Chapter 2: Introduction to Planning for

In this chapter step, will help line out the inputs needed over time in order to keep the agroforestry practice • Developing a Plan for a meaningful and productive component of the Agroforestry farm system for years to come. • Identifying Land Uses, Resources, Goals and Market Opportunities Steps to Developing an Agroforestry Plan Developing a plan may seem tedious at the be- Personal Assessment Step 1: Initial Objectives and Priorities Step 2: Evaluate Personal Resources ginning, but the long term benefits far outweigh plan, landowners can better envision how to Biophysical Site Assessment the difficulties of plan creation. By having a successfully integrate an Agroforestry Practice Step 3: Identify Current Land Uses to their farm. And, the planning process will Step 4: Map Area(s) for Agroforestry Development also help develop a familiarity with the man- Step 5: Climate Assessment agement that is required in order to reach the Step 6: Soil Assessment Step 7: Physical Features (Terrain) are desired. The best way to ensure success is Step 8: Timber and Non-Timber Crop bygoals, thoughtful objectives, and benefits honest planning.and economics that Inventory Agroforestry Development Ideas Step 9: Agroforestry Ideas – Brainstorming A Plan for Integrating Step 10: Listing ‘Best Bets’ Agroforestry on the Farm Evaluating the ‘Best Bets’ in the Why plan? The development of a plan for Context of the Industry integrating agroforestry practices to the farm Step 11: SWOT Analysis system is as important as the actual establish- Step 12: Porter Five Forces Model Step 13: Revising your ‘Best Bets’ ment of the practice itself. Planning -- and the Marketing Strategy for ‘Best Bets’ development of a timeline -- will help maximize Step 14: Select and Describe Target Market(s) the chances for the success of the agroforestry Step 15: Adding Value to Products practice. Planning will not only assist in under- Step 16: Getting Products to the Buyer standing how the practice and its placement on Step 17: Setting the Price Step 18: Promoting Your Products goals, but will provide assistance in identifying Agroforestry Practice Design and Management marketthe landscape opportunities can accomplish for products specific that on may farm be Step 19: Revisit Your Objectives and Priorities grown in the practice. Remember: Diagnosis Step 20: Detailed ‘Best Bets’ Crop Information precedes treatment. Step 21: Designing Your Agroforestry Practices The Agroforestry Development Plan The culmination of the planning process is the Step 22: A Five-Year Management Projection development of a 5-year management and ac- Step 23: Yearly Activity Schedule tivities schedule. This final, yet very important

16 Training Manual for Applied Agroforestry Practices – 2013 Edition Coupled with the Workbook (See Appendix Sec- In addition to identifying available resources, tion 5: Planning for Agroforestry Workbook), these steps are designed to help guide you in the Workbook forms will help you explore through the various stages of creating a plan for andsite conditionsarticulate your and marketablevalues and attitudes. plants, filling Every your agroforestry development area(s), and will landowner will have different personal and pro- assist you in gathering information on: duction goals for an agroforestry development, and your plan for your land will be different • Your objectives and priorities from someone across the country, State, or even • Personal resources (e.g., labor, equipment, across the road. To accommodate these differ- buildings, animals, plants) ences, this guide is not based on a single set of • Climate, soil conditions and physical features goals. Instead, it has been developed to provide • Current land use a set of tools that you can use to make informed • Land available to practice agroforestry • A non-timber plant inventory (for woodland business. only) decisions in creating a profitable agroforestry • Market conditions for potential products An agroforestry development plan is based on the capability of your land, your personal goals, Together with chapters three to 10 of this your business goals, and your land steward- - ship objectives. These goals and objectives will mation provided in the appendices, the steps be re-assessed and changed as you obtain new providedmanual and in thisthe /shrub/grass/forageworkbook will allow you inforto information during the planning and initiation identify what agroforestry products can grow on of an agroforestry development. Agroforestry your land, which of these products you can sell practices are always changing, and understand- ing and working with change will help you best achieve your goals. profitably, and how to develop basic business schedule,and marketing outlining strategies. the work The you final plan steps to doare to a There are many sources of information and establishfive-year developmentyour agroforestry plan development(s).and yearly activity The advice available to assist you with your time you put into researching, preparing and fol- agroforestry development. Since agroforestry lowing your plan is an investment in your future - agroforestry success. estry, agronomy, animal husbandry, , soilpractices science, often marketing) involve various you may fields have (e.g., to aug for- The steps presented in the following pages—de- ment your personal knowledge. Sources listed at signed to guide you in creating an agroforestry the end of each chapter in the training manual plan—are often inter-related, and information are designed to guide you. gathered in one step will likely impact informa- tion gathered in other steps. For this reason, the creation of your plan will likely require you to How to Proceed revisit (and expand) each step as you learn more and develop new ideas. The Workbook forms can be photocopied as needed.You’ll find The a pull-out information, Workbook tools and in Appendix links you 5. Note: The succession of steps has been orga- need to complete the plan are found in chapters nized to help you develop your plan logically. that follow (chapters 3 to 10). You need not complete each step in the order they are presented. You may prefer to gather It is recommended that you read through these information in a way that best suits your circum- steps before you begin to write down informa- stances. tion in the corresponding chapters of the Work- book.

University of Missouri Center for Agroforestry 17 Note: Depending on the size of your property, Step 2: Evaluate Personal Resources you may have one or more areas on which you In addition to your land base, your agroforestry want to develop agroforestry practices. Planning development will require the input of other per- will be easier if you prepare separate forms for sonal resources. An evaluation of the resources each separate development area, especially if available to you will help determine which potential agroforestry development areas have agroforestry options are best suited to your different site conditions and current uses. operation. An evaluation should include:

Step 1: Initial Objectives and Management and labor availability – Periods Priorities during which you are not busy (between or after Landowners exploring multiple uses for their harvests) and the periods during which labor property face many preliminary decisions. Not and management time will be committed to least, if you have a number of different objec- other activities. tives for an area, some may seem to be in con- Equipment and buildings – Buildings and equip- a set of individual values and attitudes. Your ment, including machines and hand tools, that personalflict. The choicesand business each landownergoals become makes the criteriareflect can be used for this development. for assessing the different possibilities for your land. Livestock – Your operation may already have cattle, sheep or other animals. Your land management objectives and priori- Plant material – Your own sources of seed, seed- the area you want to develop for agroforestry. lings, cuttings and larger . However,ties will be among specific other to your possibilities, circumstances you andmay want to: Other materials – Resources such as sawdust or • Develop a new source of income from unpro- shavings, manure and straw for mulch. ductive land (diversification) • Reduce costs of an existing farm or forest List these personal resources, as well as any- operation thing else that you consider of importance, in • Develop a source of long-term income the table provided in the Workbook. • Develop a source of short-term income while awaiting long-term income from timber Step 3: Identify Current Land Uses • Reduce property taxes List the present uses of each area of your land • Protect or improve environmental conditions and the products you harvest, and record them • Increase grazing opportunities in your Workbook. These uses could include:

Turn to the Planning for Agroforestry Work- Residential book: Appendix 5 and complete the table of Recreational initial objectives and priorities. Remember that Farming (which crops) these initial objectives may change as you learn Grazing (type of livestock) more about your land and your agroforestry Timber production Non-timber production will be able to weigh your objectives against Environmental use whatbusiness. you Aftercan actually you finish produce this assessment, on each area you of your land.

18 Training Manual for Applied Agroforestry Practices – 2013 Edition Step 4: Map Area(s) for Agroforestry walnut trees requires a different level of site as- Development sessment than the planting of a shallow-rooted annual crop. Even if you plan to begin small, with An agroforestry development may include all of a few tree seedlings on a fence line and a small - planting of medicinal herbs, you should still as- sess the limitations and potential of your land. riparianyour land zone. or only In either specific case, areas, identifying such as existobjec- tivesing woodlands, and making open decisions field, logged-over will be much area easier or if The information provided here, and the accom- you break your land into separate development panying form in the Workbook, provides a basic areas with similar current uses and site condi- site assessment. More detailed assessments tions (such as soil, moisture and existing plants). require added time, equipment and expertise. Steps in the Workbook, including the sketch They are only worth doing if it will help with a map, should be completed for each separate critical aspect of your agroforestry development. development area. Pages of the Workbook can For most developments, they are not necessary. be copied for this purpose.

For each agroforestry development area, you Step 5: Climate Assessment should: Climate on your site ultimately determines what - Draw a sketch map of the area you are target- you can grow on your land. Combining this data ing for agroforestry development. Using the leg- with the information provided in Appendices 2 end provided in the Workbook, indicate bound- and 3 will establish the range of possibilities for ary lines, main geographic features, houses, your agroforestry practice. other buildings and roads. The US Department of Agri- - Identify and measure the area approximately, Hardiness Zone - culture Plant Hardiness Zone Map has mapped marking these measurements on the sketch. plant hardiness zones for the entire country. You This will help determine planting requirements - and potential crop production. ferent regions of the USA at the USDA National There is some overlap between Step 3 and Step can find the Plant Hardiness Zone Map for dif 4, since you will indicate these uses on your sketch map. Step 3 gives an opportunity to pro- Arboretum website: http://www.usna.usda. vide information on land use in greater detail, gov/Hardzone/ushzmap.html and by thinking about land uses, you may decide your State go to the following website and click to modify your sketch map. To locate a Plant Hardiness Zone Map specific to- DAZoneMaps.exe?MyState=MO Why Assess Your Land? on your State: http://www.growit.com/bin/US Assess climate, soil and physical features on These zones rate the conditions affecting win- each site on which you intend to develop an ter survival of plants. The primary factor is the agroforestry practice. These assessments will minimum (coldest) winter temperature, with allow you to determine: some consideration for the number of frost-free • Which plants you can successfully grow on days, summer rainfall, maximum temperatures, each site snow cover and wind. • Limitations to planting and growing these plants Most information sources, and suppliers of seeds • The most effective management practices and plants, list the minimum hardiness zone for particular plants. Plant breeding programs have Assessments can be as detailed as you want, or resulted in cultivars or selections of many plants as required by the project. The introduction of that differ in hardiness from their parent (check long-term or special-needs crops such as black this carefully to prevent a costly error).

University of Missouri Center for Agroforestry 19 In some cases, the hardiness zone mapping is The classes are ranked from I (highest) to VIII only an approximate guide for local conditions. (lowest), but the capability subclasses refer Enter hardiness zone information in the table to soil groups within a class. Classes I - IV are provided in the Workbook. Additional informa- considered capable of the sustained production date of soil thaw, should also be included in the limiting as the land capability declines from table.tion you may find, such as frost-free days and Classof common I to Class field IV. crops. Class Crop V lands species are only become capable of producing perennial forage crops or specially Soil Information Sources adapted crops. Class VI lands are capable of providing sustained pasture. Class VII land are Information about various versions of a incapable of either arable culture or grazing. soil survey can be obtained one of three Capability Subclasses include: (e) runoff and ways: erosion; (w) wetness; and (s) root zone or tillage problems - shallow, droughty or stony. • By checking the list of published surveys on the soils web site of the USDA List the climatic, capability rating and limiting • By contacting the appropriate state office of factors for your site, as well as any other in- the NRCS formation you believe might be useful, in your • By contacting the appropriate local office of Workbook. the NRCS Soils are an extremely important feature of Note: Additional information about Mis- your land base because they are the material in souri soils can be found at the Missouri which the plants of your agroforestry practice Cooperative Soil Survey web site at will grow. Soil survey publications represent a (http://soils.missouri.edu). snapshot in time. They contain information that was current as of the indicated publication date. The text, tables and soil maps may have been Step 6: Soil Assessment updated since publication. The most up-to-date Land Capability Classification - The Land information is available on the NRCS Web Soil the suitability of soils for most kinds of agricul- Capability Classification shows, in a general way, Survey (http://websoilsurvey.nrcs.usda.gov/ app/) or the Soil Data Mart online at (http:// crops,tural land the userisk orof fielddamage crops. if they The are soils used are for Readsoildatamart.nrcs.usda.gov/). about the soils (formation of soils), look at crops,grouped and according the way theyto their respond limitations to manage for field- a soils map, then examine your soils. One way ment. There are two principle categories in this to gain an understanding of your soil is to dig several soil pits at least 18" deep, and examine Capability Subclass. your soils for several important features. How- classification system, the Capability Class and ever, soils are landform dependent, and samples taken should represent different landforms and potential of local areas for agricultural produc- positions on those landforms. It is recommend- tion.The Land County Capability Soil Surveys Classification contain the identifies Land Ca the- ed to dig one or two pits per acre, and more if - The County Soil Surveys also provide useful tail on soil assessment, see Additional Resources climatepability information.Classification for all soils in your county. atthe the area/landform end of this chapter. is not uniform. For more de

20 Training Manual for Applied Agroforestry Practices – 2013 Edition Important note: If you are planning to practice Note and record in your Workbook the approxi- agroforestry on a woodland area, plan to do a mate percentage of rock fragments in the soil plant inventory. Since this requires setting up (stoniness), and depth and type of any restrict- survey plots in a grid system, you probably want ing layers. Show their extent on the sketch map. to do your soil assessments at the same time as your plant inventory. Soil Moisture Soil moisture, which is key to the establishment Soil Texture and Composition and growth of plants, is closely linked to soil tex- Mineral soils are particles of rock or minerals ture. The spaces (pores) between soil particles produced from rock by weathering and other hold water and air needed by plants for good geological processes. Soil textures are grouped growth. Generally, coarser soils are well-drained into the three particle sizes shown in the table and are often dry for longer periods, while soils below. Sands and gravel are the largest particles, while clay and silt soils contain the smallest likely to remain moist longer. Other factors, suchwith fineras ground textures water hold level more or thewater presence and are of an water and dry out more slowly. Organic soil impermeable layer that restricts drainage, also layersparticles. or horizonsThe finer are textured derived soils from hold decaying more determine soil moisture. vegetation, usually in a thin layer above mineral soils. Where found in a sizable layer, they tend to As you dig your pit, is the soil dusty and dry? retain both water and nutrients. Does water seep into the bottom of the hole? Often, the time of year and recent weather will In your Workbook list the soil type(s) found in each of your agroforestry development areas, and map the locations if there is more than one Highinfluence Water soil Table, moisture. Standing Water or Flooding type. Areas such as wetlands and parts of riparian zones which remain fully saturated for extended Soil Depth periods of time are of special concern. These ar- Soil depth determines the rooting capability of eas are sensitive to access development and ma- the plants you may wish to grow. In particular, chine use, and are important for wildlife habitat forest soils can be quite shallow, requiring extra and other environmental values. You will need care in management. You will notice distinct lay- to identify these areas of your land and plan to ers as you dig down and you may come across use especially careful management. Access may restricting layers such as: 1) stones and rock be limited for all or part of the year. outcrops that can interfere with digging and cul- tivation, and can reduce the nutrient and water- In your Workbook and on your sketch map, holding capacity of the soil. Rock outcroppings it is important to note any: wetland features, are areas with very little soil; and 2) hardpan, a hardened layer below the surface of the soil that can prevent penetration of water and roots. runoff,evidence and of areasflooding, with areas continual that experience seepage or high Additional soil features that may be problematic wateroverland table. flows or standing water during spring include: fragipans, claypans, abrupt textural changes and general discontinuity. Deep-rooted Both very wet or dry conditions pose challenges plants such as alfalfa or black walnut will be for planting and management. However, some severely impacted by hardpan. Neighbors and plants are particularly adapted to one or the oth- previous landowners may know if there is a er of these extremes (see Appendices 2 & 3 for hardpan, but you may have to dig several holes a listing of suitable plants). Note the moisture to determine the extent. conditions of various portions of your proposed development area on both your sketch map and in your Workbook.

University of Missouri Center for Agroforestry 21 Nutrients plants. Sloped or bench land that has good air The availability of nutrients in the soil affects drainage is a better choice. the quantity and quality of products produced. You can undertake a soil test to determine the Enter your observations of the physical features mentioned above in your Workbook and on your levels, and recommendations for various crops. sketch map. Tissuesoil pH analysis(acid/alkaline is also balance),an effective specific way (pre nutrient- ferred in forest soils) to determine nutritional Step 8: Timber and Non-Timber status of existing trees and plants. Although Forest Crop Inventory - If you want to practice agroforestry in woodland sue samples are usually sent to a laboratory for areas, this chapter will help you inventory the analysisthere are and soil interpretation. sampling field Inkits, your soil Workbook and tis variety of plants growing on your land—every- note the status of soil nutrients that you have determined and attach any lab reports. inventory of trees described here is restricted to theirthing potentialfrom trees production to herbs on of the non-timber forest floor. prod The- Step 7: Physical Features (Terrain) - The physical features outlined in Step 7 are tions with other plants (e.g., shade, moisture, closely related to – but also different from – the nutrients).ucts (e.g., medicinals, A non-timber florals) vegetation and their inventory interac soil characteristics described in Step 6. For can be used to help create a list of ‘best bets’— ease-of-use, physical features are described plants that can be successfully grown on your separately from soil characteristics. However, land, and will also help you decide how to man- the information you generate through each step is entered into the same table in the Workbook. (i.e., managing competition for sun, water and This allows you to easily see the relationships nutrients).age your woodland There is efficiently literature andavailable productively else- between physical features and soil characteris- where on timber inventory methods (see Addi- tics. There are several physical features that can tional Resources). crops on a site. If you own more than a few acres of land, you influence your capability to produce particular should sample your land base, using inventory Aspect refers to the direction toward which plots to obtain a ‘best approximation’ of the the site slopes (if any). South and southwest- vegetation. Sampling is an excellent compro- facing slopes are usually warmer and drier than mise between doing nothing (and having a very those facing north, and naturally support dif- limited picture of your land) and trying to do the ferent plant communities. Terrain relief refers impossible: counting every tree, shrub and herb on your property. gullied or broken (steep slopes between bench- to whether the site is steep, flat, sloped, rolling, A. Preparing Your Inventory capability, water management, cold air drainage, An inventory should give you a timely snapshot andes). Thisother will microclimate influence access factors. and Frost machine pockets of your land; it should not take too long, nor are one additional feature to consider. Cold the sites where you record information about resulting localized frosts can damage delicate vegetationshould it be and too other difficult. features Inventory on your plots land. are They air flows downhill and pools in low areas. The form a pre-determined portion (or percentage) the spring. Even crop plants correctly chosen for of the larger area you’re interested in sampling. yourflowers hardiness and shoots zone that can start be affected. to grow Assess early in low Multiplying your plot data by the number of areas on your land for potential frost pockets— the absence of native berry plants can be a good indicator. Avoid these areas for frost-sensitive measuredplots that wouldeverything. fit in theSize larger of inventory area will plots give an estimate of what you would find if you actually 22 Training Manual for Applied Agroforestry Practices – 2013 Edition depends on what you’re trying to survey and dices 2 and 3. It is also important to remember the vegetation cover on the plot. In your forest that you should contact buyers before you vegetation survey, you will actually take two harvest, so that you can harvest to the correct separate surveys from the same plot center. This is because you need to collect information about two very different types of vegetation: Trees; Treespecifications. Inventory shrubs and other smaller plants. The tree inventory described here is only in- tended to determine the non-timber resources Plot cruises can be used to estimate the number available (e.g., boughs, vines, bark, burls). of plants in a forest by species, diameter, height, Number of trees and species. Record the num- statistical sampling error which is important ber of trees of each species found at the plot. toform know class and and understand grade. All fixedbefore plot relying cruises on havethe This will assist in determining what non-timber data. A plot cruise simply consists of counting products can be obtained, and what plants can and classifying all trees or plants species in a be grown under the canopy. series of circular sample plots. Circular plots are Tree age. This is optional, but can be useful to plots are evenly spaced throughout the stand know. An increment borer is easy to use and will tousually provide 1/10-acre an equal in sampling size (37.2 of feet all forestradius). types The not harm the trees. Record the age of one or two across all topographic changes average trees per plot.

B. Doing Your Inventory Tree height. This is also optional, and only re- ally useful for a timber inventory. Details on cal- compass line is a vital skill when conducting culating height can be found in the guide “Con- yourLocating vegetation your plots inventory. in the field. It is beyond Following the ascope of this training manual to review compass work - in detail but there are a couple of points to re- ducting a Simple Timber Inventory,” https:// member: uextension.tennessee.edu/publications/Docu - The right compass for the job. Ideally, you Conditionments/PB1780.pdf of trees. Helpful in determining should have a ‘ranger’ type with a mirror in the whether marketable non-timber products can lid, gunsight sighting, liquid dampened needle, be harvested. Also helpful in assessing the pos- and an adjustment for setting declination. sible function as a windbreak. - Staying on track. With a little practice, staying Crown closure. The degree of canopy closure compass level, line up the arrow in the mirror will determine the conditions for raising or en- face,on your sight traverse on the linefarthest is not object difficult. you Holdcan pick the hancing shade-loving species in the understory out through the gunsight (e.g., recognizable tree, rock, stump), and walk toward it. When you Non-tree Inventory Begin your inventory by identifying and listing object to focus on. all the harvestable non-tree species found in the reach that landmark, sight again and find a new plot on your plot sheet. Include plants that pro- Obtain a good guidebook to the plants of your vide good browse if you intend to graze the area. area. Remember that quality can have a big impact on the prices you receive for non-timber For each species, record the following: forest products. That means you will have to Total number of plants for each species. make judgment calls when doing your inventory. - individual plants of each species found in the ing acceptable quality—can be found in Appen- Where possible/feasible, count the number of Information on product specifications—includ plot. This will be easier on an open forest floor University of Missouri Center for Agroforestry 23 than it will be on dense sites. You may choose Once you know the approximate number of to record sites like the latter simply as ‘dense plants of a given species per are you have a fairly coverage.’ This is one of those instances where good idea of the plant resources you have on judgment calls come in. Even an approximate your land. Record the information in the tables number could be useful in developing a harvest- provided in the Workbook. ing plan. Step 9: Agroforestry Development Estimate of the percentage cover for each Ideas – Brainstorming species. How much of the plot do you think the After reading the chapters 3 through 10 in this species covers? Provide an estimate to the clos- training manual, you will probably come up with est 10%. some ideas for agroforestry developments on your property. Once you have done this, it is time Proportion of harvestable vs. non-harvest- to engage in some brainstorming. In addition, able individuals. The aim here is estimate check out the appendices 2 (Trees and Shrubs the amount of harvestable individuals for each for Agroforestry) and 3 (Grasses and Forages for species (none, 20%, 50%). Your decisions will Agroforestry) to develop additional ideas. be based on factors such as size, color, and insect or other damage. If many of the plants are not Brainstorming is the process of putting ideas harvestable in their current condition, cultural down on paper as they come into your head. List practices such as fertilization and pruning may them all and don’t try to self-censor the ideas. be available that would improve product quan- You can reduce this list to ‘best bets’ later. Input tity and quality. from family and friends, as well as ideas from neighboring landowners, can help generate C. Using Your Inventory useful ideas. This is also a point at which expert First, make sure all areas inventoried are advice may expand the list of possibilities. For marked on your map(s). Next, you need to take additional assistance consult the Additional the raw data from your inventory (plot sheets), Resources that are listed at the end of every compile it, and present it in a useful format. That chapter. means taking the information from your sample plots and organizing the information so it repre- For each development area, sort the list by prac- sents your entire development area. tice and record this information in your Work- book. In general, more intensive agroforestry Trees and/or Other Resources per acre practices (e.g., ) are suited for Among your survey information, you have smaller units of land, while the more extensive recorded the number of each plant species that practices (e.g., silvopasture) are suited to larger appears in each inventory plot. Now you want to units of land. convert that number into the number of plants per acre. This is done using the plots per acre factor. The plot information is then extrapolated Step 10: Listing ‘Best Bets’ to one acre and then multiplied by the total The intent of this short but important step is acres. For example, if you counted ten individual to create a list of potential crops that can be witch hazel shrubs in your plot cruise grown on your land. This list of ‘best bets’ will One plot on 1-acre: be based on the information you have gathered so far—including land and personal resources, Plot radius (feet) 37.2 site conditions and current land use—combined Plot size 1/10-acre with the plant information provided in Appendi- Factor to 1-acre, multiply times 10 ces 2 and 3. TotalAverage estimated trillium witch plants hazel /plot per 8 acre = 80

24 Training Manual for Applied Agroforestry Practices – 2013 Edition Perhaps the easiest way to approach this list is etation inventory and brainstormed ideas of agroforestry practices, you can use that infor- the climatic, soil and physical conditions that mation to identify Strengths and Weaknesses, occurby first in determining each of your what agroforestry plants can development grow under Opportunities and Threats or a SWOT analysis areas. Plants you already cultivate on your land, for the crops you think may produce. This can plants revealed by your non-timber inventory, and crop ideas you have developed while gather- you need to address in the rest of the planning ing information, will all form part of this list. process.be helpful in defining and clarifying the issues

You can add substantially to the list by looking As detailed in Chapter 9, Marketing Principles, at Appendices 2 and 3 to see what other plants in identifying strengths and weaknesses, you can be successfully grown on your site, and what will be focusing on factors that are internal to products can be made from them. You want this your business. Opportunities and threats refer list to be as extensive as possible, so you can to the external environment of your business. consider the widest possible range of options. The plan you will develop will be shaped by both internal and external factors; it will build on your strengths and minimizing the impacts resources at your disposal (e.g., labor, buildings, of your weaknesses while in the same time be equipment)Your list can atbe different refined bytimes considering of the year. the These responsive to the opportunities and threats your factors will limit the crops and crop combina- environment offers. tions you can grow. Finally, you can further In the SWOT Analysis worksheet, summarize - the internal strengths and weaknesses and the tion,refine reduction your list byof landrevisiting taxes theor environmental objectives you external opportunities and threats for your protection.have for your land, such as income diversifica business as you identify them today. Consider all aspects: natural, physical and human resources, The list of ‘best bets’ you make in this part of your Workbook should include all the plants that can grow on your land, and the products Stepmarketing, 12: operations,Porter Five and Forces finances. Model that can be derived. Make sure you include tim- The Five Forces Model (developed by Dr. Michael ber products that can be made from trees you Porter of Harvard University) serves as a good would plant as part of an agroforestry develop- framework for assessing different industries ment. If you have done a timber inventory—in you would like to get in. The Five Forces Model addition to the non-timber vegetation inventory list those possible timber products as well. an industry and provides a guideline for under- standingidentifies the coordination resources and relationshipscontrol aspects needed of Along with Chapter 10 of the Training Manual, to be successful in a market. The model is pre- the following steps will help you develop a sented in more detail in Chapter 9 – Marketing marketing strategy, or marketing plan. Each step Principles. Using the information and examples contains directions needed to complete corre- provided in Chapter 9, use the following ideas to sponding sections in your Workbook. You should evaluate the chosen crops in the context of the note that every part of every step might not ap- industry: ply to your situation. Identify Barriers to Entry

Step 11: SWOT Analysis suppliers Having analyzed the current situation of your Identify suppliers/Bargaining power of farm with respect to objectives and priorities, Identify substitutes personal resources, site assessment and veg- Identifying Buyers/ Bargaining power of buyers

University of Missouri Center for Agroforestry 25 Identify competitors and their competitive ad- vantages to identify your target market. Target markets areYour most first commonly task in building characterized a customer as eitherstrategy is Step 13: Revising Your ‘Best Bets’ individual households or businesses. Begin your target market research by developing a cus- grow on your land, and which you can produce withIn Step the 11 resources you identified you have the available.plants that can determine if a market segment is large enough tomer profile. Customer profiles can help you After a thorough analysis using the SWOT Analy- into segments based on differences in their to be profitable. Break your target market up sis and Porter Five Forces Model, the list of ‘best geographic location, demographic characteris- tics, social class, personality, buying behavior or products you think have the best market poten- tial.bets’ When can be selecting refined toa list include of marketable those plants ‘best and benefits sought. bets,’ consider: Example: Product: Elderberry jelly • How difficult is to enter the market? Customer segments: • Is the required supply available? 1. Farmers markets customers • Are there buyers nearby? Geographic: Local area • What is the demand for the crop, relative to Demographic: Mostly female, mid-age, moderate supply? to high household income • How does harvesting and selling these crops Psychographic: Support for local agriculture, fit in with the rest of your production system? health conscious For example, will the crop(s) require big in- puts of labor during an already busy period? food, fresh food, convenience • Is investment of resources (labor and capital) 2.Needs/Preferences: Online customers Prefer locally produced likely to provide an adequate return? Geographic: Nation-wide (USA) • How does that return compare to other pos- Demographic: Younger, moderate to high house- sible crop/product options? hold income, high level of education • Where possible, use your vegetation inventory Psychographic: Price sensitive information to list the approximate volumes - of the crops you have for sale. For crops not ping from home yet planted, you should estimate how much 3.Needs/Preferences: Health food stores Likecustomers the comfort of shop you’ll be able to sell so you have an idea of Geographic: Regional area how much to plant. Demographic: Older, higher household income, high level of education Psychographic: Health conscious, less price Step 14: Select and Describe Target sensitive Market(s) products Refer to Chapter 9 – Marketing Principles to Needs/Preferences: Prefer healthy, high quality develop the following steps (14 to 18). In these steps you will be creating a marketing strategy. Step 15: Adding Value to Products As you think about the products your business will offer, try to describe them in terms of the customer or target market and tailoring your value they will bring to your customers. List all product,Your marketing pricing, strategy distribution is about and defining promotion your value added opportunities and identify “pros” strategies to satisfy that target market. segment) and “cons” (e.g., costs, risks) for each (how it will benefit the needs of each customer

26 Training Manual for Applied Agroforestry Practices – 2013 Edition of them. Identify also unique characteristics that tising tools and media. Consider also the costs of will differentiate your product from competi- each promotion method. needs for each market segment. Step 19: Re-visit Your Objectives and tors. Define each product to address specific Priorities Step 16: Getting Products to the Buyer plan was to outline your initial objectives and Now that you have a customer and product in prioritiesThe first step for yourin developing land-based your business. agroforestry Since mind, your next task is to identify how to move then, you have gathered considerable amounts or distribute products from your farm to the of information that will likely change at least customer’s house or store shelves. Distribution some of those original goals. Record your strategies typically describe Location - Where revised objectives and priorities in the space will you sell your product?; Distribution – Which provided in the Workbook. sales channels will your product follow?; and Transportation – How will your product reach Step 20: Detailed ‘Best Bets’ Crop the buyer? Information

Step 17: Setting the Price agroforestry practices, you should know as In general, pricing strategies are based on two muchTo develop as possible the most about functional each plant and you profitable intend factors: prevailing market prices and your costs. to grow. You will have gathered much of this In the long run, your price has to cover your full costs—including production, marketing and using your land assessment, plant inventory promotion—as well as a return for your time (whereinformation appropriate), while filling market out your research, Workbook, Appen - and investment. Try to identify prevailing mar- dices 2 and 3, and possibly your own additional ket prices for similar products if they exist; learn research. about what customers are willing to pay and what prices your competitors charge. Also iden- Important information includes the biological tify and document all your production, market- requirements of each plant, the agroforestry ing and promotion costs. Decide how you want practices they can be grown in, what other to price your product for each market segment. plants (and animals) they are compatible with, Do you want to undermine the competition by labor requirements for harvesting, potential offering a lower price? Can you set a high price volumes, value-added opportunities, and useful - market information. mand? Are you simply looking to cover costs? Do that reflects your quality image or market de you have power to set a price? How sensitive is The table provided in the Workbook may in- demand to price changes? Take all these aspects clude categories of information you do not have. into consideration and try to establish a realistic price or price range for each product. the information. There is also extra space for ad- ditionalYou can excludeinformation these you or considertake extra important time to find but Step 18: Promoting Your Products Promotion is very important to gain product rec- ognition among customers. Promotional strate- Stepnot specifically 21: Designing listed here. Your gies often are built around a “message.” The Agroforestry Practices message that you deliver about your product Now is the time to arrange your plants into or business is just as important as the product agroforestry practices that best meet the man- itself. Equally important is how and when you agement objectives you outlined in Step 19. The deliver that message through the use of adver-

University of Missouri Center for Agroforestry 27 information on each plant crop, and the man- agement information provided earlier in this prepare will form the basis for your yearly activ- chapter, will allow you to design and manage itypractices. schedule. The specific tasks and timelines you agroforestry practices that best meet your objec- tives. Fill in a table in the Workbook for each Don’t worry too much about getting absolutely agroforestry practice you intend to develop. will change over time and you can go back and Note: Remember that price and marketability adjusteverything your right projections on the firstaccordingly. pass. Your For plans now, are not the only criteria for selection of the you are mainly interested in conceptualizing the plants you will include in your agroforestry overall operation on paper. practices. Some plants may be chosen because they provide valuable ecological functions to your agroforestry practice, such as trees for sections: shade and windbreaks, or legumes for nitrogen The Area:five-year size managementof the area to projectionbe managed. has four Practice: agroforestry practice and its as- • sociated products. fixation. • Year: year that you want the management Building an Agroforestry activity to take place. Development Plan • The purpose of building an agroforestry devel- you hope to accomplish. opment plan is to create a schedule of the work • Management Objective: specific objective that needs to be done in the years ahead in order Use the template provided in the Workbook to to fully develop your agroforestry area(s). Your - completed Agroforestry Development Workplan tion. create your own five-year management projec projections for each agroforestry practice on a Step 23: Yearly Activity Schedule year-by-yearwill include specific basis. You tasks, will timelines, need a Development and labor Plan for each agroforestry development area. tasks that need to be done, when and by whom. ThisThe yearlyis the documentactivity schedule you will describes use to plan specific your your Workbook, and will form the practical basis work schedule on a month-by-month basis. A The Development Workplan is the final step in for your agroforestry development. You will no good yearly activity schedule will allow you to doubt change and adapt your work projections in the years ahead, but a good Development Plan and ensure you avoid overlapping seasonal ac- will form a clear starting point and help focus tivitiesidentify that potential could timecreate and shortages business of conflicts, labor and your management efforts. resources.

The Development Plan includes two distinct A yearly activity schedule—one for each parts: • A five-year plan outlining specific tasks for Crop Plant: the plants that you have decided each agroforestry practice agroforestryyou can grow practice—has and market. five sections: • A yearly activity plan, broken down into spe- • Management Objectives: a record of objec- cific tasks for each month. - • tion. Step 22: A Five-Year Management tives, transferred from your five-year projec Projection that must be accomplished to achieve each • objective,Task and Time including of Year: timelines a list of associated specific tasks schedule of the work you plan to undertake in with each task. Your five-year management projection is a Materials: estimates of seed, seedlings, fertil-

28the next fiveTraining years to Manualdevelop your for Applied agroforestry Agroforestry • Practices – 2013 Edition izer, fencing, animals, feed and other items A Guide to Developing a Business Plan for Farms necessary for corresponding tasks. and Rural Businesses. The information in the Labor and Equipment: a record of labor and Workbook will provide a good basis for a busi- equipment needs (if any) for each of the ness plan that includes a comprehensive cash •

specific tasks. flow projection. yearly activity schedule will likely change as you learnLike the more. five-year Remember management to leave projection,yourself plenty your of time to complete all the work. As landowners well know, most tasks take longer than expected. The yearly activity schedule will also be helpful in costing the materials, labor and equipment your business plan. For details on business plan- ning,that are refer necessary to Building for thea Sustainable cash flow projectionBusiness: of

Additional Resources

Handbook for Agroforestry Planning and Design. University of Missouri Center for Agroforestry. 2013. www.centerforagroforestry.org

Conducting a Simple Timber Inventory, The University of Tennessee Institute of Agriculture, https://uextension.tennessee.edu/publications/Documents/PB1780.pdf

Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Busi- nesses. Minnesota Institute for Sustainable Agriculture. 2003.

University of Missouri Center for Agroforestry 29 Notes

30 Training Manual for Applied Agroforestry Practices – 2013 Edition