Farm News 02/24/06 Leaders boast ag’s future By RANDY MUDGETT- Managing Editor SPENCER — The mood of the 22nd annual Northwest Iowa Ag Outlook Show in Spencer Tuesday was upbeat despite experts’ opinions that farm profits will drop in 2006. Highlighting the show was an Iowa agriculture secretary forum in the afternoon session, and while the five candidates spoke to the crowd about the future of agriculture in the state as being bright, the candidates were quick to point out that in order for the next generation of Iowa farmers to be successful, today’s farmers must work together and improve Iowa agriculture. “The question has been raised many times across this state on the importance of livestock in agriculture,’’ said Bill Northey, R-Spirit Lake. “I believe that the expansion of livestock in the state is crucial to the future success of Iowa and farming as a whole.” The candidates were not posed questions from the audience during the ag secretary forum, rather, each candidate spoke about themselves and why they should be the next ag secretary in Iowa. Dusky Terry, D-Greenfield, said cleaning up Iowa’s waterways should be important to the next ag secretary. “We have 140 impaired waterways in the state and I know Iowa farmers can do a better job of helping clean those up by using more conservation methods.” ] The word “conservation”î came up in nearly every speaking presentation during the day. Mike Duffy, Iowa State University Extension economist, said conservation will be a key component of the 2007 farm bill. “Farmers will be asked to conserve the soil, reduce runoff and they will have to start thinking about conserving fossil fuel energy if they hope to compete with countries like Brazil.” Brazil was the early morning topic of discussion by David Kruse, president of Brazil Iowa Farms. Kruse said while farmers in Brazil cannot compete directly with American farmers now because of the amount of money U.S. farmers receive in government payments, American farmers who are now choosing to invest in South American operations are able to diversify and turn a handsome profit farming abroad. The question of what shape the next farm bill will take has not been determined yet, and Duffy said many in the government, including Ag Secretary Mike Johanns, are unsure of what level of assistance farmers will receive in the next farm bill. “THis is the first time a president has included a whole chapter dedicated to agriculture in his budget as (President George W.) Bush did this year,’’ Duffy said. “The two things the budget report laid out was farmers do not benefit from farm subsidies and the president was clear to point out that there must be better avenues to render assistance to farmers via the current system which is trade distorting for other nations.” Mark Leonard, Republican candidate for Iowa ag secretary from Holstein, said policy is the key to providing new markets for Iowa farmers. “Look what has happened with ethanol. We can make more value-added products in Iowa, using Iowa grain and meat grown here. That is a leader’s responsibility to help grow Iowa agriculture, not just regulate.” The next generation Today, 50 percent of all Iowa farmland is owned by people over the age of 65. Duffy said less than one-half of these farms have in place some sort of estate plan in place. Although, when asked if the family knows who will farm the land or who will own the land once they have died, people say that two-thirds of all farmers will either will the farm to someone in the family or they have a plan devised to keep the farm in the family. “The toughest part is getting the next generation into farming,”î Duffy said. “People have the interest, but they don’t have a plan, especially when land is worth $4,000 an acre.” Duffy, who is the director for the ISU Beginning Farmer Center in Ames, said the students themselves have formed a club called “The Young Farmers Networkî which is a group of young people who desire to own and operate an Iowa farm someday. We have the young people who want to do it, now we have to setup plans on how to help them ease into farming,”î Duffy said. “And, that is not an easy thing to talk about now when most farmers are facing breakeven or below profits.” Duffy was quick to point out that he believes Iowa farmland values have likely reached a plateau now, especially in the light of higher interest now forming some people’s decision on purchasing farmland. Also, the prospect of the federal government reducing farm subsidy payments to producers in the next farm bill has many in the banking industry cautiously optimistic. “We are at a crossroads in Iowa agriculture right now,”î Duffy said. “If farm payments are reduced, and right now it looks as they will be, Iowa farmland and cash rent values will have to come down to balance it out. Farmers are being squeezed and they must seek a higher valued crop as that may be the only answer to replacing the government financial support. Farmers will have to change and conserve energy.”