Nebraska Ag Classic looks at new Congress, state legislators

By Larry Dreiling

A new U.S. House of Representatives controlled by Democrats, a new member of Congress for the much of the state and a 40-member Nebraska Legislature made of 22 incoming freshmen were the talk of the recent Nebraska Ag Classic, held at Kearney.

More than 600 people, representing boards and associations from four different commodities along with groups representing the state's grain and feed industry, plus its allied industry and ag leadership program alumni associations, gathered under one roof to hear general session speakers while also conducting business meetings specific to their groups.

Perhaps the largest group assembled were members of the Nebraska corn Growers Association, who wrestled with the conundrum of high corn prices from the incredible growth in the ethanol industry and the effect it was having on the state's livestock industry.

"This is an unthought-of challenge," said outgoing president Steve Ebke. "To use every bushel of corn grown in Nebraska consumed in Nebraska. We note the concerns of cattlemen.

"Growth, or should I say the speed of this growth, is unprecedented and may have caught people off guard."

Seeking cooperation

Ebke, a Daykin, Neb., producer, cautioned the situation of higher corn prices based on tight supplies may last another year or two. He told NeCGA members to support cattlemen for fair pricing of their grain.

"We will continue to work with them," Ebke said. "If we continue to work together, to understand each other, I do not think there will be those who will turn against us."

One area Ebke asked NeCGA members to work on was to continue to bring input to NeCGA leadership ideas on the shape of a farm bill anticipated to pass in fall 2007.

"Corn grower input will be important to the success of the farm bill and it will be up to all of us that it will be successful."

Echoing those comments was Ken McCauley, president of the National corn Growers Association, who was a special guest at the NeCGA meeting.

McCauley said new House Agriculture Committee chairman Collin Peterson, D-MN, will offer a new way of thinking from the former chair, a southern Republican. Peterson is from a large corn state which should be positive for NCGA.

"I don't think our approach will change, but I do think the focus of the new House ag chairman will be a change from the previous chairman. I can think we can fit right into that new focus point," said McCauley, a White Cloud, Kan., producer. "However our new farm bill ends up we can make good investment for corn growers."

No apology for profits

McCauley told NeCGA that they have nothing to apologize for about how they profited from the previous farm bill and that they should all work hard to make sure their industry remains profitable.

"There are those who think we got a better deal than other crops from the last farm bill, but I think the corn price fell a lot more than other crops," said McCauley. "We want to make sure that we have a farm bill we can rely on, with an adequate safety net and support that won't be challenged by other countries."

A recently released NCGA farm bill proposal seeks a revenue assurance farm program, based on total revenue per acre rather than the price of corn and having a trigger for a loan deficiency payment off of it, McCauley said.

"The variable rate producer can't always take advantage of the LDP, but they can always take advantage of the direct payment because that will never change," McCauley said. "We think we can help the variable rate producer by averaging the LDP and the countercyclical payments together on a countywide basis. That would mirror the LDP scenarios.

"Different harvest dates have changed over the years and there are lots of other things involved when the LDP hasn't worked. We tend to remember when the LDP has worked for us over the years, such as '05 when Katrina hit. We want to provide the best safety net we can."

Livestock support

McCauley recognized that NeCGA and Nebraska Cattlemen have had recent controversies over the price of corn and how it affects the livestock industry. McCauley gave credit for NeCGA for its efforts in supporting the livestock industry.

"You work hard to keep your livestock producers informed. That's important," McCauley said. "A lot of states say they want to support their livestock producers but you put the rubber to the road and show them what you are doing to help them. It's very critical that we show them that there is a supply of corn, but not necessarily cheap corn anymore.

"The livestock producers have benefited from cheap corn prices. I think they can benefit from high corn prices too."

McCauley said the current situation of high corn prices may be a good time to talk with younger people about making a return to the farm.

"It's a very good time for young people. They can come back and see there is a profit potential for them," McCauley said. "The price of corn makes that happen. We should stick up for ourselves and not apologize for the high price of corn."

At the state level, with its high turnover of senators, incoming president Randy Uhrmacher told the group that NeCGA leaders have been working to inform these new members on issues almost as soon as their election was confirmed.

"We realize that the 2007 legislative session will be a learning experience for many," Uhrmacher said. "We anticipate water, tax relief and school topics to take up most of their time again this year."

Tax law changes ahead?

Almost guaranteeing a change in the state's tax structure was Gov. Dave Heineman, R-NE. Now elected to a term in office in his own right, Heineman aims to repeal the state estate tax.

"Nebraska is a high tax state and I'm committed to reverse that," said Heineman to a round of applause during a general session. "Policemen and teachers pay the same rate as Warren Buffett.

"We'll do our part to address the disparities that income and estate taxes bring. We will repeal taxes this year."

At the national level, incoming Rep. Adrian Smith, R-NE, said he would work for assist producers in a new farm bill, hopefully as a member of the House Agriculture Committee.

"Virginia Smith served all 16 years of her time in the House as a member of the minority," the Gering Republican said. "She was very effective. Hopefully, I can be as effective."

NeCGA awarded outgoing Rep. Tom Osborne, R-NE, its 2006 Golden Ear Award. It is presented annually to recognize and thank individuals for their contribution to agriculture, the corn industry, and the NeCGA.

The NeCGA board of directors also elected new officers for 2007 following the conference. The new officers are Uhrmacher, Juniata, president; Brandon Hunnicutt, Giltner, vice president; Larry Mussack, Decatur, treasurer and Steve Wiese, Wilber, secretary. Ebke; Curtis Rohrich, Wood River; and Dennis Scamehorn, York were the at-large directors elected at their meeting.

Biotech wheat boost

Meanwhile, down the hall at the Nebraska wheat Growers Association meeting, the incoming president of the National Association of wheat Growers gave a brief speech about his goals for 2007.

John Thaemert, a Sylvan Grove, Kan., producer, said he would seek disaster assistance, a fair 2007 farm bill, assistance in making railroads offer competitive pricing for grain transportation, and finding ways to make wheat more competitive with other crops for the profitability of the farmer.

"We will have a new farm bill in 2007. I like to call it the Food Security Act," said Thaemert. " We hope to include legislation on dedicated energy crops, biotechnology and trade--keeping the food in food aid."

Thaemert especially concentrated on creation of biotech wheat to increase production, specifically crops that can be used for purposes such as pharmaceuticals.

"We are years if not decades behind other crops in biotechnology," Thaemert said. "If you lose a tool like that in your toolbox, you lose opportunity for profit.

"If we want to relegate wheat to where oats and barley are in this country, then let's keep up this up. What has so much more potential for wheat growers than biotechnology? Let's work to unlock that potential."

Among resolutions passed at the Nebraska Ag Classic:

--NeCGA called for opposition to legislate dust and odors produced by agricultural operations.

--NWGA called for opposition to any reduction of grain use for ethanol.

Larry Dreiling can be reached by phone at 785-628-1117 or by e-mail at ldreiling@aol.com.

Date: 12/27/06

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