May 5, 2000

Even with the advent of hard times for farmers and ranchers across the state, the future of rural Texas will continue to depend on agriculture, Texas Farm Bureau President Donald Patman testified recently before the House Select Committee on Rural Development.

Patman noted that over the last decade, technology has increased the number of people one farmer feeds and clothes from 100 to 129. The innovation, however, has not been altogether positive for agriculture-based rural economies, he said.

"One result of innovation and new technology is it now is possible to produce more food and fiber with fewer farm workers. The effect has been a migration of unneeded farm labor to the urban areas. As a result, rural businesses reliant upon this labor as customers have suffered," he told the committee.

The TFB president noted that innovation has also resulted in record-breaking production of food and fiber by U.S. producers, but a lack of access to foreign markets has caused almost record-low commodity prices.

"Couple the low commodity prices with prolonged drought in Texas, and the economic viability of many of our state’s agricultural producers is in jeopardy," he said.

Patman said ag-dependent communities are not only losing dollars, but also its young people, who are migrating to the urban areas in search of a more secure means of making a living.

"Texas Farm Bureau believes that rural communities should not abandon their agricultural roots because of the tough times for farmers and ranchers, but should instead recognize that opportunity still lies in agriculture," he said.

Patman emphasized TFB’s position that instead of diversifying away from agriculture, as many rural development advocates propose, opportunities from diversification within the agricultural industry should be explored.

"The industry of agriculture is more than the production of raw commodities. Biotechnology, manufacturing, processing, and commodity trading are interrelated with the agricultural industry," Patman explained. "Rural Texas has long depended on the most vulnerable part of the industry, the agricultural producer. As a ‘price taker,’ it is difficult for the producer to defend against risk. Even though there are risk management tools that provide some assistance, many producers are not fully educated with these tools and playing in the world market is a roller coaster. By diversifying into other sectors of the agricultural industry, rural Texas can create a more stable agriculture-based economy."

Patman pointed out that agricultural manufacturing and processing has historically been viewed as an area where Texas has lagged behind—processing less than 10 percent of what it produces—yet, no one seems to know why. Therefore, on behalf of the Texas Farm Bureau, Patman requested that the Texas Legislature fund a baseline study for the interim of 2002 (to be conducted by the Commissioner of Agriculture with the cooperation of other appropriate agencies) comparing the Texas business environment with those states which are successful in establishing and retaining agricultural manufacturing and processing.

"We would also recommend the study identify the effect that increased agricultural processing and manufacturing has on profitability of agricultural producers. Agricultural producers must be empowered to add value to their commodity," he said.

Patman highlighted wildlife as an important economic resource in rural Texas, generating income for landowners and communities. In order to stop the decline of bobwhite quail, the TFB president proposed a "Quail Initiative" for consideration by the Legislature.

"Our goal is a state-sponsored plan over a six-year period that involves research, education, and habitat restoration through cost-share. Improving quail populations will boost revenue to landowners and to rural communities with hunting and ecotourism and the endeavor should also be positive for rural real estate values."

Patman closed his testimony with comments on water policy.