Sale means ‘We're getting ready to see a new era of agriculture in Alaska,’ state Farm Bureau president says
A Delta Junction-area farmer has sold nearly 5,600 acres to a Nevada-based agricultural entrepreneur for about $6 million. The state Farm Bureau president says he believes it’s the biggest farm sale in Alaska history.
Some might think a guy who just made six million bucks on a land sale would be celebrating his windfall on a cruise ship somewhere off the Bahamas. But last week, Mike Schultz was doing what he usually does this time of year.
“We're harvesting barley today,” he said during a break in the work. “We've got about 1,500 or 1,600 acres of barley planted this year on this farm. And we're about a third of the way through that harvest.”
Schultz was hustling to get it done, because recent rains delayed this year’s harvest on the farm, located about 25 miles south of Delta Junction.
“Whenever the weather's good, you better be running,” he said, “better have your equipment ready and be going.”
He should know -- he’s been working the farm for more than 40 years -- and still is, for now. The deal closed in July, but Schultz and his brother and business partner, Scott, offered to help the new owner, Nevada-based farmer Alan Boyce, harvest the crop.
“ We told them we'd be around to help them this fall, if they want us to,” Mike Schultz said. “ We aren’t going very far – we aren’t going anywhere! Alaska will still continue to be our residence.”
The Schultz brothers sold 5,600 acres, along with the barley growing on it and some assets that include farm equipment and buildings. But they kept their houses and a few thousand acres because Mike says they’re not yet ready to fully retire.
“Well, I'm 75 years old,” he said, “ and my brother's 68, so we probably won't retire from working and being busy. But yes, it's time to maybe do some other things.”
The deal marks an important milestone in the history of Alaska agriculture, says Scott Mugrage. He’s a Delta Junction-area farmer and president of the Alaska Farm Bureau. And he says the deal between Schultz and Boyce is the biggest farm sale in the state’s history.
“It was a huge deal, and I congratulate (the) Schultzes,” Mugrage said. “They've had it for sale for quite a while and waiting for that right buyer to come along. And they finally found him.”
Boyce said in a phone interview Thursday that he decided to buy the Schultz property after visiting in April. He studied the area’s climate, soils, location, even its geology -- all of which convinced him that its 145-day growing season would enable him to farm profitably.
“ They're pretty dry 50-page reports,” he said, “but you get a good idea how the geology forms on the north slope of the Alaska Range, and you've got this kind of perfect spot for agriculture.”
Back at the farm, Clayton Griffith was hard at work last week in that perfect spot. He’s the new farm manager and he took a break from the harvest to marvel at the crop -- and the scenery.
“ We have a passion for building agriculture in unique places,” Griffith said. “Nice fields, fertile soil – I mean, what a beautiful place! One of the best farm settings in the world, really.”
The sale didn’t come as a complete surprise. Schultz said he and his wife, Sandi, and brother have for years been talking about selling a big chunk of the farm. He said they decided to go ahead with the sale after their adult children declined to take over the operation and instead pursued careers in Fairbanks and the Seattle area.
“ Some of the young people, they have other ideas, other careers they want to pursue,” Schultz said. “Which is just fine, you know, if they're going to be successful doing something else, why, more power to 'em!”
Schultz declined to disclose the exact sale price, but he said “it was close to our asking price.” The property was listed by Montana-based land-sale broker/adviser Fay Ranches for $6.75 million.
Mugrage, the Farm Bureau president, says he’s optimistic that Boyce will boost the farm’s production, expand the operation and improve Alaska’s ability to feed the people who live here.
“ We absolutely got work to do” to improve the state's food security, he said. "But I will say that the type of people that bought this farm signal that we're getting ready to see maybe a new era of agriculture in Alaska.”
Boyce and his crew will begin work on that new era in earnest when they begin planting next spring.
