Corn growers say 'myths' hurt farm bill talks
When Senate and House negotiators resume their talks Tuesday over a new farm bill, the American Corn Growers Association wants it to be more selective about what types of agricultural data it considers.
The Washington-based association says that lawmakers trying to craft a new farm bill have been receiving too much bogus information, which has resulted in the delays that have prevented Congress and President Bush from approving a new law.
"There are too many myths, falsehoods, lies, legends, fabrications, untruths and fairy tales being perpetrated on America's farmers during this farm bill process," association President Keith Dittrich said.
Specifically, he cited three so-called facts that many lawmakers are using while considering the bill.
Dittrich insists it is not true that lower price support rates increase exports and farm profits.
He also disputes the belief that higher price supports result in overproduction and that lower price supports cause lower production to bring supply in balance with demand.
"These myths are being used as unqualified arguments to force lawmakers, and the nation's farmers, to settle for lower support rates," Dittrich said.
The association contends since 1979, price supports for corn have been lowered by more than 60 percent while exports have remained stagnant at 1.9 billion bushels. The price paid farmers also has fallen 60 percent.
Also since 1979, U.S. corn production has increased by nearly 50 percent, despite the dwindling price supports.
Dittrich also said that agriculture differs from other sectors of the economy because farmers do not reduce production when supports or prices are lowered.
"We can't use low price supports and low prices paid to farmers as a form of Darwinian supply management," he said. "It doesn't work and it devastates rural America."
While both the Senate and House have approved their own versions of a farm bill, the two sides have reached only a tentative agreement on a single bill. Members of a conference committee are scheduled to meet Tuesday afternoon in Washington in hopes of completing a bill that could be approved by Bush this spring.
Genetic corn
Swimmers with the environmentalist group Greenpeace blocked a Mexican harbor of Veracruz to prevent a ship transporting genetically modified corn from the United States.
The "Sea Crown" was delivering 40,000 tons of genetically engineered maize and activists say they were trying to prevent the further contamination of the Mexican corn crop with genetic varieties developed in the U.S.
Late last year, Mexico confirmed indigenous varieties of maize in 15 of 22 communities tested positive for traits of genetic varieties of corn.
Greenpeace said it believes a ban on all U.S. genetically modified maize imports would be justified. But they note Mexico officials have failed to take any such action, thereby warranting their own protest acts.
Ag Department grants.
The Agriculture Department will provide nearly $2 million in grants to projects promoting local Internet dial-up service in six states.
Money is coming from a new federal program for rural utilities service meant to finance local Internet access in areas where it currently does not exist.
Projects receiving funding are in Anchorage, Alaska; Collinston, La.; Spruce, Mich.; Wawina, Minn.; Columbia and Cape Girardeau, Mo.; and Kerrville, Texas.
Changing times
Maybe gramps was a really good farmer but being a "good farmer" is no longer enough, says Michael Boehlje, an agricultural economist at Purdue University.
To be successful, farmers now also must be good managers, he says. They must know not only how to manage costs, productivity and efficiency in operations, but also how to manage people, and handle money and relationships as well as devising strategies to cope with change, he told a recent Midwest Women in Agriculture conference.
The whole food industry is changing, he pointed out, and farmers must be aware of the changes and adjust their operations to fit into that picture. If farmers continue just producing commodities, they will be in trouble because commodity profits are always very small.
(by E.W. Kieckhefer)
Crop report
The National Agricultural Statistics Service reported Monday 2 percent of the winter wheat crop is headed, compared with 1 percent last week, 2 percent at this time last year and a 3 percent average for the past five years. Thirty-one percent of the crop is in good or excellent condition, with 35 percent fair and 34 percent poor or very poor.
For corn, 2 percent of the crop is planted, compared to 2 percent last year and 2 percent for the past five years.
For cotton, 6 percent of the crop is planted, compared to 4 percent last week, 6 percent last year and 5 percent for the past five years.
For sorghum, 14 percent of the crop is planted, compared to 12 percent last week, 12 percent last year and 13 percent for the past five years.
For rice, 13 percent of the crop is planted, compared to 9 percent last week, 14 percent last year and 13 percent for the past five years.
For sugarbeets, 3 percent of the crop is planted, compared to none last week, 6 percent last year and 7 percent for the past five years.
For spring wheat, 2 percent of the crop is planted, compared to 1 percent last week, 3 percent last year and 5 percent for the past five years.
For barley, 5 percent of the crop is planted, compared to 2 percent last week, 6 percent last year and 7 percent for the past five years.
For oats, 9 percent of the crop is planted, compared to 4 percent last week, 3 percent last year and 12 percent for the past five years.
Grain prices
Grain futures were mostly lower at the close Monday on the Chicago Board of Trade.
Soybeans were down on a lack of new information and ongoing rain that has delayed early corn planting, which could force many farmers to shift to more soybeans.
Corn rose on weather conditions, which may produce a smaller-than-expected crop.
Wheat fell as traders awaited Agriculture Department winter wheat ratings, expected to decrease to make the crop less valuable.
Oats fell on pressure from soybeans and wheat.
The prices:
Soybeans: May 4.58 off 7 1/2, Jul 4.60 3/4 off 8 1/4, Aug 4.59 1/2 off 7 1/4, Sep 4.55 1/2 off 6 1/2.
Corn: May 2.01 1/2 up 1, Jul 2.08 up 1, Sep 2.14 1/2 up 3/4, Dec 2.23 up 3/4.
Wheat: May 2.73 off 4 1/4, Jul 2.79 3/4 off 3 3/4, Sep 2.85 1/4 off 3 3/4, Dec 2.96 1/4 off 3 3/4.
Oats: May 2.09 1/2 off 7 1/4, Jul 1.62 3/4 off 6 3/4, Sep 1.36 1/4 off 6 3/4, Dec 1.37 1/4 off 4 1/2.
