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NCGA Future Ag Task Force Presents Choices in Corn Belt Evolution
March
11, 2002
FOR
IMMEDIATE RELEASE
Contact:
Gary Bradley, NCGA, 636-733-9004, ext. 139
ST.
LOUIS (March 11, 2002) -- The National Corn Growers Association (NCGA)
sees a future of decline for the world of agriculture. Over the next
10 years, the nation's farmers must step up to the plate to prevent
this decline. For this reason, NCGA organized the Future Structure of
Agriculture Task Force.
Last
year, the Task Force set out to study the possible decline of farming
communities in the coming decade. The results of that 20-page report,
"Choices in the Evolution of Corn Belt Agriculture," have
been released and are available from the NCGA.
"What
growers need to understand," said Task Force Chairman Bill Horan,
a grower from Rockwell City, Iowa, "is nothing is guaranteed. The
nation's corn growers must expect constant whitewater in the years ahead.
Some in agriculture may not like the interdependence between growers
and their customers, but the tradeoff of exchanging independence for
interdependence is a lot better to today's farmer than reliance on the
government."
Horan
went on to discuss the demographics facing commodity agriculture. "Right
now, the large, family-owned farms are producing roughly 90 percent
of the food supply. That's only 10 percent of the farms in the nation,"
he said.
"These
farms are the engines keeping agricultural exports and bulk markets,
like feed and ethanol, globally competitive," continued Horan.
"With new technologies on the horizon, we can only expect these
farms to get larger. But, value-added agriculture has evolved to deliver
high quality, consistent specialty products to more demanding consumers."
Horan
also stated growing these products can open new markets to both the
large farms and the small, independent farms, but in most cases, they
must give up some of their traditional independence and become part
of a 'product alliance' to tap these markets.
The
report not only focuses on the challenges facing corn growers in the
21st century were addressed, but also provides some solutions for today's
growers to face those challenges.
Horan
said one solution for growers to consider is pharmaceutical farming.
"It's a prime example of how high-value ag 'clusters' could form
in rural areas," he said. "Pharmaceutical farmers can foresee
multiple community spin-offs from the venture."
The
report also cites certain types of biotech corn as an example of this.
"One type that is currently under development in contained conditions
can reduce the cost of a cystic fibrosis drug fourteen fold," said
Horan. "The manufacturer of this medicine has said once it has
been approved, thousands of acres of farmland will be needed and that
benefits the farmer."
High-value
food and feed contracts are another option for growers. "We've
had a couple of things happen recently that increase the value of this
option," he said. "The aftermath of StarLink has triggered
industry-wide efforts to improve outlets for identity-preserved grain.
Since Sept. 11, the United States is striving for a more secure domestic
food supply -- and these contracts can help achieve that."
Finally,
said Horan, closed-loop co-ops can bring back vertical integration to
rural communities, which could be particularly helpful in the western
grain states, which benefit from fewer processing options than states
in the east.
"The
Dakota Growers Pasta Company is a great example of this," he said.
"This co-op was funded in the early '90s out of the frustration
of North Dakota growers. The frustration stemmed from the fact two-thirds
of the nation's durum is produced there, but is milled out of state.
By integrating production and processing, they have been able to turn
a profit every year of their existence."
The
full report is posted on the NCGA web site: www.ncga.com;
or copies can be obtained from the NCGA at 636-733-9004, or e-mail at
corninfo@ncga.com.
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