May 23, 2012

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Sioux City mayor expresses support for BPI

May 8, 2012 By

Beef Products Incorporated (BPI) won’t reopen the three plants it closed in the wake of the controversy over its finely textured beef product, but the company does plan to keep its Sioux City area plant open. Sioux City Mayor Bob Scott says the news about the other plants is sad for the company.

“We’d all hoped that they would rebound, and I’m hopeful that they will find a solution some day down the road for what’s happened to them,” Scott says. “I think it’s terribly unfortunate. I think what’s happened to that company is just a result of this modern media frenzy that we get into even though the facts are not well grounded. It’s terrible what’s happened, we’re talking people’s jobs, families, lives and that.”

BPI closed it’s plants in Waterloo, Amarillo, Texas and Garden City, Kansas after the product they produce was called “pink slime” and questions were raised about its safety. The governor, U.S. ag secretary, and the Iowa congressional delegation all came to the company’s defense, saying the product has been used for years and is safe.

Mayor Scott says his city will continue to do what it can for the company.”Obviously they’re good for this region, they’ve been good corporate citizens to help fund projects for this community, and it’s just a sad day when something like this happens,” Scott says.

The Waterloo plant employed 220 people. Production continues at the Sioux City plant, but has been reduced.

By Woody Gottburg, KSCJ, Sioux City

Filed Under: Business, News Tagged With: , ,

UNI program helps farmers with business end of markets

May 7, 2012 By

It’s farmers market season and vendors are beginning to make their weekly trips to markets around the state. But, running a business may not come naturally to some small-time farmers. A program this week at the University of Northern Iowa is designed to help these growers learn the basics of selling their products.

Andy Larson is a Small Farm Specialist with Iowa State University Extension. “Farmers are generally people who love to farm. They love to grow things and they love to raise animals. Marketing isn’t always their strongest suit,” Larson says. Iowa has around 230 farmers markets – the fifth most per capita in the country, according to the U.S.D.A.

Larson has been holding workshops around the state for a couple of years. He advises vendors to focus on building a reputation around one or two items and using that to sell other products.

“Diversified farmers and alternative farmers in Iowa are growing such a humongous variety of things that they have a hard time really specializing and becoming known for one thing,” Larson said. More information about this Friday’s workshop in Cedar Falls is available through U.N.I.’s Center for Energy and Environmental Education or I.S.U. Extension.

Filed Under: Agriculture, Business, News Tagged With: ,

“Iowa’s Best Burger” found in Coon Rapids (audio)

May 2, 2012 By

Coon Bowl burger

A diner and bowling alley has landed this year’s title for “Iowa’s Best Burger.” The award is handed out annually by the Iowa Beef Industry Council and Iowa Cattlemen’s Association.

Listen to Pat Curtis report (runs :50)

This year, judges selected The Coon Bowl III in Coon Rapids. Cindy Heydon, co-owner of The Coon Bowl, says their half-pound burgers are basic. “We actually don’t do anything to them,” Heydon revealed. “We don’t salt them. We don’t mix anything into the hamburger. Nothing. Just a plain old hamburger on the grill.”

Judges noted the “juiciness” of the champion burger. Heydon credits the 80/20 blend of ground Iowa beef and the use of a flat-iron grill for the juicy factor. She also credits a loyal, local customer base for nominating her business for the award. “And I have people who travel through here who will stop more than one time…they come back,” Heydon said.

The Coon Bowl dining area can seat around 80 patrons. The business also features an eight lane bowling alley and a small game room. The basic burger at The Coon Bowl costs $4. The most expensive burger, the bacon cheeseburger, is just $4.80.

The other top ten finalists for this year’s top burger award were the Ankeny Diner, Ankeny; Drake Diner, Des Moines; Farmer’s Kitchen, Atlantic; Ferg’s Lounge & My Tighe’s Restaurant, Grand Junction; PerXactly’s Bar and Grill, Maquoketa; Rosco’s, Norwalk; Rube’s Steakhouse, Montour; Sac City Bowling Center, Sac City; and The Ritz, Arnold’s Park.

This marked the third year for the best burger contest. Last year’s winner was The Rusty Duck in Dexter, while Sac County Cattle Company of Sac City won the inaugural event in 2010.

Filed Under: Agriculture, Business, Featured Story, Human Interest, News

Iowa Student Loan subsidiary now servicing loans nationwide

May 2, 2012 By

The nonprofit Iowa Student Loan has started servicing federal student loans from across the country through its for profit subsidiary. Iowa Student Loan president, Steve McCullough, says the 2010 student loan law allows non-profit organizations to create a for profit organization to service the loans.

“Through our taxable subsidiary Aspire Resources Inc, we’ve won a contract to do just that. And in that process, we’ve already added about 60 jobs here in the state of Iowa so that we can provide the customer service that these people from all over the country are going to need,” McCullough says.

Aspire runs the student loan servicing operation from West Des Moines. “Pretty much everything that a direct student loan borrower’s going to need to help them in repayment is what we’ll be doing. We’ll be making phone calls, we’ll be processing their payments, be processing deferments and forbearances, reaching out to try and help them get their loans repaid,” according to McCullough.

McCullough says they have the potential to increase their staff even more. “The first round of loans we’ll receive will be about 200-thousand borrowers. There’s the possibility that we’ll earn more accounts to service in the future as we do a good job on the ones that we receive,: McCullough says.

“If we receive more accounts in the future, then we’ll be adding more jobs.” McCullough says Aspire will be paid on a sliding scale depending on how well they handle the loans.

Filed Under: Business, Education, News

Creighton report shows continuing strength in Iowa economy

May 1, 2012 By

Economist Ernie Goss.

A monthly survey finds Iowa’s economy is continuing to strengthen along with that of the entire Midwest region, bucking the national downward trend.

Ernie Goss, an economist at Creighton University, says the Midwest is seeing job growth and solid exports with cooling inflation, making for very favorable conditions.

“This is very surprising,” Goss says. “Our survey of supply managers in nine states, stretching from North Dakota and Minnesota in the north to Oklahoma and Arkansas in the south, the leading economic indicator from that survey for April was up and that’s contrary to almost everything else we’re seeing coming across for the nation.”

Fuel prices have dropped and input costs are projected to only rise about 2% for the rest of the year. Goss says those are two more factors in Iowa’s favor and for the Midwest. “Our number is the bright one out there and a lot of that can be traced to a healthy agricultural sector and housing,” Goss says.

“Construction and housing are not as negative in this part of the country.” The survey also finds employment growth in the Midwest region is accelerating, with some of the best gains since the recession ended.

Goss says it’s in stark contrast to most other regional and national surveys that point to slower growth ahead. Goss says, “You take every state among the nine states, all of them are showing much better growth looking ahead than what we’re seeing coming out of the national economy.”

Both durable and nondurable goods manufacturers in Iowa are adding jobs at a healthy pace, Goss says, while manufacturers tied to agriculture and dependent on sales abroad are experiencing especially strong growth.

He expects Iowa’s unemployment rate to move below 5% for the first time since 2008 by the middle of 2012.

Filed Under: Business, Featured Story, News

Banking report shows recovery from the recession

April 30, 2012 By

After several challenging years, a report shows Iowa’s financial institutions are clearly on the mend and recovering well from the recession. John Sorensen, president and C.E.O. of the Iowa Bankers Association, says the report details how Iowa banks and savings institutions enjoyed steady growth and financial health in the fourth quarter of 2011.

“We’ve been helped by agriculture in Iowa and agriculture-related businesses,” Sorensen says. “Iowa banks are reaping the benefits of being relationship lenders, rather than lending indiscriminately. They know their customers and are working to meet the needs of their communities.” The report says total deposits in Iowa banks rose more than $55-billion in the fourth quarter.

That’s up a-billion from the third quarter and more than two-billion from the previous year. Sorensen says it shows people have more money to save and they’re saving it in Iowa banks, instead of risking it in the stock market. “People still enjoy the fact their deposits are federally-insured at an Iowa bank and they like that security right now, with the current market environment,” Sorensen says.

“We are starting to see some improvements in the economy and the markets are also reflecting that to some degree.” The report says more than 70% of Iowa’s financial institutions reported earnings gains for the second year in a row, and more than 95% were profitable at the end of 2011. He says Iowa’s banks weathered the recession of the past few years very well.

“We’ve only had two bank failures throughout the crisis,” Sorensen says. “The vast majority of our banks are in very solid financial health. Even if you look nationally, you’re starting to see a drop in the number of problem banks. I think we’re working our way out and that’s good news for both Iowa banks and for Iowans.”

The report also finds: Net income for all Iowa institutions improved by $271 million from the prior year to $685 million; Total earning assets also increased $2.1 billion to $63.4 billion; Iowa’s total loans and leases also showed steady improvement, reaching $42.7 billion, up $442 million from the third quarter.

The Iowa Bankers Association represents Iowa’s 345 banks and savings institutions.

Filed Under: Business, News

Strong scratch ticket sales, record Mega Millions jackpot drive up Lottery profits

April 27, 2012 By

The Iowa Lottery reports proceeds to the state are already over the $58.7 million the organization projected for the fiscal year that ends in July. The money returned to the state in March was $10-million more than March of last year.

Lottery C.E.O. Terry Rich says the world-record Mega Millions jackpot last month was part of the reason for the increase. “The Mega Millions jackpot was big, I guess really big, in that it added about two-and-a-half to three million dollars in proceeds of the state,” Rich says.

“But overall, the big growth has been in scratch tickets. People who just enjoy having a cup of coffee and playing the Monopoly scratch ticket at the local convenience store continue enjoying that kind of product.” March was the fourth straight month with record scratch ticket sales.

Rich has said in the past that high gas prices were something that could hurt lottery sales. He says that was evident in the past when price hit $3.50 a gallon, but he says the threshold now is higher.

“We’re thinking it would take a $4.50 a gallon cost of gasoline to really impact sales now. And with the economy this has kind of also changed the dynamics because I think people are looking for a way to kind of escape all the craziness that’s happened with this poor economy. And being able to spend a few dollars and dream a little about a big return with a jackpot, I think it gives some hope and some optimism. And I think that’s helped us with a few dollars and a local place to buy it with our sales,” Rich explains.

He expects the strong sales to continue through the final three months of the fiscal year. “I don’t think there’s any doubt that the lottery is going to have the best year in its history on its core products, the pull tabs, scratch tickets and our lotto tickets. So it’s going to be a big year, but the beauty I think of what we’ve always said bout the lottery is that it’s optional revenue — people only play if they want to,” Rich says.

Lottery proceeds were over $60.4million by the end of March.

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