What Would YOU Do...

[Eephus Man]

It's only somewhat hypothetical.

We're looking at ways to increase our ag exemption at work, and a client of mine and I are considering biting off a chunk of the land and trying to plant it.

Perhaps this belongs in the Business forum, but I wanted to ask about feasibility, costs, and time expenditures for a 3-5-acre chile micro farm, along with some peripheral crops.

The property is rolling hills. Minimum vertical elevation is ~630 feet. Maximum is ~710. Hill soil type is a mix of caliche and topsoil from grass/brush compost over the years. 'Valley' soil type is Houston black clay. There are some areas that are mixed of these two types. Hills were previously terraced, presumably for fruit trees? I have no idea. Soil is terrible on those terraces.

We have two potential grow areas.

http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=29.918768,-97.871815&sll=37.0625,-95.677068&sspn=40.732051,107.138672&ie=UTF8&ll=29.919354,-97.872037&spn=0.005459,0.013078&t=h&z=17&iwloc=A

1. Due east of the building on the top of the hill, west side of property:

Pros
- Easy access to water gutters on building
- Terracing makes for good water retention, some self-shading from west sun
- Access is full-time, regardless of hours of business operation

Cons
- Soil sucks and would need to haul in dirt for amending
- Proximity to business activities makes for curiosity-seekers to invade and destroy
- No block from SE winds. Very little from NW winds. Gusts regularly exceed 20mph

2. SW of the oval-shaped holding tank in the center of the property:

Pros
- Soil type, despite being clay, is chock full of earthworms and is rich
- PM shade from mesquite
- Proximity to holding tank makes for great irrigation source, barring drought
- Winds blocked on both sides by tree lines
- Dozens, if not hundreds of Tepin pepper plants are already growing wild in this location (transferable to cultivated varietals or no?)

Cons
- Clay sucks. Trying to keep the right amount of irrigation may be a challenge
- Access to site is hindered during business hours, especially on weekends
- In case of drought, there is no simple or easy way to get water to the site (although a portable water truck is available in extreme situations)

Any thoughts on which location YOU'D use and why?

We're rank amateurs, and we're fine with that, but one of us has the free time, and the other has incentive to pay up to 50% of what the taxes would run us anyway, in order to save the other 50%.

Selling the product for a profit isn't necessary, but it'd be nice to recoup as much of the cost as possible.

 

[Datil Patch]

What is your timeframe?

 

[AlabamaJack]

I may be totally off base here but I would think that building your soil to support a chile farm in the area you are talking about would take years and much money...

and another thing...do you have an interested buyer...if you go big time...don't expect to get much more than 8-10 a pound for the superhots...that, of course is at volume...

do a simple trade study...expense to set up (building your soil, cost of seeds, fertilize, etc) vs the time to recover your original + yearly outlay

if you are going to the trouble of preparing this area and want to seriously get into chile farming...you need to think hard on your irrigation system...depending on rain or tank water is not going to cut it down there...one good drought could be disasterous...I know that increases your start up cost, but believe me in the long run it will be worth it...is there a well anywhere close you could use or maybe even have one put in?.....

 

[Eephus Man]

What is your timeframe?

Starting very small...next year.

 

[Eephus Man]

I may be totally off base here but I would think that building your soil to support a chile farm in the area you are talking about would take years and much money...

My thought on this was that, at first, it would be a 'strongest survive' scenario. Especially in the clay, there WILL be yield. Whether it is good or not would depend in large part on the weather.

Keep in mind that 'farm' would be a loose term at first. This is more about tax offset than a profitable venture. Especially in the beginning.

and another thing...do you have an interested buyer...if you go big time...don't expect to get much more than 8-10 a pound for the superhots...that, of course is at volume...

No. And I suspect that I'd be working with sweets and specialty peppers (to cater to high end restaurants, of which we do have ins) primarily, and then supplying hots/superhots to any sauce makers in the area. We can find at least a modicum of buyers here.

do a simple trade study...expense to set up (building your soil, cost of seeds, fertilize, etc) vs the time to recover your original + yearly outlay

I guess what I'm trying to figure out is what the startup cost would be at all, in either location. I have no idea. In the clay, it's all about manpower, time, some minor irrigation costs, and alternate water sources. In the terracing, it's all about soil, irrigation system, and time.

if you are going to the trouble of preparing this area and want to seriously get into chile farming...you need to think hard on your irrigation system...depending on rain or tank water is not going to cut it down there...one good drought could be disasterous...I know that increases your start up cost, but believe me in the long run it will be worth it...is there a well anywhere close you could use or maybe even have one put in?.....

I DON'T want to seriously get into chile farming, unless it works out that way. I want a tax offset. I DO need to show effort and at least some yield about every other year for it to work, but I figured if it did, even modestly, that we could expand. Irrigation in the terracing is no problem whatsoever. We have access to holding tanks for water. And if the drought was bad enough, we can always refill via our water provider, or via truck. The rainwater system we used at home during the drought a couple of years ago needed only a single refill during that time. Pretty darn impressive. The stock pond, though...that could dry up. Just don't know how long (luckily, the clay holds water so well that I THINK we could get through the worst of the worst with our 300 gallon portable water unit - would NOT be fun, but feasible). Unfortunately, we're in a rare area of zero ground water for wells. If we could drill a well and get our monopoly water company off our back, we would've long ago.

I guess what I'm asking is...what would you do minimally to get A crop (not necessarily a good one or a profitable one) in either of those areas? And does one seem inherently more well-suited than the other?

And to you specifically, AJ (or whoever is vaguely familiar with my area), are there varietals of sweet or hot that are known for their resilience to heat/drought?

We might also try feed-quality corn, which is grown all around us, without irrigation. Needless to say, last year (2009) was massive crop failure. This year, the cotton and corn was very good.

 

[Eephus Man]

I should add...we're also considering doing it because it's a hell of a lot more fun and rewarding than growing grass for livestock consumption, which is a much easier way to gain the tax offsets (and which we are doing on areas of former ag use on our place).

Kind of a 'why the hell not' scenario.

Just trying to see if it'll work at ALL.

 

[AlabamaJack]

totally understand about the tax write off and ag exemption...just wasn't sure where you were going...

as far as variety goes in our area...year in and year out, my best production comes from plain ol' orange habaneros...well over a pound a plant...but then again, wholesale prices are about $3.00 a pound...

another thing to keep in mind is if you sell to restaurants, you will definitely need some kind of liability coverage as I learned this year...the state of texas requires you to have a license to sell produce but does NOT require liability insurance...

sure dont' mean to be critical of your efforts since I respect anyone that tries "farming"...it definitely is a hard job...

on a side note...our band (Bodie Powell and Borderline) plays two/three gigs a year at the Luckenbach dancehall...I will let you know our next date and maybe you could come over and see us...and maybe, just maybe I can get a gander at where you are talking about...

 

[Eephus Man]

AJ,

Being critical is good for me. I just want to make sure it moves me in the right direction (or stops me from moving the wrong way, anyway).

Good to know on the habs. They went like gangbusters in the small raised bed I had on the hill in this location this year. In fact, all my peppers did very well there. But...it was with 'imported' dirt.

I'll make sure my partner and I split some liability coverage if we decide to start selling to restaurants. Thank you. A very wise idea.

And if I can make a Luckenbach show, I will. For some reason I thought y'all played Gruene Hall every now and then, too. If you do, our place is on the way there for you. Right off I-35 and probably only 20 minutes from Gruene, if that.

Would love to check out a live show. Been too long for me with work and kids.

totally understand about the tax write off and ag exemption...just wasn't sure where you were going...

as far as variety goes in our area...year in and year out, my best production comes from plain ol' orange habaneros...well over a pound a plant...but then again, wholesale prices are about $3.00 a pound...

another thing to keep in mind is if you sell to restaurants, you will definitely need some kind of liability coverage as I learned this year...the state of texas requires you to have a license to sell produce but does NOT require liability insurance...

sure dont' mean to be critical of your efforts since I respect anyone that tries "farming"...it definitely is a hard job...

on a side note...our band (Bodie Powell and Borderline) plays two/three gigs a year at the Luckenbach dancehall...I will let you know our next date and maybe you could come over and see us...and maybe, just maybe I can get a gander at where you are talking about...