Utah agribusiness does more than put bread and butter on the table.
According to the findings of the Governor's Task Force on Agribusiness Development released Thursday, the industry provides $2.37 billion in agribusiness-related economic activity each year. The industry employs 102,000 workers and provides $1 billion in wages annually."Agriculture/agribusiness is a major player in the Utah economy," said task force chairman C. Booth Wallentine, executive vice president of the Utah Farm Bureau, in a press briefing at Smith Food and Drug Center Inc.'s ice cream plant.
The 20-month study concluded that Utah's agriculture industries must become more market-oriented. "We're living in a global economy. We can no longer limit our sights to just Utah," Wallentine said.
Farmers need to know which crops are most marketable, what consumers want and diversify their operations to meet those needs, Wallentine said.
Hay, for instance, is the state's leading cash crop. Utah producers need the technology to double compress hay bales so more of the product will fit in shipping containers sent abroad.
The 16-member task force also recommended that agribusiness forge more partnerships with universities and research labs such as the Centers of Excellence programs.
"Utah agribusiness will gain a competitive edge by commercializing products that come out of our universities," Wallentine said.
Agribusiness must have better access to capital, according to task force findings. Many agribusinesses cannot launch operations or expand because of limited access to capital resources.
The task force has proposed the development of a quasi-government Utah Agribusiness Finance Authority, modeled after the Utah Technology Finance Corp. The group also recommended creating an agribusiness revolving loan fund to meet the capital needs of new agribusinesses in and outside the state and existing businesses that want to implement new technologies.
Lastly, the group recommended that Utah establish a positive agribusiness regulatory environment.
Livestock producers need reasonable access to public lands. While access has been adequate in the past, wildlife and environmental organizations are pressuring government agencies to curb grazing opportunities, Wallentine said.
Government must also work to develop uniform quality standards for agriculture products so that Utah producers will grow or raise products that meet national standards.
The task force recommended that the governor implement a Utah Agribusiness Council to oversee implementation of the task force's findings. Gov. Norm Bangerter said he will consider that suggestion carefully.
In the meantime, Bangerter will forward the report to the Utah departments of Agriculture and Community and Economic Development for further consideration.