11/17/99

Contacts:
Craig Hill, Iowa AgState chair, (515) 961-5286
Keith Heffernan, CARD assistant director, (515) 294-0670
Susan Thompson, ISU Agriculture Information, (515) 294-0705

VISION FOR IOWA AGRICULTURE GETS AN UPDATE

A think tank made up of representatives from many sectors of Iowa agriculture released its third report Nov. 16.

The Iowa AgState Group was formed in the spring of 1997. The idea was to pull together key leaders from all segments of Iowa agriculture to develop a proactive, futuristic vision for Iowa agriculture, and an action plan to help make that vision a reality.

AgState is an acronym for "Agricultural Strategic Thinkers Acting Together Effectively." The group's 1997 report was titled "Vision for Iowa Agriculture." Goals and objectives were outlined. The group's 1998 report bore the same title. Successes were added to the list of goals and objectives.

This year, Iowa AgState again spent many hours looking to the future. "One concept that surfaced repeatedly since the group's inception became clearer," says Craig Hill, a farmer from Milo who chairs the Iowa AgState Group. "We shouldn't be creating just a vision for Iowa agriculture, but rather a vision for Iowa."

Hill says Iowa AgState recognizes that what benefits agriculture will benefit Iowa. "And that what benefits Iowa as a whole will benefit the state's largest industry -- agriculture," he says.

In developing its 1999 report, the group considered three possible scenarios of what the state will look like in 2010. Action statements to help make the vision they chose a reality were adopted.

Some key points in the 2010 vision are:

• Iowa is not only the food capital of the world, but also the agribusiness capital of the world. It is the headquarters for many agricultural companies and businesses related to agriculture.
• Iowans welcome agribusiness growth and new processing industries, because they see economic benefits to themselves and their neighbors.
• A high percentage of the raw commodities grown on Iowa farms is processed into value-added products before leaving the state. Numerous processing companies and cooperatives have come on-line in the last 10 years to make that possible.
• The vast majority of the commodities grown in Iowa are grown as part of a food demand chain. Iowa producers are listening to their customers, growing commodities that are desired by consumers, in a manner that is desired by consumers.
• Iowa farmers are filling niche markets with Iowa-grown foods, and with commodities produced and processed in specific ways.
• Livestock production has increased, with production facilities dispersed throughout the state. Protection of Iowa's environment is at the forefront in all aspects of the state's livestock production industry.
• Iowa's population stands at 3 million, an increase of 300,000 from 10 years earlier.
• This population increase has been driven by three main factors. One, jobs have been created by new companies processing Iowa-grown commodities. Two, the exodus of Iowa's young people has slowed. Three, more people are moving to Iowa because of the quality of life it offers, including recreational opportunities, art and cultural events, and a safe environment.
• The long-term trend of population loss in Iowa's rural communities has been stopped. In some counties, the trend has been reversed. Even in the most rural parts of the state, positive changes are being seen. New employment opportunities have occurred with the formation of new businesses that are processing Iowa-grown commodities. Iowa entrepreneurs are starting new companies and guiding the formation of new cooperative ventures. These things have led to a more stable population, an increase in tax revenue, and a decrease in the rate of school consolidations.

The AgState report was unveiled to the boards of directors of participating organizations at a meeting in Ames Nov. 16-17. The 1999 Iowa AgState document also includes a report given to Iowa Governor Tom Vilsack on steps needed to make Iowa the world's food capital. And it includes a report from the group's farm bill task force.

Each group involved in Iowa AgState appointed two people to serve on the farm bill task force. The group reviewed the current farm program, analyzed its implementation and effectiveness, and made recommendations for the next farm bill.

Task force members agreed that any new farm policy should include:

• Open trade markets, increased market access and the introduction of action on sanction reform
• Savings from discontinuing AMTA (Agricultural Market Transition Assistance) payments would go toward a whole farm revenue program, subsidized at a certain level and kept equitable based on productivity
• Timely incentive-driven conservation practices on a voluntary whole farm basis and encourage CRP on the most fragile land
• Policies to encourage entry-level producers including the removal of capital gains tax and tax incentives for landowners to establish younger producers
• Repeal of the Jones Act
• Improve, strengthen and overhaul crop insurance and include livestock
• New risk management tools and the educational opportunities for producers to utilize them. Funneling of the money to those who bear the risk should be a priority.
• The building of an infrastructure program that will encourage identity preservation and assist producers and the retail industry in the transition from today's bulk commodity agriculture
• Continued funding for public/private research
• Encourage the U.S. government to negotiate for agriculture and not use agriculture as a tool

The task force agreed there are things future farm policy SHOULD NOT include:

• Set aside programs
• A farmer-owned reserve
• An increase in the loan rate on commodities

The Iowa AgState Group includes representatives from the Agribusiness Association of Iowa, Iowa Cattlemen's Association, Iowa Corn Growers Association, Iowa Dairy Products Association, Iowa Department of Agriculture and Land Stewardship, Iowa Department of Economic Development, Iowa Farm Bureau Federation, Iowa Institute for Cooperatives, Iowa Pork Producers Association, Iowa Poultry Association, Iowa Soybean Association, and the Iowa Turkey Federation.

The ISU Center for Agricultural and Rural Development and the ISU economics department provide administrative support for the effort.

(Editor's note: The third Iowa AgState Group report is available by contacting Susan Thompson.)

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