TAG’s growth strategy focuses on maximizing profit per acre and diversifying crop risk, which includes:
- redeveloping the 3000+ acre Snake River Vineyard property to grow more profitable permanent crop varieties, such as new high-density apple varieties, wine grapes and cherries;
- acquiring permanent crop farmland to further grow and diversify our portfolio.
Snake River Vineyard Redevelopment Strategy
TAG intents to redevelop approximately 1,000 acres of SRV’s land over the next five to seven years to grow more diverse and higher-profit permanent crop varieties. Our forecasts show that our profit per acre could be increased by replacing some of our concord grape vines with high-density apple trees that grow higher-profit apple varieties, or by re-grafting some of our older apple trees with new, higher-profit apple varieties. “High-density” apple plantings involve planting specialized apple trees at closer intervals in the orchard rows, which brings trees into production faster, reduces labor cost, time and materials and permits greater yield per acre.
In addition, our redevelopment strategy centers on enhanced farming techniques including:
- Yield Optimization: Resource Management
- Crop Quality Optimization: Engaging Growing Consultants
- Infrastructure Improvements: New retention ponds and wind machines
We further intend to enter into strategic partnerships, such as buyer and grower alliances, that enhance the profitability of the farm and afford us greater control and negotiating leverage. Check out our Partners.
TAG’s acquisition strategy focuses on acquiring farmland with the necessary characteristics to grow differentiated permanent crops, such as tree fruit (e.g. apples), stone fruit (e.g. cherries, nectarines and pears) and grapes (e.g. concord and wine grapes), that are profitable to our business. These characteristics include an established permanent crop, secure water rights, redevelopment potential, large contiguous area, existing operations and consistent yields. In addition, capitalizing on the extensive experience of our management, consultants and advisors, we intend to use value-enhancing farming techniques, such as advanced pruning and thinning techniques, frost prevention such as ponds and wind machines, and other infrastructure improvements, to increase the yield of our crops.
The Taggares family has been farming for more than 70 years and has developed a deep history among farmers and members of the agricultural community in the Pacific Northwest. Our strategy is to leverage the family history and brand to build relationships with regional farmers who plan to divest their properties. We believe we have a significant opportunity in the Pacific Northwest to acquire and improve farmland that matches our acquisition criteria. We anticipate an increase in the supply of Pacific Northwest cropland available for acquisition or lease over the next several years.
Pacific Northwest Farm Ownership
According to the USDA, in 2007, in the Pacific Northwest, there were 47,425 farms in operation, of which approximately 88.2%, or 41,844 farms, were family-owned and approximately 57.0%, or 27,052 farms, were primarily operated by individuals over 55 years of age. Further, of the 2,204,792 farms in the United States as of 2007, approximately 94.0% were family-owned. In addition, the fastest growing group of farm operators in the United States is those 65 years and older. We believe this data strongly indicates the fragmented nature of the agriculture industry in general and the aging demographics of farm owners in the Pacific Northwest specifically. Based on this data and our experience, we believe that a large number of farms in the Pacific Northwest are currently or will soon become available to be acquired or leased over the next several years.