Issue 27
March 2000

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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.

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Prairie Grains Magazine
March 2000

FarmConnect may help bring ag to the next level

by Gene Hugoson, Minnesota Commissioner of Agriculture

During the last few months, as we moved out of the 20th century and into the 21st, I have heard many people ask what the future holds for Minnesota agriculture.  In agricultural meetings I have attended across the state this winter, that question is usually on the program in one form or another. 

Of course I don't have all the answers.  No one does.  However, by looking at trends, we can often anticipate the most appropriate responses.  That also holds true when it comes to how government should respond to the changes taking place in agriculture.

One key change in the production sector that needs to be recognized is the shift from independence to interdependence.  As harsh as it may sound, I believe that in order to survive in the new agricultural environment, producers will need to stop thinking of themselves as "independent family farmers" and start thinking of themselves as "interdependent farm families." 

Despite what some politicians might say, that doesn't mean that producers will need to give up their freedom and become mere employees of the demonized "corporate farms."  Rather, it means that farmers who want to support a family will need to look for opportunities to work cooperatively with other farmers and for ways to meet the needs of customers through direct marketing or niche marketing. 

Throughout the history of American agriculture, farmers have prided themselves on their independence.  My fear is that too many farmers might decide that this tradition of independence rules out new forms of marketing and value-added activity.  By clinging stubbornly to the word "independent" and waiting for government to solve the industry's problems, we may risk accelerating the demise of the family farm.  I strongly believe interdependence will be a key word for the 21st century.

We also need to realize that the days are gone for producing what we want to produce when we want to produce it.  Just as many other industries have adopted "just in time" supply practices, in the 21st century producers must get to know their customers and learn the farm products they want.  Producers should ask themselves when they last took time to determine who their customer is and what they want.  Too often, we grow what we want without determining if a suitable market exists for it.

When I visited Denmark several years ago, I learned that people in that country are required to be licensed in order to farm.  That type of regulation may strike us as odd, but there are some things we can learn from how the Danes farm.  For example, as part of the licensing process, aspiring livestock producers spend a few days living as a guest in the home of a customer.  Traveling to Japan, for instance, the Danish students learn a wonderful first-hand lesson about the cultural tastes of their future customers.  If more American farmers had this opportunity, I guarantee they would have a better perspective on what their end users want. We've heard the message over and over about how U.S. agriculture must become more market-oriented.  As a farmer myself, I sometimes joke that driving a tractor is more fun than researching markets or crunching numbers.  But thinking strategically about our marketing is a habit I think we ought to develop.

Despite the current downturn in the agricultural economy, there are indeed opportunities out there.  I'm absolutely convinced that the ability to provide a specific product, in a specific time, to a specific market at a pre-arranged price will give Minnesota producers an edge.  There is a new program called FarmConnect that may prove to be a very useful tool for farmers interested in doing this.

The Minnesota Department of Agriculture is joining with farm groups around the state to organize FarmConnect this winter. Essentially, FarmCon-nect will be a cooperative that connects producer-members with specific market opportunities.  It will help farmers by simplifying the process of uncovering market opportunities, while at the same time, making it easier for customers to identify farmers who can supply them with the products they need.

As I mentioned earlier, our production sector needs to develop closer ties to the end user.  The FarmConnect concept promises to do that.  One advantage FarmConnect offers to end users is that through this effort, they will be connected to a significant number of producers capable of supplying the quantity and quality of products desired.  At the same time, this will benefit producers by helping them line up new and more lucrative direct marketing opportunities.

Meetings about FarmCon-nect will be held across Minnesota in February and March.  I encourage all producers and those with an interest in the future of agriculture to attend a meeting and learn more about this concept.  More information and the meeting schedule may be found on the web site, www.farmconnect.com