Strohus comments on bidding option for perennial crops

We’re a little bit progressive, and conservation is really important to us. I think there’s a lot of benefit that can be achieved with this type of farming.”

John Strohfus of Strohfus Farms

The Hastings City Council voted to against having a traditional corn/soybean crop rotation on 82 acres of farmland it leases out in the Hastings Industrial Park.

The property is currently listed with a real estate company looking to find a big development. As in past years, it brings some money into city coffers with an agricultural lease.

This year, the council didn’t accept city staff recommendation of a high bid of $233 per acre from Dave and Joe Birk for corn and soybeans, $19,106 annually. The city had also asked bidders for a low nitrogen perennial crop. The lone bidder for that was Strohfus Farms of Denmark Township at $100.05 per acre for a total annual lease of $8,204.10.

Councilmembers said that with nitrates a problem in city water, it was time to go a different direction with the lease, despite leaving nearly $33,000 on the table over the three year lease agreement.

John Strohfus of Strohfus Farms spoke to the council in the public comment portion of the meeting. He thanked the city for adding the new bidding option for perennial crops.

“We’re a little bit progressive, and conservation is really important to us. I think there’s a lot of benefit that can be achieved with this type of farming,” he said.

He said the bid for this type of farming is lower “because the economics are significantly different.”

“We appreciate the innovative new bid option this year to plant a perennial crop which supports a progressive farming/regenerative mindset not all farmers are yet suited to manage,” Strohfus said.

Strohfus operates Field Theory Foods.

“We have been very engaged in the farming/agronomy side of soil health in organics and the food supply chain side. We believe we can make a perennial crop work on the 82 acres of land,” he said.

He said the bid is lower because of higher costs for crop establishment and higher overhead in this type of farming.

“We are bidding to achieve the soil/water benefits of this program at a bid rate that allows us to not operate at a loss. If we prove successful over this three-year term, we would eagerly bid again under the same program at a potentially higher price and continue the conservation benefits,” Strohfus said.

The hemp grain and hemp seed produced by Field Theory Foods are used in a variety of food products.

Hinzman told the council that it was staff recommendation to go with the Birk bid because of the difference in bid price and because there was just one bid for the other option.

“The bid was significantly lower than the other bids. It’s very difficult to try to evaluate something competitively when you have one bid, and that one bid is lower than the rest of them. I appreciate what we’ve done this year as far as bringing forward the bid and trying something that could be a low nitrogen input crop,” said Hinzman.

Ashley Gallagher of the Dakota County Soil & Water Conservation District attended the meeting. She had worked with city staff in putting together the low nitrate bid option.

“There are direct groundwater drinking water benefits to switching crop rotations to perennial rotations. We’re working on turning those into economic benefits for a farmer and for the city too,” she said.

Councilmembers agreed that was the direction the city should take.

“I don’t agree with the staff’s recommendation to award for a corn crop, the reason being, this is my seventh year of being on the city council, and nitrates have long been a problem here within our city,” said Tina Folch. “Historically, it takes government oftentimes to take the lead in environmental types of initiatives…Are we surprised that the low nitrate option comes in as the least profitable at this point? No. We only received one quote, and why is that? Because it’s probably not as profitable. Just like any kind of green initiative that’s out there, oftentimes at the inception when you’re trying to have a movement occur, the most cost effective measure isn’t the green infrastructure type of initiative.”

“I absolutely agree with you on this,” said Lisa Leifeld. “It’s really hard to talk about the farms around us and what’s being put into the groundwater and not be doing it within the city limits. We have so little farmland within the city, even less farmland that we get to make this decision on. This is our land. This seems like the right time for us to make a decision that says we’re not just talking the talk. We’ve got an opportunity here to do something different. Money’s nice. We need money. We’re a city and it’s expensive. I get that.”

Dave Pemble agreed.

“Thinking about nitrates and the issues that have been in front of everybody for a number of years, I think it only behooves the city to make a step forward,” he said.

The council vote for the Strohfus perennial option was unanimous.