Revitalizing the Family Farm:
From Raw Products To Organic Peanut Butter 
by Keith Richards 
(Original story is from Southern Sustainable Farming, issue no. 20, Fall 1998, published by Southern SAWG.) 

Luke’s Pure Products
Green Farm
Luke and Clinton Green
Banks, AL
400 acres
Crops: 80 acres of conventional peanuts, 20 acres of organic peanuts, 150 beef cattle
Sustainable practices: rotations, reduced chemical use, value-added products 
 
By most measurements, Clinton Green is one of the finest farmers in Pike County, Alabama. With a rotation of peanuts, corn and pastured cattle on his third generation farm, he has maintained the fertility of his soil while producing high quality crops. His peanut yields consistently surpass the county average, winning him several production awards. One of his calves was named grand champion at the county steer show in 1996 and another was the reserve champion in 1997.

But the economic side of farming is a harsh judge. While attending a banquet for top yielding peanut producers in 1996, Clinton saw a presentation on the phase-out of the peanut program. Under the deceptively titled “Freedom To Farm” legislation, production quotas and price guarantees will be phased out by year 2002. It became clear to him that even if he could raise two tons to the acre -- an almost impossible feat -- he would eventually only break even on his crop. One hundred acres of peanuts and 150 head of cattle weren’t going to keep him in business as the prices for those commodities declined and costs continued to rise. 

Can We Grow Organically?  

Clinton’s son, Luke, who had recently moved back to the farm, had heard that organic crops were bringing higher prices. Rather than switching to raising chickens for poultry integrators like many of their neighbors had done, or giving up on farming all together, Luke convinced his father to let him grow a few acres of peanuts organically as an experiment. In 1996, he plowed up 2-1/2 acres that had previously been in pasture and planted his first plot.

Luke says, “I didn’t know what I was doing. I threw chicken litter and lime on the ground and later sprayed the plants with some seaweed.” By applying basic growing techniques learned from his father and a little luck, though, that test plot yielded 2,700 lb/acre (compared to the county average of about 2,600 lb) and Luke was convinced that he could grow an organic crop.

Obtaining a fair price was another matter. When he was offered only $.88/lb. for the shelled peanuts, Luke realized that selling a raw product was still not going to keep their farm in business. “There are too many people in the middle between me and the store,” he says. “You’ve got to create another job on the farm, and cut some of the middle people out.” So he decided to make peanut butter, calling his new business “Luke’s Pure Products.” 

Creating a Kitchen and a Product 

“You have to be stubborn and have patience” when you do something different on your farm, says Luke, “because there are a lot of brick walls that you will come up against.”

Since the state of Alabama doesn’t have an organic certification agency, he convinced the Georgia Organic Growers Association (GOGA) to come over and certify his land. He also had to find a local sheller willing to run his small batch of peanuts separately and get their plant certified. Then he had to figure out where to do the processing.

After weighing several options, Luke decided to build a small processing kitchen in an old building on the farm. A friend from the local health department helped him wade through the regulations before he drew up plans. Then he scouted around the countryside for used equipment; finding sinks, faucets, a water pump, and a stainless steel table. He had a locally-built propane grill modified into a roaster. A peanut mill (grinder) was the only piece of equipment that he bought new. The whole kitchen cost him less than $5,000 and can process 50-60,000 lbs of peanuts per year.

Once the kitchen was in place, he ran numerous test batches to fine-tune his roasting and butter-making process. At the same time, he began networking with GOGA members to learn how other farmers packaged and marketed their value-added products. “Skip Glover was very helpful right from the start, and Mary and Bobby Denton offered to sell my peanut butter at the all-organic Morningside Farmers Market in Atlanta.”

“My first batch was in mason jars and it was so dry that you couldn’t hardly swallow it,” laughs Luke. That didn’t stop him from getting his product out, though. He figured that the only way he could improve was to have potential customers eating his peanut butter. With their feedback, he knew he could perfect his roasting process to make each batch better.  

Larger Acreage and Healthy Plants 

In 1997, Luke increased his organic production to nearly 7 acres and beat the county average yields for the second straight year -- because of a drought they were around 1,500 lb/acre. This year he is raising 20 acres both organically and on irrigation for the first time, and the plants look as pretty as any in the county.

Following his father’s practices, Luke rotates the peanuts with Bahiagrass pasture and corn. They disc the Bahiagrass in the fall, drill in winter ryegrass, and spread poultry litter once a year. They either cut hay or graze the grass for 3-4 years, then turn it over and plant peanuts for 3-5 years, followed by corn for one year. Luke feels the grazing on Bahiagrass helps return nutrients to the land and takes some of the toxic residues out.

Although he applies broiler house compost to the organic peanut land in the fall, Luke would like to switch to a cleaner and more finely-tuned commercial compost if it can be cost effective. Believing that calcium is the most important factor in growing healthy peanut plants, he also adds high calcium lime at 1-1/2 tons/acre. “The peanuts could use three tons of high calcium lime,” he says. “That would really help with disease problems.” He has experimented with foliar feeding fish emulsion and seaweed, and believes 3-4 feedings per year would increase the health of his plants.

“The biggest problem in growing peanuts organically is dealing with weeds,” Luke says. Chicken litter contributes to the problem by spreading weed seeds, especially pigweed. He uses timed cultivations with a 4-row cultivator as his main form of weed control.

Since thrips can spread the tomato spotted wilt virus, Luke delays planting until nights are warm enough to discourage them. He says, “Thrips aren’t a problem when it gets hot. They like cool nights.” Clinton believes that leaf spot will be his major nemesis in the long run, but it hasn’t been a problem yet. Luke concentrates on plant health as a deterrent to all fungi and disease. He also monitors for cut worms and army worms, but hasn’t spayed any Bt yet, because populations have been below economic thresholds. 

Tireless Marketing 

In two years of marketing, Luke has made hundreds of phone calls and put in thousands of miles on the road. “I loaded up my car with peanut butter and drove all over selling it.” He is constantly gathering information while gently urging buyers to try Luke’s Pure Peanut Butter. Through his efforts, he has expanded his markets to several independent natural food retailers, who he praises for being very supportive of his product.

“Stores like Life Grocery in Atlanta, Earth Fair in Asheville, Deep Root in North Carolina, and Mustard Seed Market and Cafe in Ohio all gave me a chance early on,” he says. Now he is working with distributors like the Ozark Cooperative Warehouse to reach customers beyond his personal radius.

Luke has a five-year plan to build a bigger processing facility, add other peanut products, and grow his markets steadily, keeping a continual supply of top quality products. “You need to have the highest quality on the market,” he says. “Quality will take you further than anything else you do.” He also is experimenting with growing organic vegetables to fill the slow times in his season.

Meanwhile he is reinvesting all of his profits back into the business. By shifting to organic methods, adding value to crops, and diversifying his income; he believes his farm will be thriving in a few years when others around him are gone.