By ANN HINCH
Assistant Editor

MUNCIE, Ind. — In its first-ever “Agriculture in the 21st Century” conference, WorkOne – an umbrella for several Indiana economic- and job-minded agencies – wanted speakers to inspire attending farmers to help determine their future local economies.

Rather than react to whatever factory is available to woo, economist Mark Drabenstott encouraged rural Indianans to decide how they want their counties and the state as a whole, to grow in response to global demand and concentrate on making that happen at home.

“There are farmers deciding whether to buy the farm across the street – or the farm in Brazil,” he said. “Globalization has turned our economy into a 24/7 Olympics.”

With his background in the Federal Reserve, native Indianan Drabenstott has both a local and international perspective on jobs.
He pointed out between 1994 and 2004, all but eight of the top 310 fastest-growing counties in the United States – with three-quarters of all new jobs – were in or near metropolitan, coastal areas.

Traditional farm states like Iowa and Indiana fell on the low end of this. If the state sticks to mostly manufacturing and commodities the way it has for so long, Drabenstott explained there’s a good chance more jobs will go away, since both are known for consolidating to replace human labor.

“We don’t need all of you to keep producing,” he said.

He encouraged farmers and other citizen leaders to think about a regional strategy, rather than concentrating on only their county of residence – a mindset, he said, which usually involves “trying to recruit a factory … and giving away the farm to get it.

“You all play this game,” he said, “and you all lose in the process, I think.”

He then suggested regional governance of such a plan. He was quick to point out this is not “government” and, in fact, that governmental entities might not be the best leaders in this case. He suggested seeking leadership from regional universities, nonprofit agencies and even well-known individuals.

Drabenstott’s next point was of action – to find ways to fund ideas and encourage their development. Again, universities and colleges are ideal because they may already have research to help.
The golden goose?

One obvious question for Drabenstott was whether he believes Indiana’s future is secure in ethanol and corn production.
While he didn’t expressly negate the idea, neither did he give it a ringing endorsement. He cautioned farmers against treating it as “the golden goose,” since there may come a time when it can be produced in greater quantities with a cheaper commodity such as switchgrass (cellulosic ethanol).

If it can be made more efficiently with something like grass or sugar cane, even if it’s imported, he pointed out consumers won’t necessarily care where their ethanol comes from so long as it’s affordable. Purdue University is conducting cellulosic research, and he advised farmers to carefully follow it.

As an example of regional cooperation, Drabenstott pointed out eastern Indiana is within half a day’s truck drive of eight major metropolitan areas featuring 26 million people in nine million households. Farmers across counties could band together to produce locally-branded specialty foods to market to grocers and restaurants.

The market for organic fruits and vegetables has gained foothold and grown, he said, as a result of people being more health-conscious in the past several years. Yet, only half of one percent of all American cropland is used for such production.

“You need to grow what you sell, not sell what you grow,” he explained. “That is a huge change in culture.”

For now, though, ethanol is some farmers’ best bet. Tom Chalfant of Parker City, Ind., grows corn and beans and is one investor in the new Cardinal Ethanol, LLC plant under construction in Winchester, Ind.

He explained it’s “a good hedge” because farmers can make money right now either off selling corn or the ethanol itself – or, as in his case, hopefully both. While he doesn’t refute Drabenstott’s idea about the specialty foods, he said there’s much more involved in doing business that way than simply growing and selling corn.

“When you sell corn at the elevator, you’re done,” he explained. “But when you sell a product with your name on it, you’re going to keep going back, you’re going to have to solve problems, you’re going to have to market, you’re going to have to apologize, and so forth.”

Eventually, he believes the ethanol plants being built will probably be bought out and consolidated. He does like Drabenstott’s idea that schools ought to be training people to work for themselves instead of for someone else. “It all makes sense,” he said of the economist’s suggestions, “but it’s all pretty theoretical.”

Another problem is getting past politics and even laws. “We’re governed by so many statutes and rules and laws, that a lot of what you’re proposing just isn’t feasible,” Phil Estridge, a Henry County commissioner, said.

Beyond borders
Drabenstott said he understood limitations on elected officials wanting to help their region grow, but named off some examples of it being done elsewhere in the country.

He warned that Indiana might have another five or 10 years before loss of manufacturing jobs really wears on the state. He believes leaders should use that time “to go someplace else” in terms of consumer and market focus.

“Who’s in the same economic boat with you?” he suggested as a starting point for forming regional partnerships.

David Terrell, executive director of the state Office of Community and Rural Affairs and another speaker at the conference, agreed.

“Each community needs to know what (it’s) about,” he said.