Farm Bill Will Be Hammered Out in Coming Months
By
Laura Skillman
 LOUISVILLE,
Ky., (Jan. 10, 2007) – In the coming months federal lawmakers
will begin hammering out a new five-year farm bill. Changes in
Congress from the recent midterm elections, international trade
agreements and the federal deficit will all factor into the new
bill.Larry Jones,
an economist from the University of Kentucky College of
Agriculture, said the general feeling among economists and other
farm policy watchers is that when the dust settles the bill will
look much like its 2002 predecessor. However, no one really
knows.
“It’s a very fluid
situation,” he said.
The midterm election
resulted in chairmanships of both the Senate and House
agricultural committees shifting from southern lawmakers to
upper Midwesterners. What impact this will have on farm
legislation is not yet clear. However, the traditional farm
program crops of corn, wheat and soybeans are the main crops in
the Midwest, adding to the argument that little will change,
Jones said.
On the other hand, U.S.
Rep. Nancy Pelosi, the incoming Speaker of the House, is from
California where many of the nontraditional program crops are
grown. These producers are expressing a desire for their crops
to also be a part of farm legislation.
During a recent speech
to the Kentucky Farm Bureau Federation, U.S. Secretary of
Agriculture Mike Johanns noted that 60 percent of farmers in the
United States do not receive the direct cash support that farm
programs are often noted for, because they do not grow “program
crops.” While often referred to as specialty crops, these crops
are now equal in value to program crops, he said. This issue has
been discussed at many farm bill forums in the past few months
and some programs for these specialty crops could be a part of
the 2007 farm bill.
“We have the chance
every few years to evaluate what policies have been working for
us and what policies might be improved,” Johanns said. “I am a
firm believer in providing federal support for agriculture. I
think it is a very wise federal investment. It is also critical
that we consider whether agricultural support is equitable,
predictable and beyond challenge.”
Steve Riggins, UK grains
marketing specialist, noted that prices are good and are
expected to remain strong for traditional program crops so the
government payout likely will be smaller for these programs.
That may allow some additional spending on new program crops or
conservation programs without adding to the overall cost of farm
programs.
Another issue that could
come into play in the coming months is the large federal
deficit. Farm policy is expensive so the question of
availability of funds could become a factor, Jones said.
Farm programs are also
impacted by international trade. The most recent round of talks
for the World Trade Organization, called the Doha Round, fell
apart primarily over the issue of farm subsidies in the United
States and other developed counties.
Johanns said the 2007
farm bill must protect America’s farmers while allowing for fair
international trade. International trade is vital, he noted with
exports expected to hit a record $77 billion in 2007. In
Kentucky, $1 billion of the state’s $4 billion cash farm
receipts are exported.
UK’s Jones
noted that in order to get trade negotiations back on track,
negotiators’ will have to decide what they are willing to give
up. |
