding extra value to their products with processing, preserving and packaging the produce.
UC Cooperative Extension small farms advisor Ruth Dahlquist-Willard, the UC Sustainable Agriculture Research and Education Program, and Fresno State's Office of Community and Economic Development brought a group of small farmers together for a workshop in January to learn about resources available to help them develop value-added businesses.
“Value-added products can improve the bottom line of a small family farm by bringing in additional income and diversifying production,” Dahlquist-Willard said. “We wanted to connect beginning farmers and Southeast Asian farmers to programs that could help them develop and market value-added products from their farms.”
The value-added workshop included presentations from a farmer with a successful value-added business, government agencies and non-profit organizations. Alternative lenders such as Fresno Madera Farm Credit, who provided funding for the workshop, also presented on loans available for small-scale farms. UCCE agricultural assistant Michael Yang translated the presentations into Hmong.
Kingsburg organic farmer Paul Buxman opened the workshop with his personal journey into value-added production. Buxman's story begins in 1994 when a spring hail storm swept through his farm.
“The hail marked all my fruit. I had 100,000 pounds of plums, peaches and nectarines I could not sell. What could I do?” Buxman said. “An idea came to my head like a lightbulb. Take the fruit, cut off the scar, cook it and make jam.”
The new venture wasn't an instant success. Buxman found himself delivering unsold jam that first year to a Bay Area homeless mission, pulling up right behind a bread truck.
“Man does not live by bread alone,” he said with a laugh.
But each year he and his wife improved their product, and the market grew.
“This jam is so addictive, it's barely legal,” Buxman said. His “Sweet Home Ranch Homemade Preserves” costs $2 per jar to make, and sells for $5 each.
Buxman suggested the farmers at the UCCE workshop to try making a value-added product. The new products could be spices, food, cleaning products, handicrafts, and even experiences, such a teaching a skill.
“You have so much more to offer people than you realize,” Buxman said.
During the subsequent panel discussion, Kiel Schmidt outlined the support that Food Commons Fresno can provide. An important element is the opportunity to rent the organization's commercial kitchen to create value-added merchandise to health department specifications. Patti Chang of Feed the Hunger Foundation said her organization provides technical assistance and loans to new ventures that can carry out their mission of reducing hunger and helping people out of poverty.
“We worked with two Oaxacan women in Madera who didn't want to be field workers anymore,” Chang said. “They wanted to make a product from their culture: mole. They became a certified business, opened a bank account at Wells Fargo and opened a small restaurant in a grocery story. We helped them negotiate the lease.”
Eduardo Gonzalez of Fresno State's San Joaquin Valley Rural Development Center said his facility can help small businesses with marketing, website design and getting value-added products to market.
Dawn Goliik of the U.S. Small Business Administration said the organization can help small farmers start, grow and run businesses with training, mentoring and counseling.
“It's all free to you,” Golik said.
The UCCE small farms team also has a marketing associate, Lorena Ramos, who is available for farmers to contact regarding value-added product development.
Presentations and one-on-one consultations were offered by a variety of organizations that can loan funds, including Fresno Madera Farm Credit, Access + Capital, Northern California Community Loan Fund, California FarmLink, USDA Farm Service Agency and Valley Small Business Development Corporation.
The workshop ended with a presentation on California's Cottage Food Law, which allows residents to process and prepare foods in their own home kitchens to sell to the public. Some of the home-prepared products the law permits are jams, jellies, cookies, cakes and fudge, dried fruit, vegetables and spices. A complete list of approved foods is on the state website.
The Cottage Food Law is for businesses with a gross annual income below $50,000, which have no more than one employee (not including household members).
“There is no charge, just paperwork to fill out,” said Matthew Gore with Fresno County Environmental Health. “This isn't difficult, and we're here to help you with the forms.”
Dahlquist-Willard said an important part of her UC Cooperative Extension program is the connections she and Yang can help farmers make with the myriad services available to them.
“We encourage small farmers to contact us in our Fresno office,” she said.
Can plants typically grown for hedgerows also be a source of income? That's the question guiding a new UC study on the potential for farmers to grow elderberries as a commercial crop.
Blue elderberry, a California native plant with clusters of small bluish-black berries and a sweet-tart flavor, have long been eaten by Native Americans in the western states and are used today in jam, syrups, wines and liqueurs. And while elderberry orchards are popping up in parts of the Midwest, California's elderberries are usually just grown on field edges, and elderberry products sold retail rely mostly on foraged crops or imports.
Farmers at The Cloverleaf Farm near Davis are already selling elderberry products from plants grown on their farm, alongside their blackberries and stone fruits. And they find that customers love them. The farmers want to understand the viability of growing elderberries for market beyond their nascent effort, bringing some of the out-of-state production home.
The UC Sustainable Agriculture Research and Education Program (SAREP) launched a project in collaboration with the Cloverleaf Farm, the UC Agriculture Issues Center, UC Davis Department of Food Science and Technology, and four Central Valley farmers to assess the farm management practices, nutritional content, and market potential for elderberry and elderberry products in California.
“I think a lot about the long-term systems sustainability of our food system,” said Katie Fyhrie, one of the farmers at the Cloverleaf. “I keep thinking about how much we focus on production of blackberries and blueberries, when the elderberry also achieves that dark berry color and flavor people like with much fewer resources.”
Elderberries are typically grown on farms as hedgerows for their ability to attract beneficial insects, act as a windbreak, and sequester carbon, benefiting the overall health of the farm, but not providing direct benefit to a farmer's bottom line. Despite long-running federal cost-share programs for planting hedgerows, the number planted in California is still quite small relative to the large expanses of farmland in the state. Adding a financial incentive to planting elderberries may help increase the popularity of hedgerows amongst farmers.
As climate change impacts California with heat and unpredictable water availability, some studies suggest farmers may need to consider diversifying the crops they grow to adapt to changing local climates.
Elderberries, which grow in arid California regions along the coast and into the mountains, have the potential to grow in a range of climates and adapt to changing California ecosystems in the future.
It is unlikely that farmers would plant entire orchards of elderberries, in part because of restrictions on pruning elderberries that may be home to the Valley elderberry longhorn beetle, a federally threatened species. But for small- and medium-scale growers looking to diversify their income sources, elderberries may provide a boost.
The two-year elderberry project now underway will conclude with a growers' production guide, cost of production study, an assessment of market demand and nutritional contents, and workshops to help link growers with buyers interested in elderberry products. The project will also address issues related to the Valley elderberry longhorn beetle and generating income from hedgerows.
“Elderberry juice is already in so many products,” Fyrhie said, “so building a market for locally grown elderberries seems like a no-lose situation.”
For farmers interested in learning more about incorporating perennials into annual crop farms and similar agroforestry practices, view a webinar on the topic recently hosted by UC SAREP here.
In today's food system, large scale food distribution has become the standard way food moves from farm to market. The system works well to feed a lot of people, and has allowed us to eat tomatoes in December and send produce far distances while keeping it fresh. But the system is not without its sacrifices.
Through large scale food distribution, farmers can lose the ability to set their own prices, and small-scale farmers can be cut out from the system for not being able to fill high volume orders. On the consumer side, this system can make local food harder to find and identify. Institutions interested in providing locally grown produce at their cafeterias may need the efficiency buying from large distributors provides, but find they're unable to source food the way they'd like.
Food hubs are businesses popping up around California and the U.S. trying to create a food distribution system that supports regional food systems. By aggregating food from small and mid-sized farms and selling it to large businesses and institutions, food hubs are able to help realize the consumer's desire for local food while helping small and mid-sized farmers succeed by connecting them with buyers who may otherwise be out of reach.
To help ease the challenge of starting these unique businesses, a network of food hubs in California, organized by the UC Sustainable Agriculture Research and Education Program, is learning how to conquer their business start-up and growth challenges together.
Food hubs as business innovators
Thomas Nelson, president and co-founder of Capay Valley Farm Shop, a food hub in California's Capay Valley, has built his business around a vision of a thriving regional food system where small farmers succeed. Thomas purchases food from 50 different farms in and near the Capay Valley, and sells primarily to corporate food service in the Bay Area.
“Our model is farmer-focused," Thomas said. “Farmers set the price for their food, and we add on our margin. We help tell the story of the farms so that their identity is kept throughout the supply chain. We let our buyers know about new products or new farms we're working with, and our buyers ask for produce by farm name.”
Thomas works closely with his 50 farmers, helping them plan their crops to best meet the demands of their clients, and working with the beginning farmers to get them through the hurdle of learning how to sell wholesale.
“It can be a challenge to accurately predict the next harvest,” Thomas said. “And it's our responsibility to mitigate some of those risks for the buyers as much as possible, but our buyers also get it. The reason they choose to work with the food hubs is they want to support local farms. What really makes this work are shared values.”
Thomas is one member of a new statewide food hubs network created in collaboration with the UC Sustainable Agriculture Research and Education Program (UC SAREP), a statewide program of UC Agriculture and Natural Resources whose work includes improving marketing opportunities for small farmers. The network, funded in part by the UC Global Food Initiative, brings together food hub mangers to learn from one another and collectively pave the way for successful food hubs in California.
The food hub business model is a relatively young one, few food hubs existed in the United States before 2008. Today, hundreds are in business across the country, and they're all trying to figure out similar things: how to best work with farmers and customers to make the business model effective, how to run a food business in a regulation-laden environment, how to increase efficiency without sacrificing price, quality, and the value of local agriculture.
“Food hubs are really working with farmers in their local areas to help them reach markets beyond selling directly at the farmers' market,” said Gwenaël Engelskirchen, who leads the food hub projects at UC SAREP. “We brought a group of northern California food hubs together for their first convening in February of 2015 and they realized that they all had a lot to learn from each other. They realized that there's opportunity in them working together.”
There's a hashtag on Twitter for what they're doing: #collabatition, or, collaborating with your competition. UC SAREP acts as the organizing body for the food hub network — coordinating resources to help the hubs wade through the many rules and regulations of operating a food business, and working through the visions of their own businesses and the network collectively.
“This is a newish space, so there is a ton to learn and share,” Thomas said. “By having a network we are supporting each other on the journey of growing successful businesses that serve local farms and regional buyers. Working with UC SAREP, we can have conversations with larger buyers that would be hard for us independently to access.”
One of those potential larger buyers is an organization close to home — the kitchens of the University of California.
“UC SAREP plans to interview kitchen directors from UC campuses all around the state to see what keeps them from buying local food, and whether the food hub business model is one that can support the desire they have to incorporate local food into their kitchens,” Gwenaël said.
And past successes show that food hubs can play an important role in linking UC dining programs with local farms. According to a recent report from the UC Global Food Initiative, through a relationship with the food hub Harvest Santa Barbara, UC Santa Barbara is currently able to source 23 percent of its produce from within 150 miles of campus.
“By linking UC food buyers with food hubs, we want to see if that success can be replicated around California," Gwenaël said. "In 2014, UC Santa Barbara alone served nearly three million meals, so the entire UC becoming a local produce buyer could be a major boon to regional food systems.”
The UC SAREP website offers a number of resources that can assist food hubs as well as farmers looking to see their produce wholesale. Find those resources here. Stay tuned for an upcoming article on food hubs in the next issue of California Agriculture journal.
Nigel and Lorraine of Eatwell Farm in Dixon go an extra mile to share a taste of real farm experiences with their 500 CSA members and their friends and relations, partly for increased understanding about the farm by their customers and partly to build loyalty and attract new CSA members.
After arriving and getting settled, we all walked out to the garlic field, where we learned how to pull up the bulbs with the stem still attached. We got the hang of garlic harvesting quickly, as the soil had already been loosened around the bulbs, making pulling pretty easy. We picked and pulled and shook off the dirt and piled our findings into harvesting trays to bring back to the packing shed.
After we'd filled a dozen or so trays with our harvest, Connie and Eric, our hosts for the afternoon, let us loose in the next field over, the most beautiful abundant strawberry patch, with instructions to taste and pick what we wanted. No prices, no weighing, just picking and eating of the most delicious ripe and sweet berries. Smiles were everywhere.
Then it was time to learn how to braid. First a little instruction in cleaning off the outer layers of skins, then a short demo on how to braid, and we were ready. We all made a few braids, or tried to make braids. Although the farm sells garlic at their farmers' markets, Connie and Eric again let us know that we could take home as much as we wanted! We felt royally gifted with kindness.
Finally, dinner was ready. The main course was farm-raised chicken, prepared by Lorraine. Rounding out the delicious meal were potluck salads, sides and sweets brought by the visitors. Dinner was followed by a campfire, complete with marshmallows and all the makings for classic s'mores.
Some consumers are willing to pay a hefty price at trendy restaurants, farmers markets, roadside stands, and even local grocery stores for tomatoes with irregular shapes, vivid colors and rich tomato flavor.
The consumer demand presents an opportunity for small-scale farmers, and a challenge.
“It's not easy to grow heirloom varieties,” said Margaret Lloyd, the UC Cooperative Extension small-scale farm advisor for Yolo, Solano and Sacramento counties. “They often have less disease resistance, are lower yielding and cannot tolerate as much stress as improved modern varieties.”
When Lloyd joined UCCE last summer, she began visiting small-scale producers in the counties she serves.
“I realized very quickly how important fresh market tomatoes are to these growers,” Lloyd said.
Because she holds a doctorate degree in plant pathology from UC Davis, Lloyd is well-positioned to begin her research program with a small tomato grafting project on UC Davis farmland. Her idea is grafting the particularly delicious heirloom varieties onto tomato roots that are resistant to soil-borne diseases.
“Grafting is an old technology,” Lloyd said. “It works in the same way we graft fruit trees and grapevines onto favorable rootstocks. Vegetable grafting has also been done for years.”
Lloyd said the process is simple and an individual can easily learn to graft tomatoes. But to do so cost effectively with the quality and success rate necessary for economically viable production, it may make most sense to work with a commercial nursery.
Lloyd is conducting a quarter-acre field trial with the three most common heirloom varieties – Brandywine, Cherokee purple and Marvel stripe – plus the yellow-hued Sun Gold cherry tomato and a non-heirloom salad tomato, Charger. Several growers in the area have also planted them in their commercial operations.
In addition to collecting data from the trial that will help small farmers decide whether grafted tomatoes make sense for their operations, Lloyd and her research associates will harvest many bushels of fresh tomatoes from the plots. Some will be sold at the UC Davis farm store to help support the research, and as for the rest, “We're definitely going to eat them,” Lloyd said.
“I enjoy them raw with olive oil, salt, vinegar and a little basil,” she said.