The Montana Republican said the bills, which include tax credits and grants for producers, are designed to help farmers and ranchers to get more into the business of adding value to what they produce.

Some examples of successful value-added companies in Montana are Hi-Country Beef Jerky at Lincoln and Wheat Montana near Three Forks, he noted.

Getting into such businesses will give producers more control over the prices they get for what they raise, instead of settling for the prices they are given, Rehberg said.

Producers want and need to reach up the agricultural marketing chain and capture the profits generated from processing their raw commodities, said the Billings-area rancher.

He called agriculture one of the more vulnerable industries in the country.

Its incumbent on me as United States congressman to help those who are most vulnerable, he added.

The legislation drew praise Thursday from farm and ranch groups.

Steve Pilcher of the Montana Stockgrowers Association said the measures will help livestock owners sell products, not just commodities.

These ranchers out here have good ideas, but to carry them forward, heres some assistance to advance that, he said.

Art Loendorf from the Montana Farmers Union said the bills are badly needed by producers, who need to bolster their income and cannot rely solely on market prices outside their control and less than the cost of production.

Weve been to the point for a long time where we can no longer just take the commodity to market, he said.

One of the bills provides a federal tax credit for a portion of a producers investment in his own business to process raw agricultural products. The credit is for half the investment, up to $30,000 a year for a maximum of 20 years.

That allows a $600,000 credit on an investment of $1.2 million.

The second bill offers grants to farmers and ranchers to help pay for the expertise and advice necessary to start up their businesses. The three-year program would provide $50 million.

In the first year, $10 million would be divided equally among 10 states. In each of the next two years, $20 million would be available for those states and an additional 10 states.

A seven-member board in each state would field requests for grants.

The boards would be composed of representatives from the states two largest farm organizations, four commodity groups and a state Agriculture Department official.

Rehberg said the tax credit could be especially helpful for sugar beet growers in their efforts to buy the Western Sugar Co. plant in Billings.

Loendorf said the bills will help farmers develop niche markets for specialty products made from the commodities they raise. Thats necessary because Montanas high transportation costs make it difficult for producers to compete in mass markets for general merchandise.