Pork industry an illogical quagmire

November 1st, 2007 Alan Guebert

Before a months-long summer slips into a months-long winter, it’s time to use this week or two interlude – formerly called fall – to sweep my office.
First off, the October Successful Farming magazine, the annual issue listing the nation’s “Pork Powerhouses,” shows that the 20 largest pig producers in the U.S. now own 3,124,700 sows, or more than three times what the big pig boys had just 14 years ago when Successful Farming began tracking the industrialization of American pork production.
This unimaginable scale means that just 20 operations own more than half of the pork mommas nationwide and, according to Successful Farming, now “produce 55 percent to 60 percent of all U.S. pigs” each year.
Illogical. Given the corporatization of American hog production, can any independent hog grower tell me why they still pay the federally-mandated pork checkoff when over half the benefits gained by the tens of millions in annual checkoff spending flows to just 20 or so companies and their shareholders?
Surely these big boys are now big enough to pay for their own product research, market development and manure management strategies.
Another question: If 60 percent of all U.S. pork can be traced to producers whose number equals the number of your fingers and toes – fingers and toes, incidentally, which more than 130,000 hog farmers used to exit pig production since Successful Farming began compiling the “Powerhouse” database in 1994 – shouldn’t the National Pork Producers Council be renamed the National Pork Producers Club?
Tax exemption. Questions also arise why the brothers Salazar, U.S. Sen. Ken and U.S. Rep. John, both Colorado Democrats, are pushing for an unlimited federal estate tax exemption on farmland.
Each has a bill in their respective chamber that will cause more harm than good, according to the nonpartisan Center on Budget and Policy Priorities.
First, cites the center, despite the brothers’ well intentions, the latest Internal Revenue Service statistics show that only 1,659 farmers nationwide owed any estate taxes in 2000 when the exemption was just one-third today’s level.
Second, and more important, an unlimited estate exemption for farmland “could easily be abused by wealthy individuals whose primary occupation is not farming,” explained the center, and “have a truly perverse effect: it could reduce the number of family farmers and make it more difficult to keep farms within families.”
Can you say Ted Turner?
Abuse measures. To be fair, the legislating Salazars include anti-abuse measures in their bills, like a recapture clause for tax-only investors. Such speed bumps, however, are unnecessary if Congress simply makes permanent some level of the currently rising exemptions – $4 million per couple in 2007, $7 million in 2009.
At $7 million per farming couple (make it $10 million, I don’t care), virtually no farming family would ever pay estate taxes after 2009 and few, if any, off-the-farm fat cats would compete with farmers to purchase farmland because of a cozy tax shelter on it.
Ah, but doing the simplest, and, often as not, the right, thing is an act this Congress seems incapable of performing. The Senate farm bill, hopefully out of the Ag Committee by the time you read this, is easily the handiest example of this worsening inability.
Crazy. Not doing the right thing was the one thing that drove A.V. “Al” Krebs crazy.
A journalist’s journalist, Al spent over 50 years getting the facts of farming and food on the record for numerous newspapers and magazines. The pictures his words painted were always accurate and often unflattering.
The culmination of his tireless reporting was the definitive Corporate Reapers: The Book on Agribusiness. Oct. 9, Al, at 75, died of liver cancer. His book, however, will live forever.
(Alan Guebert’s Farm and Food File is published weekly in more than 75 newspapers in North America. He can be contacted at agcomm@sbcglobal.net.)

Horses dumped like unwanted cats

October 11th, 2007 Susan Crowell

When a Kentucky reader stopped by Farm and Dairy’s booth at Farm Science Review, we chatted a bit about the extreme dry conditions down there, and the lack of pasture and feed for livestock.
“And for horses,” he added. It’s so bad that some horse owners, unable to pay for higher priced feed and hay, were simply turning their horses loose, he said.
Now that’s an unjustified reason for abandoning a horse, but the American Veterinary Medical Association reports this week that efforts to close the three U.S. horse processing plants have also led to increased abandonment and neglect – not the result the Humane Society of the United States was looking for when it pushed for the plants’ closings.
The last U.S. horse slaughter facility in operation, located in Illinois, closed Sept. 21.
Background. No one is wild about the slaughter of horses, particularly for producing meat for human consumption. (Horsemeat is considered a delicacy abroad.)
Current legislation, reintroduced in both the House and Senate this year, would make the slaughter of horses for human consumption illegal. The measures would also ban the shipping, transporting or sale of horses for slaughter for human consumption. Both bills are identical to legislation introduced last Congress. The House version passed last year; the Senate version was never considered.
The American Veterinary Medical Association is not pro-horse slaughter, either, but opposes bills banning slaughter because it says there’s no place else for the 100,000 horses that go unwanted each year in the U.S.
“If they think that by passing one of these bills they’ll get rid of the problem of unwanted horses, they’re simply fooling themselves,” said Mark Lutschaunig, a vet and director of the association’s governmental relations division.
Lutschaunig said the AVMA has confirmed reports of horses being abandoned or transported to Mexico, where there is no USDA oversight of the horses’ welfare or humane slaughter.
According to the USDA’s weekly livestock export summary for Oct. 4, so far this year, more than 31,000 slaughter horses have been exported to Mexico, compared to 6,391 in the first nine months of 2006. The last week of September alone, 1,300 slaughter horses crossed the border.
The Houston Chronicle ran a Page 1 article last month about the conditions of horse slaughter in Mexico and it’s not a comfortable story. At least at the U.S. plants, horses were killed quickly and painlessly, according to comments from animal welfare expert Temple Grandin, who was quoted in the article.
We hear the local stories of unwanted horses here at Farm and Dairy, too. Just about every month, the newsroom gets a call from a new horse rescue effort, begging for publicity (and funding).
Now the concept of eating horse meat is appalling to me, but there has to be some humane end-of-life option for unwanted horses. If the end use was not human consumption, could we not agree that a slaughter facility is a necessary component of the industry?
Obviously, many would say no, but I haven’t heard any solutions from them.
* * *
And just in case you were wondering what’s going on with the farm bill: The Senate ag committee postponed its farm bill deliberations yet again, and is now scheduled to begin marking up the farm bill Oct. 23.
The National Coalition for Food and Agricultural Research reports the Senate leadership is losing patience and has said the House version would be brought up on the floor if the ag committee doesn’t tender a farm bill before the Thanksgiving recess.
(Farm and Dairy Editor Susan Crowell can be reached at 800-837-3419 or at editor@farmanddairy.com.)

Marriage of energy and agriculture creates a new buzz

September 27th, 2007 Susan Crowell

LONDON, Ohio – Whether you were walking through the exhibits or taking in an educational session at this year’s Farm Science Review, one thing was clear: It’s a good time to be in agriculture and a lot of that has to do with energy technology.
Solar energy. Wind power. Anaerobic digesters. Biofuels and biomass. Carbon credits. Energy alternatives.
It’s huge. USDA’s Gale Buchanan, undersecretary for research, education and economics, called this energy boom “a new paradigm for agriculture.”
Buchanan, former dean of the University of Georgia’s College of Agricultural and Environmental Sciences, spoke during the Sept. 18 Vice President’s Luncheon, hosted by Bob Moser, Ohio State’s vice president for agricultural administration and dean of the College of Food, Agricultural and Environmental Sciences.
The USDA leader called the intersection of energy and agriculture “exciting” and predicted it will dwarf every other area of agricultural development over the last 200 years.
Ohio could be poised to lead this development because of its mix of natural resources, technology and capital, Buchanan said. “This is a great agricultural state. This is also a great industrial state.”
“Agriculture will be front and center in this effort.”
OSU cheerleader. Incoming OSU president E. Gordon Gee, who stepped to the luncheon podium to enthusiastic applause, returned the love.
Remembering his first trip to the Farm Science Review 17 years ago, Gee said he learned a lot about Ohio during that visit.
“It gave me a sense of this place, this people,” Gee said.
After all, he added, “we are a land grant university.”
“It’s the power of that passion that I’ve missed.”
Gee was Ohio State’s president from 1990 to 1997 and served as chancellor at Vanderbilt University since 2000. He returned to lead OSU this fall.
Gee said the vice president’s luncheon, which draws the “who’s who” in Ohio agriculture, is “a gathering of a belief system that will continue to drive this great university.”
And without a great university, he continued, “one cannot have a great state.”
We need agriculture. That segued into Gee’s introduction of Gov. Ted Strickland, who also voiced his commitment to Ohio agriculture.
“Ohio cannot be all that it can be without agriculture,” Strickland said. “We need to value agriculture and understand its importance.”
He said the creation of his Ohio Food Policy Council underscores his commitment to improve the state’s systems of food production and distribution.
Energy economy. Strickland also used to podium to tout the Ohio Broadband Council and the Broadband Ohio Network, which he created in July by executive order with a goal of expanding access to high-speed Internet service in all 88 counties, and his energy policies.
In August, Strickland introduced his Energy, Jobs and Progress plan to generate additional energy and encourage investment in transmission and distribution of that energy. The plan also spotlights advanced energy technology and renewable energy sources, pushing the use of alternative fuels and seeking a $1 billion investment in “next generation” energy technology.
He made the link to agriculture through energy sources like anaerobic digesters and ethanol plants.
“This is a new day for agriculture and energy can help lead the way,” Strickland said.
Not so fast. But Purdue University ag economist Allan Gray said some of the current influx of federal funding at energy research, particularly cellulosic ethanol, is just “throwing dollars at science when we don’t know if we can do it.”
Gray joined Ohio State ag economists Carl Zulauf and Brent Sohngen in a farm bill debate Sept. 18 during the Review.
He said any meaningful energy policy will not come from the farm bill, adding the energy title of the farm bill is “almost a waste of time.”
(Farm and Dairy Editor Susan Crowell can be reached at 800-837-3419 or at editor@farmanddairy.com.)

Agriculture Secretary Mike Johanns resigns; Charles Conner is replacement

September 27th, 2007 Andrea Zippay

SALEM, Ohio – The son of a dairy farmer left Washington, D.C., last week, walking away from what he called a ‘dream come true’ to follow his heart home to Nebraska.
That man was Mike Johanns, and the dream come true was his nearly three-year appointment as U.S. Secretary of Agriculture.
Johanns tendered his resignation from the USDA post Sept. 19 and plans to run in 2008 for the U.S. Senate seat being vacated by Sen. Chuck Hagel, R-Neb.
Johanns served as secretary of agriculture since Jan. 21, 2005.
In the wake of the announcement, President George Bush appointed Deputy Agriculture Secretary Charles Conner as acting secretary.
Farewell. In the resignation letter, Johanns praised Bush’s leadership and vision and credited it with giving agriculture a strong foothold in the U.S. and international economies.
Johanns also credited the administration’s policies with creating the lowest farm debt-to-asset ratio in more than 45 years, farm family incomes well above the national household average, and strong conservation and nutrition programs.
Johanns, who leaves the Beltway while the 2007 farm bill is in its final stages of debate in the Senate, says he’s leaving that policy in “supremely capable hands” under Charles Conner and the rest of the USDA staff.
“Few people are as knowledgeable and insightful about farm bill policy,” as Conner, Johanns said.
Praise. In the White House Rose Garden Sept. 20, Pres. Bush shared with the nation Johanns’ decision to head home and reflected on his tenure in the department of agriculture.
“Mike has been an outstanding member of my Cabinet. I knew he would be when I asked him to become the Secretary of Agriculture,” Bush said, calling Johanns a decent and honest person who gets things done.
Bush also reflected on Johanns’ appointment and the practical farm experience he brought to Washington.
“I couldn’t have asked for a better Secretary of Agriculture.”
Reactions. Several farm groups spoke out to express their sense of loss in Johanns’ resignation, and also looked back on the steps he took to make the agricultural industry stronger.
“During Secretary Johanns’ tenure at the department he has shown an openness and willingness to travel to the countryside and listen to those who live, work and raise their families in rural America. I give him a lot of credit for that,” said Tom Buis, president of the National Farmers Union.
“While we didn’t always agree on the issues, he was an active participant in the process.”
Bob Stallman, president of the American Farm Bureau Federation, called Johanns “an ardent advocate for American agriculture’s ability to provide renewable energy” and a “bold proponent of giving farmers innovative technologies for food and fiber production.”
Stallman also said Johanns was “one of the most accessible secretaries of agriculture we have had in recent memory.”
The National Pork Producers Council and National Cattlemen’s Beef Association referred to Johanns as a supporter and friend of their respective groups, and lauded his work on free trade agreements and recovering lost export markets.
“Mike Johanns has been a great friend to the National Cattlemen’s Beef Association and the cattle industry, as well as to production agriculture as a whole,” said John Queen, president of the National Cattlemen’s Beef Association.
“We hate to lose a friend like that.”
Difficult decision. In his resignation letter, Johanns called his tenure at USDA “an opportunity of a lifetime” and his decision to leave a difficult one.
“As I have often noted, I never dreamed of becoming secretary of agriculture as a child because it seemed so far removed from our 160-acre farm [in Iowa]. I hope young people growing up on farms and in rural communities today realize that no dream is too big in America.”
Replacement. USDA files say Charles Conner has been deputy secretary of agriculture since May 2, 2005.
He grew up on a corn, soybean and cattle farm in Benton County, Ind., and holds a degree in agricultural economics from Purdue.
Before joining USDA, he tracked agricultural issues for the National Economic Council, was president of the Corn Refiners Association, and served as a staff member with the Senate Committee on Agriculture, Nutrition and Forestry.
(Reporter Andrea Zippay welcomes feedback by phone at 800-837-3419 or by e-mail at azippay@farmanddairy.com.)

Johanns: ‘Agriculture is stronger than ever before’

September 27th, 2007 Other News

U.S. Department of Agriculture Secretary Mike Johanns resigned from his post Sept. 19.
Below is the full text of his resignation letter to President Bush.

Dear Mr. President,

It has been a great honor to serve you and the American people as Secretary of Agriculture for nearly three years. After careful thought and difficult deliberation, I am writing to inform you that I have decided to pursue a new opportunity to serve this great nation. Please accept my resignation effective today, Sept. 19, 2007, and my gratitude for the distinct privilege to serve in your Cabinet.
Under your leadership and vision, American agriculture is stronger than ever before in history. Your presidency has had a profoundly positive impact on the lives of Americans in both rural and urban communities.
Farm equity, now at $2 trillion, has increased $200 billion per year for the past several years. The debt-to-asset ratio is the lowest in more than 45 years. Projected 2007 net cash income is a record high $86 billion. The average farm household income is projected at $81,500 this year, nearly $20,000 above the average household income in the U.S. Overall farm balance sheets reveal a strong and growing farm economy.
Agricultural exports are expected to set a fourth consecutive record this year, with a projected value of $79 billion. The strong stance you’ve taken with international leaders in relation to beef trade has led to the re-opening of more than 40 key markets to U.S. beef. This year, U.S. beef exports have increased 18 percent over last year and negotiations are underway to achieve additional market openings.
Your compassion toward the hungry is evidenced in the 70 percent increase in funding for USDA nutrition programs during your presidency. One million additional school children are being served lunch under our program; 700,000 women, infants and children have been added to the WIC program; and nine million additional low-income Americans are participating in the Food Stamp Program. One in five Americans is now touched by the nutrition safety net you have built.
Because of your ambitious conservation goals, for the first time in living memory, America is gaining wetlands instead of losing them. Overall, you have more than doubled the number of acres enrolled in USDA conservation programs, now totaling a remarkable 184 million acres.
I also want to thank you for your direction related to the 2007 farm bill. Your suggestion to talk to as many farmers, ranchers and stakeholders as possible in developing the Administration’s 2007 farm bill proposal proved very wise. As you know, their comments formed the foundation of our proposals, which focus our programs while providing unwavering commitment to U.S. agriculture. Nearly 200 newspaper editorials nationwide have applauded the Administration’s vision. Several of our ideas are now part of the House-passed farm bill and my hope is that even will be adopted by the Senate.
I can assure you that I leave the farm bill finalization in supremely capable hands. Deputy Secretary Chuck Conner has been intimately involved in the deliberations – from the development of our proposals to his attendance at virtually every hearing during the House mark-up. Few people are as knowledgeable and insightful about farm bill policy. He is supported by some of the most dedicated civil servants in the federal government.
Mr. President, you should be very proud of the men and women of the U.S. Department of Agriculture. A cornerstone of your leadership is recognizing that people are our greatest resource. You have a gold mine at USDA. It has been my honor to work alongside them.
On a very personal note, I’d like to express my deepest gratitude for your confidence and support. For a farm boy from Iowa, this truly has been an opportunity of a lifetime. As I have often noted, I never dreamed of becoming Secretary of Agriculture as a child because it seemed so far removed from our 160-acre farm. I hope young people growing-up on farms and in rural communities today realize that no dream is too big in America.

Mike Johanns

Women in ag conference in Lexington

September 27th, 2007 Other News

LEXINGTON, Ky. – Women involved in agriculture or those interested in agriculture, rural living and local foods should attend the annual conference of the Kentucky Women in Agriculture, Oct. 31 to Nov. 2 in Lexington.
The focus of this year’s meeting will be “Local Foods – Growing Our Heritage” and will include workshops, presentations and roundtable discussions.
Preconference workshops will be conducted Oct. 31 and have limited availability.
Conference activities begin Nov. 1 with featured speakers.
Sessions. Concurrent sessions will run throughout the day offering participants options such as pioneer foods, preserving barns, cooking for your family, selling to restaurants and retailers, building female leadership and legislative and farm bill updates.
Nov. 2 events include roundtable discussions on Annie’s Project, composting, the 2010 World Equestrian Games, slow foods, heirloom seeds and plants, marketing goats, U.S. Department of Agriculture programs, sustainable agriculture, high tunnel production and season-extending techniques and qualifying for federal, state and local grants.
A computing made easy course will be offered at the same time as the roundtable discussions.
Advance registration is required and limited to 24 registrants.
The conference will be held at the Crowne Plaza-Campbell House in Lexington. Special conference rates are available if reserved before Oct. 1.
Call the hotel at 877-227-6963 and ask for the Kentucky Women in Agriculture rate. Participants should preregister for the conference by Oct. 1 to avoid late fees.
More information. Fee information and registration forms, as well as a full itinerary for the conference can be found at the www.kywomeninag.org.
For other questions, contact Inman or Ashley Osborne at info@kywomeninag.org
or call 877-266-8823.

The short, unhappy life of Doha

September 13th, 2007 Alan Guebert

In one episode of the 1970s television series M*A*S*H, an eminently paranoid Army intelligence officer tags flag-waving Frank Burns a Communist sympathizer because Burns subscribes to flag-waving Reader’s Digest.
“Drop the a, e, r, and s from its title,” explains the whacko officer to a shaking-like-a-leaf Burns, “and you have ‘Red Digest,’ comrade.”
The scene comes to mind after reading press accounts of a late August farm bill forum in North Dakota.
Trade talks. At the gathering, House Ag Committee Chairman Collin Peterson, guest of Sen. Kent Conrad, a senior Democrat on the Senate Ag Committee, was asked to explain how the 2007 House farm bill fits the Bush administration’s negotiating strategy in the Doha Round of endless world trade talks.
It fits fine, offered Peterson, because U.S. farm program spending under the 2007 House plan drops from a now World Trade Organization-legal $19 billion per year to an estimated $8 billion per year, or well within the 60 percent cut the Bush administration quickly conceded to World Trade Organization talkers a year ago.
A bigger story, Peterson asserted, is the now-80-percent cut in program benefits the White House wants “to

Holmes County Farm Bureau sets policies, goals for the year ahead

September 6th, 2007 Contributing Writers

NASHVILLE, Ohio – Holmes County Farm Bureau hosted its first farm tour in a number of years, and it was well received, according to Tim Brumme, chairman of the farm tour committee.
The tour stopped at dairy farms, an Alpaca farm, a grain farm, a furniture business, pottery maker, a honey/pasture-raised beef and poultry operation and the fire station, ending at the 2007 Holmes County Farm Bureau annual meeting.
Challenges. Darrell Kick, president of Holmes County Farm Bureau, told those attending that one of the biggest challenges the county is facing is raising the consumer’s awareness of where their food comes from.
“As generations move further and further away from the farm, the public doesn’t understand what we do,” he said.
“The Our Ohio program shows consumers we still have family farms; they are just bigger. They need to understand what we do and how we do it.”
Susan Brinker, organization director for the county, stressed the importance of members’ involvement in the organization and commended the county on a good membership campaign, reaching gain in active members, but falling just shy of total gain.
Legislation. Brent Porteus, state trustee for Holmes, Licking, Coshocton and Knox counties, stressed the importance of communicating at the grass-roots level with state and federal legislators.
He urged Farm Bureau members to contact their representatives and tell them to support the farm bill passed by the House.
Porteus also gave the group an update on what is happening at the state level.
Following the work of the strategic task force, the Ohio Farm Bureau Federation has established several goals to make the organization more member friendly.
These goals include marketing farm bureau to achieve growth; increasing grass-roots involvement; allowing the counties to focus on what is important in their area; expanding relationships with Nationwide and other organizations; protecting personal property rights; influencing the farm bill, trade, labor and energy issues; and speaking out on environmental issues and animal agriculture.
Policies. Members voted to approve county policies, including new regulations to slow the development of farm land; supporting the cleaning and dredging of Killbuck Creek to prevent flooding in the county; and supporting a school funding system that spreads the financial burden to both property and nonproperty owners.
State policies approved by the members include encouraging ODNR to develop methods to aggressively thin the deer population in the county; and supporting a constitutional amendment that would protect personal property rights and curb the abuse of eminent domain.
National policies include supporting a ban on importing agricultural products from countries that use chemicals banned in the U.S.; encouraging subsidizing the development and research of new or alternative fuels to speed their entry into the marketplace; supporting hay crop insurance at the national level; and support a local Farm Service Agency in every county.
Elections. During the meeting, members elected county trustees: Denny Snell, Erika Schuch and Mike Sprang; and delegates to the 2008 OFBF annual meeting: Steve Straits and Tim Brumme.
Brinker recognized county committee chairmen for achieving star awards, including: Tim Brumme, policy development; Angi Brumme, promotion, education and image; Jackie McKee, information; Steve Straits, government affairs; Erin Kick, Nationwide; and Larry and Pat Lang, safety.
Action leaders for 2007-2008 will be Jackie McKee, communications; Erica Schuch, organization; and Tim Bromme, public policy.

September will pack several punches

September 6th, 2007 Alan Guebert

In the summer’s waning warmth after Labor Day, my mother would order her child army into the big garden of my youth to gather the year’s final flush of vegetables.
Half-ripe tomatoes, onions, cucumbers, red beets, kohlrabi, green beans, zucchini, lima beans, broccoli, peas, cauliflower, carrots and whatever else had survived the family’s summer dinner plate was then peeled, podded, sliced, diced, cooked and canned into a concoction Mom called “the last of the garden.”
And, because each September brought a different mix of what remained in the garden, each winter brought a different combination of tastes and smells to what constituted Mom’s veggie mash.
No way. Its effect on me, however, never changed: I didn’t then, don’t now and never will raise a fork to it. Sorry, Mom, but your last of the garden tasted less like honest thrift and more like paint thinner every time we made it.
Like back then, Labor Day marks the beginning of Congress’ trek back to its weedy Capitol Hill patch.
What our political gardeners have left to do before the snow flies – the 2007 farm bill, immigration reform, an energy bill, extending presidential trade authority, to name the biggies – easily out-yields the low-hanging fruit both chambers picked this spring and summer.
The Senate’s version of the farm bill, guessed to arrive by the third week of September, remains on pasture.
Will its chief shepherd, Iowa’s Tom Harkin, get the additional $6 billion he wants for conservation programs – over half of which is for “working lands’ conservation” to replace the $4 billion in Conservation Security Program cash he said Republicans “cannibalized” from the 2002 farm bill?
Production. Harkin’s conservation plans, he explained in late July, foresees an estimated now-idled 4.6 million acres moving out of the Conservation Reserve Program and into crop production by 2010.
Since most of that marginal or fragile land will likely end up in corn and soybean production to feed the biofuels frenzy, Harkin believes a working lands conservation program is needed now more than ever.
The size of that single request, however – and how the completed Senate farm bill is welded onto the already-laden, already-passed House version – is sure to bring another veto threat from the White House.
Would the White House, given its barren legislative year and especially bloody August (so-long Karl, bye-bye Alberto), risk alienating two of its few remaining political allies, farmers and ranchers, over a few billion bucks in a farm bill?
No, but with the 2008 election already seen as a Republican wash-out, the White House may have little to lose to spotlight what it views as Democratic excess.
Preoccupied. As is often the case in agriculture, all this maneuvering will come when farmers have their eyes fixed on harvest rather than politics. And, according to early indications, harvest will be huge.
Southern-tier corn producers are shelling anywhere from 5 bushels to 15 more bushels per acre – at exceptionally low moisture levels – than estimated just a month ago.
If the trend holds across the broad buckle of the corn belt, USDA’s Aug. 10 record-shattering production estimate of 13.1 billion bushels will be topped and its forecasted seasonal price range of $2.80 to $3.40 per bushel will be dropped.
Those potentially lower market prices would likely slow the ethanol juggernaut because above-$3-corn would be a near necessity to cover corn’s fast-climbing seed, fertilizer, fuel and land costs for 2008.
Shock. Or, as one 20,000-acre crop consultant reported to me in late July, “Farmers will be shocked at anhydrous costs next year; think $600 a ton, not $500.”
Wow; that would be even more stomach-churning than Mom’s September brew.
(Alan Guebert’s Farm and Food File is published weekly in more than 75 newspapers in North America. He can be contacted at agcomm@sbcglobal.net.)

Carroll Co. sticks up for its FSA office

August 30th, 2007 Janelle Skrinjar

CARROLLTON, Ohio – The message from Carroll County residents rang loud and clear Aug. 27: Don’t close our FSA office.
A public meeting at the Friendship Center in Carrollton brought out about 160 people to discuss a plan that would consolidate Carroll County’s Farm Service Agency with the Tuscarawas County FSA in New Philadelphia, Ohio.
At the meeting, a panel of state office staff and Ohio Farm Service state committee members listened to residents give a long list of reasons why their FSA office should stay right where it is.
The plan. The Carrollton office, which works with about 320 operators, is one of six Ohio FSA county offices being considered for consolidation. Other counties up for consolidation are Perry, Erie, Warren, Lorain and Montgomery.
All of these counties operate under shared management and would be eliminated under the proposed restructuring plan.
Dorothy Leslie, chairperson of the Ohio FSA state committee, said the goal of the restructuring is to make all FSA offices more effective and efficient.
When USDA asked Ohio to review its 72 county FSA offices last year, counties were picked for consolidation based on factors like average total workload, shared management, the number of farms represented, distance from other FSA offices and administrative costs.
The state also looked at how much money could be saved through consolidation.
Leslie said the number of FSA programs has increased drastically in recent years, placing a burden on local program technicians. Combining two offices would allow the technicians to back each other up and relieve some of that pressure.
“We’ve got to protect our staff, too,” she added.
There would be no job loss under the consolidation and Carroll County’s two program technicians would be transferred to Tuscarawas County.
Carroll County farmers could use the Tuscarawas facility or chose to get their services from another nearby county.
Not impressed. But farmers who spoke up at the meeting said the plan just won’t work and it’s critical for the Carroll County FSA office to stay in Carroll County.
Many who spoke said the office is already efficient and effective, so there’s no need to consolidate in order to reach that goal.
“These girls are already very efficient at getting it done,” said Monty Morrison, a beef and sheep producer.
Dairy farmer Mark Lumley asked the state to consider the stress and lost work hours for farmers if they have to drive to FSA offices in Tuscarawas County.
“Think about the efficiency of those of us out here,” he said, pointing to his fellow audience members.
Local farmer John Davis said that while the state may save money with the proposed plan, farmers will lose money in terms of travel expenses and lost work hours. Plus, moving the office would take people away from the county, instead of bringing them in.
“You’re taking a step backward for us,” he told the panel.
Local leaders also took a stand for the FSA office.
County Commissioner Bob Herron said the future of farming will suffer without a local FSA resource.
“If we’re going to keep our family farms, we’ve got to take care of our young farmers, as well as old farmers,” he said.
Some farmers also worried that the decision has already been made and the public meetings won’t affect the outcome. However, Leslie assured the crowd that nothing has been set in stone.
“This is not a done deal,” she said.
Waiting. Meetings will be held in all six of the counties being considered for consolidation. The proposed plan may be revised based on feedback from those meetings, but regardless of the result, the process will likely take at least six months, according to John Stevenson, state executive director.
U.S. Rep. Zack Space said the 2007 farm bill includes a law that would ban the closure or consolidation of agricultural offices for one year after a new farm bill is implemented. The purpose, he said, is to give farmers a chance to adjust to the new bill.
However, the state FSA office had to act under current laws and the 2007 farm bill probably won’t be passed in time to affect the proposed restructuring plan. And it’s unlikely the farm bill would be retroactive, Space added.
Roy Klopfenstein, a member of the Ohio FSA state committee, closed the meeting with encouragement, telling producers that the state committee is not their enemy.
“I hear what you said. I understand what you said,” he told the crowd.
For those who didn’t attend the meeting, written comments on the proposed plan will be accepted until Aug. 31.
(Reporter Janelle Skrinjar welcomes feedback by phone at 800-837-3419, ext. 22, or by e-mail at jskrinjar@farmanddairy.com.)