Alternative Crops and Diversification Keys to Farm Profits

Farmers can combat the tightening farm profit squeeze brought on by the current unstable global economy through diversification with alternative crops, says Dr. Obadiah Njue, Extension horticulture specialist with the University of Arkansas at Pine Bluff Cooperative Extension Program.

Just as diversification seems to be the key to softening economic losses in other sectors, diversifying farm enterprises can soften the impact of economic risk, offset commodity price swings, exploit profitable niche markets, improve local economy and strengthen rural communities, says Dr. Njue.

Consumer concerns with food safety strengthens the interest in locally grown produce. Alternative crops are also environmentally friendly as they break up insect pests, weed and disease cycles; supplement soil nutrients; improve soil structure; conserve soil moisture and curb soil erosion.

But, unlike conventional grain producers who use a relatively straightforward route of taking a harvested crop to the local grain elevator, alternative crop growers cannot expect a convenient marketing outlet. Instead, Dr. Njue advises they do the following:

• Research the market before planting.
  
• Understand the cultural practices of the crops selected.
  
• Develop a marketing plan with information on prices, delivery points and sales contacts.
  
• Establish relationships with potential buyers and understand their guidelines.
  
• Understand the Good Agricultural Practices (GAP) and Good Handling Practices (GHP).
  
• Understand Food Safety Guidelines.
  

Consider alternative crops that will be a good fit for your farm in terms of soil type, climate, labor, marketing skills and proximity to markets. Remember, diversity is the key to success of a small farm, says Dr. Njue. Grow for a diverse market and grow crops whose sales complement each other, especially when targeting local markets. Local markets include farmers' markets, farm stands and pick-your-own operations.

Alternative crops include blackberries, muscadines, persimmons, blueberries, strawberries, melon, tomatoes, peas, sweet potatoes and all types of organically grown vegetables. Other popular alternative crops are all kinds of peppers – purple, red, orange and hot; cole crops such as collards, kale, broccoli, Brussels sprouts; salad greens; and herbs.

Just as small farm diversification can be helped by embracing technology, changes in consumer demand, government policy and development of irrigation, roads and other infrastructure, it can also be hindered by risks in markets and prices, crop management practices and natural phenomena, says Dr. Njue.

Arkansas Cattle Grower's Conference Announced

Beef cattle producers will learn the latest production techniques to increase profits at the Arkansas Cattle Grower's Conference March 17.

The meeting, which begins at 10 a.m. with registration, is hosted by the University of Arkansas Division of Agriculture. A special thanks goes to Farm Credit Services of Western Arkansas as one of the conference sponsors.

The morning session begins at 10:30 a.m. with a tour that includes three stops: 1) byproducts barn and feedlot facilities, 2) ultrasounding cattle, and 3) pasture research.

In the afternoon, extension and other cattle industry beef and forage production specialists will discuss forage management for calves, calf management and carcass quality, and a market outlook for 2009. The program will conclude with a calf post-mortem examination demonstration starting at 3:30 p.m.

The meeting will be at the Southwest Research and Extension Center Byproducts Barn in Hope. Cost for the program is $20, which includes proceedings, snacks and lunch. For more information, contact the Ouachita County extension office at (870) 231-1160.

The Cooperative Extension Service is part of the U of A Division of Agriculture.

The Arkansas Cooperative Extension Service offers its program to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, marital or veteran status, or any other legally protected status, and is an Affirmative Action/Equal Employment Opportunity Employer. Persons with disabilities who require alternative means for communication of program information (large print, audiotapes, etc.) should notify the hosting county Extension office (870.246.2281) as soon as possible prior to the activity.

Shopping Around Saves Money Come Tax Time

Tax season is here, along with the forehead-rubbing and hair-pulling frustration that comes with it. Consumers faced with myriad tax preparation options can save money with careful decision-making, says VeEtta Simmons, Crittenden County extension staff chair with the University of Arkansas Division of Agriculture.

Comparing rules and fees is the first place to start. Each tax preparation service charges a different amount, says Simmons. Consumers should check several places before selecting one. As it is in many cases, shopping around can save money.

It's also possible to avoid additional fees such as one for a refund anticipation loan, or RAL. "It's tempting to have the money in hand as soon as possible, but the fees charged for RALs often range from 50 to 500 percent of the amount of your loan," says Simmons. Other additional fees can be tacked on as well. Avoid using RALs if possible.

Another option is to file taxes electronically. "Some tax preparers may charge a fee to submit your tax forms electronically, but it's usually much less than the fees for a RAL," says Simmons. Be sure to ask the tax preparer about the cost.

Those who file electronically can get their refund in as little as 10 days.

In some cases, people may want to skip the cost of tax preparing companies and complete their own forms. Tax forms can be found online at the Internal Revenue Service (IRS) Web site. Forms and instructions are available at most libraries, too. It may take a few extra mouse clicks, but there's no service charge.

The IRS offers another option called Free File. This supports preparation of federal tax returns and no-cost electronic filing. Free File is usable by people with an adjusted gross income of $56,000 or less as of 2008. "The software has simple questions and automatically puts your answers on the right forms," says Simmons. More information on Free File is available on the IRS main Web site.

A list of other free tax preparation services follows below:

• VITA − Many people qualify for free tax preparation. The Volunteer Income Tax Assistance Program, or VITA, offers free tax preparation. VITA is available for people who make around $42,000 or less. Electronic filing is usually available. VITA sites near you may be located by calling 1-800-829-1040.
  
• TCE and AARP − People aged 60 and older can find free tax assistance through Tax Counseling for the Elderly, or TCE. Trained volunteers provide tax counseling and basic tax preparation. AARP offers a free TAX-Aide program. Call 1-800-829-1040 for TCE information. For AARP Tax-Aide, call 1-888-227-7669.
  
• AFTC − The Armed Forces Tax Council, AFTC, oversees free tax assistance programs for the Army, Navy, Air Force, Marine Corps, and Coast Guard. Military members and their families can receive free tax preparation assistance. Electronic filing is usually available. Tax preparation sites are usually set up within military installations, so contact them for more information.
  

These options can help reduce the stress of tax time and help consumers make wise, money-saving choices. This keeps money in consumers' pockets when they need it most.

For more information on tax preparation and assistance, talk with your county Extension agent or visit the Cooperative Extension Service web site. The Cooperative Extension Service is a part of the University of Arkansas Division of Agriculture.