Speech

Argentina Agriculture Gate to Plate Seminar

Remarks of Governor Judy Martz
Argentina
8/28/2003

Thank you all for coming today, and for taking such an interest in this effort to discuss cattle and beef management practices. It is indeed a pleasure to be in Argentina and see so many people here today.

I have truly enjoyed my visit to Argentina thus far. You have a beautiful country and everyone we’ve met has been incredibly friendly and helpful. It's interesting to discover that livestock producers here have many of the same values, and many of the same concerns, as producers in Montana:
o What will prices be when your animals are ready for sale?
o Will drought keep you from having enough feed for your animals?
o Grass and hay are the foundation for livestock production in Montana. In other states such as Kansas and Texas, large feedlots and grain play a much larger role.
o Our producers in Montana have a love of the land, and are good stewards of the environment – both to maximize production and to leave a solid business and heritage to their children.

I know that you are extremely dedicated to the Argentine livestock industry and to agriculture as a whole. This event offers a tremendous opportunity, both for you as cattle producers and for members of our delegation.

I hope you will take the time to visit with our delegation and learn more about how Montana producers manage their cattle and breeding programs. Enjoy the chance to view high quality cattle and Montana genetics displayed here.

MONTANA AGRICULTURE
In Montana, agriculture is our largest industry, contributing over $2.3 billion U.S. dollars annually. Each dollar passes through Montana's economy, providing income for businesses and jobs and providing taxes that support schools, highways and the services that our people expect from government.

One out of every five Montana workers is employed in agriculture or in an agriculture-related field such as farm supplies, processing and agricultural products marketing.

Montana has more than 26-thousand farms and ranches; approximately 12-thousand of those are beef cattle operations. Montana ranks seventh among U.S. states for beef cattle numbers, with more than 2.4 million head of cattle and calves.

Yes, it's true that Montana has more cattle than people – about 2.6 head of livestock per person, according to the latest census. We do not have many large cattle feedlots like those found in states such as Kansas, Texas and Oklahoma.

The Montana cattle industry focuses primarily on genetics and on the production of calves that are fattened in other states and in Western Canada. Montana genetics also have found their way to other countries, including Argentina.

There are many reasons for our production focus:
o Montana is a large, rural state, and somewhat remote from the large population centers that form the major markets for beef in the United States.

o Our major crops are small grains and hay, and much of the agricultural land in Montana is ideally suited for the production of grass and hay, rather than the corn and sorghum commonly used to fatten cattle for slaughter.

o Large cattle feeding operations and packing plants are located in states with a significant corn crop and closer to major population centers. Consequently, it is generally more cost effective to ship calves than it is to ship slaughter-ready animals.

Within the past year, two companies have greatly expanded their presence in Montana to buy high quality malting barley from the state's farmers. We expect this to have spin-off implications to enhance agriculture and cattle production in our state. Only the highest quality barley is made into malt, which is used in beer, bakery goods and candies. The remaining barley is sold to feedlots to fatten cattle.
As a result, we expect more cattle feeding to occur in Montana as the amount of barley grown increases.

Our distance from large processing centers and markets, and our climate and environment, have helped shape our cattle industry to emphasize genetics and cow-calf, seedstock production.

Montana's cattle are hardy and efficient to endure a wide range of climatic conditions with primarily grass and hay as a feed ration. This, combined with the commitment of Montana's ranchers to their land and livestock, has established Montana as a leader in purebred and commercial cattle production.

The superior genetics of Montana seed stock adds value to the beef industry, as our seed stock is demanded worldwide.

Increasing the value of our agricultural production and economic development in Montana are two of the principal goals of my administration. The concept of "adding value" through production or marketing is very important and has been very successful in our state.

As in Montana, I'm sure you also have organizations in Argentina that criticize your farming and ranching practices – often out of ignorance because they hear only one side of the story.

You might be interested to learn that among our value-added growth industries is agricultural tourism, including guest ranches that allow urban residents to participate in such tasks as cattle drives and feeding animals. We believe these activities not only provide additional income, but also help educate consumers about how the beef and other food they buy is grown.

MONTANA TAX STRUCTURE
I have been asked about the services that U.S. producers receive from the State of Montana and from the United States government, and about the taxes our cattle producers pay.
o (OPTIONAL COMMENT: If asked, our producers would probably tell you that they don't receive enough for the taxes they pay. In that respect, there might be agreement among farmers and ranchers everywhere.)

Livestock producers in Montana pay income taxes on the net profits from their operations. They pay property taxes on their land – at a tax rate that is lower than the rate charged for residential and commercial property.

I am proud to say that our administration successfully phased out an inventory tax that was previously charged on business equipment and livestock.

Cattle producers also pay an annual fee of about one U.S. dollar per animal to fund the animal health, brands enforcement and other functions of the Montana Department of Livestock.

ANIMAL HEALTH ISSUES
Worldwide market reactions to the recent finding of a cow in Alberta, Canada, with BSE disease highlight the fact that animal health matters, and the regulation of livestock feed and related issues, are indeed an important function of government.

The State of Montana has worked closely with the U.S. Department of Agriculture to review our inspection procedures and rules relating to animal health.

While this work as come with a cost, I believe our producers agree that animal health measures are vital, both to assure consumers and customers worldwide that we have a safe and wholesome product, and to contain any future disease threats that might arise.

One of the endeavors of our delegation here this week is to learn more about how Argentina has dealt with foot-and-mouth disease, and lessons we might take back with us to both prevent and be fully prepared for dealing with animal disease risks.

CONCLUSION
Thank you, again, for coming here today to listen to so many specialists in agriculture. Please take time to visit with the industry representatives that are here to share their experience and knowledge with you. Continue to strive for excellence and broaden your knowledge of production agriculture and the beef industry.

Finally, I would like to thank our hosts for this wonderful event, the Boglione family. Freddy and Federico, thank you for your wonderful hospitality and generosity in putting on such an outstanding event.

###