Return to TFB Main Page
Return to Current Edition
Texas Agriculture Archive

April 18, 2003

Not the time to cut ag spending

By Stewart Truelsen

Whether it's combat rations for U.S. soldiers or humanitarian food supplies for the Iraqi people, American farmers are involved in producing food critical to the mission in Iraq. Here at home, food security is an important component of national security. With that in mind, it doesn't seem to be a good time to tinker with the stability of American agriculture by slicing deeply into the budget for federal farm programs.

Farm Bureau leaders spent time on Capitol Hill recently trying to persuade members of Congress to stick to their long-term commitment to agriculture. Federal budget cutting is well intentioned but misdirected at agriculture. House and Senate conferees are determining the outcome.

The House-passed version of the FY04 budget resolution contains cuts in agriculture of about $19 billion over 10 years. The Senate-passed budget resolution does not require budget cuts, but includes language that could reduce payment limits. The money the House wants to take away is critical to maintaining agricultural stability and food security, but it doesn't amount to much in terms of the nation's economy.

Our nation's income is roughly $11 trillion a year, as figured by the GDP, and the federal budget is $2.2 trillion a year. Agricultural spending is less than 1 percent of expenditures. Why create problems in agriculture and for our food system as a whole that will cost more to address later?

American agriculture is facing a more difficult time now than it was when the 2002 Farm Security and Rural Investment Act was crafted. Unfavorable weather conditions, a strong dollar, record-high input costs and mediocre farm commodity prices are some of the problems. The war and threat of terrorism are new, more recent negatives. The Iraqi war apparently has caused our government to lessen its pressure on Europe to lift its four-year moratorium on biotech crops.

Another disappointment is the failure by World Trade Organization (WTO) member governments to meet a deadline for establishing a framework to reduce agricultural subsidies and import duties. Access to markets is critical to American agriculture. The point is that some of the hoped-for improvements in agricultural markets are not occurring.

The Iraqi war also caused some commodity prices like gold, silver and oil to jump but had no such effect on farm commodities. However, the war exposed our continuing energy supply vulnerability, and here is where agriculture can help. Ethanol and biodiesel are farm-grown transportation fuels that help reduce our dependency on foreign oil. This is a time to be supportive of agriculture.

There are approximately 1 billion acres in farms in this country. Some of the money farmers receive from farm programs goes into soil and water conservation and other improvements to the environment, including preserving wildlife habitat.

When you look at the big picture of the U.S. economy and agriculture, the money spent on farm programs and the economic safety net for farmers is really seed money. It is paid back many times over. The damage done by cuts in the agriculture budget would outweigh the gains of any savings.

Stewart Truelsen is the director of broadcast services for the American Farm Bureau Federation.