1. eFarmer.us Kale and Mustard Greens Production, Market, and Expected Return December 2008 copyright eStudy.us 2008 michael.roberson@eStudy.us

2. eFarmer.us Overview Climate – Kale and Mustard Greens are cool season crops. Extreme cold and heat temperatures prevent year-round land production in Kentucky. The greens should be planted in early spring or late summer/fall. History – Crucifer or Mustard Family (Brassica juncea) – Mustard Greens originated in India – Kale belongs to Brassica oleracea family (Acephala Group) which is a form of Cabbage. English settlers brought Kale to the US in the 17 th century. copyright eStudy.us 2008 michael.roberson@eStudy.us

3. eFarmer.us Market Opportunities Worldwide, National – Europe, Asia, North and South America consume large quantities of greens Direct Market – Farmer’s markets, roadside stands Wholesale Market – Produce auctions, local retailers, restaurants Price - Greens range from $5.50-$8.40 per box with an average price of $7.00 copyright eStudy.us 2008 michael.roberson@eStudy.us

4. eFarmer.us Marketing in Kentucky Find the market and establish a price – Research local and statewide markets by using trade magazines, Cooperative Extension Service, KY Vegetable Growers Association, KY Department of Agriculture, KY Farm Bureau, The Commodity Growers Cooperative, and the US Department of Agriculture. In order to choose a market, consider local facilities, time available for marketing, production volume, and financing. Possibilities for marketing – Roadside or on the farm markets, pick- your-own sales, farmer’s markets, produce auctions, or marketing cooperatives. Local wholesalers, grocers, and restaurants may also purchase directly from growers. However, this requires a greater investment in containers, cooling equipment, and transportation. Some may require the application of price look- up (PLU) stickers. Marketing cooperatives provide access to clean, grade, and cool produce. copyright eStudy.us 2008 michael.roberson@eStudy.us

5. eFarmer.us Marketing continued Healthy foods are gaining popularity across the nation. When marketing Kale and Mustard greens, be sure to emphasize the following: Mustard greens promote lung health, essential vitamins and nutrients for a healthy heart, women’s health (menopause), and protection against rheumatoid arthritis. Kale contains high amounts of beta carotene, vitamins K and C, and calcium. It is also important to note that some varieties of Kale are used for ornamental purposes. copyright eStudy.us 2008 michael.roberson@eStudy.us

6. eFarmer.us Production Characteristics copyright eStudy.us 2008 michael.roberson@eStudy.us Soil Test Results (lb./A) Fertilizer Needed (lb./A) PhosphorusPhosphate Low <31 121-180 Medium 31-60 1-120 High >60 0 PotassiumPotash Low < 201 101-150 Medium 201-300 51-100 High 301-450 1-50 Very High >450 0 Nitrogen Usually, soil tests are performed before planting crops. This table illustrates the amount of fertilizer needed according to the test results. Apply 100 to 150 lbs of actual Nitrogen per acre. Apply 25% to 50% broadcast with other fertilizer before seeding/transplanting and disk in well. The remainder can be divided into one or more side dressings (Bessin, p. 51). Bessin, Rick. Vegetable Production Guide for Commercial Growers, p. 51.

7. eFarmer.us Greens can be produced as Row Crops Raised beds with plastic (6’’ H x 32’’ W with 5 to 6 feet between centers of the bed) Raised beds without plastic (2-3 rows per bed) Greenhouse Crops Greens can be direct seeded or transplants. If using transplants, keep them in the greenhouse 4 to 6 weeks before planting in the field (transplants result in earlier crops than direct seeded crops). Tobacco float beds may be used for production of greens. copyright eStudy.us 2008 michael.roberson@eStudy.us

8. eFarmer.us Production Kale VarietiesMaturity (Days)Mustard Varieties Maturity (Days) Winterbor50-55 Savannah35 Darkibor50-55 Tendergreen40 Redbor55 Southern Giant45 Red Russian50 Green wave45 Blue Knight45-55 Florida Broadleaf50 Blue Armor47-57 Vates57 copyright eStudy.us 2008 michael.roberson@eStudy.us Source: Bessin, Rick. Vegetable Production Guide for Commercial Growers, p. 50.

9. eFarmer.us Diseases & Pests – Downey mildew, powdery mildew, various fungal leaf spots – Cutworms, wireworms, aphids, flea beetles, leafminers, leafhoppers, and white fleas copyright eStudy.us 2008 michael.roberson@eStudy.us

10. eFarmer.us Insecticides copyright eStudy.us 2008 michael.roberson@eStudy.us Actara 25 WPDimethoate 4 EMalathion 8Sevin XLR Admire ProEndosulfan 3 ECOberon 2 SCSpintor 2 SC Assail 30 SGFulfill 50 DFPlatinum 2 SCTrigard 75 WP Beleaf 50 SGIntrepid 2 FProvado 1.6 F Bt productsKnack 0.86 ECPyrethrin Confirm 2 FLorsban 75 WPRadiant SC InsecticidesRestricted Use Asana XLDiazinon 50 WMustang Max Baythroid XLDimilin 2LProclaim 5 WDG Daizinon AG500Lannate 90 SPRenounce 20 WP Source: Bessin, Rick. Vegetable Production Guide for Commercial Growers, p. 52.

11. eFarmer.us Fungicides Fungicides forMustard & Kale Acrobat 50 WPCabrio EGRovral 4 F Forum SCEnduraIprodione 4L AG Actigard 50 WGFixed Coppers 2 Sulfur Aliette WDG 3 Maneb 1 Ultra Flourish Azoxystrobin 2 Ridomil Gold EC/SL copyright eStudy.us 2008 michael.roberson@eStudy.us 1 For use on Kale only. 2 Several formulations are marketed. 3 The use of Aliette in the following KY counties has certain restrictions to protect endangered freshwater mollusks and their habitat: Campbell, Green, Hart, Kenton, Marshall, Rockcastle, Todd, Warren, and Wayne. Source: Bessin, Rick. Vegetable Production Guide for Commercial Growers, p. 52.

12. eFarmer.us Harvest Mustard and Kale are harvested when their stalks are young and tender as whole plants or individual leafs. Greens have a high respiration rate which means that they must be washed, packed, stored or sold as soon as possible. Mustard and Kale are usually field packed and top-iced in waxed corrugated boxes or wooden crates. Smaller producers can band together three to five stalks whereas larger producers require labels and PLU stickers. Harvesting and packing labor averages about 5 boxes per hour for bundled greens. copyright eStudy.us 2008 michael.roberson@eStudy.us

13. eFarmer.us Production Opportunities Capital Requirements-- initial investments may include specialized bed shapers, precision planters, bed cultivators, plastic laying and transplanting equipment, irrigation system, post-harvest washing/cooling equipment. Production-- ranges from bare ground cultivation in single and multiple rows to irrigated, densely planted raised beds. Kale and Mustard greens are produced successfully in tobacco greenhouses. Since the plants prefer cool temperatures, they can be grown just above freezing (production yields will be less than those in the fall). copyright eStudy.us 2008 michael.roberson@eStudy.us

14. eFarmer.us Greenhouse Production A full-time production company will have an initial investment of at least $50,000. Physical resources include: level land for greenhouses, fertile soil that is herbicide free, water source, availability of fuel to heat greenhouse. If retail sales are a possibility, the greenhouses should be accessible to the retail market. Greenhouse building costs range from $1.50 - $10.00 per square foot of greenhouse space depending on the type/size of the greenhouse. Energy costs range from $.25 - $2.00 per square foot per year Heating systems range from $.60 - $3.00 Ventilation/cooling systems $.50 – $2.00 Benches and costs $.75 – $6.00 Irrigation and fertilization system and costs $.10 – $1.00 per sq. ft. copyright eStudy.us 2008 michael.roberson@eStudy.us

15. eFarmer.us Labor requirements depend on the number of acres or square footage of greenhouses. One acre requires 22 hours of labor for field preparation, planting and crop care. Harvest labor requires 80 hours per acre with higher yield crops requiring up to 95 hours per acre. Laborers can bundle an average of five boxes per hour. Production yields an average of 400 boxes per acre. Production costs average $4.00 - $5.00 per box. copyright eStudy.us 2008 michael.roberson@eStudy.us

16. eFarmer.us Opportunity Cost Most vegetables are an opportunity cost of producing only greens. Other vegetables may create higher revenues. The cost of land and equipment that could be used to produce something else or leased out. A farmer’s time can also be considered an opportunity cost of producing greens because the time could have been spent elsewhere. copyright eStudy.us 2008 michael.roberson@eStudy.us

17. eFarmer.us Revenue Revenue sources – Primary Crop: Kale and Mustard Greens have average crop values of $2,800 for greens planted in single rows on bare ground. Net returns vary depending on production techniques, however, it ranges from $800-$1000 per acre. – Secondary sources may include harvesting mustard seeds for Dijon mustard production or producing ornamental Kale. Government Production Incentives: The KY Department of Agriculture offers information regarding government grants. Horticulture Advertising and Market Development Grants, the 2008 Advertising Cost-Share Program, and the 2008 Market Development Cost-Share Program are offered to Kentucky farmers who meet the criteria. http://www.kyagr.com/marketing/farmmarket/grants.htm copyright eStudy.us 2008 michael.roberson@eStudy.us

18. eFarmer.us USDA The US Department of Agriculture (USDA) offers extensive information regarding financial services available to farmers nationwide. The Business and Community Development segment of the USDA contains important information pertaining to available federal grants, re-lending programs, federal loans, and enterprise/opportunity grants. For more information regarding all services offered by the USDA, please visit the website: http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navid= BUSINESS_DEVELOPMENT&parentnav=RURAL_DEVELOPMENT& navtype=RT copyright eStudy.us 2008 michael.roberson@eStudy.us

19. eFarmer.us Expected Return Report copyright eStudy.us 2008 michael.roberson@eStudy.us Acres2004006008001000 Boxes (400/A) 80000160000240000320000400000 Price/box $7.00 Revenue $560,000.00$1,120,000.00$1,680,000.00$2,240,000.00$2,800,000.00 Production Cost ($5/box) $400,000.00$800,000.00$1,200,000.00$1,600,000.00$2,000,000.00 Profit $160,000.00$320,000.00$480,000.00$640,000.00$800,000.00

20. eFarmer.us Risk Market Risk- There is always a chance that products will fail in the market. If producers do not establish positive business practices, positive customer relationships and a positive image in the market, goodwill and sales will suffer. Production Risk – due to low light levels and high heating costs, economical greenhouse production in winter is nearly impossible. Without proper care, plants will not survive. Severe weather conditions may also negatively affect greens production. Financial Risk- Former producers are not as big a risk to banks as those who have never cultivated land. Banks will require a business plan for production of produce before lending to individuals. The Cooperative Extension Service and the KY Department of Agriculture have special services to aid farmers in developing a business plan. copyright eStudy.us 2008 michael.roberson@eStudy.us

21. eFarmer.us Basic Summary Market Opportunity – High demand for greens in KY and the US (47,000 acres harvested in 1996 with the demand increasing each year) Advantages of Western and Central Kentucky – Climate – Great climate for production of greens – Tobacco operations can be adapted to produce greens efficiently – Risks vs. tradition crop – Without proper marketing, the overall risk of producing greens increases copyright eStudy.us 2008 michael.roberson@eStudy.us

22. eFarmer.us References Bessin, Rick (Ed.). (2008).Vegetable Production Guide for Commercial Growers (p. 49-57). UK Cooperative Extension Service: College of Agriculture. Retrieved from http://www.ca.uky.edu/agc/pubs/id/id36/021-057.pdf http://www.ca.uky.edu/agc/pubs/id/id36/021-057.pdf Clemson Extension Department of Applied Economics and Statistics. Spring hand harvested greens. Retrieved from http://cherokee.agecon.clemson.edu/greens6.pdf http://cherokee.agecon.clemson.edu/greens6.pdf Marr, C. and Rogers, D. (2008). Commercial Vegetable Production: Drip Irrigation for Vegetables. Kansas State University Agricultural Experiment Station and Cooperative Extension Service. Retrieved from http://www.oznet.ksu.edu/library/hort2/mf1090.pdf http://www.oznet.ksu.edu/library/hort2/mf1090.pdf copyright eStudy.us 2008 michael.roberson@eStudy.us

23. eFarmer.us UK Cooperative Extension Service. (2006). Greenhouse-grown lettuce and greens. University of Kentucky: College of Agriculture. Retrieved from http://www.uky.edu/Ag/NewCrops/introsheets/lettuceintro.pdf http://www.uky.edu/Ag/NewCrops/introsheets/lettuceintro.pdf UK Cooperative Extension Service. (2007). Leafy Greens. University of Kentucky: College of Agriculture. Retrieved from http://www.uky.edu/Ag/NewCrops/introsheets/leafygreens.pdf UK Cooperative Extension Service. (1999). Marketing Options for Commercial Vegetable Growers. University of Kentucky: College of Agriculture. Retrieved from http://www.ca.uky.edu/agc/pubs/id/id134/id134.pdf http://www.ca.uky.edu/agc/pubs/id/id134/id134.pdf UK Cooperative Extension Service. (2002). The Greenhouse Business in Kentucky: A review of crops and how to begin a business. University of Kentucky: College of Agriculture. Retrieved from http://www.uky.edu/Ag/HLA/anderson/greenhousesinkentucky. pdf http://www.uky.edu/Ag/HLA/anderson/greenhousesinkentucky. pdf copyright eStudy.us 2008 michael.roberson@eStudy.us

24. eFarmer.us Agriculture Websites Kentucky Department of Agriculture http://www.kyagr.com/http://www.kyagr.com/ United States Department of Agriculture http://www.usda.gov/wps/portal/usdahome http://www.usda.gov/wps/portal/usdahome Whole Foods is an excellent resource for nutritional information on leafy greens. Kale: http://www.whfoods.org/genpage.php?tname=foodspice&dbid= 38#historyuse http://www.whfoods.org/genpage.php?tname=foodspice&dbid= 38#historyuse Mustard Greens: http://www.whfoods.org/genpage.php?tname=foodspice&dbid= 93#historyuse http://www.whfoods.org/genpage.php?tname=foodspice&dbid= 93#historyuse copyright eStudy.us 2008 michael.roberson@eStudy.us