turfgraass production on organic soils · ((5 x 700)+75+(1 x 300)). turfgrass varieties grasses...

Turfgrass Production 1 Forest Resources and Agrifoods

Agricultural Business Profiles

Turfgrass Production on Organic Soils

This Agricultural Business Profile was designed to incorporate existing documentation specificallyrelating to turfgrass production on peatland soils. The intent of this paper is to provide the readerwith an awareness of the industry in order to further investigate turfgrass production as a viablebusiness venture. The reader should be cautioned that this article is not a substitute for a businessplan, but rather an information source for interested producers to use as a starting point. While everyeffort has been made by the author to ensure the accuracy of the information collected, it should benoted that some information may become dated over time. Prices quoted are reflective of current2002 market prices and are subject to change.

Abstract

In Newfoundland and Labrador, peatlands comprise approximately 1.3 million hectares in areaswhere the peat exceeds 30 ha. Peat bogs are complex natural ecosystems which require severechanges to the bogs in order to bring them to sufficient production levels. In recent years, beginningin the mid-eighties, turfgrass production on organic soils has emerged as a viable option tocomplement existing farming operations or as an alternative for new entrants into the agrifoodsindustry. The sod industry is labour intensive requiring high levels of inputs in order to ensureeconomic viability. Successful producers have been able to take advantage of favourable economicconditions coinciding with an increase in urban development to expand markets.

Improvements in variety selection as well as different grass types have allowed producers the abilityto explore new markets. Equipment design changes better adapted for peatland development, alongwith continued producer training, has provided the basics for Newfoundland and Labrador producersof peatland turfgrass the ability to compete in this competitive industry. Higher inputs and producercommitments have the potential to reward the grower with a satisfactory rate of return on ownerinvestment.


INTRODUCTION

Newfoundland and Labrador has an historicalattachment to agricultural development onpeat soils. Peatlands have been utilized forregional pastures, vegetable production, foragecrops, turfgrass production and more recently,cranberry production. Turfgrass production inNewfoundland and Labrador has experiencedsignificant growth and expansion in recentyears. Currently, there are approximately 20turfgrass growers with 300 acres underproduction. Of this acreage, 280 acres aregrown on peatland soils with the remaindergrown on mineral soils. The value of thenursery sod industry is estimated at 2.4million dollars.

Opportunities exist for current growers, aswell as new entrants, to enter and expand thesod production industry. New homeconstruction, lawn restoration, commerciallandscaping and recreational facilities such assports fields, provide commercial turfgrassgrowers with a niche market that hasexperienced rapid growth in recent years.

PEAT BOG EVOLUTION

Newfoundland and Labrador’s peatlands wereformed between 5,000 and 10,000 years agofollowing the last glacial movement. Peatsoils consist of 93% to 97% organic matter ata minimum depth of 40 cm of peat. Onaverage, peat formation occurs at a rate of 0.6to 0.7 mm per year.

SITE SELECTION

When identifying peatlands as a suitablelocation for nursery sod production, the

producer should investigate the location asthoroughly as possible. Two importantconsiderations should be made. First, is theoverall bog suitable to be developed andsecond, is the bog completely undeveloped orhas there been some production on the bog inthe past? When considering overalldevelopment, aspects such as roadconstruction, ease of drainage (are there landforms that may impede drainage systems?),power supply, market proximity (nursery sodsare considered perishable), availability oflabour and availability of suppliers areimportant.

The farmer should realize that access roaddevelopment is not only important foraccessing the bog, but equally important is theconstruction of roads around the perimeter ofthe bog. This allows the grower to seed,maintain and harvest fields without traversingover fields already in production and causingdamage to this crop.

In relation to the history of the bog, it isimportant for growers to understand theimplications of attempting to grow nurserysod on mature peatland as opposed to virginpeatland. One of the biggest obstacles instarting sod production on previously croppedpeatland, is the infiltration of weeds, mostnotably, reed canary grass. While start-upcosts may be reduced on mature peatland, theconstant struggle controlling reed canary grasswill negate any financial savings gained.

Other considerations such as land ownership(crown land versus private land), location (isthe bog within a protected watershed area,municipal boundary or other protected area?),and overall suitability (slope, size and depth)are important factors to be addressed.


It is recommended that the provincialDrainage Specialist be consulted beforefurther work on land acquisition takes place.If it can be determined that the peat is notsuitable for turfgrass production, it will savethe producer time and money and alternatesites can be investigated.

Land Acquisition - The first step in securingpeatland is to apply to the local municipality,if the land is within the municipal boundary.If the municipality grants approval fordevelopment, the next step is to apply for aCrown Lands Lease which must beaccompanied with the MunicipalRecommendation Form. If however,development of this particular site is rejectedby the municipality, you will have to searchfor another site. At Government Services andLands, the Crown Lands Application mustmeet the approval of ALL Agency referralsbefore it can be approved. If any governmentagency, department or branch opposes theapplication, it can be rejected.

Land Survey - Once approval has beengranted for the crown land, it is theresponsibility of the farmer to have the landsurveyed. There is a 12 month time limitimposed by Government Services and Landsto complete this stage.

Land Drainage - After the survey has beencompleted and registered, the peat bog has tobe drained. The Drainage Specialist with theAgrifoods Branch of the Department of ForestResources and Agrifoods will make a site visitand determine the optimal drainage design.The producer can then have the site drained bya private company, request the AgrifoodsBranch to do the work or they may completethe work themselves if they have the necessaryequipment. More sod producers are

purchasing their own equipment so that theycan better utilize their own resources.

Due to the amount of requests for drainageand ditching work along with otherresponsibilities of the drainage crew, amaximum of 5 acres can be drained/ditchedon a per farm basis in a year by the AgrifoodsBranch.

Prospective growers must realize that the timeframe from site identification to seeding couldtake up to two years depending on peatlandavailability, site selection, availability ofequipment and management resources such ascapital and labour.

Miscellaneous Expenses - The followingexpenses are estimates based on currentmarket prices and are reflective of realisticcharges that interested growers must budgetfor when developing new land.

Crown Lands Lease - $100.00 + H.S.T. perapplication (Non-refundable)Land Survey - Approximately $1,000.00 +H.S.T.Lease Registration - $250.00 + H.S.T.Drainage/Ditching - $700.00 per acre for newdevelopment plus a “float charge”. The floatcharge is calculated at $75 + $1/km (up to amaximum of 300 km). A five acredevelopment cost for drainage and ditchingwould be a maximum of $3,875.00.((5 x 700)+75+(1 x 300)).

TURFGRASS VARIETIES

Grasses generally can be categorized as eitherwarm season or cool season grasses. Coolseason grasses grow best in temperaturesranging from 15° to 24° C. Varietal selection


will be dependent on its use, appearance andmarket demands.

There are a number of species of turfgrassesavailable for sod producers in Newfoundlandand Labrador. Producers use predominatelyKentucky Bluegrass, (Poa pratensis) seed forsod production, however, some producers areexperimenting with other grasses such ascreeping red fescues as well as differentmixtures of Kentucky Bluegrass varieties.Since all varieties have weaknesses and thereis no “ideal” variety, it is recommended that ablend be used to offset individual varietalweaknesses with strengths from othervarieties.

The most common grass used by turfgrassgrowers for lawns is Kentucky Bluegrass.This grass is known for its exceptional quality,dark green colour, texture and its tolerance tocold weather. It is highly adaptable to a widerange of soil conditions and managementpractices. This grass prefers moderatefertility, a well-drained bog site and full sun.As well, Kentucky Bluegrass can withstandextended drought conditions while in itsdormant stage. Kentucky Bluegrass forms anexcellent, strong sod via undergroundrhizomes making it highly suitable forpeatland production.

Varieties - When using Kentucky Bluegrass(KB), the most common mixture consists of:

25% America KB25% Touchdown KB25% Alpine KB 25% Moon Shadow KB.

CULTURAL PRACTICES

In their natural state, peatlands are not suitablefor crop production. They are acidic, infertileand are saturated with water. However, theyalso hold an advantage over mineral soils inthat they are stone-free, have excellent waterholding capability, good aeration whenproperly drained and a structure thatencourages efficient root development.Determining the natural fertility of the organicsoils can only be accomplished by conductinga soil test and having the sample tested at theSoil, Plant and Feed Lab., Department ofForest Resources and Agrifoods (see contactlist at back of document). The results of thistest will determine the turfgrass fertilityprogram.

Limestone - Growers should take peatsamples from the peatland to determine thecurrent pH level. The peat analysis willindicate the amount of limestone required tobring the pH level up to the optimum level of6.5 from 4.0; which is the average pH level forvirgin peat soils. Producers should consultwith area Agricultural Representatives on theAgricultural Limestone Program.

Fertilizer - The soil sample will also beanalyzed to determine the amount of fertilizerrequired as well as the type of fertilizer for thesuccessful growing of nursery sod. Therecommendations will vary depending on thesample taken, but 10-20-20 with 2% FittedTrace Elements (FTE) is used by mostproducers in the establishment year ofproduction. This fertilizer is incorporated intothe peat at a rate of 1,000 lb per acre. For amaintenance program, 15-15-15 with 2% FTEis used at a rate of 440 lb per acre 3 times peryear. The high application rates along withthe Fitted Trace Elements is necessary due to


the unique challenges associated with peatlandproduction.

Seeding Rates - Seeding rates will varyamong growers depending on the applicationprocess. If using a precision seeder, 110pounds per acre is recommended. If using ashoulder seeder, 165 lb. per acre is suggested.Germination usually takes 10 - 28 days at 10°- 30° C. Seed is purchased in 55 lb.bags.

Uniform seeding is essential to properestablishment and, therefore, a precisionseeder is highly recommended. Broadcastseeding decreases the chances of a successfulstand and increases the labour and seedingcosts.

Seeding Dates - Kentucky bluegrass can beseeded from late April until mid September.Depending on the size of the farm andavailable peat soil for planting, producersshould try to stagger the seeding so that thereis a consistent supply of sod available whenmarkets dictate demand.

It is not uncommon for some fields to beplanted in early spring and harvested in earlyfall. However, as with any agriculturalcommodity, optimum conditions must prevailin order for sods to be harvested during thefirst season. Usually, fields are planted in one

season and harvested the following year. Theaverage turnover for turf is 1½ to 2½ yearsdepending on the climate and the managementpractices of the grower. It takes between fourmonths to two years to produce a marketablecrop of Kentucky bluegrass.

Mowing - The development of high qualitysod is directly related to the establishment ofa healthy root system. Roots are encourageddue to continuous mowing of the sod on aregular basis. No more than a third of thegrass height should be mowed at a timeleaving the grass at a height of 2 inches.

PEST CONTROL

Sod producers should remain diligent inscouting their fields using Integrated PestManagement (IPM) techniques for weeds,insects and diseases. An IPM programuses/incorporates a variety of controlmeasures. This lessens the risks to thepesticide applicator and the environmentwhile still ensuring economic viability at thefarm level. Monitoring, pest identification,timing, thresholds, keeping beneficial insectsand record keeping are all fundamentals of anIPM system. Producers should ensure that allpesticides used are registered for turfgrassproduction. A Pest Management Specialist ison staff to assist growers in developing anIntegrated Pest Management Program.

Weed Control - Weeds are not usually aproblem with turfgrass production on virginbogs. However, Reed Canary Grass is aproblem on older fields, where this grass wasused previously to seed pasture and hay. Ifthis happens, the producer will have the addedexpense of time, money and labour in anattempt to control this weed. Eventually a


spray program will have to be used to controlbroadleaf weeds. It is important to rememberthat the use of chemical sprays for the controlof weeds must be done by following the labelinstructions for proper application rates andstage of growth.

Insect Control - Some of the common insectsthat can negatively affect the successfulestablishment of Kentucky bluegrass are the

larvae (cutworms) of the European MarshCranefly and the European Antler Moth,chinch bug and scale. Presently, the chinchbug is of the greatest concern since it canaffect the economic viability of nursery sod ifnot controlled. The other insects are potentialpests and producers need to be able to identifythem in the event that they becomeestablished. It is important to remember thatthe use of chemical sprays for the control ofinsects must be done by following the labelinstructions for proper application rates andstage of development.

Disease Control - Diseases that affect coolseason turfgrasses can be categorized underthree headings; winter, spring and fall, andsummer diseases. Two common winterdiseases that sod producers should be aware ofare grey snow mould and pink snow mould.

Both diseases are identified as grey or reddish-brown patches visible after spring thaw.These diseases appear when succulent growthcontinues into late fall. To alleviate thisproblem, producers should avoid applyingnitrogen fertilizer within the last six weeksprior to winter dormancy and mowing shouldcontinue until leaf development stops.

There are three spring and fall diseases thatnegatively affect most species of Kentuckybluegrass. They are leaf spots, necrotic ringspot and powdery mildew. Leaf spots appearin the spring as water-soaked spots on lowerleaves. It survives as an over-winteringfungus in thatch and infected leaves.Managers should use resistant varieties ofKentucky bluegrass and avoid heavyapplications of nitrogen fertilizers in spring.

Necrotic ring spot appears as bleaching onouter leaves. The fungus invades the rootsand crowns causing symptoms long after thefungus has been eradicated. Recovery ispossible with light fertilization, frequentwatering and spiking or aeration to relievecompaction.

Powdery mildew appears as white, powderymasses on leaves. Usually the plants areweakened and in this state, they aresusceptible to other necrotic diseases. Controlof powdery mildew involves a reducedNitrogen fertilizer application and using aregistered fungicide.

Other diseases that affect bluegrasses includerusts, dollar spot and fairy ring. It is importantto remember that the use of chemical spraysfor the control of diseases must be done byfollowing the label instructions for properapplication rates and stage of growth.


MARKETING

Markets for sod usually coincide with areas ofrapid urbanization and increased housingdevelopments. Landscapers are the dominantend users and growers have to be diligent tomeet the wholesale needs. Canada Mortgageand Housing Corporation (CMHC) showed a52% increase in new home construction on aprovincial basis from 1998 to 2002. 2003housing starts are expected to maintain thesame yearly increase of 10% - 15% over theprevious year.

Post harvest care is crucial since sods areconsidered a perishable crop. A maximumtime frame of 48 hours is recommended fromcutting to laying. It is imperative that the

manager coordinates the harvest with thelandscaper for prompt delivery to ensure ahigh quality product. It is also important forthe grower to explain the proper care andtreatment after the laying of the sod so thatthere is a greater chance of success.

EQUIPMENT

Agricultural development on peat soilsrequires intensive management skills.Equipment for sod production under these

conditions is highly specialized. For newentrants, equipment required to adequatelyfarm peatlands for sod production mayamount to $150,000.00. This would include a60hp 4wd tractor with dual turf tires, loaderattachment, forklift, sod cutter, precisionseeder, mower, lime spreader, rotary tiller,ditcher, fertilizer spreader, and boom sprayer.

Depending on the size of the operation, aswith other agricultural ventures the producermay be involved in, the transportation of thesods must be considered. The producer mayhave access to their own trucking or may haveto lease trucks in order to get the sods to themarket. In any event, this cost must beconsidered when setting the price, both at thewholesale and the retail level.

COST OF PRODUCTION (COP)

The following cost of production is atheoretical model based on current industryaverages, input from the Ontario Ministry ofAgriculture and Food as well as informationfrom the Forage COP. The followingassumptions have been made in the design ofthis analysis:

1. 50 acre sod farm on peat soil.2. New entrant with machinery expense

of $150,000.3. Price per ft² is $0.22 and does not

include trucking charges.4. Pesticides include weed, disease and

insect controls.5. The depreciation expense is based on

the straight-line method.6. Fertilizer - 10-20-20 with 2% FTE

$13.77 per 25kg bg15-15-15 with 2% FTE


$13.50 per 25 kg bg7. Limestone - $25.00 per tonne8. Seed - $282.00 per 55 lb. bag9. Herbicide - $74.50 per 10L10. Insecticide - $169.50 per 10L

It is important for the reader to understand thatthis model is a theoretical model and thatindividual expenses may vary. Expenses suchas labour and pesticides are deliberately set atthe high end of the range. As well, truckingcosts are not included.

2002 Turfgrass COP (Theoretical)

Avg. Yield/acre.(ft²) 36,000Avg. Price/ft² 0.22Avg. Income/acre $7,920.00

Variable Costs/Acre

Seed 705.00Limestone 200.00Fertilizer (10-20-20) FTE 247.86Fertilizer (15-15-15) 324.00Pesticides 350.00Machinery Operating Exp. 78.26Labour 680.00

Fixed Costs

Depreciation - Machinery 127.50Insurance 30.38Repairs 45.74Taxes - Property 0.00Interest - Machinery 150.00

Total Costs/acre 2,938.74Yield 36,000Cost/ft² 0.082Return to Management $4,981.26

Note: Most producers have their own trucks

to deliver sods. For those who have to useindependent trucking firms, additional costscould reach as high as $27.00 per pallet fordelivery within 2 hours of the St. John’smetropolitan area.

REGULATORY ISSUES

In Newfoundland and Labrador, agriculturalpesticides are regulated by the Federal andProvincial governments. Federal guidelinesunder the Pest Control Products Act, HealthCanada, regulates the registration,classification and labeling issues of pesticides.Provincial guidelines under the EnvironmentalProtection Act, regulates the legalrequirements for the sale, transportation,storage, mixing, application and disposal ofcommercial and restricted class pesticides.All producers of agricultural commoditieswithin Newfoundland and Labrador must belicensed in order to purchase and applycommercial pesticides.

Movement of nursery sod from Newfoundlandand Labrador is prohibited under the FederalPlant Protection Act and the Plant ProtectionAct Regulations.

MANAGEMENT ISSUES

Any research into new commodities with theintent of diversifying or entering into thebusiness as a new entrant, requires aconsiderable amount of time, energy andmoney. Sod farmers must be presented withall the information available to them in orderto make sound management decisions. Entryinto the business is open, however, thefollowing questions must be answered beforethe final decision is made. In the end, it is the


entrepreneur that has to be able to answer thebiggest challenge facing him/her: Am Iprepared to take the risk in order to enter intothe nursery sod production business?

Licensing - Am I prepared to become alicensed pesticide applicator througheducation, training and examinations asconducted by the provincial Department ofForest Resources and Agrifoods and theDepartment of Environment?

Business Plan - Have I accurately assessed allaspects of nursery sod production in abusiness plan? Are my figures realistic or dothey portray an overly optimistic view thatdoesn’t reflect current market conditions?

Fiscal - Do I have the financial resourcesavailable to me to invest in this businessopportunity? Can I get long-term capitalfunding for the purchase of equipment and canI sustain the monthly repayment schedule?Do I have adequate operating capital for start-up costs?

Marketing - Have I researched marketingopportunities adequately as part of mybusiness plan? Are there other niche marketsavailable that other producers have notexplored? Is the market currently saturatedand what opportunities will exist in thefuture?

Training - Do I have the required training toenter into a highly technical field such asagriculture? If not, is it realistic for me toexpect to be able to start an agrifoods venturewithout adequate training and am I prepared tosearch out training opportunities?

Human Resources - Is there an adequatesupply of available labour that is required in

an industry that is labour intensive? Can I payfair market value in order to retain andproperly maintain sufficient staffing levels?

CHRONOLOGICAL GUIDE

Many farming activities overlap throughoutthe year and are obviously dependant onweather conditions. The purpose of thissection is to be used as a general guideline sothat the producer has an awareness ofactivities which need to be addressed.

January, February, March, April:S Year-end Record KeepingS Equipment RepairsS Training and Educational SeminarsS Seed PurchasesS Fertilizer and Pesticide Orders

May, June, July, August, September:S Liming, Fertilizing, RotovatingS Seeding, Ditch CleaningS Crop Scouting/Pesticide Spray

ProgramS Marketing/SalesS MowingS Harvesting (last year’s crop)S Liming, Fertilizing and Re-seeding

Harvested Fields.

October, November:S Harvesting, MowingS Market DevelopmentS New Land DevelopmentS Soil Sampling

December:S Equipment and Inventory StorageS Equipment/Building MaintenanceS Fertilizer/Pesticide Inventory


SUMMARY

Producers interested in entering the turfgrasssector as a new entrant into the agrifoodsindustry or as an expansion to an existing

operation must do the background research todetermine if the new venture is feasible. Theentrepreneur must be diligent and realisticwhen writing the business plan that willultimately determine whether or not toproceed with this idea or explore otheropportunities. Many issues ranging fromexisting infrastructure, knowledge andpeatland availability to long term commitmentand financial stability have to be researched bythe producer. This paper has addressed manyof these concerns in order to provide thereader with a basic knowledge of the turfgrassindustry.

CONTACTS

The following is a listing of provincial andfederal contacts:

Department of Forest Resources andAgrifoodsP.O. Box 2006, Fortis TowerCorner Brook, NL

A2H 6J8Pest Management Specialist: (709) 637- 2087

Department of Forest Resources andAgrifoodsProvincial Agriculture Building 308 Brookfield RoadP.O. Box 8700St. John’s, NLA1B 4J6Report Author: Gerry Wicks, Economist(709) [email protected]

Crops Specialist: (709) 729-6867Soils Lab: (709) 729-6738

Department of Forest Resources andAgrifoodsP.O. Box 340Pasadena, NLA0L 1K0Crops Specialist: (709) 686-2702

Canadian Food Inspection Agency, CFIAP.O. Box 460John Cabot BuildingSt. John's, NLA1C 5K4(709) 772-4424

Newfoundland and Labrador HorticultureProducers CouncilP.O. Box 251Mount Pearl, NLA1N 2C3(709) 747-1378

Newfoundland and Labrador Federation ofAgricultureP.O. Box 1045Mount Pearl, NLA1N 3C9(709) 747-4874


Farm Credit CorporationP.O. Box 68Mount Pearl, NLA1N 2C1(709) 772-4635

Business Development Bank of Canada215 Water Street, Main FloorP.O. Box 520, Station “C”St. John’s, NLA1C 5K9(709) 772-5505

Canada/Newfoundland and LabradorBusiness Service Centre90 O’Leary AvenueP.O. Box 8687St. John’s, NLA1B 3T11-800-668-1010

BIBLIOGRAPHY

Conference ProceedingsNewfoundland Peat OpportunitiesAn International ConferenceSeptember 7-10, 1993Corner Brook, Newfoundland

Diseases and Insects of Turfgrass in OntarioA Handbook for Professional Turf ManagersPublication 162Ministry of Agriculture, Food and RuralAffairsGuelph, Ontario

Diversity of Peat, The1977 Peatlands SeminarMemorial University of Newfoundland

Fundamentals of Turfgrass ManagementAuthor: Nick Christians

ISBN: 1575040514Publisher: John Wiley and SonsDate Published: May, 1998

Guide to Weed Control, 2002Publication #75Ministry of Agriculture, Food and RuralAffairsGuelph, Ontario

Management and Conservation Practices forVegetable Production on Peat SoilsEastern Canada Soil and Water ConservationCentreMay, 1997

Prefeasibility Study of a Hypothetical PeatDevelopment in Newfoundland and LabradorAuthor - Unknown

Report of the Task Force on AgrifoodsDepartment of Forest Resources andAgrifoods1991

Statistics CanadaGreenhouse, Sod and Nursery Industries2001 Census - AgricultureTable 12

Turfgrass Management RecommendationsPublication 384 (2002 Supplement)Ministry of Agriculture, Food and RuralAffairsGuelph, Ontario


INTERNET SITES

http://www.gov.nf.ca/agric/cropshttp://www.nsac.ns.ca/lib/articles.htmlhttp://www.nsac.ns.ca/news/ac_post/1999/mar/research.htmhttp://www.turfgrasssod.org/trc/grass.htmlhttp://www.trufgrasssod.org/trc/faqs.htmlhttp://www.yourgrass.com/grass_types.phtmlhttp://www.turfgrasssod.org/lawninstitute/northern_lawns.htmhttp://www.gov.on.ca/OMAFRA/english/environment/hort/sod.htmhttp://cipm.ncsu.edu/cropprofiles/docs/risod.htmlhttp://turfgrass.comhttp://turf.ufl.edu/sodprod/sodprod.htmhttp://www.open.uoguelph.ca/OTS/http://www.gov.nf.ca/agric/soils/Peat.htmhttp://www.uoguelph.ca/GTI/gtihome/htmhttp://www.turfgrass.co.uk/http://www.pickseed.ca/http://www.gov.nf.ca/env/ActsReg/epaguide.pdfhttp://www.gov.on.ca/OMAFRA/english/


Funding for this project was made available by:

Canada - Newfoundland and Labrador

Farm Business Management Program

Agriculture and Agriculture et Department of Forest

Agri-Food Canada Agroalimentaire Canada Resources & Agrifoods

turfgraass production on organic soils · ((5 x 700)+75+(1 x 300)). turfgrass varieties grasses...

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