Website Main Menu

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:

1. Agricultural Business Assistance
The department has encouraged expansion of alternative energy projects such as biodiesel, wind, algae/cellulosic, and ethanol. The department also has provided assistance to businesses and organizations interested in developing and expanding Montana’s food processing industry in Shelby, Ronan, Glendive, Deer Lodge, and Malta.

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, 382 companies have received direct financial assistance of more than $8.5 million from the Montana Growth Through Agriculture Program, with 270 of those companies 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 $3.1 million dollars in cumulative sales have been reported as a result of these efforts. The Department has also provided assistance to over 75 businesses participating in more than 35 different domestic and international trade shows, with reports of over $1.54 million in cumulative sales generated as a result of the Trade Show Assistance Program.

The Montana Department of Agriculture and Department of Commerce provide work cooperatively to provide one-on-one marketing consultations. The consultations help businesses determine potential markets, both domestically and internationally.

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

More than $1.1 million in Growth Through Agriculture funding has been awarded to more than 50 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 China, Taiwan, and Japan. Delegates met with key individuals in these markets to discuss methods of enhancing trade, or to initiate and/or negotiate product sales.  The Montana Department of Agriculture has trade office located in Taiwan and Japan0 which assist in the efforts to promote Montana agriculture products.

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 six reverse trade missions, two from Argentina and four from Russia.  The Department has led two trade missions to Russia, one to Costa Rica and one to Argentina to increase sales of Montana Purebred cattle, semen and embryos.  The most recent trade mission was in January 2009.  The Department hosted a delegation of Russian 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 South America and Russia.

Since 2000, Growth Through Agriculture funds have been provided to 29 pork projects, 56 beef or beef cattle related projects, 27 sheep, lamb or wool projects and 17 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 the Montana Organic Association the department embarked on an educational campaign to increase producer awareness in regards to organic production.  Educational workshops on converting from conventional production to organic have occurred across the state with more scheduled in February 2009.  Support to summer farm tours will also continue.

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 organic and specialty crop industries.

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


Rural Development Bureau

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. Increase loan portfolio numbers by 10 percent annually while increasing the 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 for youth interested in developing agricultural production projects.

Benchmark: Currently, there are 72 Junior Agriculture Loans in place.  We have experienced early payoffs due to drought and lower cattle prices.

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

Benchmark: At this time there are 66 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.


State Hail Insurance

Objectives:
Issue 2,350 hail policies in 2009 and 2,450 policies in 2010 to help producers financially protect themselves against crop damage losses.

Benchmark: We issued 2,269 hail policies during the 2008 season.

Increase the number of acres insured through the hail program to 2,100,000 acres in 2009, and 2,150,000 acres in 2010.

Benchmark: 2008 policies covered 1,891,567 acres. Policy numbers and acres insured vary with fluctuating moisture and grain prices.


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).

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.

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

Complete 20,000 official and submitted grades during FY 2009, and 21,000 official and submitted grades during FY 2010.

Benchmark: The State Grain Laboratory completed 18,014 official and submitted grades during state Fiscal Year 2008.

Complete 1,000 peas, beans and lentils grades in FY 2009.

Benchmark: The laboratory completed 914 peas, beans and lentils grades during FY 2008.

Complete 18,500 protein tests in FY 2009.

Benchmark: The laboratory completed 17,167 protein tests during FY 2008.


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.

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 Farm Bureau, Montana Farmers Union, Montana Agriculture Business Association/Montana Grain Elevators Association, 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, schools and children's museums around the state.

Approximately 1,200 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.

Six issues of the committee’s 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 two special meetings were held, and were open to the public. Public service announcements were run on KMON radio station and six press releases on various topics were published, detailing activities of the committee.

Basic information on the committee's website was maintained. The 400-page website was revamped with new links and more user-friendly formatting in late 2008. The site has had 273,561 hits over an 820-day period. Visitors from 29 different countries viewed information on the site.

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.

Through funding provided to a freight transportation consultant, the committee published Rail 101, a primer on rail issues, and funded publication and distribution of the Story of Wheat, as well as more than 23,350 copies of the U.S. Wheat Associates annual report.

Background information was prepared for farm organizations needing statistics 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 Japan and China. 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, the Montana Farmers Union Farm-to-Table Tour, continuing education classes and the leadership program for state FFA officers. 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. Some radio stations across the state also air the reports and at least one newspaper publishes the price quotes obtained from the committee once a week.

Committee-prepared industry Books were provided to more than 38 members of ten foreign trade teams who visited the office during 2008. 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 approximately $146,363 for education and information activities including the sponsorship of scholarships, two milling and baking contests, and support in sponsoring an ethanol conference 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 $767,000. 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 increased yields.

To support multi-state efforts for market development at national and international levels - specifically to address pesticide residue levels and transportation issues.

Benchmarks: The committee continues to support both foreign and domestic market development organizations, with 24 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 rail service for Montana producers.

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

Benchmarks: $125,000 was approved for funding 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 six 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.