Senator Cornyn Statement on Farm Bill

It still has to cross the President's desk but with enough votes for a veto override, it is likely this Farm Bill will become law.

Cornyn: Final Farm Bill Good For Texas Agriculture Community

Says Texas Farmers & Ranchers Will Benefit from Carefully-Crafted Compromise

Thursday, May 15, 2008WASHINGTON—U.S. Sen. John Cornyn expressed his support today for final Senate passage of The Food and Energy Security Act of 2007, H.R. 2419, more popularly known as the “Farm Bill.” With today’s approval vote by the Senate, and yesterday’s passage of this bill in the House, the legislation will now be sent to the President’s desk.

“Passage of this bill is an important and long-overdue step for Texas farmers and ranchers, providing them a stable policy moving forward. It’s not perfect but it represents a carefully-crafted compromise that will protect Texas agriculture, including family farms, strengthen key nutrition programs, and fight childhood obesity.

“One in every seven Texans can trace their employment to agriculture. In...(complete news release here).

Farm Bill Likely to be Vetoed

We need a Farm Bill but I agree that this is probably not the bill that we need. It would be great if we could split this thing up into all of its component parts that are not really farming related and approach each one separately. Then maybe we could get some common sense back into it.

Fact Sheet: Congress' Farm Bill Is Bad for American Taxpayers

Congress Should Propose Real Reform, As President Bush Did, Or Extend Current Law For At Least One Year

Today, Congressional negotiators announced the completion of a farm bill that fails to include much-needed farm program reforms proposed by President Bush and increases spending by nearly $20 billion. At a time of record farm income, Congress chose to further increase farm subsidy rates, require the American taxpayers to subsidize the incomes of married farmers already earning up to $1.5 million per year, and expand government control over farm programs. This bill also adds...(complete news release here).

Fertilizer Shortages Impact Yields

Fertilizer -- much of it derived from petroleum -- is key to good yields. Not only is the price a limiting factor, now in many places, some key fertilizers are limited in availability.

Shortages Threaten Farmers’ Key Tool: Fertilizer

Wednesday April 30, 1:35 pm ET
By KEITH BRADSHER and ANDREW MARTIN

XUAN CANH, Vietnam — Truong Thi Nha stands just four and a half feet tall. Her three grown children tower over her, just as many young people in this village outside Hanoi dwarf their parents.

The biggest reason the children are so robust: fertilizer.

Ms. Nha, her face weathered beyond its 51 years, said her growth was stunted by a childhood of hunger and malnutrition. Just a few decades ago, crop yields here were far lower and diets much worse.

Then the widespread use of inexpensive chemical fertilizer, coupled with market reforms, helped power an agricultural explosion here that had already occurred in other parts of the world. Yields of rice and corn rose, and diets grew richer.

Now those gains are threatened in many countries by spot shortages and soaring prices for fertilizer, the most essential ingredient of modern agriculture.

Some kinds of fertilizer have nearly tripled in price in the last year, keeping...(complete article here).

Cornyn Pushing for Farm Bill Action

It's time for the logjam to break on a Farm Bill. I hope Senator Cornyn can get it to rolling. It is very important to his constituents -- even those who don't realize how important agriculture is to the economy of the state of Texas.

Cornyn Seeks Action On Final Farm Bill

Provides Texas Farm Bureau Members with Legislative Update on Capitol Hill

Wednesday, April 2, 2008

WASHINGTON—U.S. Sen. John Cornyn met with members of the Texas Farm Bureau on Capitol Hill today and said that he continues to advocate...(complete news release here).

Bioenergy Mandates Will Continue to Support Prices

The corn farmers should be happy...

2008 FAPRI Outlook Shows New Bioenergy Mandates Sustain Historically High Commodity Prices

Contacts:
Jacinto Fabiosa; jfabiosa@iastate.edu
Dermot Hayes; dhayes@iastate.edu
Sandra Clarke; sclarke@iastate.edu

March 5, 2008

WASHINGTON — Continuing high crude-oil prices and new bioenergy mandates, such as the U.S. Energy Independence and Security Act of 2007, are expected to sustain prices at historic highs across all agricultural commodities over the next decade. This is according to analysts with the Food and Agricultural Policy Research Institute, or FAPRI, who briefed Congress this week on their new 10-year projections for U.S. and international commodity markets.

Global net trade in ethanol is projected to increase by 2.53 billion gallons, reaching...(complete article here).

Cotton Research on Heat Tolerance

Heat and drought tolerance are important characteristics for meeting future needs.

Breeding Heat-Tolerant Cotton

By Laura McGinnis
February 19, 2008

Some plants like it hot. Cotton with superior heat tolerance can be a profitable crop for warmer climates, so Agricultural Research Service (ARS) scientists are identifying tolerance-specific genetic selection tools to assist breeding efforts.

Unfortunately, it's nearly impossible to...(complete article here).

Agriculture Crucial

Complex issues -- definitely.


“Biodiversity is vital for human survival and livelihoods,”
FAO Deputy Director-General says

James G. Butler calls for “urgent remedial action” against hunger and rural poverty

18 February 2008, Rome – “Biodiversity is vital for human survival and livelihoods; we need to conserve it for future generations. At the same time, the unacceptable scale of hunger and rural poverty in our small planet calls for urgent remedial action,” FAO Deputy Director-General James G. Butler said today. He was addressing the opening session of the thirteenth meeting of the Subsidiary Body on Scientific, Technical and Technological Advice of the Convention on Biological Diversity (18-22 February 2008).

Ultimately...(complete article here).

Projected Increase in World Cereal Grains Production

Well, duh! Do you think high prices have anything to do with increased production?


Significant increase in world cereal production forecast for 2008, but prices remain high

New FAO web portal tracks market trends

13 February 2008, Rome -- Early prospects point to the possibility of a significant increase in world cereal production in 2008, but international prices of most cereals remain at record high levels and some are still on the increase, FAO said today.

The forecast increase in production follows...(complete article here).

More on the Farm Bill

From Ag Observatory...

Veto threat seen lever for farm-subsidy reform

Reuters
February 6, 2008
By Charles Abbott

Thanks to a White House veto threat, Congress is on the path to an overall tightening of farm subsidy rules, said a staunch Senate advocate of payment limit reform on Tuesday.

Sen. Charles Grassley said...(completely article here).

Cotton Breeding

From the ARS...

Breeding Better Cotton

People expect a lot from cotton.

Consumers want durable, comfortable fabrics. Producers want easy-to-manufacture textiles. And growers want hardy, thriving plants. Uniting these traits in...(complete article here).

Farm Bill Funding Politics

How do you fund all of the conservation and energy provisions in the new Farm Bill? Cut the part out that actually goes to farmers.

Bush Digs In On Farm Bill Funds As Harkin Urges A Deal

National Journal's CongressDaily
January 31, 2008
By Jerry Hagstrom


Senate Agriculture Chairman Harkin said today if the administration does not agree soon to revenue raisers to increase farm bill spending above the current baseline, Congress might have to pass the bill with the expectation that President Bush will veto it. "If an overwhelming majority of the Congress says close some loopholes to get us some funding, the president is going to have to bend on that or I guess we are headed for a veto," Harkin said. Noting that 79 senators voted for the Senate version in December, Harkin said a veto override is probable if the final version looks like the Senate bill.

Harkin noted that...(complete article here).

Why Biofuel Subsidies?

The research project referenced below from Iowa State University indicates that the likely objective of the U.S. Biofuels subsidies was to transfer payment to the farming sector. With the historic pressure to remove farm subsidies which were designed to ensure a secure and cheap food supply, this strategy makes sense. However, the consequences of the strategy in its impact on the livestock feeding sector somewhat negates the gains in the farming sector.

Implied Objectives of U.S. Biofuel Subsidies

Ofir D. Rubin, Miguel Carriquiry, Dermot J. HayesFebruary 2008 [08-WP 459]

Biofuel subsidies in the United States have been justified on the following grounds: energy independence, a reduction in greenhouse gas emissions, improvements in rural development related to biofuel plants, and farm income support. The 2007 energy act emphasizes the first two objectives. In this study, we quantify the costs and benefits that different biofuels provide.

We consider...(complete article here) [Be sure to go to the .pdf of the entire article]

The 2008 Farm Bill

I must admit that I have been avoiding the 2008 Farm Bill like the plague. The floor-passed Senate version is 1,876 pages long (it can be viewed on the Internet at http://agriculture.senate.gov/). The complexity of the various provisions requires a law degree to decipher. It is no wonder that it takes our representatives more than a year to come up with a bill that can be passed by both houses of Congress and that would be acceptable to signature by the President. That hasn’t happened yet, but we are finally getting close. Hopefully, there will be a Farm Bill by the end of March.

Most people think of the Farm Bill as providing for price supports to farmers. Such provisions remain a part of the bill but only a small part. The price supports are designed to influence planted acres of various crops in order to provide adequate income to farmers while maintaining “cheap” food prices to the consumer and some level of food security for our nation. Most consumers think of crop price supports as “welfare” for farmers. They usually don’t realize that they are designed to allow market forces to maintain a “cheap” food supply for our country.

Over the years many sections have been added to the farm bill. Some of these sections regulate agricultural markets. Others are oriented more toward conservation practices. Each of these sections has grown with each successive farm bill until they are now quite large. Some of the newest sections in the farm bill are related to energy.

The Energy Independence and Security Act of 2007 had a profound impact on the 2008 Farm Bill. It raised the standard for the production of renewable fuels to 9 billion gallons for this year and gradually increases the standard so that by 2022, the U.S. should be producing 36 billion gallons of renewable fuels. In 2022, the amount of renewable fuels should include advanced bio-fuels, such as cellulosic ethanol, in the amount of 21 billion gallons. The balance of that will likely remain corn-based ethanol.

Decades ago Congress created the Commodity Credit Corporation (CCC) within the Department of Agriculture. The CCC was created and given authority to take money directly from the U.S. Treasury for farm programs. This measure was authorized to provide security of income to farmers so that they were not dependent on annual budget appropriations for funding of mandated farm programs. This provision makes the 2008 Farm Bill attractive to legislators as a means of funding their pet bio-fuels projects without the necessity of going through the normal appropriations process. The result is that the Farm Bill has become a political football.

Further complicating the passage of a Farm Bill is the fact that this is a Presidential election year. Each of the political parties sees the bill as a way to potentially manipulate support for their party’s candidate. Because the bill has grown to include so many features and provisions, the potential political leverage has grown to include almost all interest groups. Agriculture generally, and farmers in particular, have effectively lost their ability to have much influence on the process because of the broad range of issues now included.

Some of the new provisions that are related to energy are: 1) The renewable energy and energy efficiency improvements program, 2) Biomass research and development, 3) The Bio-energy program which makes incentive payments to bio-energy producers, 4) The Biomass energy reserve program, 5) Forest bio-energy research and 6) The Sun grant program which focuses on solar power. All of these programs are designed to meet the mandates of the Energy Independence and Security Act of 2007 through the use of the CCC as a funding mechanism so that the programs do not require line-item funding through the appropriations bill.

Hopefully, we will eventually see a Farm Bill passed that will continue to provide a safety net for our nation’s food supply system. If we are to continue to benefit as a nation from a “cheap” and abundant food supply, we must have a strong farm bill. Let your Congressmen know your feelings.

Salt Marsh or Wheat?

Growing populations, concern over feeding the world, and Britain decides it would prefer swamps.


Farmland yields to major wetland

By Jeremy Cooke
Rural affairs correspondent, BBC News

Looking at Wallasea Island, it's hard to imagine that this flat, featureless landscape is about to become one of Britain's most important wildlife sanctuaries.

But 500 years ago - before this corner of coastal Essex was drained to make way for crop production - this was salt marsh. It was a thriving natural environment teeming with life.

Now, in its most ambitious project in this country, the Royal Society for the Protection of Birds (RSPB) is about to spend £12m recreating the salt marsh, turning the clock back by hundreds of years.

The plan is simple: the ancient...(complete article here).

The Future Shape of Agriculture?

That agriculture has changed through the years is obvious to anyone who cares to look. It began in the dark recesses of history when man first decided that he could grow his own food rather than hunt for it or gather it in the wild. Today it is a high-technology, capital intensive business that requires expertise in multiple disciplines for success. Where will it go in the future?

There are many today who believe agriculture will transition from the large-scale farming operations of today to smaller, more diverse businesses that supply a local market. Some even envision high-rise farms located in skyscrapers in the inner city environment. Such skyscraper farms will be energy self-sufficient with strong emphasis on water and nutrient recycling through artificial climate systems.

Urban sprawl continues to encroach upon prime farming land across the country. Suburbs of major cities spread farther and farther from the city centers replacing dairies, orchards and grain fields with houses, apartments, and businesses. The competition between agriculture and people for water becomes more intense daily, especially in drier areas of the country that are dependent on aquifers and reservoirs for their water supply.

Drought situations in the west over the past year have highlighted the competing demands of agriculture and people for the same water resources. In the illogical world of political expediency, it is often agriculture that suffers. As long as we live in a country of bountiful food this will likely be the case.

Energy costs are another factor of agriculture production that will receive increasing scrutiny over the coming years. There is hope within the farming community that increasing emphasis on bio-fuels will not only increase revenue potential through crop sales but will create the opportunity for becoming fuel independent through on-farm manufacture of bio-diesel and ethanol. With additional energy supplementation through wind and solar power, farmers could essentially “disconnect” from the grid, or better yet, sell electricity to the power companies.

Global warming is another issue that must be considered as we look to the future of agriculture. Whether you believe that global warming is man-induced, or the result of natural climate cycles, there is evidence that warming is indeed occurring. If nothing else, the “idea” that weather patterns are being affected is causing legislation to regulate behavior that will have an impact on agriculture. From alarmist hype about methane from cows, to the cost of fuel, public perception of agriculture will result in regulatory changes that will impact the way we farm.

So, what is my vision for the future of agriculture? Definitely positive, but full of turmoil as we transition from an economy based on fossil fuels to one based on alternative energy sources. Growing population will continue to create the need for more food. The energy infrastructure will become more fractured and localized with much of the energy consumed produced locally rather than delivered by large conglomerates. Transportation costs and efficiency will affect how farm products are delivered to market. The concept of “skyscraper” farms may not be as far-fetched as our first reaction makes them to be. Farms will likely become more diversified and even more dependent on technology. Precision technologies, on-farm energy production and increasing vertical integration will become the norm. Regulations will change in nature from the current form of price support programs to more oppressive rules on nutrient and waste management and possibly even zoning.

The future will require even greater capital investment than is currently demanded. This will result in a bi-modal division of agriculture into a few large corporations controlling vast resources on the one hand and a large number of micro-farms on the other hand that target specific market niches such as fruits and vegetables for local markets.

Now, like any other prognosticator, I want to put in my disclaimer. All of this is speculation. Who knows what the future will really hold? One guess is as good as another. The only thing we can be sure of is that change will happen. Let’s hope it is all good.

Rising Prices for Wheat

It looks like wheat prices are headed up with tightening supplies...

Wheat Rises to Record as Ukraine Cuts Exports, Stockpiles Low

By Jae Hur

Sept. 27 (Bloomberg) -- Wheat rose to a record as Ukraine planned to cut exports and importers sought more supplies, squeezing inventories that are heading for a 26-year low.

Ukraine, the world's seventh-biggest wheat exporter last year, will curb shipments starting Nov. 1 to cap domestic prices. A drought in Australia threatened to ravage the harvest for a second year. Egypt, Iraq, Japan, Jordan, Morocco and Pakistan announced plans this month to buy the grain.

Wheat futures in Chicago reached as high as $9.3925 a bushel and more than doubled in the past year. Rising prices are pushing up inflation in Australia and China, while increasing costs for U.S. cereal makers General Mills Inc. and Kellogg Co.

``We can not rule out $10 for wheat,'' said...(complete article here).

The high price of wheat will help balance the demand to convert land to fuel crops. It will have an impact on the consumer food dollar.

Farmers and Conservation

Corn growers want to tell folks how conservation is important to farmers.

NCGA Video Tells Conservation from Viewpoint of Growers (9-19-07)

The connection between the nation’s corn growers and the land they farm is the subject of a new video from the National Corn Growers Association (NCGA).

Titled “Growing for the Future,” the story includes reminiscences from corn growers about the farming practices they grew up with, and how they’ve been able to take advantage of new technology to protect soil from the continuing threat of water and wind erosion, reduce agricultural inputs and improve the long-term health of their fields.

“This is an important step to communicate with people who may not have any first-hand knowledge about agriculture,” says NCGA President Ken McCauley. “With all the concern about the impact of agriculture on the environment, it’s vital for people to know the role agriculture has in protecting our environment.”

Corn growers from Colorado, Iowa, Kansas and Missouri speak from the heart about the challenges they faced in their environmental efforts. “We’re changing fertility, we’re changing the amount of water that we apply, we’re changing the tillage, we’re using variable rate technology for both insect control, disease control and also nutrient management,” noted agronomist Mike Petersen. “That’s huge!”

The video also brings out the link between growers and the land, making it clear that environmental responsibility is a part of their lives. “The soil has given back to us over the years,” concluded Byron Weathers, of Yuma, Colo. “If we take care of it, it will take care of us.”

The new video is part of a broader campaign by NCGA to provide factual information to the public about corn and the environment. The video is available for download on the NCGA Web site. The video runs approximately 10 minutes, and is viewable and in three sections. An NCGA “white paper” on sustainable agriculture and smaller topic briefs are also available on the site.

It is important that consumers understand the connection between farmers and the land for which they are stewards. It is a story that bears repeating.

Record Feedgrains Production

Record feedgrains production and higher prices! "Thank you ethanol," say American farmers. The livestock industry isn't so sure.

Follow the link here to USDA Feed Grain projections.

Corn Yield Projections Up

Good weather, high yields, new varieties...

Corn Harvest, Yield Projections on the Rise,
Says NCGA (9-12-07)

As corn growers begin harvest the size of the 2007 crop is becoming more clear, says the National Corn Growers Association (NCGA).

The latest report from the U.S. Department of Agriculture (USDA), released this.... (see rest of article here).

Energy vs Food II

In the short time that this blog has been active I have received numerous "search engine hits" on "energy vs food." These "hits" have come from countries throughout the world. It is apparently a topic of great interest.

There is continuing debate about ethanol production and its impact on food prices both worldwide and domestically. The article below by the Renewable Fuels Association is written from the perspective of a pro-ethanol group. Their contention is that rising food prices are more a result of rising petroleum product prices than rising corn prices. I can't disagree with their argument but I think it is incomplete. Please read the entire article.

Ethanol Facts:Food vs. Fuel

As the U.S. ethanol industry continues to expand, the amount of corn used for ethanol production is increasing dramatically. Corn use for ethanol more than doubled between 2001 and 2005. Critics question whether corn growers can satisfy demand for both renewable fuels and traditional uses like livestock and poultry feed, food processing and exports, and the contrived food vs. fuel debate has reared its ugly head once again.

Recently, critics and many in the media have charged that the rising price of corn due to growing ethanol demand is the major culprit for moderately rising consumer food prices. Absent from the discussion is the chief reason for increasing food costs: escalating energy costs. According to a June 2007 analysis of food, energy and corn prices conducted by John Urbanchuk of LECG, LLC, “rising energy prices had a more significant impact on food prices than did corn.” In fact, the report notes rising energy prices have twice the impact on the Consumer Price Index (CPI) for food than does the price of corn.

“Energy costs have a much greater impact...(read complete story here)

All of the issues related to ethanol production impact food prices. It is a tapestry that is interwoven throughout both agriculture and energy industries. Corn for ethanol does impact food prices. We wouldn't be growing corn for ethanol if it wasn't for a desire to become energy independent. Energy prices, in all forms, are a significant part of the consumer's food dollar. It takes energy to grow, process and transport food items.

Most corn in the U.S. has traditionally been grown for livestock feed. Bi-products from ethanol distillation are used as livestock feed. Corn prices impact livestock prices due to the cost of feeding the animals. There is a lagged ripple effect through all segments of livestock production due to the biological delays in the production cycle. Corn for ethanol is unlikely to shift production directly away from human food crops. But, like all economic factors, it does have an impact.