Creighton Study Indicates Farm Economy Growing
The latest study of the Corn Belt economy shows continued growth thanks to stronger crop prices and the benefits of biofuels. A report by Creighton University shows the 9-state region surveyed continues to indicate significant growth with healthy new hiring across the region. The report says strong farm income and biofuel production has created growth. Agricultural land-price growth weakened from May but remains strong, the report added. The study focuses on non-urban, agriculturally dependent areas from the Rocky Mountains to the Great Lakes. It found that despite some slowing from earlier this year, ethanol production and high farm income continue to drive the region’s economy into very healthy territory. Each month, community bank presidents and CEOs are surveyed regarding economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included.
Kind Amendment Picks Up Wall Street Journal Endorsement
The Wall Street Journal has stamped its position on the farm bill in a July 6 editorial, supporting Rep. Ron Kind’s (D-Wis.) farm bill proposal. In a July 5 Insider, NCGA reminded growers this bill would drastically cut spending on the commodity title. The Insider also outlines the details of the Kind-Flake amendment.
Kind offered a similar amendment to the 2002 farm bill; it failed by only 26 votes. His bill has support from both parties as well. If the Wall Street Journal endorsement—among several others—is any indication, Kind has wide support in non-farming circles for his proposal.
The Wall Street Journal editorial can be found on www.wsj.com. There is a subscription fee.
“The Bush Administration has proposed modest reforms that are worth supporting. But a more ambitious effort is being pushed by an unlikely pair of House Members, Wisconsin Democrat Ron Kind and Arizona Republican Jeff Flake. They'd phase out most direct cash subsidies to farmers and reroute funds into ‘risk management accounts.’
The Kind-Flake bill would steer tax dollars away from the wealthiest agribusinesses, while funding a safety net for moderate-income farmers facing real financial strain due to bad weather, low prices, or crop failure. Only farmers with gross incomes of less than $200,000 would be eligible for aid.
This all makes sense. But in order to get bipartisan support for this new aid formula, liberal groups are demanding new social welfare and environmental programs that could end up replacing one giant waste of money with another. So the Kind-Flake bill provides $6 billion for ‘conservation programs’ and makes payments tied to ‘environmental performance.’
It funds 300,000 new acres of wetlands preservation, a Grasslands Reserve Program, wildlife habitat, and anti-urban-sprawl program designed to wall off "millions of acres of farmland" from development. If there is anything more objectionable than paying farmers to grow food, it's paying them not to grow anything.
The danger is that Congress's agricultural barons -- who favor the status quo, only more so -- will pocket the new subsidies and drop the reform. The bill that passed the House Agriculture Committee recently is a classic in bipartisan logrolling. Messrs. Kind and Flake have a better idea -- and let's hope that in these flush times liberals and conservatives can unite on the House floor to slash subsidies to all but the poorest farmers.”
Quotables:
“We are going to have a lot of acres planted into corn ... but nothing's in the bin yet.”
Secretary of Agriculture Mike Johanns, reflecting on last week’s Acreage Report.
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