May 5, 2000

Relatively few dollars are spent on agriculture research in Texas, putting the state at a competitive disadvantage, a Texas A&M University professor testified recently before the Texas Legislature’s Joint Agriculture Policy Committee.

Products of Texas Agricultural Experiment Station research return 30 percent to 50 percent annually on the investment of public funds. For every $1,000 of farm gate receipts, Texas invests $4.51 in research.

Yet, Texas is "in the lower quartile in terms of southern states agricultural research spending," Dr. John Beverly, deputy director of the Texas Agricultural Experiment Station, said.

In his testimony about the need for more biotechnology research, Beverly suggested that the results from such science is part of the value-added issue being considered by the committee.

"Neutraceuticals, or providing the drugs we need through foods to compliment health needs, for example, provide specialized niche markets to pursue, and that’s value-added," Beverly said.

He suggested the emerging biotech industry in Texas could be wedded to the hi-tech computer industry concentrated around Austin for mutual benefit of the industries and consumers.

"With the information technology and science in the Texas A&M University System and other universities in the state, the capability of marrying this technology with information technology is immense," he said.

Beverly said this is vital because Texas doesn’t have a competitive environment in that its unique soils, plant diseases and weather conditions often converge to cause problems in the growing seasons that stretch from the Rio Grande Valley to the northern Panhandle. He said biotechnology advances could bring about improvements that enable agriculture to be sustained on such large land masses.

In other testimony, Dr. Ed Smith, an economist with the Texas Cooperative Extension, said agriculture makes up 13 percent of the state’s total economy, and in 1995 comprised more than 20 percent of the work force in 193 Texas counties.

Smith said low commodity prices and drought have plagued both farmers and ranchers across the state. The drought of 1999 that has continued into 2000 has cost Texas producers $361 million so far, he noted. The 1998 drought resulted in $2.1 billion in producer losses, while the drought of 1996 resulted in $2 billion in losses.

Low prices continue for many commodities, including feed grains, wheat, cotton and rice, with the livestock sector benefitting from cheap grain prices, Smith said.

Citing cooperative efforts with various Texas commodity producers, Smith noted out of five cotton farms monitored, three are rated in poor condition. Out of three rice farms, two are in poor condition and out of 15 feed grain farms, over 75 percent are in poor condition.

The economist said risk will continue to be a major problem for Texas agriculture, calling for a continuation of state funding for risk management programs, drought preparedness and more attention to preserving the state’s natural resources.