JEFFERSON CITY -- As more and more Americans join the low-carb craze, some Missouri farmers are looking to profit from the popular diet that experts say isn't going away anytime soon.
"I've talked to people in the food industry and the carb craze is similar to a lot of the lowfat trends in the late '80s and early '90s -- they've really gone beyond more than three to five years," said Alex Stemme, director of identity-preserved products for the Missouri Soybean Association.
For more than a year, 10 farmers from across the state have worked to take advantage of two major forces in the U.S. food industry: low carbs and soy.
Dubbed 1Soy Inc., the group has created a chance for Missouri farmers to invest and own a manufacturing facility in the soy foods industry, which has grown from $400 million in 1997 to nearly $4 billion in 2003.
"The low-carb diet is not just a trend," Stemme said. "It has more staying power and consumers are focused on it." 1Soy Inc. plans to construct and operate a manufacturing facility west of St. Louis to create high-protein, low-carb soy ingredients and finished soy products, which are in high-demand.
Finished soy products primarily include soy snacks such as the energy bar products and any weight loss products, Stemme said.
"A lot of farmers can pick up a farm magazine and read how soy is used as a food ingredient. With 1Soy, we're really taking soy to the next level. This is a change for farmers to get a piece of the value," Stemme said.
One of the unique things about 1Soy is that farmers from all over the state have the opportunity to be involved, Stemme pointed out.
"I think it's important for farmers to be proactive outside of their own farming," commented 1Soy Chair Britton Ferrell, who is also a farmer from Charleston. "It's a risk, but with farm prices like they are today, it's less of a risk to venture some capital."
Soybeans used at the 1Soy facility will primarily come from Missouri farmers, Stemme said. The facility would employ 30-40 people and 1Soy also plans to incorporate a soy flour facility, which would also employ another 30-40 people, Ferrell said.
Giving the venture an added boost, 1Soy was approved by the Missouri Agricultural and Small Business Development Authority for $1.5 million in state income tax credits, providing the opportunity for farmer-investors to receive a tax credit for 50 percent of their investment in 1Soy, up to a maximum of $15,000.
Farmers who join 1Soy will own 54-55 percent of the joint entity and will be paid a dividend at the end of the first year, Ferrell said. Currently 1Soy has commitments on more than 80 percent of the shares and intends to close the membership drive at the end of the month.
But according to Ferrell, membership is somewhat lacking in Southeast Missouri.
"I consider the Bootheel to be the prime agriculture area in Missouri, and we have investors from here -- don't get me wrong‚ but there are some who haven't come forward," Ferrell noted.
And there are different reasons for farmers choosing not to capitalize in 1Soy, Ferrell said.
"Maybe they've tried it before and got burned, or they're just comfortable with their own farming practices," Ferrell theorized. "Other areas around the state have to do something like this, but some farmers in the Bootheel don't feel the need to venture out."
For farmers who have opted to support 1Soy, one the major deciding factors was the business model, Ferrell said. The volunteer board of farm-leaders completed a feasibility study and business plan to create the farmer-owned cooperative. The model shows a successful business emergence of low-carb diets and incorporates the use of soy, he explained.
While the future of 1Soy appears to look bright, both Stemme and Ferrell would like to see more farmers join.
"This is an opportunity that doesn't come along very often," Stemme said. "Everything is lined up. Our objective is to finish the membership drive at the end of the month, and then we can move forward."
For more information about 1Soy, contact Ferrell at (573) 683-3320 or Stemme at (573) 635-3819, or visit the Web site: mosoy.org and click on "Empire Builder."