Viewpoint
by Don Copenhaver

MFA’s district meetings: A great place to discuss topics and interact with MFA management

Each year, MFA Incorporated holds district meetings in late February or early March. These meetings are excellent forums for producers and the management of MFA to interact. Two key items were especially popular this spring and are worthy of bringing to the attention of those of you who were unable to attend: 

Elections
Let me sincerely welcome four newly elected members and one incumbent to the MFA Incorporated board of directors. I’d also like to thank all who ran for a board seat. I appreciate the interest and desire to participate in the direction of your cooperative. 

• David Callis of Sedalia, Mo. (District 8), farms row crops and keeps a cow/calf herd. He’s been a member of MFA since 1991. 

• Julius Fraley of Houston, Mo. (District 13), farms 1,780 acres of pasture and keeps 230 cows. He’s been a member of MFA since 1973. 

• Barry Kagay of Amity, Mo. (District 1), farms 2,200 acres of row crops. He keeps a 200-head cow/ calf herd and feeds about 1,600 calves. He’s been a member of MFA since 1982. 

• Tim Lichte of Lexington, Mo. (District 5), was re-elected to the board. He farms 800 acres of row crops and has been an MFA member since 1972. 

• Carlton Spencer of Faucett, Mo. (District 4), farms 2,000 acres of row crops, 16 acres of tobacco and keeps a 45-head cow/ calf herd. He previously served on MFA’s corporate board from 1979 to 1995. 

Fertilizer prices Fertilizer prices have gotten everyone’s attention this year. And for good reason. All of us are seeing record prices. Why? World fertilizer demand continues to increase. From 2001 to 2006, the world’s demand for fertilizer has grown by an amount equal to the entire U.S. market. Think of that! In just 5 years, the industry has added a market the size of the United States. Market analysts expect that same growth to occur again in the next 5 years. 

What’s driving this? Population growth, the biofuel push and the declining value of the U.S. dollar. 

Today’s world population is 6.7 billion. The United Nations projects an increase 1.1 billion by 2020 and a total population of 9.2 billion (a 40 percent increase from today) by 2050. 

To date, the government has mandated 13 billion gallons of ethanol by 2010. This will account for more than one-third of the 13.8-billion- bushel corn crop expected by the end of the next decade. 

And as each and every news report reflects, the U.S. dollar has dropped to historic lows. Simply put, the dollar buys less. For a variety of reasons, most product is sourced overseas. 

Add in escalating costs of fuel. All of this adds up to higher carry costs, additional interest costs, increased risk, more warehouse space, higher transportation and increased production costs. 

For grain farmers, positive news is reflected in the included chart contrasting the fertilizer market and corn futures. Even with today’s fertilizer prices, rising grain prices are showing a positive tradeoff. As buyers of corn and fertilizer, livestock producers have a different perspective.

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