Farm News
12-13-06
Study: More livestock will help economy
By Kristin Danley-Greiner, Farm News staff
AMES — A new report released by Iowa State University shows that there exists
excellent potentialî for further growth in the state’s livestock sector, resulting in
more jobs and higher cash receipts.
ISU’s department of animal science conducted a yearlong “visioning exerciseî” to
evaluate the current status of animal agriculture and identify any potential
opportunities for growth. Approximately 40 representatives were involved to
cover the six livestock categories of beef, dairy, pork, equine, poultry and
sheep/goats in the report titled “A Vision for Iowa Animal Agriculture.î”
Maynard Hogberg, animal science department chair and professor of
animal science, said the study and report came about after recent research
conducted by the ISU Department of Economics stressed the important role of
livestock in adding jobs and raising the economy in rural Iowa.
“From there, we thought we needed to look at the opportunities for growth, what
are the constraints to any growth and if growth occurred—in terms of Iowa
producing a greater share of the U.S. production—what are the rewards or
benefits,”î Hogberg said. “There didn’t seem to be a common vision of where the
livestock industry was going and what rural Iowa would look like in 10 to 20
years. Hopefully, with a vision, we can help people see what rural Iowa could
look like and help us direct our research and Extension programs to this vision.Ӕ
Iowa State’s Center for Agricultural and Rural Development evaluated the
number of hog or cattle finishing spaces needed to fertilize crops per section of
cropland for the report. Using sound agronomic practices and environmental
regulations, researchers determined if Iowa’s 36,000 sections of cropland were
planted in a corn-corn-soybean rotation under a phosphorus standard, it would
take all the hogs and 80 percent of the fed cattle in the United States to generate
adequate nutrients for the crops. Iowa currently has approximately 26 percent of
the nation’s hogs and 6 percent of fed cattle inventories.
John Lawrence, director of the Iowa Beef Center and ISU Extension livestock
economist, said nearly 10,000 new jobs, both direct and indirect, would be
created if the growth projections outlined in this report are reached. Plus, cash
receipts would be $9.705 billion and total economic activity would be $21.2
billion, Lawrence said.
The report noted that Iowa’s beef industry marketed 1.38 million fed cattle in
2005 and had 1.05 million beef cows at the start of 2006. In part due to the
growing supply of co-products from ethanol production, fed cattle marketings
have the potential to increase 50 percent by 2016. Ten percent growth in beef
cowherds also is expected.
In 2006, Iowa’s dairy cows produced 3.79 billion pounds of milk. By 2016, it’s
estimated that could increase to 5.64 billion pounds, a 50 percent increase in
milk production through increased productivity and cow numbers.
At the beginning of 2006, Iowa’s pork industry included 1.07 million sows and
15.33 million finishing pigs. By 2016, it’s estimated those numbers could increase
to 1.23 million sows and 16.86 million pigs. This would mean a 15 percent
increase in the breeding herd and a 10 percent increase in finishing pigs.
In 2006, Iowa’s poultry industry included 51 million laying hens and 9.6 million
turkeys. By 2016, it’s estimated those numbers could increase to 70 million
layers and 13.5 million turkeys. This would be a 37 percent increase in laying
hens and a 40 percent increase in turkeys.
In 2006, Iowa’s equine industry included 200,000 animals. By 2016, it’s
estimated that could increase to 240,000, a 20 percent increase. In 2006, Iowa’s
sheep and goat industry included 34,000 goats and 132,000 sheep. By 2016, it’s
estimated those numbers could increase to 88,200 goats and 182,000 sheep.
This would mean a 160 percent increase in goats and the addition of 50,000
ewes to the state’s sheep flocks.
All types of producers could play a role in bringing this envisioned expansion to
fruition, said Wendy Wintersteen, dean of Iowa State’s College of Agriculture.
“I believe there’s opportunity here for a diverse set of producers and operations.
Also, the opportunity is great for enticing young people back to the land through
many different kinds of production and marketing ventures, whether it’s pigs,
horses or sheep and goats, as the report details,Ӕ she said.
Some parties have expressed concern about expansion in the state’s livestock
sector, based upon environmental and health concerns. Hogberg said the report
mentions that while there is still potential growth given the state’s large land base
and crop acreage, it also mentions that any growth must still solve the issues
associated with air and water quality.î
“The EPC recommendation to ban liquid manure application to soybean ground
is not based on science. Still saying that, there will need to be new technologies
adopted that will change how we store and process manure if we are to do more
to reduce odors, gas emissions, etc.,î” Hogberg said. “Likely, there will be
processes put into place that will rely more on soil amendments that add organic
matter and nutrients to the soil to meet crop production needs.
“There is a window of opportunity to expand the beef and dairy industries in the
state by feeding by-products from the ethanol industry,î” he continued. “If
appropriate systems of manure storage and application are used, these will play
a major role in substituting nutrients for crop production and enhance the soil by
increasing the organic matter to the soil. Right now, the largest obstacle to
expansion of the livestock industry will be the price of corn. We really need to find
a way to make the ethanol production and livestock industries a win-win
situation.î”
Lawrence said the report provided an opportunity to look at livestock and poultry
production in Iowa and its potential from a broader perspective,î not just from a
problematic point of view.
“It seems that much of the press and discussion about animal agriculture is
focused on siting issues for a particular facility. While those decisions are
important to a prosperous livestock and poultry production that is accepted in
communities, this report looks at the role and the potential animal agriculture has
in Iowa. If it is important, which we believe it is, then we must find ways to
address the concerns associated with livestock facilities,Ӕ he said.
Other key points out of the report are:
n Iowa has the capacity to increase all animal agriculture species grown in the
state.
n The economic impact of increasing animal agriculture in Iowa is tremendous.
n Adding value offers some of the greatest opportunities for growing Iowa’s
animal agriculture industry.
n The implementation of information-driven, consumer-focused quality control
programs for each species is critical.
n Iowa’s animal agriculture industry must protect the state’s water, air and soil.
n An adequate labor supply is needed to grow Iowa’s animal agriculture industry.
n Innovative business models and support networks are needed that will help
producers manage risk and attract new capital.
n Iowa State University will play a key role in future growth of the state’s animal
agriculture industry.