Capital Press: Johanns: 2007 Farm Bill should be broader in scope, more equitable

USDA Secretary Mike Johanns addressed nearly 5,000 farmers and ranchers Monday at the American Farm Bureau's 88th annual meeting in Salt Lake City, Utah. Johanns called for a 2007 farm bill that is broader in scope, "equitable, effective and less complex" than the current bill.

Johanns: 2007 Farm Bill should be broader in scope, more equitable

Bob Krauter
Capital Press California Editor

January 9, 2007

SALT LAKE CITY, Utah - Good agricultural policy must take into account more than total dollars in farm supports from Washington and steer a different path from the 2002 Farm Bill.

That message from U.S. Secretary Mike Johanns was delivered Monday to about 5,000 farmers and ranchers attending the American Farm Bureau's 88th annual meeting in Salt Lake City, Utah.

Johanns said the 2002 Farm Bill was "good policy for its time," but economic conditions and opportunities at home and abroad have changed.

"In 2001, U.S. agricultural exports had declined five straight years to about $50 billion, but since then exports have risen every year to $68.7 billion in 2006 and they are projected to reach $77 billion in 2007," Johanns said.

Other positive factors include a $42 billion increase in U.S. farm cash receipts since 2001 and one of the lowest debt-to-income levels in history. Johanns suggested that the 2007 Farm Bill should not focus on a specific monetary level of federal farm crop supports.

In 2000, federal farm subsidies reached a record $32 billion, but Johanns reminded Farm Bureau members that the farm economy was "far from impressive."

"If dollars alone are the answer, why did we not have better performance?" Johanns asked. Currently, farm support levels are about $20 billion and the U.S. farm economy is much improved.

"This suggests that increased subsidies do not equate to a strong ag economy."

Focusing his comments on what is needed in the 2007 Farm Bill, Johanns, noted that USDA has held 52 listening sessions in 48 states, which generated 4,000 comments from farmers, ranchers and others.

"We are looking at all suggestions that have been made," Johanns said. "We've never been in a better position to develop a program that lets farmers work for a profit in the marketplace, not in the mailbox for an envelope from Washington."

Johanns suggested that the farm bill writers in Congress should look at more than total dollars and develop farm programs that are broader in scope and take into account the fact that 60 percent of the nation's farmers receive no cash payments from the federal government.

"We're looking at ways to develop programs that are more equitable, effective and less complex," Johanns said.

Johanns sprinkled his address with references to several comments he received at the farm bill listening sessions. One farmer in California stated, "the answer is simple: have an attractive profit motive."

Johanns and several other speakers at the Farm Bureau meeting made pitches for greater emphasis on renewable energy in rural America. He said farmers are finding more profit in growing corn for ethanol production.

"We had 54 ethanol plants in production six years ago producing less than 2 billion gallons a year," Johanns said. "Now we have more than 100 plants producing about 5 billion gallons and there are more than 70 plants under construction."

He said the nexgt farm bill should help farmers in the areas of research and conservation. As the new farm bill is written, he said it is critical to seek new markets abroad for U.S. farm products and to defend market share for farm exports in the face of strong competition.

Traditional farm support programs have come under fire from some countries through the World Trade Organization as giving American farmers an unfair advantage to compete in the world market.

Canada, this week, announced that it is seeking consultations through the WTO regarding the U.S. subsidy program on corn.

"We will aggressively defend these programs, but there is no denying that fact we are being challenged on the world stage," Johanns said.

Given American farmers' heavy reliance on trade -- with 80 percent of the U.S. cotton, 50 percent of U.S. rice crop and 75 percent of cattle hides going into export channels, Johanns said farmers cannot afford to lose their foothold abroad.

Trade competition is strong from Brazil, China, India and other countries, Johanns said. U.S. farmers must continue to compete and fight to sell their farm products.

"If we don't take markets, others will," Johanns said. "You can cuss it, you can discuss it, but it is reality."