State ag official speaks
Published 10:00 am Thursday, September 17, 2009
A leading Minnesota Department of Agriculture official said the agency can do three key things to help farmers: refrain from increasing the tax burden on farmers, promote trade relationships, and promote domestic renewable resources.
Local farmers had an opportunity for their voices to be heard Wednesday at Freeborn-Mower Cooperative Services in Albert Lea.
Minnesota Department of Agriculture Deputy Chairman Jim Boerboom spoke and fielded questions from a crowd of about 22 local famers and officials.
“Our purpose here is to ask you, ‘What can we do to strengthen the strength of our agricultural economy?’” Boerboom said.
The listening session was designed for the Department of Agriculture to tell farmers how they’re helping them and to give farmers a chance to voice their opinions.
“Agriculture is still a vital part of our rural economy,” Boerboom said. “We need to make sure that we continue to promote trade opportunities and make sure that we don’t add extra costs of burdens to producers.”
Boerboom said agriculture is important because it has about a $55 million impact to the overall economy in Minnesota each year — the second largest economic driver behind manufacturing.
That also supports about 367,000 jobs throughout the state.
“A lot of people who are not part of agriculture forget what it is to see the real impact of agriculture to our state,” he said.
That $55 million doesn’t only tally crop sales, it accounts for all the various industries the farm industry supports. Boerboom stressed that farmers contribute to the overall economy by buying supplies such as fertilizers and farm equipment, and their spending also benefits “Main Street” through things like insurance and loans.
Boerboom said farmers in this area contribute about $843,000 a year to the economy.
“A lot of that activity — a lot of the benefit for Minnesota agriculture really begins on the farm,” he said.
Many of the farmers in attendance were concerned about prices.
Gloria Hall brought up concern for dairy farmers. She said that while a gallon of milk cost $5, the dairy farmers aren’t seeing a fair share of prices from that. Hall, a former dairy farmer, said the gap in the cost of milk and what the farmers are paid means someone in the middle is making money.
“We have no control of our prices,” she said.
Clarks Grove farmer Jerry Demmer expressed concern that H1N1 influenza being labeled the “swine flu” is hurting the hog industry.
Demmer also voiced concern about low prices farmers are being paid for their crops when food prices are high in the stores. He stressed that consumers should question the situation. Boerboom said it would be beneficial to raise awareness about the costs of the producers and the processing.
Boerboom agreed that the current prices are not benefiting the dairy farmers.
“These prices are not sustainable. This is not the environment that is going to see farmers continue to be in the dairy business,” Boerboom said.
Some farmers could take matters into their own hands through regional, local processing, Boerboom said.
Others in attendance stressed the importance of building the ethanol industry in Minnesota. Boerboom said that’s important because it keeps energy money local.
Lawyer Matt Benda, participating as part of the Albert Lea-Freeborn County Chamber of Commerce’s Agriculture Committee, mentioned the death of Minnesota agronomist Norman Borlaug. Benda stressed the importance of technology in the future of agriculture.
The use of biotechnologies and genetic engineering are important to increase yields, Boerboom said.
Such improvements to production and yield could be important into the future, Demmer said, because of the growing worldwide population. The population increase will put additional stress on food production, and much of that burden will fall on existing farmland, he said.
Such improvements could be difficult as some farmers face financial difficulties.
The Minnesota Department of Agriculture is looking into ways to provide resources for farm families facing financial difficulties. Many of these families are making tough decisions about staying in or leaving the farm industry, Boerboom said.
In August, the department announced plans to establish the Minnesota Farmer Assistance Network. That would give struggling farmers an opportunity for assistance as they face financial difficulties and make decisions for the future.
“It doesn’t fix the market. It doesn’t fix the prices but it does provide assistance to help families who are in immediate need,” he said.