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Agriculture Marshall Plan Study Tours to the USA Organized by the Center for Economic Initiatives Background Growth in agricultural productivity is central to development. For transitional or developing countries, agricultural productivity, distribution and cultivating markets are crucial to reaching a stable economy until industrialization matures. Increases in agricultural productivity allow workers to move into other areas of the economy where the output per worker is substantially higher. Sector shifts caused by increased agriculture productivity represent 29 percent of GDP growth in developing countries. Poverty in many nations is directly linked to low agricultural productivity. This program targets economic development and the Rule of Law. CEI has organized both grain processing and livestock study tours. “Knowledge – and the power to harness its opportunities – is now recognized as a major driver of the development process in the global economy.” USAID report of Future Directions for Agriculture How can a CEI program help? A CEI agricultural study tour to the U.S. provides hands-on learning experiences in all segments of agriculture including modern management techniques, products, technologies, equipment, organization, methods, and marketing and distribution systems for farms and production facilities. These enable product costs to be lowered, infrastructure strengthened, and more efficient use of existing facilities and manpower. The CEI tour promotes growth and knowledge through visiting working plants in the U.S., talking to experienced industry managers, and seeing and discussing with industry leaders what works and why. It provides an opportunity to learn how to compete in today’s markets, and where global industry trends are taking the agricultural community. What will they see? Study tours are designed to acquaint participants with a detailed operational overview of the most productive farms and agricultural production in the U.S. They will see and examine the procedures and practices used to achieve the highest yields from crops and livestock/poultry while lowering their production costs. Agricultural producers will see procedures, methods, and process improve- ments that allow them to achieve a higher level of throughput while significantly reducing costs. In most cases, the programs stress a more effective use of existing resources rather than focusing on a need for increased capital spending. Topics to be covered include Modern farming techniques (No-till/low-till techniques, use of pesticides and fertilizers, implementing technology, reducing infant livestock fatality rates, etc.) Developing affordable agricultural credit systems Developing wholesale and retail markets for moving agro-based products. Developing value-added agricultural based industries Developing agricultural extension services by providing crop protection, fertilizer, seeds, insecticide, pesticide and educational material to farmers How to measure and increase yields with lower costs and offsetting investments Shortening time-to-market Marketing practices and advertising programs Modern storage, transportation, distribution and crop preservation methods Sanitation & environmental requirements and solutions Expected Benefits Reduced production costs Self-sustaining farming techniques Improved product yields and quality Improved labor management Increased revenues and profits Where will the study tour travel? The study tour will travel throughout the agricultural heart of the United States, visiting crop, dairy, livestock, and poultry farms as appropriate. Research & Development facilities with special emphasis on products/procedures to reduce infant livestock fatality, improved feed mixes, and environmentally friendly, low-cost productivity measures, will add to the value of the study tour. Example Benefits from Ukraine Study Tours Cumulative productivity increases from the 32 participating Ukrainian farms generated the following first-year benefits: Milk production increased 21.6% Beef Production increased 18% Pork production increased 57.5% Poultry production increased 50% Livestock mortality rates decreased 12% to 1% 40% percent reduction in fuel costs from the introduction of low-till techniques Grain yields increased 25% Farm labor was streamlined an average of 35% and shifted to production jobs in food processing. Average farm employee earnings increased 30% above the Ukraine minimum wage. CEI has conducted programs in grain and livestock production. The following examples come from that experience. Number of Crops For many years, Ukrainian farmers had been told by the government that it was necessary to grow about 17 different crops. One reason was that the local governments had quotas for each crop and were not used to letting the market determine the amount of land to be devoted to each crop. When traveling though the U.S. Midwest, study tour participants were shocked to see field after field devoted to corn and soy. They did not see other crops although presumably some were being grown. They realized that if they could reduce the number of crops they grew, they would no longer need the variety of equipment, seeds, fertilizers, herbicides, and skilled technicians. In short, they could reduce their costs, improve productivity, and increase profits. This approach is now being used by several participants. Shortening the time-to-market Every farmer knows that the faster he brings pigs, chicken, and cattle to market weight, the sooner he will get paid. On the study tour the participants were able to discuss and see improved methods that are used in the U.S. which were the result of improved animal feeds, vitamins, and the use of feeds such as soy and alfalfa. Reducing production costs with no-till planting Farm leaders visiting US farms are shocked to learn that little or no plowing is done prior to planting some crops. They are used to deep plowing where the soil was turned over to a depth of about 1 foot. In some cases this required making multiple passes over the fields and exposing dormant weed seeds. U.S. farmers were using either low-till planting where the soil is disked to a depth of a few inches, or no-till planting where the soil is not turned over at all. Ukrainians could not believe the no-till practice until taken out into the fields where they could see for themselves. The reduced amount of plowing resulted in tremendous savings in fuel and manpower. Just by using low-till methods they could save about 30% of their fuel costs. No-till farming resulted in savings of 50-75%. Labor costs were also reduced. Of course no-till farming requires new or modified planters, but some farmers were able to devise their own equipment. One offsetting cost was the greater need for herbicides.