NEWSLINE

Michigan producers receive USDA grants

        The Michigan Potato Industry Commission and the Michigan Allied Poultry Industries have each received funding from USDA Rural Development through its Rural Business Enterprise Grant Program (RBEG). The potato commission will use its $90,000 to assist in construction of a long-term storage bin for Michigan-grown potatoes. Allied Poultry Industries received $95,000 so the newly formed turkey growers cooperative can conduct a feasibility study on creating a West Michigan turkey slaughtering plant.
        "The development of a more advanced storage facility will be a great benefit to Michigan's potato producers," says Donald L. Hare, state director for USDA Rural Development operations. "USDA Rural Development's mission is to help agricultural producers find ways to enhance the profitability of their products. Agricultural producers can no longer rely on simply producing a raw product to succeed. They must look toward the process of adding value to their product and increasing their bottom line profits."
        USDA's RBEG program is designed to help public bodies, non-profit corporations, and federally recognized Indian tribal groups finance and facilitate development of small and emerging private business enterprises located in rural areas.

Small Farm Conference Oct. 12-15

        "Building Partnerships for the 21st Century" is the theme of the second National Small Farm Conference, sponsored by USDA, the Environmental Protection Agency and four other organizations. It will be held Oct. 12-15 at the Regal Riverfront Hotel, St. Louis, Mo. Registration is $125, due by Sept. 17, 1999. Hotel reservations should be made directly by registrants, and the deadline for special group rates is Sept. 10.
        The conference provides an opportunity for public and private sectors, including community-based organizations, the land-grant university system, and small- and medium-sized family farmers, to strengthen collaboration and partnerships to work more effectively with the small farm community. In addition to workshops, participants will tour farms and ranches which emphasize direct marketing, alternative and sustainable agriculture.
        Twelve USDA agencies, including USDA Rural Development, are co-sponsors of this project. In addition to the EPA, other sponsors include Lincoln University, University of Missouri, W.K. Kellogg Foundation and Farm Foundation. For more information, visit the conference Website at www.luce.lincolnu.edu/nsfc or contact Denis Ebodaghe, USDA-CSREES, in Washington, D.C., at (202) 401-4385; fax (202) 401-5179; or e-mail debodaghe@reeusda.gov.

St. Paul Bank and CoBank merge

        The stockholders of the St. Paul Bank for Cooperatives and CoBank overwhelmingly approved a plan to merge the two banks, effective July 1, 1999. The results of the May 24 stockholder vote were jointly announced by the chairmen of the two banks. The merged bank will have assets of approximately $22 billion with about $1.7 billion in capital and $17.8 billion in loans outstanding.

Michigan FCS may consolidate

        The four Farm Credit Services associations in Michigan's Lower Peninsula continue their plans for statewide consolidation with the announcement of a joint management agreement. Under joint management, the four associations will operate as one, but will remain as separate legal entities until stockholder-members approve the consolidation. That vote is expected later this year. If approved by stockholders, the new FCS organization would have assets of $1.5 billion and a surplus that exceeds $200 million. The association is expected to save $2 million in annual operating expenses, which will translate into reduced stock requirements and more favorable interest rates for customers. The target date for the consolidation is Jan. 1, 2000.

Cleberg on U.S. Treasury's IMF Committee

        Farmland President and Chief Executive Officer H.D. "Harry" Cleberg has been selected to serve on the U.S. Department of Treasury's Advisory Committee on International Monetary Fund (IMF) policy. The IMF has been at the center of the effort to resolve the international financial crisis that began in 1997. The committee is to meet with and advise the secretary and deputy secretary of the Treasury on the extent to which IMF programs meet policy goals set forth in the policy advocacy provisions of the IMF funding legislation. This legislation includes strengthening financial systems in developing countries, encouraging the opening of markets for agricultural commodities and products, and promoting greater transparency and accountability. One of eight committee members, Cleberg will represent the agricultural industry.

Diamond Walnut forms German subsidiary

        Diamond Walnut Growers Inc., Stockton, Calif., has formed a new joint venture subsidiary company in Cologne, Germany, under the name of Diamond of Europe, GmbH. The new entity will be primarily responsible for Diamond's consumer retail business in Germany and Austria, formerly managed by another German retail broker. Diamond of Europe will assist Diamond in providing distribution, currency conversion and local market packaging services for shelled and inshell customers in Germany and the European continent. The cooperative's leadership reports the new structure provides Diamond with a low-risk yet potentially high-return entry into the European retail distribution business.

California growers fight Greek peaches

        At a late June meeting of the California Canning Peach Association, growers voted to fight against the intrusion of subsidized Greek peaches into a key market Golden State growers invested heavily to establish. The association's board will investigate all options, including export incentive programs for shipping fruit to Mexico, to safeguard that vital market, says CCPA President Ron Schuler. Presently, California supplies nearly 10,000 tons of peaches to Mexico with an estimated value of $10 million.
        The U.S. government has taken both formal and informal actions against the European Community for its subsidies to the Greek peach industry and currently includes Greek canned peaches on the Beef Hormone retaliation list, which is being formally announced by the United States and Canada. While this may protect domestic and Canadian markets, Schuler says it does not impact the vitally important Mexican market.

Chiquita to buy Agripac Division

        Agripac Inc., a bankrupt Oregon-based vegetable processing cooperative, sold its frozen food division earlier this year for $90 million to New York-based Pro-Fac Cooperative Inc. and thought they were selling their canned food division to Norpac Foods Inc., a Stayton, Ore.-based cooperative. Among other items, the sale to Norpac was contingent on reaching agreement with the union representing the cannery workers. Agreement could not be reached, thus Norpac was unable to complete the purchase.
        It now appears that Chiquita Brands International Inc., will purchase the division. If the bankruptcy court accepts the Chiquita offer, about 100 farmers who grow beets, carrots, beans and corn will get a contract for their produce, but without any ownership in the further processing of their products.

Dakota Dairy Specialties files for bankruptcy

        Dakota Dairy Specialties Cooperative shut down its cheese plant in Hebron, N.D., and filed for bankruptcy this spring, two years after beginning operation. Most of the 40 farmer-members now ship milk through Dairy Farmers of America. The plant made its first batch of cheese in February 1997. It had been operating sporadically since October 1998 as it tried to finance $1 million of equipment to improve operating efficiencies. The bankruptcy may affect Rural Business-Cooperative Service's guaranteed loan exposure to the cooperative. Dakota Dairy Specialties is the only so-called "new generation" cooperative in the dairy sector.

FCA purchases LCCA's Oskaloosa assets

        Farmers Cooperative Association, Lawrence, Kan., has purchased the assets of the Oskaloosa branch of the Leavenworth County Cooperative Association. The acquisition gives Farmers Co-op a total of 19 elevators and increases its grain storage capacity to nearly 12 million bushels. The cooperative provides complete grain handling, marketing, crop production services, feed manufacturing and delivery, and supplies to about 9,500 members and 12,000 customers in one Missouri and 20 Kansas communities.

Golden Oval Eggs to expand

        Golden Oval Eggs, a farmer-owned cooperative based in Renville, Minn., announced it has raised more than $5 million necessary to expand into Iowa with a house for 1.8 million laying hens. The Iowa site could eventually house up to 5.4 million hens if additional equity is raised. Golden Oval now has about two million hens producing about 500 million eggs annually. The cooperative, formed in 1994, is now owned by more than 600 farmers. It ranks within the top 30 enterprises in U.S. egg production and within the top 10 in egg processing. The minimum initial investment for new members was $10,000.

American Growers offers chemical-free food

        American Growers Foods, Sioux Falls, S.D., is offering 13 grain-based, chemical-free foods to consumers. Farmer-members of the cooperative receive a base price of $5 for a bushel of corn, far above the typical market price of $2. Similar premiums are received for oats and wheat. The grain is tested at harvest and delivery for 300 different chemicals. Despite the higher prices to producers, retail prices are about the same as national brand-name products and, in some cases, even less. Products from the one-year-old cooperative can be found in about 700 stores nationwide.

Plains, Yazoo Valley oil mills merge

        Plains Cooperative Oil Mills, Lubbock, Texas, and Yazoo Valley Oil Mill Inc., Greenwood, Miss., have announced their intentions to merge. The new cooperative will serve over 20,000 cotton growers in eight southern states and market 30 percent of the U.S. cottonseed. Combined sales are approximately $250 million from vegetable oil for cooking and the by-products of cottonseed production. Cottonseed meal and hulls are primary ingredients in livestock feed and the linters are used in manufacturing mattresses, upholstery padding and high-quality paper.

Gerry represents U.S. in Ireland

        Michael Gerry, president of the Idaho Wool Growers Association, was selected to represent the American sheep industry at the World Meat Congress in Ireland. The Congress has met 12 times in the past 25 years.
        Representatives from all participating countries discuss beef, sheep and pork marketing situations. U.S. Secretary of Agriculture Glickman also addressed the meeting. Gerry's trip was sponsored by the U.S. Meat Export Federation.

Bison Co-op members to promote

        Members of the North American Bison Cooperative, New Rockford, N.D., voted to use 7 percent of what they get for their bison as a promotion fund for the cooperative. The cooperative's marketing focus will fall in three areas: production of numerous products, a national distribution system and restaurant chain accounts. The cooperative has members in 15 states and four Canadian provinces.

ECLSA elects three to board

        Three new directors have been elected to the board at Equity Cooperative Livestock Sales Association, Baraboo, Wis. The 10-person board welcomed Larry Brandemuehl, Lancaster, Wis., George Roemer, Hartford, Wis. and Joe Schaitel, Sparta, Wis., following 10 district annual meetings across Wisconsin and Iowa.
        President and Chief Executive Officer Gregory A. Beck reported membership attendance at the annual meetings was up 20 percent from the 1998 meetings. Beck believes the increased attendance was because "today's producers are facing the same issues which their forefathers faced 77 years ago when they formed the cooperative: price volatility, packer concentration and lack of government supports. Producers may be once again turning to their cooperative for help." The ECLSA had gross sales of $450 million last year, making it one of the top two livestock marketing associations in the U.S.

NSAC recognizes Duft

        Ken Duft, professor of agribusiness management and finance at Washington State University and a director on the Washington State Council of Farmer Cooperatives, received the Martin L. Black award from the National Society of Accountants for Cooperatives. Duft received the award for his journal article, "Patron Demand Deposit Account Financing by Cooperatives: Prospects and Pitfalls." As part of his recognition, Duft received a cash award and a trip to NSAC's annual meeting.

EPA Offers Sustainable Development Challenge Grants

        The Environmental Protection Agency (EPA) is soliciting proposals for the Sustainable Development Challenge Grant (SDCG) program, one of President Clinton's "high priority" actions described in the March 16, 1995, report, "Reinventing Environmental Regulation." Approximately $9.4 million will be available for the SDCG program in fiscal year 1999-2000. This includes $4.7 million already authorized by Congress for FY 1999 and an additional $4.7 million requested for the program in the president's FY 2000 budget request and subject to Congressional authorization.
        The SDCG program challenges communities to invest in a sustainable future that links environmental protection, economic prosperity and community well-being. It provides an opportunity to develop place-based approaches to problem solving that can be replicated in other communities. The program strongly encourages community members, business and government entities to work cooperatively to develop flexible, locally oriented approaches that link place-based environmental management and quality of life activities with sustainable development and revitalization.
        These challenge grants are intended to be a catalyst for community-based projects to promote environmentally and economically sustainable development; build partnerships which increase a community's capacity to take steps that will ensure the long-term health of ecosystems and humans, economic vitality, and community well-being; and leverage public and private investments to enhance environmental quality by enabling community efforts to continue beyond the period of EPA funding.
        Applicants may compete for funding in two ranges: (1) requesting $30,000 to $100,000 with a total project budget of $125,000 or less; and (2) requesting between $100,001 and $250,000 with no limit on the total project budget amount. Proposals will compete with other proposals in the same range. Applicants in each category are required to provide a minimum 20-percent match from non-federal funding sources. Project proposals must be postmarked by Sept. 29, 1999, to be considered for funding during fiscal year 1999-2000.
        Editor's note: Please see the full text of the Federal Register notice (published July 1, 1999) for complete information about applying for a Sustainable Development Challenge Grant.

Y2k Resources Available
        Jan. 1, 2000, is only a few months away.  so for all you procrastinators, there is no more time to delay making sure all your computer-controlled systems are Y2k ready.  There are a number of resources that can assist you with information on this task.  They include:

The President's Council on Year 2000 Conversion may also be called toll free at 1-888-872.4925.

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