August 19, 2016
You probably aren’t ever going to grow seed potatoes, but there may be several things you can learn about starting a farm, ranch or ag business from scratch from Enander Seed Farm.
Tom and Corrie Enander, Grenora, N.D., started a base seed potato business from scratch in 2002. By 2015 the National Potato Council had recognized them as Seed Growers of the Year, and they had sold seed to growers in many of the potato-producing states and provinces in the U.S. and Canada.
The Enanders plant about 200 acres of mini-tubers produced by tissue culture labs and grow them out for other seed growers. Two hundred acres may not seem like a lot, but base seed potato production is a high-value, intensively managed crop. Seed costs alone run $10,000 to $15,000 per acre. Mini tubers cost 50 cents each, and about 23,000 tubers are planted per acre. They usually grow about 50 different varieties and have as many as 100 different seed lots that have to be kept completely separate from each other.
Tom and Corrie say some of the keys to their successful startup were:
1. Market need and timing. When the Enanders started their enterprise, the potato industry in North Dakota and several other states had a great need for a base seed farm that could supply high-quality seed. “It is a challenge to push something into the market that has no demand,” Corrie says.
2. Knowledge. Tom and Corrie both worked in the potato breeding program at North Dakota State University when they were in college. Corrie was raised on a seed potato farm in the Red River Valley. Her father, Neil Jonk, was a potato seed grower for more than 50 years. Tom grew up near Stanley, N.D., on a diversified grain and cattle farm. At NDSU, Tom worked for Dr. Jim Lorenzen, a potato geneticist.
3. Location. As in real estate, success in specialty crops can be all about location. Seed potatoes need extreme isolation from other potato fields because aphids can spread viruses from one field to another. Tom and Corrie found a suitable farm for base seed potato production on the North Dakota-Montana border north of Williston. The nearest field of commercial potatoes is 60 miles away.
4. Resources. At first, the Enanders rented a field to see whether they could grow high-quality base potato seed in northwest North Dakota. They also tested their business model. Eventually, they were able to buy the farm on a contract for deed. A team of advisers has proven to be a good resource, too. The Enanders frequently turn to Gary Secor, NDSU potato specialist, and Neil Gudmestad, NDSU plant pathologist, for advice. North Dakota State Seed Department has been a big help, too, Corrie says.
5. Risk management. The Enanders contract-grow base seed potatoes, which reduces their financial risk. They also grow barley, corn, wheat and other crops on other land that they farm. Being diversified helps balance their risk.
6. Teamwork. Tom manages all of the agronomic chores on the farm. Corrie markets the potatoes and manages the seed potato certification program. “We really enjoy working together,” Corrie says.
7. Customer focus. The Enanders are totally focused on customers. “It’s a tremendous amount of responsibility to grow base seed potatoes,” Corrie says. “The seed is irreplaceable. We literally hold our customers’ future in our hands. It’s something we never forget.”
To learn more, see the Enander Seed Farm website, enanderfarm.com.
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