This is the second issue of the Great Plains Herb Growers Association Newsletter. The association has been formed primarily by Great Plains States herb growers and those who wish to grow herbs commercially. The association is the outgrowth of three years of effort to form and establish an herb growers marketing cooperative. Last January, 2001 the herb growers interest group steering committee decided to form a non-profit Association to coordinate effort to organize a coop, and to educate and assist interested farmers in planning to grow organically cultivated culinary and medicinal herbs. The Association thus began with 11 members, drafted articles of incorporation and a set of by-laws, and wrote a business plan for a marketing cooperative. An ad-hoc board of directors and committed members have been holding quarterly meetings, and have established action committees to begin the business of carrying out our mission.

The mission of the Great Plains Herb Growers Association is to foster communication among herb growers, herb buyers, retailers, herbalists, health practitioners and other interested parties; to further the knowledge and safe use of herbs and herbal products; to educate farmers about organic cultivation practices for medicinal plants best suited for the Great Plains bio-region; and to provide collective resources to aid in the production, processing and marketing of organically grown high quality herbs.

The steering committee met on December 14, 2001 to discuss primarily the adoption of articles and by-laws and to elect a board of directors. In Attendance were Emily Hunter from Matfield Green, Rob and Nancy Marshall, Lawrence, Steve Moring, Oskaloosa, David Coltrain, Rhonda, Janke and Jeanie DeArmond, from Manhattan.

The meeting began with discussion of association finances, membership and distribution of our first issue of the newsletter. The association has adequate funds to support itself in the coming year and will hopefully obtain a Heartland Cluster grant from the Kansas Rural Center. We have recruited one new member since October and sent out over 150 issues of the first newsletter.

Emily and Rob worked with Vic Davis, Weary Davis, LC, Junction City, KS to complete our articles and by-laws. The group reviewed the draft and decided to make minor changes. The committee voted to adopt the articles and by-laws. A board of directors was elected and includes Rob Marshall (Chairman), Steve Moring, (President), Rhonda Janke (Treasurer), Jeanie DeArmond (Secretary). Emily Hunter, Nancy Marshall, Norma Siems, Jim Rowh, Doug and Jan Thorn (pending phone call), and David Coltrain (ex officio).

A business plan has been drafted for a Great Plains Organic Herb Growers Marketing Cooperative. Cindy Thyfault and Steve Moring were responsible for its development and editing. The final draft will be available to members by the March 9 GPHGA board meeting. The Board discussed a new membership drive to increase membership and operating funds for the new association. Annual membership dues are $25. We continued discussions about establishing a website and promotional brochure. These activities were deferred to our action committees. We also discussed organizing a spring grower workshop. Steve Moring volunteered to develop the materials and organize the workshop planned for March 9, 2001.

Six committees established last year continue work in organizing and developing programs to carry out the association’s mission. They include the following:

An organization development committee will focus on expanding membership, fundraising, and community support.

An education committee will focus on organizing speakers for association meetings and events, seminars and workshops. Other activities will also focus on education with regard to organic practices and certification.

A marketing committee is developing a database of local, regional and national herb buyers. These consist of naturopathic health practitioners, health food stores, distributors and manufacturers of herbal supplements.

An equipment coordination committee will investigate locating, leasing and modification of existing farm machinery to seed, cultivate and harvest a variety of herb products.

A QA (Quality Assurance) Committee will focus on the quality of herbs cultivated by members of the association. Our plan is to educate members with regard to sources of high quality seed, the importance of organic practices, collect research information on methods for maximizing the medicinal constituents of herbs including harvest and processing.

A Newsletter and Website committee will coordinate putting together a quarterly Newsletter and set up and maintain an Association website for the purpose of following the outcome of grower interest group meetings and steering committee meetings.

Any members interested in becoming involved in one or more of these committees, please contact Steve Moring (785-863-4102) or Rob Marshall (785-841-9241), e-mail: herbgrowers@sunflower.com.

Last year Frontier Natural Products Coop conducted a series of FarmWorks Grower Days workshops on the organic production of herbs from seed to harvest. The workshops were divided into two days of lectures and farm tours in April and October. The Spring workshop focused the first day on the basics of herb growing and cultivating, herb quality and marketing. On the second day, presenters discussed greenhouse production of herbs, the fresh herb market, on-farm research and establishing the grower – buyer relationship. The first day of the Fall workshop dealt with herb production, using organic methods for prevention and control of disease and insect problems, and large scale culinary herb production. The second day focused on formation of grower cooperatives and on-farm research.

These workshops brought 30-40 participants, mostly serious small farmers from mainly midwestern states. The activities included farm tours and demonstration of various farm machinery used in cultivation, seeding, harvesting and processing the herbs. At the end of each session a panel discussion was provided for participants to address various issues from organic methods to defining research needs. The following is a more in depth discussion of Spring and Fall workshop sessions.

The Spring workshop began with a presentation by Tim Blakely on the growing herb market and assessment of current opportunities. The point was made that ten years ago growers had an open market and good opportunities. Currently the business has become very competitive, particularly with foreign imports. Today’s growers need to become well educated about the market and what herb crops will grow best in their fields. Organic certification is the only factor that makes US producers competitive. Tim also pointed out that the fresh herb market is difficult to break in to. If one wants to cater to expensive restaurants, one must be able to get their product to their market quickly and cheaply. His advice on how to get started in the business included these steps.

Much discussion was directed at what herbs to grow. It was emphasized in the current volatile market this is a rapidly changing list. One area that was stressed as having potential was the cultivation of woodland plants such as wood grown ginseng, goldenseal, black cohosh, blue cohosh, wild yam and stone root. The selection of what herbs to grow in our bio-region and locality has as much to do with market potential as the adaptability of the particular herb to a grower’s soil and precipitation levels. On-farm research was stressed. Basic field trials were recommended looking at shade tolerance, fertility, use of mulch and cultivation techniques. The value of having access to a green-house and or cold frames for early plant starts was stressed as an important advantage.

The workshop provided a farm tour with demonstration of farm equipment that include a spading tiller, propane flamer for control of pre-emergent, emergent and post-emergent weeds, drip irrigation systems, root diggers and root washing machines.

Erica Renaud, Frontier’s farm research director, discussed their mission to conduct research and demonstrate sustainable techniques for growing medicinal herbs. She stressed the importance of using Permaculture planning in developing a growing operation. In the greenhouse she discussed the technique for treating, sprouting and transplanting of individual herbs. They typically start herbs in 2 to 10 trays (80 – 200 plugs/tray) and move them outside after they have grown 3 to 4 inches to develop weather hardiness before transplanting. She also discussed custom potting soil mixtures and organic fertilizers for specific herbs. There was also discussion on work with polyculture techniques and selection of various seeds and cultivars for growing quality herbs. She pointed out that Frontier has published a series of herb crop monographs describing research carried out at Frontier on various herb crops. Information on ordering the monographs is available through Frontier’s website: http://www.frontiercoop.com/

Frontier/Farm/GrowersInfo.html.

Kenal Wortberg presented information on the importance of quality assurance (QA) in proper processing of herbs including harvest, washing, and drying of herbs. Drying is a critical part of the process, because too much moisture left in the roots leads to mold, while excessively dry herbs lead to milling problems. The criteria used by Frontier for accepting herbs from buyers was based on look, smell and taste as well as chemical/biological analyses that include ash content (dirt), microbial contamination (E-coli), moisture determination and phytochemical constituent profiles using an instrumental technique of liquid chromatography (HPLC).

Edward Fletcher, Strategic Sourcing, Inc. Banner Elk, NC, an herb broker and grower discussed large scale production of Echinacea purpurea from green house starts to hundreds of acres under irrigation and black cloth mulching. He stressed the importance of ongoing crop monitoring techniques that included soil and plant analysis, analysis of chlorophyll levels, temperature, evapo-transpiration rate and soil moisture. His production was highly mechanized, but not organic. Harvesting and processing was carried out on a very large scale. His success story provides perspective on the competition facing the small farmer who doesn’t farm organically.

Barbara Lechtwart, Frontier’s buyer, talked about establishing a producer/buyer relationship. She described the process from submitting samples to commitment of minimum quantities of 100 to 500 lbs. Frontier requires that all of the incoming U.S. herbs be certified organic. She indicated that herbs they were interested in for that season included some less popular herbs such as Chickweed, Shepard’s Purse, False Unicorn, Black Cohosh, Blood Root and Goldenseal. In preparation of herbs for market she stressed the importance of processing the herbs to the buyer’s QC specification. Steps for marketing and finding buyers included checking out backgrounds of brokers/consultants, developing a relationship with buyers by showing strong interest and commitment as well as the ability to deliver the promised quantity of herbs. The importance of producer group marketing was stressed as the best way to sell products. Marketing coops were seen as the best avenue for successful competition in the current market!

Frontier’s Fall FarmWorks Workshop:

The Fall workshop occurred on October 5, 2001, and focused on large scale production systems, organic methods of disease and pest control, and the formation of herb cooperatives. On the second day various aspects of the advantages, benefits and problems of forming a cooperative were discussed by the presenters. A cooperative is owned, controlled and its benefits received by its owners. Cooperatives can provide a wide range of products and services to members. The people who own and finance the cooperative are those who use and control it. A cooperative's sole purpose is to provide and distribute benefits to members on the basis of their use. There are many categories and types of cooperatives including producer, consumer, employee-owned, and business co-ops or marketing, purchasing and service co-ops.

Twelve steps in a nutshell for organizing a cooperative were discussed. 1. An initial meeting outlining needs to be fulfilled by leadership. 2. Organization formed - USDA has a template for articles of incorporation and by laws that conform with state laws. 3. Raise seed money. 4. Conduct a feasibility study to discover who the customers are, what the product is, who will buy the product, will it be profitable - involve professionals such as accountants, attorneys and financial types. Take marketing information and financial analysis from the feasibility study and develop an operation plan - how will product be sourced, processed, what equipment is needed, a marketing plan and strategy, customer identification, management, board issues, who, how many, employees and so forth. 5. Develop a business plan - identify risk, competition and advantages. 6. Develop a prospectus, possibly sell shares of stock, identify all risks. 7. Membership drive - if you don't meet capital goals you may have to revise the business structure, extend the drive and if it goes bad refund a pro rata amount. 8. Annual Meeting - hold elections 9. Finance the project - approach a lender for the balance of equity if needed. 10. Hire a manager. 11. Project construction. 12. Begin operation.

Helpful hints included using committees because it takes a lot of time and work, utilize existing expertise and avoid burning out the core group. Allow sufficient time between meetings. All meetings should be held for a specific purpose with a meaningful agenda. Schedule and demand committee output laying out the purpose and time frame for the committee chair. Be realistic about capitalization with an equity base of 40 - 50%. Have an accurate and realistic business plan. Your state USDA Rural Development Office, Business and Cooperative Specialist can help.

A panel discussion by folks with particular coop experience was instructive. There are stumbling blocks to work through. If you start out as one person, part-time, working from your home you are likely to be spread so thin that jobs won't get accomplished. So, set up a structure right away so functions have a committee and tasks are delegated. Treat it as a business, not a way to help others doing the same thing; you need a business perspective. For example, margins being taken were too low. It is so easy to lose money. Don't get in to a financial hole that you have to climb out of. Cover expenses. Take a hard look at expectations. Look at value-added instead of crop-from-field-to-processor. Get money to get the next step for value-added product, a consumable product, almost if not right to the consumer. Diversify, for example, corn, wheat and oats go to a feed mill for pet food and animal feed. Decide how to pay out retained, preferred, earned stock, that is, how someone who wants out can get out. Work with people like the USDA to work out problems and pay attention to the needs of the market.

It can be tough to get a board of directors together at one time. These comments concerned a closed co-op. There was a wide diversity of interests among members so it was difficult to find a focus, to say in a few words "The co-op does ‘xyz’" in one statement.

Don't get ahead of yourselves. Think of it as a business but also a community organization designed to meet a community need. A traditional business goal is to make a profit so make sure you recognize that a cooperative is "business as unusual." Forget what we learned and learn what we've forgotten. There are two principles, constant expansion and constant education. Educate members. Show them what the benefits are. Don't expect more than 8% return. There is a communal economic tradition. Shift, reverse and change thinking. It is not just about profit, it is not private enterprise, it is a community organization. There is never a scarcity of needs; financial independence, working on a small farm, equal partners supporting one another. You may be more social worker than business person. Everyone must be involved in the discussion. Don't let a few make the decisions.

Our interest is marketing organic crops. We are small farmers in danger of being taken over by large, corporate farms. Our ethic is to take care of the land. Organic means it comes from the heart and soul of taking care of the land and not just without synthetic pesticides and herbicides. We are committed to making a difference in people's lives.

The two biggest needs in all members, perhaps for everyone attempting this kind of agricultural pursuit, is health insurance and retirement income. These are the biggest reasons people are leaving the farm or working a day job and farming instead of just farming.

In addition to a farm tour, research was a topic of discussion and some resources were presented. Here are a few of those:

The Organic Farm Research Foundation supporting research in organic agriculture and currently in a project with Frontier. Visit www.ofrf.org, OFRF, P.O. Box 440, Santa Cruz, CA 95601 831/426-6606 FAX 831-426-6670 email research@ofrf.org.

Appropriate Technology Transfer for Rural Areas the national sustainable agriculture information center funded by the USDA's Rural Business--Cooperative Service. Visit www.attra.org.

National Agroforestry Center in Lincoln, Nebraska suggested the following web search - www.nrcs.usda.gov/watershed, then select products and then select planning. Good stuff, including sustainable agriculture.

Information on a very successful regional coop can be found at www.federationsoutherncoop.com.

For more information about these workshops, contact Steve Moring or Rob Marshall.

The GPHGA has applied to the Kansas Rural Center to become a member of its Heartland Network. The KRC is a grass-roots non-profit organization that promotes the long-term health of the land and its people through research, education and advocacy. The KRC supports public policies that encourage family farming, stewardship of soil and water, and is committed to economically viable, environmentally sound and socially sustainable rural culture. The GPHGA shares KRC’s mission in advocating and supporting sustainable agriculture practices and farm based local economy. In October, GPHGA applied for (and received!) a $1000 heartland cluster grant to help with the association’s expenses in publishing its newsletter.

Rob and Nancy Marshall and Steve Moring have participated in KRC’s "Clean Water Farms Project" farm planning and environmental assessment. This was a two evening farm planning and assessment workshop. Another farm-based workshop of considerable value for beginning herb growers was the KRC’s "Planning to Grow" farm business planning workshop. This was the KRC’s first whole day workshop that is designed to help small farm enterprises develop business plans that include strategies for production, marketing and business and financial management. This workshop comes highly recommended (Steve attended) and should be one of the first steps in starting in the herb growing business. Rhonda Janke has attended the 8-week (met 4 hrs per week) version of this course, called "Nx Level Business Planning." The curriculum was developed specifically for farm planning with a SARE grant to the University of Nebraska, and is offered to groups in Kansas by the Kansas Rural Center. At the end of the 8 weeks, you have completed several homework assignments, have a working knowledge of your farm financial situation, legal issues, goal setting, and are well on your way to having your business plan written. More information on the KRC and its programs can be obtained from their website: www. kansasruralcenter.org or by writing to the KRC, 304 Pratt St. P.O. Box 133, Whiting, KS 66552-0133, phone 785–873-3431.

Producers of locally raised produce are constantly trying to increase farm profitability by defining marketing opportunities. Identifying consumer needs and wants and how much they are willing to pay for those needs and wants can be a challenge. The North Central Initiative for Small Farm Profitability has released an extensive survey of consumers buying habits and the amount they are willing to pay to support a local food system. The survey is posted on the NCISF web site. Go to www.farmprofitability.org and click on "Attracting Consumers with Locally Grown Products".

To create an awareness among consumers of the benefits of locally raised food and where to buy locally grown food, the Kansas Rural Center and the Kansas Center for Sustainable Agriculture and Alternative Crops (KCSAAC) are collaborating to develop a web-based directory of edible, locally raised foods. The web site is currently under development, and producers will be encouraged to enter information on what products they sell and where consumers can purchase the locally raised product. A media campaign to the general public will be made later in the spring, addressing the advantages of locally raised food and the web site as a tool to locate food raised in their area. Another document of interest is the "Kansas Family Farmer and Rancher Resources and Services Guide," recently published by KCSAAC. For more information visit the website www.ksre.ksu.edu/

KCSAAC/ or contact Jana Beckman, Coordinator of KCSAAC at jabeckma@oznet.ksu.edu.

Last year we offered seed for sale at $10 for your choice of small quantities of 6 different herbs to be grown at your farm or household garden. We wanted you to get comfortable growing herbs by trying something different to grow. We were interested in results from your trials, good or bad. Although some of you had difficulty with germination and animal grazing, we thought it was a successful program and want to offer seed again this year. Even if you had poor or no success, or if you did not participate last year, now is your chance to actually grow some herbs instead of just thinking about it. This year the seed we are offering is Licorice, Borage, Milk Thistle, Burdock, St. Johnswort, Mullein, Stinging Nettle, Yarrow, Feverfew, White Sage and Echinacea purpurea. Choose 6 herbs you would like to try and collect data on them for us to compile and share with those in the association. If you haven’t sent in your data from last year, it’s not too late! Send $10 (check made out to KSU) to Rhonda Janke, 2021 Throckmorton, HFFR, Kansas State University, Manhattan, KS 66506. We will send out seed, growing instructions, and data sheets to you as soon as we receive your information. If you have questions, call Jeanie DeArmond, Herb Project Research Assistant, at 785-532-3477.

The herb market has survived September 11 in better condition than other sectors of our economy. The initial shock put many of our plans for moving forward along with our personal and professional endeavors temporarily on hold. The herb business appears to have reacted in this manner. Despite the uncertainty and rapid changes in the political situation on the international front, most of us are getting on with life and looking forward to building a better life for ourselves, families and communities. In talking with friends in the industry, the business is looking optimistic. Herb distributors are getting orders and the price of Echinacea angustifolia is climbing. Market surveys, which lag behind 18 months, show that the sales of herbal supplements in the U.S. gained about 1% in 2000 over the previous year. While food, drug and mass market retailers of herbal products (20% of market) experienced a 9% decline, natural food/health food stores (30% of market) sales increased 3% and health practitioners (7% of market) sales increased 6% (HerbalGram No. 53, 2001). In response to a glut of herbs on the market in 1999, herb crop production has fallen off in the last two years. Those who wanted quick profits are disillusioned and are getting out of the market. In a cyclic market such as herb production we should be able to project a good market with in the next three years. Now is the time to plan for a future in growing medicinal herbs.

March 8, 2002 Great Plains Herb Growers Association Board Meeting: Friday 6:30 pm at Rob and Nancy Marshall’s home, 908 West 20^th Terrace, Lawrence, KS. Phone: 785-841-9241 Herb Association members are welcome to attend.

March 9, 2002 GPHGA Annual Meeting and Herb Grower’s Workshop: Cultivation of Medicinal Herbs- Planning herb production, spring planting from seed to greenhouse starts. The Annual Meeting will be held from 9 a.m. to 11 am. at Vajra Herb Farm 14370 54^th St. Oskaloosa, KS 66066. Membership dues of $25 will be collected at the door. The Workshop will begin at 11: 30 am and run through 5 pm. Workshop registration: $50, includes lunch. Workshop limited to first 35 registrants. Contact Steve Moring at 785-863-4102 information.

May 16-19, 2002 Medicinal Plants with Steven Foster, (camping only) Price $290. Contact Elixir Farm at www.elixirfarm.com.

Sept. 21-22, 2002 Prairie Festival 2002, Salina, KS.

Contact the Land Institute: www.landinstitute.org

Wanted: For the newsletter, articles, news, commentary and classified adds from GPHGA members. We can edit what you write, so send in anything. We can also interview you on the phone. In addition, anyone interested in helping with editing or layout, your help would be most appreciated. We can do the final layout, copying, and mailing. Contact Steve Moring smoring@ruralnet1.com 785/863-9290 or Rob Marshall rmarshall@sunflower.com 785/841-9241.

Land Consultant: Steve Moring Alternative agriculture planning and land development: specializing in the cultivation of medicinal herbs, prairie restoration, permaculture design and feng shui landscaping. smorning@ruralnet1.com 785-863-4102.

Wild Things - Native landscape design and maintenance. Jeanie DeArmond has experience in design and maintenance, horticulture therapy, and herb research. Spring and summer workshops available on a variety of subjects. Contact Jeanie at 785-587-8778, or jcdear@ksu.edu.

Herbal Analysis: Laboratory services for quality analysis of medicinal herb crops, bulk herbs and formulated products. Product standardization of active constituents or marker compounds. Contact Botanica Analytica Research Laboratories. L.L.C. 908 West 20^th Terrace, Lawrence, KS 66046. 785-841-9241

Medicinal Herbalist: Classes, workshops, herbal education for yourself or groups. Individual consultations also available. Contact Lynn Johnson at Gardens of Delight in Parkville, MO 816-505-1032 or lynnj@blit-it.net

New Book Available: "The Village Herbalist." Written by Nancy and Michael Phillips, and published by Chelsea Green (publishers of Lynn Byczynski’s "The Flower Farmer" and Eliot Coleman’s books), this new book offers practical information and profiles of several community herbalists, including Rico Cech, Rosemary Gladstar (also authors, and frequent speakers at Frontier Herb Days.). See www.HerbsAndApples.com for more information about the book, and links to other interesting websites.

Name(s): ___________________ Phone: ____________________

Address: ___________________ E-mail/website: ______________

_________________________________ Additional contribution $ ________

Farm or Company Name: __________________________________

Please make check payable to GPHGA and return with completed form to: Rhonda Janke, 2021 Throckmorton Hall,

Dept. of Horticulture, Forestry and Recreation Resources, Kansas State University, Manhattan, KS 66506

Suggestions for topics for the next newsletter?

Suggestions for activities for the association?