From Prairie roots to global reach: Farming group wins big from investment in diversification
When homesteader Allen Vivian first broke land near Luseland, SK in 1908, he set a tradition of husband and wife farming teams that has continued for four generations.
Today, Holman Farming Group is virtually unrecognizable from that first modest wheat farm. But husband and wife duos are still leading the way.
Allen’s great-grandson Dan Holman and his wife Stacey, along with Dan’s parents Rod and Gayle Holman, run the farming operation. Dan and Stacey also partner with Jesse and Shauna Bruce on a successful grain processing facility.
The operations include a thriving wheat, canola and pulse crop farm, a processing mill, and a railcar siding for more accessible shipping and customers all over the world.
Like all family farming operations, the business has had to evolve over the years to keep growing. A big part of that growth has been found in diversifying both their operations and customer base.
One of the functions of entrepreneurship is always being scared about where your next paycheque will come from. One of the ways we manage that is by focusing on diversifying.
Dan Holman
Co-owner, Holman Farming Group
Market diversification critical to farm’s continued growth
Dan and Stacey first got involved in the Holman family farm in 2007. They immediately began looking at ways to develop the business, starting with hiring more operational staff to grow their capacity.
By 2019, they had a chance to purchase a local grain elevator with a railcar siding—a short railway track section connecting to a main branch line. It has allowed them to expand their shipping capabilities.
“We use CP to deliver railcars of grain to our customers, CN to deliver domestic intermodal and export shipping container grain to our customers. And we use our own fleet of trucks and trailers to deliver grain to our domestic customers that can receive bulk Super B loads,” says Dan.
In 2020, he approached his old ag-school friend Jesse and his wife Shauna about moving to Luseland to build a processing plant together. The plant was built in 2022.
“This past year we started exporting to South America, Asia and Europe as well as some higher end customers within Canada,” says Dan.
“Currently, India is Canada’s largest pulse customer, and China is Canada’s largest canola customer in the export market. However, we are seeking different markets for our production to diversify. For example, we are shipping lentils to Europe and South America to help spread out the business and risk concentration of just shipping to India.”
Diversification is also about new products
Diversification is key for any business that wants to stabilize and grow income. This rings true for Holman Farming Group as well.
“One of the functions of entrepreneurship is always being scared about where your next paycheque will come from. One of the ways we manage that is by focusing on diversifying,” says Dan.
“We look at many factors as we cycle through crop options, economics being one of the biggest. For example, we used to grow malt barley as a staple but when we recognized that the net value per acre of soft wheat was greater, we switched. It’s a continuous process of optimization.”
The group’s diversification extends beyond the crops they grow. Stacey says owning and operating a custom processing plant has helped open domestic and overseas markets they couldn’t access as a strictly farming operation.
“Different customers want specific qualities in their grain. We can process to their specifications and get a better price for our product and give our end-customers a better value because they have a direct line of communication with the producer,” she says.
Having someone responsible for developing new markets is key
Hiring sales and marketing coordinator Willem Hoogstad has also been critical to entering new markets. He’s notably been responsible for marketing their business overseas.
“We went to a food and ingredient show in Germany last year which had a focus on plant-based protein alternatives, particularly pulses. The Saskatchewan government went to a show in London and made more headway there. And we’re following up further with potential customers in South America and Europe,” says Willem.
The goal for these types of visits is to establish long-term relationships with companies that buy grain at high volumes.
“We’re looking to enter longer contracts with companies that provide large chains with falafels, for example. If we know they need good-quality chickpeas for the next five years, that will help us decide what we want to grow,” he says.
It’s a matter of picking which area is the best use of time and money and digging into that.
Dan Holman
Co-owner, Holman Farming Group
Focused on long-term relationships
One of the keys to the Holman Farming Group’s growth trajectory has the focus on quality over quantity, in both their crops and the customers they serve.
“Building long-term relationships is really important for us. It’s a big world but a small industry and we only have one opportunity to make a good impression. We’re committed to sending out a product our customers like and that serves them well,” says Jesse.
Dan agrees. “We’re happier with lower processing speeds and higher quality so we can commit to sustainable growth.”
He points to a relationship with a flour mill they’ve supplied for almost a decade. We’re among a small number of companies that have been approved to sell to the mill and our share is continually increasing because of the quality of our products.”
“We want to create the same reputation in the pulse crop industry.”
Maintain a variety of sales channels
While Holman Farming Group has succeeded by diversifying, Dan is quick to note that it’s not easy.
“There’s an element of risk in everything. You can’t get ahead without making investments and sinking time into areas that you can’t guarantee will pay off. It’s a matter of picking which area is the best use of time and money and digging into that,” he says.
When it comes to acquiring customers in different markets, Dan says there are three ways they currently do that:
- selling to third-party trading houses
- working through a commissioned broker to facilitate transactions with known customers
- developing direct relationships with customers who don’t have a broker
“We need all three types of relationships in the exporting business. If you get a year where the crop quality isn’t as good or the markets change, you need that trading house that can ship it somewhere else. And it’s good to have those one-to-one connections as well,” says Dan.
“We’ll always have these relationships. Some are more enjoyable than others, some are more beneficial than others but they all matter.”
He says they’ll also continue to have diversity in their partnerships with food customers and trading houses. “It’s good to spread out and try new things with a few containers here, a few railcars there. We want to always be in the market of buying and selling.”
As for the future of the business, they have an eye on creating something sustainable for the next generation.
“We have four young kids at home and so do Jesse and Shauna. We’re trying to build something that will offer an opportunity for the next generation of kids to come into,” says Dan.