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February 29,2000
FarmConnectpotentialattractsag producersBy FRITZ BUSCH Journal Staff Writer SLEEPY EYE -- Some of the nuts and bolts of the farm crisis were laid bare Monday at a FarmConnect meeting at the Orchid Inn. FarmConnect is a producer-owned cooperative geared towards an accelerated effort to connect producers with market opportunities. The group said it will open new markets to producers by identifying, creating, and meeting market needs from strategic relationships with processors and end users. Farmers didn't rip open their checkbooks and write out $500 checks to become members after the meeting. However, they sounded interested in the plans designed to pump up their profits. Sleepy Eye dairy farmer Larry Fischer said the group and value-added agriculture could help him cope with rapid changes in farming in the coming decade. "Somebody told me that if you think the past decade of farming went fast, wait until the next one," said Fischer. "If you don't keep up, you're going to try to catch up to something you can't catch up to." Another area dairy farmer who wanted to remain anonymous, said he thought FarmConnect could help him and other small farmers find markets he otherwise wouldn't find. He thought it would also aid end users. "I think this will help small farmers and people in cities that are looking for alternative products," he said. Randy Krzmarzick of Sleepy Eye said he.has some interest, but was a little skeptical. "It isn't easy to find additional profits in agriculture," Krzmarzick said. "Profits are geared toward larger farms, and they may able to gear up for this too, but smaller farmers have to try something." FarmConnect officials said large corporations could join but would not have any more than one vote, like a smaller producer. Pipestone area farmer Ken Winsel, who produces specialty pork for a niche market, is one of the FarmConnect Interim Board Members. He said farmers can't compete with foreign markets under the current system. "You can continue to be price takers and stay in a supply-driven market due to our trade agreements, or you can try something else," Winsel said. "We can't compete with farmers in Argentina that double crop and get 60 inches of rain a year." The Minnesota Economic Trade office gets requests from foreign countries and other markets that can't be handled because no markets currently exist for them, Winsel said, FarmConnect could create markets for these types of requests and get members in the loop to produce for them, he added. Interim Board Chairman Art Brandli of Warroad, who produces wheat, sunflowers, and certified grass seed, said producers need to be connected to buyers and processors and can do so with FarmConnect and its alliances with producers, processors, end users and other support services. Brandli said FarmConnect, currently funded by state tax money, will create a simplified system to benefit producers and end users of many products including bison, bread dough, cereal grain, aspen trees, and organic growers in Minnesota. FarmConnect officials said the plan is being considered by the USDA as a pilot project for the entire nation. They said FarmConnect, which is governed by family farmers, will negotiate prices with buyers with legal help. "Prices aren't always the main issue," said Brandli. "Many buyers said they aren't as concerned with price as long as they get the products they need. Many are willing to pay double for better products." Brandli said one of the problems is that farmers "produce to sell when they should be selling to produce." He said farmers need to be more connected with the market place to produce what it wants and needs. Otherwise, they will be dependent on the world market. "We need to break out of this rut of producing commodities and become more active in differentiating our production," said Brandli. FarmConnect is currently limited to 2,000 members by state law. There is a movement under way to raise the mark. The deadline to join is April 1, 2000. Support groups of FarmConnect include: * Commodity groups and grower organizations. * Agricultural Utilization Research Institute * Minnesota Department of Agriculture * University of Minnesota research and outreach arms * Minnesota Trade Office, Department of Trade and Economic Development * Northern Great Plains Initiative for Rural Development For more information, visit www.farmconnect.com
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