Creating agriculture entrepreneurs in Montana

The best parts about "The Last Best Place" are the small communities around the state. Living and making a living in Montana’s rural towns is not only possible – but also preferable.

By Robert Leigland

http://www.theprairiestar.com/articles/2004/11/10/ag_news/opinion/opinion01.txt

Doing business far away from a bigger city certainly presents challenges. Our agriculture community faces specific but not insurmountable challenges. The goal should not be to move businesses into metro areas, but to make rural businesses viable and vibrant so their owners and employees can enjoy the benefits of small town living. I like to call the creative and resourceful producers who live in rural Montana agriculture entrepreneurs.

A strong coalition of committed partners exists in Montana. These groups provide support and assistance to the business members of Montana’s rural communities. I would like to tell you about three organizations in this coalition, whose very mission is to create successful and inventive agriculture enterprises.

Whether ag-entrepreneurs choose to strike out on their own or band together to form a cooperative, Montana Agriculture Innovation Center, Montana Cooperative Development Center, and USDA Rural Development work along side them to ensure every chance for success.

Montana State University, through The Montana Agriculture Innovation Center (MAIC), shepherds new and emerging business ventures by providing a wealth of assistance to Montana’s 28,000 independent producers and processors.

MAIC meets with individuals or groups to help define their project’s needs, and then works with them to solve project problems. MAIC assists entrepreneurs to develop marketing plans and business plans and even provides start-up assistance grants.

Montana Cooperative Development Center (MCDC) provides assistance to individuals or groups who want to start or improve a co-op. MCDC helps co-ops, whether they are agriculture or non-agriculture based, with funding, legal assistance, training and research.

Nationwide there are nearly 3000 farmer co-ops that account for 300,000 jobs. Montana co-op members live and work in the communities they serve. They are Montana-owned and Montana-controlled, which gives them a better perspective on their community. Montana co-ops contribute to Montana’s economy, simply put ? the money stays in the local community.

MAIC and MCDC also assist individuals or co-ops by helping Montana producers develop alternative crops, technologies, and processes that add value to their production.

Adding value to existing commodities is the very best way to keep Montana’s rural businesses thriving. Developing new uses or new products from Montana’s outstanding agriculture goods is what being an agriculture entrepreneur is all about.

After the ag-entrepreneur’s development phase, USDA Rural Development can make loans and grants to local development organizations that create revolving loan funds. These revolving loan funds target small businesses and value-added ventures to provide gap financing at the start-up phase.

Rural Development also works with local banks by guaranteeing commercial loans to ag-entrepreneurs. These guarantees allow producers to get loans at competitive rates and much longer terms than otherwise available.

Rural Development improves economic opportunities for rural Montanans by working with Montana Cooperative Development Center, The Montana Ag Innovation Center, and other coalition members such as: Cenex Harvest States, Mission Mountain Cooperative Development Center, Montana Farmers Union, Montana Farm Bureau, Montana Graingrowers Association, Montana Stockgrowers Association, Montana State Department of Agriculture and the many local development organizations across the state.

A simple call to any of these groups will put ag-entrepreneurs on the road to success and more importantly, allow the owners and employees of these businesses to remain in the small towns they love.

If you are an ag-entrepreneur and would like more information, please contact:

€ The Montana Agriculture Innovation Center, 4570 MT Highway 35, Kalispell, MT 59901; (406) 755-4303; http://ag.montana.edu/NWARC.

€ Montana Cooperative Development Center, P.O. Box 3027, Great Falls, MT 59403; (406) 268-2644; http://www.mcdc.coop.

€ USDA Rural Development, P.O. Box 850, Bozeman, MT 59771; (406) 585-2540; http://www.rurdev.usda.gov/mt/ .

(Robert Leigland is the acting state director for USDA Rural Development in Montana.)

Copyright 2004 The Prairie Star