Strength in numbers

Commodity groups use their clout to inform, influence and expand markets.

By Dan Lemke

Farmers can be a fiercely independent lot. They manage their own operations as they see fit.

But independence isn’t contrary to cooperation. Producers have long realized the benefits of joining forces through mechanisms such as commodity organizations and grower associations. Minnesota has no less than 150 of these, representing agronomic resources from apples and aquaculture to wheat and wild rice. These outlets support efforts that benefit a large number of farmers.

Ag group benefits

Among the benefits of group participation are educational programs for producers, increased impact on agricultural policies through lobbying, and coordinated research into commercial uses to increase demand for members’ farm goods.

“Education is one of the most important aspects of our organization,” says Amy Brandel, communications director for the Minnesota Pork Producers Association, an organization of 3,800 producers. “There are numerous services members can access that help make them better producers. We give them a voice in setting legislative policies and provide resources for them to address their concerns.”

Nathan Johnson also believes in the strength of numbers. As president of the 4,000- member Minnesota Corn Growers, Johnson says producers need to play a part in improving their own livelihood. “There is more we can do for farm programs ... like revising crop insurance. Producers can have an impact on how programs like this are set up on a county, state and national level.”

“One of the biggest things for us is marketing opportunities for Minnesota farmers,” says Roger Dale, president of the Minnesota Soybean Growers Association, which has more than 3,500 members. “We’re also working on transportation issues to ensure produce can get to the market. We’re doing research to make sure our farmers can be least-cost producers while making sure we provide our customers with top quality products.”

Many promotional efforts are supported by producers through checkoff funds. Checkoffs take a small percentage of income, per bushel of grain or pound of livestock, to support efforts that aid the industry as a whole. In Minnesota, soybean, corn and pork producers all contribute to their own industry’s advancement through producer checkoffs.

Use it at home

Billions of dollars worth of raw farm products leave Minnesota every year. Dale says about half of Minnesota’s soybeans are shipped out of state, while the rest are processed here for oil and protein. About 60 percent of Minnesota’s corn production leaves the state as raw commodity. Of the remaining 40 percent, Johnson says about two-thirds is consumed by ethanol plants and livestock.

Producers are keenly aware of the need to market all the commodities they produce. Commodity groups put tremendous emphasis on developing new uses and expanding markets for their crop.

At the same time, commodity groups realize how they rely on each other. For example, wheat, corn and soybean growers all depend on a strong livestock industry to keep demand for feed high. “Hogs, turkeys, chickens and cattle eat up a lot of beans,” Dale says.

“We definitely need a strong livestock industry in this state,” agrees Johnson, who farms 2,700 acres near Lowry, Minn. “Some of the counties in my area actually have to bring corn in because there is so much livestock production.”

World markets vs. new uses

The Minnesota Department of Agriculture says Minnesota’s agricultural and food exports total $12 billion. Commodity groups make huge investments to cultivate international trade in the hope of opening larger markets. But world markets can be fickle. So commodity groups make significant investments each year to research ideas that increase domestic demand for crops and animal products.

“New uses are very important,” Johnson says, “especially when prices are low and we have an oversupply. Uses like Harvest Bright products, polylactic acid for fibers and glycol for antifreeze or airplane de-icer all have the potential to utilize hundreds of millions of bushels of corn.”

“Look at where worldwide production has gone,” Dale says. “South American production is up, there’s an increase in canola acres, everyone wants to cash in on what soybeans have done. Building new uses and new markets at home help to insulate us from the effects of what’s happening in the rest of the world.”