Farmer Tom Smude of Pierz, Minn., is also an environmentally minded entrepreneur.
In 1998 Smude, 37, and his wife rolled the dice and bought a 160-acre corn-and-soybean farm and dairy cows for about $200,000. The Smudes, who have two kids, made a living and a life, but it helped that Tom also worked some at his dad's farm-implement dealership in Little Falls.
In 2007, amid a continuing drought, Smude decided to diversify away from the water-and-fertilizer intensive crops and started putting half his acreage in sunflowers, which he alternates with corn.
In 2009, the Smudes built a half-million dollar processing plant on their farm that last year produced 20,000 gallons of Smude's Natural Sunflower Oil that's sold in Coborns and Kowalski's grocery stores, restaurants and cooperatives.
Production will double at the plant this year, which employs five people. And Smude is planning to open another production facility in Pierz.
Smude has been helped by the price of sunflowers doubling to 32 cents per pound since the commodity bust of 2009. And the sunflower oil offers a trans-fat-free oil solution for health-conscious consumers. Smude feeds the byproduct to his 400 steers, a high-protein, low-cost feed that cuts his corn tab.
Smude said sunflowers have cut his fuel, chemical and water bill markedly because sunflowers require much less fertilizer and their long taproots naturally cultivate and return valuable nitrogen to the top soil.
Last week Colleen Landkamer, state director of the U.S. Department of Agriculture, awarded a $298,500 grant to Smude for his ongoing efforts to successfully diversify, invest in value-added processing and employment. The Smude operation is now valued at around $2 million.