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After college I wanted to see
who my competition was as a producer from NW MN. Soybeans were not
of a particular concern at that time back in 1994. I joined a group from North
Dakota and Minnesota. We toured southern Brazil and then a region to the
west of Buenos Aires, Argentina. At the time I was more impressed with
Argentina. Their soils were black and fertile. They were growing 1st crop
soybeans followed by 2nd crop wheat. They were using very little fertilizer.
I became aware very quickly that we must be lean and mean in order to
survive in the global environment of bulk commodity production.
In 1996 I traveled to New Zealand and Australia on a similar type Farm Tour.
I enjoyed the hospitality of the KIWIs and made friends with
many Australian kangaroos. I only saw a small portion of Australia; however,
I quickly realized that they had adapted to the lean margins
of producing wheat and other commodities in a global marketplace.
When the Top Producer magazine came to my mailbox back in the summer of 1998
and it had a picture of a former North Dakota farmer
that had moved to Brazil in search of cheap land and opportunity, I again
became intrigued with Brazil. The 1st things that came to my mind were:
- "How do I get there?”
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"Where is Bahia?"
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"Are there roads?" -
"Who will help me when I get there?"
The thought of going to visit the “NEW Frontier” of Brazil seemed so
impossible at the time. A trip to the MOON seemed closer and easier to make.
The next two years I continued to research and keep my ear to the ground of
who could assist me on a tour of these new production areas on the planet.
As fate would have it, I found a guy from Minnesota that was taking small
groups to Brazil each year. Let us just say, life has not been the same
since.
January 2001, I joined a group of dynamic producers and businessmen on a trip
to Mato Grosso. I had
no idea where I was going. How does one get to Cuiabá? What will the hotels
be like? Will we like the food? Will the locals be open to us visiting them?
The simple answer to all of the above was : NO PROBLEM.
The Hotel in
Cuiabá
was outstanding in this city of 750,000 people. On Day 2 of our
excellent adventure we all got into vans and headed north to the frontier. We
traveled through a small mountain range and about 3 hours of small farms of
pasture and livestock. I was asking myself, “Are there any soybeans out
here?” Then all of a sudden we were on top of a level plateau. You could
look all the way to the horizon. It was an ocean of GREEN. Soybeans as far
as you could see. Hour after hour passed as we traveled along an asphalt
road called
BR 163. We were all in shock. All this land has been cleared in the past
10 years? We can buy it for how much per acre? They grow two crops per year
here? That is too cheap we all told ourselves. They can grow soybeans here
for $2.80/bushel? Can this be true? If so I am screwed in NW MN. All of
these questions were bouncing around in my head.
We had several nice visits with local farmers, businessmen, and community
leaders. Some spoke English. Some had studied in the USA.
The thing that I found so energizing was their optimism. Everyone was so
positive and pro-growth. This was a turbo-charged Ag Economy. This was
exactly the opposite of my region in NW MN. The ag economy was slowly dying
and other industries were supplying jobs for the local population. In
central Mato Grosso, producers were clearing “TENS” of thousands of acres
per year to be brought into production, meanwhile in the USA, they were
putting “Tens” of thousands of acres per county into the CRP program to take
land out of production. What is wrong with this picture I asked myself?
It was the rainy season when we visited so there was no land clearing during
this time. I told myself, I must come back in the dry season to see how they
can clear these large trees and bring land into production in an 18 month
timeframe. I had cleared land in Minnesota, it seems like it takes 10 years
before one can say he is done with a project. To get a new piece of ground
“perfect”.
Later in 2001 I returned to the same area during the dry season. I was
shocked and awed by the rate of development taking place. When I saw with my
own eyes how TWO D-7 caterpillars could lay down 80 acres of trees per day,
I was completely amazed. I had learned that hundreds of caterpillars were
working in the forest at any given moment. |