While organic production could provide some farmers new opportunities for premium prices, other Illinois farmers produce premium crops based on long-standing family traditions.

Food-grade grain production

Jeremy Wolf, a fifth-generation farmer from Homer, says his grandfather Dale Wolf sold land to Frito-Lay for its Sidney corn facility during a 10-minute phone conversation.

“He knew it would be good for the area farmers,” Wolf says. “And we’ve been growing white and yellow food-grade corn for Frito-Lay ever since.”

NICHE GROWERS: Farmers like Jeremy Wolf, Homer, are already growing niche crops for a premium price. His family has delivered food-grade corn to Frito-Lay since the early 1980s.

Wolf notes that his crop plans vary from year to year, based on the amount of continuous corn acres, but typically, two-thirds of the corn is contracted for Frito-Lay production.

He explains that Frito-Lay producers sign a basis contract with a quality premium. Growers receive a quality premium for their contracted bushels determined by a combined score that is based primarily on cracked and broken kernels. Each truckload of corn delivered on contract is inspected to ensure it meets a defined set of standards. It is graded and assigned a quality score, and a premium is given. As with any contract, certain criteria must be met. If standards are not met, or out of the range predetermined in a contract, the load may be rejected.

“In a low commodity market, that premium is well worth the additional steps taken to produce the crop,” Wolf says.

Proximity to a receiving and processing facility is key for Wolf, but an obstacle for many farmers. However, there is one potential emerging market that more Illinois farmers may be able to take advantage of in the near future: high-oleic soybeans.

New soybean market ahead?

WORTH THE EFFORT: “In a low commodity market, that premium is well worth the additional steps taken to produce the crop,” says Jeremy Wolf, who contracts two-thirds of his corn for Frito-Lay food-grade production.

Sheldon farmer Kyle Lottinville is heading into his fourth year planting high-oleic soybeans. He plants roughly 20% to 25% of his acres into high-oleic soybeans and receives a 40-cent premium on his contracted high-oleic beans.

Again, it comes back to proximity. Lottinville lives 20 miles away from the Fowler, Ind., ADM facility, an elevator that accepts high-oleic soybeans.

Unfortunately, today, very few Illinois farmers can take advantage of the high-oleic market as Illinois processors wait for European Union approval to accept the grain. Russ Sanders, DuPont Pioneer, says they hope to have EU approval by midyear, in time for farmers to make 2018 crop plans. He adds that efforts are already underway to bring Illinois processors on board, so the market is prepared once approval occurs. 

Related: High-oleic soybeans in Illinois