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Is it even possible to become a farmer in Minnesota today?

REUTERS/John Sommers II
Today, there are thousands of acres of farmland across Minnesota, but there is little room for young people who want to make a living on the farm.

After a few years in Florida, Anne Schwagerl and her husband Peter decided they wanted something different from a professional life of cubicles and 40-hour work weeks. They moved to the family farm near Browns Valley in Big Stone County the western border of Minnesota.

They’ve had two children and they’ve moved into “grandma’s house.” Though Peter’s father is a conventional farmer (corn and soybeans), Peter and Anne have tried to find a new niche in the ag economy.

Among the non-GMO organic crops they grow is an organic blue corn, which is sold to an organic chip company. The yield is about half of the yield of a hybrid, non-organic field corn. But the price they receive is about triple the price corn farmers currently are receiving.

Other than the brutally long days of the harvest season, they love everything about farming. Working outdoors. The variety of tasks. The warmth of those around them. The sunrises and sunsets. The only thing Anne says the couple misses from that life of cities are grocery stores that are open 24 hours a day. “Farming wasn’t on our radar,” Anne said. “But now we can’t imagine anything else.”

They are involved not just in their community, but in the organic and range-raised food movement internationally. What we eat, they believe, is a question of values. “For a long time, we’ve devalued food and the people who grow it.”

But they also know they are bucking a trend. For all the attention Americans now focus on the sourcing of their food, there are a few young people trying to get into farming of any kind, let alone those like the Schwagerls, those trying to find niche markets with organic products or coming up with unique crops.

It’s a fact so well known among those in Greater Minnesota that when young people do move to rural parts of the state, they are sometimes greeted like conquering heroes. “When we had our first baby,’’ said Anne, 32, “we got thank you notes.”

‘The numbers just don’t work’

Today, there are thousands of acres of farmland across Minnesota, but there is little room for young people who want to make a living on the farm.

Family farms, not to mention the main streets and churches that grew up around them, continue to fade away, like the old red barns that once dotted the Minnesota countryside. Agriculture experts predict that what’s left of the small farm lifestyle is going to take another hit this spring, when a combination of  low commodity prices and high debt will lead to another round of foreclosures.

Gary Wertish

“We’re going to lose a lot of good people,” said Gary Wertish, president of the Minnesota Farmers Union. “This is potentially as bad as the 1980s. The numbers just don’t work.”

Indeed, no matter how hard they work, most small farmers can’t outwork the numbers. The cost of land, equipment and seed coupled with low crop prices is a formula that equals debt. And that leads to the harshest trend in terms of what rural Minnesota is going to look like in the years and decades to come. The state’s farmers are getting older (the average age is now around 55) even while it continues to get harder and harder for young people to get into farming.

The biggest factor in that trend is no mystery: Accessibility to land. Without a long-held family farm to turn to, the Schwagerls have no doubts about wether they’d be able to do work they love doing:

“Impossible,” Anne said.

Dave Frederickson, the state’s commissioner of agriculture, empathizes for young people who don’t inherit farmland but who want to go into farming. He offers the hypothetical situation of a young person who wants to be a farmer: If they somehow managed to find and buy 400 acres of land in south central Minnesota at $5,000 an acre, they’d be looking at as much as $2 million in debt.

Then, according to Frederickson, it costs about $600 an acre to grow corn (the costs include land, equipment, seed and fertilizer.) If, as Frederickson says, the land yields 200 bushels of corn per acre and the farmer receives $3 a bushel, that’s $600.

“So you’ve worked yourself to the bone and there’s no profit,’’ said Frederickson. “Why would you do that?’’

‘Just useless buildings today’

State pols have attempted to help get young people back on the farm. For example, in the last session a farm tax credit bill was passed for farmers who sell land or equipment to a young non-family member.

But tweaks aren’t going to solve the problem of unaffordable land. According to the Farmers Union’s Wertish, land prices have gone “by five or six times since the early 2000s.”

The big peaks came in 2012 when worldwide drought — which was felt in Iowa and Illinois but not Minnesota — led to huge commodity price spikes. Corn, for example, peaked at $7.46. Land prices soared with the crop prices, the mean price of an acre of farmland rising to $4,917.

This situation put cash in the pockets of farmers and it also enticed landowners to make the decision to sell land. Land being finite, many farmers decided to make down payments on land that hadn’t been available before.

But within two years, commodity prices crashed. Longtime farmers who had some equity or had saved during the years of bounty could maintain loan payments, at least for a while. But young farmers, who typically had little equity to begin with, have left with little but hopes and prayers.

Today, the fear is that many farmers — even longtime ones — are out of capital, and will not be able to get loans necessary to finance spring planting. And though the price of farmland acres has edged down to $4,776 since their peak in 2012, the rate of decline is much slower than the crash of commodity prices. (Local ag people believe it’s been outside investors, with no historic ties to the land, who have kept land prices at levels that don’t currently make economic sense.)

Almost all of the numbers are a sign to young Minnesotans that it’s time to move to cities — or stay away.

No one speaks more lovingly than Frederickson of the days of farm families working hard but living comfortably by planting a few hundred acres of corn and hay, keeping some chickens and pigs and milking small herd of dairy cows. But even the old-fashioned barns, if they exist at all, no longer are used for cows.

The Frederickson family farm had a barn (it was white), but Frederickson remembers knocking out the stanchions with a sledge hammer in the 1970s. The stanchions were replaced with hog pens, which he knocked out in the 1990s. The barn became a storage place for his boat.

“Those old barns are just useless buildings today,’’ he said, wistfully.

Hope and hops

There remain exceptions to the aging demographics of Minnesota farm country, of course. The organization Future Farmers of Minnesota has 11,000 members. Even if the picturesque family farm isn’t going to be available, those kids are being taught that there are farm-related trades, such as welding, that would allow them to live in rural parts of the state to serve the big operations that survive.

There have long been small farmers who survive by taking town jobs while running the family farm. When available, those jobs offer a guaranteed paychecks and perhaps even health insurance. But it’s a burnout lifestyle, attractive to few.

And there are people like Eric Sannerud and Ben Boo, both of whom grew up suburbanites but always were attracted to the land. After experimenting with miniscule hop crops on a couple of acres near Ham Lake, they found a friendly banker, some investors and purchased 120 acres of land near Foley in Benton County.

This is not some flowers-in-your-hair deal. Total startup investment for their hops project has been more than $4 million, including more than $1 million for equipment used to harvest and process the plant.

Overnight, Mighty Axe Hops became the biggest hops operation in the state. (More than 90 per cent of the hops in the U.S. are grown in Oregon, Washington and Utah.) Two years in, hopes are high that this is not just an economically sustainable operation, but one in which there’s actual growth potential.

Though still learning, Sannerud, who is 26, said that the hops farm has grown about 1,500 pounds of hops per acre and the farm has contracts to sell almost all of their product not just to local breweries, but to a growing numbers of small breweries nationally.

Since the 9th Century, hops have given beer its distinctive flavor. “People are ridiculously interested in the flavors of different hops,” said Sannerud.

There are a handful of different varieties grown at the farm, and other varieties are being tested at the 3-acre site in Ham Lake.

Sannerud is living the farmer’s life fulltime, with the hops farm near Foley and a 40-acre farm near Milaca, which is 14 miles from the Foley site. At the Milaca acreage, he and his girl friend raise pigs and sell organic produce at farmer’s markets. Their work is hard but he said he’s become “used to the feeling of remoteness.”

And he also said that he and his girlfriend have been welcomed by their neighbors, mostly older generations of farmers. “They’ve only seen young people leave,” said Sannerud. “Young people moving in are seen as new butts for the pews.”

This report was made possible by a grant from the Otto Bremer Trust. MinnPost’s donors, foundation funders, and corporate sponsors support our work in the belief that promoting greater civic engagement and informed discourse is the surest path to a better Minnesota. They play no role in guiding the journalism produced by MinnPost.

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Comments (12)

  1. Submitted by Susan Herridge on 01/12/2018 - 12:32 pm.


    I am surprised that a story like this could be written without mention of the Land Stewardship Project and their Farm Beginnings program.

    • Submitted by Luke Anderson on 01/12/2018 - 01:28 pm.

      Totally agree

      I have volunteered for the Land Stewardship Project several times, and they are a terrific organization. Can’t say enough good things about them. I agree, that is a bad oversight to write a story like this without mentioning their Farm Beginnings program. Serious error from MinnPost, which is surprising as I consider them to be one of the best local news sources out there

    • Submitted by Dennis Litfin on 01/12/2018 - 07:44 pm.

      Land Stewardship Organization puts out a quarterly newsletter/pamphlet which lists training opportunities for small startup farmers. In addition, they list small farming opportunities including land availability as well as established mature farmers who would like to retire but do not want their land to go corporate.

      Land Stewardship has written a proposed farm bill which has been sent on to Congress. Membership in Land Stewardship is open to all people, farmers and others who are interested in family farming vs corporate. They have three offices with the home office in Mpls, and they work throughout the upper midwest.

      Give them a look

    • Submitted by Jason Walker on 01/16/2018 - 10:43 am.

      Sustainable farm organizations in Minnesota

      LSP does a wonderful job of working to improve the lives of farmers, with Farm Beginnings, at the state capitol and many other ways.
      They are not alone in this work. My organization, the Sustainable Farming Association is committed to supporting existing and new farmers in the landscape. We have a skills-based Deep Roots Farmer Development Program that is meant to complement existing new farmer training programs, and our focus on soil health and farmer networking helps farmers like these find community and learn sustainable techniques from fellow producers.
      Renewing the Countryside is another Minnesota nonprofit working tirelessly to improve the lives of rural residents, through farm transition work and vital training for women producers, as well as several other initiatives.
      The Institute for Ag and Trade Policy is a Minneapolis-based nonprofit that focuses on state, national and global issues of food security, sustainability and accessibility.
      These are just three examples of Minnesota’s vast network of sustainable farm-focused organizations. We at SFA are lucky to collaborate with all these mentioned and more, and appreciate the fine coverage by MinnPost to shine a light on this issue.
      Jason Walker
      SFA Communications Director

  2. Submitted by Ray Schoch on 01/12/2018 - 01:57 pm.

    Just a thought

    This will be seen as sacrilege, but farmers, who generally vote heavily in favor of Republican candidates and “the free market,” are merely on the receiving end of how that “free market” works in a society dominated by industrial capitalism. Having to inherit a farm in order to be a farmer smacks of the sort of landed aristocracy that got a lot of revolutions going a couple centuries ago, and may well spark another one before all is said and done.

    Further sacrilege would be the admission on the part of some farmers, at least, that they currently receive subsidies from the… gasp… government, and that, to make farming truly viable as a career choice in not just Minnesota, but throughout the Midwest, an active and involved (and knowledgeable) farm subsidy program ought to be implemented. Unless you’re genuinely a fan of the economic roller-coaster, and don’t mind the stress of being a million dollars in debt this year after making a six-figure profit last year, the “free market” simply doesn’t work very well, especially when that proverbial supply-and-demand equation is subject to numerous forces that are outside the country, and outside local farmers’ control.

    Whatever we’re doing now simply doesn’t work very well. European countries, in particular, which have faced many of the same issues (if they’re not making any more land here, they stopped making it several hundred years ago in both eastern and western Europe, have unabashedly embraced the notion of subsidizing not the corporate giant agribusinesses (some of that happens anyway), but the family farms that fit most people’s stereotypical visions of what farming is and ought to be.

    Having spent several years doing farm work, I can vouch for the physical and intellectual demands of the job, as well as some of the rewards (sunrises, sunsets, a connection to nature that I still value, even as a city-dweller), but even decades ago, when I was a teenager thinking about what I wanted to do, the financial rewards for all the work didn’t look reliable enough to make it seem like a viable career choice.

  3. Submitted by joe smith on 01/14/2018 - 10:31 am.

    Ray, Government is putting small

    farmers out of business. The big agribusinesses have resources to deal with ever increasing rules and regulations imposed by State/Fed agencies. Small businesses doesn’t have the income available to comply with changing and increasing regulations. The same reason a small business goes under, because owner doesn’t have income for sprinkler system in stand alone structure while Walmart does.It is the same with small farms, they can’t afford the new Govt rules. Adding to small farmers woes is the “structuring” rules imposed on folks who have deposites over $10,000. Small farmers have a month or two where all their money for the year comes in and the Feds investigate anyone who deposites $10,000. This has caused financial hardship and even loss of farms as Feds freeze their accounts.
    Big Government is not helping small farmers, it’s killing them, that is why they vote Republican and are looking for less Govt, not more.

    • Submitted by Matt Haas on 01/15/2018 - 07:03 am.

      Sorry Joe

      But it isn’t big government that forced seed companies into patenting their wares, it isn’t big government that drove some farmers into turning their milking operations into 1000 head megaliths to drive their neighbors under. That’s your old pal capitalism, rearing its “chaotically destructive” head. When your only goal is profit, the ultimate efficiency of monopoly will always be the end result. What little regulation that remains is the ONLY thing staving off complete extinction of the small family farm, and even then, only just barely.

  4. Submitted by joe smith on 01/15/2018 - 08:36 am.

    No Matt, we are talking small farmers.

    The big mega farms are a different animal. No one forced a 2 section farmer into a 1000 head milking operation. Most small farms never thought about going into mega production. They were too busy trying to manage their farm, not someone else’s operation. Those farmers are getting killed by Federal & State rules and regulation. Blaming capitalism is laughable. Blame the crushing permitting fees the farmer pays just to farm his land. Blame the Clean Water Act run amok, the farmer has to fight to farm his land because water pools in certain spots after a big rain.
    Blaming capitalism is a good try but that argument doesn’t hold up when you look at the actual issues hurting small farmers.
    Add in the property taxes increasing to double the past 10 years. Then for good measure add the estate tax and you will see what is causing small farms to fold. That is why farmers vote GOP, it is not because they are dumb and vote against their own interests, as many claim.

    • Submitted by Tim McCarthy on 01/15/2018 - 01:53 pm.

      Commodity prices

      Are at historic lows. That, not regulations, is the cause. Until supply meets demand prices will stay low. Perhaps regulations that took marginal cropland out of production would ease the oversupply and help prices to rise.

  5. Submitted by Jim Young on 01/15/2018 - 11:51 am.

    More on the Land Stewardship Farm Beginnings

    Interesting that the Schwagerls mentioned in Mr. Grow’s piece were in the Land Stewardship’s Farm Beginnings classes and are featured in the latest Land Stewardship newsletter. (See page 20)

    Also of note is that the Schwagerls are not doing what some might consider the “modern” method of farming – row cropped monoculture or large feedlot livestock operation. They are running a small, diversified operation producing both cash crops and raising livestock using much of what they grow on their farm for livestock feed. They even installed their own feed mill. They credit the Farm Beginnings classes with providing them the educational tools to evaluate different options for making their farm both environmentally sustainable and profitable.

  6. Submitted by Tiffany Tripp on 01/17/2018 - 10:05 am.

    MN-SFA and other resources make it possible to farm in MN today

    I believe that it’s possible to be a farmer in Minnesota today by adapting, being creative, resourceful and working together. My partner and I started farming three years ago. Our farm, Graise Farm, a diverse livestock farm focused on ethically raised animals and sustainable farming practices, sells products directly to consumers and through wholesale. We are fortunate in MN to have several farmer training programs available to beginning and experienced farmers. In our first farming year, we began participating in Minnesota Sustainable Farming Association(SFA) chapter events, workshops and conferences. Early on, SFA provided us with hands on training through their Deep Roots Farm Skills 101 class that influenced how we farm today. Through SFA, we have found mentors and continuous education to build our farm skills and broaden our opportunities. SFA specializes in soil health education, something that is useful to all types of farmers, offering workshops and conferences throughout the year. We also participated in LSP’s Farm Beginnings Class that helped us create a farm business plan and network with other beginning and experienced farmers. SFA and LSP are not the only resources for farmers, there are many including universities, technical schools, extension, etc. As with any business, it takes a team. Working together and utilizing resources, to keep on learning and evolving, can create a successful farm.

  7. Submitted by Robert Moffitt on 01/19/2018 - 09:23 am.

    Everyone’s an expert

    Reading the comments, I’m struck by how many strong opinions non-farmers have on how someone else’s business should be run.

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