Farmers have an opportunity

One of the best events during recent months was the announcement of a soy oil extraction/biodiesel facility to be located at Eve. Surely, the Eve Chamber of Commerce must have been extremely active to pull this off. This will mean that Eve will be placed on the map.

When this facility is completed it will have an economic impact on several counties in this part of Missouri and eastern Kansas. Prairie Pride Inc. has started an equity drive this week to seek investors in the major enterprise with a number of information meetings being held. There is a great amount of interest being expressed.

When I first heard about the possibility of a facility to be located either in Bates County or in Vernon County, I thought that the possibilities were good. I knew that a great amount of effort was going into it to select the proper location. Later the announcement came. The facility is to be located on the western side of Vernon County in the Eve community.

A ribbon cutting was being held for Prairie Pride Inc. on East Austin where their office is now located. What is Prairie Pride Inc.? As soon as I got into the building I realized that it is the name for a cooperation that had been formed for the biodiesel. We had an opportunity to meet the officers and the board members.

One of the first leaders in obtaining a group was Marvin Oerke, Butler. I was impressed with what the group was doing and had the desire to visit with Marvin. The successful farmer is the president of Prairie Pride Inc. I had the opportunity to visit with him at the ribbon cutting.

I asked Marvin how the idea for the cooperative originated. Many of you remember when a group of farmers went to Washington, D.C., with their tractors. He was there for that demonstration. He and a group of others were at a motel on the way home when they decided that instead of doing something negative, they needed to do something positive. He has been working on this concept for several years and this led to him and others forming the Prairie Pride Inc. Certainly development of this facility are going to be positive, especially with the high oil prices we are experiencing or will have.

There is a comment on the brochure, "We may not be able to predict the future, but we have the chance to shape it." This group is shaping the future for this area.

Wayne Prewitt, agricultural business specialist, and Al Decker, livestock specialist, both with the University of Missouri Extension are among six advisors to the board and serve as ex-official members. Wayne describes the board as being fantastic. They are a group that gets things done. It is a good board. He is excited about what is being done to obtain the facility.

By visiting with Wayne, I have a better understanding of how the cooperative will work and it appears as the proper thing for the investors. The facility will include an elevator. Only producers or potential producers may become members. When the members sell their units, it will be sold only to other producers. This will keep outside investors out and the farmers will have control of the facility. There are several advantages for the facility to be located where it is planned. There are two railroads, Missouri North Arkansas which feeds the poultry region in Arkansas, and the Kansas City Southern. The rates for electricity and natural gas are cheaper than it would be in other locations. There will be enough soybeans that the soybean meal will make it profitable.

According to the brochure, a producer may join PPI for a $1,000 membership fee. These funds are at risk capital -- used to further the soybean oil extraction/Biodiesel project by providing funds to complete the organizational costs and matching funds for grants. Members will have an opportunity to invest a minimum of $10,000 per unit, two units for a total of $20,000. There is no maximum on units.

The coop member will be required to sign a Delivery Commission. The commitment at this time for each member will be 2,000 bushels per unit for a minimum of 4,000 bushels. The member may deliver the soybeans or meet their commitment for a pooling fee of 10 cents per bushel.

A new generation cooperative is a non-profit organization so at the end of the year, the board of directors will establish the amount of funds to remain in the company for operating costs and the remaining funds will be divided between the investors according to the units each investor owns. The feasibility looks good for the facility.

Corn production has increased in the area in recent years, largely due to the premium paid at the feed processing plant. Prices for corn are higher in this locality than any where else in Missouri. Wayne does not expect the acres of soybeans will increase, however the producers will get some premium. The facility will buy only from members.

It will take several months to get it fully in operation. The board has done a great deal of planning. They have toured a similar plant in Brewster, Minnesota. The local plant will provide 34 jobs when it gets into operation.

Wayne suggested that "farmers have an opportunity to help themselves and their community. They need to be open minded about it."