USDA Helps Idaho Farmers Grow Their Operation

With the help of an FSA operating loan, Darl and Susan Harms were able to accomplish their business plan and grow hydroponic lettuce.

By April Bryngelson, Idaho Farm Loan Manager, Farm Service Agency

Darl and Susan Harms are growing lettuce year-round in Idaho. With the help of a loan through USDA’s Farm Service Agency (FSA), the couple was able to accomplish their business plan of growing hydroponic lettuce all year.

FSA’s Direct Farm Operating loans are a valuable resource to start, maintain and strengthen a farm or ranch. For new agricultural producers, FSA provides an essential gateway into agricultural production by making it easier to get the capital needed to operate a farm.

“I couldn’t go buy farm ground, but I owned a house and a few acres,” said Darl.  “It’s farming in my backyard.”

In the fall of 2016, the Harmses visited their local FSA office in hopes of obtaining funding to start their future farming endeavor. This future included a 3,000-square foot greenhouse, lights, fans, seeds, fertilizer and other necessary equipment.

“With a startup operation, I was a little concerned with where and how they were going to market the product,” said Allen Olsen, farm loan officer. “But, they came in with a well-thought-out plan and had already made contacts to market the lettuce.”

They now market all of their products to local restaurants, produce stands, schools and grocery stores. As their area has seen a large increase in demand for locally grown food, the Harmses have been able to meet that demand while producing a consistent quality product that is affordable. Specialty restaurants have become one of their biggest buyers.

“Connections with other growers have been the key to our success,” said Darl.

In the future, Darl and Susan plan to expand their operation by increasing lettuce production and growing potted fresh herbs.

Darl is a member of an online mentor group that consists of 28 hydroponic lettuce growers across the United States. While experience varies among the members of the group, it has served as a valuable resource in finding solutions to the challenges his operation has faced.

Financial analysis has been another major key to their success. Starting out with several different varieties of lettuce, they looked at the operation’s breakeven price from a general perspective. After completing the farm financial management course offered through the University of Idaho Extension Service, they realized that they needed to analyze their operation at a closer level and implemented financial practices that enabled them to evaluate which varieties gave them the best return.

“We could quickly see we were losing money on some varieties,” said Susan. “It also enabled us to see where we need to make changes.”

In the future, Darl and Susan plan to expand their operation by increasing lettuce production and growing potted fresh herbs.

For more information about FSA loan programs, contact your local FSA office or visit www.fsa.usda.gov. To find your local FSA office, visit http://offices.usda.gov.