August 25 2008

SWINE  INDUSTRY  VITAL  TO  SOUTHERN  MINNESOTA
If someone were to mention what industry in Minnesota generates nearly $2 billion per year in direct sales, and contributes approximately $7 billion to the State’s economy, very few people would guess the Pork Industry. However, those are the most recent estimates of the impact that Minnesota swine producers have on the State’s economy. Minnesota ranks third in the Nation in hog production, producing over 15 million hogs per year. The Pork Industry is extremely important to the economy of South Central Minnesota. Blue Earth, Nicollet, Martin, and Brown Counties are in the top five hog production counties in the State. In fact Martin County is in the top ten hog producing counties in the U.S., producing over 1.5 million hogs per year. Blue Earth County produces just under 1 million hogs annually, while both Nicollet and Brown County produce about 650,000 hogs per year.

The Minnesota Pork Industry supports approximately 22,500 jobs in Minnesota, including a significant amount of employment in the South Central Minnesota Region. These jobs include hog management and care, meat processing, building construction and equipment manufacture, feed processing, trucking, veterinarians, etc. In our region we have some of the State’s major producers and integrators in the Swine industry, several major feed processors and equipment manufacturers, and some of the largest Veterinarian Clinics in the upper Midwest. Two of the largest soybean processing plants in the U.S. are located in Mankato, ADM and CHS, both of which have a large employment base. The primary product produced at these plants is soybean meal, of which 95 percent is fed to livestock, and in South Central Minnesota a large percentage of the soybean meal is fed to hogs. Approximately half of the corn and one-third of the soybeans raised in Minnesota each year is fed to livestock.

A person might wonder, why has South Central Minnesota become a “focal point” for expansion and growth of the Pork Industry in the past 10-15 years ? There are several competitive advantages that this Region has compared to other areas in Minnesota or the U.S., which include :

• Abundant corn and soybean production and supply.
• Innovative and experienced swine producers, which are some of the best in the U.S.
• Excellent industry-support resources, such as veterinarians, feed consultants, ag lenders, facility contractors, etc.
• Top-notch producer education programs and research efforts through the MN Pork Board and Pork Producers Assn., and the University of Minnesota.
• Large amounts of cropland to utilize the swine manure as a valuable fertilizer resource.

The manure generated by swine facilities has become a valuable resource to South Central Minnesota crop producers. Fertilizer costs for corn production in 2009 are expected to be $250.00-$300.00 per acre. A crop producer with some well managed hog finishing facilities to provide liquid swine manure for fertilizer, can provide a large percentage of the annual fertilizer needs for crop production. The availability of high quality swine manure has become an important part of crop economics in the region. This is why there are still a large amount of crop producers willing to invest in swine finishing facilities on their farms. Most of the liquid swine manure is injected into the soil in the Fall or early Spring, in order to take full advantage of the crop nutrients. This method of application is very “environmentally-friendly”, and poses very minimal risk of nutrient runoff into rivers and streams, especially on the heavier soils that exist in most parts of the region.

The area Swine Industry has faced some economic and low profitability challenges in the past year, primarily resulting from skyrocketing feed costs and other input costs. Corn prices above $6.00 per bushel and soybean prices above $13.00 per bushel earlier this Summer caused feed costs for hog producers to double compared to a year ago. The cost of fuel, transportation, and most other inputs has also risen dramatically in the past year. The result has been significant financial losses for many swine producers during the first half of 2008. More recently, some improved hog market prices, and a slight easing of feed costs, have helped to somewhat improve the profit margins in hog production. Longer term challenges for swine producers include concerns over corn supply as a result of the increasing corn usage for ethanol production, increasing environmental regulations that add more production costs, U.S. export policies, and the lack of public support for the Swine Industry.

SUMMARY
The Swine Industry in South Central Minnesota is “alive and well”, and it will likely be that way for a long time to come. Even though pork producers are facing some current economic challenges, as well as some long-term issues, the primary players in the Swine Industry have shown a strong resilience to overcome the economic challenges and industry issues that have existed in the past. There is no reason to suspect that things will be any different now or in the future, and the Pork Industry is likely to continue to be a major economic factor in South Central Minnesota.

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Note --- For additional information contact Kent Thiesse, Farm Management Analyst and
              Vice President, MinnStar Bank, Lake Crystal, MN. (Phone --- (507) 381-7960) ; 
              E-mail --- kent.thiesse@minnstarbank.com)  Web Site --- http://www.minnstarbank.com/

ANNUAL PURPLE RIBBON

AUCTION DRAWS CROWD

Saturday, August 23, 2008
Steve Pooch 651-288-4314

Minnesota State Fairgrounds....Quality animals, quality kids, and quality buyers made the 29th annual Purple Ribbon Auction a huge success. The annual parade of champion beef, lambs, goats and swine set a fast pace and found some new record prices.  The auction raised more than $310,000 in additional premium dollars from 88 head for Minnesota 4-H youth and programs.

The Champion Market Beef Steer came from the cross-bred middle-weight division and was shown by Lauren Lindeland of Blue Earth County. It was purchased for a record price of $14,000 by long-time auction supporters, the Minnesota Farmers Union. The Reserve Champion was from the heavy-weight division and owned by Kayla Nelson of Fillmore County also set a record with the successful bid of $9,000 from Butch Ames of Ames Construction.

Another record was recorded as $8,000 was paid for this year’s Grand Champion Dairy Steer exhibited by Kristen Wingert of Wabasha County. The successful bid was from a group of longtime South St. Paul supporters that includes Lenertz Trucking; O&S Cattle Company; American Foods Group; and Central Livestock/CRI. Alan Dicke of Goodhue County showed the Reserve Champion Dairy Steer which was purchased for $6,600 by the Minnesota State Fair Concessionaires.

This year’s Grand Champion Market Swine exhibited by Jenna Stade, Jackson County sold for a record $8,000 to a group that included Hormel Foods of Austin; John Morrell & Company and the Phillips Agency. The Reserve Champion Barrow shown by Breanne Rentschler of Jackson County was another record with a $6,000 bid by a group that included Pioneer Hi-Bred Seeds, Boeringer-Ingleheim, ADM Alliance Nutrition, AgStar, New Fashion Pork, Phillips Agency and Rolfings of Cleveland.  The Champion Market Gilt shown by Emily Wegener of Martin County sold for $6,000 with a bid from Monsanto and the Friends of Martin County. The Reserve Champion Market Gilt exhibited by Hayden Kerkaert of Pipestone County brought $5,000 from a group that included Monsanto, Pipestone Systems Companies, New Horizon Farms and the Friends of Martin County.

The Machine Shed of Lake Elmo returned to lead a group of buyers, Pioneer Hi-Bred Seeds and the Minnesota State Fair Concessionaires on a record bid of $5,100 for the Grand Champion Market Lamb shown by Jacob Wiebe of Cottonwood County. The Reserve Champion Market Lamb shown by Jessica Wiebe of Cottonwood County sold for $3,100 to a group including Big Gain Feeds, Diamond V Mills and the Cottonwood County Boosters.
The Grand Champion Meat Goat shown by Alix Kermes of Freeborn County sold for $4,000 and the Grand Champion Dairy Meat Goat exhibited by Paige Johnson of Fillmore County sold for $2,600 to the group known as the 4-H Meat Goat Supporters.  

Proceeds from the Purple Ribbon Livestock Auction go to the winning 4-H youth and 20% of the funds are designated to further Minnesota 4-H, the Minnesota 4-H Foundation and the Auction Scholarships. Nineteen 4-H Livestock Auction Scholarships were awarded this year from the premiums received and new matching dollars that enabled additional youth to receive $1,000 scholarships.

The new match donors include AgStar Home Mortgage, LACO Industries, Interstate Power Systems, Lynch Livestock, Hormel, John & Sue Story, Richard & Bonnie Compart, Kent Thiesse, Greg Harder and Brad Rugg.
Each Champion will be on display through Labor Day on the east side of the cattle barn. The sale is sponsored by the Minnesota Livestock Breeders Association.

MEDIA  RELEASE
August 18,  2008

For More Information Contact :  Kent Thiesse
                                                         MN State Fair 4-H Beef Show Coordinator 
                                                         (507-381-7960)

STATE  FAIR  4-H  BEEF  CHAMPIONSHIP  AND  4-H  AUCTION  SCHEDULED

2008 will mark the 29th anniversary of the "Purple Ribbon 4-H Livestock Auction" at the  Minnesota State Fair. The 4-H Auction will be held on Saturday, August 23, at 6:00 PM, in the Livestock Judging Arena. Former Minnesota Congressman Gil Gutknecht, who is a Professional Auctioneer, will serve as the Honorary Auctioneer for the Sale of Champions. A total of about 85 purple ribbon 4-H exhibits will be sold in the 4-H Auction. Auction proceeds from the 4-H Auction in previous years will be used to award $1,000.00 Scholarships to nineteen outstanding 4-H Junior Leaders in Minnesota during the 2008 4-H Auction. Twenty percent of the 4-H auction proceeds are used to fund special 4-H programs during the year throughout Minnesota.

The "4-H Beef Championship Event" will be held at the Minnesota State Fair on Friday, August 22, at 4:30 PM in the Coliseum, at the State Fairgrounds in St. Paul. The Championship Event this year will include the selection of the Grand and Reserve Champion Market Beef, Dairy Steer, Breeding Heifer, Cow/ Calf, and Prospect Market Calf from the 4-H Beef Cattle Show at the 2008 State Fair. 4-H Beef Interview Champions and 4-H Scholarship recipients will also be recognized at this event. The Championship Event will represent the "best of the best" from the more than 575 4-H members that will be exhibiting beef projects at the 2008 Minnesota State Fair, according to Kent Thiesse, State 4-H Beef Show Coordinator.

Over 2,500 4-H members will be exhibiting beef, dairy, swine, sheep, poultry, rabbits, and dairy goats at the Minnesota State Fair on August 20 - 24. For a complete schedule of 4-H livestock show times and other special activities during the 4-H livestock shows, please refer to the Minnesota State Fair 4-H web site at :  http://www.fourh.umn.edu/statefair/

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