Starting a Successful Hydroponic Business or “The Good, The Bad, and the Real”

Natalie B. Parkell, UF/IFAS & former owner/operator of Vertical Horizon Farm

hy-dro-pon-ics From the Greek hydro meaning “water” and ponos meaning “working” Evidence of hydroponics historically from the Hanging Gardens of Babylon (600 B.C.) to the Aztecs in the 10th/11th century to the Chinese in the 13th century.

WHY GO HYDRO? • Space saving (i.e. small acreage, limited urban areas, indoor/warehouse space, rooftops, etc.) • Water savings approximately 80-95% over traditional field farming • No soil-borne problems, i.e. diseases, insects (nematodes), poor quality, lack of nutritive value • Fewer chemical inputs, such as pesticides, herbicides or fungicides • Automatic feeding and environmental controls • No weeding • Plants generally grow up to 30% faster rate • COOL FACTOR!

Overview of Hydroponic Systems

GET GROWING!

Soilless Media VS. Water Culture

SYSTEMS – SOILLESS MEDIA OPTIONS • Coco coir/coco fiber/coco pith: By product of the palm industry (Indonesia), different grades (coarse to fine), available in many configurations, able to combined with other media, high water retention, widely available, suitable for organic production • Perlite: Sterile media from super-heated volcanic rock, multiple grades/sizes for horticultural use, great for aeration/drainage • Vermiculite: Super-heated, mined mineral, resembles “fool’s gold”, absorbent, able to be combined with other media, multiple grades • Rockwool: $$$$$, worldwide industry standard, spun basalt fibers similar in texture to fiberglass, sterile, manufactured to almost any size/shape/configuration, excellent water retention • Sphagnum peat moss: Natural product harvested from peat bogs, somewhat “threatened” supply, absorbent material, widely used throughout industry • Composted pine bark: By product of pine forestry, NOT landscape mulch!, good availability regionally in northern Florida • MANY OTHERS: Sand, rice hulls, p0lystyrene packing peanuts, clay pellets, sawdust, gravel, peanut hulls…

SYSTEMS – VERTICAL TOWERS Advantages: • Efficient use of space • Gravity feeding • System is more “forgiving” in the event of a power failure (due to media) • Tend crops while standing upright! Disadvantages: • Initial up-front investment • Storage • Bottom plants can be shaded out or not receive as much fertigation as top pots • Not appropriate for large, bushing, vining crops (i.e. cucumbers, indeterminate tomatoes, cabbage, etc.) – think small root crops!

SYSTEMS – LAY FLAT BAG/SLAB Advantages: • Greenhouse standard, but easily adaptable for outdoor systems • Suitable for MANY crops, including those requiring more management (i.e. tomatoes) • Easy to configure in any layout • Capable of multiple cropping within a single season, if free of disease and pests Disadvantages: • Challenge to collect “leachate” or excess water/nutrient runoff • Media must be replaced every 1-2 cropping systems & bags cannot be refilled

SYSTEMS – GROUND POTS/BAGS Advantages: • Great for crops with larger roots (i.e. beets, turnips, carrots, potatoes) • Easy to configure in any layout • Can use any media or combination – not pre-filled Disadvantages: • Labor required to fill each bag with media • Disinfection & storage between seasons • Requires a good deal of spacing to accommodate larger plants, such as broccoli, cauliflower, or collards

SYSTEMS – RESERVOIR CONTAINERS Advantages: • Reservoir space within each container holds water and nutrients in reserve • Easy to configure in any layout • Can use any media or combination – not pre-filled • Excellent for backyard systems (Earthbox) Disadvantages: • Initial cost is higher than other containers • Storage during off-season • Traditional media – perlite – used predominantly indoors

SYSTEMS – GROUND TROUGHS Advantages: • One of the most cost-effective systems available • Widely adaptable to a range of crops • More similar to traditional row cropping, thus easier transition for many farmers Disadvantages: • Requirement of acreage enough for in-ground installation and use of protected culture • Disease may infect an entire trough

SYSTEMS – WATER CULTURE • Purists refer to these types of systems as “pure” hydroponics as they do not use soilless media at all • Typically self-contained systems which are recirculated or filtered and reused • Plant roots suspended over nutrient solution, either fully or partially submerged • Solution may or may not be aerated • Constant monitoring will be necessary to maintain proper balance of nutrients and pH • Almost always in conjunction with protected structures (shade, greenhouse, etc.)

SYSTEMS – Nutrient Film Technique (NFT) Advantages: • Thin film of nutrient solution around the root zone allows for plants to have constant access to food! • Excellent for leafy green varieties • Aeration around root zone • No media = CLEAN system Disadvantages: • Loss of power may result in loss of entire crop • Disease very prevalent at high temperatures – common in Florida

SYSTEMS – FLOAT or POOLS Advantages: • Great for beginners & children • No requirement of bubblers/ oxygenation, power source • May be situated indoors or outdoors • Multiple pools can be scheduled for continuous harvest Disadvantages: • Not appropriate for fruiting crops (i.e. tomatoes, peppers, etc.) • Not recirculated, so solution must be changed manually after period of time

SYSTEMS – AEROPONICS Advantages: • Very rapid plant growth • No media at the root zone – excellent aeration • Less nutrients and water used overall

Disadvantages:

• $$$$$

• Dependent upon pumps, misters, timers – no power=no crop • Best for more advanced practitioners as there is no “forgiveness” for errors • Cannot be maintained outdoors Diagram credit – homehydrosystems.com

Consideration of Protected Agriculture aphids stinkbugs whiteflies thrips mites mealybugs powdery mildew

leaf spot bacterial rot fusarium tomato yellow leaf curl virus

* Disease and

Pest Management takes a broad, strategic approach, including physical exclusion. Choices in protective structures vary widely in type and cost!

Consideration of Protected Agriculture • Temperatures in Florida can range widely from season to season. Shade technologies can extend the growing season early in the fall and late into the spring/summer. • Structures can accommodate any type of covering.

WELCOME TO SUMMER!

Consideration of Protected Agriculture

• Structures which hold shade covering during the heat also can hold protective coverings for the cold (adjustable sidewalls, frost cloth, portable heaters, climate controls, etc.) • Can be manual or automated, which does vary the cost

Marketing your Hydroponic Business • The question you must ask yourself is:

WHO ARE MY CUSTOMERS AND WHAT DO THEY WANT?

• THE MANTRA: Do not sell what you grow, but rather grow what you can sell!

Marketing your Hydroponic Business Direct Marketing • Sales directly to the consumer • Time required for packaging, transport and face-to-face sales • Higher retail profit • Better for small operations who face the most obstacles to markets

Wholesale Marketing • Intermediaries collect, assemble, and distribute to retailers • Time until sale not a factor, but product may not reach consumer as quickly • Pricing generally HALF of retail • Better for larger, mono-crop farms who cannot sell larger quantities retail

Marketing your Hydroponic Business Direct Marketing • Farmer’s or green markets • Roadside stands • U-pick operations • Restaurant sales • Specialty grocery stores • On-farm outlet • CSA (Community Supported Agriculture) or subscription farming

Points to Ponder… • When advertising your product or farm, “hydroponic” is NOT “organic”. You may not legally use the term “organic” unless you have undergone certification. “All natural”, “locally grown”, and “no toxic chemicals” are terms which are not regulated and are excellent ways of describing small farm operations. • A grower’s permit is required (free and available from county UF/IFAS Extension agents). This applies for agricultural products in their raw, uncut, unprocessed form. For example, a cucumber cut from a plant and sold to a customer would only require a grower’s permit to sell. A cucumber which was sliced and pickled would require food service licensing and permits. KNOW YOUR REGULATIONS!!

Points to Ponder… • The Food Safety Modernization Act was passed by Congress in 2011. It is the law of the land, and even small growers are not free from food safety responsibilities on their farms. If you intend to grow food for humans to eat, you WILL implement policies and procedures in your operation which demonstrate Good Agricultural Practices (GAPs). • For many people, there is a steep learning curve to farming in general, let alone hydroponic growing. A traditional farming background may be helpful to: select appropriate cultivars to grow, identify plant pathologies such as insects or disease, or manage the day-to-day business of farming. However, there are many new skills to learn if you are a “first-time” grower! If you are not “ready to learn” with an open mind, you may not experience immediate success.

Points to Ponder… • You will wear MANY HATS. A farmer is equal parts grower and business person and accountant and marketing guru and salesperson and GAMBLER. There is a great deal of risk involved in farming in general, in spite of the advantages that may be gained with hydroponics and protected agriculture. If you are not prepared to assume all these roles, be prepared to hire people who can.

THE JUICY STUFF… or “What the salespeople won’t tell you!

The Reality Show MYTH

REALITY

• You can grow 5 lbs. of • Salespeople will often make strawberries per plant in our unrealistic claims to sell a system! product. Always substantiate statistics from a third-party source (UF/IFAS).

The Reality Show MYTH • You can become a millionaire by farming hydroponically!

REALITY • Unless you started out as a millionaire, you probably won’t live long enough to see that type of return on your investment. Consult an accountant or business professional BEFORE you buy!

The Reality Show MYTH • You will sell 100% of the crops you choose to grow.

REALITY • Disease, insects, fluctuating markets, quirky customers, unforeseen disasters and more WILL disrupt your business plans!

The Reality Show MYTH • Hydroponic farming is easier than traditional farming.

REALITY • O.K.~ so maybe you won’t have to weed or hoe or plow. But you will have Mother Nature to contend with. Florida can be hot and humid. Manual labor is not for the feeble. A farmer’s work is never done!

The Reality Show MYTH • HARD WORK = SUCCESS IN THE FARM BUSINESS.

REALITY

• There are many reasons why a business may fail to thrive. Lack of business planning, including sufficient capital [$$$$$] is a primary reason of failure. • You may not understand your market/customer demands or desires and cannot serve those demands. • You may lack the ability to manage crop production deadlines (and therefore do not have the products you have contracted for sale). • You may not have enough diversification within your business operation. “Plan A” is good to have. “Plan B” is better. “Plan C” is your parachute! • You may not possess enough attention to details. This job demands it.

The Reality Show MYTH • I am ready to quit my day job and become a farmer! I have my 40 acres and a mule. Just let me get to it. I’M READY!!!

REALITY • Nothing will take the place of research and patient learning. Read, study, experiment, START SMALL, accept failures and false starts, learn from others, and like any great student: • DO YOUR HOMEWORK.

RESOURCES you can use… • UF/IFAS Virtual Field Day: 20 Hydroponic Modules at http://vfd.ifas.ufl.edu • Florida Small Farms and Alternative Enterprises http://smallfarms.ifas.ufl.edu

• The Small Farms Academy at Suwannee Valley Agricultural Extension Center (SVAEC) in Live Oak http://svaec.ifas.ufl.edu/sfa/ or http://smallfarmsacademy.Eventbrite.com

Happy Growing!!