State government officials insist they aren’t neglecting agriculture and see a bright future for farming in Missouri. Agriculture remains Missouri’s top industry, pumping more than $12 billion into the economy annually, directly and indirectly employing more than half a million Missourians, 16% of the total state employment. Still, it doesn’t often get top billing in a state legislature desperate to generate jobs.

Missouri Farm Bureau President Charlie Kruse worries that too many Missourians are too removed from the farm.

“I just think sometimes we take things for granted,” Kruse says. “I hope we don’t take for granted this great abundance of food that we have in this country to the point that we do things that really impede our ability to produce and to continue to produce this quality food.”

Few speeches or news conferences on economic development mention farming. Governor Nixon, though, says that doesn’t mean it’s ignored.

“It’s certainly something we talked about a lot as we’ve pushed forward on our science reinvestment act,” Nixon tells the Missourinet. “That’s right down central when it comes down to plant and animal science.”

As Nixon views the needs of struggling farmers, he sees a need for capital and technology.

“Missouri farmers are a resolute group, folks that have embraced technology in the past. We want to make sure they do here. We want to make sure they have the capital to do what it takes to get going,” Nixon says. “I feel very strongly that we are in a state with a rich tradition of agriculture, a tradition which we are confident will continue.”

Recession still has the nation in its grip. Farming is affected just like every other sector. But State Agriculture Director Jon Hagler insists recessions bring opportunities. Hagler says farm interests must make sure consumers understand the impact of agriculture on their lives.

“I really look at the future as bright,” Hagler says. “Agriculture is going to go on and I predict it’s going to lead this state into better economic times.”

The House Interim Committee on Emerging Issues in Agriculture report stated that, “It is evident that Missouri agriculture is at a crossroads.” Chairman Charlie Schlottach (R-Owensville) says farming’s future is tied to consumer curiosity; people asking where their food comes from.

“If we empowered the consumer to ask that time and time again that would be a tremendous desirable change on agriculture,” Schlottach says.

Rep. Tom Loehner, who farms near Koeltztown, says farmers have almost done their job too well: an abundance has made consumers complacent. He points out that the current generation has never gone to a grocery store than wasn’t stocked with a wide variety of food.

Loehner has heard the promises from various businesses that come to the legislature for help; promises to create jobs that either make somebody money or save somebody money.

“If we do our job, we  have fed somebody. And that’s something that no other industry can say,” Loehner tells us. “That’s our main goal. That’s our purpose for farming, is to feed the country, not to get rich, not to be a land tycoon. It’s to feed the country. The inside soul of every farmer is to feed the world and that’s what we do.”

AUDIO: Brent Martin reports [5 min MP3]

Farmers receive a lot of attention from politicians during elections, but could be excused for feeling a bit neglected during the legislative sessions.

Senate leader Charlie Shields (R-St. Joseph) admits agriculture can get lost in the economic development mix.

“And maybe it’s not sometimes seen as significant as when you bring a huge manufacturing plant in, but the reality of it is it is a big chunk of the economy and there are a lot of jobs that are tied directly to agriculture,” Shields says.

Agriculture has had successes, mostly notably in the bio-fuels industry. Missouri has sunk tens of millions of taxpayer dollars into incentives to lure investment into ethanol and bio-diesel plants, reaching its height in Fiscal Year 2009 when $46.7 million in general revenue funds were budgeted for bio-fuel subsidies. Row crop farmers benefited. Grain prices rose, especially corn. The State Tax Commission concluded that the value of cropland rose significantly enough to raise its valuation, even as the commission proposed a decrease in the valuation of pasture ground. The legislature rejected the proposal and kept farmland valuations steady.

Other sectors haven’t been as successful. A House Interim Committee on Emerging Issues in Agriculture issued a report on January 27th of 2009. It has largely been ignored. A special House task force was formed in March of last year after the $27 million Cathy Gieseker grain fraud case in Martinsburg and the bankruptcy of Gallatin Grain Company came to light. A year later, nothing has been done. Task force members say they are waiting for a report from the State Auditor. A proposal to tap unused tax credits to help struggling dairy farmers passed the House last year, but died in the Senate.

Senate Agriculture Committee Chairman Dan Clemens (R-Marshfield) doesn’t blame the legislature as much as an overall lack of understanding about what’s at stake.

“I just think that if there’s a failure, it’s not the legislature,” Clemens says. “It’s a general getting the message across from everybody.”

At times agriculture can’t even make it on the agenda. On February 24th, the House Agri-Business Committee heard seven bills; all various conceal and carry weapons bills. None dealt with agriculture.

House Speaker Ron Richard (R-Joplin) defends assigning the bills to Chairman Brian Munzlinger’s (R-Williamstown) committee.

“I sent the gun bills to him as a favor and I trust his judgment,” Richard tells the Missourinet, pointing out that Munzlinger was a lead sponsor of the conceal and carry law in Missouri.

“I’m glad the Speaker did send it to my committee,” says Munzlinger.

A move to help livestock producers passed the legislature, but fell victim to a line-item veto. Rep. Tom Loehner (R-Koeltztown) unsuccessfully pushed to override the veto of the Livestock Feed and Crop Input Loan Guarantee Program, which he said could have really helped pork producers.

“They’ve had two of the worst years in history,” Loehner says. “They had a chance through this bill to be able to guarantee a loan, to buy some corn up at harvest time, to fill these needs at a little bit cheaper price than what the market normally goes to, to try to get ahead of some of these costs.”

Loehner points out the program only guaranteed farm loans; it didn’t commit the state to loaning money.

Still, Governor Nixon used his line-item veto power to strip it from the budget.

“With the challenging resources that we have at this time, we want to make sure that the economic development tools that we have are used effectively and efficiently,” Nixon tells the Missourinet. “I think there are more efficient and effective ways to get the same output.”

State Agriculture Director Jon Hagler defends the veto. He says it’s difficult to start a new program during lean budget times. He says the governor has asked the Agriculture Department to expand existing programs to aid cash-strapped livestock farmers, such as the Single-Purpose Animal Facilities Loan Guarantee Program.

In wake of the veto, State Treasurer Clint Zweifel stepped up agriculture loans through the Missouri Link Deposit Loan Program, helping 1,000 farmers with $123 million in loans.

“I think one thing that I’m excited about long term is creating even more partnerships with the USDA and other loan-guarantee organizations that are actually providing guarantees on loans, so that we sort-of piggy-back on those opportunities to have a guaranteed loan, but also one that is a lower interest rate,” Zweifel says.

Despite such movement, Sen. Wes Shoemyer (D-Clarence), who farms in northeast Missouri, doesn’t believe state government does enough for farming, punctuating the point with an “emphatic no”. Shoemyer says agriculture doesn’t get the attention it deserves, noting the legislative response to various economic development projects.

“We’re very quick to find $50, 60, 70 million, somewhere, amazingly to get to those,” Shoemyer says, while lawmakers struggle to find $10 million for the Department of Agriculture.

We look into the future of farming when this series concludes tomorrow.

AUDIO: Brent Martin reports [6 min MP3]

A special interim House committee finds much potential in Missouri’s number one industry, but potential not being realized.

Agriculture injects more than $12.4 billion annually into the state’s economy, employing more than 245,000 workers. It could have a larger impact.

Rep. Charlie Schlottach (R-Owensville) chaired the House Interim Committee on Emerging Issues in Agriculture. He sees a tremendous amount of natural resources that haven’t had value added to them.

“We’re simply in the Dark Ages, as far as I look at it, in regard to adding real value where our commodities can become specific products and really be exported across the world and be used in a lot better situation than they are now,” Schlottach tells the Missourinet.

Schlottach raises cattle and uses beef as an example to make his point. He says he has heard often about how cattle producers benefit from beef exports.

“I appreciate that particular discussion. I appreciate that discussion that goes on, but it’s hardly a marketing plan,” says Schlottach.

The report says the work of the wine and grape industry should be used as a model for other agricultural sectors to use. The small industry, according to the report, has added value to the grape harvest; creating jobs, introducing entrepreneurship and developing a product. Marketing is the key says Schlottach. The report suggests the State Department of Agriculture work with the University of Missouri and commodity groups to develop specific agricultural products that can be marketed. Schlottach says such value-added farm products are the key to success in farming.

“There’s a lot of opportunity out here, but it doesn’t seem like we’ve developed the leadership that we need to in order to add value to these raw commodities,” according to Schlottach.

Schlottach sees that evident in his business, raising beef cattle. The beef industry has been a staple of Missouri farming over the years. Breeding stock, though, is shrinking with estimates of cow losses in Missouri ranging from 100,000 to 300,000 head the past few years. Missouri’s rugged pasture ground lends itself to raising beef. Many Missouri herds are small. Some Missourians raised cattle as a sideline and Schlottach says that if profitability declines enough, they have to cull their herds or get out of the business altogether.

The House Interim Committee on Emerging Issues in Agriculture was actually appointed by former Speaker Rod Jetton. It issued its report on January 27th of 2009. Schlottach admits to being very discouraged the report has been largely ignored.

“I think it really proves the point that we haven’t identified the leadership, not everybody necessarily is on the same page here,” Schlottach tells us. “That’s not only policy makers; these are institutions, not everybody’s on the same page in regard to moving forward.”

We’ll explore one particular finding of the report on part three tomorrow.

AUDIO: Brent Martin reports [4 min MP3]

AUDIO: Brent Martin interviews Rep. Schlottach [30 min MP3]

Download full committee report (PDF)