Farming a Few Acres of Herbs:
An Herb Growers Handbook
by Rhonda Janke, Jeanie DeArmond, and David Coltrain
Dept. of Horticulture, Forestry, and Recreation Resources, and Dept. of Agricultural Economics, Kansas State University
SECTION I. OVERVIEW
Why Grow Herbs?
There are many possible reasons that someone may want to grow herbs. One reason might be to have a few plants around the yard for personal use, for culinary or medicinal purposes. At the other end of the spectrum, some have heard that high prices are being offered for some herb products, and see this as a potential high value cash crop for the whole farm.
Medicinal Herbs in Kansas?
The production and marketing of medicinal herbs is being explored by some Kansas agricultural producers. Producers may be looking at alternative crops because of the current low prices of many traditional commodity crops. This interest is shared by many across the country as well as across the world including Canada, Australia and South Africa. Developing countries such as China, India, Thailand, South Korea, Brazil, Mexico, Egypt, Indonesia, Kenya and the Philippines grow a variety of medicinal herbs. European and Mediterranean countries also grow herbs, but are net importers.[1]
Medicinal plants have been used throughout history. Presently, 35,000 different plant species are used for medicinal purposes.[2] In the U.S., consumer interest in medicinal herbs continues to increase. Herbs are sold as capsules, tablets, extracts and teas and included as healthy ingredients in conventional foods. Extensive consumer polling shows consumers are increasing their acceptance and understanding of dietary supplements, including herbs. The natural foods market has the largest selection with hundreds of products including whole herbs, tinctures, extracts and standardized products.
The global retail market for medicinal herbs is $14 billion. The demand for medicinal herbs in the U.S. currently has a retail value over $4 billion per year. Retail sales in the U.S. increased regularly from 1994 until 1998 and have since leveled off and little change has occurred over the past three years. Sales in 2000 when compared with 1999, have increased slightly in natural food and health food stores, but decreased in food stores, drugs stores and mass market retailers.[3]
While the demand has stabilized, the supply of medicinal herbs has increased. Markets are overstocked with raw materials with an overall theme of oversupply and low demand.[4] A significant market risk is associated with growing any medicinal herb because of limited markets. Current demand can be quickly met by over production. For example, the price for Echinacea roots has been as low as $2.50 per pound of dried root in the last three years, which compares with over $20 per pound in 1998. The current market price range is $6-8 per pound.[5]
The potential for herb production is unclear because of:
an uncertain market size
low cost producers who dominate world production
market information is difficult to access
a lack of quality control procedures
oftentimes agronomic information for different herbs is not available
the position of the medical community’s acceptance[6]
Kansas does have an ideal climate to grow many herbs since many medicinal herbs are native species. Kansas State University’s Department of Horticulture is conducting research trials to see how various herbs perform in Kansas. This research has the potential to provide insight about the relative advantages in raising superior herbs for Kansas producers when compared with production in other states and other parts of the world. Details from our research trials may be found in Appendix A of this publication. Recent price ranges for several herbs are found in Appendix B.
Do medicinal herbs have potential as an alternative crop in Kansas? For individuals willing to invest significant time, effort and capital, the answer is a cautious maybe. It is certainly not a get rich quick crop. The long-term answer for some may involve becoming a low cost, efficient producer. For others, it will entail selling smaller amounts of high quality product at the best price possible. For a few others, it may mean developing a value-added product, like an herb tea blend, or line of herb tinctures.
A word of caution is in order here for someone wanting to “get rich quick.” Yes, at some times, there are good prices, for some herbs. However, the prices fluctuate from year to year and season to season, and the high prices don’t usually stay high for long. Secondly, contracts are generally needed to obtain those high prices, and these are secured after your track record as a grower is established, and you have a working relationship with one or more buyers. And finally, herbs are a high value crop, but are also a high input crop. These inputs include not only seed, land, fertility, and pest control, but some herbs also require a lot of hand labor as compared to other crops, and harvesting and post-harvest handling labor and quality control procedures can be expensive. Also, the trend for herb production is for organic certification, and there are costs to this service, including membership dues, inspectors fees, and the learning curve and 3-year transition period required before certification is granted.
In spite of these cautions, we feel that herbs have the potential to be an additional cash crop for Kansas farmers. Because these are high value crops, a farm can range from ˝ acre to1000+ acres in size. Since these are relatively new crops, beginning farmers are encouraged to try these, as well as farmers with experience in other crops. The term “herb” actually simply means “a plant,” and so more detail is needed to describe the production and marketing requirements of this diverse family. In fact, the production and harvesting requirements for herbs is probably even more diverse than that of fruits and vegetables, which also involves diverse equipment. For example, you wouldn’t grow and harvest a watermelon the same way you grow and harvest a carrot.
The following sections will go into more detail, and will emphasize both the economic and agronomic, or specific growing requirements for herbs. Marketing strategies will be separated into local direct marketing, and growing for a marketing chain or network. Agronomic practices will include information on how the plant is harvested, since harvesting equipment will limit what is grown on an individual farm more than planting or weeding equipment. Root crops are probably the most labor intensive to grow, since they may require several seasons to reach a marketable size, and digging equipment, washing equipment, as well as drying equipment or space are needed. Plants harvested for their above-ground biomass (tops) may be harvested by hand, or mechanized, but drying equipment or space will be needed. Some of these plants may be harvested once, and others are perennials, from which multiple harvests can be obtained, similar to an alfalfa or grass hay crop. Some herb crops can be grown for their flowers or seeds. Flowers are probably too labor intensive to be grown as a U.S. crop, since these crops are already grown in other countries where labor is less expensive, and it is unlikely a U.S. could compete at prices now on the market. However, some seed crop harvests can be mechanized, and growers may want to consider some of these. Also, some seed crops are from annuals, which must be replanted, but others are from perennials, with the possibility for multiple harvests.
As much as possible, Kansas data and experience will be used to illustrate the potential for some species to become crops in Kansas. Currently, more than 30 different herbs are being tested in experimental plots at 4 locations in Kansas. Data from the 2000 through 2002 growing seasons are available now, and found in this bulletin. Also, grower experiences from Kansas and the Great Plains will be shared, since this will supplement, and complement the field trial experimental data.
A. Herbs for Local Markets (Direct Marketing)
A wide variety of herbs can be grown and direct marketed locally, at farmers’ markets, or to local shops and stores. These include culinary herbs (herbs used in for cooking), herbs for teas, salves, and other medicinal uses, and herbs or plants used for decoration or floral design. Most of this bulletin will focus on medicinal herbs, since this is an active area of inquiry, and one for which we get many requests for information. However, herbs for other uses will be covered briefly in this section.
Herbs used for cooking can be harvested and sold fresh in bunches or packets, or dried and sold. Dried herbs however are going to compete with the international market, where labor is cheap, while the fresh herbs are not usually over-supplied and under-priced. The following table lists some culinary herbs that grow well under Kansas conditions.
Table 1. Culinary Herbs
|
Common Name |
Latin Name |
Part Used |
Comments |
|
Annuals |
|
|
|
|
Basil (many sub-types) |
Ocimum basilicum |
Leaf |
can sell fresh in large quantities for pesto, best if can avoid refrigeration |
|
Corriander |
Coriandrum sativum |
Leaf and seed |
also called ‘Cilantro’ when used green. |
|
Dill |
Anethum graveolens |
Leaf and seed |
many uses besides pickles |
|
Garlic |
Allium sativum |
bulb |
plant cloves in fall for June/July harvest (winter annual) |
|
Perennials |
|
|
|
|
Chives |
Allium schoenoprasum |
leaf and flower |
primarily used for garnish, but also adds flavor, purple flower |
|
Garlic Chives |
Allium tuberosum |
leaf |
flat leaved cousin of chives from Japan, white flower, great in salad and stir-fry |
|
Lemongrass |
Cymbopogon citratus |
Inner core of leaf whorl. |
tender perennial, must be brought inside for the winter in pots. |
|
Marjorum |
Origanum vulgare (sometimes listed as Marjorana hortensis) |
leaf/flower |
similar to oregano in flavor, though not as strong. |
|
Mint |
Mentha spp. |
leaf |
many varieties, adds flavor to many dishes, not just for tea |
|
Oregano |
Origanum vulgare hirtum
|
leaf |
the “Greek oregano” is the one used for pizza. Another species, Lippia graveolens is sold in the US as oregano, also called Mexican oregano. |
|
Parsley |
Petroselinum crispum |
leaf (root also medicinal) |
this plant has medicinal as well as culinary uses, flat-leaved (Italian) type best for cooking, curly leaf used more for garnish |
|
Rosemary |
Rosmarinus officinalis |
leaf |
tender perennial, must be brought inside for the winter in a pot or as cuttings. |
|
Sage |
Salvia officinalis |
leaf |
medicinal as well as culinary uses |
|
Tarragon |
Artemisia dracunculus sativa |
leaf |
French Tarragon is recommended for its flavor. Russian tarragon may be easier to grow, but lacks the flavor. |
|
Thyme |
Thymus vulgaris |
leaf |
medicinal as well as culinary uses, small leaves will strip off the stem easily when dried. |
|
|
|
|
|
A second category of herbs that are relatively easy to grow, harvest and sell to a local market would be those used for teas. These herb teas may simply be a pleasant beverage, have medicinal properties, or both. Precautions should be taken when growing any medicinal plant to have the correct species, and avoid plants with potentially toxic side effects. The species listed below are generally considered safe, and are widely used. However, some individuals may have sensitivities or allergies, and should be careful when trying new products. For more information on herb tea, see MF-2579, "Home Grown Herbs for Home Use."
Table 2. Herbs Commonly Used in Herb Tea.
|
Common Name |
Latin Name |
Part Used |
Comments |
|
|
|
|
|
|
Annuals |
|
|
|
|
Chamomile-German |
Matricaria chamomilla |
flower |
Best one for tea. |
|
Chamomile-Roman |
Chamaemelum nobile |
flower |
More often used as an oil. |
|
Stevia |
Stevia rebaudiana |
leaf |
Is 300 times sweeter than sugar. Only need a little bit of this. Can be used as fresh or dried leaf, though an extract is sold commercially. |
|
Perennials |
|
|
|
|
Alfalfa Leaf |
Medicago sativa |
leaf |
mild flavor, often overlooked healthful plant |
|
Bergamot |
Monarda fistulosa |
leaf/flower |
strong but pleasant flavor, great butterfly plant too. |
|
Catnip |
Rhamnus purshiana |
leaf |
not just for cats anymore! great for tea. |
|
Comfrey |
Symphytum officinale |
leaf |
Recently issued warnings of liver damage with prolonged use. Might not want to sell this one commercially. |
|
Dandelion |
Taraxacum officinale |
leaf/root |
Can be slightly bitter in tea, but has many health promoting properties; best in a blend with other herbs. |
|
Hibiscus Flowers |
Hibiscus sabdariffa |
flower |
Adds color and tartness to tea. |
|
Lemon Balm |
Melissa officinalis |
leaf |
Medicinal, as well as nice flavor. |
|
Lemon Verbenba |
Aloysia triphylla |
leaf |
Bring inside during the winter. Tender perennial. |
|
Lemongrass |
Cymbopogon citratus |
leaf |
Also a tender perennial. Bring inside. |
|
Licorice Root |
Glycyrrhiza glabra, Glycyrrhiza uralensis (Chinese), Glycyrrhiza lipedita (N. Am.) |
root |
These will spread. Adds sweet flavor to tea. Not recommended for people with high blood pressure. |
|
Mint (several types) |
Mentha piperita (peppermint) Mentha spicata (spearmint) |
leaf |
These will also spread. The classic tea plant. Available in flavors, including chocolate. |
|
Raspberry Leaf |
Rubus idaeus |
leaf |
Included in many "women's teas," worth looking in to. |
|
Red Clover flowers |
Trifolium pratense |
flower |
Also popular in women's teas, has some estrogenic properties |
|
Rosehips |
Rosa canina |
fruit |
contain vit. C, may need to boil slightly to extract flavor |
|
Stinging Nettle |
Urtica dioica |
leaf |
mineral rich and flavorful tea, sometimes recommended as a spring tonic. |
|
Yarrow |
Achillea millefolium |
leaf |
surprisingly nice tea. |
A third group of herbs could be grown for use in salves, creams, or other topical uses. Infused oils, salves, and creams are not difficult to make. One can learn how to make them from a class or from several available books. Some of the herbs can also be used internally, and some cannot, so become familiar with each plant and its uses. Some recommended herbs for Kansas include:
Table 3. Herbs for home-made salves and creams.
|
Common Name |
Latin Name |
Part Used |
Comments |
|
|
|
|
|
|
Annuals |
|
|
|
|
Callendula |
Calendula officinalis |
flower |
high resin varieties available, pick when flower is at its prime |
|
Chickweed |
Stellaria media |
leaf |
Harvest when young and tender. |
|
Perennials |
|
|
|
|
Aloe |
Aloe barbadensis |
leaf |
Mucilagenous gel in the fresh leaf used in hand creams and other products. Grow indoors as a house plant, or set out during summer months for rapid growth. |
|
Arnica |
Arnica montana |
leaf |
Difficult in Kansas. Prefers an alpine environment, but is in high demand from herbalists. |
|
Burdock |
Arctium lappa |
root/leaf |
easy to grow, wild type also found in Kansas |
|
Comfrey |
Symphytum officinale |
leaf/root |
Easy to grow, propagate by root divisions |
|
Mint |
Mentha spp. |
leaf |
Easy to grow, will spread. Essential oil1 or infused oil2 of mint more likely in skin products than whole leaf. |
|
Plantain |
Plantago lanceolata, P. major |
leaf |
This common sidewalk weed often used for skin ailments. |
|
St. John's Wort |
Hypericum perforatum |
flowers |
Often found in skin creams and oils, as well as for internal use. |
|
|
|
|
|
1 Essential oil has been extracted through the use of heat and pressure, usually involving a steam distillation process. These oils are highly concentrated, and used in very small quantities, like a few drops. These are usually not made at home, but could if one had a distillation unit. When sold commercially, these bring a very high price, or are sometimes diluted, and sold at a lower price.
2 Infused oil can easily be made at home, using a process of soaking the fresh or dried herb in olive or other vegetable oil. See reference section for books that describe the process in more detail.
A fourth group of herbs that could be grown and sold locally include those for fragrance, dried flower arrangements, potpourri, or other similar decorative uses. Some of these are harvested on a commercial scale for their essential oils. However, this is only economically feasible in regions where a processing plant already exists, or where enough growers are concentrated in one area to jointly support processing. This market is already somewhat “mature,” or saturated, and so we do not see this being a competitive area for new growers to get into on a large scale. However, on a small scale with local markets, these have potential to return a profit to small growers. These may not be safe for internal use, but a few of these are on the other lists and have internal uses; for example, mint.
Table 4. Herbs for fragrance, oils, and decorative uses.
|
Common Name |
Latin Name |
Part Used |
Comments |
|
|
|
|
|
|
Perennials |
|
|
|
|
|
|
|
|
|
Bergamot |
Monarda fistuolosa |
flower/leaf |
Flowers and leaves may be dried. |
|
Bittersweet |
Solanum dulcamara |
vine/berries |
Can be harvested from the wild in KS, primarily used for decoration now, but also has medicinal properties. |
|
Lavendar |
Lavandula angustifolia |
flower/leaf |
Dried flowers and stems are used. |
|
Mints |
Mentha spp. |
leaf |
Many types available. |
|
Orris Root |
Iris germanica var. florentina |
root |
The dried root of this variety is fragrant. |
|
Patchouli |
Pogostemon patchouli |
leaf |
Tender perennial. |
|
Pine cones |
Pinus spp. |
cone |
Many types may be collected and added to potpourri mixtures. |
|
Rattlesnake Master |
Eryngium yuccafolium |
whole plant |
Unusual native plant in found only in virgin prairie. |
|
Roses |
Rosa spp. Rosa canina (rosehips) rosa centifolia Rosa gallica |
flower petals and buds |
Many types, old fashioned musk type have the most aromatic petals. Rosehips, petals, or whole flowers may be dried and preserved. |
|
Rosemary |
Rosmarinus officinalis |
leaf/flower |
Decorative as well as useful culinary and medicinal herb. |
|
Scented Geraniums |
Pelargonium spp. |
leaf |
Many types available |
|
Sumac |
Rhus glabra |
berries |
Sumac berries may be used in tea or decoration. Woody plant, wild in great plains. |
|
White sage |
Salvia apiana |
leaf and stem |
Used for incense or potpourri, not cooking. |
|
Yarrow |
Achillea millefolium |
leaf and flower |
Flowers dry nicely for arrangements |
Any of the herbs sold by direct marketing can be promoted in a variety of ways. Herbs are placed in the category by the FDA as dietary supplements, which are a class separate from food and also from drugs. There are some special rules that apply. First of all, health claims cannot be made about the herbs. As with food items, all herbs sold should be clean, well labeled, and sold un-processed, unless you have a certified commercial kitchen, and/or have sought out the advice of your local or state health department.
Attractive labels can be made for the herbs, whether sold fresh or dried, with the name, culinary uses, and some information about the folk uses of the herb. Reference books can also be kept handy, so that the customer can look up the herbs and read about possible uses for themselves. That also takes you out of the risky role of unlicensed health care provider.
Recipes are also nice for people trying out new culinary herbs for the first time, and tea blends or suggestions of blends of herbs for tea can also be made when direct marketing. Other marketing ideas include bringing in a speaker for your local garden club or farmers' market association to talk about herbs, and to write articles about herbs for local newspapers or newsletters. When selling herbs, the more educated the consumer, the better off you are. It will help them to know how to safely use herbs, and also how important it is to find the highest quality, fresh (and if possible local) source of herbs.
B. Herbs for Commercial Markets
Deciding which herbs to grow for the commercial market may be much tougher than for the local, direct market. For a local market, one can try out a few things, see what the customer likes, educate the consumer about other possible products, and get pretty far through trial and error. For the commercial market, the grower is several steps away from the end consumer, and must be aware not only of what consumers want, but what the manufacturers, and hence the buyers for the manufacturers want. Also, there is a lot of competition in the commercial market, both from with the U.S., and even more, from other countries. An herb that must be hand harvested, or is time consuming to grow will probably have an advantage in another country. Herbs that grow in tropical climates will not be considered here, except for those that may be grown successfully in unheated greenhouses, or tender tropical perennials that could be grown as annuals. For example, Stevia, originally from the tropical area of Paraguay, does very well in Kansas as an annual (see MF-2630 later in this handbook).
Over 30 herbs have been screened for their production potential in field test plots in Kansas. Results for herbs screened for two years or more are found in Appendix A., which is a compilation of fact sheets for each species. As more species are evaluated, new fact sheets will be written. Table 5. summarizes our results in the form of overall recommendation. The 30 species in the fact sheets are there, plus additional information on species where we have only observations from gardens. Interpret these recommendations for your own site, because it will make a difference if your field is in an exposed site vs. protected, no irrigation vs. drip or other system, etc. Additional information on equipment and business planning are in the next section of this handbook, and site specific data from each year are found on the KSU Horticultural website: www.oznet.ksu.edu/ksherbs.
Table 5. is organized by plant part/harvest method, because time to harvest may limit more growers than any other factor. Though some herbs have markets for more than one plant part (for example, leaves and roots), they are listed in the table under their most common use.
Footnotes:
1Fact sheet number if available.
2Recommendation code: G = good for gardens
N = not adapted to Kansas
F = could be a good field crop
L = limitations, could be insect, disease, labor to harvest,……
3Comments are generally about growing conditions or marketing potential. Occasionally mention medicinal uses to give one a sense of whether this plant has market potential in the future.
|
|
|
|
|
|
|
|
|
|
Common Name |
Latin Name |
Annual/ Perennial |
Sun/ Shade |
Part/How harvested |
KSU trials1 |
Recommend-ations2 |
Comments3 |
|
|
|
|
|
|
|
|
|
Pollen |
|
|
|
|
|
|
|
|
Saffron |
Crocus sativus |
perennial |
partial shade |
pollen - by hand |
no |
G |
v. expensive, tedious imported from Spain. |
|
|
|
|
|
|
|
|
|
Flowers/petals |
|
|
|
|
|
|
|
|
Borage |
Borago officinalis |
annual |
sun |
flowers (also stems and leaves). Harvest during flowering period. |
yes MF-2608 |
G/L |
For borage oil, the fatty oil of the seeds, though other parts also used medicinally. Flowers added to salads. Good for gardens. Limitations are flowers hard to harvest, and limited market for other parts of the plant. |
|
Calendula |
Calendula officinalis |
annual |
sun |
flowers |
yes MF-2610 |
G/F |
Grows well here, limitation will be time to harvest flowers. |
|
Chamomile - German |
Matricaria chamomilla |
annual |
sun |
flower rake |
yes (no fact sheet yet) |
G/L |
easy to grow, tedious to harvest? Don’t confuse with Roman chamomile, Chamaemelum nobile, which is primarily grown for its oil, and not for tea. |
|
Elderberry |
Sambucus nigra |
woody perennial |
sun or partial shade |
by hand (flowers and/or fruit) |
yes (no fact sheet yet) |
F/G |
Market for elderberry now at a winery in Mulvane, KS. Native plant, well adapted. |
|
Red Clover |
Trifolium pratense |
perennial |
sun |
blossoms |
yes MF-2625 |
F/G/L |
Easy to grow, time consuming to harvest? Better to grow a large field of it, or rotate with other crops as a cover crop. If only growing a few plants, the rabbits may be a problem.
|
|
St. John’s Wort |
Hypericum perforatum |
perennial |
sun |
flowers and/or top 6 inches in full flower |
yes MF-2629 |
G/F |
Well adapted, best yields might be during second year, need to replant periodically. Gets shrubby. Pretty in garden. Could partially mechanize the harvest? Big market for this crop, especially if high quality. |
|
|
|
|
|
|
|
|
|
|
Fruit |
|
|
|
|
|
|
|
|
Elderberry |
Sambucus nigra |
woody perennial |
sun or partial shade |
by hand (flowers and/or fruit) |
yes (no fact sheet yet) |
F/G |
Market for elderberry now at a winery in Mulvane, KS. Native plant, well adapted. |
|
Hawthorn |
Crataegus laevigata, also C. monogyna |
woody perennial |
sun |
fruit (also flower and leaf) |
observation |
G/F(?) |
cardiac stimulant, antioxidant, now imported from Poland, Chile, Bulgaria and France. Seems well adapted to Kansas landscape setting. |
|
|
|
|
|
|
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|
Seeds |
|
|
|
|
|
|
|
|
Evening primrose |
Oenothera biennis |
biennial |
sun |
small seeds |
yes MF-2611 |
N |
medicinal part is the fatty oil extracted from the ripe seeds and fresh plant gathered at the beginning of the flowering season. Did not do well in our trials here, and seed shatters easily. |
|
Milk Thistle |
Silybum marianum |
normally a winter annual |
sun |
can use combine? |
yes MF-2618 |
N (if from transplants) |
can plant w/ wheat drill, plant v. early - Feb/March to get a crop in KS. Not sure whether to recommend until we do some direct seeding trials. |
|
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|
|
|
|
|
|
|
Leaf |
|
|
|
|
|
|
|
|
Alfalfa |
Medicago sativa |
perennial |
sun |
leaf & seed, could mechanize both |
no |
F |
This is a common forage crop in Kanasas, well adapted to our climate. The only limitations would be to market the crop successfully, and work out quality control details. |
|
Bee Balm |
Monarda fistulosa |
perennial |
sun |
leaf/flower |
yes MF-2605 |
G/F |
M. fistulosa did well in field trials, but M. didyma did not. |
|
Blue Vervain |
Verbena hastate |
perennial |
sun |
leaf/whole herb |
yes MF-2606 |
G/F |
Nice plant, though had heavy insect damage in some years. |
|
Boneset |
Eupatorium perfoliatum |
perennial |
sun |
leaf/above ground portion |
yes MF-2607 |
G/F |
Nice white flowers, does well under field conditions, even when dry. |
|
Feverfew |
Tanacetum parthenium |
perennial |
sun |
flowering tops/leaves |
yes MF-2614 |
G/F |
Grow this plant like an annual rather than a perennial. Poor winter survival. |
|
Gingko |
Gingko biloba |
woody perennial |
sun |
leaves |
no |
G F? |
Limitations are market and harvest method. Adapted landscape tree common in Kansas. |
|
Heal All |
Prunella vulgaris |
perennial |
sun |
leaves |
yes MF-2636 |
G/F |
Attractive plant, did ok in field trials, but may be difficult to harvest, low growing. |
|
Heartsease/Wild Violet/Wild Pansy/Johnny-Jump-Up |
Viola tricolor |
annual to perennial |
sun or shade |
fresh aerial parts, 2-3 harvests per year possible |
no |
G |
Approved by Commission E for inflammation of the skin, used both internally and externally. Often found as a “weed” in flower beds. |
|
Lemon Balm |
Melissa officinalis |
perennial |
sun or partial shade |
collect leaves before flowering and/or branching. |
no |
G/F? |
Great in tea, seems to be expanding market. Observations so far indicate it is winter hardy in a moderately protected area. |
|
Lemon Verbena |
Aloysia triphylla |
tender perennial, somewhat woody shrub |
sun or partial shade |
lateral branches harvested in the fall. |
no |
G |
Propagated by runners or cuttings. Used to flavor teas. Probably not hardy in Kansas. Bring inside each winter. |
|
Mullein |
Verbascum thapsus |
biennial |
sun (needs good drainage) |
leaves for tea, flowers for infused oil. |
yes MF-2619 |
G/F |
Attractive, adapted plant for garden or field. Harvest leaves first year, flower in second. |
|
Oregano |
Origanum vulgare |
perennial |
sun |
leaves |
yes MF-2621 |
G/F |
Adapted to Kansas. |
|
Round Head Lespedeza |
Lespedeza capitata |
perennial |
sun |
whole herb tops |
yes MF-2626 |
G/F |
Native to Kansas, looked good in the field. Small market now. |
|
Sheep Sorrel |
Rumex acetosella |
perennial |
sun |
whole herb top and/or leaves |
yes MF-2627 |
G/F |
Great in garden as a salad and/or tea herb. Limitation in field might be how to pick such a low growing herb. Spreads a LOT. |
|
Skullcap |
Scutellaria lateriflora |
perennial, |
sun |
aerial part of 3-4 yr old plants harvested in June |
yes MF-2628 |
G/F |
Did great in field trials. Attractive plant. Market for tops now, roots in future? |
|
Stevia |
Stevia rebaudiana |
tender perennial |
sun |
aerial portions. |
yes MF 2630 |
G/F |
Did great in field trials. Is from Paraguay, and a tropical plant, so grow like an annual. |
|
Stinging Nettle |
Urtica dioica |
perennial |
partial shade |
leaves (now a market for roots also) |
yes MF-2631 |
F |
A bit “stingy” for the garden, but grows well here, even in full sun. |
|
White Sage |
Salvia apiana |
tender perennial, but grow as an annual. |
sun |
whole tops |
yes MF-2633 |
G/F |
Attractive in the garden. This is a plant used for ceremony, not cooking or other herbal preparations. Not winter hardy here. |
|
Yarrow |
Achillea millefolium |
perennial |
sun |
flowering tops |
yes MF-2634 |
G/F |
Attractive in the garden, did well in the field. |
|
|
|
|
|
|
|
|
|
Root |
|
|
|
|
|
|
|
|
Black Cohosh |
Actaea racemosa |
perennial |
shade |
by hand? |
no |
G?
|
difficult to germinate seeds, difficult to grow in Kansas, but is endangered species in the wild. Expanding market. |
|
Blue Cohosh |
Caulophyllum thalictroides |
perennial |
shade |
by hand? |
no |
G?
|
difficult to germinate seeds, difficult to grow in Kansas, but is endangered species in the wild. Expanding market. |
|
Burdock |
Artium lappa |
biennial |
sun |
root is most marketable, fresh or dried, but leaves and seeds also used. |
yes MF-2609 |
G/F |
Does well in Kansas. Main limitation will be harvest. |
|
Chinese Milkvetch |
Astragalus membranaceus |
perennial |
sun |
by hand, or use root digger to loosen soil first. |
yes MF-2612 |
G/F |
Many uses, including anti-viral and immune-stimulating. Potential for high demand, used in many formulations. Grows well in Kansas, but difficult to dig this root. Poor survival on soils that are not well drained. Attractive plant. |
|
Dandelion |
Taraxacum oficinale |
perennial |
sun |
roots and tops marketed |
yes MF-2613 |
G/F |
best yields under cultivated conditions, though could harvest small plants at home as "wild greens." |
|
Echinacea (Narrow-leaved coneflower) |
Echinacea angustifolia |
perennial |
sun |
hand or machine dig root |
yes MF-2620 |
F |
Direct seeding seems to be more successful than transplanting. Poor survival. |
|
Echinacea (Pale purple coneflower) |
Echinacea angustifolia var. pallida |
perennial |
sun |
hand or machine dig root |
yes MF-2620 |
G/F |
Easier to grow than E. angustifolia. Larger tap root, but unclear market. |
|
Echinacea (Purple coneflower) |
Echinacea pupurea |
perennial |
sun |
hand or machine dig root |
yes MF-2624 |
G/F |
Easiest Echinacea to grow. Limited as commercial crop by ‘Aster Yellows” disease. Flowers can also be sold to floral shops. |
|
Garlic |
Allium sativum |
winter annual |
sun |
hand or machine |
no |
G/F |
Common vegetable crop in Kansas. Many varieties well adapted. |
|
Ginseng |
Panax quinquefolius |
perennial |
50% shade |
by hand |
yes (observation) |
N |
Poor survival. Have tried for several years under “simulated woodland” conditions. Too hot and dry here. |
|
Goldenseal |
Hydrastis canadensis |
perennial |
50% shade |
by hand |
yes (observation) |
G |
Better survival than ginseng. May be worth growing on a small scale, but probably not a good field crop for Kansas. |
|
Joe Pye Weed |
Eupatorim purpureum |
perennial |
sun |
by hand or root digger |
yes MF-2615 |
G/F |
Attractive, though tall garden plant. Did well in field trials, even when dry, though it prefers wet locations. |
|
Licorice |
Glycyrrhiza uralensis and G> glabra. |
perennial |
sun |
by hand or root digger to loosen first |
yes MF-2616 |
G/F |
Both did well in field trials, but be prepared for some plants to spread via rhizomes. Difficult to harvest root, as its “all over the place.” |
|
Marsh Mallow |
Althea officinalis |
perennial |
sun, partial shade |
Roots, also leaves harvested. |
yes MF-2617 |
G/F |
Attractive relative of hollyhock, did well in the field, few pests. |
|
Pleurisy Root (Butterfly milkweed) |
Asclepias tuberosa |
perennial |
sun |
root (leaves are toxic) |
yes MF-2623 |
G/F |
Great for gardens, adapted to field, but time consuming to dig. |
|
Valerian |
Valeriana officinalis |
perennial |
sun or partial shade |
hand or machine dig roots |
yes MF-2632 |
G |
Seems to survive in a garden setting, but very poor survival in field trials. Root diseases or other problems limit this as a crop. |
|
|
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|
|
|
|
Equipment Needs and Capitalization:
Growing the crop. The equipment needed to plant and cultivate an herb crop will be similar to that needed for grain and vegetable crops. Harvesting may be quite different, and will be discussed in a later section. If herbs are the first enterprise on a farm, this equipment will need to be purchased, rented, or borrowed, but if one is adding herbs to an existing farm, many of these items will already be available or in use. When calculating cost budgets however, make sure to include depreciation, repairs, and other equipment costs in your budgets to give a fair accounting.
If the crop can be direct seeded, standard planting equipment may work. For example, medium-sized seeds like milk thistle and Echinacea may be planted with a wheat drill or planter. Smaller seeded species like goat’s rue and red clover could be seeded using the forage seeder box on a standard planter. Some very small seeded species, such as chamomile or St. John’s wort, will need to be seeded in the greenhouse and put into the field as transplants, or direct seeded by hand, and then thinned. For field crop farmers, new equipment and facilities may need to be purchased to grow transplants and get them in the ground. Transplants for some species can be purchased or contracted to another local grower who already has the facilities. On a small scale, purchasing a transplanter does not make sense, but if one is going large scale, a transplanter can save on labor costs.
With each purchase, one will need to look at the trade-off between capital investment, and the accompanying opportunity cost of that money, the interest if the money is borrowed, the expected life-time of the equipment, versus the cost of the labor that the equipment will displace. This calculation should be performed for everything from a tractor to a root digger. The following three tables should help you look at your own operation, and decide what scale might be appropriate, and to calculate costs associated with equipment and land.
In general, equipment needed for growing herb crops is not that different from other crops, so time won’t be spent in this section discussing the details of this equipment. For more information, see current grain or vegetable bulletins, including MF-1115, “Farming a Few Acres of Vegetables,” by C. W. Marr, KSU Extension fact sheet.
Harvesting Herbs. This is where growing herbs and growing other crops becomes somewhat different. For some items, harvesting herbs is similar to harvesting vegetables, especially if the herb is simply a leaf crop and harvested by hand, similar to lettuce harvest. Root crops, also, may be similar, as many herb root crops can be hand dug, or machine harvested with a potato or other root digger. Cleaning herb crops may also be similar to vegetable crops, as the customer wants clean, dust and soil-free produce.
Though some herb crops may be sold fresh, most are sold dry, and priced on a dry-weight basis. This changes how things are done at harvest and in the packing shed or processing area. Another difference is that many herbs, especially root crops, are perennial, and not annual crops like carrots and potatoes. This means that roots harvested may be longer, more twisted, and harder to extract from the soil than carrots or simple tubers like potatoes. Thus, mechanical diggers may need to be modified to handle these situations.
In researching the literature on herb harvesting equipment, very little is found with any degree of detail. Herb growers apparently work out the harvesting, digging, and washing for their own situation on their own farms, and you probably will too. Instructions for harvesting found in books and growers’ manuals simply say, “dig with fork or root harvester.” What type? How deep? The most useful information so far has been featured on web sites sponsored by the herb farms themselves, where the use of a chisel plow to loosen Echinacea roots was illustrated, or where rotating barrel carrot washers were featured as a way to wash herb roots. Metal screens mounted on wooden frames with a pressure washer/hose can be used to speed up the root washing process, if one doesn't want to invest in a barrel.
Our experience in digging roots in the field plots is that some degree of mechanization may be useful. For example, loosening roots with a tractor-pulled chisel plow would save some of our back muscles, knees, and would have gone deeper than we were able to do by hand. However, a lot of hand work probably remains for sorting, washing, and loading roots into the dryer. Other equipment recommended for handling roots include a “U” shaped bar to undercut roots, or an “L” shaped bar. These are sometimes used in the production of things like strawberry transplants, but probably won’t go as deep as a chisel plow shank. We tried the U-shaped bar on our field plots near Wichita, on a sandy soil in the fall, with moderate moisture content. It did a nice job of cutting and lifting the roots, but the braces on the bar prevented it from going deep enough to get things like burdock. It did a nice job on the mallow roots, and even helped extract some of the licroice, which is a shallow, runner-type root. The bar was originally designed for sweet potato digging, and was fabricated locally. Also keep in mind that some roots are more fibrous, and these may be easier to dig, but harder to wash. Echinacea pallida, for example has a nice, carrot shaped tap-root, while Echinacea pupurea has a fibrous root system. Stinging nettle also, has a shallow fibrous root system that is easy to dig, but hard to clean.
Leaf crops would be easier to mechanize, as many types, styles, and sizes of mowing equipment exist. However, keeping the leaf matter clean, and then loaded into a dryer without contaminants would limit the kind of mechanization used. Since most leaf crops can NOT be dried in the sun, one can’t simply treat their feverfew crop the way they would handle an alfalfa hay crop; mow, sun-dry, and turn in the field prior to baling. Small scale mowers, with adjustable height (to miss the lower, less-than-perfect leaves, might be best, with a way to catch the foliage, or collect it for placement in dying rooms or frames. Leaf crops will have the highest moisture content as compared to roots, and will need to be moved as quickly as possible from the sun into a shady area, and preferably straight into the drying area. Some herb leaves and stems bruise easily, and need to be handled with special care to maintain the highest quality. In some crops, leaves and stems can be harvested together at ground level; in others stems will need to be separated either in the field or later on.
Flower crops probably provide the biggest challenge, and small-scale growers making herb products for themselves or for local sale often simply hand harvest individual blossoms, and pick each patch of calendula, red clover, or chamomile several times a week during the peak flowering seasons. Some even harvest St. John’s wort as individual blossoms, though the commercially harvested product includes the top 6 inches or so of the plant as a clipped, rather than plucked product. Hand picking blossoms probably does not pay a living wage, if one sits down to do the math, so start with some small plots and do these calculations before signing a large contract for a flower crop. Tim Blakely (see book listed in references section) estimates that a fast picker can pick about one pound of dried red clover flowers per hour if the field is healthy, but an average picker will only pick one-half to three-quarters of a pound. If the price per pound is only $5 to $10 this is hardly a living wage, if one also calculates planting time, land, shipping cost, etc.
There are mechanical flower harvesters available for purchase, but only the largest growers could probably afford them. It may be possible in the future for a group or co-op to jointly purchase equipment like this, and make it more cost effective to mechanize. An in-between option is the use of “flower rakes.” Some catalogs sell a chamomile harvester, which is a small scoop held in one hand, with long pointed metal rods welded at about the right spacing (about one stem-width) to catch small blossoms, and “pluck” them as one lifts up the scoop. Stem material is also gathered with this tool, which is not desirable, but it does speed up the picking process some. It is unclear at this time whether flower crops will be commercially viable in the U.S., when consumers may purchase less expensive products grown abroad.
Drying Herbs. This is where herb growing is very different from vegetable farming. Some vegetable growers that have diversified into cut flowers, especially everlastings, or dried flowers, may be more familiar with drying methods, and may have the place on the farm ready for storing dried herb products.
A few companies may give contracts for fresh herb delivery, and if so, you can skip this step. However, you will have to be careful to follow shipping guidelines and timing, and may need to cool the crop prior to, or during shipping, so that it arrives in good shape. Some essential oils are extracted from fresh plant material, so if you find a market for oils, or a local extraction facility, fresh shipping/hauling may work for you.
Most herbalists buy dried product, mainly for practical reasons related to storage and shelf life. In a few herbs, compounds become more or less active when dried. A rule of thumb is that the shelf life of a properly dried and stored whole (not ground) herb is about one year. Grinding an herb increases the surface area, which is subject to oxidation, and also leads to more volatilization of various compounds. Thus, herbs should ground as close to the time of use as possible.
Drying herbs on farm is not rocket science, but there are a few general rules or guidelines. The herb industry, in collaboration with government committees, is coming up draft versions of “Good Manufacturing Process” guidelines which can be followed, but for the most part, they are just common sense. For example, wash your hands before handling herb for human consumption, don’t sneeze on it, don’t allow rodents to nest in it, etc. Here are a few do’s and don’ts.
Do:
¨ move herb as quickly from the field to the drying room as possible
¨ either air dry, or use forced air to dry herbs as quickly as possible
¨ prepare a special insect/rodent free area to dry and/or store herbs
¨ clean herbs as much as possible before moving into the drying area
¨ slice roots (when appropriate) to speed drying
¨ dry all herb products thoroughly. This may take 3 days for some leafy crops, or 3 weeks for roots. Check by calculating the % moisture content by oven drying (or micro-waving). The % moisture shoud be xx or less. It can be calculated as fresh weight-dry weight = water. Water / fresh weight = moisture content. Also, leaves should crumble easily, and roots should be hard and/or snap.
Don’t:
n allow herb to heat up in the field in piles after harvesting and before drying
n allow UV light or other light to fade the herb.
n dry or store herb where insects or rodents will be a problem
n sell dirty or inferior product
n dry at temperatures above 120o F. Most recommend temperatures between 80 and 105oF, with some air circulation.
n store in plastic bags
n store before the herb is completely dry
The drying room will vary for different farms. Extremely small quantities can be dried in a table-top food dryer, but it will take you virtually forever if you want to do several pounds rather than ounces of material. Some have modified greenhouses as drying areas, but these should be shaded, as light will fade the plant material and reduce its value. A large shed or barn with beams on which to hang tied herbs could work as a drying area, as long as it is relatively rodent proof, and one doesn’t mind tying lots of little bundles together.
Our drying ovens at KSU consist of large cabinets, which can be constructed of plywood, with a fan and heat generating unit at the bottom, and a vent at the top. A thermostat controls the heat, and the fan runs continuously. Home-made shelves made of 2”x2” lumber and rigid screen are spaced at about every foot, for a total of 8 to 10 shelves per cabinet. Herbs are either laid on the screen in loose layers, or small quantities are placed in brown paper bags, and dried in the bag in the oven. Other models for drying areas, especially if they are primarily used in the summer, might be to section off a corner of a garage or shed from dust and animals, install a large fan to draw air, and possibly a de-humidifier. The Kansas weather will provide the heat. Home-made shelves can be attached to walls or suspended from the ceiling. Some herb reference guides give specific drying time recommendations, but only use these as general guidelines. Drying time will depend a lot on the condition of the plant when brought in from the field, and your drying conditions, relative humidity at the time, and other factors.
Processing and packing is another step that will take place on farm, and our recommendations at this point are to get specific information from your buyer on these details. General guidelines include keeping the product away from light, dust, rodents, and insects. Most herbs are stored at room temperature, but “cool and dry” is a good general practice. Generally packing in paper or other “breathable” material is better than plastic. Anything that isn’t completely dry will encourage bacteria and fungi growth, which would not only decrease the quality, but may produce harmful substances. The amount of herb that you have will determine how , or to whom you sell your product. Some buyers want ounces, some pounds, some tons. Burlap has been used in the past for herbs, but is not recommended at this time, as the fibers may contaminate the herb.
Farm or production size is also an important consideration in determining the amount of mechanization necessary to successful raise and harvest an herb crop. Table 6 is intended to help you visualize the types of equipment relative to your scale of production. One key to profitability is to have your fixed cost investment be scale-appropriate. Table 7 & 8 will then help you to calcuulate your fixed costs for the herb portion of your business. These figures will then be used in Table 10, to calculate profitability for various herbs that can be grown in Kansas.
Table 6. Mechanization Appropriate for Farm Size and Operation Intensity. (Note: these are not absolute categories - needs will vary, and one farm may use items from more than one column. Also, in the intermediate levels, it may make sense to rent or borrow equipment listed in the "high" category rather than to purchase it.)
|
|
Range of Mechanization |
|||
|
|
None |
Low |
Medium |
High |
|
|
|
|
|
|
|
Tillage |
Hand/shovel |
small rototiller |
large rototiller |
tractor mounted plow, spader, rotovator |
|
Weeding |
by hand, combined with mulch, flame, etc. |
some plastic or fabric row cover, walk behind wheel hoe |
walk behind rototiller/cultivator |
tractor mounted cultivation equipment, flame |
|
Planting |
hand seed, hand transplant |
push seeder, use wheel hoe to make furrow |
rototiller to make furrow, attach seeder? |
tractor mounted seeder and transplanter |
|
Leaf harvest |
by hand |
hand with large loppers |
electric hedge trimmer |
sickle bar mower |
|
Root harvest |
shovel, fork |
shovel or fork with more labor, or borrow equipment? |
furrow with tractor or tiller, hand separate |
root digger (carrot or potato) |
|
Root washing |
by hand, hose, bucket |
mounted screens, pressure washer |
rent or borrow barrel washer |
barrel root washer |
|
Flower Harvesting |
by hand |
hand rake (chamomile example) |
modified hedge trimmer? |
commercial flower harvester |
|
Drying |
air dry, small batches |
air dry, large batches |
small forced air heater/dryer |
large forced air heater/dryer |
|
|
|
|
|
|
|
Approximate size of operation: |
0.1 - 1.0 acres |
1.0-2.0 |
2.0-5.0 |
5.0+ |
|
Equipment Price range (per item): |
$0-20 |
$20-$100 |
$100-$2000 |
$2000-$25,000 |
|
|
|
|
|
|
In Table 7, you will see an example of fixed cost budget calculations. These are investments that are made up front with expenses that will be there whether you plant a crop or not. The standard way to account for land costs is to either use the interest on the value of the land, if purchased, or the rental cost, if rented. In this example, the land was purchased, and a per acre per year cost was determined ($80). When this number is used in an actual herb enterprise budget, take this figure time the number of (or fraction of) an acre that is used for that herb.
Building and equipment costs are also assigned values based on the interest if the money was borrowed (theoretically the opportunity cost of the money, if it wasn't borrowed), and the depreciation. Depreciation is simply the total cost of the building or piece of equipment divided the number of anticipated useful years of the item. There are some standard values used for tax purposes, but for these budgets, use your best realistic estimate. The percentage of time or space that the herb business on your farm as compared to other enterprises is also taken into account (column 2). The number of hours per year used for herbs (column 7) is used to come up with a per hour estimate cost for the item. This value is used in Table 10. After completing Table 10, or after a field season where hours of usage has been tracked you find that the total hours estimate in column 7 is wrong, re-adjust, and recalculate column 8.
Now complete Table 8, using expenses and fixed inputs from your own farm. Include land, facilities, and equipment that are part of the farm now, and also items that you intend to purchase if you go into the herb business.
Table 7. Example calculation for fixed costs budget for adding an herb business to an existing farm.
|
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Item |
Cost of Item |
Share or amount used |
Total Cost |
Useful life (years) |
Depreciation $/year |
Interest$/yr (8% of total cost) |
Number of hours per year used |
Cost ($) |
|
|
|
|
|
|
|
|
|
|
|
Land |
|
|
|
|
|
|
|
|
|
Cropland |
$1000/A |
2 acres |
$2000 |
na1 |
na |
$160 |
na |
$80/ A/year |
|
|
|
|
|
|
|
|
|
|
|
Improvements and Facilities |
|
|
|
|
|
|
|
|
|
Storage Buildings |
$5000 |
10% |
$500 |
10 |
$50 |
$40 |
na |
$90/yr |
|
|
|
|
|
|
|
|
|
|
|
Equipment2 |
|
|
|
|
|
|
|
|
|
Tractor |
$12,000 |
50% |
$6,000 |
20 |
$300 |
$480 |
120 |
$6.50/hr |
|
Rotovator |
$3000 |
100% |
$3000 |
15 |
$200 |
$240 |
50 |
$8.80/hr |
|
Cultivator |
$500 |
100% |
$500 |
15 |
$33 |
$30 |
70 |
$0.90/hr |
|
Farm truck |
$25,000 |
2% |
$500 |
5 |
$100 |
$40 |
25 |
$5.60/hr |
|
Storage Containers |
$100 |
100% |
$100 |
5 |
$20 |
$8 |
na |
$28/yr |
|
Drying Frames |
$200 |
100% |
$200 |
5 |
$40 |
$16 |
na |
$56/yr |
|
Hand tools |
$200 |
90% |
$180 |
10 |
$18 |
$14 |
50 |
$0.65/hr |
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Costs |
|
|
$12,980 |
|
$761 |
$1028 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Not Applicable.
2Note: gas, oil, and repairs are not included in equipment costs. A formula or percentage may be used to estimate future costs, or farm records can be used to record actual costs.
3Use the numbers in this column to complete Table 10.
Table 8. Worksheet for calculating fixed costs. This table should include existing equipment, new equipment purchases, and used/rebuilt equipment.
|
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Item |
Cost of Item |
Share or amount used |
Total Cost |
Useful life (years) |
Depreciation $/year |
Interest$/yr (8% of total cost) |
Number of hours per year used |
Cost |
|
|
|
|
|
|
|
|
|
|
|
Land |
|
|
|
|
|
|
|
|
|
Cropland |
|
|
|
|
|
|
|
|
|
Woodland |
|
|
|
|
|
|
|
|
|
Other land |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Improvements and Facilities |
|
|
|
|
|
|
|
|
|
Storage Buildings |
|
|
|
|
|
|
|
|
|
Dryers |
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
Equipment1 |
|
|
|
|
|
|
|
|
|
Primary Tillage |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
Cultivation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harvest |
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fixed Costs |
|
|
$ |
|
$ |
$ |
|
|
|
|
|
|
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|
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Marketing
A marketing plan is essential when examining growing herbs. Marketing herbs is unlike conventional crops with established markets and where market information is readily obtained. Markets exist for herbs, but the market is likely to be a small or niche market. Like most niche markets, finding an accurate assessment of wholesale prices is difficult. However, prices can be obtained for retail items, especially those that have been processed.[7] These retail prices are often substantially higher than the wholesale price offered to the grower. Thus, it is important that growers have a market plan in place before starting production and entering this industry.
The driving force in the industry is the relatively few large corporations that control manufacturing, distribution and marketing of herbal products. Herb marketing involves many channels. Some growers do their own processing and market their own brands in health food stores. Some growers have a satisfactory outlet through an individual herb distributor. Oftentimes herb marketing is achieved by using brokers. Many growers sell to small dealers or brokers who sell to larger dealers or pharmaceutical manufacturers who form capsules, extract or tincture that is marketed in grocery and drugstore chains.
Growers must show an ability to produce before they can reach established markets. Buyers also want assurances the grower can provide a product for several years. Neither local dealers nor large dealers will enter into a contract with an inexperienced grower until they know what the grower can produce. A grower might raise a trial plot to supply the dealer with a product sample and build a reputation for quality and reliability. Thus a long-term commitment is required to grow herbs. Large dealers and manufacturers often have minimum amounts that they will buy and will offer contracts to selected established growers.
Knowing what herbs to grow can be a problem. Trends change constantly and growers need to keep informed of what the current market is demanding.[8] Yet, there are few sources of information on the herb market to which growers can turn. To address some of these marketing concerns, the Great Plains Herb Growers Association was organized in 2001. This not-for profit association was formed “to foster communication among herb growers, herb buyers, retailers, herbalists, health practitioners and other interested parties; to cultivate, foster and promote interest and participation in the growing and use of herbs; to further the knowledge and safe use of herbs and herbal products; to educate farmers and others about organic cultivation practices for medicinal plants best suited for the Great Plains by region; and to provide collective resources to aid in the production, processing and marketing of organically grown, high quality herbs.”[9] Contact information for the Great Plains Herb Growers Association and other marketing resources are listed in the references section of this handbook.
Economic Factors
The profitability of any enterprise depends on successful marketing and knowing costs of production. However, production costs for growing herbs are hard to obtain and in fact are virtually non existent in the published literature. Producers growing herbs should carefully assess their enterprise budgets for specific herbs to monitor whether the enterprise is profitable.
Factors to consider include location, size, machinery, labor use, marketing activities and growth habits of specific herbs. The general growing habits of herbs fit into three categories: annuals, quick perennials, and long-term perennials. Herbs classified as annuals are planted and harvested in a one year time period. Crops such as wheat, corn, tomatoes and melons have a similar growing habit. Quick perennials are planted one year and completely harvested at one time in subsequent years after they have reached maturity. Not many other agronomic crops besides herbs fit into this growing habit category. Biennials for seed production are a close example. The last growing habit classification, long-term perennials are harvested over a number of years and are not destroyed by harvesting. Woody and non-woody plants are in this category. Agronomic crops that fit into this category include alfalfa, asparagus, berries, and apples.
A fast growing herb may return a quicker profit, but perhaps the herb is sold at a lower price, because it is easy for others to grow too. A longer growing, perennial herb, may be slower to return a profit, and two or more years of costs may be incurred before the herb is harvested. However, some of these crops sell at a higher value per pound, so one could make as much or more per acre on a slow growing, but higher value crop.
The following tables are a starting point for developing enterprise budgets for specific crops. Table 9 can be used to estimate the gross income per acre. Also from Table 9, one can see how gross income will change if the price for an herb drops from $10 per lb, to only $6 per lb, for example, or how income would change if one had a drought year, and the marketable yield was only 600 lb per acre, rather than the estimated 1000 lb. Taking these "what if" scenarios into consideration is important when estimating risk. Some of these scenarios could also be explored using Table 10 as a template.
Table 9. Gross Income ($/Acre) Calculated from Estimated Yield and Price Information.
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Price per pound ($) |
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1 |
2 |
4 |
6 |
8 |
10 |
15 |
20 |
30 |
40 |
50 |
|
Yield lb/A |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50 |
50 |
100 |
200 |
300 |
400 |
500 |
750 |
1,000 |
1,500 |
2,000 |
2,500 |
|
100 |
100 |
200 |
400 |
600 |
800 |
1,000 |
1,500 |
2,000 |
3,000 |
4,000 |
5,000 |
|
200 |
200 |
400 |
800 |
1,200 |
1,600 |
2,000 |
3,000 |
4,000 |
6,000 |
8,000 |
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