In the past, farmers who wanted to generate more income would consider growing additional acres or raising additional head of livestock. Today, many farmers are considering “adding value” to their production.

They add value by processing, packaging or marketing an agricultural commodity to make it worth more. Examples of value-added enterprises include a tomato grower who starts a salsa business, a farm family that begins an entertainment farming business, a beekeeper who manufactures honey jelly and a poultry producer who composts farm waste and sells a bagged, organic fertilizer.

But farmers must be careful. About 75 percent of new small businesses fail within their first year.

So you have to carefully evaluate value-added agricultural enterprises. Develop a thorough production plan, devise a marketing plan and conduct a feasibility study.

Farmers often find themselves better prepared for the production aspect than the planning and evaluation phases. That’s why the Agricultural Development Center (ADC) has been created.

The ADC conducts market research, develops financial plans, devises production plans and conducts feasibility studies. ADC specialists assist Tennessee farmers with the evaluation and development of value-added agricultural enterprises and products.

Contact your local county Agricultural Extension Service office , visit the Center for Profitable Agriculture (CPA) Web site at <http://cpa.utk.edu/default_1.htm> or e-mail the Center at cpa@utk.edu