America's farmers deserve credit for feeding consumers

On March 20, the U.S. recognized its farmers, ranchers and related industries as we celebrated National Agriculture Day. These are historic times for American agriculture as the increased demand for feed, food, fiber and fuel from our rural resources has never been higher. There are simply too many factors impacting American agriculture today to even attempt to explain all of them here, but I want to share some facts we need to understand to gain an appreciation for this vitally important industry.

America's farmers produce for a global economy that is growing each day. The world's population will increase from 6.2 billion today to 7.5 billion by 2020. Not only will there be new mouths to feed and people to clothe, but improving economies and lifestyles around the world are increasing the demand for high quality grain and livestock products.

American farmers and ranchers are the most productive in the world. Two out of every three bushels of corn grown in the world and about one-half of the global soybean crop, are harvested from U.S. farms. They produce one-fourth of the world's beef supply and one-fifth of its grain, milk and eggs. American consumers benefit from this production, as we spend 9.3 percent of our available income on food--the lowest percentage in the world. Not only do we have an abundance of food, we also have a wide range of choices that include sections in our stores dedicated to organic, ethnic and regional preferences.

Agricultural commodity prices are at historically high levels due to a number of domestic and global supply and demand factors. The U.S. already competes with emerging nations like China and India for oil on the global market and this competition will continue to heat up, driving prices even higher. The U.S. ethanol industry, using corn as its raw ingredient, has grown dramatically as we move towards a national energy policy that will lessen our dependence on foreign oil. Technology is rapidly being developed that will allow us to build a bio-economy using a variety of crops and plant products. I cannot predict what this new industry will look like even five years from now. Without a doubt, I know that America's farmers will be at the heart of it.

Some would argue that high corn prices lead to high food prices, but that is only partially true and an over-simplification of a much more complex issue. For each $1 spent on food, America's farmers and ranchers receive 19 cents. Processing, packaging, transportation, marketing, and other costs take the remaining 81 cents. It is not as simple as those who promote the "food versus fuel" debate would like you to believe.

According to recent studies conducted by credible third-party sources, when the cash price of corn is $5 per bushel, the corn used to produce:

... a dozen eggs contributes 35 cents to the cost (feed for the chickens)

... a gallon of milk contributes 16 cents to the cost (feed for the cow)

... two liters of soda contributes 8 cents to the cost (corn sweetener)

... a pound of hamburger contributes 90 cents to the cost (feed for the beef animal)

I went to our local grocery store and bought the four items listed above. I spent $9.16. Adding the prices from above, corn producers received $1.49 from my bill, or 16.3 percent of the total. There is no doubt about it, corn prices are up and they have contributed to a portion of the increased price of food. However, recent studies have shown that energy prices have a significantly greater impact on food prices than does the price of corn. Let's be fair about it and not lay all the blame for higher food prices on our farmers.

Agricultural products are America's #1 export and provide a net positive trade balance of at least $17 billion annually that offsets negative trade balances from other sectors of our economy, including a negative trade balance of $12 billion resulting from crude oil imports. One of every three acres of grain grown in the U.S. will produce crops destined for the export market. Our weaker dollar makes U.S.-grown commodities a better buy and our export customers are taking advantage of the fact that their currencies buy more of our grain than they used to. Simply put, export demand is up. Here at home, ag products account for 20 percent of the total U.S. Gross Domestic Product.

American farmers are the original environmentalists in our country and were "green" long before it was in vogue. They have every right to be proud of how they manage our natural resources. Recycling is a way of life on the farm. Livestock bedding and waste have always been returned to the soil and they continue to be, in a responsible manner that builds productivity and keeps our rural streams and lakes clean. Farmers are good stewards of our soil and water and they use conservation tillage and no-till planting practices to keep soil where it belongs--on the field and out of our streams. In fact, U.S. farmers have dedicated 1.3 million acres of farmland to grass waterways that stop erosion and filter run-off before it reaches streams and rivers. To give you an idea of what that means, if all the waterways on American farms were combined into a single bright green strip one mile wide, it would extend from Chicago to Los Angeles. What a photo that would make from outer space! In addition, biologists estimate that agricultural lands provide habitat for 75 percent of our nation's wildlife.

National Agriculture Day is a fitting time for all of us to pause and give credit to an industry that is sometimes misunderstood and certainly often taken for granted. In fact, any of us who eat, clothe ourselves, or fuel our cars on a regular basis should pause when we do and think of the American farmer or rancher who made it all possible.

--Chet Boruff, chief executive officer, The Association of Official Seed Certifying Agencies

3/24/08
4 Star NE\4-B

Date: 3/19/08

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