VALLEY SPRINGS, S.D. (Dakota News Now) – Located in Valley Springs,a brewery is marking the transition to licensed retail and wholesale operationsThey claim it will not only assist them in their business, but also benefit local farms.
A Homestead Brewis located on the land of a fourth-generation farm owned by Lee Anderson and his family.
Collaborating with the South Dakota State Extension Office and the Specialty Crop Program, the brewery transitioned out of operating under cottage laws. He mentioned that this creates opportunities that have never been available in South Dakota before.
“It simply creates a new creative path for showcasing culinary art in the area,” Anderson stated.
Lee Anderson stated that the cottage production model was effective initially, but eventually, cottage laws became a hindrance to the expansion of a Homestead Brew.
“Then the issue, the bottleneck turned out to be once I sold it to you, how do you then sell it to the customers in a restaurant or a mocktail, or how are you meant to place my honeys on your shelf at a retail location?” Anderson explained.
He mentioned that the change enables them to sell their products in additional locations. Over time, they have transitioned to agritourism and cultivating unique crops such as elderberries, apricots, or different types of raspberries. He noted that these specialty crops pair well with drink production and serve as a smart approach to establishing a presence in the market.
It’s extremely challenging for me to compete with Cisco or US Food when it comes to the price of raspberries or blackberries,” Anderson explained. “I simply can’t produce enough pounds [of produce] to match them. Expanding into high-end specialty crops is a specific area for us to utilize in mocktails, cocktails, or menu pairings for vertical integration.
He produces a variety of items including beers, hemp sodas, and other products. Additionally, with a grant, he plans to convert their kitchen, which is currently a wholesale processing-licensed facility, into a commercial juice processing operation.
“I can assist other farms in growing fruits, or I can help with processing those fruits. This will be a free service provided by our farm for pressing juices or soups and similar items to distribute to people,” Anderson said.
However, for Anderson, it goes beyond just ensuring his multi-generational farm thrives. It’s also about witnessing other farms prosper due to the grant they will obtain and the new equipment they will acquire. He sees it as a connection that links various stakeholders together.
“There are many individuals who want to get involved, but may lack the knowledge or the necessary tools. Several retailers aim to obtain products locally. I can’t cultivate everything. Bringing everyone together makes a significant difference for numerous farms,” Anderson stated.
It is particularly important for other farms because if they wish to follow the same process, it would be expensive and difficult to learn the regulations, obtain a license, and secure a location for such a facility. Anderson mentioned that it is not something a farmer with a roadside stand can manage.
Although the service is free of charge, there will be expenses related to the labor. Only a small number of family members, including Lee, are authorized to use it.
Freshly grown ingredients are typically available only at local farmers’ markets, but connecting farms directly to stores can help alter this situation.
The individuals who will gain the most are our customers, our friends, and our family since these ingredients are [chef’s kiss].
Although there are still some challenges to overcome and the necessary equipment is not yet available, Anderson described this as a significant milestone. He mentioned that several farms have already shown interest in collaborating in the future. The grant will be in effect for three years, after which state agencies and A Homestead Brew will reassess the situation.
