Farm News, Monday September 12, 2016

Groups Support Heritage Foundation Farm Bill Report

The Environmental Working Group and the Union of Concerned Scientists gave their reactions to the Heritage Foundation paper on the upcoming 2018 Farm Bill. The Heritage report called for an end to commodity support programs and federal crop insurance, saying that farm programs should only help in times of deep crop losses. The Hagstrom Report says Environmental Working Group Vice President Scott Haber said the report confirms how far the “so-called safety net” has strayed from its intended purpose. “It’s to help farmers weather the ups and downs in agriculture, and not to guarantee a level of income that’s well above incomes in average American households.” He said the EWG doesn’t support all the recommendation in the Heritage Foundation report, but they are pleased that the report will force policymakers to examine these programs more closely. Mike Lavender is the Washington representative for the Food and Environment Program within in the Union of Concerned Scientists. He said, “The Heritage report highlights many of the ill effects of the current farm program.” Lavender said there must be continued support for farmers, especially when they need it most, but added, “That support shouldn’t come at the cost of incentivizing certain crops and practices over others or supporting the largest and wealthiest farm businesses over others.”

Ag Producers Cut Expenses by Nine Percent

Farmers and ranchers cut their production costs by roughly nine percent last year. A report in Successful Farming said the cuts were caused by an end to the agricultural boom and a resulting collapse in farm income. Farmers paid out a total of $362.8 billion last year, the lowest outlay since 2012 according to estimates from the USDA Farm Expenditures Report. The peak outlay for expenses was 2014, when farmers spent nearly $400 billion, just as commodity prices began a sharp decline. Average spending per farm last year was $171,000, down just over $15,000 from the previous year. Crop farmers were aggressive in cost cutting, lowering expenditures by $22 billion dollars, or 11 percent from the previous year. The biggest cuts were in equipment, fuel, and farm repairs and supplies. Rent was the biggest single expenditure and it dropped five percent from the previous year to $25.4 billion. University of Illinois Grain Economist Gary Schnitkey says farmers should expect marginally lower revenues from corn and soybean this year, with another drop in revenues in 2017. He said farmers will need to continue to cut costs, especially if they have a low amount of working capital.

Source:  NAFB News