Grapes, not olives, are why the Durant family established Red Ridge Farms in Dayton, Ore., in 1973. Penny Durant managed the farm until her retirement in 2000 prompted her to diversify: Durant Vineyards was born, and a nursery and retail store added for wine tourists. “Penny was looking through a plant catalog for the nursery,” explains Lee McCollins, Red Ridge Farms marketing director, “and she found some winter-hardy olive trees. She purchased a few thousand to begin experimenting with growing olives in 2004.”

OLIVE EXPERT: Paul Durant is owner and master miller at Oregon Olive Mill at Red Ridge Farms. He has worked to select olive varieties that thrive in Oregon weather.

Olive trees take three to five years to fruit, and winter frosts taught the Durants which olive varietals are better-suited to Oregon. “The Durants planted 10 acres at first,” McCollins says. “It was a lot of trial and error figuring out which varietals really do work in the cold climate.”

Like Durant, Andrew Anderson of Alfalfa Valley Farm in Bend, Ore., likes the challenge of growing a temperamental crop. “Cannabis is like poinsettias and orchids,” Anderson says of growing cannabis in his 30,000 square feet of greenhouses. “You can really screw up fast by one bad decision, like the pH [potential of hydrogen] level in the water you’re putting out. I also like growing something new. There are not many new industries in farming.”

Legalization of recreational marijuana, the dried form of cannabis, passed in Oregon in 2014. The state’s decision attracted Anderson, and he moved from his family’s Northern California walnut farm to Oregon. “We grew really large cannabis plants because we were limited by plant numbers,” Anderson says of growing in California. “In Oregon, we can grow thousands of small plants of higher quality. We’re getting five harvests annually using blackout systems to open and close curtains for the plants’ 12-hour flower cycle.”

Focus farm goals
It’s important to pencil out goals for processing, marketing, and operation size for new crops. The Durants’ intent for their Oregon Olive Mill at Red Ridge brand is to serve their regional market with locally grown and processed olive oil. Currently, their 17 acres of olive trees produce 10% of the demand for their olive oil. To keep consumer interest, olive fruit is purchased from Northern California and milled at Red Ridge.

“There's an old Italian saying, ‘You grow grapes for your grandchildren and olives for your great-grandchildren,’” McCollins says. “Most of our trees aren't mature enough to produce the yield we need to fill demand. It's hard to say when we'll be 100% estate, but that’s the goal eventually.”

CAPITALIZING ON A TREND: A change in Oregon law had California walnut grower Andrew Anderson moving north to take advantage of a new business — cannabis. He grows the temperamental plants in 30,000 square feet of greenhouse space.

Drive southwest 154 miles, and Anderson is building his farm to meet marijuana demand nationwide as he foresees more states legalizing it. “Three years ago, everyone thought it was crazy Colorado would pass,” Anderson says of his prediction, “but it was the tipping point. A recent poll showed 93% of United States citizens support medical marijuana.”

Determining focus is key to successful development of new crops. At Red Ridge, quality is central: Each olive varietal is handpicked and milled separately from other varietals. This creates premier varietal extra-virgin olive oil, with very specific taste profiles of interest to wine connoisseurs. Similarly, Anderson came to Oregon to grow cannabis because he likes how the state is regulating dispensaries to maintain marijuana quality. California does not have retail regulations, which floods the market with inferior marijuana and lowers farm profits.

Research your market
Every good business plan is supported by sturdy market research — though for Red Ridge, it was brief. “We found there was no commercial olive oil mill in the state,” McCollins says. “With no competition, it was an easy decision to construct a state-of-the-art Italian mill.”

Research did show several companies in California, Arizona and Florida produce olive oil. This led Red Ridge to focus on marketing their olive oil in the Pacific Northwest region, and maintain strict quality standards in growing, milling and storage for uniqueness in brand. Oregon Olive Mill oils are sold direct to the consumer in the Red Ridge retail store, and at regional Whole Foods Market locations.

“Whole Foods Market is really committed to selling local products from within each region,” McCollins says. “Every store has the autonomy to purchase products from its community, as long as the producers meet their standards. That’s why we're 100% natural and process our fruit in a kosher-certified facility.”

Deflate price projections
Anderson’s business is planned around the future’s lower price for cannabis. “The first year recreation [marijuana] is legal in a state is always the most profitable time,” he explains, “because there is such a supply shortage. The price will start to decline, like any new industry, probably within a year of now.”

Anderson maintains control of his crop from greenhouse to consumer. His Alfalfa Valley Farm owns three dispensaries, with two more under construction. “Most growers sell to other dispensaries,” Anderson says. “I think that's short-term thinking, because when the price goes down they will get wholesale price cuts up to 50%. By owning the stores, we can adjust prices and maintain profit.”

Regulations for growing cannabis and selling marijuana change as the new industry develops. “I was on the marijuana advisory committee for [Deschutes] County,” Anderson says, “which made the rules under which we operate. Half of the committee was super against cannabis, and the other half of us work in the industry. We ended up with the worst rules in the entire state. We have 67 pages of state rules for recreational marijuana and 87 pages of additional county regulations.

“We have to mitigate odor; the smell of cannabis cannot get out of greenhouses. You can have a dairy farm next door that smells like cow manure, but you can't have a cannabis farm without an odor system.”

A TASTE OF OIL: As with wine tasting, Oregon Olive Mill has found customers like to sample olive oil products as well. Here they taste extra-virgin olive oil, or EVOO, at the mill.

Consider farm location
Red Ridge Farms’ primary crop is 180 acres of grapes. Having an established revenue source is important when experimenting with new crops, such as olives, that take a long time to establish. Because of Red Ridge’s location in the Dundee Hills American Viticultural Area (AVA), adding olives also provides a unique experience for tourists visiting Durant Vineyards at Red Ridge. “We’ve developed tasting experiences that involves both olive oil and our wine,” McCollins explains, “so people can try our products and enjoy an extra-special experience.”

For Anderson, climate figures into his farm placement. In most locations, growing cannabis has high energy costs: Lights operate constantly, and so does the air conditioning to cool those lights. “In Bend, we have the best amount of sun in the state,” Anderson says of having lower light costs, “and the air conditions are dry. I would say Bend is the Napa Valley of cannabis growing. In the next 20 years, as legalization goes through all the states, Oregon will be one of the biggest suppliers of cannabis in the United States.”

What to do before diversification

Do your research, consider these points and ask questions.

• Is there room in that crop’s market?
• Figure in location: climate, consumer, and access to market.
• Consider how the crop fits into your current operation.
• Decide where, when and how to grow the crop.
• Identify how you want to sell the crop: local, regional, or national.
• Is it beneficial to maintain ownership of the crop to the consumer level?
• Plan your cash flow on the lowest price of the crop.
• Can you fill a need for your community and consumers? For example, Red Ridge now mills olives for neighbors, too.

Hemken writes from Lander, Wyo.