TOPIC: Growing for a Business.

This may seem like other forums on here such as Growing for a Living.
I have been tossing the idea around of setting up a business for my ginseng growing operation. I know it will not be profitable for many years until a harvest but it will reduce my taxable income from other business. I believe some here may have business for their operations and am wondering about and problems they have had regarding the IRS. I feel many others have had to carry losses for many years until harvest. What are your thoughts on beginning this business.
Thanks

I encourage it and I wish you the best. Your results will vary depending on the following:
Seed Quality
Soil Quality
Canopy %
Climate/weather
Deer and other animals destroying your plants/roots
Insect damage - Slugs, Snails etc
Disease
Weeds
Poachers
Market Price
Labor
Ginseng Laws
Planting techniques
Spraying verses non-spraying plants for disease and insects
To name a few

Lots to take into consideration.
Worst case scenario is about 10% left after 10 years. However this estimate could be even worse depending, or much greater depending on the many factors I have mentioned above.

Good luck,
Latt

Whitewolf,
Latt has focused on the growing side and I'll mentioned some things that are sure to be brought up when you sit down with your Tax Consultant. If you have purchased any land or buildings for this business, they will probably be major long term tax write offs . If you happen to be going \"large scale\" there will probably be some equipment to hold as yearly deductions. Try to make all of them \"long term write offs. I don't know what is left of the Green Belt program where you live, but it could offer you some reductions on yearly land taxes if they still offer it. Be absolutely sure that you keep receipts and good records for everything that you purchase if you get called in for an audit. Fire or hazard insurance might be a good thing to consider as well. Good luck with your project.
Hugh

Hugh, great additional info you have brought up for WVwhitewolf or anyone considering this endeavor for that matter.
Thanks,
Latt

My current Investment is 70LB of seed. Currently 30 lbs wild simulated and the remainder is being planted in raised beds. I have set up these beds no longer than 125 ft that run up and down a gentle slope 5%-15% with a road running down the middle to ensure no row is longer than 125ft from the road to allow for spraying. I just upgraded my 37hp Kubota to a new LS5020 with 47hp, 6 ft CCM tiller, 2 bottom plow, large row builder and shaper pan, Stihl (MS362, 044, 036, and a Kombi 130), and Yamaha Grizzly. So my investment is a great deal. I hope to plant 60 lbs next year and another 40 the following year. I do not know if I will plant any more 3 years from now. This will put me at 170 lbs planted in 4 years and I hope to harvest when I turn 40 in 11 Years. I would like to think I will harvest 3000lbs dry at that point in time and sell for 250 a lb. I will be selling seeds if it all works out by year 5 to generate income.

I appreciate you comments:
I have set up my growers License and have begun a forestry management plan with the state which reduces my property tax to a farming level to save me 600 per year or 50% of the original. I currently am looking into insurance with my broker who is private in her dealing. She carries all my insurance including business outside of my ginseng grow operation. I have just ordered 3 Bushnell Trophy Cam Max to set up on on property line and one by the ginseng road. My neighbor is a farmer and he has informed me he had a trespasser recently bow hunting. I may need to pay a visit if he shows up on my cameras. I am not sure how I should approach this as you cannot miss the raised beds with oat straw on them.

More to come. I need to get some pics uploaded. It sure is alot of work but fun.
Thanks Scott

WVwhitewolf,

After reading your response and seeing that you are quite serious in your investment and getting pretty far along with your plans I would offer one more thing that I think you should be preparing for right now. Because of the size and intensity of your proposed operation it is obvious that you are going to be needing some help. Hiring workers can really be a serious commitment with all the regulations that are required by the Federal Government. BE ABSOLUTELY SURE THAT YOU GET EXPERT ADVICE ON ALL THE THINGS YOU WILL NEED TO DO TO MEET THESE REQUIREMENTS. Don't let yourself get entangled in a legal nightmare over something like this. It sounds like you have a good level business head and I wish you the best of luck again as things move along.
Hugh

The one thing I would suggest you do is get in touch with your cooperative extension ag folks. I\"m sure they have some information which will be helpful for you in setting up an ag business.

Also, make friends with your local wildlife officers and ginseng dealers now.

Beyond that, I would suggest you plan on a selective harvest rather than a complete harvest. I know that's not always possible, but it can be done and if you wait at least 10 years or so and only harvest the larger roots and handle them extremely well, I\"m sure you will find a market for them.

Good advice Hugh and BCastle.

Wow WVwhitewolf, you have taken it to the next level and then some. Congratulations on going big. Can't wait to follow your progress over the years to come. As far as people knowing about it, is it possible to do the planting and the spreading of the straw on your own? Then hire some people to help harvest when the time comes years down the road. The less people that know about it the better.

Also I wonder if there is a dye that could be sprayed on the straw to make it blend in with the forest floor? A food grade dye that would dye the straw but not dye the soil or roots. Just a thought. I see where the state and professional landscapers shoot grass seed mixed in a shredded straw that is dyed green. I wonder if this is something that would work if the shredded dyed straw was shot out over your planted beds????
Good luck,
Latt

I hope that no one objects to a couple of questions on this topic, considering that although I plant Ginseng seeds in the wild, I don't raise Ginseng commercially! Hopefully, the answers will help me and others in the future, if we decide to raise Ginseng as a main crop for profit.

I know that Straw is put down when planting Grass and other seeds to not only protect the seeds from birds and other critters but also the Straw holds moisture in the ground as well as it generates heat or warmth needed for germination as the Straw decomposes. My question is, since the Ginseng seeds are most probably planted 1 inch deep in the raised Ginseng Beds and will not germinate until next Spring, why the use of Oat Straw on the raised Ginseng Beds? Would not leaves be just as beneficial as cover for the seed Beds? Is the Oat Straw being used for it's nutrients instead of just for cover? If the Oat Straw is no more beneficial than leaves, then why use it and put a Red Marker Flag on where your' Ginseng Beds are located? In my thinking, raised Ginseng Beds stand out on their own and if the Oat Straw has no more benefit to the germination of the Ginseng seeds, then I would not use it and place a Red Marker Flag on my' Ginseng Beds!


Frank

Frank,
The pros of straw:
Helps erosion,Doesn't blow around,allows seedlings to push upwards more easily due to it's texture, conserves moisture for those seed that didn't make it under soil so they don't dry out
The cons:
It sticks out like a sore you know what and says \"Woo Hooo, over here! I've got something really fishy going on in these woods!\"

There really is no greater benefit other than it doesn't mat down like some larger leaves can do which will sometimes not allow seedlings to emerge but, it is a benefit. I myself, use it. After completely clearing an area of leaves and putting them out of the way, it seems easier to use the straw. It's faster than raking them back on a tarp and pulling them up a hill. It takes about 40-50 to do a half acre. If a person were doing beds here or there then I would just use the leaves I think but with a large area I usually wind up with a piles of leaves filled with rock,branches and dirt. We get some strong winds in Winter which blows the leaves all over, you can put an excessive amount to make sure you have coverage but then you risk them matting.

Hillhopper