Despite sagging farm economy, it’s not all dismal for agriculture

While no one argues that the farm economy is suffering, a number of vendors attending last week’s North American Farm and Power Show in Owatonna said that for the most part their businesses have not seen downturn as might be expected.
Several vendors said that the current farm economy means that for a farming operation to keep going it needs to increase efficiency.
“Our sales are actually up,” said Jayden Scherer of Ziegler Cat in Shakopee.
His company sells several brands and models of equipment, including combines that are capable of harvesting 5,000 to 6,000 acres. While the equipment can be expensive, he said, it has become more important for farmers to operate in the most efficient way possible and for some this will involve equipment with the latest technology.
“We have also worked with manufacturers to get better pricing,” he said.
While not every farmer is in the market for the newest equipment, everyone is looking for that efficiency and that has also benefitted smaller companies.
East Prairie Labs is one of those companies. In fact, said owner Jared Ellefson, he started the company because of the stagnant farm economy.
Ellefson’s family farms in the Flandreau, S.D. area. He said he graduated from South Dakota State University after studying economics and business. Looking for a way to improve his own farming, he knew that the health of the soil is of vital importance.
Markets have been down, he said, and projections have been they will remain stagnant for a number of years. He said he saw the potential for a business helping fellow farmers using chemistry, biology and agronomy to get the highest yields at a reasonable cost.
By analyzing soil, he said, the producer can determine exactly what the soil needs and when combined with the technology of modern equipment that can apply nutrients in the right amount in the right place they can achieve the best yields.
The only way to survive in a stagnant market, he said, is to produce more by being more efficient. Increasing yield is what it takes to even break even, he said.
That sentiment was echoed by agronomists at the show who agreed that in difficult times it is important for a producer to look closely at their return on investment.
While some might look to newer, more high tech equipment, others are looking to maintain the equipment they already have.
That, said Lee Sackett of Lee J. Sackett, Inc., has provided another venue for his company. Sackett, who lives near Ellendale, primarily has run his business as a tractor and vehicle restoration operation.
But as the farm economy has been tougher, he said, he has expanded into parts and services.
“They may want to keep their equipment running longer,” he said, “but not move to a full restoration.”
Current difficulties in the agriculture sector are also not keeping young people from looking at the career opportunities.
Representatives at the show from both South Dakota State University and the University of Wisconsin-River Falls said agriculture programs at the schools are thriving.
“We have 100 percent placement out of our agronomy program,” said David L. Wright, head of the Department of Agronomy, Horticulture and Plant Science, at the SDSU College of Agriculture, Food and Environmental Science. “Most have jobs before they complete their senior year.”
Many of these students still want to return to the farm, he said, but there are also many other agriculture related jobs and major firms such as General Mills and Hormel recruit students.
“It’s a great time for students to come in for the programs,” he said. Despite current conditions, he added, agriculture is never going to go away.
Those sentiment were echoed by Laura Walsh of UW-River Falls.
The school draws a lot of students to its ag program from southern Minnesota, she said, and the ag program has the largest number of majors on campus.
“The market for graduates is good,” she added.