UPFRONT

First-year help with livestock

We liked what Missouri District 112 State Representative Tom Loehner had to say when we ran into him at the capitol in Jefferson City. In the last legislative session, Loehner sheparded a program that will help young livestock farmers get a start in an increasingly difficult industry.

The bill establishes a Family Farms Act that allows farmers with gross sales of less than $250,000 per year the opportunity to apply for a loan (first year interest-free) to purchase breeding livestock.

A small farmer by this definition can obtain one loan per family and can use it to purchase one type of livestock.  Maximum amounts are $75,000 for beef cattle; $75,000 for dairy cattle; $35,000 for swine; and $30,000 for sheep and goats.

The interest accumulated by the lender is picked up by the state at the end of the year in the form of a tax credit. The state benefits from the economic growth generated for one full year before distribution of tax credits. During its forming, proponents of the program stressed that the Family Farms Act is not a handout. Farmers still have to pay the loan. The year without interest will allow new farmers to generate revenue before making payments.

“I want to get to the point that if we have a person who has the ability, they can get into animal agriculture. I know we will have an influx [in the program] early, but it is not a guaranteed loan. It is up to the producer to make it work and qualify for the loan,” said Loehner.

“This legislation comes from the heart. There are so many people out there who grew up in hog, beef or dairy that inherit or own farm property and can’t afford to put livestock on it. They then have to lease out their property to other livestock farmers. When we keep more family farms with livestock, we have more than one voice of agriculture. The kids who grow up in agriculture will be the next voice. By keeping small farmers and families in agriculture, we are seeding the future.”

Loehner is from Koelztown, Mo. The 112th District covers Gasconade, Maries and Osage Counties.

Where are the entrepreneurs?

In the country, mostly. This map based on the 2000 census shows if you want to find entrepreneurs, look in rural Missouri. But that’s over simplified. Full-time entrepreneurs are defined as those individuals who either report over 50 percent of their total income as self employment income or who classify themselves as self employed in either an incorporated or an unincorporated business. That means many farmers and small-town business people fit the bill. Obviously, large employers depend on population base to fill jobs, reducing the ration of entrepreneurs in metro locations. Note that areas with the richest entrepreneur ratio have a loose correlation with slimmer populations and rural areas. In the country, it seems, you make your own career.

Biodiesel gears up in Kansas City

In August, Cargill and the Missouri Soybean Association announced plans for a 40-million-gallon-per-year biodiesel plant and 30-million-pound-per-year, food-grade glycerin refinery adjacent to Cargill’s existing soybean processing facility in Kansas City. Plans call for the facility to be jointly owned by Cargill and Paseo Biofuels, LLC, a new entity to be formed by Missouri soybean farmers and MSA. Pending regulatory and other approvals, construction on the facility is planned to start this fall, with biodiesel production projected to commence in the summer of 2007.

If seen to fruition, the facility would use soybean oil as the primary feedstock. The glycerin refinery would produce USP-grade 99.7 percent purity, kosher-certified glycerin.

“This is a great opportunity for producers to get involved in adding value to their crops and farms,” said David Durham, board chairman of Paseo Biofuels, LLC. “By partnering with Cargill, we hope to utilize its technical and marketing expertise. Such teamwork would build long-term security in the rapidly changing biodiesel industry.”

 “The addition of this biodiesel production plant would give Missouri soybean farmers another opportunity to play a large part in the industry as both suppliers and investors,” said Dale R. Ludwig, MSA executive director and CEO. “Missouri has a great group of legislators who understand the importance of renewable fuels like biodiesel and have helped create and pass bills which will help American farmers fuel the nation.”
Cargill currently operates biodiesel plants in North America and Europe.

Since the Renewable Fuels Standard was added to the Energy Bill in 2005, construction of biodiesel plants across the nation has expanded significantly. The RFS standard requires that by 2012 there will be 7.5 billion gallons of renewable fuels in the nation’s supply.

A tale of different roots

This isn’t the most scientific of comparisons, but it struck us as dramatic enough to include here. The corn on the left is MorCorn MC3575 CB/CRW, a top-line genetic package that includes corn borer and corn root worm protection. The corn on the right is MorCorn MC3573 RR/CB a similar genetic package but without corn root worm protection. The image was taken at press time in mid-August. These plants were collected in the same field  from  adjacent rows and at a blind,  predetermined distance into field. In other words, plants were 30 inches apart but picked more or less at random.  At press time, it was too soon to tell yield difference for situations like this, but there were reports of CRW corn staying green longer during drought stress. Will that equate to more yield? Check with your local MFA Agri Services for information on local plots as harvest progresses.

Soybean acres would drop to 33 million. In spite of rising corn production, FAPRI projections say corn prices also go up due to increased demand from the growing number of ethanol plants in the Midwest.

The average corn price is $1.98 per bushel for the 2005 marketing year just ending. The price for the crop now growing in the field is projected at $2.33. By 2010 the average price jumps to $2.69 per bushel in the outlook.