Ag Is Driving Iowa’s Economic Development

Pioneer Hi-Bred set up a very interesting and informative backdrop recently when dedicated its sparkling new $40 million plant genetics research facility in central Iowa. On a stairway next to where company officials and state leaders cut the ceremonial opening ribbon (green, of course) stood dozens of researchers all dressed in white lab coats and safety glasses.

The event in Johnston was a great illustration of all of the science and high technology in farming today. But the long line of well-educated researchers was an even better illustration of how agriculture remains a driving engine behind Iowa’s economy.

The numbers bear that out. Propelled by strong gains in the farm sector, Iowa’s personal income growth in 2011 was the second strongest in the United States and well above the national average. Iowa’s personal income growth was up 6.8 percent in 2011 and was behind only one state, North Dakota. And as Iowa Gov. Terry Branstad pointed out at the Pioneer event, North Dakota’s gains are based mostly on oil drilling.

For years Iowa’s government officials and lawmakers have lamented the state’s so-called brain drain, worried that educated young people were fleeing the state in droves. To stem the brain drain, many consultants urged the state to look in new directions, like high-tech, manufacturing or even movie making.

Those sectors might be pieces of the puzzle. But the old mainstay—agriculture—remains the primary brain-magnet for Iowa.

You can see it all over the state. Seed genetics companies like Pioneer and many others are drawing talented people from all over the country and the world to work in the state. They are taking advantage of the close proximity to the world-class research at Iowa State University and many of the country’s best farmers.

And the economic growth magnet goes way beyond seed genetics.

For example, an agricultural tire manufacturer based in the Czech Republic will soon hold the grand opening of its new plant in Charles City. The tire maker is investing $52 million in the northeast Iowa plant and will employ more than 150 people.

To the west at Fort Dodge, agribusiness giant Cargill continues to build its Fort Dodge corn wet milling plant. Other companies have already started to locate near the Cargill plant to take advantage of the synergies.

The new Valley of the Moon turkey hatchery is sending birds around the country and the world. And a Dutch company Lely is beginning to build robotic milking machines in Pella, adjacent to another leading Iowa agriculture equipment manufacturer, Vermeer. (Yes, robotic milkers. Our ancestors would never believe it!)

The bottom line is that when you see economic development in Iowa these days, there’s a pretty good chance it’s connected to agriculture.

Ag’s contribution to Iowa’s economy is not lost on the state’s leaders, like Branstad.

“Agriculture and agribusiness are really the strength of the Iowa economy right now,” he said at the Pioneer ribbon cutting. “It wasn’t that way when I was first governor back in the 1980s and I have to tell you, it’s a lot more fun now.”

Written by Dirck Steimel
Dirck is the news services manager for Iowa Farm Bureau.

Sustainable Agriculture; Feeding and Protecting the World

As we approach the 40th anniversary of Earth Day, a lot of Iowans who make their living tending the soils are honoring the progress and the challenges time has brought to agriculture. Global population has more than doubled since the days when my Great Grandfather used a horse to plow the soil of our Poweshiek County farm. Back then, his only task was to feed his family and community. Each farmer grew enough food to feed eight people. Now, my sons are now the sixth generation Langs to turn soil on our farm.

But today, being ‘sustainable’ means each farmer has to feed about 155 people. Just as our ‘community’ of Brooklyn has grown, (1355, according to the last Census); so has the world. Farmers like me share the respnsibility to feed, fuel and provide fiber for a growing world of 6.5-billion; one that will increase by another 1-billion in the next decade.

While countries such as China and India grow in numbers and wealth, so too, does their demand for grain-fed meat. Those same populations are also seeking out the use of crops for biofuels such as ethanol, biobutanol and soy diesel to reduce demand for costly foreign-oil based fuels and fertilizers.

In 2010, farmers remain ‘sustainable’ if they protect their priceless (and ever diminishing) acres of available, fertile farmland. Clearly, the argument of being ‘sustainable’ isn’t size or even commodity-specific; it’s about being better at what you do, with the resources you have available. It’s about embracing technology, not railing against it.

Technology brings better seed genetics, better equipment to farmers and new careers for our children (studying seed genomes, creating renewable energy sources, biochemistry, livestock odor control and more). But, taking that science from the lab to the field takes an ability to adapt and diversify. Successful farmers are doing that, and that is why the shelves at your grocery store or local Farmer’s Market are full of choices that, through the hard work of farmers, we are happy to provide.

In 1945, long before the first Earth Day, corn farmers grew an average of 33 bushels per acre. Today, thanks to these advances, I grow nearly 200 bushels on the same acre of land my Grandfather did. Many farmers have achieved yields much higher, even up to a record of 440 bushels per acre. For the sake of hungry people; we need to do even better.

As we celebrate Earth Day 2010, it’s true that technology is blurring the borders of our hometowns and helping all farmers meet demand for constantly-evolving consumer food choices. But, we must continue to be responsible in meeting that goal; good farmers are protecting the soil and the water from over-use or erosion by either planting grassy buffer strips to protect waterways, planting terraces to reduce erosion and leaving crop stubble on the ground year-round to hold soil and nutrients in place, (no-till farming).

These efforts weren’t done in my Great-Grandfather’s day. But now, combining what we know with what we grow is making a difference.

Written by Craig Lang
Iowa Farm Bureau Federation President