Agroforestry in Pennsylvania and Opportunities & Challenges from Native Medicinal Forest Plant Husbandry Eric Burkhart Mike Jacobson Penn State

Agroforestry Forest farming

Location of Forested Land in Pennsylvania

Deer!

Invasives High Grading

Context

• Shift from efficient production to sustainable production – Economic decline in rural communities – Soil erosion – Pollution – Water quality – Monocultures • Top five in nation for land use change due to development

Interest in Agroforestry (PA)

Windbreak** Alley Cropping* Silvopasture*

Mean (1-5) PASA WOA

2.9

2.9

2.8

2.3

1.9

2.0

Total

2.6

2.3

2.3

Mean (1-5) Male

2.5

2.2

2.3

Female

3.0

2.5

2.4

Riparian Buffers* NTFP CTM* Patio Gardens** 2.9

3.3

3.0

3.0

2.5

2.9

3.6

2.1

2.7

3.1

3.4

2.3

2.6

3.0

3.4

2.2

1 Response categories were from 1) Not Interested to 5) Very Interested 2.9

3.4

3.4

3.4

*Significantly different between PASA and WOA at .05 level ** Significantly different between PASA,WOA, male and female at .05 level

Non-Adopters 4 Specialty Crop Production 3 Cluster Size Timber Related Practices Livestock Related Practices 2

Cluster 3: Progressive Land Manager

Interest in Agroforestry

NTFP, Patio Gardens CTM Windbreaks, Riparian Buffers

Benefits

Environmental Conservation

Obstacles

Access to Information Biophysical Compatibility

Extension

• Three Scenarios for Adoption Potential – Timber-Related Practices – Livestock-Related Practices – Specialty Crop, Small-Scale Intensive Practices • Each one reaches a different audience and requires different collaborators • Demonstration sites

Forest farming

• An alternative income opportunity • Domestication/cultivation of forest botanicals • Take pressure of ‘wild’ resources • Keep land forested

The husbandry continuum

Wild collection (w/ no seeding) Wild collection (w/ seeding) Wild collection (w/ extra seeding) Propagation (forest, non intensive) Propagation (forest, intensive) Propagation (field, intensive)

Why botanicals?

• Health • Are beautiful plants • Concern over habitat loss • Income?

• There are markets?

On-going forest botanical (NTFP) market study • Production viability analysis is based upon a 5 year price average from wholesale buyers (1999-2004) – Also looking at price/market trends over time (30+ years) • Many production assumptions that are still being fine tuned – Assume same price for woods cult & wild sim (exception = ginseng).

– Time to production (3 = woods cult, 5 = wild sim) – Seed and propagation material costs – Yield estimates (roots per pound, yield per area)

• Black cohosh • Bloodroot • Goldenseal • Mayapple • Ginseng • Burdock

Species

American ginseng (Panax quinquefolius)



Uses: Ginseng (Panax quinquefolius)



Marketable products:

 root (6 + years);  seed  Season: fall  Price paid: $220-$1,500/kg (root)  Demand: very strong  Uses: tonic, stress, mental efficiency, physical performance, fatigue, anti cancer

Estimated Number of Wild American Ginseng Plants Harvested in Pennsylvania (1989-2003)

Source: PA DCNR 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 1989 1991 1993 1995 1997

Year

1999 2001 2003

Average price of American ginseng (Panax quinquefolius) root (1968-2004) $400.00

$350.00

$300.00

$250.00

$200.00

$150.00

$100.00

$50.00

$0.00

Wild/Wild-simulated Woods-cultivated Field-intensive 1968 1973 1974 1976 1977 1978 1980 1981 1982 1993 1994 1996 1997 2000 2003 2004

Year

Goldenseal (Hydrastis canadensis)

Goldenseal (

Hydrastis canadensis

)       Season: fall Price paid: $35-120/kg (root); no data for leaf Demand: steady and significant Uses: tonic, mild laxative, anti-inflammatory, antibacterial, bitter, uterine stimulant, stops internal bleeding, astringent

Marketable products:

 root (3 yr. old)  leaf despite its notoriety, little clinical research

Black cohosh (

Actaea racemosa

) • Marketable products: – root (3+ yr. old) • Season: fall • Price paid: $6-20/kg (root); $4.50-10.00 per plant as an ornamental • Demand: significant • Uses: medicinal (promotes menstrual flow & regularity, anti-rheumatic) and ornamental  RemiFemin (GlaxoSmithKline)

Bloodroot (Sanguinaria canadensis)

Bloodroot (

Sanguinaria canadensis

)

     

Marketable products:

− root (4-7 yr. old) Season: Fall Average root weight: 95 plants/lb. (Price paid: $16-35/kg (root); $4.50-10.00 per plant as an ornamental Demand: steady Uses: medicinal (cancer, topical, expectorant, antiseptic, antibacterial) and as an ornamental

Mayapple (Podophyllum peltatum)

Uses • toxic • anticancer properties • laxative • Warts • Price – about $1/kg

Average price of several medicinal root-furnishing species (1968-2004) $400.00

$350.00

$300.00

$250.00

$200.00

$150.00

$100.00

$50.00

$0.00

ginseng goldenseal bloodroot black cohosh mayapple 1968 1974 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Year

Common Burdock

Arctium lappa

Uses: Skin conditions Laxative Food Price – about $3/kg

Prices

• 5 year average from various sources – American Botanicals – Strategic Sourcing, Inc.

– Hawk Mountain Trading Co.

– Ohio River and Fur, Inc.

• Same prices woods and wild grown, except ginseng.

• Costs – labor, seed costs, equipment

Black cohosh Bloodroot Goldenseal Mayapple Burdock Ginseng Woods Cultivated yield on 0.04 ha (kg) Woods Cultivated Avg. price/kg ($) Wild-simulated yield on 0.04 ha (kg) Wild simulated Avg. price/kg ($) 18

20

11 5

27 33 5 18 39 1 3

220

8 10 3 2 12 8 5 18 39 1 3

770

$8,000

Woods cultivated revenues and costs for .04 ha

Gross revenue Total costs Net revenue $7,200 $6,000 $4,000 $3,500 $3,500 $3,500 $3,500 $2,000 $0 $89

Black cohosh

-$2,000 $363

Bloodroot

-$4,000 ($3,411) ($3,137) $427

Goldenseal

($3,073) $6

Mayapple

($3,494) $4,175 $3,025 $1,570 $84

Burdock

($1,486)

Am erican ginseng

-$6,000

Wild simulated revenues and costs for 0.04 ha

Gross revenue Total costs Net revenue $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 - $1,000 - $2,000 - $3,000 $2,100 $38

Bla c k c ohosh

($2,062) $2,100 $171

Bloodroot

($1,929) $2,100 $128

G olde nse a l

($1,972) $2,100 $3

Ma ya pple

($2,097) $1,170 $6,300 $4,375 $1,925 $36

Burdoc k

($1,134)

Ame ric a n ginse ng

Comparing net revenues

cultivated w ild simulated $5,000 $4,000 $3,000 $2,000 $1,000 $0 -$1,000

Black cohosh Bloodroot

-$2,000 ($2,062) -$3,000 -$4,000 ($3,411) ($1,929) ($3,137)

Goldenseal

($1,972) ($3,073)

Mayapple

($2,097) ($3,494)

Burdock

($1,134) ($1,486) $4,375 $4,175

American ginseng

Figure 2. Cash Flow Diagram for Ginseng Husbandry Options

(before and after discounting at 4%)

$5,000 $4,375 $4,175 $4,000 $3,085 $3,000 $2,784 $2,000 $1,000 $0 -$335 -$1,000 -$2,000 -$1,325

0 1 2 3 4 5

Year

6

Woods-cultivated (before) Woods-cultivated (after) Wild-simulated (before) Wild-simulated (after)

7 8 9 10

Break-even prices Woods-cultivated

Break even prices Current prices $800 $700 $600 $500 $400 $300 $200 $100 $193 $0

B la ck c oh os h

$5 $770 $321 $171

B loo dr oo t

$18

G ol de ns ea l

$39

M ay app le

$1 $92 $58 $3

B ur do ck A m er ic an gi ns eng

$220

True price vs. market price

• That’s why there is little cultivation of these botanicals • Wild-crafting has costs as well – finding the plants • Costs • How to overcome?

– Pursue different markets (direct, value-added, nursery instead of medicinal) – Future and current certification (organic?) – Emphasize quality not quantity – Stay abreast of market trends • Buyer’s needs - Insurance

Summary

• Ginseng stands alone • Potential for other NTFPs • Role for policy makers