|
|
U.S. Grains Council creates $592 million for U.S. producers annuallyThe U.S. Grains Council recently conducted an extensive performance review of its programs in order to asses the financial value created by the Council for U.S. farmers. Rick Fruth, USGC treasurer and Ohio farmer, said the Council engaged Informa Economics LLC to develop the evaluation process and then had the results reviewed by an economist from USDA's Foreign Agricultural Service. "Our goal in conducting this review was to be as accurate as possible and alleviate any concerns that a bias exists," said Fruth. "We wanted to give our producer members a clear picture as to how their state checkoff dollars apportioned to the Council have a significant return. Producers are fortunate that their checkoffs are investing in the Council and increasing demand for U.S. feed grains, which means a greater bottom-line annually." The Informa Economics study concluded that the value of U.S. exports due to the Council's market development efforts is $241.2 million annually, with the value of exports per dollar invested being $12.90. The analysis showed that the total return to producers on their investment in international market development is $32.87 annually for each dollar invested. U.S. Grains Council members provide only a minority share of the investment required, however, 100 percent of the returns accrue to producers. This means that the U.S. Grains Council generates about $591.7 million for producers annually. "It is almost unheard of to invest one dollar and get a return of nearly $33. If the Council was a for profit company generating comparable returns Wall Street would be beating a path to our door bringing wheel barrows full of cash to invest. The Council's top priority is to improve the lives of U.S. farmers and this study confirms we are doing just that," said Fruth. Mike Dwyer, staff economist for the USDA's FAS was involved in the process from start-to-finish and stated that the conclusions found by the Council and Informa were on track and perhaps even conservative. Dwyer said the Council was ahead of the rest of the industry and complimented the efforts of Council leadership and the decision to hire Informa Economics LLC to serve as an objective outside party in the performance review process. 3/10/08 Date: 3/4/08
Copyright/Privacy
Copyright 1995-2011. High Plains Publishers, Inc. All rights reserved. Any republishing of these pages, including electronic reproduction of the editorial archives or classified advertising, is strictly prohibited. If you have questions or comments you can reach us at High Plains Journal 1500 E. Wyatt Earp Blvd., P.O. Box 760, Dodge City, KS 67801 or call 1-800-452-7171. Email: webmaster@hpj.com |
|
