lucerne production business plan

Lucerne Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector

Do you want to start a lucerne farm and need to write a plan? If YES, here is a sample lucerne farming business plan template & FREE feasibility report.

There are some unique crops that has pretty high nutritional value for cattle that an aspiring entrepreneur who is interested in the commercial hay and crop farming industry can start and make huge returns on his or her investment and one of such businesses is Lucerne farming.

No doubt, starting a Lucerne farming business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start a Lucerne farm on a small scale or on a large scale depending on their financial status.

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A Sample Lucerne Farming Business Plan Template

1. industry overview.

Lucerne which is also known as Alfalfa and called Medicago sativa in binomial nomenclature, is a perennial flowering plant in the legume family Fabaceae. It is cultivated as an important forage crop in many countries around the world.

It is used for grazing, hay, and silage, as well as a green manure and cover crop. Lucerne usually has the highest feeding value of all common hay crops. It is used less frequently as pasture. In addition to being used as feed, it also has a long history of use as a medicinal herb for humans.

Lucerne farmers are part of the Hay and Crop industry and more than half of the farms in this industry grow hay, while a small number grow sugar beets. A variety of other crops, such as hops and herbs, are included in the industry. Some establishments also gather agave , spices, tea and maple sap.

The Hay and Crop industry displays a low level of concentration. The industry is highly fragmented; no single hay and crop farmer/farm holds a lion share of the available market share in the industry., it is not enough to allow the company to dominate the industry. Lucerne farmers are typically niche farmers, operating on small farm land with no more than a few hundred trees.

The Hay and Crop industry is indeed a very large industry and pretty much thriving in all parts of the world especially in countries such as Spain, Italy, Turkey, Greece, Syria, Morocco, Tunisia and the united states of America.

Statistics has it that in the United States of America alone, there are about 441,166 registered and licensed hay and crop farmers scattered all across the United States responsible for employing about 486,066 and the industry rakes in a whooping sum of $31 billion annually. The industry was projected to enjoy -0.9 percent annual growth between 2014 and 2019.

Studies shows that California is the largest producer of Lucerne in the United States followed by Texas & Montana. California is the largest producer of Lucerne in the United States followed by Texas & Montana. The United States produces over 57.5 million tons of Lucerne. Twenty (20) states produce over 1 million tons of Lucerne.

A recent report published by IBISWorld shows that farmers in the industry produce hay, sugar beets, maple, hops and other crops. In the five years to 2010, industry revenue is expected to grow at an average annual rate of 1.6 percent to $17.0 billion.

Volatile crop prices and unexpected weather patterns are the primary drivers of industry revenue. Varying factors have different effects on the distinct product segments, which ultimately creates high volatility in both revenue and profit for industry participants.

The majority of these are hay farms, reflecting hay’s position as the highest-grossing industry product. In 2010, IBISWorld estimates that hay varieties account for 88.2 percent of total industry revenue, while sugar beets account for 8.8 percent and the rest of the crops account for 3.0 percent.

Lastly, with commercial Lucerne farming business, it will pay you to cultivate both organic and non – organic Lucerne crop. As a matter of fact, consumer preferences will drive demand for organic hay (Lucerne crop) going forward.

2. Executive Summary

Nathan Anderson® Lucerne Farms, Inc. is a world class and registered commercial hay and crop farm that will be based in the outskirt of Wichita Falls, Texas – United States. We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farm land to start our commercial Lucerne farming business.

Our commercial Lucerne farm is a going to be standard commercial Lucerne farm hence will be involved in both commercial Lucerne cultivation and silage, grazed, and fed as green – chop processing and packaging.

We have put plans in place that will help us launch a standard and world – class silage, grazed, and fed as green – chop processing plant within the first three years of officially running Nathan Anderson® Lucerne Farms, Inc. We will process and package silage, grazed, and fed as green – chop that they flood the market both in the United States and in other countries of the world; we want to compete with the best in the industry.

Which is why aside from the fact that we’ve secured the required farming land and most of the farming equipment and machines, we have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21 st century commercial Lucerne farm and silage, grazed, and fed as green – chop production plant workforce that we want to build.

Nathan Anderson® Lucerne Farms, Inc. is well positioned to become one of the leading Lucerne farms in the United States of America, which is why we have been able to source for the best hands and farm machineries to run the farm with.

We have put process and strategies in place that will help us employ best practices when it comes to Lucerne farming processes and silage, grazed, and fed as green – chop processing and packaging as required by the regulating bodies in the United States of America.

Nathan Anderson® Lucerne Farms, Inc. is a family business that is owned by Mr. Nathan Anderson and his immediate family members. The farm cum business will be fully and single handedly financed by Nathan Anderson and his immediate family members.

Before starting Nathan Anderson® Lucerne Farms, Inc., Nathan Anderson has worked with some of the leading commercial hay and crop farms and silage, grazed, and fed as green – chop processing plants in the United States of America; he has a degree (B.Sc.) in Agriculture Science from University of Texas.

3. Our Products and Services

Nathan Anderson® Lucerne Farms, Inc. is a world class commercial hay and crop farm that is committed to cultivating Lucerne crops for both the United States’ market and the global market. We are in business to produce food for cattle and horses et al in commercial quantities. We will also ensure that we operate a standard silage, grazed, and fed as green – chop processing and packaging plant as part of our complimentary business.

We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives. These are the areas we will concentrate on in our Lucerne farm. If need arises, we will definitely cultivate related crops;

• Growing Lucerne (organic and non – organic)
• Producing silage, grazed, and fed as green – chop

4. Our Mission and Vision Statement

• Our vision is to established a Lucerne farm that will become the number choice for cattle farmers and horse owners not just in Wichita Falls – Texas but throughout the United States of America.
• Nathan Anderson® Lucerne Farms, Inc. is a world class Lucerne farms that is in business to cultivate Lucerne crop in commercial quantities and processed silage, grazed, and fed as green – chop for both the United States market and the international market.
• We want our well – packaged silage, grazed, and fed as green – chop to flood every nooks and crannies of the United States of America.

Our Business Structure

Nathan Anderson® Lucerne Farms, Inc. is a Lucerne farm that intend starting small in Wichita Falls – Texas, but hope to grow big in order to compete favorably with leading commercial Lucerne farms in the commercial hay and crop farming industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. Which is why we are committed to only hire the best hands in and around Texas.

At Nathan Anderson® Lucerne Farms, Inc., we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, Nathan Anderson® Lucerne Farms, Inc. have decided to hire qualified and competent hands to occupy the following positions;

• Chief Operating Officer

General Farm Manager

• Administrator/Accountant
• Lucerne Processing and Packaging Plant Manager
• Sales and Marketing Executive
• Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervise other section managers (Lucerne cultivation manager and silage, grazed, and fed as green – chop processing and packaging manager)
• Ensure compliance during project executions
• Providing advice on the management of farming activities across all section
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of the growth of crops (Lucerne crop)
• Responsible for overseeing the accounting, costing and sale of farm produce after harvest
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Handles all financial transactions for the company
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversee the smooth running of the daily farming activities across the various farming sections.

Administrato/Accountant

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the farm
• Serves as internal auditor for the farm

Lucerne crop Cultivation Manager/Supervisor

• Responsible for managing the Lucerne crop cultivation section of the Lucerne farm
• Supervises other workers within the department
• Work closely with the General Manager to achieve the organizations’ goals and objectives

Lucerne Processing and Packaging Manager/Supervisor

• Responsible for managing the silage, grazed, and fed as green – chop processing and packaging section of the commercial hay and crop farm

Sales and Marketing Officer

• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts.
• Writing winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the farm

Field Workers/Contract Staff

• Responsible for preparing farm lands for Lucerne crop cultivation
• Responsible for watering the crop
• Weeding or fertilizer and/or pest control application
• Handles farm implements and machines as instructed by the section manager/supervisor
• Assist in handling the harvest of Lucerne crop
• Carries out task in line with the stated job description
• Assist in transport working tools and equipment from the farm and back to the designated store room
• Handles any other duties as assigned by the line manager

Client Service Executive/Front Desk Officer

• Welcomes guests and clients to the farm by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for the organization
• Distribute mails in the organization

6. SWOT Analysis

Nathan Anderson® Lucerne Farms, Inc. do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard Lucerne farm that will favorably compete with leading commercial Lucerne farms in the United States of America and in the rest part of the world.

We are quite aware that there are several large scale, medium scale and small scale Lucerne farms all over Wichita Falls – Texas and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Nathan Anderson® Lucerne Farms, Inc. employed the services of an expert HR and Business Analyst with bias in the commercial hay and crop farming industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Nathan Anderson® Lucerne Farms, Inc.;

Our strength as a Lucerne farm is the fact that we have healthy relationships with loads of major players in the commercial cattle farming industry; both suppliers and buyers of Lucerne and silage, grazed, and fed as green – chop within and outside of the United States.

We have some of the latest commercial hay and crop farming machines, tools and silage, grazed, and fed as green – chop processing equipment that will help us cultivate Lucerne crop in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Wichita Falls – Texas in our payroll.

Our weakness could be that we are a new Lucerne farms in the United States, and perhaps the fact that we decided to diversify our farming activities could count against us initial. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified, we know that there are loads of cattle farmers and horse breeders and owner that rely on the supply of olives from Lucerne farms in the United States of America and other parts of the world. We will ensure that we maximize the opportunities available to commercial Lucerne farmers. As prices increase with increased demand, Lucerne farmers will begin to experience revenue growth.

Livestock farmers regularly purchase hay as feed for their herds. Demand for hay usually increases during adverse weather conditions when the area of natural pastures is lower. Demand from beef cattle production is expected to increase this year; however, the unpredictable nature of demand with respect to consumer preferences and international trade poses a potential threat to the industry.

7. MARKET ANALYSIS

• Market Trends

Despite the fact that Lucerne farming has been in existence since time immemorial, which does not in any way make the industry to be over saturated; Lucerne farmers are exploring new technology to continue to improve the cultivation processes and also silage, grazed, and fed as green – chop preservation and processing processes; mechanized farming has indeed increased the tons of olives produced by farmers.

The fact that there is always a ready market for silage, grazed, and fed as green – chop and Lucerne crop makes the business highly thriving and profitable. Lastly, the diverse composition of the industry creates a mixed bag of trends.

An individual farm is not profitable in any given year, but a farmer is likely to see a profit over the long run as a result of mixed crops and successful rotations. With that in mind, profits have fallen over the past five years as a result of increased input costs, particularly fertilizer, and unprecedented economic conditions.

Hay farming displayed steady revenue growth over the three years to 2008 as an increasing number of cattle farmers turned to hay instead of high-priced corn and soybean feed. However, in 2009, livestock farmers’ efforts to cut input costs turned them away from high-protein Lucerne hay in favor of lower-priced feed mixes.

8. Our Target Market

We will ensure that we position our business to attract consumers of silage, grazed, and fed as green – chops not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our farm produce either in raw form or processed form to other countries of the world.

Below are some of our target market;

• Cattle farmers
• Horse breeders
• Sheep farmers
• Goat farmers
• Horse owners
• Herbal medicine manufacturers

Our Competitive Advantage

Nathan Anderson® Lucerne Farms, Inc.  is fully aware that there are competitions when it comes to selling commercial hay and crop farm produce including Lucerne crop and silage, grazed, and fed as green – chop all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable Lucerne farming processes that can help us sell our produce at competitive prices, robust business and distribution network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard commercial Lucerne farms that will also include silage, grazed, and fed as green – chop processing plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (start – ups Lucerne farms) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Nathan Anderson® Lucerne Farms, Inc. is in the commercial hay and crop farming business for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.

In essence we are not going to rely only on the sale of our farm produce to generate income for the business. Below are the sources we intend exploring to generate income for Nathan Anderson® Lucerne Farms, Inc.;

• Sale and supply of freshly harvested Lucerne crops
• Sale and supply of silage, grazed, and fed as green – chop

10. Sales Forecast

We conducted a thorough market survey and feasibility studies and we were able to discover that the sales generated by a commercial hay and crop farm depends on the size of the farm, the nature of the commercial hay and crop farm.

We have perfected or sales and marketing strategies and we are set to hit the ground running and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the year of operations and build the business from survival to sustainability.

We have been able to critically examine the hay and crop farming industry cum Lucerne farm line business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some workable assumptions as well with respect to the nature of Lucerne farm that we run.

We will be running a standard silage, grazed, and fed as green – chop processing plant with a capacity to export well – branded and packaged silage, grazed, and fed as green – chop to states all across the United States of America Below are the projections that we were able to come up with for the first three years of running Nathan Anderson® Lucerne Farms, Inc.;

• First Fiscal Year (FY1): $200,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $400,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics and floods), and unfavorable government policies . Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are quite aware that the reason why some Lucerne farms hardly make good profits is their inability to sell off their Lucerne crops as at when due. In view of that, we decided to set up a standard silage, grazed, and fed as green – chop processing plant to help us maximize profits.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We want to build a standard and world – class Lucerne farm that will leverage on word of mouth advertisement from satisfied clients (both individuals and businesses).

In summary, Nathan Anderson® Lucerne Farms, Inc. will adopt the following strategies in marketing our Lucerne farm produce;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the cattle farming industry, horse breeders, sheep farmers, goat farmers and horse owners et al.
• Advertise our business in agriculture and cattle farmers related magazines and websites
• List our Lucerne farms on yellow pages ads
• Attend related agriculture and animal feed expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means (both conventional and non – conventional means) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our Lucerne farm business. Below are the platforms you can leverage on to boost our Lucerne farm brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
• Install our Bill Boards on strategic locations all around Wichita Falls – Texas
• Engage in roadshow from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• List our Lucerne farms in local directories/yellow pages
• Advertise our Lucerne farms in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

Some of the factors that will help you sell your Lucerne crops at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control. For example, if the climatic condition is unfavorable and if there are natural disaster in the location where you have your Lucerne farm, then it will directly affect the harvest of Lucerne and also the prices of your farm produce.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our Lucerne crops and silage, grazed, and fed as green – chop et al are sold a little bit below the average prices in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our soybean farming business

• Payment Options

The payment policy adopted by Nathan Anderson® Lucerne Farms, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Nathan Anderson® Lucerne Farms, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via Point of Sale Machines (POS Machines)
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our Lucerne crops and processed (well – branded and packaged silage, grazed, and fed as green – chop).

13. Startup Expenditure (Budget)

Below are some of the basic areas we will spend our start – up capital in setting up our Lucerne farm;

• The total fee for incorporating the business in United States of America – $750.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
• The amount needed to acquire/lease a farm land – $50,000
• The amount required for preparing the farm land – $70,000
• The cost for acquiring the required working tools and equipment/machines/fencing et al – $10,000
• The amount required for purchase of the first set of Lucerne seedlings et al – $50,000
• The amount required to set up a standard silage, grazed, and fed as green – chop processing plant within the farm facility – 100,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost of launching an official website – $600
• The amount required for payment of workers for a period of 3 months – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of two hundred and fifty thousand dollars ($250,000) to start a standard Lucerne farm with silage, grazed, and fed as green – chop processing plant business in the United States of America.

Generating Funds/Startup Capital for Nathan Anderson® Lucerne Farms, Inc.

Nathan Anderson® Lucerne Farms, Inc. is a family business that will be owned and managed by Nathan Anderson and his immediate family members. They are the sole financier of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas where we intend sourcing for fund for Nathan Anderson® Lucerne Farms, Inc.;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Nathan Anderson® Lucerne Farms, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our farm produce (Lucerne crop and even processed and packaged silage, grazed, and fed as green – chop) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Nathan Anderson® Lucerne Farms, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the management of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Leasing of farm land in Wichita Falls – Texas and preparing the farm land: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Building /construction of fence et al: In Progress
• Purchase of the needed working tools, machines and equipment: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Farm land Treatment, Health and Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry (cattle farmers, fertilizer suppliers, herbal medicine manufacturers and transporter / haulage companies et al): Completed

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Growing Lucerne as Fodder Crop

By Hanks Saisai

2 November 2023

Medicago sativa, commonly known as lucerne, is a fodder crop grown worldwide for its high-quality protein and fibre content, making it a preferred choice for livestock feeding, including cattle, goats, sheep, and pigs.

Lucerne can be grown either as an intensive high-production crop under irrigation or as a dryland fodder crop in areas with an annual rainfall of less than 500mm.

To grow lucerne, a farmer needs to loosen the soil with a digging fork to a depth of 25cm to 30cm, or utilise a disc plough to loosen the soil to a depth of 30cm to 45cm.

The soil must be well drained, with a pH level of about 6 to 7.

For a one-hectare plot, it is recommended to use between 12kg to 18kg of seeds. Farmers are to plant semi-dormant varieties that are more suitable for grazing, and have a longer lifespan of five to seven years in the field.

When lucerne is grown in well-fertilized soil that is rich in nitrogen and has a neutral soil pH, it grows its foliage (leaf zone) vigorously, ensuring that more grazable material is available for hay production.

Farmers should keep in mind that the optimal time for planting lucerne is usually between February and May.

By July, the crop is ready to be harvested either with a mower mounted onto a tractor, or by using a slasher to reduce it to a length of 10cm.

After harvesting, it is dried for about four days before it is racked and baled.

Care must be applied after cutting and baling to ensure that regrowth is rapid.

Applying nitrogen fertilisers, such as urea in the irrigation set-up is essential, and if the cutting frequency is about every 42 days, it may result in farmers cutting and baling lucerne about eight times per year.

Weeds can be controlled selectively by using ecofriendly pesticides that retard the growth of grasses, and with lucerne being tolerant to frost and dry spells, farmers can control weeds by using glyphosate SC sprayed over the field of production.

Lucerne production is a profitable enterprise for livestock-oriented farming nations.

In particular, supplying lucerne during the dry season (May to November) of the year could generate income for farmers.

With a small-scale plot of about 0,5 hectares (5 000m2), farmers could support a small number of cattle or sheep by fulfilling their daily 3% needs during tough times, such as drought.

Furthermore, lucerne is a legume which can convert atmospheric nitrogen into a usable form for other crops to use after its lifespan. In conclusion, lucerne is an essential crop for livestock farmers.

Anyone with a small piece of land could grow this beneficial crop to provide essential crude protein and fibre to their livestock, especially during periods when all forage material on the rangeland is dry.

• Hanks Saisai is Agribank’s technical adviser for crops and poultry.

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Lucerne Establishment

• Soil Tilage
• Seedbed Preparation
• Sa Cultivars
• Innoculation of Seed

SOIL TILLAGE

Tillage before planting.

Preparation of lands for the planting of lucerne should preferably be started during the spring before the expected autumn planting date.

In the case of a cash crop being fitted in beforehand, at least two months must be allowed after harvesting it, before the lucerne is planted, in order to allow complete breakdown of the crop residue.

Lands which have been in use for several seasons must be deep ploughed to break up hardpan areas. The most important considerations when ploughing are to improve root penetration, drainage and aeration of the soil and to reduce soil compaction.

Furthermore, it helps to control weeds, breaks down and works into the soil any harvest residue, and breaks up large clods. Fertilizer can be added at the same time.

Early preparation of lands is recommended if there is a problem with weeds. It is necessary to work the lands in the spring and then allow them to lie fallow for the summer, then to work them again in late summer and/or before planting in the autumn. The advantages of soil tillage are temporary, and a heavy rainstorm can undo them. If the pH of the soil is correct, then a fallow period (spray instead with herbicide) may be considered as an alternative. This may keep input costs under control. Exposure of the soil stimulates the activity of micro-organisms which use organic material as a food source. This can result in a poor carbon-oxygen ratio in the soil, which leads to soil compaction. Another possible disadvantage of soil preparation is the increased costs. There is the cost of petrol / diesel, as well as maintenance costs due to wear-and-tear on implements. Moreover, as ploughing leads to structural damage of the soil, so more powerful tractors must be used.

Fertilisation before planting

Liming should be done before sowing.

During tillage and before sowing is the last chance for relatively insoluble fertilizers such as lime to be well mixed into the soil, so that chemical reactions can release nutrient elements for uptake by the plants. Nutrients that usually need to be supplemented, other than lime, include phosphorus, potassium and sulphur.

Liming is the most important fertility factor for the establishment and maintenance of high-yield, high-quality lucerne. Guidelines for liming must be based on the exchangeable acidity in the soil and not simply on its pH and texture.The advantages of liming for lucerne include the following:

• Helps production of optimal yield
• Increases availability of other elements, e.g. phosphorous and manganese
• Reduces iron and aluminium toxicity
• Improves establishment of the stand
• Increases productive lifetime of the stand
• Nitrogen-fixing bacteria (Rhizobium) are more active
• Provides calcium and magnesium
• Improves soil texture and tillage

For maximum yields, the land should be limed to a pH of 6.7 to 6.9. Yield of lucerne drops rapidly in soil of pH less than 6.7.

Because lime reacts slowly with soil acids, it should be worked in at least 3-12 months, and preferably longer, before lucerne is sown.

The best time to apply lime is directly after the old lucerne stand has been removed, in a typical 4-6 year cycle of crop rotation.

This allows a longer period for the lime to act on the soil, and tillage for the following crops will mix it thoroughly into the soil. This should bring the pH up to the required level by the time lucerne is re-planted. The effectiveness of lime is determined by its chemical purity and by the particle size of the source. The finer the particles, the more effective the action and the more quickly the desired pH will be reached. To obtain the same change in pH with coarser lime would require its being spread a longer period before planting time as well as in greater quantities.It is, however, cheaper. Also, coarser lime would not need to be applied as often as finergrained lime.

To compare prices, one should evaluate the liming medium on the basis of the quantity required to obtain the desired result. The relative effectiveness of the various liming media is indicated by:

• Effective calcium carbonate equivalent (ECCE)
• Effective neutralising power (ENP)
• Total neutralising power (TNP)

Agricultural lime should be broadcast on the surface of the soil and worked in with a disc plough, then ploughed in sufficiently deeply for maximum spreading and neutralising of acids in the ploughing layer (not less than 150-200 mm). Ploughs without a ploughdisc may deposit the lime in a layer at the hardpan.

To apply large quantities of lime (>6 ton/ha), half should be applied before beginning to work the land, and the other half after ploughing or other preparation.

Different liming media exist. Calcite products contain calcium-based neutralisers, while dolomitic types have both calcium and magnesium. Both are equally effective in altering soil pH. Which type is used is determined by the calcium (Ca) and magnesium (Mg) levels in the soil.

If soil magnesium is lower than the optimum, then a dolomitic lime should be used. If Mg is higher than optimal and the Ca X 0.6 is higher than the Mg, then both types may be used. If Mg is higher than optimum and Ca X 0.6 is lower than Mg, a calcitic lime should be used.

Phosphorus (P)

Phosphorous fertilisation is determined by soil analysis, target yield, and percentage clay particles in the soil.

Adequate phosphorus in the soil increases establishment success by improving root growth, and it is also important in flower formation and seed production.

Phosphorus is very immobile in most soil types. It is provided to the plant by diffusion.

When it is taken up by the roots, the concentration of P in the surrounding soil drops.

Uptake is passive and no metabolic energy is consumed in the process.

Research has shown that, in soils with low to moderate levels of P, correction of P concentration before planting, while soil is being prepared, is up to twice as effective as when applied as a topdressing after planting.

P can also be applied in a 12-25 mm band beside or below the seed, but it is more usually broadcast and worked deeply into the soil before planting time.

A minimum of 10 kg/ha is needed for high P soil. Rock phosphate is not recommended for lucerne, as the pH at which rock phosphate is effective is too low for lucerne production.

Guidelines for phosphorus fertilisation

Sulphur (S)

Legumes have a very high protein content and therefore a high requirement for sulphur. If necessary, pure sulphur can be used as a source of sulphur at planting.

Pure sulphur must be converted to sulphate before it can be used by the plant, a relatively slow process, especially if the sulphur is applied as a topdressing.

If pure sulphur is applied at planting time at a reasonably high level (50 kg/ha), it should be sufficient for the lifetime of the stand.

The cost of such an application should be compared to the cost of annual applications of sulphate.

Sulphur can be supplemented through the use of an application of single superphosphate, a sulphur-containing fertiliser, just before planting time. This would supply at the same time both the sulphate and phosphate requirements of the lucerne.

Nitrogen (N)

Research has indicated that small supplements of nitrogen can improve establishment and survival in the first year of a stand. 25-30 kg/ha should be applied if lucerne is sown directly onto sandy soil with a low organic matter content (>2%).

If the lucerne is sown as a mixture, 20-35 kg/ha N should be used, and 40-55 kg/ha if the other component of the mixture is to be used as silage.

• Soil requirements for lucerne
• Well drained
• P>40 mg/kg soil – Method used is Bray 1
• K>120 mg/kg soil – Method used is Bray 1
• Phosphate for seedling growth, root development and yield
• Potassium for healthy plants and winter survival
• Calcium for roots and N-fixation
• Magnesium essential for photosynthesis
• Sulphur necessary for protein synthesis
• Molybdenum important for N-fixation

SEEDBED PREPARATION

More failures of lucerne establishment can be attributed to poor seedbed preparation, than to any other one factor.

Weed control should have already been begun the year before by using a disc or harrow.

Perennial weeds should be eradicated before beginning with planting. If the seedbed is rolled after liming, weed seed will germinate well, and this strategy can be used to combat weeds.

If lime is necessary, it should be well ploughed in three to four months before sowing, so that the lime can react with the soil and correct the pH.

If an autumn planting is planned, soil preparation should begin no later than January.

Soil moisture should be conserved, especially on dryland plantings. NB: the more the soil is tilled, the more moisture it loses.

Precise methods of planting will vary with the farm, but the following broad guidelines should be followed:

• Use deep ploughing to loosen the soil and combat perennial weeds.
• This is the case when harvest residue makes tillage difficult.
• P, K, Zn and B should be disked in just before planting.
• A cultivator or harrow should be used for the final preparation of the seedbed.
• Correct tillage should ensure a fine-textured and weed-free seedbed.
• The seedbed must be fine-textured and grainy, not powdery, to ensure good contact between the seed and the soil.
• Compact or roll the land to ensure a firm seedbed.
• A Cambridge roller can be used before seeding, while the soil is still dry, and after seeding, before the land is irrigated..
• Before planting, the land should ideally be even, without clods and firm-textured. A normal-sized person walking on the land should not sink in deeper than the tops of his soles.
• The ideal seedbed should be fine, with soil clods not more than 10 mm in diameter.
• The seed should be preferably be planted with an implement that will cover the seed shallowly and compact the covering soil, to make sure of good contact between seed and soil, and also to conserve soil moisture.

SA CULTIVARS

Innocculation of seed.

To ensure that the bacteria survive from inoculation until the seed is planted, it is best that the inoculation be done in a cool area with minimum direct sunlight.

The seed must be covered with an adhesive to ensure that the inoculant adheres to it.

The generally recommended and most-used adhesive is 2% methyl-cellulose solution.

In the past, a sugar or molasses solution was recommended, but they are not as effective as methyl-cellulose.

Although it is no longer common practice to coat seed with toxic fungicidal or insecticidal chemicals, seed which has been so treated should be washed before being inoculated.

This washing must be completed quickly, and the seed rapidly dried again, as germination may begin during the washing process.

This would be more damaging than using treated seed without washing.

After the seed is wetted, the inoculant is added and mixed thoroughly with it.

The amount of seed which can be treated with one packet of inoculant varies between 12 and 15 kg per packet, and is indicated on the packet.

If seed is sown in dry ground, irrigation should take place as quickly as possible afterwards.

It is recommended that the seed be pelleted under poor conditions, e.g. low pH and dry soil.

To protect the seed and make it more manageable, the correct ratio of seed, sticker and pelleting material, e.g. lime or betonite, must be used: 10 kg seed to 1 litre sticker and 9 kg lime.

Gum arabic (40% solution) or methylcellulose (2% solution) can be used as an adhesive.

Buying and inoculation of seed

The types of inoculants recommended for different types of legumes are freely available in the trade (seed companies and co-operatives).The RF 14 race is used for lucerne.

The ARC-Institute for Plant Protection is responsible for quality control, as well as the testing of improved races for optimal inoculation.

The handling of inoculant from production to actual use is extremely important, and the following are strongly recommended:

• Store the inoculant in a cool dry place, but not in a freezer. The maximum temperature under which the bacteria will survive differs for tropical and temperate legumes. Storage temperatures of not more than 20°C are recommended for inoculant of temperate legumes.
• Do not expose the bacteria to direct sunlight. At planting time, especially, it must be ensured that the seed is covered by soil as quickly as possible.

PLANTING DATE

Good germination and establishment of lucerne are promoted by a longer growing season, sufficient soil moisture and cool temperatures.

At emergence, lucerne is extremely susceptible to cold, and late summer planting is only successful if soil moisture is adequate for sufficient growth to take place before the frosts.

Lucerne needs a minimum of 6 weeks growth after germination if it is to survive the winter.

This allows the plant to form a crown and build up sufficient root reserves for winter survival.

Only seed cleaned by a dealer, and accompanied by a label guaranteeing purity and germination, should be used.

The seed colour is important: only yellow to olive green to brown seed should be bought.

Dark-coloured seed should be avoided, as it indicates that the seed is either old or has been exposed to water.

Hardseededness (inability to take up water) is common in lucerne seed: 10% hardseededness is regarded as acceptable.

It is recommended that sowing be done in autumn (end of March) under irrigation, if a land is known to have a problem with weeds, and effective control of these is difficult or expensive.

In a frost-free area, any planting time is suitable if a registered herbicide is available and affordable.

If sowing is to be done under dryland conditions, it is important that the soil has sufficient moisture at planting time.

In this case lucerne must be planted in rows with a planter, to facilitate follow-up treatments such as weed control.

If the first sowing shows poor germination, re-planting can be done within 2-3 weeks.

However, it is sensible to rather disc out the stand and re-sow later in the season.

Advantages and disadvantages of late-summer vs. spring sowing

PLANTING METHOD

Broadcast sowing by hand.

With this method it is very important to cover the seed as soon as possible with soil.

A chain can be used for this or a upside down harrow with the front raised 5 cm above the soil surface.

A roller must also be used to compact the soil. To obtain an even stand, it is extremely important to spread the seed evenly over the soil surface.

Broadcast sowing with an implement

The procedure after sowing is the same as for hand-sowing.

In rows with a planter

If a planter is used, care must be taken that the seed is evenly deposited.

A vegetable planter usually works well. If a pressure wheel is mounted on the planter it is not necessary to roll the land; otherwise this must be done after planting.

Wheat planters with a pressure wheel may also be used successfully – care must be taken, though, that the seed is not planted deeper than 15 mm.

Advantages of row-planting a.o.t. broadcast sowing:

• Better utilisation of soil moisture
• Less trampling and damage to crowns if used for grazing
• Secondary working of the land for, e.g. weed control, and penetration of water, is feasible.
• Quicker regrowth at start of growing season
• Longer lifespan of the lucerne
• Better utilisation of fertiliser applied in rows
• Lower seed requirement/ha
• Cost-effective

Under average conditions, about 60% of the lucerne seed will germinate and about 60-80% of the seedlings will die within the first year.

PLANTING DEPTH

Lucerne seed is small, and should be planted shallowly, but still covered with soil.A covering of soil is also necessary as protection for the Rhizobium bacteria, as these should not be exposed to direct sunlight.

Seed should be especially shallowly planted in heavy clay soils, about 5-10 mm, while on sandy soils it can be planted at 10-20 mm depth.

If soil moisture is sufficient, or if irrigation is available, deeper planting is unnecessary. Under dryland conditions, seed should be planted deeper.

Soils that tend to form a crust should be kept wet until the lucerne has germinated and become established.

There are about 440 000 lucerne seeds per kg. In dryland sowing, 3-7 kg/ha is recommended, while a sowing density of 18-20 kg/ha is adequate under irrigation.

An important aspect, which is often neglected, is that seed size varies between cultivars and between seed lots.

It is therefore necessary to re-calibrate the planter whenever a new cultivar, seedlot or pelleted seed is to be planted.

As already stated, optimal lucerne production is dependent on optimal plant density and it is therefore important to ensure the best possible stand to reach the maximum potential of the lucerne.

SOIL REQUIREMENTS

A vigorous stand of lucerne is the basis for profitable production.

The choice of a well-drained land, the correct preparation of the land, the establishment of soil fertility by means of soil samples, as well as the correct nutrient supple-mentation before and at sowing, is crucial.

Selection of Land

Lucerne needs well-drained soil for optimum production.

Waterlogged soil creates favourable conditions for a range of diseases and pathogens, such as Phytophthora, Pythium, etc., which cause seedling diseases, reduce yield and thin out the stands.

Establishing lucerne on such soil should not even be considered. Poor drainage lowers the amount of soil-oxygen that reaches the roots.

Cultivars with high resistance to root diseases, as well as the use of fungicides at planting time, will reduce problems caused by poorly drained soil.

Care is needed to prevent erosion at planting time if the lucerne is planted on a slope, especially in the first year.

Level lands with a relatively shallow slope may have areas where water may collect and cause a poor stand to develop.

Soil types having a gleyed E-horizon and a shallow A-horizon, for instance Kroonstad type, should be avoided because of the possibility of poor drainage.

Soil types where the orthic A-horizon is underlaid by hard rock, such as Mispah type, should also not be used for lucerne.

Any soil type which is well-drained, and where the nutrient content can be corrected economically, can be used for cultivation of lucerne.

Soils need to have adequate depth, at least 1.2 m, if they are to hold a sufficient reserve of water. Lucerne has a long tap root – up to about 6 m – which under favourable conditions penetrates deeply into the soil.

This ability gives lucerne good drought resistance. Soil suitable for lucerne, and classified as medium to deep, usually occurs beside streams and rivers.

Medium to deep soil forms, with a clay content of not more than 35%, are considered as optimal for lucerne production.

The lands must not have any compacted layers or hardpan areas.

Soil fertility

South African lucerne is grown in a variety of climatic zones and farming areas, where the nutrient status of the soil may vary widely.

To meet the nutritional require-ments of the plant, and to ensure optimal yield, the nutrient status must be ameliorated.

Correct soil nutrient status will ensure that the stand establishes rapidly and remains vigorous and productive.

A favourable nutrient status will also maintain the quality of the end product, and allow lucerne plants to compete with weeds which often invade.

The success and profitability of lucerne depends considerably on the original stand and the vigor of its growth.

Prevention of weeds

The lands must be free of perennial weeds such as kweek (Cynodon dactylon) before lucerne is established on them.

If thorough controls are not followed, the weeds will grow faster than the lucerne and result in poor stands.

There should also not be any carry-over of weedkillers which may affect the lucerne.

Annual weeds are often merely a temporary problem, and can be controlled by cutting.

Autotoxicity

It is well known that lucerne plants produce a chemical(s) which suppress the germination and growth of lucerne seedlings.

This phenomenon is called self- or autotoxicity.

The chemicals (including medicarpin) are produced in the leaves and released into the soil when the leaves fall, where they eventually break down.

The range of the toxicity increases with the age of the stand, its density and the amount of toxic residue present before re-seeding.

When old lucerne stands need to be resown to lucerne, it is sensible to rest the land for a season (or to plant an annual crop) so that the water-soluble toxins can either degrade or move out of the root zone of the new lucerne seedlings.

Under certain weather conditions lucerne can be re-sown as soon as 6-8 weeks after ploughing out of the old plants.

Breakdown of the toxins occurs more quickly in hot, damp conditions.

The following recommendations should be kept in mind:

Do not inter-sow to thicken up a stand.

The young plants may grow well initially, but because of competition for light and water, will soon die off.

Lands with two- or more year-old lucerne probably are autotoxic.

Select cultivars with a high level of disease resistance, especially for lands where lucerne has already been cultivated.

Diseases build up in the soil and adversely affect new seedling growth.

Weedkillers and fertilisation / nutrient depletion of the land as a result of previous harvesting or plantings, may also affect the success of lucerne establishment.

Soil Samples & Analysis

Because of the high price of fertilizers, it is necessary to sample the upper and lower horizons of the soil and to have them analysed at a reliable laboratory.

It is sensible to investigate the soil physically and to have it analysed chemically, and to request the laboratory to recommend fertiliser specifically for lucerne.

Most soil analyses check pH (acidity), lime, phosphorous (P), sodium (K) and various secondary and trace elements.

The recommended values can differ with soil type, cultivation potential and management needs. It is therefore necessary to consult with a specialist regarding your specific conditions.

Sampling the soil incorrectly has minimal value and can lead to incorrect information about its fertility.

The sample must be representative of the land.

General requirements for soil samples

A topsoil sample can be taken with a Beater soil bore, which samples to a depth of 150-200 mm.

Control carefully the depth of the samples. At least 30 samples (core samples) should be taken and mixed together, from which a final sample of about 500 g is taken.

Where there is soil acidity, it is recommended that samples also be taken of the underlying soil layers.

This can be done with a Dutch or Eykelkamp soil bore. About 5 core samples of about 200 mm diameter are taken, each from a different place on the land.

Samples are also taken at different depths, each one about 200 mm deeper than the last.

The samples of each specific depth are amalgamated to make one sample of that depth.

The samples must not be dried by heating.

If necessary, allow them to air-dry in a cool place before packing.

Sampling area

If a land is to be represented by a single soil sample, then this re-presents a compromise between various practical considerations.

It must be possible to lime and fertilise the land as a separate unit with respect to topography, drainage, soil type and previous management.

Small areas which obviously differ in appearance, as well as crop response, must either be sampled separately or excluded.

As a general rule not more than 50 ha should be represented by a single sample.

Frequence of sampling

When soil with a low fertility is to be improved by means of a planned fertilisation program, it is recommended that it be analysed annually.

Once the necessary nutrient status is reached (under normal management) the pH and fertility will not change rapidly, and a fertilisation program can be based on samples taken once every 3-4 years.

Time of year for sampling

A soil sample should be taken several months before sowing, to ensure sufficient time for delivery and analysis, for ordering of lime and fertilizer, and for the spreading of the lime at least a month or two before sowing.

As a general rule samples should be taken at the same time each year.

In the case of annual crops it is recommended that soil samples be taken after ploughing (after the previous crop has been harvested or ploughed in).

In this way it will be possible to correct any imbalance which may exist as a result of previous spreading of fertiliser in rows.

In planted pastures, samples should be taken between March and June, at least 6 weeks after the last application of fertilizer and before ploughing and liming.

Soil Preparation

Primary soil cultivation.

Breaking up of compaction layers in the soil profile.

Mouldboard Plough

Mixes organic material, fertiliser and weed seed deep into the soil.

Reversible Plough

Facilitates above-mentioned cultivation. The action is the same.

Secondary Soil Cultivation Harrows

Disc Harrow Weed control and breaking up of clods.

Cultivator Breaking up of compaction layer at soil surface, and control of weeds.

Spike-tooth Harrow Final seedbed preparation.

Harrow Final seedbed preparation.

Lime Spreader Spreads lime evenly on the soil surface.

Fertiliser Spreader Facilitates even broadcasting of fertliser, before as well as after planting.

Manure Spreader Broadcasting of large quantities of organic material.

Cambridge Roller Ensures good contact between seed and soil.

Wheat Planter Ensures all seed is sown at a given depth.

Invest in Irrigated Lucerne Production in Southern Africa

Opportunity Snapshot

• Industry: Agriculture
• Stage: Start-up
• Investment size: $440,000 / min. $435,000
• ROI: 51% in 10 years
• Type of investment: Debt

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Investment Opportunity

Competitive advantage, rationale for the deal, use of financing, opportunity for the investor.

Lucerne, or alfalfa is the plant which has been longest grown specifically for animal feed. The word ‘alfalfa’, means ‘best fodder’. Lucerne is the king of fodder.

Lucerne is a perennial crop with a productive stand life of 5-7 years. It is widely grown as forage for cattle and is often harvested as hay. The use of Lucerne in the form of hay is a popular practice in South Africa.

Services The production and selling of Lucerne to target markets as hay or pellets.

Target markets Dairy producers are the most important purchasers of Lucerne hay. Dairy cattle are fed for production of milk and milk production is enhanced with high quality hay.

Beef, sheep and goat markets typically put less emphasis on high-quality Lucerne. Medium and low quality hay is acceptable. Livestock producers incorporate Lucerne to provide supplement feed during weaning or reproduction and finishing animals - placing an animal on a high protein diet prior to sending it to market.

Horse owners demand weed free, bright green Lucerne.

Export market - South Africa is ranked 7th among the Lucerne exporting countries in the world.

Game Parks/ Lodges and farm Lucerne pellets are used for grazing game during drought, breeding projects, game in small grazing areas and game in captivity.

Goals To successfully transform the business to suit the needs of the growing market and to create a corporate image of the Company. To negotiate and secure contracts. The Company intends to achieve at least 13% market share respectively in the near vicinity (North West Province, Free State and Gauteng) and 8 % market share respectively of the further situated areas (Mpumalanga, Northern Cape and Eastern Cape).

• Build the farm up to be able to supply 7500 bales on a monthly basis to the various markets • Reach profits that will allow the family to make sufficient incomes and add diversity to the farm • Doubling the first years Turnover in the second year • Become the leading supplier of high quality Lucerne in our area • Supply Lucerne to a national feeding mill • Supplying export quality Lucerne • To be recognized as a major role-player in the production of Lucerne

Key milestones Milestone (Start date-End date): Budget Secure funding (01/03/2016-16/03/2016): R 6 600 000 Purchase Land (18/03/2016-04/04/2016): R 300 000 Building shed (21/02/2016-01/04/2016): R 350 000 Soil analysis (18/03/2016-02/04/2016): R 10 000 Equipment (18/03/2016-02/04/2016): R 4 398 217 Personnel (21/03/2016-25/03/2016): R 199 535 Land preparation Deforestation (27/03/2016-11/04/2016): R 7 753 Ripping of land (12/04/2016-17/04/2016): R 7 753 Application of herbicides (18/04/2016-20/04/2016): R 10 553 Ploughing (21/04/2016-23/04/2016): R 7 753 Land preparation with off-sets (22/04/2016-24/04/2016): R 7 753 Fertilization (24/04/2016-26/04/2016): R 66 608 Fences (26/04/2016-06/05/2016): R 141 500 Irrigation (26/04/2016-07/05/2016): R 254 300 Seedbed preparation (08/05/2016-10/05/2016): R 7 753 Planting of seed (11/05/2016-13/05/2016): R 7 753 Harvesting - 14/06/2016

Funding Business Need Amount Purchasing of land (22.5 hectares): R 300 000

Other assets: Shed: R 350 000 Truck: R 284 000 Equipment: R 5 001 805 Cash Flow: R 664 195 Total: R 6 600 000

Own contribution Farm Doringkloof - 25.6960 hectares (4.7 hectares is usable for irrigated Lucerne) Total: R 2 118 000

Business Term Loan 10 years Interest rate 9.5%

The keys to success • Climate/ weather conditions • Growth • Irrigation • Right soil condition • Timing • To establish and maintain a good stand • Harvesting at the correct stage • Low production cost

Competition and Buying Patterns The Company will be selling Lucerne of high quality to various buyers.

Strategy and Implementation Summary The focus on delivering high quality is the farm strategy. Its method of implementation is simply reliance on the farm’s reputation for delivering the best quality in a forthright manner.

Competitive Edge With high input cost the Company will continually refine and evaluate how resources are allocated. The farm is family owned and operated, which allows for fluctuation and latitude in duties and operation assignments. Additionally the farm will utilize its own land and accumulate additional land to reduce expensive rent costs and have an asset that gives the farm additionally value and equity.

Sale Strategy The Company will continue to sell Lucerne to locals and commodities auction markets. The farm will sell Lucerne to dairy farms, beef cattle farms, beef feedlots, sheep farms, goat farms, horse equestrians and game farms. Additionally, the farm will utilize wholesale buyers that will come to the farm to buy Lucerne at auction pricing. There are also additional animal feeding companies throughout South Africa that can be utilize to buy Lucerne directly from us.

Marketing Strategy The marketing strategy is to deliver high quality Lucerne and a reliance on the Company’s reputation for delivering the best quality in a forthright manner. Being fully trained and experienced in marketing and marketing related activities, we intend to engage into a detailed marketing plan. It is the believe of the Company that if focus is turned on quality and customers’ tangible and intangible needs, the Lucerne industry have ample opportunities.

One of the main objectives of the marketing plan is to stimulate the market with: • Quality Lucerne products • Full fill the tangible and intangible needs of the customer • Outstanding customer service • Offer products that the market wants

The Company was first established in 2005. It only recently came into operation and is heading into its 6th month of operation. The farm began to purchase sheep in February 2015 to put the business in position to grow.

• Labour • Hydraulic Oil • Grease • Oil • Fertilizer granules • Fertilizer liquid • Lime • Gypsum • Herbicides • Electricity • Diesel • Baling Twine • Wear and Tear • Breakdowns

The business need is calculated as follows: Purchasing of land (22.5 hectares) - R 300 000.00 Shed - R 350 000.00 Truck - R 284 000.00 Equipment - R 5 001 805.00 Cash Flow - R 664 195.00 Total establishment need amount - R 6 600 000.00

Business Term Loan payable over 10 years (120 months) at an interest rate of 9.500%

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• Pasture establishment
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• Pasture species

Lucerne - the plant and its establishment

Please note: This content may be out of date and is currently under review.

Lucerne or alfalfa ( Medicago sativa ) is a deep-rooted, temperate, perennial pasture legume which is well adapted to mixed farming systems in southern Western Australia. An established lucerne pasture provides an alternative source of forage for animal production, especially outside the growing season of annual crops and pastures. The deep roots of lucerne can dry the soil and thereby increase the capacity of soil to store water in times of excess, which reduces groundwater recharge. Optimising plant densities at establishment is critical to ensure high production over the life of the stand.

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kangaroo paddock - barley and lucerne.JPG

Lucerne - the plant

Lucerne or alfalfa ( Medicago sativa ) is a deep-rooted, temperate, perennial pasture legume which is well adapted to mixed farming systems in southern Western Australia.

Due to its high water use and deep roots (>two metres on suitable soils) it is able to address rising watertables and associated salinity.

Lucerne will provide additional green feed at the start and at the end of the normal winter growing season with peak production in spring and early summer.

It has the ability to respond quickly to significant summer rainfall (>10 millimetres) but requires 20-25 millimetres (mm) to produce substantial growth.

A rain-fed lucerne pasture produces between 4-8 tonnes (t) of dry matter per hectare per year (DM/ha/yr) which is similar to annual pasture, but production is spread more evenly over the year.

Once established, lucerne has good drought tolerance and is well suited to irregular rainfall patterns, but it will appear to go dormant during extended dry periods.

It grows in areas receiving as little as 325mm annual rainfall but also provides good summer production in areas up to 700mm rainfall. Out-of-season production can be used to reduce supplementary feeding requirements.

Lucerne produces high quality green feed. It has high energy — digestibility of 65-72% with a metabolisable energy of 8-11 megajoules per kilogram (MJ/kg) DM — and high protein (12-24%).

The quality of feed remains relatively constant throughout the year while it is active. Lucerne is also a source of calcium, magnesium, phosphorus and vitamins A and D.

Lucerne can be grown as a pasture phase, removed and followed by a crop phase or it can be over sown with crops (pasture cropped).

Lucerne fixes between 10 and 20kg/ha of nitrogen for every tonne of dry matter produced, increasing soil nitrogen levels for subsequent crops.

Once established, it can help manage herbicide resistant weeds with its competitiveness and tolerance of some broad-spectrum herbicides.

Effective weed management will increase the legume component and nitrogen accumulation from a lucerne based pasture. Also, grain crops following a lucerne phase produce better yields and quality than unimproved pasture.

The principles for integrating lucerne into broadacre dryland farming systems are described in the Department of Agriculture and Food, Western Australia's (DAFWA) Bulletin 4785 - Lucerne Guidelines for Western Australia. The bulletin is available in hard copy from department offices or can be emailed in PDF format on request.

In brief, lucerne can:

• provide a high quality feed for livestock and improve animal health
• reduce groundwater recharge and help to alleviate the effects of salinity
• even out seasonal livestock feed and produce fodder opportunistically out-of-season
• improve soil fertility and structure
• reduce weed burden and manage herbicide resistance for cropping.

Lucerne’s limitations are:

• the cost, and slow rate (6-12 months) of establishment
• low winter production
• requirement for rotational grazing for long-term persistence
• greater monitoring for insects and susceptibility to being over-grazed
• variable out-of-season production
• the pasture phase needs to be at least three years to overcome the high upfront costs of establishment
• can be difficult/costly to remove if going into a crop phase
• can reduce crop yields in the year following the lucerne phase due to a dry soil.
• Description
• Growth habit varies with winter activity. The less winter active types have a lower set crown and a more prostrate growth habit, while more winter active types have an erect growth habit (50-70 centimetres high).
• Plants are hairless with many stems originating from the crown.
• Leaves are trifoliate with leaflet length greater than the width.
• New stems emerge from the crown following grazing. These stems may branch from the lower axillary buds as they develop.
• Flowers are compact racemes with purple florets.
• Pods are coiled spirally with two to five kidney-shaped, yellow or brown seeds.
• Seed count is 400 000/kg (very small).
• Soil-climate adaptation
• Rainfall: >325mm.
• Drought tolerance: very high.
• Frost tolerance: moderate to high.
• Soil type: grows well on a wide range of well drained soils including deep loams, deep yellow and brown sands, loamy sands over clay or gravel, deep sandy duplex soils and uniform clays. It is not suited to deep pale sands and shallow soils.
• Soil fertility requirements: moderate to high.
• Soil pH (CaCl 2 ): 4.8 to 8.0 in the top 30 centimetres (cm) — note optimum pH >5.5.
• Aluminium tolerance: low.
• Waterlogging tolerance: low.
• Salt tolerance: moderately low (if not waterlogged).
• Nutritive value: digestibility of 65-72% whole plant, 75-80% leaves and 45-70cm stems. Metabolisable energy of 8-11 MJ/kg DM and crude protein (12-24%).

When successfully established, lucerne will be productive over the life of the stand. Attention to detail at establishment in order to optimise plant density is critical as recruitment is limited.

• Site selection

Select a site 12 months in advance of sowing and soil test for pH and nutrient levels.

Lucerne has limited tolerance to soil acidity. Soils that have a pH Ca of 4.8-5.2 are at the lowest range suitable for the best growth and persistence of the lucerne and rhizobia. Ideally, these pH levels need to be corrected with the use of agricultural lime.

Lucerne is best established on:

• upper and mid slope sites
• well drained duplex soils
• areas which are at risk to groundwater rise
• coloured sands, loamy sands or finer textured soils.

Characteristics of better sites are:

• pH ≥5.2 (CaCl 2 ) in the surface 30cm
• increasing pH with increasing depth
• well drained and not waterlogged for excessive periods
• moderate to high fertility
• low salinity levels (EC <3 deciSiemens per metre)
• contain low weed populations
• low existing herbicide residues (particularly Group B sulphonylurea herbicides)
• soils with a depth of at least two metres (m) with no limiting chemical or physical conditions in the subsoil such as poor structure.
• Variety selection

All lucerne varieties are summer active but they vary in their winter activity.

Each variety is given a winter activity rating between 1 and 10, with 1 being winter dormant and 10 highly winter active.

In general, winter active varieties (>6) are better adapted to Mediterranean climatic conditions as found in southern Western Australia. This is because the more reliable rainfall occurs in the cooler months. There is a small trade-off between winter production and out-of-season production. Match a variety with your regional or paddock scale environmental conditions and the intended use pattern (Table 1).

Varieties with lower winter activity ratings have crowns lower to the ground, therefore they are more tolerant of grazing than highly winter active varieties and are likely to persist for longer. However, there are some winter active varieties available that have improved grazing tolerance. The winter activity rating also influences the feed and hay quality because the lower the winter activity the greater the ratio of leaf to stem. The leaf is more digestible than stem.

Selection based on pest and disease resistance is less important compared to intended use because improved breeding has resulted in most varieties with similar tolerances.

• Site preparation and weed control

Sowing should not start until good weed control is achieved. This is because seedling lucerne is a poor competitor against weeds, effective herbicide options are limited and the seedling develops slowly and may take up to eight weeks before herbicides can be safely used.

Thorough weed control prior to sowing is essential in the establishment year. The importance of weed control increases as growing season length shortens. Annual ryegrass, capeweed, geranium, radish and turnip are major weeds when establishing lucerne. Spring and summer weeds including melons, wireweed, mintweed, dock and sorrel must be controlled before sowing as they are difficult to control in seedling lucerne and will compete for water during the critical first summer.

Lucerne is best established after a crop that has reduced weed burden. If sown after pasture, weed reduction by grazing and winter pasture topping (hay freezing) with glyphosate or spraytopping with paraquat is recommended. To control weeds emerging at the seasons break, apply a 'doubleknock' treatment of glyphosate followed by Sprayseed® within 10 days of the initial glyphosate application. Trifluralin can be incorporated to control the emergence of ryegrass and wireweed.

• Sowing time

The time of sowing is not as critical as achieving good weed control. If weeds are still germinating, it is better to delay seeding except in lower rainfall districts where this is not an option as there is usually insufficient time for seedlings to establish roots to survive the summer. In the high rainfall region there is a risk of waterlogging in mid-winter, so it is better to sow later when the soil is moist but not waterlogged.

• Seeding machinery

A full range of machinery types can be used from air seeders to combines; the critical factor is the correct seeding depth.

The very small lucerne seed needs to be placed accurately at 0.5-1cm deep into moist soil.

Maximise seed-soil contact by using press wheels or a rubber tyred roller.

Match sowing speed to soil type to avoid furrow fill from adjacent tynes. Beware of furrow fill from subsequent operations and heavy rainfall.

Disc seeders can be useful on lighter soil types prone to erosion and in heavy stubble scenarios, although they lack the ability to incorporate herbicides.

• Sowing rate

Lucerne will naturally 'thin down' to a sustainable plant population in rain fed stands.

Introducing an appropriate target population close to the expected final plant density is recommended. If depth control is not precise or soil moisture conditions are not optimal then increase the sowing rate.

Limited success has been achieved in re-sowing where sub optimal density has occurred. Coated seed will have less seeds per kilogram so increase the sowing rate by at least 33% to achieve the same plant density as bare seed. Calibrate seeding equipment for particular seed types to ensure accuracy of seeding rate.

• Inoculation

Lucerne requires Group AL inoculum. Do not rely on previous lucerne or legume history at the site for inoculation.

Lucerne seed can be:

• manually inoculated on farm using the peat inoculum (for example rhizobia and lime pellet)
• inoculated and lime pelleted by the seed supplier/inoculation service provider
• inoculated as part of a specialised coating process by the seed company
• granular inoculants can be drilled with the seed.

Lime pelleting can extend survival time of rhizobia providing more sowing time flexibility. Seeding rate may need to be adjusted with coated seed. Remember a sticker (for example Methocel) is required for peat based inoculants.

• Cover-cropping

Cover-cropping refers to sowing lucerne with an annual crop such as barley or canola.

The annual crop provides an economic return offsetting establishment costs and reduces wind erosion. However, the crop will compete with the seedling lucerne for light, nutrients and water and can cause poor lucerne establishment.

For the best result use a short season species at a low rate and plant on wide rows.

Options include:

• over-sow cereals at 20-30 kg/ha; barley is the best option
• sow lucerne in every row and cereal on alternate rows
• over-sow IT canola — Imidazolinone tolerant canola varieties allow lucerne establishment under them as lucerne is also tolerant of similar herbicides and the canola crop can offset cost of lucerne establishment. Ensure the paddock is free of capeweed and silvergrass as control options for these weeds are difficult in seedling lucerne & IT canola
• beware of limited weed control options.

Establishing lucerne will benefit from 10-15 kg/ha of phosphorus (drilled into the furrow) and 15-20 kg/ha of potassium (topdressed) at seeding on all mildly acidic soils.

Potassium (K) is recommended on lighter soils with depleted K reserves (<80 mg/kg K).

Check trace element application history and topdress Super Copper Zinc & Molybdenum pre-seeding if trace elements have not been applied in the past 6-10 years.

The main pests of lucerne at establishment are red legged earth mite and lucerne flea.

Incidental pests include aphids, weevils and grasshoppers.

Insects are likely to invade an establishing stand of lucerne.

Implement a control program the season prior for red legged earth mite (for example Timerite®). Monitor regularly as damage can occur before mites can be seen. Use a bare earth insecticide post sowing pre-emergent to control mites.

Check closely for aphid damage in the first spring and spray as necessary. Aphid damage appears as leaf curling and stunted plants.

• In-crop weed control

It is essential to control weeds before the establishment of lucerne because seedling lucerne is a poor competitor. In addition, many herbicides can only be used after the lucerne plant has developed the third trifoliate leaf. Development to this stage may take eight weeks or more which is much slower than the growth rate of weeds.

Before using any herbicide, consult product label regarding safe and effective use (particularly the withholding periods for grazing).

Trifuralin (Group D) can be used pre-sowing to control annual ryegrass and wireweed. Use of herbicides at the seedling stage requires the lucerne to have a minimum of one trifoliate leaf up to a minimum of three trifoliate leaves depending on the herbicide, so refer to the label.

Grass selective herbicides (Group A fops and dims) can be used to remove most grass weeds except silver grass.

Propyzamide (Group K) can also be used to control most grass weeds including silver grass and seedling wireweed.

Many broadleaf weeds can be removed using the following herbicides:

• Bromoxynil (Group C)
• Bromoxynil and diflufenican (Group C and Group F)
• Flumetsulam (Group B)
• Imazethapyr (Group B), a range of grass weeds are also controlled
• Imazamox (Group B), a range of grass weeds are also controlled.
• Measure your success

Monitor your stand continually once sown so as to react quickly to problems caused by insects, weeds and nutrition, until plants are well established.

Review your target plant density (Table 3). Check for successful nodulation 4-6 weeks after sowing by digging up 5-10 plants and looking for nodules on roots. If no nodules, check again in four weeks. A sub-optimal stand density and poor nodulation should be investigated.

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AGRONOMIST NOTEBOOK:Lucerne, good fodder that’s easy to plant

Cows eating  lucerne  hay from manger on farm. PHOTO |FILE

By  Ann Macharia

Agricultural Technical Consultant

What you need to know:

• Lucerne is one of the fodder crops that is easy to establish and manage
• The crop is nutritious with a high protein content, is palatable and can help a farmer sustain high milk production when he feeds his dairy cattle

Lucerne does well in high altitude areas with well-drained soils that have a pH of about 5.5 and above and the land should be cleared, ploughed and prepared to a fine tilth before the onset of rain.

For livestock farmers, the good strategy is always to produce fodder during the rainy season and feed animals during the dry season.

This model works well as it cushions farmers from the frequent animal feed price fluctuations. A farmer recently asked me what fodder to grow to cushion himself from the vagaries of the dry season.

I recommended lucerne, and here is why. Lucerne is one of the fodder crops that is easy to establish and manage.

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The crop is nutritious with a high protein content, is palatable and can help a farmer sustain high milk production when he feeds his dairy cattle.

The fodder requires good management practices after planting for proper crop establishment.

In addition to lucerne offering high-quality grazing fodder, it is also a leguminous plant that helps to fix nitrogen in the soil improving fertility.

And that is not all, you can intercrop lucerne with other crops such as oats and barley and the fodder acts as a cover crop, controlling weeds and soil erosion.

Well-rotted manure or compost should be applied and incorporated in the subsoil

Establishment

It’s vital to inoculate the seeds by coating them with rhizobium before planting. This helps in germination, early seedling vigour as well as nodulation. Seed wetting can also be done before planting if no inoculation is being done.

The sowing of seeds is by broadcasting method or placement methods in shallow drills of about 2.5cm in depth and 30-40cm inter-row distance.

Good soil-seeds contact is essential, and this is achieved by ensuring that the soil is well moist during planting. Fertiliser application is necessary during planting. The soil test analysis determines the type of fertiliser to be applied. However, DAP can be used during planting to encourage proper root development.

Sowing lucerne without intercropping results to its faster establishment, which can be uneconomical.

The germination rate of lucerne can be affected by various factors, and this include fungal or insect attack of the seeds, moisture stress or deep sowing.

Control of weeds during the initial crop development is key to good lucerne pasture growth since weeds compete for space, light, and moisture and in some cases harbour pests.

Early weed control helps to reduce the cost of production before the weeds have fully developed.

Lucerne is prone to pests such as aphids, cutworms, and diseases such as root rot, stemphylium leaf spot. Continuous application of farmyard manure in the field helps to improve soil fertility, structure texture and increase the yields.

In most cases, farmers usually have good lucerne establishment, a first good harvest but fail to get the second one due to lack of good management practices especially during harvesting.

It happens when the farmer allows the animals to graze by themselves and pull out young lucerne plants off the ground destroying or killing the crop.

The crop is harvested mostly when it's 50 per cent flowering since the protein content is high. This also allows the plants to build up better roots and enables stronger and faster recovery, which leads to the proper establishment of the stand.

Harvesting can be done using a sickle or machete to a stubble height of about 5cm above the ground. This allows the plant to regenerate as long as there is adequate moisture.

Lucerne is cut and fed while green after a little wilting to avoid bloating. It can also be preserved as hay for future use. The crop can last to about 3-4 years under good management.

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Simple steps a must for growing lucerne.

With a simple fertilizer plan, Lucerne can be hugely successful and help costs during a time of increasing imports, according to Harper Adams University agronomist, Louisa Dines. 

She believes that if basic agronomic guidelines are followed, then there should be minimal complexities.

She said: “Lucerne is a valuable source of forage which naturally fixes nitrogen and is tolerant to drought, heat and some salinity, and offers a source of protein in regions where cropping choice is limited by one of these factors.

“It thrives on free-draining soils and can be grown as a monoculture or in mixtures with suitably slow-growing grass species which won’t out-compete the lucerne seedlings.

“Lucerne is most commonly drilled in the spring, with DairyCo research work at Harper Adams and number of other sites suggesting that late summer is generally less successful.

“Although it requires no nitrogen once established, it can be beneficial to apply it during sowing. In addition, phosphate and potash requirements are higher than for grass and must be met to maintain yields.”

Louisa believes that due to a limited range of available pesticides, good establishment is the key to controlling weeds and unlike grass, lucerne crops cannot be renovated by over-seeding in subsequent years to improve plant populations.

She added: “In drier areas of the world, lucerne can be harvested as hay and is successfully rotationally grazed in countries such as New Zealand. In wetter conditions, grazing is likely to damage the crowns and reduce persistence.

“So the predominant use of the crop in the UK and Ireland is for silage. In the year of establishment, a light cut may be taken in mid-August but in subsequent years the crop will provide four to five cuts per year.

“It should be cut at around the bud or first flower stage as this provides the ideal balance between yield and protein levels. Two or three further cuts can then be taken at six week intervals before it is left to grow into the autumn and replenish resources to the deep tap root.

In summary, a well-established lucerne crop can offer four to eight years persistency of a forage that is highly digestible and rich in minerals.

“Protein levels can reach 18-22 per cent with yields of up to 12t/ha of dry matter per year with a reduced reliance on purchased fertiliser.

“There is no reason why UK farmers should dismiss this crop, as it will only continue to prove more valuable as the cost of imported protein rises.”

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Mzansi Agriculture Talk

Transformation within agriculture is taking shape – Lucerne business

Background The lucerne industry is one of the smaller sub-sector of the agricultural industry. The industry is mainly broken down two distinct parts, lucerne seed and lucerne hay. In the recent past, the lucerne industry has been operating under challenging conditions, ranging from weather challenges to the sales of non SA standard lucerne seed as SA standard. Compounding the problem has been the challenge of the amount of lucerne hay that is not officially recorded and as such not paying the levy dues. It is, however, encouraging that big lucerne hay purchases require certificate of quality and that can only be done through laboratory equipment that is calibrated by the National Lucerne Trust (NLT -https://lusern.org). The NLT is the administrator of the industry’s statutory measures and oversees the trust assets. The statutory levies that are instituted in terms of the Marketing of Agricultural Product Act No. 47 of 19996 as amended. These levies are used to fund generic activities of the industries such as research, export promotion and market access or consumer education to mention but a few. One of the conditions of approval of the levy is the allocation of 20% to transformation which must be used in line with the transformation guidelines (https://www.namc.co.za/wp-content/uploads/2018/06/NAMC-Generic-Transformation-Guidelines-as-amended-in-2018.pdf).

Lucerne grading is scientific with a bit of art As I now understand lucerne grading is done through to three tests – physical observation, moisture content testing and laboratory testing of nutrients. I must admit that my understanding of the grading is limited. The first round of these tests is done by the producer (observation, moisture and lab test). Then the producer declares to the buyers the lucerne availability in terms of volume and grading. The buyers often do a second test with the producer to confirm the declared volume and quality. Once the two test reconcile a sales agreement gets implemented. The equipment to test moisture content and its attributes become very important – the required moisture content varies from one buyer to the next but between 16% and 18% seem to be an acceptable range. Noteworthy, the laboratory equipment needs to have the National Lucerne Trust calibration which also provides a certificate. Under normal conditions the farmer pays for the costs of laboratory testing, however, smallholder farmers who are in contact with the NLT have their costs absorbed by the NLT. It seems that the basing of the prices is a bit complicated, at least, on the side of the producer. The buyers often have higher negotiating power on the basis of information. It is said most of the disputes in the business normally occur on the pricing and associated quality attributes.

Lucerne transformation On regular basis the NAMC visits the transformation initiatives of each of the industries, last week a visit to the lucerne industry was undertaken. It is important to say from the onset that the industry is on the right track with its transformation approach. Over the past years the industry has been working with a number of black farmers in North West. Their working arrangement had a huge element of mentorship which to a larger decree came as creating dependency of the back farmers to the mentor. Recently the industry started to work with two black farmers in the Eastern Cape (Craddock and Somerset East). The National Lucerne Trust invited the NAMC transformation Desk to be part of the visit they were making to the two farmers in the Karoo. The aim of the visit by the trust was to expose the two farmers to lucerne sampling and physical evaluation of lucerne hay. The physical evaluation involves a look at the foreign matter in the bales, the colour of the bales as well as ensuring proper storing to avoid losing some of the attributes. The process of taking a representative sample from a lucerne lot involves identifying a representative sample (it was said to be around 45% of the lot). The sample needs to be as representtaking sample using a tool kit, the storage process of the sample. Access by black farmers to these testing kits is covered by the National Lucerne Trust. With the two the farmer communicates the available amount of lucerne and test results, depending on the prospective buyer these tests can either be taken as are or verified by both parties. There are three important aspects of lucerne quality that need to be done: a) cleanliness, b) moisture content, and c) nutrient analysis. The combinations of these give the two parties the grade of the lucerne and sales are facilitated on these features.

NLT transformation support package provided The NLT support ranges from mentorship, technical support as well as inputs. Technical support ranges from assistance with sampling process, moisture content testing and the way of doing physical evaluation. The mentorship involves a wholesome assistance to smallholders by the mentor. We have indicated our discomfort with the mentorship approach as it seems to create dependency. We are very impressed with the technical assistance as it is aimed to assist already existing producers to optimise on their hay returns. In the last engagement, we visited the farms where the NLT provided the following assistance:

Each of the two farmers received lucerne seed (10 bag of 25kg mass); and The NLT provided access to the moisture content testing equipment. The NLT also provided access to the lab for nutrient analysis that will be covered by the NLT.

One of the interesting part of the visit was to realise that one of these farmers is a mohair producer who is also part of the Mohair Industry intervention. This implies that this farmer has access to technical support of the two of his farm major lines setting the farm for better prospects of success.

Concluding remarks Some of these industries in agriculture are not mostly spoken about but very important. The striving merino sheep production, the angora goat farming are striving on the back of vibrant lucerne production. However small the lucerne industry it transformation work is taking shape and with close working relations with governments in the provinces that produce lucerne the National Lucerne Trust can increase its footprint.

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Lucerne: A massive export market for ‘green gold’

Johan jacobs plants lucerne to ensure mega yields from other crops in his niche farming business, as well as a good cash flow for at least nine months of the year. sabrina dean visited him on his farm on the banks of the orange river in the northern cape..

The farm Lucky Valley just outside Douglas in the Northern Cape borders one of South Africa’s most important irrigation rivers, the Orange River. Here Johan Jacobs and his wife Colleen pursue their farming passions.

Johan’s focus is on irrigation cropping, while Colleen runs an award-winning Bonsmara stud herd. They are currently also branching out into ecotourism, and their love of nature is evident in signboards cautioning visitors to be on the lookout for meerkats crossing the gravel road up to the house.

Lucky Valley is one of several farms that the Jacobses own and rent, which together comprise about 23 000ha. Each farm has certain attributes that lends it to a specific use.

The irrigated crops are grown on 1 200ha on or around Lucky Valley, with some of this land being double-cropped annually.

The farthest irrigated lands under production are 2,7km from the river. So great is this distance that booster pumps had to be installed roughly halfway between the river and these lands.

Johan earns most of his income from seed potatoes, although these cover a smaller surface area than other crops.

New potato cultivars such as Lanorma that have become available in recent years have enabled him to increase yield from about 45t/ha to an average of 70t/ ha, and even up to 100t/ ha in an exceptional year.

In the coming season, Johan intends planting 200ha to potatoes, 650ha to maize, 650ha to wheat and 350ha to lucerne. He also plans to grow some barley.

Profiting from supplying niche clients Johan earns a premium by producing crops for niche clients. He plants potatoes for McCain, a waxy maize variety with a high starch content for Tongaat Feed Mills, and maize for chip manufacturer Simba, which is used in its Fritos brand.

“It’s a little bit of value-adding: planting niche products instead of just planting for the commercial market,” he says.

Stud breeding Colleen manages her Leehan Bonsmara Stud with care and precision, and she is never without her small notebook in which she constantly records details of the animals.

Her focus is on breeding polled cattle as these are increasingly preferred by commercial farmers and feedlots. Colleen started in 1994 with a herd of approximately 100 mostly crossbred cows.

Later, she decided to invest in stud breeding. She began by buying 52 stud cows, which were synchronised and artificially inseminated, and purchased her first stud bull in 1995.

Today, approximately one-third of her total herd of 2 400 head of cattle, which includes stud and commercial animals, is polled.

She maintains records and BLUP breeding values through SA Stud Book, and selects for traits such as feed conversion ratio and weaning weights. She insists, however, that visual selection remains important.

The business is focused predominantly on cow calves, but also produces stud bulls. Animals not selected for the stud operation are reared for slaughter either by grazing on other farms or at the Lucky Valley feedlot.

Ecotourism and adventure destination One of the Jacobses’ most recently acquired properties, Witfontein, which also borders the Orange River, is being developed as an ecotourism destination. The farm is home to a number of plains game species and limited hunting can be accommodated.

A lodge is currently under construction and this will also serve as a wedding or conference venue. In addition, adventure tourism is being introduced on the property.

Johan and Colleen’s daughter, Johandri, is married to neighbouring cattle farmer Todd Dugmore, and the couple have established a river rafting operation. Johandri’s younger sister, Elizca, will handle the hospitality side of the business. Their eldest brother, Michael, is also involved in the family farming operation and farms Lunëburg and Nuweland.

In addition, Johan’s brother, Klasie, farms nearby and the two often share ideas. Johan explains that he grew up in a family who helped each other out and he is trying to do the same with his family.

The farming environment has changed dramatically since he started out, he adds. Although not keen to be at the front of the learning curve at all times, he employs precision practices and makes full use of these tools and data, as well as niche production, to maximise profits.

Email Johan Jacobs at [email protected] .

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WK Kellogg to boost production in Battle Creek as it cuts back elsewhere

WK Kellogg Co. will increase production at the cereal plant in its hometown of Battle Creek while closing its cereal plant in Omaha, Nebraska, and reducing production at another facility in Memphis as it plans to improve productivity at other facilities in North America.

The company said the plan will result in a net loss of 550 jobs, a number that includes hirings at the plants that will increase production. The company didn’t immediately respond when asked Tuesday how many workers would lose their jobs in Omaha and Memphis. The Omaha plant will begin a phased reduction in production from late 2025 with a full closing slated for the end of 2026. The Memphis factory will also begin reducing production late next year.

WK Kellogg instead plans to invest in new infrastructure and equipment at the Battle Creek plant plus facilities in Lancaster, Pennsylvania, and Belleville, Ontario.

In a statement, Omaha Mayor Jean Stothert said she didn't learn of the planned closure until Tuesday morning.

“I’m certainly disappointed that Kellogg’s would make such a significant announcement this way,” Stothert said. “After more than 75 years in Omaha, Kellogg’s will leave a big void.”

After striking Kellogg's U.S. cereal plants, the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union ratified an agreement with the company in December 2021 that included a moratorium on U.S. cereal plant closures through October 2026.

In February, the company told analysts that it planned on “consolidating the manufacturing network.” Kellogg, which made 800 million pounds of cereal last year across six plants, has about 3,000 employees, according to its presentation at the time.

In December, the Michigan Economic Development Corp. approved a 15-year designated renaissance zone for WK Kellogg to invest at least $44 million to retain 170 jobs in Battle Creek , instead of moving two of three production lines to Ontario, and create 43 new positions at the Michigan facility.

The Battle Creek plant has capacity for six production lines. Half of the company's more than 700 employees in Michigan work at its hometown manufacturing site.

WK Kellogg also reported earnings on Tuesday, saying it now expects sales growth to be at the lower end of its -1% to 1% range for the year. Sales for the quarter declined 3.9% year over year, which was roughly in line with Wall Street’s estimates while earnings per share missed expectations. Its net income was $31 million, up from $27 million in the second quarter of 2023.

The company provided details of its plan to modernize its supply chain, with capital investments "focused on enhancing supply chain effectiveness and efficiency, production shifts from the oldest plants to other facilities, and consolidation of its manufacturing network," according to a press release.

The company expects to spend about $450 million to $500 million on the supply chain modernization, including $390 million in capital expenditures and one-time cash restructuring and nonrestructuring costs of about $110 million.

WK Kellogg’s shares closed down nearly 7% Tuesday in New York. Through Monday's close, the stock had risen 32% this year.

Detroit News Staff Writer Kalea Hall, the Associated Press and Bloomberg's Karen Leigh, Shelly Banjo and Anne Cronin contributed.

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WK Kellogg to close Omaha plant, downsize in Memphis as it shifts production to newer facilities

Lellogg’s Omaha manufacturing plant is shown Tuesday, Aug. 6, 2024, in Omaha, Neb. Kellogg’s announced on Tuesday it would be closing the Omaha manufacturing plant by end of 2026. (Nikos Frazier/Omaha World-Herald via AP)

Employees leave the Kellogg’s Omaha manufacturing plant, on Tuesday, Aug. 6, 2024, in Omaha, Neb. Kellogg’s announced on Tuesday it would be closing it’s Omaha manufacturing plant by end of 2026. (Nikos Frazier/Omaha World-Herald via AP)

A look at Kellogg’s Omaha manufacturing plant, on Tuesday, Aug. 6, 2024, in Omaha, Neb. (Nikos Frazier/Omaha World-Herald via AP)

Employees leave the Kellogg’s Omaha manufacturing plant, on Tuesday, Aug. 6, 2024, in Omaha, Neb. (Nikos Frazier/Omaha World-Herald via AP)

FILE - Striking Kellogg’s workers stand outside the company’s cereal plant in Omaha, Neb., on Dec. 2, 2021. (AP Photo/ Josh Funk, File)

Kellogg’s Special K cereal is displayed at a Costco Warehouse in Cranberry, Pa., on Jan. 12, 2023. (AP Photo/Gene J. Puskar)

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WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities.

The company said Tuesday it will close its Omaha, Nebraska, plant by the end of 2026. It also plans to scale back production at its plant in Memphis, Tennessee, starting next year.

WK Kellogg said it will increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. The company said it plans to invest $390 million in new technology and infrastructure and will incur a one-time charge of $110 million in restructuring costs.

Battle Creek-based WK Kellogg said the plan will result in a net loss of 550 jobs, a number that includes hirings at the plants that will increase production. The company didn’t immediately respond when asked Tuesday how many workers would lose their jobs in Omaha and Memphis.

In a statement, Omaha Mayor Jean Stothert said she didn’t learn of the planned closure until Tuesday morning.

“I’m certainly disappointed that Kellogg’s would make such a significant announcement this way,” Stothert said. “After more than 75 years in Omaha, Kellogg’s will leave a big void.”

WK Kellogg’s Omaha plant was the epicenter of a strike against the company in 2021, when workers walked off the job for two months to protest a two-tier wage structure and other issues. At one point, Kellogg sued its union , saying striking workers were blocking entrances to the Omaha plant.

The strike ended in late 2021 when the company agreed to raises and other benefits.

The reorganization comes amid a decline in U.S. demand for cereal. Cereal sales boomed during the pandemic, when families were home and eating breakfast together. But they have struggled since then. Unit sales of cereal have fallen 4.2% over the last year and fell 3.6% the year before that, according to Nielsen IQ, a market researcher.

WK Kellogg Co. was formed last year when its former parent the Kellogg Co. — which was founded in 1906 — split into two companies. WK Kellogg retained the cereal business, including brands like Frosted Flakes, Fruit Loops, Rice Krispies and Raisin Bran. Kellanova, based in Chicago, houses many of the company’s best-sellers, including Pop-Tarts, Pringles, Eggo waffles and Cheez-Its.

WK Kellogg said Tuesday its net sales fell 4% to $672 million in the April-June period. The company got some boost from higher pricing and growing sales of premium products like Special K Zero. But its overall sales volumes fell by 4.8%, and the company said it felt some pressure from store-brand cereals as customers sought better value.

WK Kellogg shares dropped more than 7% Tuesday.

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WK Kellogg to close Omaha plant, downsize in Memphis as it shifts production to newer facilities

Dee-Ann Durbin

Associated Press

FILE - Striking Kellogg's workers stand outside the company's cereal plant in Omaha, Neb., on Dec. 2, 2021. (AP Photo/ Josh Funk, File)

WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities.

The company said Tuesday it will close its Omaha, Nebraska, plant by the end of 2026. It also plans to scale back production at its plant in Memphis, Tennessee, starting next year.

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WK Kellogg said it will increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. The company said it plans to invest $390 million in new technology and infrastructure and will incur a one-time charge of $110 million in restructuring costs.

Battle Creek-based WK Kellogg said the plan will result in a net loss of 550 jobs, a number that includes hirings at the plants that will increase production. The company didn’t immediately respond when asked Tuesday how many workers would lose their jobs in Omaha and Memphis.

In a statement, Omaha Mayor Jean Stothert said she didn't learn of the planned closure until Tuesday morning.

“I’m certainly disappointed that Kellogg’s would make such a significant announcement this way,” Stothert said. “After more than 75 years in Omaha, Kellogg’s will leave a big void.”

WK Kellogg’s Omaha plant was the epicenter of a strike against the company in 2021, when workers walked off the job for two months to protest a two-tier wage structure and other issues. At one point, Kellogg sued its union , saying striking workers were blocking entrances to the Omaha plant.

The strike ended in late 2021 when the company agreed to raises and other benefits.

The reorganization comes amid a decline in U.S. demand for cereal. Cereal sales boomed during the pandemic, when families were home and eating breakfast together. But they have struggled since then. Unit sales of cereal have fallen 4.2% over the last year and fell 3.6% the year before that, according to Nielsen IQ, a market researcher.

WK Kellogg Co. was formed last year when its former parent the Kellogg Co. — which was founded in 1906 — split into two companies. WK Kellogg retained the cereal business, including brands like Frosted Flakes, Fruit Loops, Rice Krispies and Raisin Bran. Kellanova, based in Chicago, houses many of the company’s best-sellers, including Pop-Tarts, Pringles, Eggo waffles and Cheez-Its.

WK Kellogg said Tuesday its net sales fell 4% to $672 million in the April-June period. The company got some boost from higher pricing and growing sales of premium products like Special K Zero. But its overall sales volumes fell by 4.8%, and the company said it felt some pressure from store-brand cereals as customers sought better value.

WK Kellogg shares dropped more than 7% Tuesday.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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WK Kellogg to close Omaha plant, downsize in Memphis as it shifts production to newer facilities

WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities

WK Kellogg Co. is closing one U.S. cereal plant and downsizing another as part of a plan to consolidate its operations in newer facilities.

The company said Tuesday it will close its Omaha, Nebraska, plant by the end of 2026. It also plans to scale back production at its plant in Memphis, Tennessee, starting next year.

WK Kellogg said it will increase production and invest in new infrastructure, equipment and technology at its plants in Battle Creek, Michigan; Lancaster, Pennsylvania; and Belleville, Ontario. The company said it plans to invest $390 million in new technology and infrastructure and will incur a one-time charge of $110 million in restructuring costs.

Battle Creek-based WK Kellogg said the plan will result in a net loss of 550 jobs, a number that includes hirings at the plants that will increase production. The company didn’t immediately respond when asked Tuesday how many workers would lose their jobs in Omaha and Memphis.

In a statement, Omaha Mayor Jean Stothert said she didn't learn of the planned closure until Tuesday morning.

“I’m certainly disappointed that Kellogg’s would make such a significant announcement this way,” Stothert said. “After more than 75 years in Omaha, Kellogg’s will leave a big void.”

WK Kellogg’s Omaha plant was the epicenter of a strike against the company in 2021, when workers walked off the job for two months to protest a two-tier wage structure and other issues. At one point, Kellogg sued its union , saying striking workers were blocking entrances to the Omaha plant.

The strike ended in late 2021 when the company agreed to raises and other benefits.

The reorganization comes amid a decline in U.S. demand for cereal. Cereal sales boomed during the pandemic, when families were home and eating breakfast together. But they have struggled since then. Unit sales of cereal have fallen 4.2% over the last year and fell 3.6% the year before that, according to Nielsen IQ, a market researcher.

WK Kellogg Co. was formed last year when its former parent the Kellogg Co. — which was founded in 1906 — split into two companies. WK Kellogg retained the cereal business, including brands like Frosted Flakes, Fruit Loops, Rice Krispies and Raisin Bran. Kellanova, based in Chicago, houses many of the company’s best-sellers, including Pop-Tarts, Pringles, Eggo waffles and Cheez-Its.

WK Kellogg said Tuesday its net sales fell 4% to $672 million in the April-June period. The company got some boost from higher pricing and growing sales of premium products like Special K Zero. But its overall sales volumes fell by 4.8%, and the company said it felt some pressure from store-brand cereals as customers sought better value.

WK Kellogg shares dropped more than 7% Tuesday.

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