Ag Luncheon at Bloomberg

This week, farm policy took center stage during my trip to our nation’s capital.  At a luncheon hosted by Bloomberg Government, Senate Agriculture Committee Chairman Pat Roberts and House Agriculture Committee Chairman Mike Conaway discussed the future of the farm bill as well as other critical challenges facing the ag sector.  Not surprisingly, these included: agricultural economy and commodity markets, new realities and pressures related to farm incomes, growing regulatory burdens and emerging agriculture technologies.

House Ag Chairman Conaway is currently leading a series of congressional hearings on these emerging pressures on rural America and he is pro-actively working to ensure that these issues remain in front of fellow colleagues on Capitol Hill as well as the general public.  Conaway has also been using other opportunities and forums to promote key agricultural issues and is serving as an advocate for the American farmer as seen in a recent Bloomberg opinion piece.

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At the luncheon Chairman Conaway also took time to publicly praise the hard work and leadership of Indiana Congresswoman Jackie Walorski.  As the Nutrition Sub-Committee Chair, Rep. Walorski has helped lead several of the hearings within the House Ag Committee and focused on important issues such as the Supplemental Nutrition Assistance Program (SNAP) reform and the connections between farm policy and food prices.  Additionally, the issue of poverty and relation to agriculture and food prices has been well documented and discussed among congressional leaders as of late and was another point of emphasis by Chairman Conaway.  He highlighted a new report called “A Better Way”, which was spearheaded by House Speaker Paul Ryan, Chairman Conaway and other Republican leaders.

In addition to recent hearings and activities, chairmen Roberts and Conaway also discussed a number of specific policy issues including the future of the farm bill.  Both agreed that before any potential changes are made to the next farm bill, congressional leaders should agree to establish rigorous policy standards to determine impacts on food prices and availability.  As Chairman Conaway explained, any policy found to potentially increase food cost needs to have clear goals and justifiable, widespread benefits.

Another area of agreement and emphasis by chairmen Roberts and Conaway was crop insurance and the important role that it should continue to play in the next farm bill.  Despite repeated attempts to reduce crop insurance support by a handful of lawmakers as well as President Obama in recent times, the agriculture community has been successful at thwarting these counterproductive efforts.  However, these battles are not finished and it should be expected that they will continue and only increase as we get closer to the development of the next farm bill.  They also noted that the next farm bill needs to continue an overall safety net that is robust and includes support for both crop insurance as well as commodity programs because agriculture is very diverse across our country and different farmers have different needs.

In closing, the chairmen noted that the next farm bill will likely be written during a very difficult farm economy scenario while at the same time undergoing increasing baseline and budgetary scrutiny, creating a lot of pressures.  In addition to risk management tools and safety net discussions about crop insurance and commodity programs, the growing issue of credit availability for farmers is another important consideration in the overall picture.  While discussions are increasing about what the next farm bill should be, the verdict is still very much out about how the current farm bill is serving farmers and rural communities.  Any attempts to change the farm bill should first and foremost be market oriented and consider food affordability and availability.

Moving forward, the ag committees will continue congressional hearings and activities to highlight key agricultural issues that impact farm policy.  They also plan to host listening sessions with key interests groups and farmers across the U.S. beginning at the end of the year.  Indiana Farm Bureau will follow these developments closely and communicate about opportunities as they become available.

IMG_0029(View from my hotel on New Jersey St.)

#WorldTradeMonth

The month of May means different things to different people.  In Indiana, Hoosiers may consider the Indianapolis 500 and its many festivities, planting season being in full swing or the approaching end of the school year.  You may not be aware that May is also World Trade Month.  Indiana Farm Bureau is taking this opportunity to highlight the numerous benefits of trade to Indiana’s farmers, rural communities and the general economy.
tradepic3(Indiana and Michigan Farm Bureau leaders visiting the European Commission in September 2015 as part of the Agricultural Leadership Exchange)

So why highlight trade?  Given the dire tone and negative rhetoric that surrounds this issue and the fact that every presidential candidate seems vehemently opposed to trade while proposing a seemingly isolationist political stance, you’d think I might consider spending my time on something else.

Well, let us briefly consider a few facts about trade and its role in Indiana for perspective:

  • Indiana ranks 8th among the 50 U.S. states in the value of its agricultural exports
  • Indiana’s agricultural exports reached an estimated $4.8 billion in 2013, up from $3.8 billion in 2009
  • Indiana’s agriculture exports support roughly 36,200 jobs
  • Nearly 1 out of every 3 acres of soybeans planted in Indiana are destined for export markets
  • Indiana’s top five agricultural exports are: 1. Soybeans – $1.7 billion 2. Soybean meal – $442 million 3. Feeds and fodder – $429 million 4. Corn – $410 million 5. Pork – $307 million

tradepic4(Over 50 Indiana Farm Bureau members met with officials from the Embassy of Japan during the 2016 INFB Leader Trip to Washington, D.C. in March to discuss trade and TPP)

We frequently hear opponents to new trade agreements argue that trade benefits agriculture at the expense of other industries.  However, a closer look at the collective economic impacts in Indiana seem to show a different picture as noted by the U.S. Chamber of Commerce:

  • More than 800,000 Indiana jobs depend on trade and the state’s exports have approached $50 billion annually in recent years.
  • Trade does not only benefit large multi-national corporations. Of the 8,258 Indiana companies that export, 85% were small or medium-sized firms.
  • Among those leading the charge is the auto sector. Exports of motor vehicles increased by an impressive 89% between 2009 and 2014, topping 2 million cars and trucks for the first time in 2014. U.S.-built cars shipped to China have risen sevenfold since 2009.

Given these realities, it is apparent that expanded international market and exporting opportunities for Indiana farms and businesses will result in added economic value and benefit.

Because of the important role trade plays to the success and viability of Hoosier farmers, Indiana Farm Bureau is encouraging its members to join in the efforts to promote trade opportunities for agriculture and emphasize the need for congress to pass the Trans-Pacific Partnership (TPP) and Trans-Atlantic Trade and Investment Partnership (TTIP).

There are many ways Farm Bureau members can participate in the World Trade Month campaign.  A list of resources and information (including most of the trade facts above) can be found at the Indiana Farm Bureau World Trade Month website, including a few suggestions for helping INFB with its trade advocacy efforts.  You can also find a social media script to help you get involved on Facebook and Twitter, following #WorldTradeMonth.

I hope that you will take a moment to join the conversation and inject some Hoosier common-sense into the ongoing trade debate.