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

cegundacker@scenicvalleyfarms.com

Erik Gundacker (563) 650-3654

gun@usinternet.com

www.scenicvalleyfarms.com