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Agricultural Development Division

Goals and Objectives

NOTE: Goals and Objectives are updated annually at either the end of the calendar year or the state fiscal year (June 30), depending on the program.

Goals:
The goal of the Agricultural Development Division is to enhance, expand and diversify Montana's agricultural economy, thereby improving the general economy of the state of Montana. This goal is achieved by providing development services designated by the Montana Legislature, which include market and agri-business development, Growth Through Agriculture investments, wheat and barley research and marketing, junior agriculture and agriculture finance loans, beginning farmer/rancher loans, hail insurance, grain grading and inspection, and administration of agricultural commodity research and market development programs.

Bureau Menu:
Agricultural Marketing and Business Development Bureau
Rural Development Bureau
State Grain Laboratory Bureau
Wheat and Barley Bureau

Agricultural Marketing and Business Development Bureau

Goals:

Assist in increasing sales of Montana's agricultural products and the success and profitability of agricultural businesses and operations.

Strengthen and diversify Montana's agricultural industry through activities promoting private/public sector partnerships

Assist in the development and commercialization of new agricultural products and processes.

Objectives and Performance Benchmarks:

1. Agricultural Business Assistance

The department has encouraged expansion of the ethanol and bio-diesel industry with Growth Through Agriculture funding assistance for the development of seven ethanol projects and one bio-diesel project. The department also has provided assistance to businesses and organizations interested in developing and expanding Montana’s meat processing industry in Conrad, Shelby, Dillon, and Malta. Economic development assistance has also been offered to five of Montana’s tribal businesses.

Through partnership efforts between the Montana Department of Agriculture, Montana Department of Commerce, Montana Department of Labor and Industry, as well as Certified Regional Development Centers across the state, the Montana Department of Agriculture has created the Bio-Product Innovation Center Program by utilizing federal Workforce Innovation in Regional Economic Development (WIRED) funds.

Benchmark: To date, 350 projects have received direct financial assistance of more than $10.6 million from the Montana Growth Through Agriculture Program, with 210 of those projects receiving funds since the May 2000 Special Session.

2007-2009 Objectives:

Meet annually with at least 50 Montana companies, organizations and individuals to discuss marketing and business development activities and resources, translating into assistance with obtaining at least $100,000 in funding for agricultural product marketing and business development.

2. Domestic & International Value-Added Marketing

The Department of Agriculture coordinates events designed to assist Montana suppliers and domestic or international buyers to interact.

Benchmarks: To date, at least $2.74 million dollars in cummulative sales have been reported as a result of these efforts. The Department has also provided assistance to over 75 businesses participating in more than 29 different domestic and international trade shows, with reports of over $1 million in cummulative sales generated as a result of the Trade Show Assistance Program.

The Montana Department of Agriculture and Department of Commerce provide for one-on-one consultations for Montana companies to determine potential export markets with an expert in international food marketing, including a series of computer aided export workshops.

Benchmarks: To date, and a total of 65 companies have received export readiness training with help from the program.

More than $946,000 in Growth Through Agriculture funding has been awarded to more than 40 Montana agricultural businesses, projects and producers for development of marketing plans that reflect consumer and marketing trends.

The Montana Department of Agriculture has coordinated trade missions and trade show promotions in Argentina, the Pacific Rim and Canada. Delegates met with key individuals in these markets to discuss methods of enhancing trade, or to initiate and/or negotiate product sales.

2007-2009 Objectives:

Annually conduct at least four domestic or international trade missions, trade show events, or similar promotional events that result in at least $10,000 in sales per participating Montana company. Generate a 50-to-1 return to the State of Montana from these activities.

3. Meats & Livestock Marketing

Benchmarks:The Montana Department of Agriculture has hosted five reverse trade missions from Argentina, led three trade missions to Argentina and one to Costa Rica to increase sales of Montana purebred cattle, semen and embryos. The most recent trade mission was in August 2006. The Department of Agriculture hosted a delegation of Argentine beef genetics buyers, which traveled throughout Montana for five days. The reverse mission resulted in multiple sales of frozen embryos and bull semen. With the help of the department's promotional efforts, Montana's seed stock industry has established itself as the leading source of high quality beef genetics in Central and South America.

Since 2000, Growth Through Agriculture funds have been provided to 13 pork projects, 43 beef or beef cattle related projects, 21 sheep, lamb or wool projects, and four dairy projects.

2007-2009 Objectives:

Annually identify and assist at least 20 individuals or operations with meats and genetics promotions, conducting at least three local, one national and three international promotions. Generate at least $70,000 in sales per Montana participant in sales-driven activities. Make 15 international contacts while promoting Montana meats and genetics. Obtain a total return of a least $50 for every department dollar spent on activities.

4. Industry & Commodity Development

In cooperation with Montana’s sugar beet industry, the Montana Department of Agriculture leveraged Growth Through Agriculture funding with Federal-State Marketing Improvement Program dollars to study the feasibility of increasing industry revenues through alternative uses for sugar refining by-products. The study is expected to be completed in March 2007.

Benchmarks: Working with the Montana Department of Environmental Quality, the Montana Department of Agriculture coordinated three workshops across the state aimed at educating farmers, entrepreneurs and others about the production of oilseeds and biodiesel. In all, 180 individuals attended the workshops, with 21 potential biodiesel manufacturing operations in attendance. The success of these workshops has led to the planning of additional workshops for the 2007 fiscal year.

2007-2009 Objectives:

Continue to leverage federal funding to assist Montana’s sugar beet, organic and specialty crop industries. The Department of Agriculture will also a complete processor recruitment programs aimed at benefiting Montana’s dairy and specialty crop industries.

Benchmark Indicators:
Indicators will be updated every 6 months, after December 31 and June 30 each year.


Rural Development Bureau

Ongoing Program Goals:

Provide basic hail insurance coverage through the State Hail Insurance Program on crops grown in Montana so producers have affordable hail loss protection available to them.

Provide a high level of service to Montana producers who utilize the state hail insurance program.

Assist in the economic development and welfare of Montana agriculture.

Loan Programs:

Objectives:
Invest a major portion of finance program funds in the promotion and assistance of Montana's agricultural producers and economy. The program will increase its loan portfolio numbers by 10 percent annually while increasing its portfolio value at a modest annual growth of 2 percent to achieve this goal.

Benchmark: Currently the annual growth of the portfolio value is at 1.85 percent due to lower interest rates.

Provide 10 new Junior Agriculture Loans annually in FY 2007-2009 for youth interested in developing agricultural production projects.

Benchmark: Currently there are 79 Junior Agriculture Loans in place.  We have experienced many early payoffs due to eight years of drought in many areas of the state.

Provide 10 new Rural Assistance Loans in FY 2007-2009 to assist Montana producers to expand their agricultural enterprises.

Benchmark: At this time there are 60 Rural Assistance Loans in place. The total loan amount per individual has increased. As a result, loan totals may increase although loan numbers may remain static.


Hail Insurance

Objectives:
Issue 2,200 policies in 2007 and 2,400 policies in 2008 to help producers financially protect themselves against crop damage losses.

Benchmark: We received 2,107 hail policies during the 2006 season.

Increase the number of acres insured through the hail program to 1,800,000 acres in 2007, 1,900,000 acres in 2008, and 2,000,000 acres in 2009.

Benchmark: 2006 policies covered 686,458 acres, a decrease from 2005 due to lack of moisture and a resulting decrease in harvested acres.

Benchmark Indicators:
Indicators will be updated every 6 months, after December 31 and June 30 each year.


State Grain Laboratory Bureau

Goals:

Provide timely, official, objective and accurate test results to buyers and sellers of Montana grain under standards set by the USDA Federal Grain Inspection Service and the state Agricultural Warehouse, Commodity Dealer, and Grain Standards Act (MCA 80-4-704).

To operate laboratory equipment to Federal Grain Inspection Service standards, which entitle buyers and sellers of grain to an official grade, protein analysis and other quality tests on any grain delivered to a warehouse.

Benchmark: The State Grain Laboratory Bureau maintains an ongoing responsibility to these goals.

2007-2009 Objectives:

Increase the annual number of tests performed through promotion of the lab's quality of work and more competitive rates.

Complete 22,000 official and submitted grades during FY 2007 and FY 2008, and 23,000 official and submitted grades during FY 2009.

Benchmark: The State Grain Laboratory completed 19,761 official and submitted grades during state Fiscal Year 2006.

Complete 330 commodity grades in FY 2007; 550 commodity grades in FY 2008; and 600 commodity grades in FY 2009.

Benchmark: The State Grain Laboratory completed 528 commodity grades during FY 2006.

Complete 23,650 related tests in FY 2007; 24,000 related tests in FY 2008; and 24,500 related tests in FY 2009.

Benchmark: The State Grain Laboratory completed 23,516 related tests during FY 2006.

Updates of Benchmark Indicators:
Indicators will be updated annually, after the June 30 end of each fiscal year.


Wheat & Barley Bureau

Goals:

To improve wheat and barley quality, increase the efficiency of production, develop marketing knowledge and markets, determine new uses for wheat and barley, develop alternative crops for wheat and barley, and to carry out all research and marketing contemplated by Title 80, Chapter 11, Part 2, MCA.

Benchmark: The Wheat & Barley Bureau maintains an ongoing responsibility to the goals.

Objectives:

Provide information to the producers who financially support the Montana Wheat & Barley Committee regarding: their director representatives, staff responsibilities, history of MW&BC activities, current budget and quarterly meetings.

Benchmarks: Committee displayed or distributed materials at the Montana Agricultural and Industrial Expo trade show (MAGIE), Montana Farmers Union, Montana Farm Bureau, and Montana Grain Growers Association conventions, Agriculture in Montana Schools, the Montana State Fair, county fairs, Extension Service agencies, Women Involved in Farm Economics, and various marketing clubs, churches groups, health fairs, and schools.

Approximately 900 brochures detailing committee use of check-off funds were provided at the above functions and sent out to producers requesting a refund of their assessment. The MW&BC also prepared in-house information brochures or flyers on a variety of topics.

Twelve issues of the committee’s monthly news page were prepared for the Trader’s Dispatch. The MW&BC publishes current rail freight rates for wheat and barley, as well as issues related to trade, research and marketing.

Four quarterly board meetings and one special meeting were held, and were open to the public. Public service announcements were run on two radio stations and 12 press releases on various topics were published, detailing activities of the committee.

Basic information on the committee's website was maintained and a redesigned website with more than 400 pages was launched June 16, 2006. The site's improved navigational structure made it difficult to compare viewer usage. This information will be available again at the end of 2006, once a new baseline is established.

Provide information that producers can utilize. To provide allied industry businesses, organizations, customers and government agencies with Montana wheat and barley industry related statistics.

Benchmarks: Contributing funding to the Montana Agricultural Statistical Office enables the issuance of reports on wheat and barley varieties grown, grain movements by truck and rail, wheat utilization and barley sold for malt.

The committee published Rail 101, and funded publication and distribution of the Story of Wheat, as well as more than 23,000 copies of the U.S. Wheat Associates annual report.

Background information was prepared for farm organization testimony on transportation issues. A synopsis of committee budget and activities was given to Montana Grain Growers Association and the Montana Grain Elevators Association, at their request. Advance briefings were prepared for legislators and private individuals who traveled to several Latin American countries. Background papers were developed for the Governor’s Office, detailing Montana’s historical production and business relationship with target countries.

More than 15 radio, newspaper and television interviews were conducted.

The committee provided speakers for trade team briefings, Missouri River Breaks, and the Montana Farmers Union Farm-to-Table Tour. In addition, committee representatives attended numerous transportation and ag-oriented meetings, nationally, regionally, and internationally.

Numerous calls, office visits, or e-mail requests were processed, dealing with a wide array of topics including trade barriers, sources for wheat purchases, pesticide residues in grain, nutrition information, freight rates, and historical pricing information, and phytosanitary issues.

The committee funded a 24-hour, toll-free Code-a-Phone market news report, updated twice daily, which approximately 10,000 callers used during the year. While usage has declined in recent years, we find producers who do not have computers often rely on the recorded reports. Radio stations across the state also air the reports.

Committee-prepared industry Books were provided to more than 43 members of eleven foreign trade teams who visited the office during 2006. The bulk of foreign visitors come to Montana during the July – October harvest season. The Industry Books, updated monthly during the growing season, are available in a metric version for foreign customers and in standard units for anyone else wanting a copy, and the entire book is on the committee’s website.

Friday Letters, internal newsletters prepared most Fridays during the year, assist directors in keeping their constituencies informed of current issues.

The commitee allocated nearly $190,000 last fiscal year for education and information activities including the sponsorship of scholarships, two milling and baking contests, an E-85 Ethanol demonstration car and three "young people in agriculture" leadership conferences.

Establish direct contact with buyers through "trade team activities." (See also the Industry Books paragraph above.)

Benchmarks: Directors and staff conducted five foreign trade missions and answered inquiries from buyers or potential buyers regarding wheat quality, current crop conditions or marketplace trade issues. Trips were to the Latin American Buyers' Conference, Asia and targeted Latin American counties.

Ten different groups of foreign visitors representing Asia were hosted by the committee. Guests were presented statistical information, given oral briefings, and taken on tours to state elevators, farms, merchandising offices, and the State Grain Laboratory.

The committee also collected more than 1,600 pounds of wheat for overseas varietal analysis for the foreign customers to run mill samples to evaluate Montana's wheat for their needs. Committee representatives participated in six quality and production surveys.

Conduct wheat and barley research that will mitigate the costs of production and enhance marketplace competitiveness.

Benchmarks: Twenty-one different research projects were approved for funding for the current fiscal year at a cost of $808,000. Research project summaries from 1969 to present are available on the committee's website. Research funds are directed to improve quality, resistance to pests and diseases, and yields.

To support multi-state efforts for market development at national and international levels - specifically to address green-pea contamination in feed barley, pesticide residue levels and transportation issues.

Benchmarks: The committee continues to support the both foreign and domestic market development organizations, with 26 board seats or assignments filled by seven producer-directors and staff members. These membership or general support groups all met at least twice during the year. Major topics of concern are maintaining or gaining market share, the acceptance of genetically-engineered crops, and the establishment of competitive freight rates and good service for Montana producers.

Address rail transportation issues through direct negotiations with Montana's domestic carrier and national coalition support.

Benchmarks: $163,300 was approved for funding for the current fiscal year to address transportation issues.

The committee continues to supply a chairman representative to the national Alliance for Rail Competition. In addition to publishing the wheat and barley freight rates, the committee examines alternative shipping routes and supports efforts to encourage freight competition, and provides grain movement information to interested entities. The MW&BC filed four informational briefs with the federal Surface Transportation Board addressing: fuel surcharges, freight rates, market access and competition.

Benchmark Indicators:
Indicators will be updated annually near the end of the calendar year.