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Capitol Comment
by Senator Kay Bailey Hutchison
Sound Policies Support Texas Agriculture
November 2, 2007
America’s heritage is as a nation of farmers, and agriculture remains essential to our prosperity. In Texas, we know this first hand. Our state leads the country in many areas of production, and agricultural revenue bolsters our economy by more than $19 billion annually. Approximately 80 percent of our land is involved in some kind of agricultural production, and more than 90 percent of those operations are run by families. As your U.S. Senator, I have worked hard to ensure that federal legislation meets the needs of our farmers and ranchers. In the coming weeks the Senate will consider reauthorization of many vital agricultural programs, and I will work with my colleagues to maintain the policies that have been good for Texas.
The Farm Bill that I supported in 2002 provided a crucial safety net for our Texas producers and carefully balanced support for commodities, conservation and nutrition. At the time the bill was passed, commodity prices were low, which cut deeply into farm profits and discouraged investment in agriculture. Family farms without large capital reserves were in an especially difficult position. In addition, exports of American agricultural goods to overseas markets had declined for five consecutive years. Largely as a result of the policies in the 2002 Farm Bill, commodity prices have risen and exports have grown each of the last five years. In fact, exports have now reached record highs, more than $68.6 billion in 2006 and an expected $79 billion this year. These gains are immensely beneficial to our international trading position and our domestic economy.
Many key provisions of the 2002 Farm Bill expire this year, and must be renewed. As we debate the new bill, I will strive to preserve the positive aspects of existing policy. However, there are some who would prefer to strip our farmers and ranchers of crucial support and have introduced measures to reduce current payment levels. Our farmers and ranchers face distinct challenges, and failing to assist them could have dangerous consequences.
As President Dwight D. Eisenhower once said, “Farming looks mighty easy when your plow is a pencil and you're a thousand miles from the cornfield.” Farmers and ranchers often assume large amounts of debt to be able to grow the food and fiber products we use each day. Yet the average farmer receives only nineteen cents for each dollar we spend on food, at home or dining out. And Texas farms and ranches are generally larger than those in others states, with higher input costs and capital outlay requirements. Without a strong federal safety net, many farmers simply could not afford to produce. The programs I have supported in the U.S. Senate have helped make agriculture economically viable and have spurred new investment in this vital sector.
Farmers and ranchers are not the only ones who depend on reliable production. Without proper planning and support for our producers, food shortages in times of disaster like the 2005-2006 droughts could become a real danger. A lack of farm goods means much more than empty shelves or high prices at the store. Reliance on foreign agriculture could jeopardize our economy and the safety of our national food supply. Texas is the nation’s biggest cattle producer and a leading supplier of wheat, rice and citrus. We grew more than 33 million bushels of wheat in 2006—enough to make 2.45 billion loaves of bread! Our leaders have a responsibility to ensure the flow of these foods to America’s dinner tables.
These issues were brought into sharp focus last year, when Texas endured more declared disasters than any other state, including the most devastating wildfire in our history. I am pleased that the current draft of the new Farm Bill establishes a $5.1 billion emergency fund to assist our farmers and ranchers in the wake of major disasters. After future catastrophic events, the U.S. Department of Agriculture would be able to draw immediately from this fund to help our producers recover, rather than wait for Congress to approve additional funding requests. In the past, emergency requests have been laden with earmarks and unrelated spending, because lawmakers know such bills will pass with very little opposition. Producers who suffer production losses would be eligible for benefits such as 75 percent of the value of lost livestock.
During consideration of the new Farm Bill, I will support measures that recognize the importance of agriculture to our nation’s continued health and prosperity. The 2002 bill helped Texas producers provide vital food and fiber products to American families and our international trading partners at a lower cost than the previous Farm Bill five years earlier. We should learn from this success, and maintain the policies that help our farms and ranches thrive.
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