The Tennessee Agricultural Extension Service is offering a new program to help launch small business ventures in agriculture and natural resources. The Agricultural Development Center has been established at U T to help farmers and others develop business ideas into workable,
income-producing realities, says Dr. Ray Humberd, acting director.

Humberd, associate dean of the Extension Service, was charged with developing the center based on recommendations from the Governor's Council on Agriculture and Forestry, an initiative to get input from people across the state and develop strategies to strengthen the state's agricultural economy.

Agriculture accounts for some 20 percent of all economic activity in he state. However, cash receipts to Tennessee farmers have increased only 13 percent in the past 10 years, while farmers in neighboring states have seen growth of more than 30 percent.

That's where the Agricultural Development Center comes in. Its purpose is to make available to Tennessee farm-related business people the vast resources of the U T Institute of Agriculture. Specifically, the center's mission is "to increase value to the Tennessee economy through expanded and improved processing and marketing of Tennessee agricultural, aquacultural, and forest products."

Most new jobs in this country are created by small businesses, Humberd explained. "Unfortunately, a large percentage of those ventures fail within the first three or four years. One of our goals is to have a positive impact on that rate, either from the standpoint of helping a business succeed after it is underway, or in providing information to help the owner make wise decisions and avoid mistakes."

The center focuses on value-added opportunities for Tennessee agriculture and natural resources by providing educational programs and technical support for the following:

• management
• marketing
• engineering
• food processing and testing
• wood products
• business analysis
• distribution

"Opportunity for income improvement exists not only in production agriculture," Humberd said, "but also through adding value to agricultural products. Value can be added through processing, packaging and marketing products developed from agricultural sources. For instance, some of our Extension food scientists have helped an entrepreneur develop a fresh salsa product to make use of tomatoes that he might not be able to sell otherwise. That's the sort of project the center might undertake." Other income opportunities may not be directly related to production agriculture, but make good use of available resources. These include tourism, fee hunting, farm vacations, other recreational activities, and home-based industries.

"Our faculty have developed some primary and secondary criteria for choosing a project that the center can support," Humberd said. "A project must relate to Tennessee agriculture, natural resources, or aquaculture. It has to add value. Obviously, it has to be something we have the expertise and resources to do. We want to increase Tennessee jobs, use Tennessee resources, and improve agriculture."

The center brings to fruition an idea that has been developing for quite some time, said Dr. Billy G. Hicks, dean of the U T Agricultural Extension Service. "We have talked a great deal over the years about multi-disciplinary approaches in addressing producer production and marketing considerations," Hicks said. "The Agricultural Development center will bring about an integrated approach to address the many issues involved in producing and marketing products. In the past, we have given excellent answers to specific questions from our clientele. However, a part of a question may have gone unanswered because no one had the expertise to deal with that aspect, or because we died not appreciate the entire scope of the task facing the producer. The center concept will allow us to provide a coordinated and comprehensive response to complex issues a producer must face upon entering a product in the market place."

The only limit to the possibilities, Humberd said, is time. No new money has gone to fund the center's work. "We are reallocating resources within the Extension Service," Humberd said.

Although the university system and the Tennessee Higher Education commission have asked for state funding, none has been appropriated. That means existing funds have been reshuffled to hire a marketing specialist and a feasibility specialist. Other Extension faculty will work with the center on a joint-appointment basis.

Beginning the center's work without additional funds has been possible only because some similar work was already in progress, Humberd explained. "Dr. Bill Morris already works with folks who process fruits and vegetables. Dr. Curtis Melton already works with meat companies. We're just putting together a team effort so that we can make a recommendation in a unified effort to individuals who have a idea instead of giving it to them piecemeal."

"When fully staffed," Hicks said, "the center will allow the Extension Service to focus its considerable resources on the full range of issues and concerns a producer may have in getting a product ready for and in the hands of the ultimate consumer."

The center is counting on strong cooperation with the Tennessee Department of Agriculture, Humberd said, "Their marketing division has responsibilities for promoting programs with developing companies and entrepreneurs, "he explained. "Once we have a project that is ready to market, the TDA will help.

"We'll also collaborate with small business development centers, the Tennessee Department of Economic and Community Development, and the Tennessee Department of Tourism Development. Some of the farm opportunities may relate to recreation type farming-horseback riding trails and agri-tourism situations that will offer opportunities for tourists to have an experience on a Tennessee farm.

"Other state agencies have expertise that we don't. We're not attempting to duplicate any program," he emphasized. "We want to complement them. No one organization has the resources to do everything, so we need to work together." That includes internal cooperation, he added. Center Extension personnel will collaborate with faculty in the U T Agricultural Experiment Station to make use of their research and subject-matter expertise.