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Research institute in Crookston grows ideas MN cropsCROOKSTON, Minn. (AP)--Wheat from about 15,000 acres of Minnesota fields will end up in kitty litter boxes worldwide this year. Pet Care Systems in Detroit Lakes manufactures and markets Swheat Scoop cat and small-animal litter from nonfood-grade wheat grown mainly in northwestern Minnesota. "Business has been good. And we couldn't have done it without AURI," said Mark Hughes, general manager of the 20-employee company that was founded in 1993. Ventures such as Pet Care Systems are the Crookston-based Agricultural Utilization Research Institute's bread and butter. The nonprofit, state-funded institute and its staff of scientists and marketing specialists have helped Minnesota's rural economy for 19 years through ag-based research and front-money. A sampling of projects in which the institute has been involved: --Cornstalk-based mats that could reduce baby-pig mortality rates in hog operations. --An organic flour mill. --Using ash from the burning of renewable energy to fertilize crops. --A buffalo-manure compost blend for mulch and fertilizer. --A gasification plant that runs on wood chips, corn cobs and other biomass. Besides its historic mission, the primarily state-funded institute is also charged with playing a key role in developing Minnesota's renewable energy industry. That includes sponsoring statewide renewable energy roundtables that bring together government officials, academics, companies, business associations and nonprofit organizations. More than 200 people from 60 organizations have participated in the roundtables, which began in 2006. "We're here to be a resource, and we're proud of filling that role," said Theresa Spaeth, the institute's executive director. AURI was formed in 1989 when area agricultural leaders persuaded state government that finding new uses for crops grown in the state could help boost Minnesota's ag and rural economies. The institute is living up to its mission, say those familiar with its work. "It's a great resource for agriculture," said Dave Torgerson, executive director of the Minnesota Association of Wheat Growers. The institute has worked on several projects examining alternative uses for wheat. Spaeth said institute staffers sometimes say its ideal project would involve turning wheat straw into baseball bats. Wendy Lange is another fan of the institute. She and her husband, Mark, run Dry Weather Creek Farms near Milan. The operation includes a small organic flour mill. The Langes have worked with the institute, especially food scientist Charan Wedhawan, to develop new recipes and products using flour produced at Dry Weather Creek Farms. Wendy Lange and Wedhawan tested a new muffin recipe earlier this winter. "A small business like ours is helped so much by getting expert help like this," Lange said. The institute has provided up-front financing and technical help for Otter Tail Ag Enterprises, which is completing a 57.5-million-gallon ethanol plant near Fergus Falls. "It was just crucial," Kelly Longtin, Otter Tail Ag Enterprises' president and chief executive officer, said of the institute's role in the plant. A big part of the institute's mission is steering people away from risky ventures, Spaeth said. "It isn't just about telling people what's possible," said Michael Sparby, a project coordinator for the institute. "It's about telling them what makes sense economically. Risk mitigation is a big part of what we do." Greg Kennedy knows all about that. Kennedy wanted to launch a big cranberry farm near Aitkin in the late 1990s. The institute advised him the venture was risky. Kennedy, then a Minneapolis business owner and now a Twin Cities banker, decided to go ahead, but on a much smaller scale than he originally intended. Good move. "The price of cranberries imploded and I ended up just walking away from my investment," Kennedy said. Without the institute's advice, his investment and loss would have been even greater. State government's budget problems earlier this decade led to budget cuts that forced the institute to reduce staff from 34 to 18 employees. The state's budget picture later brightened, which allowed the institute to rebuild its staff to 26 positions. Now, though, the state's economy appears to be weakening again. Gov. Tim Pawlenty and the state Legislature are wrestling with an anticipated $935 million deficit. Spaeth said she's heard nothing to indicate that state economic problems could lead to another round of budget cuts at the institute, which has a $5 million budget this year. "So far, so good," she said. Cutting spending on the institute doesn't make sense, said Rep. Al Juhnke, D-Willmar, chairman of the House Agriculture Committee and a member of the institute's board of directors. The institute has shown its value repeatedly and is more important than ever, given the growing attention to biofuels, he said. The center recently won a big victory, receiving $984,000 in federal funding for the Center for Producer-Owned Enterprise. The online center, which the institute operates, provides technical assistance for projects involving renewable energy. Swheat Scoop typifies what the institute hopes to accomplish, namely finding new uses for Minnesota products and making them more valuable in the process. A bushel of wheat contains 60 pounds of the grain. Wheat typically has sold for about $4 per bushel in recent years. At that price, a pound of wheat is worth about 6.6 cents per pound. Wheat prices have skyrocketed this winter. At the current record price of $18 per bushel, which few expect to last, a pound of wheat is worth about 30 cents per pound. Contrast that with a 14-pound bag of Swheat Scoop, which typically retails for $8.99 to $12.99 per pound. At those prices, the wheat in those bags is worth about 64 cents to 93 cents per pound. Even though many crops grown in Minnesota are enjoying record high prices, it still makes economic sense to add value by finding new uses for them, Spaeth said. "That's been our mission since we began. And that's not changing now," she said. 4/7/08 Date: 3/28/08 Advertisement
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