share-d high tunnels
DESCRIPTION
A joint venture agreement between Scenic Valley Farms and members of the local food industry that merges high tunnel agriculture with clean energy in order to produce locally grown, organically certified fruits and vegetables.TRANSCRIPT
SHARE-d High Tunnels: A Joint Venture between Scenic Valley Farms and the Local Food Industry
• Joint venture high tunnel greenhouses
• Environmentally and financially sustainable
• Provides reliable supply of locally grown, organic produce
• Excess produce sold on the open market
• Harvest fruits and vegetables at optimum ripeness and flavor
• Increases yields and extends the growing season
• Merges the technologies to earn a rapid return on investment
Sustainable Agriculture. Clean Energy.
Sustainable High Tunnel Agriculture + Renewable Energy (SHARE-d) High Tunnels
Proposed Location of the SHARE-d High Tunnels
• East of the Minnesota River Valley, West of the Mississippi River, North of Rochester, South of Farmington
• Uncultivated in previous three years (necessary for organic certification)
• 10-12 parcels of land have already been identified
• Designs and manages high tunnels, climate control systems, and solar thermal heating technology
• Five high tunnels in Minnesota and Wisconsin
• Produces organically certified tomatoes, peppers, blackberries, raspberries, herbs, and leafy green produce
• Decades of agriculture and engineering experience
Scenic Valley Farms
• Hybrid of open field and greenhouse production
• Less expensive than greenhouses
• Crops planted in ground to ensure superior taste
• Create 12 month growing season
• Constructed with steel hoops, covered with heat retaining, light dispersing, anti-drip plastic
• Plastic efficiently rolled up and down to manage air flow
• Exhaust and circulation fans control air temperatures
• Drip irrigation optimizes water and natural fertilizer inputs.
• Manufactured locally by Poly-Tex
• Incentives available at Federal and State levels
High Tunnel Agriculture
Environmental Management System (EMS)
• Inexpensive climate control system for high tunnels
• User monitors and controls the climate from touch screen PLC, laptop, or Smartphone
• Ventilation, irrigation, and heating are monitored and controlled on-site or remotely
• SVF awarded $100,000 USDA Small Business Innovation Research Grant
• Testing at SVF high tunnels in both Minnesota and Wisconsin
• Expected operational date: March 2011
• Potential SBIR Phase II Commercialization Grant in 2013
Solar Thermal Heating
• Solar panels collect heated air • Fans circulate heated air below
ground • Warms soil and air temperatures • Extends growing season to allow
for additional crops and harvests • Reduces propane fuel usage and
greenhouse gas emissions
• Qualifies for 30 percent Federal Investment Tax Credit • Reduces active
income tax liability
• Web based e-commerce (operational on SVF website)
• Provides up to date information on fresh produce for sale
• Orders processed by credit card, check, or money order
• Buyers communicate order notes to producer
• Joint venture members given priority access to produce
• Designed for wholesale buyers, restaurants, grocer co-ops
• Open to registered users who complete a profile
Online Produce Market
• Boost fruit and vegetable yields up to 400% compared to field grown produce
• Steady, reliable supply of organic produce • Purchase produce at wholesale distributor rates • Harvest and deliver fruits and vegetables at
optimum ripeness and flavor • Create a year round growing environment • Meet consumer demand on either end of the
production curve when competition is lower and prices are higher
• Harvest ≈ 95 percent grade A fruit and vegetables • Meet the increasing demand for locally grown
produce • Grow healthier, safer produce with less risk of
contamination • Cost effectively expand the scale of organic farming • Shorten shipping distances = lower freight costs • Create new regional produce
SHARE-d Economic Benefits
• Shorter distance to market cuts fuel usage
• Solar power reduces carbon emissions
• Drip irrigation conserves water
• Natural compost replenishes the soil
• Organic mulching reduces erosion
• Synthetic pesticides and fertilizers eliminated
• Crops protected from climate and weather extremes
• Disease, pest, and insect control inputs reduced
• Respond to water shortages in other regions of the country
SHARE-d Environmental Benefits
Boosting Produce Yields
• Yields typically 200-300% higher in high tunnels
• Our organic determinate tomato yields in 2011 = 20 lbs per plant
• Established goal of 25 lbs/plant in 2012
SVF high tunnels equaled yields at University of Minnesota Southwest Research and Outreach Center (SWROC)
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SVF Weekly Determinate Tomato Harvest (2011)
SVF High Tunnels
Total = 19.5 lbs per plant
• University of Minnesota conducting organic high tunnel study
• Compares outdoor to high tunnel grown varieties
• High tunnels in study did not utilize supplemental heat.
Boosting Produce Yields
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Bell Pepper
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SWROC 2009 Bell Pepper Harvest: High Tunnel vs. Outdoor
High Tunnel
Outdoor
Creating a Year Round Season
Spinach Harvested on December 15th
Ripe Gold Medal Heirlooms on November 4th
Fall Bearing Blackberries on November 14th
Improves Produce Quality
Tomatoes planted at same time in spring
High Tunnel Grown Outdoor Grown
Summer blackberries in SVF high tunnel
Tomatoes in SVF high tunnel
Heirloom bell peppers in SVF high tunnel
A Menu of Produce Options
• Agreement defines fruit and vegetable varieties and production periods
• Joint Venture members select from a menu of warm and cool season crops
• Members approximate purchasing needs prior to planting
• Members given priority access to produce
• Excess produce sold on the open market and income returned to joint venture
• Certain types of produce (i.e., hybrid tomatoes and red bell peppers) highly profitable
Scenic Valley Farms Partners
Business Entity Joint Venture
Contributions
Provides long-term, no-cost land, water and storage shed lease
Funds construction of solar thermal or conventional high tunnel(s)
Obtains organic certification Funds initial operating expenses
Prepares site and plants crop Selects desired produce from a menu of options
Constructs solar thermal or conventional high tunnel(s) Communicates approximate purchasing needs
Installs climate control and irrigation systems Places weekly or bi-weekly produce orders
Manages daily farming operations
Manages marketing and distribution of produce to both partners and open market Manages accounting and payroll
Prepares and distributes quarterly financial reports and Schedule K-1 tax documents
Tax Incentives N/A Investment Tax Credit (30%) on solar thermal
Bonus Depreciation (50-100%)
Produce Pricing Negotiated wholesale rates
Highest available on open market
Financial Rights 25 percent of net income 75 percent of net income
Estimated 10-15% annual return on investment
Dissolution
Remaining initial operating expenses disbursed
SVF retains 1st option to purchase high tunnel(s) at 75 percent of original cost after 7-8 years of operations before high tunnel(s) sold on open market (negotiable)
Basic Structure of SHARE-d High Tunnels
Estimated Return on Investment
Contact Us
Craig Gundacker (612) 961-3871
Erik Gundacker (563) 650-3654
www.scenicvalleyfarms.com