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Agricultural and Food Policy
 Agri Outlook
Radio
Number 96
Policy: Arkansas U.S. Senator Blanche Lincoln - Senate Agriculture Committee's Farm Package a Victory for Arkansas Producers (5:28 minutes)
Audio/Video Script:
Dr. Bobby Coats
Extension Economist
University of Arkansas, Division of Agriculture
U.S. Senator Blanche Lincoln sees Senate Agriculture Committee's farm package
as a victory for Arkansas producers, because the package provides a "must-have"
strong safety net for farmers and makes critical investments in nutrition,
conservation, rural development, and energy priorities. I’m Bobby Coats
Extension Economist University of Arkansas Division of Agriculture.
The U.S. Senate Ag Committee’s new farm bill was produced in the most
challenging economic and policy setting experienced in decades, with the
economic setting creating a turbulent and difficult policy setting. A reasonably
stable global economy with strong demand for many commodities and accompanying
strong commodity prices created the perception that global economic fundamentals
would support significant if not radical changes to traditional farm policy. The
problem with that belief lies with huge farmer production cost increases since
2002 as prices rationed machinery and inputs in a robust global economy. Another
key factor over time the global economy continues to cycle from being extremely
strong to being dangerously weak and this is producing huge swings and volatile
commodity prices. The price uncertainty and production cost inflation is
extremely damaging to producers ability to cash flow. Thus, the need for the
safety net remains critical. Without question farm policy is transitioning our
producers away from traditional farm policy at a rate I consider a dangerous pace.
And finally, agricultural and fish protectionism is alive and well in country
after country around the world.
On the new Senate farm bill written by the Senate Agriculture Committee,
which is now expected to be considered by the full Senate the week of November
5, Senator Lincoln, who serves on the Senate Agriculture Committee, says, "I am
proud the Senate Agriculture Committee came together in a bipartisan way to
approve a strong and balanced bill that respects the various geographic regions
of our diverse country," Lincoln said. "In 2002, we in Congress reinstated the
safety net our farmers were lacking. Now, as we see regular reports of unsafe
food and other products being imported into our country, the need for a strong
support system has never been greater. This bill demonstrates to our producers
that their government stands behind them."
The Senator said, "Throughout the year, I have held meetings with my Senate
colleagues in which, I have impressed upon them the fact that they shouldn't fix
legislation that isn't broken," Lincoln said. "My goal this year is to pass a
final farm bill that looks like the 2002 farm bill. The Senate Agriculture
Committee's package approved mirrors the 2002 bill."
The Senator makes the following points:
The Senator points out that the legislative package
continues the integrity of the income protection provisions of the 2002
farm bill.
In addition to maintaining the programs developed in 2002,
beginning in 2010, producers will have the voluntary option to
participate in a new Average Crop Revenue program. Senator Lincoln
expresses caution of unintended consequences with the new program,
believing a phase-in period will allow farmers to more clearly evaluate
the option.
In addition, the farm legislation commits at least $4.2
billion for nutrition programs to continue the fight against hunger.
Senator Lincoln is co-founder of the bipartisan Senate Hunger Caucus and
has worked with several anti-hunger organizations in Arkansas while
developing the nutrition title of the farm bill.
The legislation also invests an estimated $4 billion in
conservation programs, such as the Wetland Reserve Program, that would
otherwise expire.
The bill provides $400 million to promote economic growth
and create jobs in rural communities. This investment will help improve
access to broadband in rural America, as well as provide loans to rural
hospitals so that they in turn can provide the best care for patients
living in rural areas.
The legislation provides farmers, ranchers, and small
businesses in rural America the support they need to continue their
drive toward greater energy efficiency and developing renewable sources
of energy.
And finally, to view the chairman's mark of the farm bill and amendments
that were accepted by the Agriculture Committee, please visit
www.agriculture.senate.gov.
That is
www.agriculture.senate.gov.
This has been Bobby Coats Extension Economist University of Arkansas Division
of Agriculture.
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