They Make Agroforestry Pay

They Make Agroforestry Pay CROPS New Techniques Propagate has been turning fields into multi-use forests since 2017 with a 3-part program that pays off for landowners sooner and later The program addresses three key barriers to agroforestry according to Propagate co-founder Ethan Steinberg He defines them as a lack of awareness of benefits a lack of technical know-how for on-farm planning and implementation and a lack of capital to cover initial startup costs “Our first step is to talk to the landowner and identify acres suitable for different tree crops and species ” says Steinberg “We want to understand the farm operation and what the farmer wants 10 to 20 years down the line ” Over the past seven years the company has applied the concept to more than 30 000 acres of agroforestry as active advisors In addition Propagate Ventures actively manages 2 250 acres through regional hubs in New York and Kentucky Propagate’s Overyield IT platform helps farmers understand what trees or shrubs would best fit their fields how much the transition would cost and what labor would be required Once a plan has been developed options include the landowner self-financing the transition or Propagate arranging for a third-party lease of the land at competitive rates If the landowner decides to self-finance the company will locate and apply for funding “If the owner leases the land for trees no further investment is needed on their part ” says Steinberg “However if they want to own the system the capital requirement can be pretty big from $2 000 to $10 000 per acre depending on species and the genetics of the seedlings ” In the land lease case the leaseholder owns the timber rights and any interim products such as nuts In addition to lease payments the landowner may also receive a fee for managing the trees as they grow and mature At the same time they can put the land between rows of trees to use for cropping or grazing If desired the landowner has the option to waive the lease rate in exchange for a percentage of the revenue down the line “Typically we see 20-year leases with two to four renewals expected ” says Steinberg “The lease rate is based on market conditions with buyouts available to the landowner at any point in time ” With a plan and financing in place Propagate provides the expertise and support to implement a tree-planting plan “We work as active participants with in-house equipment and personnel as well as with a network of consultants ” says Steinberg “We’ve done cost share with farmers who want to own the trees and helped them find the trees and manage inputs We help with the transition the best we can ” Propagate started in New York state Targeted states include those east of the 98th meridian the line running just west of the Minnesota border and along the eastern edge of the Great Plains The largest transition put in place by Propagate to date involves Hill Farms in Ohio and Kentucky What started with a 130-acre pilot project quickly scaled up to more than 1 800 acres operated under a lease structure The farm plan called for 70 percent in chestnut and hay production 8 percent devoted to in-field biodiversity such as pollinator plants and 22 percent in riparian restoration By 2024 180 000 chestnut trees had been planted making it the largest chestnut operation in the U S Black locust trees for eventual timber production were also planted Owner Keavin Hill collects lease payments and management fees under a 20-year lease He also produces hay in the alleys between the rows of chestnuts When the young trees grow past browse height Hill plans to use the land for managed grazing in winter and early spring In Kentucky Propagate worked with a pasture egg producer to develop a mix of trees and shrubs for hen pastures Over 2 years separate fields were planted to chestnuts and elderberries with a mix of persimmons mulberries and willows in wetter areas Propagate provided Ben Lennon a New York landowner with a turnkey planting of nearly 6 000 black locusts in multiple stands A 9 4 percent internal rate of return was projected for the farm Everything was included from suitability analysis through site preparation installation and post-install management support Steinberg says other pilot projects are underway He notes that 10 acres is the smallest parcel he sees as viable “Typically we like to see larger acreages for scale and viability ” he says “As you get larger there’s more potential for value added ” Contact: FARM SHOW Followup Propagate Ventures www propagateag com

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