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Report card time

Well, we've shot seven months of this year, and here we sit at mid-summer wondering what the Obama team is going to leave as its legacy. Many of the USDA jobs at the state level are being filled this month and Secretary Tom Vilsack has just staffed most of his departments. The word "acting" is coming off the title of several directors and some new ones are still lost in the long hallways on Independence Avenue. Is the USDA really going to be the controlling agency over farmers and ranchers or will there be a parade of government folks that show up to examine your livestock, produce and records in the years ahead?

If I had to offer a grade for the U.S. Secretary of Agriculture, I'd give him a "C" for the term, so far. He hasn't championed much. His strongest pro-agriculture statement in my presence was: "I told them to stop calling it swine flu!" He has not fought for USDA jurisdiction over farmers under climate change and food safety legislation. He has adopted the administration's view on bailout and healthcare and has beaten the term "green jobs" to death. Food issues seem to overshadow production issues, as he's been very public in his work to encourage inner city gardens but only listened and made obligatory comments to the struggling dairy and pork industries. There have been the longstanding school lunch purchases but they always look good and do little to help the market.

Charisma is not this secretary's strong suit. He is smart and he loves to examine issues in depth. He looks like he's more comfortable writing a 20 page brief than giving a 20 minute speech. I knew this going in, as he was Iowa's governor for 8 years, but I like a Secretary of Agriculture who acts like he is working in support of farmers and ranchers. Bob Bergland and John Block, from the tumultuous times of the 1970s and '80s, took a lot of grief and a few eggs from angry people and yet they won the respect of those who had some business sense and saw their policies as good for farmers and beneficial to consumers.

Now we are in an era where the government acts like food is independent of farmers. That the grocery store, as the source of our production, permeates the thinking of policy makers. We are in a time when those who dedicate their lives and livelihoods to delivering a high quality product are suspected of polluting the water, fouling the air and causing global warming. "The American food supply is the safest in the world, but it needs to be safer," is the message verbalized by lawmakers. There will be regulation during this administration; but will there be incentives? To me, a Secretary of Agriculture is a leader, appointed by government and adopted by industry, who encourages the affected to buy in, set a course and solve their problems with combined private-public solutions.

Right now there are two sectors of the agricultural economy that are caught in a serious cost-price squeeze. A farm leader in the dairy region of Iowa told me last week that farmers are talking to their banker before cutting corn for silage. The chilling truth is that there may not be any cows left to feed it to next winter. In terms of enterprise-threatening prices, the hog farmer is not far behind. The downturn in the overall economy reduced consumer buying power and the H1N1 virus destroyed consumer confidence, so the projected return to profitability last May never happened. Now, sows are being culled, which is increasing the meat supply and prices are going even lower. Wholesale and retail interests continue to blame ethanol subsidies as the reason grain prices are up and livestock profitability is down. The Obama Administration has kept the renewable fuels policy in place, as it fits their energy plan. Corn farmers are doing what they can to produce a huge crop this year and may wind up with low enough prices to receive an ACRE payment under the 2008 farm legislation.

All of this requires leadership and encouragement by the agriculture department. What we are seeing is a focus on environment, healthcare and energy. Farmers can help greatly, on both ends of these priorities, but they need a cheerleader more than a regulator. When you are losing money and don't see a way to return to profitability, your best option is to quit; hence the old phrase: "When you realize you are in a hole, stop diggin." When growers quit, others consolidate, and the few get fewer. That is exactly the opposite of the expressed desire of this administration.

Right now we are accelerating every trend that was criticized during the election. Priority one: stabilize this economy. Then ask whether the best course of action is to put more regulatory pressure on agriculture without incentivizing producers to adopt new policies.

Good Luck, Mr. Secretary. You come from the right place. You know the legal and legislative landscape. Listen to the president, argue for agriculture in cabinet meetings and do what's right for your constituents.

Editor's Note: This is Ken Root's 35th year as an agricultural reporter. He grew up on a small farm in central Oklahoma and started his career as a vocational agriculture teacher. He worked in Oklahoma, Kansas and Missouri as a broadcaster and was the original host of AgriTalk. He has also been the executive director of the National AgriChemical Retailers Association in Washington, D.C. and the National Association of Farm Broadcasters in Kansas City. Ken is now the lead farm broadcaster at WHO and WMT Radio based in Des Moines, Iowa. He has been a columnist for HPJ and Midwest Ag Journal for eight years.


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