share farms
Post on 02-Jun-2015
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SHARE Farms: A Sound Local Investment
• Investor owned high tunnel greenhouse farms• Environmentally and financially sustainable • Increases yields and extends the growing season• Responds to growing demand for locally grown, organic
produce• Synergizes the technologies to earn a solid return on
investment
Sustainable Agriculture. Clean Energy.
Sustainable High Tunnel Agriculture + Renewable Energy (SHARE) Farms
• Hybrid of open field and greenhouse production
• Non-permanent structures• Less expensive than
greenhouses • Constructed with horizontally
supported metal hoops, covered with heat retaining, light dispersing, anti-drip plastic
• Plastic efficiently rolled up and down to manage air flow
• Crops planted in ground• Drip irrigation optimizes water
and natural fertilizer inputs.• Versatile in size and shape• Incentives available at Federal
and State levels
High Tunnel Agriculture
Environmental Management System (EMS)
• User manages high tunnel environment from any internet accessible device
• Software automates high tunnel climate
• Sensors connected to a Programmable Logic Controller (PLC)
• PLC wirelessly connected to a PC or hand held device
• SVF awarded approx. $100,000 USDA Small Business Innovation Research Grant to develop system
• Testing occurring in high tunnels in both Minnesota and Wisconsin
Solar Thermal Heating
• EMS controlled circulation fan captures heated air from collectors during day
• Solar thermal mass releases heated air at night when required
• Extends growing season to allow for additional crops and harvests
• Eliminates propane fuel and greenhouse gas emissions
• Federal Investment Tax Credit or Renewable Energy Grant (proposed)
• USDA Renewable Energy for America Program (proposed)
Small Wind Energy
Overview• Turbines of 100 kW or less in
size• Generates electricity for
SHARE farms • Creates income from excess
electricity• Solid, long-term investment• Investors receive federal,
state, and utility grants• Offsets investors’ tax
liabilities • Eliminates operational C02
emissions
Incentives• Federal Investment Tax
Credit or Grant (30%)• USDA Rural Energy for
America Program (25%)• Accelerated Depreciation
(30% for 30% tax bracket)• Wisconsin Small
Renewable Energy System Grant (25%)
• Electric Utility Grants (varies)
• Sale of excess electricity (≤ 40 kW)
• Designed for wholesale buyers, regional producers, and shipping services
• Provides up-to-date information on type, grade, quantity, availability and price (optional) of produce
• Provides links to freight routes, schedules and common carriers
• Open to registered users who complete a profile
• Operates initially at a regional level before potentially expanding
Open Web-Based Exchange
• Boost fruit and vegetable yields up to four fold compared to field grown produce
• Generate jobs in rural economies • One acre share farm creates 15-20 jobs
• Create a year round growing environment • Meet consumer demand on either end of the
production curve when competition is lower and prices are higher
• Generate income from wind energy• Produce higher percentage of 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 • Eliminate propane fuel and electricity expenses• Shorten shipping distances = lower freight costs• Create new regional produce
SHARE Economic Benefits
• Conserve water by employing drip irrigation
• Diminish operational greenhouse gas emissions
• Reduce soil erosion through organic mulching practices
• Minimize or eliminate synthetic pesticides and fertilizers
• Promote natural organic practices• Protect crops from climate and
weather extremes• Reduce input levels for nutrient,
disease, pest, and insect control• Respond to water shortages in other
regions of the country
SHARE Environmental Benefits
Boosting Produce Yields
• Yields typically 200-300% higher in high tunnels
• Our organic tomato yields in 2011 = 20 lbs per plant
• 20 lbs per plant X 540 plants per tunnel X $2.00 per lb (conservative) = $21,600 gross revenues
SVF high tunnels outperformed yields at University of Minnesota Southwest Research and Outreach Center (SWROC)
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SVF Weekly Determinate Tomato Harvest (2011)
SVF High Tunnels
Aver
age
mar
keta
ble
lbs p
er p
lant
Total = 19.5 lbs per plant
Extending the Season
Blackberries on November 14,2010 and Tomatoes on November 1, 2011 in Scenic Valley Farms owned high tunnels
Improves Produce Quality
Tomatoes planted at same time in spring
High Tunnel Grown Outdoor Grown
Spur Job Creation
The Basic Structure of a SHARE Farm
Scenic Valley Farms Accredited Investors
Services Provided
Establishes each SHARE farm as an LLC Provides Start-up Capital (construction, supplies, payroll)
Provides turnkey installation and maintenance services Not required to fund
development of EMS (USDA SBIR funded)Maintains overall management responsibility
Hires and supervises Production Manager
Handles Marketing and Distribution
Design, Develop, Test EMS (USDA SBIR funded)
Ownership 25 percent of LLC 75 percent of LLC
RevenueSale of organic produce and EMS Sale of organic produce and
EMS
Profit Distribution
25 percent of net profits 75 percent of net profits
Exit Strategy
Sale of membership units to Production Manager
200 percent return on capital contribution + Sale of membership units to Production Manager
Estimated Return on Investment (8 conventional and 2 solar thermal high tunnels)
Crop Market Price ($/lb) $2.25 Annual Market Price Inflation 3% Total Annual Farm Yields (lbs) 110,000 Pre-Taxation Post-Taxation Year Minnesota
Angel Tax Credit (25%)
Bonus Depreciation (tax credit)
Investor Share of Farm Income (75%)
Financial Payback
Accumulated Return on Investment
Investor Share of Farm Income (75%)
Financial Payback
Accumulated Return on Investment
0 546,425 546,425
1 137,500 163,625 83,531 161,769 71% 54,295 191,005 65%
2 86,037 75,732 86% 55,924 135,081 75%
3 88,618 12,887 102% 57,602 77,479 86%
4 91,277 104,164 119% 59,330 18,149 97%
5 94,015 198,179 136% 61,110 42,961 108%
6 96,836 295,014 154% 62,943 105,904 119%
7 99,741 394,755 172% 64,831 170,736 131%
8 Activation of Unit Option
Agreement
102,733 497,488 190% 66,776 237,512 143%
9 105,815 603,303 210% 68,780 306,292 156%
10 108,989 712,292 230% 70,843 377,135 169%
Total 957,592 622,434
Contact Us
Erik Gundacker(563) 650-3654
gun@usinternet.comscenicvalleyfarms.com
svgreenenergy.com
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