1	Adding Value to Tennessee Agriculture:
2	Brief History of Land Grant System 1862 Morrill Act Granted Land for A&M Schools 1887 Hatch Act Funded Ag Experiment Stations 1890 2^nd Morrill Act (more land . . . more schools) 1914 Smith-Lever Act Funded Extension Service 1920s to 1970s Extension is Production Driven 1980s to 1990s Extension emphasizes management 1990s to 2000 Extension enters “value-added” arena
3	History of CPA
4	Mission To increase the value and profitability of Tennessee’s food and fiber economy through new, expanded and improved processing and marketing of agricultural commodities and farm resources.
5	Our programs are focused on:
6	Definition of Value-added Commodity or product that has been changed, produced, or segregated such that a greater portion of the revenue derived from the value-added activity accrues to the producer.
7	Farm Value of Food Dollar
8	Value-added Examples Commodity Soybeans Milk Strawberries Composted Farm Wastes Tomatoes/Peppers Farm Timber Value-added Product Biodiesel Fuel Bottled Milk/Cheese/ Ice Cream Strawberry Preserves Packaged Soil Conditioner Hot Sauce/Salsa Agri-Tourism/ Agritainment Flooring & Moulding
9	Our People
10	Executive Council
11	Need for CPA Services No guaranteed success 75% of small businesses fail within 1 year Only 13% make it beyond 5 years Unique set of resources contribute to success
12	Team Approach
13	Activities Farmer-Initiated Projects Educational Resources Market Development Surveys Proactive Project Leadership External Funding Cooperating Partners
14	Farmer-Initiated Projects Procedure Producer submits application Application reviewed Accepted project assigned to staff for completion
15	Project Selection Criteria Primary Criteria Relationship to TN agriculture, aquaculture or forest products Value-added product or service Produced in TN Scope within capabilities and resources of CPA
16	Project Selection Criteria Secondary Criteria Adequate information supplied to evaluate proposal Judged to be technically feasible Adequate financial/technical resources available Use TN resources Uniqueness of product Use of CPA resources
17	Primary Role of CPA
18	Food and Non-food Projects
19	Types of Non-food Projects
20	Types of Food Projects
21	Example Project: R-GROW Product Formulation Packaging Test Marketing Cost Analysis Market Development Pricing Marketing
22	Other Project Examples
23	Educational Resources Formal Publications Written by Extension specialists for general distribution Most peer-reviewed Information Sheets Address specific issues of developing a value-added enterprise Teaching tools Presentations Other
24	Educational Resources Audiences Producers Extension agents Other interested groups Available at http://cpa.utk.edu Extension offices Center for Profitable Agriculture
25	Market Development Surveys Survey of specific market/industry participants Purpose To collect information needed to develop marketing strategies Methods Telephone Direct mail Personal interview
26	Proactive Project Leadership 2 main types of projects Study of opportunities or potential in specific markets Case studies of existing enterprises Purposes Identify areas of unmet demand Gain market information Provide examples of experiences of other producers
27	External Funding Received more than $800,000 in external funds Grants Contracts Used for market development and proactive leadership activities Examples Agri-Tourism Initiative State-wide Journey of Sustainable Success Case Studies
28	Cooperating Partners Partners in cooperative efforts Farm Bureau Department of Agriculture Rural Development Agency Commodity Groups Other Agencies Purpose of partnerships To better enable us to accomplish our mission
29	Progress 82 projects completed in 48 counties 6 projects in progress 7 projects under review
30	Progress Over 80 project reports 15 peer-reviewed publications 75 information sheets 23 market development surveys
31	New Terms for Some Farmers Feasibility Niche marketing Market plan Target market Unique combinations or resources Start-up costs Processing costs Variable costs Fixed Costs Break-even sales/price Regulations Upscaling Outsourcing/Co-packer Packaging & Labeling Customer service Per-capita consumption Population Tastes and Preferences Diversified product lines
32	Case Studies
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98	Contacting the Center Center for Profitable Agriculture Middle Tennessee Experiment Station P. O. Box 1819 Spring Hill, TN 37174 (931)486-2777 cpa@utk.edu http://cpa.utk.edu
99	Adding Value to Tennessee Agriculture
100	Center for Profitable Agriculture Department in the Agricultural Extension Service Partnership of Tennessee Farm Bureau Federation and The University of Tennessee Institute of Agriculture Memorandum of Agreement with TDA, Market Development Division