There is more opportunity in rural South
Dakota than you might think.
The classic formula for a successful new idea is this. First, find a local
commodity that is cheap and plentiful. Second, find a way to convert that
into a marketable product with an identifiable market. Third, find a cheap
method of conversion.
For most people, that information means little in the abstract. But let us
take a look at how it works on a common commodity like wheat.
Wheat is something we have in abundance, and it is relatively cheap. Some
people have taken this common commodity and turned it into a valuable
product called "wheatgrass". In liquid form, it sells for up to $2
an ounce, although it is just ordinary wheat grown to about six inches in
height and then liquefied.
The targeted market for it is the health food industry. One pound of fresh
wheatgrass is said to be equivalent in nutritional value to 23 pounds of
choice garden vegetables. The health benefits of drinking it are claimed to
be many and amazing.
The word "wheatgrass" appears on 855,000 web sites. It appears to
be a booming industry.
Some small farms grow the grain organically, add instructions on “how to
grow your own wheatgrass”, and then sell kits and instructions directly
from the farm.
Health food distributors sell kits consisting of five pounds of grain (they
call it berries), five growing trays, some "organic soil", some
"organic fertilizer" and instructions for about $30.
That's what "value added" agriculture means. Five pounds of wheat
is worth about 35 cents at the elevator. These people have added more than
$29 to its value.
Others specialize in selling the blenders to liquefy wheatgrass. Those range
from $30 to $300 each.
Health food stores sell pallets of growing wheatgrass for $20 each or drinks
for $2 an ounce.
You can order a fifty pound bag of organic wheat from these stores for only
$32.95. That's not bad when you consider the elevator price for non-organic
is less than $4 for that amount.
South Dakota has another unique feature. Much of our wheat qualifies as
"high selenium" which can be another bonus in the right market.
A farmer in Ontario Canada has taken this idea all the way. He grows the
wheat and sells fresh frozen wheatgrass juice directly to the consumers
worldwide. A shipment of 120 ounces of frozen juice is only $200/US.
Now that is value added agriculture! Gold may be wherever we find it, but
opportunity is where we make it.
