By Lindsay West

AMARILLO--Five commodity organizations met Nov. 30 in conjunction with the Amarillo Farm and Ranch Show to host the Fifth Annual Texas Commodity Symposium.

The Texas Wheat Producers Association (TWPA), Texas Grain Sorghum Association (TGSA), Corn Producers Association of Texas (CPAT), Plains Cotton Growers, Inc. (PCG) and Texas Peanut Producers Board (TPPB) united at the Amarillo Civic Center to provide producers with an opportunity to hear about important issues affecting their crops.

Keynote Speaker

U.S. Congressman and House Agriculture Committee Member, Mike Conaway was the symposium's keynote speaker and discussed plans for the 2007 farm bill and rising energy costs.

Although commodity groups have stated in listening sessions for U.S. Secretary of Agriculture Mike Johanns that they want to see the existing farm bill remain the same in 2007, Conaway said an extension would not be a realistic alternative.

"The good news is that the physical mechanics of the '02 farm bill worked," Conaway said. "However, the federal government in 2002 was experiencing surpluses, and that isn't the circumstance now. A different environment exists now for the 2007 farm bill to be created, and there is still uncertainty of what it will look like."

After the House of Representatives approved legislation that cuts $3.7 billion in agriculture programs, including a 2.5 percent cut of direct payments to row crop farmers as part of the Deficit Reduction Act of 2005, Conaway said commodity program "haircuts" may not be what producers want to hear, but is all part of the reality that those involved in agriculture "need to share in the effort."

Counter Cyclical Payments

Former National Association of Wheat Growers President and the 2005 Texas Wheat Board Producer's Wheat Man of the Year, Tommy Womack, said Texas Wheat producers would like to see the present farm bill remain in place in 2007. "We feel like the present administration is not agriculture friendly towards the 2002 farm bill, which is why we'd like to see an extension of the existing bill," he said.

Low grain prices and relatively poor crops from inadequate moisture have led to a requested commodity program change that Womack said Wheat producers in his state need in the new farm bill. "Wheat producers across Texas have not received a counter cyclical payment even though the money has been allocated for it. The money set aside for (the payments) wasn't placed into a bank account for us to draw out of. It's gone."

Consequently, Womack said producers would like to see 20 to 30 percent of the direct payments allocated for Wheat be in line with other crops that have had counter cyclical payments.

Cotton

Shawn Wade, director of communications for Plains Cotton Growers, Inc. said Texas' cotton growers, who are embarking on breaking last year's record setting season of $4.8 million bales by 400,000 bales of production, are also hoping to maintain as much of the current farm bill as possible. "The current farm bill was structured in a way that works when it needs to and backs off when market forces are able to make up that critical area where we need to be."

In addition to the farm bill, Conaway addressed concerns about the country's vulnerability in its energy supply. The focus of current energy policy, Conaway said, is conserving energy, expanding refining capacities and streamlining the fuel supply process.

Energy

John Wood, director of the Energy Information Administration's reserves and production division, further addressed rising fuel costs predicting a significant opportunity for oil and natural gas prices to be lower in 2006. "Although prices are still quite high when compared to historical standards, fuel prices have reached a peak in all likelihood and will begin to go down," Wood said.

Farm Service Agency

Newly appointed USDA Farm Service Agency (FSA) Administrator Teresa Lasseter was also on hand to inform the symposium's participants about her future plans for the agency. In light of the nearly one-third cut in FSA staff positions by the Bush administration, Lasseter said the agency will do all they can do help farmers succeed.

"We must be ready to anticipate changing needs of farmers, and be able to have the right technology and employees in place to do so," Lasseter said. By building closer relationships with rural development and other agencies, Lasseter said she hopes FSA's dynamic infrastructure will become stronger in adapting to the changing technology of today's agriculture.

Also speaking at the symposium were Texas State Senator Kel Siliger, Executive Texas State FSA Director John Fuston, Texas USDA Rural Development Director Bryan Daniel, and NRCS Texas State Conservationist Larry Butler. Over 300 people were in attendance for this year's symposium.

The 2006 Texas Commodity Symposium will be held once again in cooperation with the Amarillo Farm and Ranch Show.