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Sunday, June 10, 2012

How to increase the profit from your garden or small farm

How to increase the profit from your garden or small farm NOW! (growing vegetables, fruits, nuts, berries or herbs).
As the world population escalates, food prices will rise. This trend will be reinforced by rising oil & gas prices (mainstream agriculture is dependent on oil & gas for transport, fertilizers, herbicides & pesticides). Therefore there is a great business opportunity in growing food. Over the past 18 months, I have been doing a study that takes over 100 of the main food crops and assesses and compares their profitability. This is a brief discussion paper giving you a preview. Clearly more money will be made growing the most profitable crops and this study provides you with over 100 crops ranked in terms of profitability. The crops are also categorized according to their climate suitability, so you can find for example which are the most profitable crops in the tropics, temperate or cold climates. What then are the key factors that affect profitability when growing crops? Clearly your choice of crops is fundamental to your financial success. The other factor you have to evaluate is the market demand for the crops you select and your ability to reach that market. You then need to be able to grow the crops. This subject and an overview of over 140 popular crops is covered in my book called “Growing Healthy” subtitled “How to make over $100,000 p.a. on five acres growing fruit and vegetables organically”. This book is available from the website www.growinghealthyorganicfood.com (see book 1) . For even more detail on growing effectively we have 12 monthly lessons on nature’s twelve universal principles of organic food growing. See course 1 at www.growinghealthyorganicfood.com . The other key topic in assessing profitability is cost. There are capital items like land & equipment & buildings. There are the variable costs of seeds, seedlings, fertilizers, watering, pruning & weeding, soil preparation, planting & harvesting, cleaning & packing, transport & marketing. In most of these there is a labour component and this is generally the big cost. Labour costs vary hugely around the world, where the lesser developed countries such as China & India have a big cost advantage and in the western world USA is generally much lower than say the UK or Australia. These factors and others are assessed crop by crop in my study. But for now here are some quick effective ways to improve your profitability immediately: 1. Temperature has a major impact on growth—too hot or too cold stops growth dead in its tracks for most plants. So if you are in an area that gets extreme hot temperatures (over 30 degrees C) you can improve production by using a shadehouse in the summer. Depending on the size of the area you grow in this can be a small homemade device with cloth draped over wood or plastic poles or a large walk in shadehouse with sprinklers. If you live in cold climates that get frosts or snow, then you can improve productivity and lengthen your growing season by using a greenhouse in the winter. 2. Another key factor that impacts profitability is the length of time from planting to maturity and harvesting. Fruit & nut trees for example typically take 3 years or even longer to bear a crop and then it is often then only a small crop and may take 4 to 7 years before full production is achieved. And then you get only one crop a year from most fruit trees. Fruits & nuts payoff is good longer term as the labour component is lower than for vegetables & herbs. 3. However, if you want a quick return on your investment forget fruit & nut trees. You need to focus on vegetables, herbs and berries. The typical vegetable takes 3 months to maturity. Time and cashflow are major factors in profitability, so how about these:months to grow and many of them can be grown several times a year (depending on the length of your growing season). Some vegetables you can pick many times from the one plant---it just keeps producing! 4. Let’s get specific: (a) Rhubarb is a magic crop to grow. I can pick up to 8 times in a year off the one plant. We have of course a particularly long growing season of 10 to 12 months a year, but even in a shorter growing season area you can pick every 5 to 6 weeks once the plant is mature. (b) There are some other crops that you can pick up to five times from the one plant—namely zucchini, kale and silver beet or swiss chard. (c) The other recommendation is to go for crops with the shortest time from planting Zucchini 7 weeks Radish 7 weeks Silver beet 8 weeks Lettuce 9 weeks Broccoli 10 weeks Carrots 11 weeks The exact time will vary slightly with different varieties and the weather. Conclusion: If you try some of the above recommendations you cannot help but improve your return from your activities on your garden or small farm. At least they will make it easier to cut down on your food bills by selling your excess produce nore readily! However this brief free report cannot cover all the details of growing and marketing your crops. If you want more I have recently produced a short 12 week program that does all this. It is now available as course 2 on the home page of our website: go to http://www.growinghealthyorganicfood.com/course2. This program provides a comparative analysis of the profitability of over 100 crops including helping you set up a step by step business plan to maximize the return on your land size and specific climate. This training program also gives you the use of a profitability calculator where you can input your own figures to calculate the specific profitability of a crop you grow in your climate, with your local pricing and local cost of labour and the growing time of the particular variety that you have chosen. Best wishes, Geoff Buckley.

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