Value-added more important than ever

By Edgar Olson
Executive Director

It’s been nearly ten years since AURI was formed to help reduce commodity stockpiles and strengthen our state’s rural economy. At its inception, AURI was the only organization of its kind in the country.

We’re not alone anymore. Other states have since recognized the need for organizations that focus on new uses and value improvements to agricultural commodities. North Dakota, Iowa, Kansas and Florida have all invested in the rural economy with mechanisms to develop and support value-added agriculture.

When commodity groups and farm organizations came together to create AURI, they were reacting to both immediate and long-term needs. Their foresight should be applauded. Nearly ten years later, it is clearer than ever that the most viable method to preserve prices and keep farmers thriving is to focus on value-added agriculture.

Farming continues to be a tough business. For the most part, raw commodity prices remain painfully low, shrinking profit margins as input costs increase. Value-added agriculture isn’t a cure-all, but it’s good medicine for a healthy economy. It is imperative to investigate new ideas and to continue researching promising trends for possible investment down the road.

Over the past couple months, I have had the chance to meet with many commodity group leaders including Jim Palmer of the Minnesota Soybean Growers, Bruce Stockman of the Minnesota Corn Growers and Ron Eustice of the Minnesota Beef Council. A recurring message I’m hearing is the need to strengthen commitments to value-added agriculture.

There are exciting new uses being developed from commodities like soybeans, dairy products, even wool. Collectively, these value improvements mean millions of dollars to the Minnesota economy. AURI-supported ventures last year alone accounted for more than $16 million in added value to raw commodities.