The State of Agriculture in the Midwest

24 Oct 2017
The State of Agriculture in the Midwest

Eide Bailly LLP,Gislason & Hunter LLP, and Profinium partnered in July to host “The Financial Future of Agribusiness” conference in Mankato, Minnesota. This conference provided a platform for local ag professionals to present a variety of sessions related to the industry. 

Topics included: 
* Succession and estate planning
* Employment and insurance law
* Technology and cyber security
* Health concerns and foreign diseases
* An array of other subjects related to agricultural operations and financial strategies

GreenSeam, a local organization promoting agriculture, also gave a thorough presentation discussing economic growth of ag in the region, as well as highlighting the many agriculture businesses in the area and discussing how they are taking part in the global market.  

‘Silicon Valley of Ag’
The “GreenSeam” region is an agricultural epicenter that includes the neighboring states of southern Minnesota and northern Iowa, and has its name for a good reason: The ag industry in this area has an industry concentration of nearly four times the U.S. national average. This region boasts nearly 1,000 ag-related businesses, and out of these 194 are food manufacturing companies, including some well-known names like All American Foods, Del Monte and Kraft.  The rest of the businesses are non-food manufacturers, professional services firms, research and development organizations, retailers, utilities, and other specialized services. With such a wide variety of agriculture resources, it’s clear why this region has been referred to as the “Silicon Valley of Ag.”

The GreenSeam has seen a climb in economic growth over the years, and has a civilian labor force of 346,857 and participation rate of 68.3 percent, which is higher than the national average of 62.8 percent. Here, 23 percent of employment in the region is tied to agriculture as well, which is more than any other sector. In the last year, $500 million has been invested in the region, and much of that was fueled by ag-related businesses—one in three dollars of real economic value in the GreenSeam is tied to agriculture. The GDP for the region expanded by 4.6 percent in 2016, continuing the upward trend after a 1.9 percent growth in 2015. 

More Than It Seems
It’s clear that agriculture is doing well in this slice of the Midwest, and the people living in the GreenSeam are clearly passionate about the industry. Agriculture is more than just fields, crops, and livestock; it’s complex business, economic fuel, and a general way of life. And as the thriving companies of this region continue to make their way into the global market, partnership opportunities will continue to arise. 

A Passion for Success
Eide Bailly has a dedicated team of professionals who focus exclusively on the ag industry. Many of our ag team members have an agricultural background, whether currently farming or having grown up on farm, so we understand the business and have a passion for agricultural success—because we’ve been through our fair share of harvests. Our firm provides a variety of services and business advice to ag-related businesses, including domestic and international tax planning, consulting and accounting services, specialized tax incentives such as research development credits, Farm Service Agency (FSA) program management, and financial services. 

Our knowledge of the industry along with the high concentration of ag resources in the GreenSeam region continue to attract new companies to Eide Bailly on both a local and global scale. If you or any of your clients are interested in learning more about the GreenSeam and our part in it, please give our ag services team members a call.  We would be happy to discuss how we can help you or get you connected to the right resource. 

Article by Bryan Ross, CPA, Partner and Duane Thompson, CPA, MBT, Partner at Eide Bailly,members of HLB's Agriculture Group. Contact Bryan at This email address is being protected from spambots. You need JavaScript enabled to view it. and Duane at This email address is being protected from spambots. You need JavaScript enabled to view it. 

 

 

 

 

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