Opinion

Cooperative effort to promote agriculture

Wednesday, February 6, 2008

Agricultural New Generation Cooperatives have become very popular around our state. In every part of Missouri, we have seen these joint efforts by farmers to stimulate their local economies by working together to add value to their products. The result has meant a major boost to the agriculture industry that is such an integral part of the economic success we've had as a state in recent years.

New Generation Cooperatives are organized around a specific commodity to add and capture value for the farmers by allowing them to own and control their products farther down the market chain, sometimes directly to the consumer. Good examples of this would be the various biofuel cooperatives that have formed all around the state. The farmers who came together to form these cooperatives now bring their corn or soybeans to a plant that in turn processes those goods into fuel and other by-products. As the cooperative thrives so too do the farmers who are part of it as they receive a portion of the profits back for business they did at the cooperative.

Aside from the financial gain to the members of the cooperative, these ventures also provide a significant economic boost to the local economies where they are located. Cooperatives such as the biofuel plants offer numerous good-paying jobs with solid benefits for their employees. It also goes without saying that the collective bargaining power of hundreds of farmers working together far outweighs the influence of an individual attempting to sell his crops. The combined market power of the many farmers joined in a cooperative can stand up against even giant multi-national corporations.

As a legislator and someone who believes in promoting Missouri's agriculture industry, I have seen just how successful the New Generation Cooperatives have been and continue to be. We have done a great deal as a state to try to assist our farmers in forming these cooperatives because we know it means a stronger economy for the local communities where they are located, and the state as a whole. One of the ways we have done this is through our New Generation Cooperative Tax Credit Program that is designed to stimulate investment in new agricultural ventures. It has been a big success and part of the reason why so many farmers have been able to band together to form cooperatives to add value to their products.

The program has been so successful that we've actually had to turn down worthy ventures because our tax credit program was at its limit. Because we want to continue to support these worthy endeavors, we are working on legislation this session that will increase that cap so that additional ventures can receive financial assistance. Our Special Committee on Agri-business met this week to approve legislation that would increase the tax credit cap for the New Generation Cooperative Tax Incentive Credit Program from $6 million to $11 million annually. The bill also would extend the expiration date on this vital program to 2016.

With this we give our farmers an improved chance to be competitive in the 21st century economy. With the financial assistance necessary to encourage people to take part in these ventures, we are confident we will see the successful trend of cooperatives continue. This in turn will help stimulate millions of dollars of additional economic activity in our rural communities. The end result is the agriculture industry that is such an integral part of our state's history and economic success will not only survive but will thrive in the years to come.

Our farmers are working tirelessly to stay viable in the today's global economy and it is the best interest of all to support them as they seek ways to add value to their products. At the end of the day, we are confident we are giving our farmers the tools they need to succeed, not only today but well into the future.

Contact Fisher at the Capitol by phone at (573)751-5388, by e-mail at barney.fisher@house.mo.gov or by mail at Room 408B, State Capitol Building, Jefferson City, MO. 65101.