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JUST VISITING--Congressman Jerry Moran, R-KS, made a quick stop at the 2007 Kansas Commodity Classic before the day's events got underway. Congressman Moran shook hands with many of his constituents from the First District who were in Salina, Kan., for the annual event.

Ring in the New Year with a new farm bill

by Doug Rich

"I can't think of a better time or a worse time to debate a farm bill than now," Barry Flinchbaugh, K-State Research and Extension, said at the Kansas Commodity Classic Nov. 13 in Salina, Kan. The Classic is the annual convention of the Kansas Corn Growers Association, Kansas Association of Wheat Growers, and the Kansas Grain Sorghum Producers Association.

"We will achieve record net cash farm income this year at $87.5 billion," Flinchbaugh said. "That makes it very difficult to protect the safety net under farm income. It is the worst of times from that standpoint."

"On the other hand it should be the perfect time to reform farm policy like we did in 1996. Freedom to Farm was the biggest overhaul of farm policy since the Agricultural Adjustment Act of 1933. Prices were high, reform was possible and we got it done. Although I will argue that the proposed optional revenue target plan could be a really big deal in reform."

Flinchbaugh said the farm bill debate is bogged down in partisanship and feuds between commodity groups. Congressman Colin Peterson (D-MN), chairman of the House Agriculture Committee, was able to get his version of the farm bill out of committee before the August recess with unanimous support of both the Democrats and the Republicans.

"That is how it should be, farmers first and partisan politics second," Flinchbaugh said. "That is how Pat Roberts and Dan Glickman functioned when they were on the House Ag Committee."

Once the bill reached the floor of the House, Madam Speaker (Nancy Pelosi, D-CA), got involved, Flinchbaugh said. Pelosi attached a $4 billion tax increase to the farm bill.

"The debate became partisan and most Republicans voted against it," Flinchbaugh said.

The Senate did finally get their version out of the Ag Committee with a unanimous vote.

"Now it is on the floor and we are about to witness a free-for-all," Flinchbaugh said.

The reason for this free-for-all, according to Flinchbaugh, is a lack of leadership in the Senate.

"Harkin (Tom Harkin, D-IA) is chairman of the Ag Committee and he can guarantee one vote," Flinchbaugh said. "Baucus (Max Baucus, D-MT), chairman of the Finance Committee, has a multitude of revenue raising schemes, Washington-speak for tax increases."

The Senate has been debating a permanent disaster fund, which Flinchbaugh said is not needed if they pass a counter cyclical revenue program.

"They are the same thing," Flinchbaugh said.

"Commodity program payments are entitlements just like Social Security," Flinchbaugh said. "They are contractual arrangements and the government must honor them. Conservation and energy programs are not entitlements. That is why the budget battle will eventually be over those programs."

Right now the only thing holding their feet to the fire is the permanent legislation. This is the Agricultural Adjustment Act of 1938 with some permanent amendments made in 1949. When the 2002 farm bill expires, this legislation becomes law.

"This legislation has old-time non-recourse loans, price supports that will absolutely work to our detriment in a global economy," Flinchbaugh said. "It will put our grain in storage and the rest of the world will sell their grain."

"I have argued for years not to repeal the permanent legislation because it at least forces them to do something," Flinchbaugh said.

Although the farm bill debate is on the front burner for most people in agriculture right now, Flinchbaugh said there is another very important issue. That is immigration.

"The only thing I see on the horizon that could cause the ag economy to collapse in the next five years is immigration," Flinchbaugh said. "Fifty-three percent of all the work done on America's farms is done by illegal immigrants. When it comes to this issue our political system has failed."

Historically, farm bills have been signed right before Christmas. Flinchbaugh expects this one to be on the president's desk by the end of December, with President Bush signing it on New Year's Eve in Crawford, Texas.

Doug Rich can be reached by phone at 785-749-5304 or by e-mail at richhpj@aol.com.

11/26/07
2 Star EK\1-B

Date: 11/21/07


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