Investing in the expansion of small grains, particularly oats, will create a three-legged stool that produces economic, agronomic, and environmental benefits for our farmers and state.
Small Grains
The Current State of Production:
Over the past four decades, Midwestern small grain production has dropped steeply as corn and soybeans, benefiting from a commodity-centered policy environment, dominate ag acreage.
A case study of this issue may be seen in oats. In 2022, U.S. farmers produced oats on less than 900,000 acres. Meanwhile, Canada, which is now the world’s largest exporter of oats, grew 3.9 million acres of the grain that same year. The U.S. is now the world’s largest importer of this grain.
The time to act on this opportunity is now: with growing demand from the food industry and a strategic opportunity to position Minnesota as a leader in sustainable agriculture, this investment will generate long-term economic growth while protecting our natural resources.
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US oat acres dropped from 8.6 million in 1991 to just 900,000 in 2024. In contrast to the shrinking number of oat acres in the U.S., the $5.16 billion market for the grain in this country is projected to have a 7.8% return on investment between now and 2030.4 -
Minnesota farmers already supply a portion of the market for oats, but we’re currently importing a large volume from Canada to meet demand for food processing. With a growing consumer trend toward healthy, sustainable foods, oats present a prime opportunity to build a resilient, locally-driven supply chain. Within the U.S., demand for oats has been rising due to the popularity of products like oat milk and gluten free products. -
According to one market analysis, US oat sales climbed almost 45% during the 2022 growing season. General Mills and Grain Millers, two of the top 10 companies with the largest oat market shares, are based in Minnesota. Both General Mills and Grain Millers purchase most of their oats from Canada -
Over the past four decades, Midwestern oat production has dropped steeply as corn and soybeans, benefiting from a commodity-centered policy environment, dominate ag acreage.