Missouri Department of Agriculture
Ag Business
Development Division

P.O. Box 630
1616 Missouri Blvd.
Jefferson City, MO 65102
(573) 751-4762
Toll-free: (866) 466-8283
Fax: (573) 751-2868
abd@mda.mo.gov
Hearing-impaired Missourians
can contact the department
through Relay Missouri,
(800) 735-2966 (TT/TDD).

Programs Assisting Small Farms

Agriculture Business Development Division

From idea to implementation, the Agriculture Business Development Division, housed in the Missouri Department of Agriculture, can help you start or expand your agriculture-related business. Call us at (866) 466-8283.

The Missouri Agricultural and Small Business Development Authority

Missouri Value-Added Grant Program
The purpose of the program is to provide grants for projects that aid in the economic development of Missouri’s rural communities by adding value to agricultural products through the development, processing and marketing of new or expanded uses for products. The grants are intended to be used for activities prior to business start-up or expansion, such as feasibility studies and marketing or business plans.

Missouri Value-Added Loan Guarantee Program
The program provides up to a 50% first-loss guarantee on loans not to exceed $250,000 that lenders make for the purpose of an agricultural business development loan. These loans will benefit Missouri’s farmers through the creation of value-added agricultural products by creating new uses, new markets or further processing of these agricultural products or assist in developing farmer-owned cooperatives for further processing of agricultural products. Land, building and equipment may be guaranteed as well as the purchase of stock in farmer-owned cooperatives involved in processing agricultural products. Borrowers qualifying for this loan may also qualify for the MISSOURI FIRST Linked Deposit Program with the state treasurer’s office.

Beginning Farmer Loan Program
The program helps beginning farmers in Missouri acquire agricultural property at reduced interest rates. Through the issuance of “Aggie Bonds,” lenders receive a federal and state tax-exemption on interest earned on loans made to beginning farmers. The tax savings are passed on to beginning farmers in the form of lower interest rates.

Single-Purpose Animal Facilities Loan Guarantee Program
The Single-Purpose Animal Facilities Loan Guarantee Program provides a 50 percent first-loss guarantee on loans up to $250,000 that banks and other lenders may make to independent livestock or earthworm producers. Borrowers qualifying for this loan may also qualify for the MISSOURI FIRST Linked Deposit Program with the state treasurers’ office.

Animal Waste Treatment System Loan Program
Through this program, independent livestock and poultry producers can finance waste treatment systems at below conventional interest rates (currently 5.6% fixed interest). Loans may be made only to livestock operations with less than 1,000 animal units. Processors or collectors of animal waste or dead animals may also qualify for a loan if their operation does not require a point source permit from the Department of Natural Resources.

For more information on these programs, call (573) 751-2129.

Market Information and Outreach Program

Market News Service
Small farmers need an unbiased, reliable, accurate and timely source for agriculture market news to remain competitive and assist them in making wise and profitable marketing decisions. Our market news service guides producers in production planning and provides a more even playing field in the marketplace. To reach more customers with up-to-date market information, we publish daily livestock and grain market reports on the Internet and publish a Weekly Market Summary.
Contact our Market News Editor.

Agricultural Commodity Groups
Many small farmers have a voice in our agriculture industry through membership in a commodity organization. We recognize 52 established commodity groups in the state and provide them with marketing and promotional assistance.
Contact our Market Information and Outreach Manager.

Outreach and Education
The Outreach Program is involved in various activities designed to educate farmers and consumers about agricultural production and marketing as well as the department’s services. Examples of these activities include the Missouri Youth Livestock Grading and Judging Contest and activities at the Missouri State Fair including AgCitement and the Livestock Carcass Shows. We also exhibit at numerous agricultural trade shows and fairs.

In addition, the Missouri Agribusiness Academy helps to educate and prepare Missouri youth for careers in rural Missouri and agribusiness.

Livestock Quality and Marketing Assistance

The program works to educate producers about opportunities to improve overall quality of livestock in Missouri, and works with partners to educate producers about the importance and value of livestock quality. Producers have the opportunity to participate in programs such as the Show-Me-Select Heifer program and value-added calf programs.

The division educates producers about livestock marketing opportunities adding value to livestock. The division facilitates value-added sales by providing professional USDA grading services.

Contact our Market Information and Outreach Manager.

Aquaculture
More than 75% of the aquaculture enterprises in Missouri can be considered as small farm operations. We provide small farmers with production and technical information. We also assist with planning the Missouri Aquaculture Association Annual Conference, which provides current information on starting an aquaculture operation, water quality management and marketing aquaculture products. We help people who are willing to invest the work and capital needed to be successful to locate fish farms for sale or establish new operations. We also help small farmers diversify by including aquaculture as part of their farming operation. Markets are available for Missouri-grown, high quality catfish fillets, and regional fish processing is being developed that will enable Missouri producers to penetrate these markets. Markets are also good for trout, tilapia, perch, hybrid striped bass, bluegill fillets. More competition exists among producers for fingerlings for pond stocking, baitfish and ornamental fish. Although markets for these products and services are tight, these operations can still be successful with the proper marketing strategy.
Contact our Aquaculture Specialist.

Specialty Crops
Many specialty crops are grown on small farms. We strive to offer alternatives to traditional crops grown in the state, and in many cases, with less land and capital intensive methods than those traditional crops. This may allow young farmers to start in agriculture or allow another generation to come back to the farm. We promote exports of specialty and identity-preserved crops, which provides small farmers the opportunity to diversify their production. Furthermore, many specialty and identity-preserved crops are contract-grown, providing a more secure source of income than regular varieties of crops.
For more information, contact: Mark.Murphy@mda.mo.gov.

International Marketing
The export assistance we provide to Missouri producers, farmers and agribusinesses often does not directly touch small farmers, but there is a trickle-down effect. For example, we provide export assistance to a Missouri grower, contractor and processor of popcorn. Our assistance has led to popcorn exports, which benefits the owners, employees and contract farmers (many of whom are small farmers).

We provide assistance to Missouri producers to export lumber. Much of the lumber Missouri exports originates from small farms. By promoting exports of forest products, we increase the demand and the price paid for standing timber. This helps small farms by diversifying their sources of income and enabling them to earn income from land, which is not suited for other types of agriculture. Large and small farmers benefit from the assistance we provide grain companies in expanding markets, primarily in Mexico.
Contact our International Marketing Specialist for information on exporting lumber and grains.

We directly assist purebred swine producers, purebred beef cattle producers, purebred sheep producers, horse producers and replacement dairy cattle producers with export sales. In addition, we cooperate with brokers to increase exports of Missouri livestock.
Contact our International Marketing Specialist for information on exporting livestock.

We provide assistance in exporting feed ingredients. Increased demand for feed ingredients increases the total value of the raw materials used to make such ingredients. In many cases, the feed ingredients are made from animal by-products, such as offal, blood, bone, feathers or whey. Increasing the value of such by-products, increases the price paid to small farmers for their livestock.
Contact our International Marketing Specialist for information on exporting feed ingredients.

Since U.S. agriculture produces far more than we can consume domestically, it is necessary to promote and maintain exports - failure to do so results in lower prices and lower income for all producers. This can be especially important for small farmers, who may be less able to withstand drastic drops in income for long periods of low prices.
Contact our International Program Manager.

Value-Added
There is a growing recognition among small farmers that if they are to boost their economic returns from farming, they need to find ways to earn a greater share of the consumer dollar by adding value to their own products. These strategies can include farmer-owned cooperatives and other business ventures for the purpose of value-added processing, production and marketing of crops and livestock. Our AgriMissouri Programprovides niche markets for small farmers and opportunities to add value to their products. We also provide financial assistance to small farmers/companies to promote and market their products.
Contact AgriMissouri Program Coordinator.

Marketing Cooperatives
Cooperatives can be a way for small farmers to gain economic strength by pooling resources, marketing and buying in larger quantities, and increasing their bargaining power. We provide assistance to small farmers by answering their questions about how to form a cooperative, alliance, or other collective activity. They are provided the basic principles and state regulations, as well as more complex information relative to equity issues, board structure, tax implications and marketing strategies. We also provide export assistance to farmer-owned cooperatives.
Contact our Domestic Program Manager.

Wine and Grape Industry

Our viticulture and enology advisory program provides professional consultation to existing and prospective grape growers and wine makers. The sale of Missouri wine is increasing, but grape production is not keeping pace with demand. A grape grower incentive was first offered four years ago, and continues to help small farmers and wineries defray some of the cost on new grape acres planted. The momentum of the present growth in wine sales and the tremendous potential for increased production of grapes and wine should be capitalized in order to increase employment and profits in agriculture and tourism.
Contact our Wine & Grape Board Coordinator.

Fruits and Vegetables
We assist communities in organizing farmers’ markets. There are more than 110 farmers’ markets in the state. We also serve as a source for production and marketing information for food circles, small fruit growers, peach growers, apple growers and vegetable growers.
Contact our Horticulture Marketing Specialist.

Forage
Missouri was the first state to install a hay hot line in 1988, which provides the state’s small farmers with a direct link to sell or buy hay.
Contact our Livestock & Forage Marketing Specialist.

Financial Assistance
We help vocational agriculture instructors, University Extension specialists, 4-H leaders and banking personnel identify and assist small farm producers and rural youth. Financial assistance is provided in the form of agriculture scholarships, youth crop and livestock loans and alternative production loans.
Contact our Missouri Agriculture and Small Business Development Authority.

For more information contact the Agriculture Business Development Division.

Publications
The Agriculture Business Development Division provides several web-based publications to help small farmers market their products: