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.”
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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.”