June 10, 2025 • 36 mins
In this episode of the Whole Grain podcast, we’re heading deep into bourbon country—to the rolling hills of Loretto, Kentucky — where time meets tradition, and grain quality isn’t just important... it’s everything. Today, we’re pouring a glass of something a little different.
We bring in two outstanding guests inn to today’s show, both of Peterson Farms in Kentucky. We have Bernard Peterson, a partner at Peterson Farms, and Dane Gentry, Grain Facilities Manager. Peterson Farms is a family-run operation that supplies numerous famous distilleries. And when we say they’re picky about their grain... that’s an understatement.
We’ll explore why distillers reject grain for just a few cobs on a trailer, how geosmin—the earthy-smelling compound from rain and dust—can ruin a barrel worth $20,000, and why food safety and consistency are the name of the game in this niche but fast-growing segment of the industry. We also touch on a couple other specialties offered by Peterson Farms.
Whether you're a facility manager, a food safety specialist, just a curious grain professional, or love learning how grain gets from the bin to the barrel, this episode is for you.
Grain Elevator and Processing Society champions, connects and serves the global grain industry and its members. Be sure to visit GEAPS’ website to learn how you can grow your network, support your personal professional development, and advance your career. Thank you for listening to another episode of GEAPS’ Whole Grain podcast.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Jim Lenz (00:03):
In this episode of the Whole Grain Podcast, we're
heading deep into bourboncountry, to the rolling hills of
Loretto, kentucky in the UnitedStates, where time meets
tradition and grain qualityisn't just important, it's
everything.
Today we're pouring a glass ofsomething a little different.
Let's get started.
Hello and welcome to the show.
(00:27):
Welcome to the Whole GrainPodcast.
The Whole Grain Show bringsgrain professional listeners
together from 89 countries fromaround the world.
I'm so happy you're joining ustoday.
My name is Jim Lenz, your host,producer and editor of the show
and the director of globaleducation and training at GEAPS
we're.
The mission of the GrainElevator, elevator and
processing society is tochampion, connect and serve the
(00:48):
global grain industry and ourmembers At GEAPS.
We work to be the global graincommunity and thought leader for
the grain industry, which feedsand fuels the world.
This is a show where we bringyou fresh ideas, smart
perspectives andforward-thinking leaders from
across the grain handling andprocessing industry.
We bring in two outstandingguests in today's show, both of
(01:08):
Peterson Farms in Kentucky.
We have Bernard Peterson, apartner at Peterson Farms, and
Dane Gentry, grain facilitiesmanager.
Peterson Farms is a family-runoperation that supplies numerous
famous distilleries and when weare saying, they are picky
about their grain.
That is an understatement.
(01:29):
We'll explore why distilleriesreject rain for just a few cobs
in a trailer, or how jasmine,the earthy smelling compound
from brain and dust, can ruin abarrel worth twenty thousand
dollars, and why food safety andconsistency are the name of the
game in this niche butfast-growing segment of the
industry.
We also touch on a couple otherspecialties offered by Peterson
(01:50):
Farms.
So whether you're a facilitymanager, a food safety
specialist, just a curious grainprofessional, or just love
learning how grain gets from thebin to the barrel, this episode
is for you.
So let's jump right into theconversation and raise a glass
to the power of premium grainhandling.
All right, today we're headinginto bourbon, country, where
(02:22):
grain quality, precision andconsistency aren't just
important, they're absolutelyessential.
We'll explore what it takes tomeet the rigorous demands of the
distilling world.
I'm joined by two outstandingguests from Peterson Farms Dane
Gentry, grain facilities managerand loyal whole grain listener,
and Bernard Peterson, partnerof this family-run operation.
(02:43):
Welcome to the show, bernard.
Welcome to the show, dane.
Dane Gentry (02:46):
Glad to be here, yeah, glad to be here as well.
Jim Lenz (02:49):
Dane, I'll start with you.
I know you've been part of ourJeeps community for a while and
have tuned in regularly to theshow, the Whole Grain Podcast.
Great to have you here.
And again, Bernard, I'm lookingforward to your unique
perspective that you can offerhere.
So, Dane, you've worked at someof the largest terminal
elevators in the country and nowyou're part of a
family-operated farm and grainbusiness in Kentucky.
(03:11):
Tell us about that journey.
What led you to Peterson Farms?
Dane Gentry (03:14):
Yeah, so I'm a Kansas kid born and raised, went
to Kansas State there albeitfor kinesiology, and there's no
translation into what I'm doingnow except for coaching but
joined ADM shortly after that,worked at the 18 million bushel
facility there in Hutchinson,kansas, grabbed that away, got
(03:35):
led to Arden Mills, anothergiant flower producer down there
in Wichita, kansas, andrelocated to Ohio for Arden
Mills and at that point up therein Columbus, ohio, switched
over to distilling with LittleWest Spirits there.
I'm a pretty big producer forthat state and then switched
over to a little bit smallerproducer in Indiana, harb Truth,
(03:56):
and then made my journey downhere and back into grain
handling.
But I've got to see, you know,three years of distilling and
then now, now, lo and behold,supply list for what you do
outstanding thanks for sharing,dean.
Jim Lenz (04:11):
How would you compare your experience of a large
corporate setting to this morefocused, family-driven
environment?
Dane Gentry (04:17):
very relaxed and much needed breath of fresh air,
learned a lot of good corporatepolicies, procedures, best
practices that can translate toa family farm operation, but
it's a little bit more easygoing.
You don't paint yourself somuch into a box and you can
still have that freedom to dowhat's necessary but also to do
(04:39):
what's right.
Jim Lenz (04:41):
And Bernard, could you share your backstory of
Peterson Farms?
I know our listeners are goingto be curious about that.
Add as much detail as you wantto.
And how did the business startand what does the operation look
like today?
Bernard Peterson (04:53):
Well, historically we go back when we
start talking about familygenealogy.
We go back to our Dutchheritage, which started in New
York.
We have 13 generations in theUS.
I think the first ones camebefore the US was the US, but
regardless they've migratedthrough the years, been farmers
in every generation since, so13,.
I'm 13th and we now have the14th generation here at Farming.
(05:15):
Peterson Farms as we know ittoday, we say, started in 1946
with the marriage of our parents.
We've grown from there.
We grew up in dairy operationhogs had some chickens in there.
Among that had a layer flop fora while in those years.
As we migrated through theyears late 90s we got more
(05:38):
focused on grain production.
Grain production startedgrowing then through the early
2000s and we had storage for ourown grain and were selling to
the distilling industry.
But we weren't fully usingthose facilities.
So we thought maybe we shouldget a little more commercialized
and do some grain merchandisingas well as our own production.
And that has grown along withour farming operation to where
(06:01):
it is today.
Jim Lenz (06:03):
Very nice.
Peterson Farms plays a big rolein the heart of the bourbon
country, supplying grain tomultiple distillers in the
region.
Can you, gentlemen, describe alittle bit about the size of
Peterson Farms?
Tell us more.
Bernard Peterson (06:17):
So Peterson Farms started out with three
brothers together.
Our nephew joined us.
We now have some new partnerswith us as well who are
non-family.
We're managing around 19,000acres, three grain facilities.
Total storage in those threefacilities totals about 3
million bushels.
The locations of the threefacilities were primarily
(06:39):
located where there was a needfor storage, not only for our
production but for production inthe area, and so that's kind of
how they got spread out as theyare.
Jim Lenz (06:50):
And you have a few off-site facilities as well.
Bernard Peterson (06:53):
Yeah, some of the land, some of the farms we
manage have some storage on themas well, which totals up to
about 200,000 bushels total.
We use it kind of as a bufferin the fall when we need it, and
the last few years we filled itevery time.
So we're still on the edge ofadequate storage.
Jim Lenz (07:11):
Nice.
Dane Gentry (07:12):
And we are still building grain bins.
Today we are actively buildingtwo bins at the Danville
facility.
Danville came up probably abouttwo years ago.
Jim Lenz (07:22):
Oh, wow, so big projects still occurring, lots
of growth in this area and youlargely, as you said, service
the bourbon industry primarily,right.
Bernard Peterson (07:32):
Right, we do some specialty crops as well.
We do non-GMO soybeans whichare mostly going to the Asian
market.
Mostly exports, some by barge,some by.
We're doing some container workas well.
Dane Gentry (07:43):
And I'll just say, to kind of call it out, I think
someone comfortable Berk can addto this a little bit.
You know the Loretto facilitywas built first.
You know the bin that waserected there at some point.
The little town of Lorettodidn't think it'd ever be filled
.
I don't remember what thecapacity was of that bin, but I
believe it was filled withinfive days.
Bernard Peterson (08:07):
Yes, my father started that facility at
Loretto in 1967, and there werebasically three bins there,
total storage capacity of100,000 bushels and the talk of
the community was well, there'snot enough grain in nine
counties to fill that and atthat facility now it's two
billion.
It's been full every year forthe last several.
Jim Lenz (08:28):
Now you have grains also coming off the barge from
the river as well, right, we arenot bringing any grain inbound
from the river.
Bernard Peterson (08:35):
We are taking grain soybeans primarily to the
river for export.
Jim Lenz (08:40):
Okay, gotcha, I understand.
Thank you.
So you play a big role in theheart of the bourbon country,
supplying grain to multipledistillers in the region.
That must come with highexpectations.
Can you describe the level ofquality and consistency that's
required?
Dane Gentry (08:55):
Yeah, so super clean expectations very little
dust, very little fines, stocksproblems.
You know, I'll say one of theirfirst tests when we ship a load
into the distillery is a visualcheck.
Then we get on top of thetrailers.
They will look at it.
If it doesn't look right, itdoesn't matter.
If it's number one, number two,whatever the grades are, they
(09:17):
do not know to accept it.
They are paying for goodquality, clean grain and that's
what we expect to deliver.
There are some situations thatregard Geosmin.
Geosmin is a bacteria in thedust and the dirt that comes in
with the grain, albeit some ofit is in water solutions, but
that is another side that wedon't have.
(09:38):
But also keeping super cleangrain bins, making sure they're
entirely swept out pristine itis very important.
Keeping that grain moving,keeping it stirred up Corn bins
is something we do quitefrequently just to make sure we
keep that grain in greatcondition when it comes time to
load out.
The smell test is one way to do.
(09:59):
If they detect any hint of odor, it's definitely rejected and
sent back to us, and we're notin business of doing that.
We give them what they expectfirst time.
We deliver expectations.
We actually have KPIs andmetrics that track that.
We try to limit thoserejections as much as possible.
Jim Lenz (10:18):
It's such a niche industry.
How does handling grain fordistillers differ from handling
it for uses like ethanol or feed?
Dane Gentry (10:25):
You know, a lot of those facilities base their
contracts based on federal graininspection standards, number
two, number three, things ofthat nature.
I don't believe and Bernard canspeak more to this I don't
believe that's how they strictlyword their contracts.
They probably put their ownstacks as far as F&O and boy
shares related.
(10:46):
But again, it's the appearance,it's the smell and it's the
quality, not only after it showsup on their property in a truck
, it's once they put it oncolumn.
They are sampling it quitefrequently there at the
distillery.
If they get some off taste theywill work that problem
backwards and find out whatlevel, where they come from,
(11:07):
things of that nature.
But the older grain can givethem trouble.
It causes some congeners inthere to kind of go stale, give
it an earthy, nutty taste.
I can speak to that on bothsides of the coin there.
But yeah, it is undesirable andjust like any other protection
facility or processing facility.
distillers want that consistent.
There's one not too far downthe road from us here in Loretta
(11:29):
.
They've been doing the samething for about 70 years, so
that consistency is key.
You're going to pick up abottle of that up off the shelf.
It's going to taste just likethe bottle you pick up in three
states away.
Jim Lenz (11:40):
Lots to consider yeah.
Bernard Peterson (11:42):
Yeah, I like to liken the grades and the
quality of the grain to.
You know, when you go to thegrocery store and buy your
cornflakes, you want to knowwhat's there.
We are literally right here inthe food production side of
business, and so people talkabout discount schedules.
There are no discount schedulesin the people we deal with in
the distilling world.
(12:02):
It's either it's pass or fail.
So it's very clear in qualityand on time.
You know most of these placeshave storage that will supply
them for somewhere between 24and 48 hours.
So it's very much aservice-oriented business as
well as quality.
Jim Lenz (12:20):
Very good point.
Dane Gentry (12:22):
Distilleries for the most part.
You know their bins on site arepass students.
They're surge bins, I don'teven want to call them.
They go through them quitefrequently so they're not in the
business of handling storage.
Jim Lenz (12:34):
So again very high quality standards, no cobs, no
dust Like Bernard said it's apass or fail.
Dane Gentry (12:42):
But the trouble with that is human nature.
Right, we get that truck thereto the distillery.
It matters who's sniffing it,right?
Okay, well, usually they getsomeone else to either confirm
or not realize there's a smellthere.
But you know so thatconsistency can make it tricky.
You know it smells just likeanybody else.
(13:02):
You know I smell something thatyou don't, or they pick up on
so it's.
You know there's a little humanerror that makes it tricky
there.
But they do their best to, justlike we do, to have
confirmation that smell or sightor visual is a confirmation,
before me saying, well, oneperson smelled it, well, it's
the next.
Jim Lenz (13:24):
Oh, that's very interesting For those who are
not familiar with Geosmin.
What is Geosmin and why is itsuch a concern?
Dane Gentry (13:48):
that's a part of also another that's grown to be
a pretty big producer.
You know it takes thedistillate point blank.
That dust, the dirt, and thatbacteria is then put in.
With the fermentation, with thegrain subsequently goes into
the column to get distilled, youstart getting a real, I'd say,
base mini flavor is the best Ican describe it Must be.
It's just, it's very noticeableas human beings.
(14:11):
Back in the day that was how wefound water, because it is in
water sources as well.
You know it's measured in partsper trillion.
That the human does andreceptors can pick up on that
quite easily.
So when that starts coming offof their column they know real
quick and it only intensifies ifthey have to put it in barrels.
(14:33):
Distillers, brewers are all kindof the same mindset.
You don't dump it, turn it tovodka or you figure out how to
blend it just like any otherproduct, but it it stands out.
I would say probably one barrelin 50 or 60 could be what you
can get away with.
So hopefully that stresses theimpact of that geosmin.
(14:55):
So when you put it in thebarrel it does intensify.
When you go to look at it, saysix, eight, ten years later,
what are the strategies thatpeterson farms do to help
mitigate that?
Jim Lenz (15:04):
what are the strategies that the Peterson
Farms do to help mitigate that?
What are some strategies tohelp manage jasmine?
Dane Gentry (15:12):
Yeah, that's a good one.
So, just like most probablygrain handlers, grain facilities
, corporations out there, wehave been monitoring Be a good
proactive way to catch problemsbefore they happen, because some
of those fines in the centerthat are very hard to break up
and pass air through, you knowwill start to tend to heat up.
We'll see hot spots.
(15:33):
We can pull those out andfigure out a better way forward.
But again it comes down to thecleanings.
We clean all of our grain goinginto bins Found that to be a
better practice than cleaning iton the way out.
Just gives you less problems,whether it's physically trying
to pull from the bin or keepingthat quality in good condition.
A reference coring bins.
(15:55):
We try to do that as much aspossible.
When we get down the sweetlevel, we are sweeping it
completely, talking about everysingle kernel as much as we can
off the floor.
All the dust, any dirt oranything like that also gets
discarded.
Jim Lenz (16:13):
Wow, tender care and making things are clean.
Good efforts there.
I think in an earlierconversation you talk about the
role of innovation labs inreference to some of the things
related to Jasmine.
Can you discuss that a littlebit further?
Dane Gentry (16:28):
Yeah, so we've partnered with a distillery's
parent company.
They have an innovation lab alittle bit north of here, about
a half hour or so.
We've been working with them asmost distilleries are starting
to come to the food safety worldand food safety audits.
They're auditing suppliers justas if I was back in my flower
(16:50):
days.
You know, they come in therewith a quality mindset.
That's what we expect todeliver to them.
So, yeah, we've partnered alittle bit with them.
I've worked with them inconjunction on sending them
samples at all different depthsof our bin to really understand
where that geos been wise.
That gives us understand wherethat geosmin lies.
That gives us feedback where weneed to be better, just some
(17:10):
better ways forward, just tryingto figure out what we got.
At the end of the day, geosminis one of those things that
everybody's still trying to finda way forward.
Eradicate it, wash it, whateverit may be, but most of these
distilleries have learned how towork around it and what their
standard of Vialzman isacceptable and which is not just
(17:32):
like any other defect.
Jim Lenz (17:34):
So you two are given a really good overview of how the
Hamlin grain is different forhigh-end distilling.
Let's talk more about the highstakes in every single kernel.
Can you talk about theeconomics for this?
I think it will be quitesurprising to some of our
listeners how this is sodifferent.
This niche.
Dane Gentry (17:55):
Yeah.
So again, before we get off onthat, I'm always having these
afterthoughts after talkingthrough.
But a little bit back up to theGI, the testing time.
There is no rapid testcurrently.
As we talk today Other grainhandlers will know after toxin
bomb and toxin don there's asomewhat rapid test.
(18:15):
You know it may take five, tenminutes like a GMO test, but
there is no rapid test.
So when that truck shows up atthe distillery or your step it's
subject to humans Snip it,smout it, see if anything's
there or not.
Working with that innovation Ibelieve they've gotten it down
to about three hours is thequickest taking test.
(18:37):
Before that it was.
Yeah, there's some speedytechnology going on there, some
fiber technology.
We're trying to get thatgeotman to cling to that fiber.
There's no quick pass or failon that test yet.
Jim Lenz (18:50):
Yeah, that's really good information.
So, right, it's down to threehours.
Where we're at in thisconversation, this date and time
, 2025, in late May, as we'rediscussing this, that course
could change in the future.
So that's why that humancomponent, using your senses, is
critical, and then all thosemeasures you do to keep things
(19:11):
as clean, as tidy as possiblefor this niche market.
Any comments additionally fromyou, bernard?
Bernard Peterson (19:17):
Well, also, as we're in a business where we
supply 12 months out of the year, so we're always supplying
through the summer months, whichstoring grain through the
summer months is always achallenge Just managing through
the heat, making sure all that'sgood.
Also, we continue to buy grainoff the farm through the summer,
so we have to be very cognizantof the storage practices taken
(19:39):
by those that are bringing usgrain as well, to make sure they
meet those quality standards.
We've got some alternativemarkets.
Not every grain goes to thedistillery.
Some ends up in the world offeed, which is where the quality
requirements are a little morerelaxed.
Jim Lenz (19:54):
Right Makes sense here .
Can you both talk a little bitabout the economics?
There are high stakes in everysingle kernel, so can you lay
some of that out there for ourlisteners, because so many of
our listeners are not in thisniche but they perhaps like the
product that's ultimatelyproduced and they are grain
professionals, whether they'revendor suppliers or in their
(20:14):
operations or whatnot.
This is a really interestingconversation, so let's take it
even further with the economicshere.
Dane Gentry (20:21):
Yeah.
So I would say me and Brianboth echo that sentiment.
We like their products as well.
We don't want wanna changetheir consistency.
But you're looking at this fromthe facility side.
They're filling barrels.
One barrel is anywheredepending on the age statement,
but again 10 to $20,000,.
Once you take that barrel tobought, which you get about 190,
(20:45):
200 bottles of one barrel.
Obviously, as it ages you haveless and less in there.
So yeah, and then on the grainside of things, our side of
things, you know, we know ourmarket prices, we know what a
truckload of corn is worth.
But again the distillers arepaying for very clean truckloads
to be shipped into them, Verygood, high quality, good test
(21:07):
weight, exact moisture thatthey're looking for.
They don't want too dry, theydon't want too wet, they don't
want just dry.
So yeah, delivering on thosethings it's costly.
Jim Lenz (21:18):
Yeah, so there's a lot of care to ensure consistency
and purity in every single loadthat you have.
Consistency is everything, andthat's why distillers avoid old
grain, isn't it?
Bernard Peterson (21:31):
And reliability.
Reliability is a real keybecause you never want to be the
supplier that causes thedistillery to have a hiccup in
their production cycle.
So, with most of these havingvery limited storage, you have
to be there daily, or at leastevery other day, and you pretty
much have to be ensured that youhave the quality they need when
you get there, because theremay not be time to replace that
(21:53):
load sometimes.
So it's very important.
Part of the economics is we'reright in the middle of the
bourbon industry, so Fred is ourfriend here.
Pure luck to grow up in theright spot, but it's that that
is part of it.
But relationships are key andcreating that reputation and I
(22:17):
think everyone who listens tothis understands the reputation
of any business and that is oneof the that is the real key to
making this all work.
Jim Lenz (22:25):
Absolutely Good point.
Now you touched on cleaning.
That is the real key to makingthis all work.
Absolutely Good point, now youtouched on cleaning.
Can you add a little moredetail to facility cleaning
cycles and minimal storage time?
Dane Gentry (22:36):
I would say we also track this metric as well.
Turnover of our facilities wecurrently, as we said, we turn
over all of our facilities aboutone and a half times.
Bernard Peterson (22:46):
I say, unlike a lot of the export houses that
turn their inventory seven oreight times a year, we turn our
inventory one and a half times ayear but part of that is our
location and the grain.
We try to keep grain grownlocally.
A number of our end users todaywant local grain and so our
goal is to keep that local grainlocal for that production.
Jim Lenz (23:08):
Got it.
You're not moving massivevolumes like a commercial
terminal elevator.
But imagine that smaller scalegives you some operational
advantages.
What are those advantages?
Dane Gentry (23:28):
Dang, you've operated in the mercy of a
railroad, you're not at themercy of a barge or the ship
master a little bit slower, Iguess that things happen here in
kentucky and it's a good peaceof mind again.
Jim Lenz (23:40):
Like bernard responded , we are expected to deliver
first time real life results attheir doorstep when we bring so
we talked about storage times,regular cleaning cycles, and do
you talk about coring strategiesto help you keep the grain as
pristine as possible?
I think you touched on a littlebit.
Did you want to add any detailto that?
Bernard Peterson (24:01):
It goes back to the storage strategies that
I've known all my life andthat's keep grain moving.
So you don't like to leave abin sitting for six months.
You use a little bit out of allof them all the time.
Jim Lenz (24:13):
You mentioned already, you have some grain that is
designated for specialty markets.
Let's talk about specialtymarkets and future trends
Non-GMO soybeans in shippingcontainers to overseas markets
you are involved with that tosome degree and the Peterson
Farms right.
Bernard Peterson (24:33):
Yes, we are, that is correct.
We're doing that mainly throughthird parties, but at the same
time we're servicing the needsfor quality and purity.
Jim Lenz (24:42):
How has diversifying into these markets changed your
approach?
Bernard Peterson (24:48):
Well, the specialty markets provide an
opportunity for a little moremargin.
Here and there you also.
In the specialty market thecompetition is not as strong
when we think about soybeans,and 93% of US soybeans are GMO
and we're growing the non-GMO,which is 7% of total production.
Sometimes and today is a primeexample If you've got some
(25:11):
non-GMO soybeans, if you knowwhere they are, they're pretty
valuable.
Today, until harvest happensagain.
Of course, that supply chainseems to have gotten a little
short.
The container market again.
We're re-cleaning some beansgoing to seed quality with some
going in containers.
Most of the beans we ship arenumber two, but we have the
ability to upgrade to number oneor seed quality if needed, if a
(25:35):
customer demands that.
Dane Gentry (25:37):
And I'll add to that seed quality.
I feel like we're one of thefew that also partners with seed
companies to produce them seedas well.
We have our own seed center iswhat we call it where we clean,
bag, ship those out to thesupplier.
Jim Lenz (25:54):
Yeah, we're actually cleaning seed for a couple of
seed producers so we've got atleast a couple different
specialty markets here withnon-gml beans and and with the
uh primarily beans, doing somewheat as well okay so we grow
soft red winter wheat.
Bernard Peterson (26:09):
Most of our soft red winter wheat goes into
the distilling market, but we'redoing.
We're doing some seed work also.
Jim Lenz (26:15):
Do you two see continued growth in the
distilling sector?
What do you see in terms offuture outlook?
Is this a new frontier forgrain handlers?
Dane Gentry (26:25):
I don't think it's quite so new because tradition
has been here for quite sometime with the distilling
industry and the producers herehave been here for quite some
time with the distillingindustry and the producers here.
There was a surge in thebourbon industry where all these
craft distilleries startedpopping up.
People out of different statesstarted grasping on to what
Kentucky was doing here.
That went pretty well.
(26:46):
I think with the currentclimate as it is has kind of
purged that industry of.
You know the ones that reallyhave stuck with quality and
consistency the most, and someof these other ones have
unfortunately fallen to thewayside.
But I don't see much craftdistilleries or new distilleries
(27:06):
popping up much anymore.
But yes, it is something.
If you have a distillery thatpops up in your backyard or in
your state as a grain handler,if you deliver on quality and
excellence, that would be a goodcustomer to go after and a good
partner.
Bernard Peterson (27:22):
The bourbon industry today is in a slight
pullback but, as with any otherindustry, there are ebbs and
flows.
Me personally, I'm prettybullish.
Bullish the bourbon industry, Ithink.
The parts of the world thatbourbon consumption is growing,
I think there are going to besome huge demand.
Primarily Asia and India iswhere I see the growth coming
(27:45):
from, the bigger growth.
Jim Lenz (27:47):
Interesting.
You hear a lot of theseHollywood stars coming up with
their own drink.
I've heard lately Anycommentary about that.
Bernard Peterson (27:55):
Well, we had a distillery that started
construction here locally andI'm pretty sure there was a
football coach involved in theinvestment there and they have
stopped construction forwhatever reason.
We'll see if that comes back tolife.
Jim Lenz (28:13):
All right, dane, what about you?
You've had some involvementwith CHEAPS.
What do you think about peopleusing CHEAPS as a resource to
stay connected with others, fornetworking, for educational
purposes, just for learning andgrowing this industry and
advancing the industry?
What kind of value does thatbring?
Dane Gentry (28:30):
CHEAPS, I'll tell you, is a great society,
something to be a part of.
Membership-wise Each state kindof value does that bring?
Jukes, I'll tell you, is agreat society, a great something
to be a part of.
Membership wise each state kindof has several chapters until
just recently.
I realized Kentucky does nothave them.
So I think there is a very bigmissed opportunity here.
You know this distilleryprocessing rate, which little
people really understand.
(28:51):
It is at them.
They're're doing the exact samething and that's what I'm
planning on doing, just a littlebit more desirable to taste
than what comes off of anethanol column and a little bit
smaller scale and flow than whatethanol producers make.
But quality consistency isthere.
But I think you know, with maybeus continuing to partner,
(29:13):
hopefully to help Jeeps.
You know, maybe we can have achapter here that can bring all
these people to the table.
You know, as of late soybeanproducers, corn growers of
America have started to join theJeeps table.
That isn't to say distillerscan come to the table as well
and the producers that supplythem.
A lot of great opportunities, Ibelieve, at kentucky, small
(29:35):
niche market, bourbonseverywhere, but as everybody
knows, it's pretty big there toowell, we appreciate those
comments.
Jim Lenz (29:43):
Thank you, dane, to both of you.
You know this industry at large.
Grain industry is challenged tofind those who are curious and
informing them and, of course,educating them about this
special industry to help feedand fuel the world and all the
fibers that are produced fromgrain.
Just in general, what is yourmessage to someone listening
(30:04):
today who may be consideringworking in the grain industry?
Why is it so special to youeach personally?
What do you think is importantabout this industry and why
people should get involved andthink of this as a career?
Dane Gentry (30:17):
I would say how I've built up the passion for it
is you know, it's not glamorous, right, it's dirty, it's dusty,
it's outside and in conditions,but it kind of shows you what
you're worth or what you haveand what's about it.
Do you have that perseverance tokeep pushing through with the
distillers now being supplied bysome of our producers and grain
(30:41):
handlers, to really takequality to that next level,
versus just the number one ornumber two grade in appearance
and smell and all aspects?
I would definitely say justcommunicating with others may
give me an idea here that mayfurther our quality.
I guess my number one passionis continuous improvement,
(31:02):
always, whether it's in mypersonal life or business life,
trying to get that 1% bettereach and every day and trying to
figure out what is the rightpassport.
I think partnering with Jeepsand some of those initiatives
that are out there and webinarsand all those great things you
guys provide definitely gets theseed planted pun intended and
(31:25):
gets everybody talking and inthe same room and together.
Everybody has challenges eachand every day in this industry,
but as a collective that we arein this industry, that team
effort really pays dividends inthe end.
Bernard Peterson (31:39):
The people the people are I mean the people in
the grain industry are justgreat to work with.
It's a great community to beinvolved in.
Anybody looking for a career inthe grain business you're
looking at great challenges aswell as great rewards.
Looking for a career in thegrain business you're looking at
great challenges as well asgreat rewards.
We're in a little specialtymarket here, but every market
has its specialties, even theelevator in Kansas that supplies
(32:01):
the fire mills.
You go on to the bigger exporthouses.
They're supplying food aroundthe world.
Look at the importance of whatwe're doing.
We're distributing the caloriesthat the world needs to grow.
I of what we're doing.
We're distributing the caloriesthat the world needs to grow.
Jim Lenz (32:15):
Appreciate those sentiments.
Dane, I think a lot of peoplesupport what you say.
And, bernard, you said topeople I can't tell you how many
times I've heard that fromothers in this industry.
So join the grain industryListeners out there.
If you're not and you'recurious, reach out to Jeeps at
jeepscom.
We'll help set you up and maybeget you to a facility in an
(32:37):
area near you and get youinvolved.
Dean, you actually mentionededucational resources.
This is kind of taking learningon the go, this whole grain
podcast.
You said you've been listeningto this and you share this to
bring about, I think, discussionamongst team members.
You know self-reflect and more.
Dane Gentry (32:58):
Yeah, so I listen to it.
I've got a roughly half hourcommute from where I'm at and
since that time span, just rightto pop on an episode or two, or
from work.
I'll definitely tell you, Ilisten to it quite some time
before work.
It just gets me in that mindset, it gives me ideas, gets me
thinking, just kind of jumpstarts my brain.
But you guys cover all sorts oftopics on episodes and I love
(33:21):
the ones all the way from peopleengagement and growing culture
to ethanol producers andcooperatives and to safety and
equipment maintenance.
You guys are all over the placeand that's really great and I
also recommend it to all theindividuals that I work with on
a daily basis.
Actually, I've gotten one of myown team members to start
(33:42):
listening to it prettyritualistically and he comes to
work and "'Hey, did you hearwhat was on this?
"'Hey, what if we did this',"'They were looking at it like
this'".
And it's just again.
As long as you get thatconversation started and that
brain thinking, as long as youget that talk and that
communication and thatdiscussion started, that's where
(34:04):
great ideas come from Awesome,so propagates discussion.
Jim Lenz (34:09):
whole grain does that.
You've been listening.
Now you are on the show, daneGentry Grain, facilities Manager
at Peterson Farms.
It's been a pleasure, bernardPeterson, partner at Peterson
Farms.
Thanks again for both of youfor joining us today and giving
us a glimpse into thisprecision-focused side of grain
handling and processing.
Thank you so much.
(34:29):
Thank you.
Thank you.
You're very welcome, bernardand Dane.
Thank you for your contributionto the Whole Grain Show.
I'm confident your uniqueperspective helps our industry
grow, stay informed and bringsour global grain industry feel
much more tightly connected Toour listeners.
Thank you for joining the WholeGrain Show.
Once again, I encourage you toshare this episode with your
(34:51):
teams.
If you have not yet subscribedto the whole grain podcast on
your favorite podcast app, Iencourage you to do so, as the
podcast episodes will drop onyour phone as soon as they're
released, or whatever deviceyou're using.
Plus, you can catch up veryeasily and quickly on all past
shows as well.
Whole grain is found on applepodcast, google music, spotify,
(35:12):
amazon music, podbean, pandoraand dozens more.
The whole grain podcast bringstogether grain industry
professionals like yourself from89 countries from around the
world.
Be sure to share this episodeand the news of the whole grain
show as an easy to access andeasy to share educational
resource with your network.
By doing so, it really helpsour industry communicate the
(35:33):
various perspectives provided byour guests.
By sharing with just five otherpeople, you know, you help grow
this industry.
Thank you for doing so.
One can also find the show onthe Jeeps website at jeepscom
slash whole grain.
If you'd like a topic addressedon the show or if you want to
leave a comment on what youthink of the show, or perhaps
(35:55):
you'd like more information onhow the Grain Elevator and
Processing Society could supportyou with education and training
needs, please reach out to medirectly.
I'm Jim Lenz, director ofGlobal Education and Training at
Jeeps.
My email is james at jeepscom,that's J-A-M-E-S at G-E-A-P-S
dot com.
We look forward to connectingwith you To learn more about
(36:17):
being a member of the GrainElevator and Processing Society.
Please visit jeepscom G-E-A-P-Sdot com.
Until next time, keep learning,keep innovating and keep moving
the industry forward.
Have yourself a great day andthanks for listening to the
Whole Grain Show.
In this episode of the Whole Grain Podcast, we're
heading deep into bourboncountry, to the rolling hills of
Loretto, kentucky in the UnitedStates, where time meets
tradition and grain qualityisn't just important, it's
everything.
Today we're pouring a glass ofsomething a little different.
Let's get started.
Hello and welcome to the show.
(00:27):
Welcome to the Whole GrainPodcast.
The Whole Grain Show bringsgrain professional listeners
together from 89 countries fromaround the world.
I'm so happy you're joining ustoday.
My name is Jim Lenz, your host,producer and editor of the show
and the director of globaleducation and training at GEAPS
we're.
The mission of the GrainElevator, elevator and
processing society is tochampion, connect and serve the
(00:48):
global grain industry and ourmembers At GEAPS.
We work to be the global graincommunity and thought leader for
the grain industry, which feedsand fuels the world.
This is a show where we bringyou fresh ideas, smart
perspectives andforward-thinking leaders from
across the grain handling andprocessing industry.
We bring in two outstandingguests in today's show, both of
(01:08):
Peterson Farms in Kentucky.
We have Bernard Peterson, apartner at Peterson Farms, and
Dane Gentry, grain facilitiesmanager.
Peterson Farms is a family-runoperation that supplies numerous
famous distilleries and when weare saying, they are picky
about their grain.
That is an understatement.
(01:29):
We'll explore why distilleriesreject rain for just a few cobs
in a trailer, or how jasmine,the earthy smelling compound
from brain and dust, can ruin abarrel worth twenty thousand
dollars, and why food safety andconsistency are the name of the
game in this niche butfast-growing segment of the
industry.
We also touch on a couple otherspecialties offered by Peterson
(01:50):
Farms.
So whether you're a facilitymanager, a food safety
specialist, just a curious grainprofessional, or just love
learning how grain gets from thebin to the barrel, this episode
is for you.
So let's jump right into theconversation and raise a glass
to the power of premium grainhandling.
All right, today we're headinginto bourbon, country, where
(02:22):
grain quality, precision andconsistency aren't just
important, they're absolutelyessential.
We'll explore what it takes tomeet the rigorous demands of the
distilling world.
I'm joined by two outstandingguests from Peterson Farms Dane
Gentry, grain facilities managerand loyal whole grain listener,
and Bernard Peterson, partnerof this family-run operation.
(02:43):
Welcome to the show, bernard.
Welcome to the show, dane.
Dane Gentry (02:46):
Glad to be here, yeah, glad to be here as well.
Jim Lenz (02:49):
Dane, I'll start with you.
I know you've been part of ourJeeps community for a while and
have tuned in regularly to theshow, the Whole Grain Podcast.
Great to have you here.
And again, Bernard, I'm lookingforward to your unique
perspective that you can offerhere.
So, Dane, you've worked at someof the largest terminal
elevators in the country and nowyou're part of a
family-operated farm and grainbusiness in Kentucky.
(03:11):
Tell us about that journey.
What led you to Peterson Farms?
Dane Gentry (03:14):
Yeah, so I'm a Kansas kid born and raised, went
to Kansas State there albeitfor kinesiology, and there's no
translation into what I'm doingnow except for coaching but
joined ADM shortly after that,worked at the 18 million bushel
facility there in Hutchinson,kansas, grabbed that away, got
(03:35):
led to Arden Mills, anothergiant flower producer down there
in Wichita, kansas, andrelocated to Ohio for Arden
Mills and at that point up therein Columbus, ohio, switched
over to distilling with LittleWest Spirits there.
I'm a pretty big producer forthat state and then switched
over to a little bit smallerproducer in Indiana, harb Truth,
(03:56):
and then made my journey downhere and back into grain
handling.
But I've got to see, you know,three years of distilling and
then now, now, lo and behold,supply list for what you do
outstanding thanks for sharing,dean.
Jim Lenz (04:11):
How would you compare your experience of a large
corporate setting to this morefocused, family-driven
environment?
Dane Gentry (04:17):
very relaxed and much needed breath of fresh air,
learned a lot of good corporatepolicies, procedures, best
practices that can translate toa family farm operation, but
it's a little bit more easygoing.
You don't paint yourself somuch into a box and you can
still have that freedom to dowhat's necessary but also to do
(04:39):
what's right.
Jim Lenz (04:41):
And Bernard, could you share your backstory of
Peterson Farms?
I know our listeners are goingto be curious about that.
Add as much detail as you wantto.
And how did the business startand what does the operation look
like today?
Bernard Peterson (04:53):
Well, historically we go back when we
start talking about familygenealogy.
We go back to our Dutchheritage, which started in New
York.
We have 13 generations in theUS.
I think the first ones camebefore the US was the US, but
regardless they've migratedthrough the years, been farmers
in every generation since, so13,.
I'm 13th and we now have the14th generation here at Farming.
(05:15):
Peterson Farms as we know ittoday, we say, started in 1946
with the marriage of our parents.
We've grown from there.
We grew up in dairy operationhogs had some chickens in there.
Among that had a layer flop fora while in those years.
As we migrated through theyears late 90s we got more
(05:38):
focused on grain production.
Grain production startedgrowing then through the early
2000s and we had storage for ourown grain and were selling to
the distilling industry.
But we weren't fully usingthose facilities.
So we thought maybe we shouldget a little more commercialized
and do some grain merchandisingas well as our own production.
And that has grown along withour farming operation to where
(06:01):
it is today.
Jim Lenz (06:03):
Very nice.
Peterson Farms plays a big rolein the heart of the bourbon
country, supplying grain tomultiple distillers in the
region.
Can you, gentlemen, describe alittle bit about the size of
Peterson Farms?
Tell us more.
Bernard Peterson (06:17):
So Peterson Farms started out with three
brothers together.
Our nephew joined us.
We now have some new partnerswith us as well who are
non-family.
We're managing around 19,000acres, three grain facilities.
Total storage in those threefacilities totals about 3
million bushels.
The locations of the threefacilities were primarily
(06:39):
located where there was a needfor storage, not only for our
production but for production inthe area, and so that's kind of
how they got spread out as theyare.
Jim Lenz (06:50):
And you have a few off-site facilities as well.
Bernard Peterson (06:53):
Yeah, some of the land, some of the farms we
manage have some storage on themas well, which totals up to
about 200,000 bushels total.
We use it kind of as a bufferin the fall when we need it, and
the last few years we filled itevery time.
So we're still on the edge ofadequate storage.
Jim Lenz (07:11):
Nice.
Dane Gentry (07:12):
And we are still building grain bins.
Today we are actively buildingtwo bins at the Danville
facility.
Danville came up probably abouttwo years ago.
Jim Lenz (07:22):
Oh, wow, so big projects still occurring, lots
of growth in this area and youlargely, as you said, service
the bourbon industry primarily,right.
Bernard Peterson (07:32):
Right, we do some specialty crops as well.
We do non-GMO soybeans whichare mostly going to the Asian
market.
Mostly exports, some by barge,some by.
We're doing some container workas well.
Dane Gentry (07:43):
And I'll just say, to kind of call it out, I think
someone comfortable Berk can addto this a little bit.
You know the Loretto facilitywas built first.
You know the bin that waserected there at some point.
The little town of Lorettodidn't think it'd ever be filled
.
I don't remember what thecapacity was of that bin, but I
believe it was filled withinfive days.
Bernard Peterson (08:07):
Yes, my father started that facility at
Loretto in 1967, and there werebasically three bins there,
total storage capacity of100,000 bushels and the talk of
the community was well, there'snot enough grain in nine
counties to fill that and atthat facility now it's two
billion.
It's been full every year forthe last several.
Jim Lenz (08:28):
Now you have grains also coming off the barge from
the river as well, right, we arenot bringing any grain inbound
from the river.
Bernard Peterson (08:35):
We are taking grain soybeans primarily to the
river for export.
Jim Lenz (08:40):
Okay, gotcha, I understand.
Thank you.
So you play a big role in theheart of the bourbon country,
supplying grain to multipledistillers in the region.
That must come with highexpectations.
Can you describe the level ofquality and consistency that's
required?
Dane Gentry (08:55):
Yeah, so super clean expectations very little
dust, very little fines, stocksproblems.
You know, I'll say one of theirfirst tests when we ship a load
into the distillery is a visualcheck.
Then we get on top of thetrailers.
They will look at it.
If it doesn't look right, itdoesn't matter.
If it's number one, number two,whatever the grades are, they
(09:17):
do not know to accept it.
They are paying for goodquality, clean grain and that's
what we expect to deliver.
There are some situations thatregard Geosmin.
Geosmin is a bacteria in thedust and the dirt that comes in
with the grain, albeit some ofit is in water solutions, but
that is another side that wedon't have.
(09:38):
But also keeping super cleangrain bins, making sure they're
entirely swept out pristine itis very important.
Keeping that grain moving,keeping it stirred up Corn bins
is something we do quitefrequently just to make sure we
keep that grain in greatcondition when it comes time to
load out.
The smell test is one way to do.
(09:59):
If they detect any hint of odor, it's definitely rejected and
sent back to us, and we're notin business of doing that.
We give them what they expectfirst time.
We deliver expectations.
We actually have KPIs andmetrics that track that.
We try to limit thoserejections as much as possible.
Jim Lenz (10:18):
It's such a niche industry.
How does handling grain fordistillers differ from handling
it for uses like ethanol or feed?
Dane Gentry (10:25):
You know, a lot of those facilities base their
contracts based on federal graininspection standards, number
two, number three, things ofthat nature.
I don't believe and Bernard canspeak more to this I don't
believe that's how they strictlyword their contracts.
They probably put their ownstacks as far as F&O and boy
shares related.
(10:46):
But again, it's the appearance,it's the smell and it's the
quality, not only after it showsup on their property in a truck
, it's once they put it oncolumn.
They are sampling it quitefrequently there at the
distillery.
If they get some off taste theywill work that problem
backwards and find out whatlevel, where they come from,
(11:07):
things of that nature.
But the older grain can givethem trouble.
It causes some congeners inthere to kind of go stale, give
it an earthy, nutty taste.
I can speak to that on bothsides of the coin there.
But yeah, it is undesirable andjust like any other protection
facility or processing facility.
distillers want that consistent.
There's one not too far downthe road from us here in Loretta
(11:29):
.
They've been doing the samething for about 70 years, so
that consistency is key.
You're going to pick up abottle of that up off the shelf.
It's going to taste just likethe bottle you pick up in three
states away.
Jim Lenz (11:40):
Lots to consider yeah.
Bernard Peterson (11:42):
Yeah, I like to liken the grades and the
quality of the grain to.
You know, when you go to thegrocery store and buy your
cornflakes, you want to knowwhat's there.
We are literally right here inthe food production side of
business, and so people talkabout discount schedules.
There are no discount schedulesin the people we deal with in
the distilling world.
(12:02):
It's either it's pass or fail.
So it's very clear in qualityand on time.
You know most of these placeshave storage that will supply
them for somewhere between 24and 48 hours.
So it's very much aservice-oriented business as
well as quality.
Jim Lenz (12:20):
Very good point.
Dane Gentry (12:22):
Distilleries for the most part.
You know their bins on site arepass students.
They're surge bins, I don'teven want to call them.
They go through them quitefrequently so they're not in the
business of handling storage.
Jim Lenz (12:34):
So again very high quality standards, no cobs, no
dust Like Bernard said it's apass or fail.
Dane Gentry (12:42):
But the trouble with that is human nature.
Right, we get that truck thereto the distillery.
It matters who's sniffing it,right?
Okay, well, usually they getsomeone else to either confirm
or not realize there's a smellthere.
But you know so thatconsistency can make it tricky.
You know it smells just likeanybody else.
(13:02):
You know I smell something thatyou don't, or they pick up on
so it's.
You know there's a little humanerror that makes it tricky
there.
But they do their best to, justlike we do, to have
confirmation that smell or sightor visual is a confirmation,
before me saying, well, oneperson smelled it, well, it's
the next.
Jim Lenz (13:24):
Oh, that's very interesting For those who are
not familiar with Geosmin.
What is Geosmin and why is itsuch a concern?
Dane Gentry (13:48):
that's a part of also another that's grown to be
a pretty big producer.
You know it takes thedistillate point blank.
That dust, the dirt, and thatbacteria is then put in.
With the fermentation, with thegrain subsequently goes into
the column to get distilled, youstart getting a real, I'd say,
base mini flavor is the best Ican describe it Must be.
It's just, it's very noticeableas human beings.
(14:11):
Back in the day that was how wefound water, because it is in
water sources as well.
You know it's measured in partsper trillion.
That the human does andreceptors can pick up on that
quite easily.
So when that starts coming offof their column they know real
quick and it only intensifies ifthey have to put it in barrels.
(14:33):
Distillers, brewers are all kindof the same mindset.
You don't dump it, turn it tovodka or you figure out how to
blend it just like any otherproduct, but it it stands out.
I would say probably one barrelin 50 or 60 could be what you
can get away with.
So hopefully that stresses theimpact of that geosmin.
(14:55):
So when you put it in thebarrel it does intensify.
When you go to look at it, saysix, eight, ten years later,
what are the strategies thatpeterson farms do to help
mitigate that?
Jim Lenz (15:04):
what are the strategies that the Peterson
Farms do to help mitigate that?
What are some strategies tohelp manage jasmine?
Dane Gentry (15:12):
Yeah, that's a good one.
So, just like most probablygrain handlers, grain facilities
, corporations out there, wehave been monitoring Be a good
proactive way to catch problemsbefore they happen, because some
of those fines in the centerthat are very hard to break up
and pass air through, you knowwill start to tend to heat up.
We'll see hot spots.
(15:33):
We can pull those out andfigure out a better way forward.
But again it comes down to thecleanings.
We clean all of our grain goinginto bins Found that to be a
better practice than cleaning iton the way out.
Just gives you less problems,whether it's physically trying
to pull from the bin or keepingthat quality in good condition.
A reference coring bins.
(15:55):
We try to do that as much aspossible.
When we get down the sweetlevel, we are sweeping it
completely, talking about everysingle kernel as much as we can
off the floor.
All the dust, any dirt oranything like that also gets
discarded.
Jim Lenz (16:13):
Wow, tender care and making things are clean.
Good efforts there.
I think in an earlierconversation you talk about the
role of innovation labs inreference to some of the things
related to Jasmine.
Can you discuss that a littlebit further?
Dane Gentry (16:28):
Yeah, so we've partnered with a distillery's
parent company.
They have an innovation lab alittle bit north of here, about
a half hour or so.
We've been working with them asmost distilleries are starting
to come to the food safety worldand food safety audits.
They're auditing suppliers justas if I was back in my flower
(16:50):
days.
You know, they come in therewith a quality mindset.
That's what we expect todeliver to them.
So, yeah, we've partnered alittle bit with them.
I've worked with them inconjunction on sending them
samples at all different depthsof our bin to really understand
where that geos been wise.
That gives us understand wherethat geosmin lies.
That gives us feedback where weneed to be better, just some
(17:10):
better ways forward, just tryingto figure out what we got.
At the end of the day, geosminis one of those things that
everybody's still trying to finda way forward.
Eradicate it, wash it, whateverit may be, but most of these
distilleries have learned how towork around it and what their
standard of Vialzman isacceptable and which is not just
(17:32):
like any other defect.
Jim Lenz (17:34):
So you two are given a really good overview of how the
Hamlin grain is different forhigh-end distilling.
Let's talk more about the highstakes in every single kernel.
Can you talk about theeconomics for this?
I think it will be quitesurprising to some of our
listeners how this is sodifferent.
This niche.
Dane Gentry (17:55):
Yeah.
So again, before we get off onthat, I'm always having these
afterthoughts after talkingthrough.
But a little bit back up to theGI, the testing time.
There is no rapid testcurrently.
As we talk today Other grainhandlers will know after toxin
bomb and toxin don there's asomewhat rapid test.
(18:15):
You know it may take five, tenminutes like a GMO test, but
there is no rapid test.
So when that truck shows up atthe distillery or your step it's
subject to humans Snip it,smout it, see if anything's
there or not.
Working with that innovation Ibelieve they've gotten it down
to about three hours is thequickest taking test.
(18:37):
Before that it was.
Yeah, there's some speedytechnology going on there, some
fiber technology.
We're trying to get thatgeotman to cling to that fiber.
There's no quick pass or failon that test yet.
Jim Lenz (18:50):
Yeah, that's really good information.
So, right, it's down to threehours.
Where we're at in thisconversation, this date and time
, 2025, in late May, as we'rediscussing this, that course
could change in the future.
So that's why that humancomponent, using your senses, is
critical, and then all thosemeasures you do to keep things
(19:11):
as clean, as tidy as possiblefor this niche market.
Any comments additionally fromyou, bernard?
Bernard Peterson (19:17):
Well, also, as we're in a business where we
supply 12 months out of the year, so we're always supplying
through the summer months, whichstoring grain through the
summer months is always achallenge Just managing through
the heat, making sure all that'sgood.
Also, we continue to buy grainoff the farm through the summer,
so we have to be very cognizantof the storage practices taken
(19:39):
by those that are bringing usgrain as well, to make sure they
meet those quality standards.
We've got some alternativemarkets.
Not every grain goes to thedistillery.
Some ends up in the world offeed, which is where the quality
requirements are a little morerelaxed.
Jim Lenz (19:54):
Right Makes sense here .
Can you both talk a little bitabout the economics?
There are high stakes in everysingle kernel, so can you lay
some of that out there for ourlisteners, because so many of
our listeners are not in thisniche but they perhaps like the
product that's ultimatelyproduced and they are grain
professionals, whether they'revendor suppliers or in their
(20:14):
operations or whatnot.
This is a really interestingconversation, so let's take it
even further with the economicshere.
Dane Gentry (20:21):
Yeah.
So I would say me and Brianboth echo that sentiment.
We like their products as well.
We don't want wanna changetheir consistency.
But you're looking at this fromthe facility side.
They're filling barrels.
One barrel is anywheredepending on the age statement,
but again 10 to $20,000,.
Once you take that barrel tobought, which you get about 190,
(20:45):
200 bottles of one barrel.
Obviously, as it ages you haveless and less in there.
So yeah, and then on the grainside of things, our side of
things, you know, we know ourmarket prices, we know what a
truckload of corn is worth.
But again the distillers arepaying for very clean truckloads
to be shipped into them, Verygood, high quality, good test
(21:07):
weight, exact moisture thatthey're looking for.
They don't want too dry, theydon't want too wet, they don't
want just dry.
So yeah, delivering on thosethings it's costly.
Jim Lenz (21:18):
Yeah, so there's a lot of care to ensure consistency
and purity in every single loadthat you have.
Consistency is everything, andthat's why distillers avoid old
grain, isn't it?
Bernard Peterson (21:31):
And reliability.
Reliability is a real keybecause you never want to be the
supplier that causes thedistillery to have a hiccup in
their production cycle.
So, with most of these havingvery limited storage, you have
to be there daily, or at leastevery other day, and you pretty
much have to be ensured that youhave the quality they need when
you get there, because theremay not be time to replace that
(21:53):
load sometimes.
So it's very important.
Part of the economics is we'reright in the middle of the
bourbon industry, so Fred is ourfriend here.
Pure luck to grow up in theright spot, but it's that that
is part of it.
But relationships are key andcreating that reputation and I
(22:17):
think everyone who listens tothis understands the reputation
of any business and that is oneof the that is the real key to
making this all work.
Jim Lenz (22:25):
Absolutely Good point.
Now you touched on cleaning.
That is the real key to makingthis all work.
Absolutely Good point, now youtouched on cleaning.
Can you add a little moredetail to facility cleaning
cycles and minimal storage time?
Dane Gentry (22:36):
I would say we also track this metric as well.
Turnover of our facilities wecurrently, as we said, we turn
over all of our facilities aboutone and a half times.
Bernard Peterson (22:46):
I say, unlike a lot of the export houses that
turn their inventory seven oreight times a year, we turn our
inventory one and a half times ayear but part of that is our
location and the grain.
We try to keep grain grownlocally.
A number of our end users todaywant local grain and so our
goal is to keep that local grainlocal for that production.
Jim Lenz (23:08):
Got it.
You're not moving massivevolumes like a commercial
terminal elevator.
But imagine that smaller scalegives you some operational
advantages.
What are those advantages?
Dane Gentry (23:28):
Dang, you've operated in the mercy of a
railroad, you're not at themercy of a barge or the ship
master a little bit slower, Iguess that things happen here in
kentucky and it's a good peaceof mind again.
Jim Lenz (23:40):
Like bernard responded , we are expected to deliver
first time real life results attheir doorstep when we bring so
we talked about storage times,regular cleaning cycles, and do
you talk about coring strategiesto help you keep the grain as
pristine as possible?
I think you touched on a littlebit.
Did you want to add any detailto that?
Bernard Peterson (24:01):
It goes back to the storage strategies that
I've known all my life andthat's keep grain moving.
So you don't like to leave abin sitting for six months.
You use a little bit out of allof them all the time.
Jim Lenz (24:13):
You mentioned already, you have some grain that is
designated for specialty markets.
Let's talk about specialtymarkets and future trends
Non-GMO soybeans in shippingcontainers to overseas markets
you are involved with that tosome degree and the Peterson
Farms right.
Bernard Peterson (24:33):
Yes, we are, that is correct.
We're doing that mainly throughthird parties, but at the same
time we're servicing the needsfor quality and purity.
Jim Lenz (24:42):
How has diversifying into these markets changed your
approach?
Bernard Peterson (24:48):
Well, the specialty markets provide an
opportunity for a little moremargin.
Here and there you also.
In the specialty market thecompetition is not as strong
when we think about soybeans,and 93% of US soybeans are GMO
and we're growing the non-GMO,which is 7% of total production.
Sometimes and today is a primeexample If you've got some
(25:11):
non-GMO soybeans, if you knowwhere they are, they're pretty
valuable.
Today, until harvest happensagain.
Of course, that supply chainseems to have gotten a little
short.
The container market again.
We're re-cleaning some beansgoing to seed quality with some
going in containers.
Most of the beans we ship arenumber two, but we have the
ability to upgrade to number oneor seed quality if needed, if a
(25:35):
customer demands that.
Dane Gentry (25:37):
And I'll add to that seed quality.
I feel like we're one of thefew that also partners with seed
companies to produce them seedas well.
We have our own seed center iswhat we call it where we clean,
bag, ship those out to thesupplier.
Jim Lenz (25:54):
Yeah, we're actually cleaning seed for a couple of
seed producers so we've got atleast a couple different
specialty markets here withnon-gml beans and and with the
uh primarily beans, doing somewheat as well okay so we grow
soft red winter wheat.
Bernard Peterson (26:09):
Most of our soft red winter wheat goes into
the distilling market, but we'redoing.
We're doing some seed work also.
Jim Lenz (26:15):
Do you two see continued growth in the
distilling sector?
What do you see in terms offuture outlook?
Is this a new frontier forgrain handlers?
Dane Gentry (26:25):
I don't think it's quite so new because tradition
has been here for quite sometime with the distilling
industry and the producers herehave been here for quite some
time with the distillingindustry and the producers here.
There was a surge in thebourbon industry where all these
craft distilleries startedpopping up.
People out of different statesstarted grasping on to what
Kentucky was doing here.
That went pretty well.
(26:46):
I think with the currentclimate as it is has kind of
purged that industry of.
You know the ones that reallyhave stuck with quality and
consistency the most, and someof these other ones have
unfortunately fallen to thewayside.
But I don't see much craftdistilleries or new distilleries
(27:06):
popping up much anymore.
But yes, it is something.
If you have a distillery thatpops up in your backyard or in
your state as a grain handler,if you deliver on quality and
excellence, that would be a goodcustomer to go after and a good
partner.
Bernard Peterson (27:22):
The bourbon industry today is in a slight
pullback but, as with any otherindustry, there are ebbs and
flows.
Me personally, I'm prettybullish.
Bullish the bourbon industry, Ithink.
The parts of the world thatbourbon consumption is growing,
I think there are going to besome huge demand.
Primarily Asia and India iswhere I see the growth coming
(27:45):
from, the bigger growth.
Jim Lenz (27:47):
Interesting.
You hear a lot of theseHollywood stars coming up with
their own drink.
I've heard lately Anycommentary about that.
Bernard Peterson (27:55):
Well, we had a distillery that started
construction here locally andI'm pretty sure there was a
football coach involved in theinvestment there and they have
stopped construction forwhatever reason.
We'll see if that comes back tolife.
Jim Lenz (28:13):
All right, dane, what about you?
You've had some involvementwith CHEAPS.
What do you think about peopleusing CHEAPS as a resource to
stay connected with others, fornetworking, for educational
purposes, just for learning andgrowing this industry and
advancing the industry?
What kind of value does thatbring?
Dane Gentry (28:30):
CHEAPS, I'll tell you, is a great society,
something to be a part of.
Membership-wise Each state kindof value does that bring?
Jukes, I'll tell you, is agreat society, a great something
to be a part of.
Membership wise each state kindof has several chapters until
just recently.
I realized Kentucky does nothave them.
So I think there is a very bigmissed opportunity here.
You know this distilleryprocessing rate, which little
people really understand.
(28:51):
It is at them.
They're're doing the exact samething and that's what I'm
planning on doing, just a littlebit more desirable to taste
than what comes off of anethanol column and a little bit
smaller scale and flow than whatethanol producers make.
But quality consistency isthere.
But I think you know, with maybeus continuing to partner,
(29:13):
hopefully to help Jeeps.
You know, maybe we can have achapter here that can bring all
these people to the table.
You know, as of late soybeanproducers, corn growers of
America have started to join theJeeps table.
That isn't to say distillerscan come to the table as well
and the producers that supplythem.
A lot of great opportunities, Ibelieve, at kentucky, small
(29:35):
niche market, bourbonseverywhere, but as everybody
knows, it's pretty big there toowell, we appreciate those
comments.
Jim Lenz (29:43):
Thank you, dane, to both of you.
You know this industry at large.
Grain industry is challenged tofind those who are curious and
informing them and, of course,educating them about this
special industry to help feedand fuel the world and all the
fibers that are produced fromgrain.
Just in general, what is yourmessage to someone listening
(30:04):
today who may be consideringworking in the grain industry?
Why is it so special to youeach personally?
What do you think is importantabout this industry and why
people should get involved andthink of this as a career?
Dane Gentry (30:17):
I would say how I've built up the passion for it
is you know, it's not glamorous, right, it's dirty, it's dusty,
it's outside and in conditions,but it kind of shows you what
you're worth or what you haveand what's about it.
Do you have that perseverance tokeep pushing through with the
distillers now being supplied bysome of our producers and grain
(30:41):
handlers, to really takequality to that next level,
versus just the number one ornumber two grade in appearance
and smell and all aspects?
I would definitely say justcommunicating with others may
give me an idea here that mayfurther our quality.
I guess my number one passionis continuous improvement,
(31:02):
always, whether it's in mypersonal life or business life,
trying to get that 1% bettereach and every day and trying to
figure out what is the rightpassport.
I think partnering with Jeepsand some of those initiatives
that are out there and webinarsand all those great things you
guys provide definitely gets theseed planted pun intended and
(31:25):
gets everybody talking and inthe same room and together.
Everybody has challenges eachand every day in this industry,
but as a collective that we arein this industry, that team
effort really pays dividends inthe end.
Bernard Peterson (31:39):
The people the people are I mean the people in
the grain industry are justgreat to work with.
It's a great community to beinvolved in.
Anybody looking for a career inthe grain business you're
looking at great challenges aswell as great rewards.
Looking for a career in thegrain business you're looking at
great challenges as well asgreat rewards.
We're in a little specialtymarket here, but every market
has its specialties, even theelevator in Kansas that supplies
(32:01):
the fire mills.
You go on to the bigger exporthouses.
They're supplying food aroundthe world.
Look at the importance of whatwe're doing.
We're distributing the caloriesthat the world needs to grow.
I of what we're doing.
We're distributing the caloriesthat the world needs to grow.
Jim Lenz (32:15):
Appreciate those sentiments.
Dane, I think a lot of peoplesupport what you say.
And, bernard, you said topeople I can't tell you how many
times I've heard that fromothers in this industry.
So join the grain industryListeners out there.
If you're not and you'recurious, reach out to Jeeps at
jeepscom.
We'll help set you up and maybeget you to a facility in an
(32:37):
area near you and get youinvolved.
Dean, you actually mentionededucational resources.
This is kind of taking learningon the go, this whole grain
podcast.
You said you've been listeningto this and you share this to
bring about, I think, discussionamongst team members.
You know self-reflect and more.
Dane Gentry (32:58):
Yeah, so I listen to it.
I've got a roughly half hourcommute from where I'm at and
since that time span, just rightto pop on an episode or two, or
from work.
I'll definitely tell you, Ilisten to it quite some time
before work.
It just gets me in that mindset, it gives me ideas, gets me
thinking, just kind of jumpstarts my brain.
But you guys cover all sorts oftopics on episodes and I love
(33:21):
the ones all the way from peopleengagement and growing culture
to ethanol producers andcooperatives and to safety and
equipment maintenance.
You guys are all over the placeand that's really great and I
also recommend it to all theindividuals that I work with on
a daily basis.
Actually, I've gotten one of myown team members to start
(33:42):
listening to it prettyritualistically and he comes to
work and "'Hey, did you hearwhat was on this?
"'Hey, what if we did this',"'They were looking at it like
this'".
And it's just again.
As long as you get thatconversation started and that
brain thinking, as long as youget that talk and that
communication and thatdiscussion started, that's where
(34:04):
great ideas come from Awesome,so propagates discussion.
Jim Lenz (34:09):
whole grain does that.
You've been listening.
Now you are on the show, daneGentry Grain, facilities Manager
at Peterson Farms.
It's been a pleasure, bernardPeterson, partner at Peterson
Farms.
Thanks again for both of youfor joining us today and giving
us a glimpse into thisprecision-focused side of grain
handling and processing.
Thank you so much.
(34:29):
Thank you.
Thank you.
You're very welcome, bernardand Dane.
Thank you for your contributionto the Whole Grain Show.
I'm confident your uniqueperspective helps our industry
grow, stay informed and bringsour global grain industry feel
much more tightly connected Toour listeners.
Thank you for joining the WholeGrain Show.
Once again, I encourage you toshare this episode with your
(34:51):
teams.
If you have not yet subscribedto the whole grain podcast on
your favorite podcast app, Iencourage you to do so, as the
podcast episodes will drop onyour phone as soon as they're
released, or whatever deviceyou're using.
Plus, you can catch up veryeasily and quickly on all past
shows as well.
Whole grain is found on applepodcast, google music, spotify,
(35:12):
amazon music, podbean, pandoraand dozens more.
The whole grain podcast bringstogether grain industry
professionals like yourself from89 countries from around the
world.
Be sure to share this episodeand the news of the whole grain
show as an easy to access andeasy to share educational
resource with your network.
By doing so, it really helpsour industry communicate the
(35:33):
various perspectives provided byour guests.
By sharing with just five otherpeople, you know, you help grow
this industry.
Thank you for doing so.
One can also find the show onthe Jeeps website at jeepscom
slash whole grain.
If you'd like a topic addressedon the show or if you want to
leave a comment on what youthink of the show, or perhaps
(35:55):
you'd like more information onhow the Grain Elevator and
Processing Society could supportyou with education and training
needs, please reach out to medirectly.
I'm Jim Lenz, director ofGlobal Education and Training at
Jeeps.
My email is james at jeepscom,that's J-A-M-E-S at G-E-A-P-S
dot com.
We look forward to connectingwith you To learn more about
(36:17):
being a member of the GrainElevator and Processing Society.
Please visit jeepscom G-E-A-P-Sdot com.
Until next time, keep learning,keep innovating and keep moving
the industry forward.
Have yourself a great day andthanks for listening to the
Whole Grain Show.
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