MAY 1996
Role of
Commodity Groups
Changing
by David Boehm
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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.
That question and the future role of commodity groups was discussed at a meeting of the Northern Prairie Chapter of the National Ag Marketing Association (NAMA), recently in Fargo.
Certainly, the need for agriculture to have a legislative presence will still exist. A costly regulatory proposal, for example, is always just one lawmaker away from being introduced in a bill at state and federal levels.
But at the same rate, it won't be business as usual. With agricultural policy at a crossroads, commodity groups need to prepare themselves and their members for changes and opportunities which lie in the future. This may mean a shift in focus and priorities.
"The trend is of less government involvement and more involvement in the marketplace," said Dave Torgerson, executive director of the Minnesota Association of Wheat Growers. Although there will still be a need to monitor state and federal legislative matters, Torgerson feels that the MAWG will also need to be more of a service organization, educating members and providing leadership in new ways.
Such as helping members understand and adopt new technologies, like the internet, and establishing value-added opportunities. Indeed, it was trade and value-added issues, rather than ag policy, taking center stage at the MAWG's last state convention.
The MAWG played a key role in developing the Red River Farm Network over the radio, as well as the recently announced United Spring Wheat Processors. Perhaps the commodity group of the future will look at itself more as a company, and members as shareholders, Torgerson said.
Mark Weber, executive director of the Red River Valley Sugarbeet Growers Association, (RRVSGA) agrees with the need to add value to farm commodities, and that commodity groups can help in that regard.
He pointed out too that a commodity-specific focus does have its legislative advantages. The RRVSGA successfully focused on the sugar program in the farm bill debate. And some issues affect certain commodities more than others; workers compensation insurance and migrant labor, for instance, are issues more unique to sugar.
Larry Kleingartner, executive director for the National Sunflower Association, said that marketing and international trade is already the NSA's biggest issue and will continue to be in the future. "The aim of our organization is profitability. If the farmer is profitable, the industry is profitable," he said.
The leaders agreed that there are constants to commodity groups, no matter what the issue: commodity groups will always have the ability to provide producers and industry members commodity-specific information and action that won't be available or generated elsewhere. And, building coalitions with one another and other organizations heightens the effectiveness in addressing the topic or issue at hand.