The director of the Indiana State Department of Agriculture said last Thursday in LaGrange County that a new strategic plan for the Indiana dairy industry, to be unveiled at an upcoming meeting in Indianapolis, will encourage growth in the processing sector, with an eye toward northern Indiana.
Ted McKinney, ISDA's chief executive, was the keynote speaker during the LaGrange County Extension Board's annual meeting at Woodruff Grove Church near Wolcottville.
"We're looking at processing opportunities," McKinney said, indicating that officials are hopeful of landing a cheese or yogurt plant.
The plan will be unveiled on March 16 by Lt. Gov. Sue Ellspermann during the Indiana Livestock, Forage and Grain Forum at the Indiana Convention Center.
Upon being named ISDA director a little more than a year ago, McKinney, a former executive with Elanco and Dow Agrosciences, said he made the decision to "dive into and really attack" one segment of the Indiana livestock industry. He chose dairy because "it felt right" and because the dairy industry wanted it.
"When it's unveiled, you're going to see some interesting things," McKinney said. "One is, there is a whole lot of milk leaving this state every day—fluid milk leaving. Well, you and I both know that if you're really doing it right, you add the value before you ship it out. So we're chasing some processors."
McKinney said the strategy will suggest where the new processing plants should be located. With most of the dairy cows located in the upper third of the state, northeastern Indiana is one location with processing opportunities. Other areas, according to McKinney, are the west central and northwestern portions of Indiana.
"There is great opportunity if we get some things right," McKinney said.
Later on, the ISDA director clarified what he meant by that statement. For the processing sector to grow, McKinney said Indiana will need three things: leadership from state administration, technology and innovation, and public support for growing the livestock sector.
"I do see leadership" in the Pence administration, McKinney said. But he added that agriculture in general has taken some blows from activists who oppose new technology, like genetically modified organisms, or GMOs. However, in order to feed a growing world population, with an expected peak demand for protein occurring sometime around 2020 to 2025, McKinney said the agriculture industry "will need every innovation we can find."
To help with public support, he urged farmers to speak up for their industry. While that may seem counterintuitive for some, the ISDA director said it's possible for farmers to be both humble and confident enough to share the good story of agriculture.
In other comments, McKinney said the General Assembly is considering legislation that would create a price reporting service for auction markets in northern and southern Indiana.
McKinney said the bill addresses a lack of information about the prices paid for certain commodities like hay, corn, cattle and other goods.
"We found anecdotal evidence ... that we, in fact, have had friends and neighbors from north to south, to the east and the west—other states—coming in and buying our critters and our stuff and taking it back and selling it high. You know what happens when you buy low and sell high—somebody makes a profit and it's not us."
McKinney said the state hired a consultant who recommended hiring a market observer in northern Indiana and another one in southern Indiana, both of whom would supply market data to ISDA, which would then post that information on the Internet.
"That lets those of you that are buying and selling know that you have a more equitable price based on discovery and comparison," McKinney said.
The bill, authored by Rep. Don Lehe (R-Brookston), passed the House and now heads to the Senate.
McKinney said lawmakers are addressing the issue of farmland taxes, which have increased by double digit percentages every year since 2007. At the same time that property taxes are going up, farmers are facing crop prices that are below the cost of production. He said this creates a "perfect storm" for farmers.
SB 436, authored by Sen. Brandt Hershman (R-Buck Creek), would freeze the 2015 base assessment value of $2,050 for one year. The bill passed the Senate by a 49-to-1 vote last Tuesday.
"It's looking good so far," McKinney said.
McKinney also provided an update on efforts to promote agricultural products grown in Indiana. He said the state legislature last year authorized the creation of an "Indiana Grown" commission to promote such products. The commission met for the first time last August during the Indiana State Fair, and there is considerable excitement about the possibilities.
Similar to initiatives in Ohio and Kentucky, the Indiana program would allow producers to attach the "Indiana Grown 100%" label on products that are grown, processed, bottled or packaged completely in Indiana. If a portion of their product has been grown or processed in Indiana, they could use the "Indiana Grown" label.
McKinney said the commission finished writing its business plan two weeks ago. The new labeling would apply to all agricultural products and would be size and technology neutral. ISDA would administer the promotions, marketing and logo use.
While there is a great deal of excitement regarding this effort, McKinney pointed out that the Indiana Grown program has been in existence for three years but hasn't received any funding. He is hoping that lawmakers deliver the necessary resources during this legislative session.