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Modity production of anything by nature is going to reward the lowest cost producer and

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reward kind of a race to the bottom, a race to zero.

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And that's what corn and soybean production is in Northern Iowa and Southern Minnesota.

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And that's not a sustainable model in the long term.

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We need to grow food that people eat and that they want to eat, not trying to push them

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into consuming something that they may not want to eat or may not be healthy for them.

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Welcome to the 363rd installment of Ear to the Ground, the Land Stewardship Project's

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podcast on family farming, regenerative agriculture, community food systems, and local democracy.

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I'm Brian DeVore, editor of the Land Stewardship Letter.

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On a recent January morning, Landon Plagge drove me out to a 200-acre field, his family

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farms in North Central Iowa.

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Like all the farm ground in this part of the state, the field was tabletop flat.

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There was little on the landscape to block the arctic-like winds that were raking the

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area.

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But Landon made clear this field differs greatly from the majority of crop land in the region.

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A closer inspection showed that it was covered with the remnants of sorghum, sudan grass,

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millet, radishes, and turnips, and the perimeter of the field was bordered by livestock fencing,

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something that's increasingly uncommon in corn-soybean country.

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It turns out beef cattle from a neighboring farm had recently grazed this cover crop mix.

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While making use of a low-cost forage, the bovines had spread manure across the landscape,

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adding natural fertility to the soil, and breaking up pest and weed cycles.

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Landon reported proudly that it was their most profitable field in 2024.

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The farmer credits crop diversity for generating good income off this and the rest of the 4,000

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acres his family farms near the town of Latimer.

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And the linchpin of this diversity is oats, a small grain that used to be ubiquitous in

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the region, but that's been removed from most farmers' rotations during the past

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several decades.

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Stewardship of the soil is important to the Plagueys.

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They utilize no-till and cover cropping on all their farm ground.

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Landon, who farms with his wife Anne, as well as other family members, says establishing

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oats as part of their rotation not only fits their conservation ethic, it's also served

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as a gateway for integrating other enterprises into the operation.

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For example, the Plagueys were able to establish those cover crops for grazing because oats

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had been grown on that ground earlier in the growing season.

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Since the small grain was harvested in July, that provided a wide planting window for the

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covers, something that wouldn't exist if fall-harvested corn and soybeans were growing

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there.

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Diverse cropping systems also provide flexibility when it comes to the timing of applying the

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manure the family's hog operation produces.

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But Landon isn't just bullish on oats because of their ability to diversify a farm's agronomic

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mix and build soil health.

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He's also excited by recent market trends showing that U.S. eaters are increasing their

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consumption of this healthy grain.

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Turns out the U.S. is the biggest importer of oats in the world.

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Given that we get the vast majority of that grain from places like Canada, wouldn't

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it be great if large food companies were sourcing more of their product closer to home?

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A greater reliance on more local farmers would not only diversify the landscape in a way

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that results in healthier soil and cleaner water, but could inject vitality into rural

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communities that are suffering from an economy dominated by the monocropping of commodities

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like corn and soybeans.

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Landon, who studied business administration and investment banking in college, sees lack

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of a supply chain infrastructure that allows farmers to get a third crop-like oats to the

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market as the biggest barrier to diversifying the landscape.

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That's why he and Anne have launched Green Acres Milling, a venture that's establishing

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an oat processing facility in Albert Lee, Minnesota.

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Seventy other farmers have bought shares in the facility, which will break ground in the

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spring of 2025 and be located in an area that's easily accessible to not only oat producers

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but regional transportation infrastructure.

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When it goes online in 2026, the processing facility will be able to handle 3 million

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bushels of oats annually, which could potentially impact the crop rotation on 90,000 acres

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of farmland in southern Minnesota and northern Iowa.

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In January 2025, Landon was invited by LSP to talk about the benefits of integrating

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oats into the rotation during a special small grains workshop in Albert Lee.

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As part of a three-part series of podcasts focused on the workshop, I interviewed Landon.

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While we took shelter from the winter wind in his family's machine shed, the farmer

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described why oats make such a good fit for this area of the upper Midwest agronomically,

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environmentally and economically.

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So Landon, you just took me on a really appreciate it.

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You took me on a little tour kind of showing me how you've been integrating crops like

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oats into your rotation and kind of the role that they play in it.

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And one of the points that you made, I think, was really important was that you really were

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drawn to oats.

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It sounds like around eight years ago, you started integrating them into your rotation.

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Based a little bit on the environmental benefits, you really saw how it could help build soil

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health.

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But you realized pretty quickly, it has to make sense economically.

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And one of the pieces that you laid out was if you're looking at it on a single growing

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season basis, a single year basis, corn and soybeans still beat oats financially.

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But if you look at it over a multi-year basis, it really can pencil out to have something

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like oats in that rotation.

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Can you just go over that a little bit and talk a little bit about how that over a multi-year

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kind of as part of a system, has to be part of a system, I guess, I think was one of your

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points.

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Farmers really need to look at growing crops as a systems approach.

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Corn, soybeans, oats, the cover crops, the different crops you can grow, the sorghum

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sedans, the millets, and how they all work together in maximizing our efficiency, our

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sustainability, and our economics.

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We found that by integrating small grains like oats, we've been able to cut out the

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fungicide on our corn.

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We've been able to go to non-traded corn, eliminate insecticide, and reduce the input

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cost of growing our corn while boosting the yields by breaking the diapause of insect

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cycles, feeding different microbes on our soil.

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So we've seen an economic benefit of adding the small grains when it's looked at as part

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of a three-crop rotation.

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In a one-year scenario, you could run a cash flow and say, corn looks better than oats.

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But if you consider the other benefits that oats have or small grains have in your rotation,

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then all of a sudden the oats will look $100 an acre better than growing corn.

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And it spreads out your labor, it spreads out your workforce, it spreads out your machinery.

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Just makes your farm more diverse and more resilient in the future.

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And you said, I think you said you've cut in half your spending on crop insurance just

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for your corn and soybeans too as a result.

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Yeah, overall on our, over our entire operation, we've cut our crop insurance by about 47%

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our crop insurance spending per acre.

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Part of that is that we self-insure on oats.

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Part of that is that we're buying a lower guarantee on our corn and soybeans because

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our soils now have more water holding capacity, more pore space in our soils.

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And we've seen our yields increase on our corn and soybeans following oats, even in

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the challenging weather that we've had the last several years.

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When it rains, our soils soak up water.

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They don't pond as much.

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The water doesn't run off.

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And that water is stored for when it doesn't rain.

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And so we've been able to reduce our crop insurance expense significantly by having

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small grains.

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Can you take me through one of the first fields we visited was I think a 200 acre field.

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You take me a little bit and you said it was your most profitable field this year, I think.

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Can you take a little bit through the what that rotation has been like the last couple

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years and I know you've added neighbors livestock into that system and kind of how that's worked

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out?

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Right, our most profitable acres the last two years since we started reintegrating livestock

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on a larger scale into our operation has been oats followed with livestock cattle grazing

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on it.

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That's because the oats themselves may break even, but then you consider the benefits on

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the corn and soybean price.

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But we're also grazing cattle on sorghum, sedan grass, millet, radishes and turnips

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following the oats.

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And we're grazing about one head per acre.

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The cattle have averaged three pounds a day both of the last two years grazing that and

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we have them out there for about 100 days.

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So we're putting on 300 pounds of beef, rough math of a dollar fifty a pound of value, but

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let me back up on purchase price, that's $450 an acre of beef that we're doing on our operation.

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And so you add that with cattle, with the oats, we're making significantly more per

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acre with livestock reintegrated and it's better for our sustainability, better for

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our soil health.

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It really supercharges the soil quality having livestock grazing on the land and I'd rather

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make $300-$400 an acre than make 50 growing corn.

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Out of your 4,000 acres that you're farming, how many were in oats this year?

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In 2024, we farm about 4,000 acres.

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We're 100% no-till, 100% cover crop.

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We had about 600 acres in 2024.

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In 2025, we're going to have about 1,600 acres of oats.

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We're increasing our oat acres because of the economics of growing oats and having the

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three crop rotation.

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We like the environmental sustainability, but we also need to stay in business too and

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we can be more profitable by having a three crop rotation on our farm, integrating livestock,

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growing double crops.

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We're growing Caranada on acres, Camelina on some acres, hybrid rye on acres, and oats

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allow us to do all of these other crops while maintaining our corn and soybean oat rotation.

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I think that's a good example of you were talking earlier about oats can be an example,

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integrating a crop like oats into a cropping system can be a way of, instead of pushing

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farmers to do things that maybe are good for the soil, good for the environment, that type

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of thing, kind of pulling them along with the market type of thing.

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Yeah, consumer demand is really showing a shift to more sustainably produced products,

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more sustainably produced food, and they also want to know where their food is coming from

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and how it was raised.

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With a small grain such as oats, domestically sourced, domestically raised, we can provide

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what consumers want and they are willing to pay more money for that product as well.

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That pulls farmers into integrating a cover crop, reintegrating livestock, and we want

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the market to reward producers for growing these more sustainably produced products on

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their farm rather than trying to push farmers into growing a cover crop or into no-till.

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If the market rewards guys, they'll do it and it'll be a long-term scalable solution

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instead of say an incentive-based solution that may go away when the incentives disappear.

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So one of the things that I think an idea that you're kind of trying to integrate into

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this farming operation and it seems like it's very important to you is this idea of raising

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a crop that's food for people.

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That kind of idea and it's not just like, oh, that's a nice idea, but you really feel

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like that that works into the economics of helping the farmers and helping the rural

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economic development.

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You're very involved with the community and I think you own a grocery store in the area

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as well, so you saw that side of it, the retail side of it, but this idea of getting farmers

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maybe into the mindset of raising a food product rather than just a raw commodity that somebody

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else is adding value to and getting the economic benefits out of it.

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Yeah, since we've moved to a more sustainable operation, we've quadrupled in size of our

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operation and tripled the number of acres that we own on our farm.

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It's been successful for us moving to being a food producer instead of being a commodity

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producer.

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Community production of anything by nature is going to reward the lowest cost producer

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and reward kind of a race to the bottom, a race to zero, and that's what corn and soybean

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production is in Northern Iowa and Southern Minnesota.

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It's everybody competing against each other to try to be the lowest cost, highest yielding

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producer and that's not a sustainable model in the long term.

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We need to grow food that people eat and that they want to eat, not trying to push them

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into consuming something that they may not want to eat or may not be healthy for them,

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just because that's the crop that we want to grow.

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Farmers need to look at what people want to consume and grow those things and that will

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be the long term market driver that will make us be successful.

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Speaking of which, so the next you talk about side projects you got going, you got a really

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big side project going and it sounds like it was sparked a little bit by three years

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ago you and your wife going to Europe and seeing how much more oats was being raised,

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how much was being consumed, how that was much more part of the food system.

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So can you talk a little bit about this Green Acres Milling enterprise that is going to

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be going online here in the next couple years?

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Alright, so we're the founders and majority owners of a oatmeal that we're building in

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Albert Lee, Minnesota and we're owners of it as well as 70 other farmers in our area

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that have all bought in to deliver oats to because they see the economic benefits of

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growing oats and they see the sustainability benefits of growing oats.

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So we're a real team of like minded producers building a mill that would provide traceable,

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sustainably produced oat products into the marketplace.

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We're seeing consumer demand for it increasing significantly.

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Every year the US oat market demand has increased 8%.

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92% of the oats consumed in the US are imported from Canada though.

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The supply chain logistics that we have with the mill located here at the southern end

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of the oat growing region allow us to pay a higher price for oats than say what's currently

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paid while also providing a fair price to brands that are purchasing the product from

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us.

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We're breaking ground here when the ground thaws in spring of 2025 should be in full

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production by July of 2026.

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Our farm, we've grown a number of oats over the last few years.

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In the last five years I've grown about 2500 acres of oats.

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They've averaged 136 bushels an acre on a yield and 40.2 on a test weight.

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So we've been able to grow high quality, high yielding, milling grade oats here in

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Northern Iowa.

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Other farmers in our group have similar results in southern Minnesota, western Minnesota,

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western Wisconsin, eastern South Dakota.

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So we've proven in our region we can grow good quality milling grade oats.

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Our facility will handle about 3 million bushels of oats a year, both conventional and organic.

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Our focus is on the conventional product via some better differentiating factors on that

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but we also can provide a traceable organic product as well.

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Rough math on it is we're going to need 30,000 acres of oats to supply product to our mill.

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And so that will actually affect the rotation on 90,000 acres of crop land here in southern

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Minnesota and Northern Iowa.

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Which sounds like a lot.

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It is a scalable change.

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It's a lot more than we're currently doing but I think it's just the tip of the iceberg

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of what we can do.

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The consumer demand that we've seen and the brand demand we've seen.

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We have our products sold through 2028.

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We've seen demand for three times as much product as we're going to produce initially

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and we are building the mill, envelope the mill, building large enough to be able to

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double capacity just by adding some more machines.

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So I anticipate in two to three years from now we'll be doubling our capacity at the

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mill which in turn will affect 180,000 acres of crop land which then you're starting to

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talk larger numbers.

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You have any rough idea what roughly how many acres of oats are being raised in this region

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now?

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Currently there's about 45,000 acres of oats grown in a 120 mile radius of Albert Lee Minnesota

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which is where our mill is.

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What we're seeing is a number of growers that are participating in the project doubling,

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tripling, quadrupling the acres of oats that they will grow because of the improved market

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for the oats.

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And we're not actually really competing against the existing millers in the area.

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We're just selling into market growth.

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We don't need to take any oats away from the existing millers.

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We don't need to take any market away from the existing millers.

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We're selling into market growth.

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We're not displacing oat production from anybody else.

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There's just that much more demand for oat product in our region.

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Well and another really good point is that there's a lot of excitement about some of

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these quote unquote new alternative crops.

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I know Forever Green Initiative at U of M has been working with a lot with say, Kernza,

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Camelina, some other crops like that.

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The market isn't quite there for those.

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I mean that doesn't mean we should give up on them.

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It just, you know, there wasn't a market for soybeans earlier in the 20th century.

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But right now, you know, you've done the calculations and I've seen the numbers.

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There is a market for oats plus farmers know how to grow that.

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They maybe have gotten out of the habit of growing it, but there is that culture there

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of integrating a small grain into the corn soybean rotation.

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So that, if nothing else, can be, if we're going to diversify agriculture, boy, it's

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kind of a real reachable goal right there with integrating something like oats right

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now.

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With the different factors our U.S. domestically sourced oats have over the current oat supply,

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the market is here for oats and it's a growing market.

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Some of these other specialty crops, we have to develop the knowledge on how to grow them.

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We have to develop the infrastructure to grow them.

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But we also have to develop the market and that takes time.

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It just does.

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It's 20 acres of kernza, you know, is great, but to make scalable change, that might take

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10 years, 15 years to be a viable third crop in our rotations where the demand is here

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for oats now.

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And so we see oats as kind of a low-hanging fruit essentially to get farms into a more

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diverse sustainable rotation through crop rotation.

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And they're also kind of a gateway to some of these other crops.

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They allow other crops to be planted because oats are harvested in mid-July and that opens

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up the opportunity to have a much more viable cover crop, a much more viable second crop

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than a corn and bean rotation.

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And as farmers learn about other crops and have experience with growing, say, a small

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grain like oats, they're also more willing to try other different crops as they have

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success.

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You really strike me as somebody who's looking at this and some of the other things that

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you've been doing over the years, really look at the rural economic development, kind of

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the big picture holistic view of how is this going to benefit the community and the rural

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economy and not just, well, can we get a great market for this one commodity and make money

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while we can kind of thing.

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But that's something that sounds like you really think about quite a bit.

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Yeah, our rural communities struggle here in Northern Iowa, Southern Minnesota, and

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they struggle because our farms aren't diverse enough and our labor isn't diverse enough.

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And we're so focused on a monocrop culture that we need to move beyond that and figure

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out a way to, say, export more dollars per acre from our communities, from our towns,

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from our counties, from our states and our areas and the more dollars we can sell per

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acre, whether that's oats and cattle or the more profitability a farmer can have per acre.

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If a farmer is making $50 an acre, that's the dollars they have to spend in their communities.

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If they're making $200 an acre, that's the dollars they have to spend in their communities.

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And by farmers being more successful while also being better for the environment with

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our cover crop practices, small grains in our rotation, that in turn is better for everybody

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involved in the community.

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It's more dollars for our schools, more dollars for our hospitals, more dollars for our main

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streets and more people shopping there as there's more different things growing on our land.

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It spreads out our labor growing small grains, but it is most likely more labor per acre,

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but you're growing more dollars per acre, more money per acre coming in.

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You have to take care of the cattle on the land or the chickens or the sheep or your

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second crop or your third crop on that land.

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And so that will make our farms and our farm communities be more successful while also

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being able to compete economically and scalably.

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We have to provide good quality, low cost food for consumers.

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That's what people need to eat.

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And we can't necessarily produce food that costs four times as much just because it's

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grown in a sustainable manner and expect consumers to buy that.

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We need to appeal to every consumer out there by providing high quality, sustainably produced

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food at a price point that's very similar to what's currently out there.

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Yeah.

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And going back a little bit to the environmental, when you were talking about how many more

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acres you could scale up or how many acres, how this could change the rotation in the

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region because of the number of acres you would need to supply this facility.

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Something as simple as, it's not simple, but it's not a simple problem, but particularly

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in Southern Minnesota, the nitrate contamination issue, and I know it's an issue in Northern

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Iowa as well.

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You could, by converting that number of acres or getting that amount of oats into that rotation,

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you can reduce the amount of just something like nitrates, which is a huge issue and we're

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having a real problem trying to figure out how to prevent it from getting in there in

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the first place because once it gets into the groundwater, it's almost impossible to

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get out, that type of thing.

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Yeah.

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Oats and small grains in general, they do take less nitrogen to grow them than say corn

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does, but their root systems and the cover crop root systems, following oats with oats,

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companion to with oats, the data is out there and we have the data from some of our partners

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that it's basically, it can be up to a four-fold decrease in the amount of nitrates in drinking

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water in tiles, leaving a field of oats as compared to leaving a field of corn.

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A lot of that's due to water holding capacity.

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The water isn't leaving our farm.

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It's staying there.

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The nitrogen is staying on the farm operation where it's placed and so that's available

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for crops.

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We can use in turn as kind of a staircase effect.

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We can use less nitrogen because our soils are retaining more nitrogen.

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It's not running away.

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It really has a lot of positive effects for the environment on nitrates in the drinking

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water to erosion from the farmland to insects, beneficial insects, just different crops on

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our land as well.

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Are there one or two major barriers you see to getting more small grains or other third

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crops integrated into our corn and soybean system?

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Is there some barriers that you were like, boy, if we could figure that one out, that

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would really help us get over that hump a little bit?

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I think the biggest barrier we have to overcome is the market and middle of the supply chain

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infrastructure.

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A product like oats, the market is there, but the middle of the supply chain infrastructure

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for farmers to sell to that market isn't there.

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That's why we need projects similar to our Green Acres milling project that allow farmers

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to move farther down the supply chain, become more vertically integrated, and go beyond

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just being a commodity producer to actually producing food people eat.

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For more on building soil health profitably, diversifying agriculture, and community-based

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food systems, see the podcast page for Ear to the Ground episode 363 at landstewardshipproject.org.

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There you'll also see links to other episodes in this series.

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If you have comments or suggestions about this podcast, contact Brian DeVore at bdevorre

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at landstewardshipproject.org or you can call 612-816-9342.

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By the way, it helps us greatly if you can give Ear to the Ground a rating on whatever

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And word of mouth is the best way to spread the news about our podcast.

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If you like what you hear, tell at least one person about LSP's Ear to the Ground.

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00:26:32,280 --> 00:26:37,520
Thanks to Laura Borgendahl, a Western Minnesota musician, for Ear to the Ground's theme music.

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And a special thank you to all of Land Stewardship Project's members, who make initiatives

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00:26:41,780 --> 00:26:43,720
such as this podcast possible.

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00:26:43,720 --> 00:26:49,880
If you're not a member, visit landstewardshipproject.org to learn how you can support LSP.

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00:26:49,880 --> 00:26:58,440
Thanks for listening.

