GRASS-ONOMICS: Can Farming Grassland Pay Off?

No, we’re not growing and selling “weed” (marijuana), just real prairie grasses like big bluestem, Indian grass, and switchgrass. Last year (2012) marked the end of the 5-year trial period for the Prairie Farm. Could we successfully establish diverse and productive stands of grass on former cropland (itself established a century ago on former grassland!) and make a good living from the sale of grass products? Well, the sales and economic data are in……….and we have a positive story to tell. According to an independent agricultural economist, Dr. David Archer of the Agricultural Research Service, gross income from the Prairie Farm In year 5 (2012), during a century record drought, was about $140,000. The income was divided roughly evenly among 3 income streams: forage hay, native grass seed, and grass-fed beef. Most forage hay was sold to a hay buyer in Sioux Falls. Prices were good because hay supply was down in our area, and our drought-adapted, native grass produced very well. Our seed production (primarily switchgrass and prairie cord grass) was off a bit from wet years, but higher prices caused by low supply, more than made up for the lower yields in dry weather. We have sold about half of the 8,000 lbs. of grass-fed beef produced in 2012. Many individuals bought bundles and quarters. Two progressive markets in Sioux Falls (Natural Food Coop and Pomegranate Market) sell our burger, steaks, roasts, and certain specialty meats (beef bratwurst). Two restaurants offer meals using our beef, the Cottonwood Bistro in Brookings and Parkers in Sioux Falls (near the Pavillion). Dr. Archer figured that the profit in 2012 was about $60,000 (not factoring in land rent). So if a producer had a small farm the size of the Prairie Farm, and owned the land, our type of grass farming would generate a good income sufficient for a family of four. Once all of the land on the Prairie Farm is producing a peak rates, we think gross income could reach near $200,000. So Dr. Archer’s calculations give us hope that producers in our area could shift to perennial grass-based agriculture and make a living. Producers on smaller farms may have an alternative and not be stuck in the corn-soybean rotation cycle with high input costs.