Dairy interests call Blunt's ag proposals 'a start'

Gov. Matt Blunt unveiled two proposals this week to combat two major problems facing Missouri agriculture -- the exodus of dairy from the state and the increasing average age of farm operators.

The dairy proposal will establish Dairy Parlor Renovation Grants to help dairy farms renovate milking parlors, the structures where cows are milked.

Another proposal, the Farm Legacy Exchange Program, would help young farmers get started by pairing them with farmers nearing retirement to mentor younger farmers and pass farm assets along to a new generation.

Both programs must still be approved by the Missouri Legislature.

Over the past few decades Missouri has seen a sharp decrease in its dairy farming industry. In 1975, the state had 302,000 dairy cows. As of November, the count was down to 109,000.

In the local area's two largest dairy counties, Cape Girardeau and Perry, the same trend is evident. Perry County had 2,700 milk cows in 1988 and Cape Girardeau County had 3,800.

Last year, the numbers were 1,270 and 2,800, respectively.

The Dairy Parlor Renovation Grants would provide grants worth up to $10,000 (producers would share 50 percent of the cost) for producers with antiquated parlors to increase their milking capacity and efficiency.

Dairy interests say the proposal is far from a total solution.

"But it's a start," said Dave Drennan, executive director of the Missouri Dairy Association. The power of the message is that "the governor is behind growing our dairy industry and returning it back to where it once was."

Drennan called the proposal a "very innovative" idea.

"We've been after the General Assembly for three years to make a commitment to the dairy industry in this state," Drennan said. "We hope they'll make a commitment for the long haul, because that's what it's going to take."

Drennan's association is pushing for more help for the state's dairy industry, hoping lawmakers will pass legislation that will provide business planning grants and forgiveness of first-year interest on the purchase of dairy cows or replacement heifers.

Oak Ridge-area dairy farmer John Schoen echoed Drennan is saying the proposal was more of a symbolic victory that will help keep some small dairy farms in operation rather than attracting new dairy or expanding the industry.

"It's the thought that counts," Schoen said. The grants might help small dairies from closing their doors by helping them possibly double their milking capacity.

Schoen estimated such upgrades can cost as much as $20,000. He estimated about 15 to 25 percent of the dairy operations in Cape Girardeau and Perry counties could fall into the category of small dairies with a need to upgrade their milking systems, those targeted by the grants.

The Farm Legacy Exchange Program is also about retaining farm operations already in Missouri. The program hopes to address the problem of a continually aging farm population by helping young farmers start their businesses.

According to the last published USDA Census of Agriculture, the average age of principal farm operators was 56 years old. The average Cape Girardeau County farm operator was 57.2 years old.

In 1974, the average state age of farm operators was 52.1 years old.

The concept behind the Farm Legacy Exchange Program isn't new, said Leslie Holloway, director of state and local government affairs with the Missouri Farm Bureau. Various efforts over the past several years have tried to establish a permanent program to transition farm knowledge and assets, she said, but they never worked out.

Under Blunt's proposal, the Missouri Farm Bureau will work with the Missouri Department of Agriculture, the University of Missouri Extension, the state Department of Elementary and Secondary Education and other entities to match up young farmers with those nearing retirement.

Holloway said she's heard the program will cost about $50,000.

"The appropriation isn't exorbitant, and it seems to be a pretty prudent approach," Holloway said.

On the local level, University of Missouri Extension agronomist Gerald Bryan has already started some of the same work the Farm Legacy Exchange Program hopes to accomplish. On Wednesday, Bryan had a farmer who's ready to retire talk to him about matching up with a younger farmer.

Bryant said he thinks the aging of the farm population is starting to reverse locally, with more young people "coming back to the farm" than a few years ago.

Richard Proffer, a business development specialist with the southeast region of the University of Missouri Extension, said the program's concept is just good business development practice, in farming and other areas.

"Any time you can mentor a new person in the job, their chances of being successful are highly increased," Proffer said.

For a farmer to start farming fresh, having to purchase or rent ground and equipment, Proffer said getting off the ground is "almost impossible."

msanders@semissourian.com

335-6611, extension 182