Montana Grain Producers encouraged to think globally

Farm locally, think globally was the mantra as hundreds of farmers gathered in Great Falls on Wednesday for the opening of the Montana Grain Growers Association’s 49th annual convention and trade show.

"Minute by minute, there’s a change taking place in the world that can make you rich or make you poor," said Jim Bower of Ag Day TV fame, one of several featured speakers at the event at the Best Western Heritage Inn.

By KAREN OGDEN
Tribune Regional Editor

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These days, the region’s farmers are feeling a bit more flush, thanks to a bountiful harvest in most areas. The brighter financial picture, coupled with fair weather, helped boost convention attendance, organizers said.

Registration for the two-day event is expected to top 500, compared with 475 last year.

Trade show participation also is up, with 65 exhibitors, including a strong showing of banks and equipment manufacturers, said MGGA Executive Vice PresidentRichard Owen.

"Farmers, they’re looking at making a few more capital investments in equipment than they have for a few years," Owen said. "That is a reflection of a better feeling this fall."

But Bower was there to warn producers that factors far beyond the borders of Montana and even the United States can help make or break their operations.

On the bright side, producers of high-quality milling wheat have a golden opportunity, said Bower, owner of Bower Trading Inc.

Demand is strong, and the U.S. dollar is weak, valued at 81 to 82 cents compared with $1.43 for the Euro.

Europe will take advantage of its buying power.

"We need to get on this today," said Bower, urging Montana farm groups to seize the opportunity.

On the other hand, emerging agricultural powerhouses such as Brazil present threats to the U.S. export market, but also business opportunities.

Brazil’s cattle herd is 50 percent larger than the U.S. herd and growing exponentially, Bower said.

Deforestation continues to accelerate as the nation clears the equivalent of seven football fields a minute — amounting to an area the size of Maryland cleared each year.

The South American nation also is expanding corn production.

"Do not underestimate the desire of the Australians and the Brazilians to move into our export markets," Bower said.

Above all, think globally, he urged producers.

"Don’t just look at the U.S. supply/demand situation," he said. "Look outside the box at the global spectrum."

The average Montana farmer doesn’t market his grain directly to foreign buyers.

But Montana grain elevators ultimately ship much of the state’s harvest to the West Coast for the export market.

Dan Picard, who farms in The Knees area east of Brady, said he sometimes watches world market trends to decide when to sell his grain.

Picard, an Ag Day fan, said Bower’s talk was a big draw for him at this year’s convention.

He also came to check out the latest gizmos.

Among his favorites was a new GPS-guided, hands-free steering system for pickup trucks.

The system won’t drive your truck by itself, and it’s strictly forbidden on the highway, said DeImna Heiken, president of Triangle Ag Services in Fort Benton.

But it can save farmers money by helping them drive a spray tank down their field in a straight line, preventing costly gaps or overlaps in fertilizer or pesticide applications.

Previous GPS systems worked only on combines or other equipment with hydraulic steering systems.

Other exhibitors ranged from banks and accounting firms to chemical and seed dealers.

Trade show traffic dried up during the lunch hour, when farmers gathered to hear talks by U.S. Sen. Conrad Burns and Rep. DennisRehberg.

Both spoke about the urbanization of Congress and the dwindling number of farm state lawmakers.

"It is tougher and tougher and tougher to pass disaster legislation," Burns said.

He called for reforms to crop insurance as an alternative to disaster aid.

"I would rather subsidize the premiums than go back to Congress every year for a huge disaster assistance package," Burns said.

He named railroad competition as another key issue in the coming year.

Montana is considered a "captive shipper," with the Burlington Northern Santa Fe Railway controlling more than 90 percent of its rail operations, according to a recent report commissioned by the state Legislature.

The nation’s railroad giants are "softening a little," Burns said. "They’re starting to come to the table."

The senator also said he will work to bring broadband service to rural areas to support tele-medicine and distance learning.

Rehberg also pledged to work with MGGA in early 2005 to gather farmer input on crop insurance reforms.

He named estate tax reform as another key issue.

Mostly, he urged farmers to work together to make their voices heard in an increasingly urbanized Congress.

Many lawmakers don’t understand, for example, how opening the U.S. border to Canadian cattle could affect Montana producers, he said.

Also key is making sure that U.S. producers have access to the same farm chemicals, at the same price, as Canadian producers, Rehberg said.

"None of us want to be isolationists," he said. "All of us want to believe in free and fair trade, but fair is the key word."

Picard, the Brady-area farmer, said he appreciated the message of cooperation among producers.

"The farmer’s story needs to continue to be told," he said. "Or our interests won’t be listened to."

Ogden can be reached by e-mail at [email protected], or by phone at (406) 791-6536 or (800) 438-6600.