Minnesota Oats Industry Gains Strength

By Scout Nelson

Oats were once a major crop in Minnesota, but their acreage has declined over the years as corn and soybeans became more common. Today, new market opportunities are helping oats regain attention as a valuable option for crop diversification.

A new food-grade oat mill valued at $68 million is expected to begin accepting oats soon. The facility plans to process millions of bushels each year, creating a stronger local market for food-grade oats. The growing demand for oat beverages and gluten-free food products supports this expansion and encourages producers to consider oats again. The new processing system also focuses on traceability, linking products directly to regional growers, and shortening the supply chain for food companies.

Extension programs help producers understand how oats can improve farm systems. Specialists explain that adding oats into corn and soybean rotation can strengthen soil health and improve nitrogen use. Oats can be planted after soybeans and may help reduce fertilizer needs for the following corn crop when paired with nitrogen-fixing cover crops. Research also shows that small grains help reduce nitrate losses, support cleaner water, and stronger environmental outcomes.

Planting oats requires careful timing because the crop is seeded earlier than corn and soybeans. While oats can tolerate light snow, late frosts may create risks. As a fall cover crop, oats grow quickly, absorb nutrients, and naturally winterkill, making spring field preparation easier.

The University of Minnesota continues to improve oat genetics with new varieties designed for food-grade markets. The upcoming MN-Amber variety offers strong straw, good grain quality, and higher protein levels, making it attractive for food manufacturers.

Challenges remain, including storage adjustments and market pricing compared to other crops. However, experts believe that additional buyers entering the market could strengthen competition and support gradual growth.

Overall, Minnesota’s oat industry is gaining momentum as new markets, research, and sustainability benefits combine to create fresh opportunities for the future.

Photo Credit: istock-rustic