ENHANCING SMALL FARM PROFITABILITY THROUGH CONTROLLED ENVIRONMENT PRODUCTION OF GOLDENSEAL

The goal of this project is to determine the technical and financial feasibility of using an indoor controlled environment production system to produce Hydrastis canadensis (goldenseal) for the commercial market. Assuming feasibility milestones are met, agoldenseal production system will have been developed that is not only environmentally sustainable but also profitable for small farmers that choose to include the system in their farm plan. Ultimately enhancing small farm profitability and diversity, providing goldenseal consumers with a more reliable, eco-friendly supply, and decreasingpressure on native goldenseal populations through a reduction in the need for wild collected raw material to meet market demand.Specifically, Phase I of this projectwill:Determine preliminary yield estimates of the CE system and other production data through two small pilot production cycles.Design and estimate facility and equipment (F&E) cost for a CE production unit capable of producing 1,000 pounds of USDA National Organic Program (NOP) certified dried goldenseal root/rhizome per year. Evaluate costs and yield to determine a profitable selling price for growers.Assess potential grower interest in the system.Survey potential buyers to determine system/price acceptability.Phase I feasibility will be deemed to have been demonstrated if the pilot production cycle indicates at least 2X mass increase, F&E costs are under $400,000 and a selling price determination that provides at least a 20% net profit to the grower. Phase II would seek to optimize the system to produce at least 4X growth per cycle, establish propagation of high-quality planting stock, and develop a production manual and training protocol for the system. Phase III would initiate production in one full scale unit under a production contract offer from a major goldenseal user, recruit additional growers to adopt the system, and provide training and contract procurement assistance to all interested growers.