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Farming: A Growing Concern Pt. 1 Gov't Policy

Fri, 28 Sep 2012 16:27:11 CDT
By: Willis Kern

Farming: A Growing Concern Pt. 1 Gov't Policy The agriculture industry has had a rocky year, highlighted by a vicious drought and oppressive midwestern heat. Farmers in Illinois and elsewhere are trying to make the best of the harvest, while bracing for what lies ahead. As Willis Kern reports in the first segment of the GLT News Series Farming: A Growing Concern, the immediate future is clouded by gridlock in Washington.

Doug Wilson discusses the role of organic farms in agriculture

Illinois Agriculture Director Bob Flider says farmers are small business owners

See photos from part one of the series
See and hear other parts of the series

Things are changing in agriculture. The fields may look the same. Silos and grain elevators still dot the landscape, but the culture of farming is not what it once was.

"When I was younger and I would say to people, I'd go to a party and everyone has their gin and tonic or whatever and people would say, what do you do for work and I'd say I work in agriculture and I'd be left in the corner alone with my drink." Kathleen Merrigan has had two stints at the US Department of Agriculture. She helped craft organic labeling rules a decade ago, then left to head up the Ag program at Tufts University before returning to serve as the number 2 person at USDA. "Now I go to a party and I say I work in agriculture and I'm the belle of the ball. What's really exciting now is that people want to talk about where food comes from, how it was produced, who produced it in ways that I haven't seen in my adult lifetime." Merrigan says there's an openess and curiosity about agriculture that she calls healthy. That's not a word USDA officials are using to describe this year's corn crop.

I'm climbing into the cab of a corn and soybean combine. It sits on the edge of a corn field rumbling, loudly at first, but not as much inside the air conditioned cabin. "My name is Doug Wilson. I'm a corn and soybean farmer in rural Livingston County. I've been farming for 32 years and I farm about 540 acres in this area."
Wilson says his corn crop shows some drought effects, but thanks to a single nice mid-summer drenching missed in many other places, his yield should be strong. What's on his mind right now is the lack of a farm bill. That's the government's spending and planning blueprint for agriculture. Politicians negotiate it in multi-year increments to help farmers plan ahead. The process is no different than others hung up by partisan gridlock in Washington. No bill has reached the President's desk. One cleared the Senate. Critics say it didn't go far enough to help farmers. Others say it helps too much, and remains too fat. One thing farmers seem willing to accept in the bill is an end to direct payments--the oft-criticized farm subsidies. Wilson will concede that, but draws the line at cuts to crop insurance.

"We're clients to the insurance companies with some federal backing and it's something that has worked for us. You can elect what percentage of your crop you're going to cover. That's probably one of the underlying issues, but the uncertainty overall of 'what is our policy going to be?' is something that makes people hesitate as they start planning for next year already."

Doug Wilson points out even if Congress and the president enact a Farm Bill, many other variables not limited to agriculture affect farmers--international relations, estate planning, and transportation to name a few. Uncertainty in these areas only adds to farmer frustration. What ultimately happens may lie within the latest complex answer to an age-old simple question: What is government's role in a free-market economy? Frank Lucas, the Republican Chair of the House Ag Committee, says that question only leads to others.

"I serve with some members who say Uncle Sam shouldn't be involved in anything. So, do we do away with Pell Grants to help beginning college students get into college? Do we do away with federal flood insurance that helps people in flood-prone areas? Do we step away from incentives that provide air and ground transportation? You know, you gotta look at the whole package."

Critics say farm subsidies and other elements of government policy have often led to over-production. Lucas says having a plentiful food supply is really a beauty of the industry. He compares it to military funding.

"We pay companies to keep factory assembly lines warm in the hopes that we will never use them. But in case of war, we need the resources, we need the production. I don't ever want to get to the point where, because of bad federal policy, we don't have enough food to meet the needs of the American consumer and the consumers around the world. We're always going to have a little extra. But I'd rather have a little extra, than not enough."

Taking care of global food supplies is at the heart of the "Feed the Future" initiative announced by President Barack Obama at last spring's G8 Summit. He said there are economic, security and moral imperatives.

"Because of smart investments in nutrition and agriculture and safety nets, millions of people in Kenya and Ethiopia did not need emergency aid in the recent drought. But when tens of thousands of children die from the agony of starvation, as in Somalia, that sends us a message we still got a lot of work to do."

President Obama's plan requires government support the world over, and private dollars. 45 major international corporations and African companies are kicking in $3 billion for the initiative. Mr. Obama says one goal is to make Africa, which he says boasts the largest amount of unused arable land on earth, a major food producer and exporter. Deputy Secretary of Agriculture Kathleen Merrigan says the U.S. can help achieve those.

"All of our skills, exporting those to other countries makes sense. As we have a growing middle class around the country, American producers are going to do well. So, we don't want to get in the way of progress for these countries because what's good for them will be good for us."

Merrigan says many factors control the world's future food availability, including international politics, decreasing water supplies, production challenges and distribution problems. She says a major player in tackling some of those issues is technology. That's the subject of our next report tomorrow.

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