R2020-153 Resolution Authorizing Cash Rent Farm Lease with Lynn Clarkson, DBA Clarkson Farm for Organic Agricultural Purposes

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10/14/2020 Item Coversheet Public Works DATE: 10/13/2020 MEMO: 2020-145 TO: Mayor Julie Moore Wolfe and City Council FROM: Scot Wrighton,City Manager Matt Newell,P.E.,Public Works Director Keith Alexander,Water Production Manager SUBJECT: Resolution Authorizing Cash Rent Farm Lease with Lynn Clarkson,DBA Clarkson Farm for Organic Agricultural Purposes SUMMARY RECOMMENDATION: It is proposed that the City Council adopt the attached resolution authorizing a Cash Rent Farm Lease with Lynn Clarkson,DBA Clarkson Farm for Organic Agricultural Purposes at the Oakley Sediment Basin. BACKGROUND: The City owned Oakley Sediment Basin(Basin),where lake sediment was pumped to,has dried sufficiently to allow portions of it to be reclaimed for possible agricultural production. There are approximately 390 acres inside the Basin and about 75 acres were recently mowed to allow some crops to be planted. The sediment is very deep and has unique and somewhat unknown agronomic and water holding characteristics. Therefore,First Illinois Ag Group,the City's farm management consultant,recommends that a 16 month lease be authorized with Lynn Clarkson,to attempt to grow a crop of organic cereal rye and organic clover(as a cover crop)on up to 130 acres. If the crop is successful,both will be harvested. Because the interior of the Basin has not had herbicide or pesticide applied to it for at least the past 15 years,the entire 390 acre interior can be certified for organic production,which typically provides a significantly higher profit margin than conventional farming along with significant environmental benefits. If this lease is successful,it is anticipated that a new lease will be negotiated with Mr. Clarkson,or possibly another farm operator,to provide the City with a lease payment and a portion of the revenue to be generated. If this lease is not successful,the City will have learned from the experience at no cost in City funds,and consider other reclamation methods. There are several reasons why First Illinois Ag Group recommends Mr. Clarkson: 1. He is a highly experienced and successful local organic farmer and owner of Clarkson Grain Co. in Cerro Gordo which markets organic products worldwide. 2. Due to this experimental operation and risk of getting farm equipment stuck in the Basin's sediment,the lease is at no cost to the city,and the city will not receive any crop revenue for this first 16 months of production,if there is any. 3. Cereal rye will be planted this month and harvested as seed in the summer of 2021. 4. Clover will be planted into the rye in Feb.2021 and harvested later that year. 5. Clarkson will assist to certify that the test plot is organic and can assist to certify the rest of the Basin if necessary. 6. Clarkson would like to start immediately to prepare the test plot for rye since it is already late in the planting season. 7. Starting immediately takes advantage of the 75 acres of the Basin that have already been mowed. 8. If the City waits until next spring or early summer to begin farming operations,the 75 acres may have to be mowed again and/or control burned first. Burning will not remove the willows sufficiently,so some additional mowing may always be needed. This is the first step toward reclaiming the Basin's interior for productive use. Agricultural production and/or other options could begin providing a revenue source for the City. The earthen berm that surrounds the Basin will not be able to be decommissioned by the Illinois Department of Natural Resources for several years until the Basin's thick sediment layer has sufficiently dried out so that it will not move as the berm deteriorates. https:Hdecatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=3065 1/2