Livesetock Investment Grants go to 50 farms
By Heather Thorstensen
hthorstensen@agrinews.com
Date Modified: 03/11/2010 9:11 AM
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OWATONNA, Minn. -- Brothers Matt and Jon Schmidt have invested in their farming careers. Now the state of Minnesota has given its support.
They knew they wanted to take over Schmity Holsteins in Owatonna, which has been in their family for more than a century. But for five years, they milked a herd separated on two farms with worn out facilities and equipment. Matt was working a full-time job in town while Jon and their father, Myron, stayed on the farm.
"We needed to build something or quit," said Jon.
They decided to build.
They couldn't get financing when they tried in 2008, but a local bank decided to back them in 2009. Construction began last July for a new free-stall barn big enough to fit 180 cows. They also built a concrete manure pit with a capacity of 1.2 million gallons and converted a 95-year-old tie-stall barn into a double-five, flat parallel parlor.
Then came more good news: It was announced in February that Schmity Holsteins is one of 50 producers selected for the latest round of Livestock Investment Grants. Their $30,000 grant was delivered Feb. 26 by the Minnesota Department of Agriculture.
The Legislature-funded Livestock Investment Grant program was launched in 2008 to help livestock producers improve or expand their operations. This year, the $1 million fund was cut by six percent. Applications came in from 245 producers, less than half the amount that applied the first year. MDA expected that because of reduced profits in livestock sectors.
Combined, the applicants' projects are valued at $39 million.
"Livestock production and processing pumps $11.6 billion into our state economy and accounts for more than 38 percent of the state's total agricultural income so it's important to provide an incentive for livestock farmers to reinvest in their industry," Minnesota Department of Agriculture commissioner Gene Hugoson said in a statement. "This grant program will help them stay competitive and ensure Minnesota remains one of the top ten states in livestock production."
The 50 grantees live in counties across the state. Funding ranged from $994.55 to $30,000. Most of the grants, 28, went to dairy producers. Thirteen grants went to beef farms and five went to swine. Two poultry farms were picked, as were one sheep and one goat operation. Grantees included beginning, organic and conventional producers with projects such as improving housing, waste management and pasture. Anew provision allowed grants to help producers recover from a natural disaster or unintended event, such as a disability.
The grants reimburse a producer 10 percent of a project up to $500,000, after a minimum investment of $4,000. Applicants were ranked on a scoring profile favoring projects that would provide environmental benefits or increase production or livestock numbers, among other things.
The Schmidt brothers are happy to be picked.
"It's nice getting it to pay my bills," said Matt.
They built with future expansion in mind, and hope to apply for another grant. Each recipient may receive up to $50,000 for the life of the program.
They're milking 120 cows now, up from the 90 head they had before, and hope to be at capacity, 180-head, by mid-summer. They feel cow comfort has improved with sand bedding and that the herd's fertility has increased, with more heats and pregnancies.
The biggest change, said Jon, is the amount of labor they have to do, mostly with feeding. Instead of taking feed straight to each cow, they use a skid loader to push up their total mixed ration. Jon estimates they can milk twice as many head in the same amount of time in their new parlor. They used to haul manure daily to fields but now they'll store it in their pit for a one-time fall application, when they can test it to get a better understanding of its nutrients and get a more even application.
The farm has officially transferred to the brothers and Matt became a full-time farmer last August. He handles field work on the farm's 240 tillable acres while Jon focuses on the herd. They're renting land from Myron, who still helps with some chores.