Farming & Your Freedom

In front of a backdrop of criticism of U.S. farm subsidies by our world trade partners, American producers are worried about what a cut-back in those "entitlements" might mean for their future operations. No one is really sure how our ag sector would fare if the guv'ment rug were literally pulled out from under it.

With that curtain of fear enveloping the industry, it should be good news that some politicians want to expand mandates for clean-burning ethanol motor fuels. More business would mean more corn sold, more potential profits for an industry that certainly has had its ups and downs, regardless of the subsidy issue.

For many, if not most farmers, subsidies have become a way of survival and their removal is not taken lightly. Politicians know this, and they know that although the ag segment is small, it is mighty, kind of AARP-like in its ability to stir the political waters.

For many, last week's announcement that a bipartisan group of U.S. senators, guided by two former chairmen of the Senate Agriculture Committee, have introduced a bill that would require oil companies to sell a minimum of eight billion gallons of renewable fuels by the year 2012, is great news.

The senators, Harkin of Iowa (D) and Lugar of Indiana (R) have 21 sponsors for their bill, 11 Democrats and 10 Republicans. Senate Majority leader Bill Frist is on board, too! Would that these heavy-hitters can make the thing fly.

During the last session of Congress, the National Corn Growers Association along with other farm organizations, pushed for the idea, unsuccessfully. Then, it was an aspect of the energy bill that never made it out of the Senate.

This may be a good year to approach such a bipartisan bill. Even though the Congress is decidedly Republican in nature and power, recent action has seen an odd phenomenon: Republicans versus Republicans. In many arguments, Republicans, especially in the Senate, seem to line up against each other on issues of governance, leaving the Democrats as a sort of third party. Not good for the Democrats, but a way for some measure of check and balance to take root in a solidly one-party legislature.

Interestingly, the Harkin/Lugar bill is a stand-alone piece of legislation, floated on the idea that it could be passed into law on its own if necessary, although chances are it will become part of the next big try to get an energy bill. Some senators want to see an aggressive schedule in place for increasing the renewable fuels standard requirement to eight billion gallons. Also last week, a senate committee created a RFS that requires the amount of ethanol to be used in the U.S. reach six billion gallons by 2012, up from the current five billion.

Farm organizations find the eight-billion-gallon standard for RFS attractive. They think such legislation would create demand for surplus farm commodities, help pave the way for lower farm subsidies, improve the environment (especially now that MTBEs are illegal) and reduce dependence on foreign oil.

The political tussle over clean air, renewable fuel resources, and a level playing field for U.S. farmers in a world of agricultural crocodiles, makes it difficult to get an energy bill passed (more government) and it makes it difficult for those who would cut or remove subsidies (little farmers will starve?) to get their points across.

Admittedly, a new RFS would be a great boon to corn farmers and certainly the growing biodiesel industry will perk up and work to get its share, but for parts of American agriculture, such as cotton farming, subsidies really remain a make or break proposition. While corn and soybean producers go merrily to market with their renewable fuel crops, cotton farmers struggle to eke out a living on hard-scrabble land. Many other U.S. commodities are in the same boat, especially with the fierce foreign competition.

The trick in Washington is going to be protecting ALL farmers while also protecting the environment with support for clean-burning renewable crop-fuels. I'm not saying the politicos are not up to it, but the record in recent years has been, well, spotty. Time will tell.

I'll see ya!