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FLATHEAD VALLEY FARMSTEAD BUSINESS PLAN -- SUMMARY
FLATHEAD VALLEY FARMSTEAD BUSINESS PLAN – SUMMARY
HOME GROWN ORGANICS BUSINESS PLAN
Draft 6/13/04
1. OVERVIEW
Home Grown Organics will create and operate a viable, self-sufficient, sustainable farmstead, using biodynamic farm management practices. Home Grown Organics will seek organic certification from the State of Montana as soon as can be arranged. The products of the farm will be those which supply niche markets with higher than average rates of return. The primary products will be hazelnuts, chestnuts, heartnuts, apples, cherries, blueberries, huckleberries, elderberries, essential oils, canola seeds and other oil seeds. Value added farm products will be biofuel, potting soil, potted plants, and greenhouse products. After the initial tree planting, building construction, irrigation works are completed; small animals will be added to the farmstead so as to provide self-sufficiency and added farm income.
The application is for the land acquisition loan and the infrastructure loan.
The Land acquisition costs are estimated:
Payment to seller, buyer’s escrow and closing costs: $126,000
Appraisal fees: 500
Due diligence examination 500
Soil tests 400
Loan origination fee 700
Total: $127,400
The infrastructure cost is estimated:
Site preparation including grading and roads $15,870
Machinery, equipment, tools and supplies 32,000
Cultivars and planting 20,000
Water system including well and irrigation system 28,600
Fire water system 2,230
Subtotal: 69,900 Rounded to 70,000
Barn construction estimated cost 130,000
Total Infrastructure costs: 200,000
2. LAND AND SITE PREPARATION
2.1. Land. The target real property is 68 acres in Sanders County, MT, northeast of Plains just off Highway 28 on Deemer Creek Road. The property will be supplied with well water, is sloping and is not fenced.
2.2. Solar aspect. The major face of the property is mostly south facing (about one-half,) about a quarter is east facing and about a quarter is northeast facing. It is in the low foothills northeast of Plains. This type of location and orientation was recommended by Cato, 2,200 years ago. http://www.kal69.dial.pipex.com/shop/system/index.html
2.3. Public access. It fronts on Deemer Creek Road, a unpaved, county road which becomes paved for a short distance to Hwy 28. The intersect of Deemer Creek Road and Highway 28 is less than one mile to Highway 200, the main east-west access to Highway 93 and U.S. 90.
2.4. Survey. The parcel is being surveyed. The property is being surveyed by the seller, the completion of which is a condition to close of escrow.
2.2. Internal roads. The property will be graded so as to provide an access road from Deemer Creek Rd., to the top of the hill and a second road for internal agricultural uses. Terraces will be graded on the contour, which terraces will be planted with groves and also used for berries bushes and truck garden. Much of the land will be ungraded and planted with larger, nut bearing trees.
2.3. Fencing. The predation of the crops by predators will be reduced by construction of an eight foot, electrical fence around the entire property. The ungraded portions dedicated to large nut trees will be developed so as to protect the trees from sheep, goat and poultry pasturing.
3. BUILDING
3.1. Multipurpose barn. The multipurpose barn will be a three story barn, 48 feet wide and 100 feet long. The structural walls will be made of structural insulated panels (SIP). Steel trusses will support the roof structure which will be part SIP and part greenhouse roofing.
The construction will be energy efficient and will be heated by hydronic panels in the floors (radiant heating). The barn will have the following layout and uses:
3.1.1. First floor. The first floor will have the following uses:
3.1.1.1. Maintenance. A maintenance shop will provide for maintenance and repair of all farm equipment, tools and vehicles. Shop size will be 48 (width of the building) x 20 x 12
3.1.1.2. Cooling room. The cooling room is used to cool freshly harvested crop and for longer term storage after processing and packaging. The size will be 48 x 32 x 12. Field pallet boxes, 4 x 4 x 2 tall, will be stacked five high. This room can hold 250 field boxes (maximum). However, shelving for small delivery boxes will invade some of this space.
3.1.1.3. Drying. A drying room will be configured for dehydration of food with hot air produced by a Econo Heat forced air heater. This climate and humidity controlled room will be 48 x 10 x 12, less extra insulation. Fresh air, which has been dehydrated by the chiller, will receive the moisture from the products being dehydrated.
3.1.1.4. Food processing and packing areas There will be food processing and packaging areas to process the nuts, fruit, vegetables and other farm products. Shop size will be 48 x 20 x 12.
3.1.1.5. Energy flywheels. Two well insulated tanks, of 5000 gallons each, will be housed in the shed so as to provide for thermal energy storage tank flywheel, one for the boiler and one for the chiller. These tanks could be put in a basement of the shed, on the east side of the main floor retaining wall, below the furnace and the chiller room. An alternative to consider is not to use steel tanks, but build concrete cisterns below the furnace and chiller room, with suitable insulation on the outside of the concrete on all six surfaces. Manholes from the furnace/chiller room would provide access to the inside of the tanks for installation and maintenance of the heat exchangers.
3.1.1.6. Bathroom and lounge. A bathroom lounge and mud room will be located next to the south wall. The size of the combined rooms will be 48 x 10 x 8. The bathroom will be unisex and have toilet, shower and lavatory areas separated by partitions.
3.1.1.7. Handicap. All areas of the first floor will be wheelchair accessible. A three story lift will provide access from the first to the upper floors.
3.1.1.8. Storage. The space above will be accessible from the shed for storage of long lumber, pipe and agricultural supplies and materials. Cages riding on rails will be built so that the entire contents can be rolled out on the pavement to the east so as to provide ready access. The size of the cages will be is 4’ x 4’and various lengths to accommodate the materials being stored. Angle iron embedded in the floor of the ceiling to the bath, mud room and lounge, then carried out to the shed and, if necessary, into the pavement for the parking lot further to the east.
3.1.2. Second floor
3.1.2.1. Offices The second story will house an office for the farm, with desks, computers, file cabinets, and other office equipment. The offices will be in the center section and will be about 48’ x 40’ including a hallway connecting the two apartments.
3.1.2.2. Living quarters Two living units will be built in the second floor. Each will be a two bedroom, one bath apartment. They will be located at each end of the second floor. Each will be about 48’ x 30’ or 1440 sq. ft.
3.1.2.3. Access. There will be outside stairs on each end of the building and one set in the middle on the west side. Additional doors will allow access from the apartments and the offices directly into the shed on the east side of the building. The doors into the operations where fire is a danger will be self closing, two hour fire rated doors.
3.1.2.4. Fenestration. Dual pane, energy efficient windows will be installed in the east, west and north walls of the second floor. Canvas awnings above each window will provide shade in the summer and can be retracted for the winter. Sunscreens will also be considered to reduce the summer heat transfer.
3.1.3. East extensions. A shed structure will be built along the easterly wall, with the foundation on the fill behind the first floor retaining wall. The ridge of the shed will connect with the middle part of the east side of the third floor. This connection will allow for a row of upper windows in the third floor so that eastern light can bath the greenhouse plants. This extension will serve the following uses:
3.1.3.1. Distillery and Biodiesel production. The distillery and biodiesel production plant will be at the south end of the building. The distillery will produce ethanol to supply the biodiesel, value-added farm product operation.
3.1.3.2. Essential oil extraction. Essential oils will be extracted by hot water, filtered and concentrated for human use. Some of the plants providing feedstock for the essential oils will be grown in the greenhouse so as to provide year around feedstock. This use will be located next to the boiler room. 3.1.3.3. Furnace and chiller room A firewalled section of the shed will house the furnace room with a water boiler will provide for building heat and hot water for processing essential oils, ethanol, and biodiesel production. It will also house the chiller which will provide chilled water for general building use and for the coolers on the first floor. 3.1.3.4. Storage. A storage area will store tools, equipment, business records, seed, and other office related items.
3.1.4. Third floor
3.1.4.1. Greenhouse The third floor will be an intelligent greenhouse. Steel trusses will support SIP roofing panels. The polycarbonate crystal panels will be installed as skylights in the roof and will be operated as part of the intelligent greenhouse. Production of crops will be year around in the climate controlled greenhouse.
3.1.5. Clean water Snow melts and rain water from the roof will be stored for use in the greenhouse. 3.1.6. Clean domestic water Snow melt and rain water from the roof will be stored for domestic potable water use.
3.1.7. Fire system: Fire and smoke alarms will be installed. Emergency exits will be through windows on the east side via chain ladders, the heads of which will be attached to the wall below the window frames.
3.2. Pump house A small pump house will be constructed in connection with a drilled well to be located on the southwest corner of the property for both irrigation and domestic purposes. The well will be drilled to 300 feet and the pump set at 250 feet. The pump will supply a 2500 gallon above ground storage tank next to the pump house. This tank will connect to a four inch line through a gate valve to a fire hydrant placed at the edge of the driveway connection to Deemer Creek Road. A second pump will supply a 10,000 gallon tank to be set at the highest point on the property along the northeasterly boundary. This tank will supply gravity flow for irrigation and domestic use and also be connected through a gate valve to a four inch pipe to a fire hydrant at the top of the property.
3.3. Co-housing. A pad for a future duplex will be graded at the top of the property near the knoll toward the easterly side of the saddle. On this pad will be constructed the “Lodge” as more fully described in the “Econo Campus”. A second pad for a four plex will be graded on the bench north of the saddle. The saddle area will be reserved for vehicular access and overflow parking. All units will have under-the-story garages for automobiles
4. CROPS The plan is to become a certified organic farm for all of our products. We will use the best practices for biodynamic farming which are cost effective.
4.1. Groves. Groves of apple, cherry, nuts and other suitable bearing trees will be planted. The irrigation will initially be subsurface soaker hose. General advice on all aspects of grove and plant management: Fruit and Nut Cultivars for Home Plantings Published by University Extension, University of Missouri-Columbia. http://muextension.missouri.edu/explore/agguides/hort/g06005.htm Disease Pest Topics: http://entomology.montana.edu/extension/diseatoc.htm
4.1.1. Apples. The preferred varieties Arkansas Black, Enterprise, Jonafree, Pristine, Red Delicious, and William’s Pride.
4.1.1.1. Apple Scab; http://entomology.montana.edu/extension/diseatoc.htm
4.1.2. Cherries. The cherry tree varieties will be selected which are best suite to the soil, the climate and market potential. Current choices are Lapin and Meteor. Diseases/disorders Royal's Postharvest Use Canceled For Stone Fruit by Melissa Hansen (link to Good Fruit Grower archives) Quarantine Treatment For Sweet Cherries by Lisa Neven, Stephen R. Drake (link to Good Fruit Grower archives) New Generation of Postharvest Biocontrols Coming by Good Fruit Grower (link to Good Fruit Grower archives) USDA Replicates Tests on Cherries For Japanese by Dr. Hal Moffit (link to Good Fruit Grower archives) Postharvest Diseases of Cherries by Dr. Eugene Kupferman, Postharvest Specialist Postharvest Diseases of Cherries by Mike Willett(1), Gene Kupferman(2), Rodney Roberts(3), Robert Spotts(4), Dave Sugar(5), Gary Apel(6), Hugh W. Ewart and Bill Bryant (7) Reduction of Surface Pitting in Sweet Cherries by Kim D. Patten and Max E. Patterson(1) and Eugene Kupferman(2) Harvest In-Field Hydrocooling Cherry Temperature Management by Craig Young(1) and Dr. Eugene Kupferman(2) Postharvest Diseases of Cherries by Mike Willett(1), Gene Kupferman(2), Rodney Roberts(3), Robert Spotts(4), Dave Sugar(5), Gary Apel(6), Hugh W. Ewart and Bill Bryant (7) An Introduction to Cherry Quality and Handling by Dr. Eugene Kupferman, Postharvest Specialist I appreciate the information provided to me by Dr. Max Patterson, Professor and Horticulturist, Washington State University Improving Quality, Flavor & Color Optimizing Cherry Stem Quality by Joanne L. Schick and Peter M. A. Toivonen The 3rd International Cherry Research Symposium by Gregory Lang (link to Good Fruit Grower archives) Quarantine Treatment For Sweet Cherries by Lisa Neven, Stephen R. Drake (link to Good Fruit Grower archives) New European Cherry Cultivars Deserve Attention by Lynn Long (link to Good Fruit Grower archives) USDA Replicates Tests on Cherries For Japanese by Dr. Hal Moffit (link to Good Fruit Grower archives) Irradiation May Be Viable Option For Cherry Export by Geraldine Warner (link to Good Fruit Grower archives) Cherry Damage Surveys in 1993 by Dr. Eugene Kupferman, Postharvest Specialist In-Field Hydrocooling Cherry Temperature Management by Craig Young(1) and Dr. Eugene Kupferman(2) Forced Air Cooling of Cherries by Henry Waelti, WSU Extension Agricultural Engineer An Introduction to Cherry Quality and Handling by Dr. Eugene Kupferman, Postharvest Specialist I appreciate the information provided to me by Dr. Max Patterson, Professor and Horticulturist, Washington State University Cherry Quality Research Summary by Dr. Eugene Kupferman, Postharvest Specialist Reduction of Surface Pitting in Sweet Cherries by Kim D. Patten and Max E. Patterson(1) and Eugene Kupferman(2) Marketing The Apple and Cherry Industry of Chile by Dr. Juan Pablo Zoffoli (requires Adobe Acrobat Reader) Northwest Cherry Production Could Double by Melissa Hansen (link to Good Fruit Grower archives) Cherry Production is Expanding In Chile by Luis Valenzuela, Translated by Dr. Fredrick J. Smith (link to Good Fruit Grower archives) Importance of Methyl Bromide to Cherries by Good Fruit Grower (link to Good Fruit Grower archives) Worldwide Market Potential and Technical Barriers for the Export of Stone Fruit by Nick Kukulan, President, Paramount Export Company and Dr. Mike Willett, Technical Issues Manager, Northwest Horticultural Council USDA Replicates Tests on Cherries For Japanese by Dr. Hal Moffit (link to Good Fruit Grower archives) Access to Japanese Market Means Waiting by Good Fruit Grower (link to Good Fruit Grower archives) Irradiation May Be Viable Option For Cherry Export by Geraldine Warner (link to Good Fruit Grower archives) Organic/IPM Handling Organic Fruit by Miles McEvoy Packing Cherry Damage Surveys in 1993 by Dr. Eugene Kupferman, Postharvest Specialist Postharvest Diseases of Cherries by Dr. Eugene Kupferman, Postharvest Specialist Cherry Warehouse Survey Report, 1988 by Dr. Eugene Kupferman and Postharvest Specialist and Robert C. Ebel, Research Technician Postharvest Diseases of Cherries by Mike Willett(1), Gene Kupferman(2), Rodney Roberts(3), Robert Spotts(4), Dave Sugar(5), Gary Apel(6), Hugh W. Ewart and Bill Bryant (7) Storage Cherry Warehouse Survey Report, 1988 by Dr. Eugene Kupferman and Postharvest Specialist and Robert C. Ebel, Research Technician Factors of Loss and The Role of Heat Removal for Maximum Preservation of Sweet Cherries by Dr. Max E. Patterson, Professor and Horticulturist Forced Air Cooling of Cherries by Henry Waelti, WSU Extension Agricultural Engineer Transportation/shipping Irradiation May Be Viable Option For Cherry Export by Geraldine Warner (link to Good Fruit Grower archives) Some links from this page may be to information presented at the 18th Annual Washington Tree Fruit Postharvest Conference. Paid attendees of the conference can view this information with a password. Others may obtain a password from the Washington State Horticultural Association http://postharvest.tfrec.wsu.edu/generic.php?article=ulapin 4.1.3. Berries. Candidate berry cultivars are the blueberry, huckleberry, raspberry elderberry and Indian ice cream berry. Investigation into other candidate barriers continues. 4.1.3.1. Native Northwest Berry Candidates: http://www.wellsgray.ca/berries.html Huckleberry Taste Rating: 9/10 Where found: moderately shady forest, very common Season: Mid-July to Late August depending on the area The Huckleberry is in the opinion of many (including, no doubt, Huckleberry Finn), among the finest of fruits. They start to ripen up first in Mid-July on the trails near the town of Clearwater, such as Candle Creek Trail, The River Trail, Spahats Creek. Towards the end of July they are at their prime on the Flatiron Trail, and trails around the Murtle River. Further North in the park they reach their peak in Early August. Identification: Dark blue to black berries around 1 cm diametre, with a smooth depression on the end where the flower was attached. On bushes 30-60 cm high. Look-alikes: there are few, but could be confused with black twinberry, which has similar berries, but always in pairs with showy red bracts at the base of each berry. Black twinberry is inedible, but not seriously poisonous. Blueberry Taste Rating: 7/10 Where found: Sunny forest, forest edges Season: August Wells Gray's Blueberries are usually a bit too sour, but still worth eating, and excellent for pies and jams. Easy to identify because of their powdery blue colour which rubs off. The only other fruit which has this powdery blue is Oregon grape, or Mahonia, which also is edible, but even more sour! Oregon grape, however, has distinctive holly-like evergreen leaves. Saskatoon Taste Rating: 7/10 Where found: Sunny forest, edges Season: Mid-July to mid-August Saskatoon were a favourite of interior native peoples. The Secwepemc name for saskatoon translates as "real berry." Bears seem to agree, black bears often frequent areas where there are lots of saskatoons. The fruit is sweet and if you chew the seeds you may notice an almond-cherry flavour. Good places to look for Saskatoon include Ray Farm, the beginning of Bailey's Chute trail, and around the Clearwater Lake camground. Identification: Fruits start red, but turn dark blue-black when ripe. The best identifying feature is probably the remains of the flower that always hangs onto the end of the fruit, similar to a rosehip. Saskatoons grow on shrubs often several metres high, the leaves are round-oval with a delicate blue-green colour and triangular teeth near the end. Wild Strawberry Taste Rating: 10/10 Where found: Dry, open areas. Roadsides. The Canyonlands. Season: June-July The progenitor of the cultivated strawberry. Enough said. Look for it along roadsides and in dry open fields around late June. A fleshy red fruit with little seeds stuck on the outside. Nothing looks like strawberries but strawberries. Thimbleberry Taste Rating: 7/10 Where found: Open areas. Roadsides. Common. Season: Late July-Aug Thimbleberries are really a type of raspberry. The best description for the flavour is that of raspberry jam that needs more sugar. Some love 'em, some don't. It pays to love them, though, because there are lots of them, everywhere. Because they're a kind of raspberry it's easy to identify them - the fruit is a conglomerate of tiny round red fruits or 'drupelets.' The leaves of thimbleberry are maple-shaped. Look-alikes: none really, but remember that you're looking for raspberry type fruits. If you just look for red berries and maple-shaped leaves you could mistake it for devils club, which is spiky and has indedible fruits. Raspberry Taste Rating: 10/10 Where found: Very open areas. Disturbed areas. Uncommon in the park. Season: July-Aug Everyone knows rasberries, right? The fruit is a conglomerate of tiny round red fruits or 'drupelets.' The leaves are three-part compound leaves. Unmistakeable and delicious. Soopolalie – Indian ice Cream Berry Taste Rating: 3/10 Where found: Dry, sunny forest, forest edges Season: Mid-June to July Some people like it. Not many, admittedly. It seems to be an acquired taste, since the interior native peoples considered it a great treat. Another name for it is Soap-berry, some say because it tastes like soap, but more likely because the berries can easily be whipped to a foam which has optimistically been called Soopolallie, Shepherdia canadensis, sxusa (E) sxusem (W) The berries ripen any time from May to August depending on the elevation and latitude. The people usually harvested them by placing a mat tray or bucket beneath the branches and whacking the branches sharply with a stick, so that the berries fell onto the mat. All native groups whip up the berries with a little water into a light froth called ‘Indian Ice cream’. The berries are rich with iron and were either eaten fresh or dried for later use, or boiled into syrup for use as a beverage. Berries were an important trade item and are still valued as gifts. The Secwepemc used the berries, juice, twigs, or leaves medicinally for everything from heart attacks to indigestion, including acne, boils and even gallstones. Most importantly, the sticks were valued as a purgative. The name ‘soopolallie’ is Chinook for ‘soap’ berry. The plant is so-named because the berry pulp is soapy to the touch and ‘soapberry’ is another common English name for it. Other common names are ‘buffalo berry’, ‘hooshum berry’ and ‘bear berry.’ http://www.secwepemc.org/SECethnogardens2/dry_land_garden.htm Indian Ice Cream Recipe: Use 250 ml of canned soapberries (sxusem) berries and place the berries in a large bowl. Beat the soapberries berries with a whisk or electric mixer. To sweeten add strawberry, raspberry or saskatoon berry juice. Or you can add about 50 ml of sugar (or enough for your taste). Continue beating until it looks like pink ice cream. 4.3.7. .
4.1.4. Nuts. The nut trees are: hazelnut, chestnut, and butternut. Other possible varieties are hickory and the whitebark pine. The latter trees are good windbreaks and produce nuts which birds and ground animals can harvest for their winter fat needs. ”Research is in progress to identify the best genotypes for the region and to develop methods to grow and harvest these crops. The upper Midwest could become one of the leading producers of these new crops over the next 20 years. The Midwest Nut Producers Council, in cooperation with Purdue University and Michigan State University, has established cultivar evaluation plantings of chestnuts and filberts. More information can be obtained from Steve Wozniak, MNPC President at (313) 277-1633. “ http://www.hort.purdue.edu/newcrop/NewCropsNews/93-3-1/fruitnut.html
4.1.4.1. Chestnuts: A READY-TO-EAT CHESTNUT FLOUR BASED BREAKFAST CEREAL. PRODUCTION AND OPTIMIZATION. http://www.actahort.org/books/494/494_7.htm “Chestnuts are receiving wide recognition as a highly nutritious food. Unlike other nuts that are over 50% fat, chestnuts contain less than 5% fat, are higher in complex carbohydrates and lower in protein. They are more like potatoes or grain than nuts, and can be consumed in many different ways. Fresh or roasted chestnuts are sweet and nutritious snacks. Chestnuts in stuffing, casseroles, or as vegetables are popular. The nuts can be dried and ground into a flour that is used in cooking. “Chestnut production is increasing rapidly in the U.S. and will continue to do so in response to the large imports of this crop. Growers in the Great Lakes region have planted more than 200,000 chestnut trees over the past five years, with the first nut harvest in 1990. Projections are for a million pound crop by the end of the decade. The U.S. imports 20 million pounds annually at a value of $30 to 50 million. There is a shortage of chestnuts on the market, and many markets are not being supplied now. It is obvious that the potential for commercialization in the Midwest is tremendous. “ JEM: MONTANA TOO! http://www.hort.purdue.edu/newcrop/NewCropsNews/93-3-1/fruitnut.html http://muextension.missouri.edu/xplor/agguides/hort/index.htm
4.2. Truck Garden. There will be truck gardens, herbs for fresh use and for production of essential oils. Grove layout will allow for the planting of berry low bush plants and truck garden crops between the nut trees as a lower canopy. Truck gardening in the intelligent greenhouse will continue year around.
4.3. Sustainable Small-scale Nursery Production. Small scale nursery production in the form of small container pots will be considered and most likely adopted as a value added crop. These small container plants will designed for sale to the retail trade and sold concurrently with the other production at the Farmer’s markets. Our merchandizing plan is to create a space in the display trailer for small containers – very bright, good looking plants – samples mostly. Have in the storage, the ones for sale, in different sizes. Buyer from Lawyer and resell. Instant cash flow and profit. Very little loss due to spoilage. Sell as organically raised starter plants. Make sure our source is certified organic.
4.4. .
5. LEGAL The legal structure will be as follows: Home Grown Organics’ founder, James E. Miller, will form a Montana limited liability company under name of “Home Grown Farms, LLC”, which will acquire title to the land and execute all loan and related instruments. James E. Miller will be the initial owner of all of the equity in the LLC. Home Grown Organics will offer partnerships to other persons who will be personally hands-on in the enterprise and whose status and qualifications are acceptable to the founder, and then existing partners and to any lender whose loan terms require such approval. An alternative is to vest title in a 501.c.3 land trust.
6. FINANCING. Financing will be achieved by funding through the USDA direct loan under the Beginning Farmer program and such other programs as are appropriate. Home Grown Organics will transfer to the LLC, title to the tools and equipment listed on Attachment 2 at the values shown, some of which will be funded by the USDA loans. The debt service will be made by a combination of non-farm income, farm income and a 504 loan or other in second position.
7. OPERATIONS Operations of the farm will be as follows:
7.1. Management Home Grown Organics will provide all management services, including marketing, sales, accounting, banking, legal, regulatory, crop management, construction management, information management and risk management. He will also provide a portion of the field labor. Home Grown Organics will employ a CPA or enrolled agent to prepare tax returns.
7.2. Labor Farm labor will be by founder and other worker member partners when and as needed for the operations. When the fruit and nut trees go into nearly full production, partners will be full time and housed on the property.
7.3. Equipment Home Grown Organics’ equipment will be used in the development of the irrigation system, the grove lands and construction. Other equipment will be rented as needed. Home Grown Organics’ equipment is listed on Attachment 2 which constitute part of the founder’s equity in the business. Additional equipment needed is listed on Attachment 3.
7.4. Marketing and Sales Marketing of all products will include:
7.4.1. A website, a Yahoo store front with ecommerce, eBay and other auction websites and WWW directories.
7.4.2. Home Grown Organics will either create or join a community supported agricultural (CSA) organization.
7.4.3. Home Grown Organics will likely market some of its apples and cherries through local marketing cooperative organizations.
7.4.4. Fresh fruits and vegetables will be marketed at local and regional farmer’s markets, central produce facilities, restaurants and commercial kitchens and institutions.
7.4.5. Products which are unsold or are seconds will be dehydrated and packaged for bulk use. Eventually, these products will be produced as consumer snack food, packaged and sold directly to consumers. These products include fruit jerky, pemmican, oils, syrups, flour, nutbutter, seasonings and similar products.
7.4.6. Byproducts, agricultural wastes and food wastes will be ground and composted.
7.5. Transportation and distribution
7.5.1. Home Grown Organics intends to create a farmer-led CSA whereby sales will be conducted by each farmer member of the production from all of the other farmer members. Sales will be made out of a special trailer which is so designed as to provide transportation, storage and display of the products at farmer’s markets. These trailers will be towed by the cargo trucks to the farmer’s markets at which distribution to the CSA members will also take place.
7.5.2. At the outset, transportation will be by Home Grown Organics’ Ford F250 truck and trailer.
7.5.3. As production increases, a refrigerated cargo truck with a lift-gate will be purchased for fresh food transportation. Local storage will be inside the barn.
7.5.4. Home Grown Organics has an insulated cargo container (8’ x 8’ x 20’) which can be fitted with a refrigeration unit and used for cold storage.
8. FINANCIAL PROJECTIONS
Financial projections of capital cost, income and expense and cash flow are set forth in Attachment 3. In summary, the grove operation will be on the break even plane for approximately six years, during which the groves are not producing fruit and nuts. Immediate farm income will be generated from the greenhouse operations, truck garden, the biofuel operations and the essential oils production. Non-farm income will be supplied by a combination of founder’s social security benefits and other sources. Home Grown Organics is prepared to engage in a ceramic tile setting business and general building contracting business using Structural Insulated Panels. Home Grown Organics also has the option of gaining a law license in Montana and engaging in a part-time law practice.
9. SCHEDULE
9.1. Founder, James E. Miller: Currently (3/11/2005), the founder is enrolled as a student at Montana State University, Bozeman, and is seeking Bachelors of Science degree in Agricultural Operations Technology through the Department of Agriculture. He has upper division standing and expects to graduate in December of 2006. The prosecution of this schedule will not materially interfere with the creation of the biodynamic farm. Schooling at MSU could be delayed if necessary.
9.2. Land acquisition Land acquisition, if completed as soon as possible which will allow for grading, the installation of the irrigation system, and the construction of the barn and ordering of the fruit and nut trees. The grove lands can be prepared for planting, the compost can then be created. The fish pond will also be rough graded in connection with grove preparation.
9.3. Irrigation facilities During the summer and into the winter, the major portion of the irrigation facilities can be constructed, consisting of the fish pond, pump house and pump equipment, and major components of the grove irrigation and field crop irrigation facilities. When the trees are planted, the remaining portion of the grove irrigation facilities can be installed.
9.4. Multi-purpose barn The main structures of the multi-purpose barn will be constructed during the summer and early fall of 2004. The interior of the floors will be built during the winter built out in the following order: Greenhouse, second floor residences and first floor furnace room with boiler equipment. The balance of the first floor will be built in generally the following order: storage (mainly shelving), maintenance shop, distillery and essential oil extraction plant.
9.5. Biofuel The biofuel plant is to be housed in a 53 food cargo fifth wheel trailer. Home Grown Organics’ target date is to be in operation in July, 2005. 9.6. Truck garden production Truck garden operations will begin next spring, with harvesting and sales running concurrently with the maturity of the various crops.
10. PERSONAL HISTORY AND QUALIFICATIONS
James E. Miller’s (“Founder”) personal history and qualifications are set forth in Attachments 4 and 5. Briefly, Founder is qualified by his education and work experience. His education includes a B.A. degree from Stanford University (tri-major in history, political science and economics), a J.D. degree from Stanford Law School, and several courses taken at local educational institutions. Currently, Founder is pursuing a degree in Biotechnology from the Department of Agriculture, Montana State University, Bozeman, MT. His intended graduation date is December, 2005. Founder has extensive experience in all phases of land acquisition, design and construction of buildings and enterprise creation and management. The groves will take three years to begin production of fruit and nuts and six to seven years to reach full production. Founder is beneficially using the interval of time to gain knowledge of biodynamic farming, build his marketing organization, complete the land acquisition, build the structures and prepare the land for the groves and grow organic vegetables for the regional organic market. Founder’s work experience as it relates to agriculture includes work as a project manager for Campito, LLC, and the installation of an irrigation system on 63 acres, preparation of grove lands and the planting of 300 apple, nut and cherry trees. Founder also owned and operated several businesses, including a law practice, apartment house, office building and guided horseback tours. He has studied vermiculture, bee keeping, biodynamic farming, plant and soil science and operated a pilot compost operation.
Contact information: James E. Miller P. O. Box 1172, Belgrade, MT 59714 Cell phone: 406-570-9346 Email: jimmiller5417@yahoo.com; jemiller@montana.edu
[As of 12/17/09, contact information is: Mail: 103 Methodist St., Cecilia, KY 42724; Phone: 270-300-1944; email: jimmiller5417@gmail.com.]
ATTACHMENT 1 68 ACRES
1. Location: Deemer Creek Road, Plains, MT.; TRS: 20 N, 25 W, 30 DBA; Lat: 47.4610; Longitude (dd) -114.8263; Geomethod: TRS-SEC; Datum: NAD27
2. Water rights: DNRC 53656
3. Size: 69 acres
4. Access: Legal access directly to Deemer Creek Road, a dedicated county road.
5. Elevation: 2400’ above sea level 6. Climate zone: 7. Weather: Low: Average Low: Average: Average high: High: 8. Precipitation: Low: Average Low: Average: Average high: High: 9. Soil type: Top six inches: Depth of top soil: 24” Bottom six inches: Below bottom of topsoil to six feet: 10. Soil Mineral content: See report from ___ dated ___ 11. Soil microbrial content: See report from ___ dated ___ 12. Well information: Well log on 10 acres next door: Date: 1981, depth: 279 feet; static water level: 82 feet; Pumping water level: 235 feet; Driller: ____, Lic. No. 023; GPM: 40; Recovery time: ___; well diameter: ____; casing size: 6”; Source: Montana Bureau of Mines and Geology: http://mbmggwic.mtech.edu/oldata/opSite.asp?gwic_id=74994$agency=mbmg&session=.... 13. . 14. . 15. . 1
6. ATTACHMENT 2 OWNED MACHINERY, EQUIPMENT, TOOLS AND SUPPLIES
The following items owned by the Home Grown Organics will be employed as tools of the trade and/or personal use: 1. Vehicles and trailers: 1.1. 1985 Ford F250, 4 x 4, flatbed truck with heavy duty pull hitch and gooseneck hitch 1.2. 1993 Toyota SR5, 4x4 with hitch, lumber rack and cross-bed tool box. 1.3. Honda ATV, 4 x 4, 1991 with racks and hitch 1.4. Office trailer, 25 foot. 1.5. Equipment trailer, gooseneck 2. Machinery: 2.1. Tracked, mini-excavator (Airman, similar to Gehl GX-22), with 12’ boom, dirt blade. 2.2. One yard cement mixer 2.3. Pressure washer 2.4. Chipper/shreader, 8 Hp. 3. Equipment: 3.1. Cargo container – storage 3.2. Shop tools and equipment 3.3. Hobart Handler MIG welder 3.4. Gas torch and welding kit 3.5. Woodworking shop equipment 3.6. Metal shop equipment 3.7. Computer system 3.8. Office furniture and equipment 3.9. Air compressor 3.10. Air tools 4. Supplies and misc.: 4.1. Reference library 4.2. Steel forms, stakes 4.3. Electrical and plumbing supplies 4.4. Misc. construction supplies ATTACHMENT 3 ADDITONAL MACHINERY, EQUIPMENT AND TOOLS NEEDED 1. Machinery: 1.1. Tracked loader with one bucket: Gehl 1.2. Loader accessories: 1.2.1. Auger (could rent) 1.2.2. Cement mixer (could rent) 1.2.3. Rototiller (buy) 1.2.4. Trencher (could rent) 1.2.5. Dozer blade – six way (buy) 1.2.6. Bucket with grapple tines, with plate attachment over tines 1.2.7. Forks, adjustable sideways on attachment plate. 1.3. Add thumb to tracked excavator (design and build), new hydraulic circuit. 2. Equipment: 2.1. Propane weed torch, hose, and 100 lb cylinder 2.2. Spray rig on ATV trailer, gas engine with 100 tank. 2.3. Hazelnut husker (design and build) 2.4. Hazelnut sheller (design and build) 2.5. Oil press, screw type or hydraulic (could rent or sub-out, especially in early years; candidate for design and build hydraulic press – 10,000 psi) 2.6. Shaker screen for rock/soil separation (used or could rent) 2.7. Vacuum, trailer mounted (used or could rent) 2.8. Laser transit (used or could rent) 2.9. Cargo/dump trailer for ATV (design and build) 2.10. Cargo/dump trailer for F250, 5 ton (design and build) 2.11. Trammel screen for vermiculture operations (design and build) 2.12. Bagger for composting operation (design and build) 2.13. 6500 watt portable generator with frame and wheels. 2.14. 3. Tools: 3.1. Welding and cutting: Oxy bottle, acetylene bottle; bottle cart. 3.2. Flow meter for Hobart Handler; welding cart 3.3. Hot sealer for plastic bags for compost operation 3.4. . 4. Supplies: 4.1. Pallet totes for composting operation 4.2. Bags and labels for composting operation 4.3. Pallets for composting operation 4.4. Industrial plastic cling wrapping rolls for wrapping bags on pallets. 4.5.
HOME GROWN ORGANICS BUSINESS PLAN
Draft 6/13/04
1. OVERVIEW
Home Grown Organics will create and operate a viable, self-sufficient, sustainable farmstead, using biodynamic farm management practices. Home Grown Organics will seek organic certification from the State of Montana as soon as can be arranged. The products of the farm will be those which supply niche markets with higher than average rates of return. The primary products will be hazelnuts, chestnuts, heartnuts, apples, cherries, blueberries, huckleberries, elderberries, essential oils, canola seeds and other oil seeds. Value added farm products will be biofuel, potting soil, potted plants, and greenhouse products. After the initial tree planting, building construction, irrigation works are completed; small animals will be added to the farmstead so as to provide self-sufficiency and added farm income.
The application is for the land acquisition loan and the infrastructure loan.
The Land acquisition costs are estimated:
Payment to seller, buyer’s escrow and closing costs: $126,000
Appraisal fees: 500
Due diligence examination 500
Soil tests 400
Loan origination fee 700
Total: $127,400
The infrastructure cost is estimated:
Site preparation including grading and roads $15,870
Machinery, equipment, tools and supplies 32,000
Cultivars and planting 20,000
Water system including well and irrigation system 28,600
Fire water system 2,230
Subtotal: 69,900 Rounded to 70,000
Barn construction estimated cost 130,000
Total Infrastructure costs: 200,000
2. LAND AND SITE PREPARATION
2.1. Land. The target real property is 68 acres in Sanders County, MT, northeast of Plains just off Highway 28 on Deemer Creek Road. The property will be supplied with well water, is sloping and is not fenced.
2.2. Solar aspect. The major face of the property is mostly south facing (about one-half,) about a quarter is east facing and about a quarter is northeast facing. It is in the low foothills northeast of Plains. This type of location and orientation was recommended by Cato, 2,200 years ago. http://www.kal69.dial.pipex.com/shop/system/index.html
2.3. Public access. It fronts on Deemer Creek Road, a unpaved, county road which becomes paved for a short distance to Hwy 28. The intersect of Deemer Creek Road and Highway 28 is less than one mile to Highway 200, the main east-west access to Highway 93 and U.S. 90.
2.4. Survey. The parcel is being surveyed. The property is being surveyed by the seller, the completion of which is a condition to close of escrow.
2.2. Internal roads. The property will be graded so as to provide an access road from Deemer Creek Rd., to the top of the hill and a second road for internal agricultural uses. Terraces will be graded on the contour, which terraces will be planted with groves and also used for berries bushes and truck garden. Much of the land will be ungraded and planted with larger, nut bearing trees.
2.3. Fencing. The predation of the crops by predators will be reduced by construction of an eight foot, electrical fence around the entire property. The ungraded portions dedicated to large nut trees will be developed so as to protect the trees from sheep, goat and poultry pasturing.
3. BUILDING
3.1. Multipurpose barn. The multipurpose barn will be a three story barn, 48 feet wide and 100 feet long. The structural walls will be made of structural insulated panels (SIP). Steel trusses will support the roof structure which will be part SIP and part greenhouse roofing.
The construction will be energy efficient and will be heated by hydronic panels in the floors (radiant heating). The barn will have the following layout and uses:
3.1.1. First floor. The first floor will have the following uses:
3.1.1.1. Maintenance. A maintenance shop will provide for maintenance and repair of all farm equipment, tools and vehicles. Shop size will be 48 (width of the building) x 20 x 12
3.1.1.2. Cooling room. The cooling room is used to cool freshly harvested crop and for longer term storage after processing and packaging. The size will be 48 x 32 x 12. Field pallet boxes, 4 x 4 x 2 tall, will be stacked five high. This room can hold 250 field boxes (maximum). However, shelving for small delivery boxes will invade some of this space.
3.1.1.3. Drying. A drying room will be configured for dehydration of food with hot air produced by a Econo Heat forced air heater. This climate and humidity controlled room will be 48 x 10 x 12, less extra insulation. Fresh air, which has been dehydrated by the chiller, will receive the moisture from the products being dehydrated.
3.1.1.4. Food processing and packing areas There will be food processing and packaging areas to process the nuts, fruit, vegetables and other farm products. Shop size will be 48 x 20 x 12.
3.1.1.5. Energy flywheels. Two well insulated tanks, of 5000 gallons each, will be housed in the shed so as to provide for thermal energy storage tank flywheel, one for the boiler and one for the chiller. These tanks could be put in a basement of the shed, on the east side of the main floor retaining wall, below the furnace and the chiller room. An alternative to consider is not to use steel tanks, but build concrete cisterns below the furnace and chiller room, with suitable insulation on the outside of the concrete on all six surfaces. Manholes from the furnace/chiller room would provide access to the inside of the tanks for installation and maintenance of the heat exchangers.
3.1.1.6. Bathroom and lounge. A bathroom lounge and mud room will be located next to the south wall. The size of the combined rooms will be 48 x 10 x 8. The bathroom will be unisex and have toilet, shower and lavatory areas separated by partitions.
3.1.1.7. Handicap. All areas of the first floor will be wheelchair accessible. A three story lift will provide access from the first to the upper floors.
3.1.1.8. Storage. The space above will be accessible from the shed for storage of long lumber, pipe and agricultural supplies and materials. Cages riding on rails will be built so that the entire contents can be rolled out on the pavement to the east so as to provide ready access. The size of the cages will be is 4’ x 4’and various lengths to accommodate the materials being stored. Angle iron embedded in the floor of the ceiling to the bath, mud room and lounge, then carried out to the shed and, if necessary, into the pavement for the parking lot further to the east.
3.1.2. Second floor
3.1.2.1. Offices The second story will house an office for the farm, with desks, computers, file cabinets, and other office equipment. The offices will be in the center section and will be about 48’ x 40’ including a hallway connecting the two apartments.
3.1.2.2. Living quarters Two living units will be built in the second floor. Each will be a two bedroom, one bath apartment. They will be located at each end of the second floor. Each will be about 48’ x 30’ or 1440 sq. ft.
3.1.2.3. Access. There will be outside stairs on each end of the building and one set in the middle on the west side. Additional doors will allow access from the apartments and the offices directly into the shed on the east side of the building. The doors into the operations where fire is a danger will be self closing, two hour fire rated doors.
3.1.2.4. Fenestration. Dual pane, energy efficient windows will be installed in the east, west and north walls of the second floor. Canvas awnings above each window will provide shade in the summer and can be retracted for the winter. Sunscreens will also be considered to reduce the summer heat transfer.
3.1.3. East extensions. A shed structure will be built along the easterly wall, with the foundation on the fill behind the first floor retaining wall. The ridge of the shed will connect with the middle part of the east side of the third floor. This connection will allow for a row of upper windows in the third floor so that eastern light can bath the greenhouse plants. This extension will serve the following uses:
3.1.3.1. Distillery and Biodiesel production. The distillery and biodiesel production plant will be at the south end of the building. The distillery will produce ethanol to supply the biodiesel, value-added farm product operation.
3.1.3.2. Essential oil extraction. Essential oils will be extracted by hot water, filtered and concentrated for human use. Some of the plants providing feedstock for the essential oils will be grown in the greenhouse so as to provide year around feedstock. This use will be located next to the boiler room. 3.1.3.3. Furnace and chiller room A firewalled section of the shed will house the furnace room with a water boiler will provide for building heat and hot water for processing essential oils, ethanol, and biodiesel production. It will also house the chiller which will provide chilled water for general building use and for the coolers on the first floor. 3.1.3.4. Storage. A storage area will store tools, equipment, business records, seed, and other office related items.
3.1.4. Third floor
3.1.4.1. Greenhouse The third floor will be an intelligent greenhouse. Steel trusses will support SIP roofing panels. The polycarbonate crystal panels will be installed as skylights in the roof and will be operated as part of the intelligent greenhouse. Production of crops will be year around in the climate controlled greenhouse.
3.1.5. Clean water Snow melts and rain water from the roof will be stored for use in the greenhouse. 3.1.6. Clean domestic water Snow melt and rain water from the roof will be stored for domestic potable water use.
3.1.7. Fire system: Fire and smoke alarms will be installed. Emergency exits will be through windows on the east side via chain ladders, the heads of which will be attached to the wall below the window frames.
3.2. Pump house A small pump house will be constructed in connection with a drilled well to be located on the southwest corner of the property for both irrigation and domestic purposes. The well will be drilled to 300 feet and the pump set at 250 feet. The pump will supply a 2500 gallon above ground storage tank next to the pump house. This tank will connect to a four inch line through a gate valve to a fire hydrant placed at the edge of the driveway connection to Deemer Creek Road. A second pump will supply a 10,000 gallon tank to be set at the highest point on the property along the northeasterly boundary. This tank will supply gravity flow for irrigation and domestic use and also be connected through a gate valve to a four inch pipe to a fire hydrant at the top of the property.
3.3. Co-housing. A pad for a future duplex will be graded at the top of the property near the knoll toward the easterly side of the saddle. On this pad will be constructed the “Lodge” as more fully described in the “Econo Campus”. A second pad for a four plex will be graded on the bench north of the saddle. The saddle area will be reserved for vehicular access and overflow parking. All units will have under-the-story garages for automobiles
4. CROPS The plan is to become a certified organic farm for all of our products. We will use the best practices for biodynamic farming which are cost effective.
4.1. Groves. Groves of apple, cherry, nuts and other suitable bearing trees will be planted. The irrigation will initially be subsurface soaker hose. General advice on all aspects of grove and plant management: Fruit and Nut Cultivars for Home Plantings Published by University Extension, University of Missouri-Columbia. http://muextension.missouri.edu/explore/agguides/hort/g06005.htm Disease Pest Topics: http://entomology.montana.edu/extension/diseatoc.htm
4.1.1. Apples. The preferred varieties Arkansas Black, Enterprise, Jonafree, Pristine, Red Delicious, and William’s Pride.
4.1.1.1. Apple Scab; http://entomology.montana.edu/extension/diseatoc.htm
4.1.2. Cherries. The cherry tree varieties will be selected which are best suite to the soil, the climate and market potential. Current choices are Lapin and Meteor. Diseases/disorders Royal's Postharvest Use Canceled For Stone Fruit by Melissa Hansen (link to Good Fruit Grower archives) Quarantine Treatment For Sweet Cherries by Lisa Neven, Stephen R. Drake (link to Good Fruit Grower archives) New Generation of Postharvest Biocontrols Coming by Good Fruit Grower (link to Good Fruit Grower archives) USDA Replicates Tests on Cherries For Japanese by Dr. Hal Moffit (link to Good Fruit Grower archives) Postharvest Diseases of Cherries by Dr. Eugene Kupferman, Postharvest Specialist Postharvest Diseases of Cherries by Mike Willett(1), Gene Kupferman(2), Rodney Roberts(3), Robert Spotts(4), Dave Sugar(5), Gary Apel(6), Hugh W. Ewart and Bill Bryant (7) Reduction of Surface Pitting in Sweet Cherries by Kim D. Patten and Max E. Patterson(1) and Eugene Kupferman(2) Harvest In-Field Hydrocooling Cherry Temperature Management by Craig Young(1) and Dr. Eugene Kupferman(2) Postharvest Diseases of Cherries by Mike Willett(1), Gene Kupferman(2), Rodney Roberts(3), Robert Spotts(4), Dave Sugar(5), Gary Apel(6), Hugh W. Ewart and Bill Bryant (7) An Introduction to Cherry Quality and Handling by Dr. Eugene Kupferman, Postharvest Specialist I appreciate the information provided to me by Dr. Max Patterson, Professor and Horticulturist, Washington State University Improving Quality, Flavor & Color Optimizing Cherry Stem Quality by Joanne L. Schick and Peter M. A. Toivonen The 3rd International Cherry Research Symposium by Gregory Lang (link to Good Fruit Grower archives) Quarantine Treatment For Sweet Cherries by Lisa Neven, Stephen R. Drake (link to Good Fruit Grower archives) New European Cherry Cultivars Deserve Attention by Lynn Long (link to Good Fruit Grower archives) USDA Replicates Tests on Cherries For Japanese by Dr. Hal Moffit (link to Good Fruit Grower archives) Irradiation May Be Viable Option For Cherry Export by Geraldine Warner (link to Good Fruit Grower archives) Cherry Damage Surveys in 1993 by Dr. Eugene Kupferman, Postharvest Specialist In-Field Hydrocooling Cherry Temperature Management by Craig Young(1) and Dr. Eugene Kupferman(2) Forced Air Cooling of Cherries by Henry Waelti, WSU Extension Agricultural Engineer An Introduction to Cherry Quality and Handling by Dr. Eugene Kupferman, Postharvest Specialist I appreciate the information provided to me by Dr. Max Patterson, Professor and Horticulturist, Washington State University Cherry Quality Research Summary by Dr. Eugene Kupferman, Postharvest Specialist Reduction of Surface Pitting in Sweet Cherries by Kim D. Patten and Max E. Patterson(1) and Eugene Kupferman(2) Marketing The Apple and Cherry Industry of Chile by Dr. Juan Pablo Zoffoli (requires Adobe Acrobat Reader) Northwest Cherry Production Could Double by Melissa Hansen (link to Good Fruit Grower archives) Cherry Production is Expanding In Chile by Luis Valenzuela, Translated by Dr. Fredrick J. Smith (link to Good Fruit Grower archives) Importance of Methyl Bromide to Cherries by Good Fruit Grower (link to Good Fruit Grower archives) Worldwide Market Potential and Technical Barriers for the Export of Stone Fruit by Nick Kukulan, President, Paramount Export Company and Dr. Mike Willett, Technical Issues Manager, Northwest Horticultural Council USDA Replicates Tests on Cherries For Japanese by Dr. Hal Moffit (link to Good Fruit Grower archives) Access to Japanese Market Means Waiting by Good Fruit Grower (link to Good Fruit Grower archives) Irradiation May Be Viable Option For Cherry Export by Geraldine Warner (link to Good Fruit Grower archives) Organic/IPM Handling Organic Fruit by Miles McEvoy Packing Cherry Damage Surveys in 1993 by Dr. Eugene Kupferman, Postharvest Specialist Postharvest Diseases of Cherries by Dr. Eugene Kupferman, Postharvest Specialist Cherry Warehouse Survey Report, 1988 by Dr. Eugene Kupferman and Postharvest Specialist and Robert C. Ebel, Research Technician Postharvest Diseases of Cherries by Mike Willett(1), Gene Kupferman(2), Rodney Roberts(3), Robert Spotts(4), Dave Sugar(5), Gary Apel(6), Hugh W. Ewart and Bill Bryant (7) Storage Cherry Warehouse Survey Report, 1988 by Dr. Eugene Kupferman and Postharvest Specialist and Robert C. Ebel, Research Technician Factors of Loss and The Role of Heat Removal for Maximum Preservation of Sweet Cherries by Dr. Max E. Patterson, Professor and Horticulturist Forced Air Cooling of Cherries by Henry Waelti, WSU Extension Agricultural Engineer Transportation/shipping Irradiation May Be Viable Option For Cherry Export by Geraldine Warner (link to Good Fruit Grower archives) Some links from this page may be to information presented at the 18th Annual Washington Tree Fruit Postharvest Conference. Paid attendees of the conference can view this information with a password. Others may obtain a password from the Washington State Horticultural Association http://postharvest.tfrec.wsu.edu/generic.php?article=ulapin 4.1.3. Berries. Candidate berry cultivars are the blueberry, huckleberry, raspberry elderberry and Indian ice cream berry. Investigation into other candidate barriers continues. 4.1.3.1. Native Northwest Berry Candidates: http://www.wellsgray.ca/berries.html Huckleberry Taste Rating: 9/10 Where found: moderately shady forest, very common Season: Mid-July to Late August depending on the area The Huckleberry is in the opinion of many (including, no doubt, Huckleberry Finn), among the finest of fruits. They start to ripen up first in Mid-July on the trails near the town of Clearwater, such as Candle Creek Trail, The River Trail, Spahats Creek. Towards the end of July they are at their prime on the Flatiron Trail, and trails around the Murtle River. Further North in the park they reach their peak in Early August. Identification: Dark blue to black berries around 1 cm diametre, with a smooth depression on the end where the flower was attached. On bushes 30-60 cm high. Look-alikes: there are few, but could be confused with black twinberry, which has similar berries, but always in pairs with showy red bracts at the base of each berry. Black twinberry is inedible, but not seriously poisonous. Blueberry Taste Rating: 7/10 Where found: Sunny forest, forest edges Season: August Wells Gray's Blueberries are usually a bit too sour, but still worth eating, and excellent for pies and jams. Easy to identify because of their powdery blue colour which rubs off. The only other fruit which has this powdery blue is Oregon grape, or Mahonia, which also is edible, but even more sour! Oregon grape, however, has distinctive holly-like evergreen leaves. Saskatoon Taste Rating: 7/10 Where found: Sunny forest, edges Season: Mid-July to mid-August Saskatoon were a favourite of interior native peoples. The Secwepemc name for saskatoon translates as "real berry." Bears seem to agree, black bears often frequent areas where there are lots of saskatoons. The fruit is sweet and if you chew the seeds you may notice an almond-cherry flavour. Good places to look for Saskatoon include Ray Farm, the beginning of Bailey's Chute trail, and around the Clearwater Lake camground. Identification: Fruits start red, but turn dark blue-black when ripe. The best identifying feature is probably the remains of the flower that always hangs onto the end of the fruit, similar to a rosehip. Saskatoons grow on shrubs often several metres high, the leaves are round-oval with a delicate blue-green colour and triangular teeth near the end. Wild Strawberry Taste Rating: 10/10 Where found: Dry, open areas. Roadsides. The Canyonlands. Season: June-July The progenitor of the cultivated strawberry. Enough said. Look for it along roadsides and in dry open fields around late June. A fleshy red fruit with little seeds stuck on the outside. Nothing looks like strawberries but strawberries. Thimbleberry Taste Rating: 7/10 Where found: Open areas. Roadsides. Common. Season: Late July-Aug Thimbleberries are really a type of raspberry. The best description for the flavour is that of raspberry jam that needs more sugar. Some love 'em, some don't. It pays to love them, though, because there are lots of them, everywhere. Because they're a kind of raspberry it's easy to identify them - the fruit is a conglomerate of tiny round red fruits or 'drupelets.' The leaves of thimbleberry are maple-shaped. Look-alikes: none really, but remember that you're looking for raspberry type fruits. If you just look for red berries and maple-shaped leaves you could mistake it for devils club, which is spiky and has indedible fruits. Raspberry Taste Rating: 10/10 Where found: Very open areas. Disturbed areas. Uncommon in the park. Season: July-Aug Everyone knows rasberries, right? The fruit is a conglomerate of tiny round red fruits or 'drupelets.' The leaves are three-part compound leaves. Unmistakeable and delicious. Soopolalie – Indian ice Cream Berry Taste Rating: 3/10 Where found: Dry, sunny forest, forest edges Season: Mid-June to July Some people like it. Not many, admittedly. It seems to be an acquired taste, since the interior native peoples considered it a great treat. Another name for it is Soap-berry, some say because it tastes like soap, but more likely because the berries can easily be whipped to a foam which has optimistically been called Soopolallie, Shepherdia canadensis, sxusa (E) sxusem (W) The berries ripen any time from May to August depending on the elevation and latitude. The people usually harvested them by placing a mat tray or bucket beneath the branches and whacking the branches sharply with a stick, so that the berries fell onto the mat. All native groups whip up the berries with a little water into a light froth called ‘Indian Ice cream’. The berries are rich with iron and were either eaten fresh or dried for later use, or boiled into syrup for use as a beverage. Berries were an important trade item and are still valued as gifts. The Secwepemc used the berries, juice, twigs, or leaves medicinally for everything from heart attacks to indigestion, including acne, boils and even gallstones. Most importantly, the sticks were valued as a purgative. The name ‘soopolallie’ is Chinook for ‘soap’ berry. The plant is so-named because the berry pulp is soapy to the touch and ‘soapberry’ is another common English name for it. Other common names are ‘buffalo berry’, ‘hooshum berry’ and ‘bear berry.’ http://www.secwepemc.org/SECethnogardens2/dry_land_garden.htm Indian Ice Cream Recipe: Use 250 ml of canned soapberries (sxusem) berries and place the berries in a large bowl. Beat the soapberries berries with a whisk or electric mixer. To sweeten add strawberry, raspberry or saskatoon berry juice. Or you can add about 50 ml of sugar (or enough for your taste). Continue beating until it looks like pink ice cream. 4.3.7. .
4.1.4. Nuts. The nut trees are: hazelnut, chestnut, and butternut. Other possible varieties are hickory and the whitebark pine. The latter trees are good windbreaks and produce nuts which birds and ground animals can harvest for their winter fat needs. ”Research is in progress to identify the best genotypes for the region and to develop methods to grow and harvest these crops. The upper Midwest could become one of the leading producers of these new crops over the next 20 years. The Midwest Nut Producers Council, in cooperation with Purdue University and Michigan State University, has established cultivar evaluation plantings of chestnuts and filberts. More information can be obtained from Steve Wozniak, MNPC President at (313) 277-1633. “ http://www.hort.purdue.edu/newcrop/NewCropsNews/93-3-1/fruitnut.html
4.1.4.1. Chestnuts: A READY-TO-EAT CHESTNUT FLOUR BASED BREAKFAST CEREAL. PRODUCTION AND OPTIMIZATION. http://www.actahort.org/books/494/494_7.htm “Chestnuts are receiving wide recognition as a highly nutritious food. Unlike other nuts that are over 50% fat, chestnuts contain less than 5% fat, are higher in complex carbohydrates and lower in protein. They are more like potatoes or grain than nuts, and can be consumed in many different ways. Fresh or roasted chestnuts are sweet and nutritious snacks. Chestnuts in stuffing, casseroles, or as vegetables are popular. The nuts can be dried and ground into a flour that is used in cooking. “Chestnut production is increasing rapidly in the U.S. and will continue to do so in response to the large imports of this crop. Growers in the Great Lakes region have planted more than 200,000 chestnut trees over the past five years, with the first nut harvest in 1990. Projections are for a million pound crop by the end of the decade. The U.S. imports 20 million pounds annually at a value of $30 to 50 million. There is a shortage of chestnuts on the market, and many markets are not being supplied now. It is obvious that the potential for commercialization in the Midwest is tremendous. “ JEM: MONTANA TOO! http://www.hort.purdue.edu/newcrop/NewCropsNews/93-3-1/fruitnut.html http://muextension.missouri.edu/xplor/agguides/hort/index.htm
4.2. Truck Garden. There will be truck gardens, herbs for fresh use and for production of essential oils. Grove layout will allow for the planting of berry low bush plants and truck garden crops between the nut trees as a lower canopy. Truck gardening in the intelligent greenhouse will continue year around.
4.3. Sustainable Small-scale Nursery Production. Small scale nursery production in the form of small container pots will be considered and most likely adopted as a value added crop. These small container plants will designed for sale to the retail trade and sold concurrently with the other production at the Farmer’s markets. Our merchandizing plan is to create a space in the display trailer for small containers – very bright, good looking plants – samples mostly. Have in the storage, the ones for sale, in different sizes. Buyer from Lawyer and resell. Instant cash flow and profit. Very little loss due to spoilage. Sell as organically raised starter plants. Make sure our source is certified organic.
4.4. .
5. LEGAL The legal structure will be as follows: Home Grown Organics’ founder, James E. Miller, will form a Montana limited liability company under name of “Home Grown Farms, LLC”, which will acquire title to the land and execute all loan and related instruments. James E. Miller will be the initial owner of all of the equity in the LLC. Home Grown Organics will offer partnerships to other persons who will be personally hands-on in the enterprise and whose status and qualifications are acceptable to the founder, and then existing partners and to any lender whose loan terms require such approval. An alternative is to vest title in a 501.c.3 land trust.
6. FINANCING. Financing will be achieved by funding through the USDA direct loan under the Beginning Farmer program and such other programs as are appropriate. Home Grown Organics will transfer to the LLC, title to the tools and equipment listed on Attachment 2 at the values shown, some of which will be funded by the USDA loans. The debt service will be made by a combination of non-farm income, farm income and a 504 loan or other in second position.
7. OPERATIONS Operations of the farm will be as follows:
7.1. Management Home Grown Organics will provide all management services, including marketing, sales, accounting, banking, legal, regulatory, crop management, construction management, information management and risk management. He will also provide a portion of the field labor. Home Grown Organics will employ a CPA or enrolled agent to prepare tax returns.
7.2. Labor Farm labor will be by founder and other worker member partners when and as needed for the operations. When the fruit and nut trees go into nearly full production, partners will be full time and housed on the property.
7.3. Equipment Home Grown Organics’ equipment will be used in the development of the irrigation system, the grove lands and construction. Other equipment will be rented as needed. Home Grown Organics’ equipment is listed on Attachment 2 which constitute part of the founder’s equity in the business. Additional equipment needed is listed on Attachment 3.
7.4. Marketing and Sales Marketing of all products will include:
7.4.1. A website, a Yahoo store front with ecommerce, eBay and other auction websites and WWW directories.
7.4.2. Home Grown Organics will either create or join a community supported agricultural (CSA) organization.
7.4.3. Home Grown Organics will likely market some of its apples and cherries through local marketing cooperative organizations.
7.4.4. Fresh fruits and vegetables will be marketed at local and regional farmer’s markets, central produce facilities, restaurants and commercial kitchens and institutions.
7.4.5. Products which are unsold or are seconds will be dehydrated and packaged for bulk use. Eventually, these products will be produced as consumer snack food, packaged and sold directly to consumers. These products include fruit jerky, pemmican, oils, syrups, flour, nutbutter, seasonings and similar products.
7.4.6. Byproducts, agricultural wastes and food wastes will be ground and composted.
7.5. Transportation and distribution
7.5.1. Home Grown Organics intends to create a farmer-led CSA whereby sales will be conducted by each farmer member of the production from all of the other farmer members. Sales will be made out of a special trailer which is so designed as to provide transportation, storage and display of the products at farmer’s markets. These trailers will be towed by the cargo trucks to the farmer’s markets at which distribution to the CSA members will also take place.
7.5.2. At the outset, transportation will be by Home Grown Organics’ Ford F250 truck and trailer.
7.5.3. As production increases, a refrigerated cargo truck with a lift-gate will be purchased for fresh food transportation. Local storage will be inside the barn.
7.5.4. Home Grown Organics has an insulated cargo container (8’ x 8’ x 20’) which can be fitted with a refrigeration unit and used for cold storage.
8. FINANCIAL PROJECTIONS
Financial projections of capital cost, income and expense and cash flow are set forth in Attachment 3. In summary, the grove operation will be on the break even plane for approximately six years, during which the groves are not producing fruit and nuts. Immediate farm income will be generated from the greenhouse operations, truck garden, the biofuel operations and the essential oils production. Non-farm income will be supplied by a combination of founder’s social security benefits and other sources. Home Grown Organics is prepared to engage in a ceramic tile setting business and general building contracting business using Structural Insulated Panels. Home Grown Organics also has the option of gaining a law license in Montana and engaging in a part-time law practice.
9. SCHEDULE
9.1. Founder, James E. Miller: Currently (3/11/2005), the founder is enrolled as a student at Montana State University, Bozeman, and is seeking Bachelors of Science degree in Agricultural Operations Technology through the Department of Agriculture. He has upper division standing and expects to graduate in December of 2006. The prosecution of this schedule will not materially interfere with the creation of the biodynamic farm. Schooling at MSU could be delayed if necessary.
9.2. Land acquisition Land acquisition, if completed as soon as possible which will allow for grading, the installation of the irrigation system, and the construction of the barn and ordering of the fruit and nut trees. The grove lands can be prepared for planting, the compost can then be created. The fish pond will also be rough graded in connection with grove preparation.
9.3. Irrigation facilities During the summer and into the winter, the major portion of the irrigation facilities can be constructed, consisting of the fish pond, pump house and pump equipment, and major components of the grove irrigation and field crop irrigation facilities. When the trees are planted, the remaining portion of the grove irrigation facilities can be installed.
9.4. Multi-purpose barn The main structures of the multi-purpose barn will be constructed during the summer and early fall of 2004. The interior of the floors will be built during the winter built out in the following order: Greenhouse, second floor residences and first floor furnace room with boiler equipment. The balance of the first floor will be built in generally the following order: storage (mainly shelving), maintenance shop, distillery and essential oil extraction plant.
9.5. Biofuel The biofuel plant is to be housed in a 53 food cargo fifth wheel trailer. Home Grown Organics’ target date is to be in operation in July, 2005. 9.6. Truck garden production Truck garden operations will begin next spring, with harvesting and sales running concurrently with the maturity of the various crops.
10. PERSONAL HISTORY AND QUALIFICATIONS
James E. Miller’s (“Founder”) personal history and qualifications are set forth in Attachments 4 and 5. Briefly, Founder is qualified by his education and work experience. His education includes a B.A. degree from Stanford University (tri-major in history, political science and economics), a J.D. degree from Stanford Law School, and several courses taken at local educational institutions. Currently, Founder is pursuing a degree in Biotechnology from the Department of Agriculture, Montana State University, Bozeman, MT. His intended graduation date is December, 2005. Founder has extensive experience in all phases of land acquisition, design and construction of buildings and enterprise creation and management. The groves will take three years to begin production of fruit and nuts and six to seven years to reach full production. Founder is beneficially using the interval of time to gain knowledge of biodynamic farming, build his marketing organization, complete the land acquisition, build the structures and prepare the land for the groves and grow organic vegetables for the regional organic market. Founder’s work experience as it relates to agriculture includes work as a project manager for Campito, LLC, and the installation of an irrigation system on 63 acres, preparation of grove lands and the planting of 300 apple, nut and cherry trees. Founder also owned and operated several businesses, including a law practice, apartment house, office building and guided horseback tours. He has studied vermiculture, bee keeping, biodynamic farming, plant and soil science and operated a pilot compost operation.
Contact information: James E. Miller P. O. Box 1172, Belgrade, MT 59714 Cell phone: 406-570-9346 Email: jimmiller5417@yahoo.com; jemiller@montana.edu
[As of 12/17/09, contact information is: Mail: 103 Methodist St., Cecilia, KY 42724; Phone: 270-300-1944; email: jimmiller5417@gmail.com.]
ATTACHMENT 1 68 ACRES
1. Location: Deemer Creek Road, Plains, MT.; TRS: 20 N, 25 W, 30 DBA; Lat: 47.4610; Longitude (dd) -114.8263; Geomethod: TRS-SEC; Datum: NAD27
2. Water rights: DNRC 53656
3. Size: 69 acres
4. Access: Legal access directly to Deemer Creek Road, a dedicated county road.
5. Elevation: 2400’ above sea level 6. Climate zone: 7. Weather: Low: Average Low: Average: Average high: High: 8. Precipitation: Low: Average Low: Average: Average high: High: 9. Soil type: Top six inches: Depth of top soil: 24” Bottom six inches: Below bottom of topsoil to six feet: 10. Soil Mineral content: See report from ___ dated ___ 11. Soil microbrial content: See report from ___ dated ___ 12. Well information: Well log on 10 acres next door: Date: 1981, depth: 279 feet; static water level: 82 feet; Pumping water level: 235 feet; Driller: ____, Lic. No. 023; GPM: 40; Recovery time: ___; well diameter: ____; casing size: 6”; Source: Montana Bureau of Mines and Geology: http://mbmggwic.mtech.edu/oldata/opSite.asp?gwic_id=74994$agency=mbmg&session=.... 13. . 14. . 15. . 1
6. ATTACHMENT 2 OWNED MACHINERY, EQUIPMENT, TOOLS AND SUPPLIES
The following items owned by the Home Grown Organics will be employed as tools of the trade and/or personal use: 1. Vehicles and trailers: 1.1. 1985 Ford F250, 4 x 4, flatbed truck with heavy duty pull hitch and gooseneck hitch 1.2. 1993 Toyota SR5, 4x4 with hitch, lumber rack and cross-bed tool box. 1.3. Honda ATV, 4 x 4, 1991 with racks and hitch 1.4. Office trailer, 25 foot. 1.5. Equipment trailer, gooseneck 2. Machinery: 2.1. Tracked, mini-excavator (Airman, similar to Gehl GX-22), with 12’ boom, dirt blade. 2.2. One yard cement mixer 2.3. Pressure washer 2.4. Chipper/shreader, 8 Hp. 3. Equipment: 3.1. Cargo container – storage 3.2. Shop tools and equipment 3.3. Hobart Handler MIG welder 3.4. Gas torch and welding kit 3.5. Woodworking shop equipment 3.6. Metal shop equipment 3.7. Computer system 3.8. Office furniture and equipment 3.9. Air compressor 3.10. Air tools 4. Supplies and misc.: 4.1. Reference library 4.2. Steel forms, stakes 4.3. Electrical and plumbing supplies 4.4. Misc. construction supplies ATTACHMENT 3 ADDITONAL MACHINERY, EQUIPMENT AND TOOLS NEEDED 1. Machinery: 1.1. Tracked loader with one bucket: Gehl 1.2. Loader accessories: 1.2.1. Auger (could rent) 1.2.2. Cement mixer (could rent) 1.2.3. Rototiller (buy) 1.2.4. Trencher (could rent) 1.2.5. Dozer blade – six way (buy) 1.2.6. Bucket with grapple tines, with plate attachment over tines 1.2.7. Forks, adjustable sideways on attachment plate. 1.3. Add thumb to tracked excavator (design and build), new hydraulic circuit. 2. Equipment: 2.1. Propane weed torch, hose, and 100 lb cylinder 2.2. Spray rig on ATV trailer, gas engine with 100 tank. 2.3. Hazelnut husker (design and build) 2.4. Hazelnut sheller (design and build) 2.5. Oil press, screw type or hydraulic (could rent or sub-out, especially in early years; candidate for design and build hydraulic press – 10,000 psi) 2.6. Shaker screen for rock/soil separation (used or could rent) 2.7. Vacuum, trailer mounted (used or could rent) 2.8. Laser transit (used or could rent) 2.9. Cargo/dump trailer for ATV (design and build) 2.10. Cargo/dump trailer for F250, 5 ton (design and build) 2.11. Trammel screen for vermiculture operations (design and build) 2.12. Bagger for composting operation (design and build) 2.13. 6500 watt portable generator with frame and wheels. 2.14. 3. Tools: 3.1. Welding and cutting: Oxy bottle, acetylene bottle; bottle cart. 3.2. Flow meter for Hobart Handler; welding cart 3.3. Hot sealer for plastic bags for compost operation 3.4. . 4. Supplies: 4.1. Pallet totes for composting operation 4.2. Bags and labels for composting operation 4.3. Pallets for composting operation 4.4. Industrial plastic cling wrapping rolls for wrapping bags on pallets. 4.5.
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