IFB Weekly: Most Recent Talking Points
Note: For IFB’s full comprehensive talking points, please contact your local county Farm Bureau or visit the Leaders’ Portal.
Update on Farm Bill (Nov. 3, 2023):
Headline messages:
- It is in all of our best interests to help farmers get through the rough patches: managing risk on the farm is critical to keeping food on tables across the country.
- We all depend on agriculture’s success, so it’s important for farmers and ranchers to be supported by strong farm programs as they face weather disasters, high supply costs and inflationary pressures.
- America’s public investment in agriculture through farm bill programs helps secure our food supply and keep our country strong with sustainable food, fiber and renewable fuel.
- The farm bill impact extends beyond the farm by protecting our nation’s food supply, providing access to nutrition for families facing hunger, advancing conservation efforts and spurring innovation through agricultural research.
Supporting messages:
- Failure to take any farm bill action before year’s end would cause serious disruptions: cutting-off enrollment in important safety net and conservation programs; pausing research; and reverting back to 1930s farm policy.
- We understand the realities of the legislative calendar and recognize that an extension may be needed to avoid serious disruptions, but we also urge Congress to move forward with a new farm bill.
- Much work has been done by the agriculture committees in both chambers over the past 18 months to lay the groundwork for improved farm policy and Congress should build on that work.
- The previous two farm bills included significant farm program reforms to ensure government support is market oriented and serves as a safety net. New improvements are needed to ensure farm programs address current and future realities.
- The farm bill has a long tradition of bipartisan support and now, more than ever, it’s important for lawmakers to work together to ensure America’s farmers and ranchers can continue to provide the safest, most affordable food supply in the world.
Risk management:
- Farmers and ranchers are proud to produce the safe, sustainable food, fiber and fuel we all rely on, and the farm bill gives them the tools they need to keep our farms and food supply secure.
- We buy insurance to prepare for tough times; similarly, crop insurance authorized by the farm bill provides an important tool to help farmers and ranchers weather storms beyond their control.
- In light of global events, supply chain challenges and inflation, it is critical that the U.S. make it a top priority to protect our food supply for the well-being and security of our nation.
Nutrition:
- This is more accurately a food and farm bill, as funding provides a comprehensive package of programs for farmers, as well as access to safe and nutritious food for families in need.
- America’s farmers and ranchers are proud to grow the food that helps supply more than 9 billion meals annually through the farm bill’s nutrition programs, which ensure the most vulnerable among us have access to healthy, affordable food.
Conservation:
- Farm bill conservation programs recognize farmers as partners in sustainability and provide resources to help them care for environmentally sensitive land and employ climate-smart practices in their fields to help preserve wildlife habitat, soil and water.
- Through the farm bill, farmers have voluntarily enrolled 140 million acres in conservation programs—that’s equal to the size of California and New York combined.
- The farm bill’s investment in agricultural research and conservation programs is critical to reaching sustainability goals as we work to feed a growing population using fewer resources.
- Thanks to advances in climate-smart farming, farmers are producing more with fewer resources. To put this in perspective, it would have taken 100 million more acres 40 years ago to produce the same amount of food, feed, fiber and fuel we are growing today.
Economy and rural development:
- The food and agriculture sector is critical to our economy, making up roughly one-fifth of U.S. economic activity, directly supporting nearly 23 million jobs—15% of total U.S. employment. When looking across the entire food and agriculture supply chain, agriculture’s impact is even more striking, supporting more than 46 million jobs.
- The vibrancy of our rural communities relies on farm bill programs that support rural infrastructure and other investments, including broadband, a “must have” to ensure career opportunities as well as access to quality education and health care.
Farm Bureau priorities:
- Congress should increase baseline funding for farm programs, prioritizing risk management tools like crop insurance and commodity programs.
- It’s important to maintain a unified farm bill that includes both nutrition programs and farm programs.
IF ASKED
Is the farm bill really necessary anymore?
- The farm bill impact extends well beyond the farm by protecting our nation’s food supply, providing access to nutrition for families facing hunger, advancing conservation efforts and spurring innovation through agricultural research.
- Managing risk on the farm is critical to keeping food on our tables. The farm bill protects farmers from weather disasters, high supply costs and inflationary pressures, which keeps food affordable for millions of families in America.
- The food and agriculture sector is critical to our economy, making up roughly one-fifth of U.S. economic activity, directly supporting nearly 23 million jobs—15% of total U.S. employment. When looking across the entire food and agriculture supply chain, the impact is even more striking, supporting more than 46 million jobs.
What happens if a farm bill isn’t passed or extended?
- Failure to act by Congress would be irresponsible and damaging – not only to farmers and ranchers, but also to Americans who rely on a stable, affordable food supply.
- If Congress doesn’t act by the end of the year, several Title 1 programs would revert to legislation from the 1930s and 1940s.
- Farmers cannot enroll in Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs for 2024.
- USDA’s Farm Service Agency cannot authorize new Conservation Reserve Program contracts until the farm bill is renewed or extended.
- More than a third of mandatory funding for agricultural research is paused until a new farm bill is passed.
Why should risk management support be increased (titles I and II)?
- USDA predicts production expenses will rise another $18 billion in 2023 after a record $70 billion increase in 2022, which means it will be harder for farmers to break even.
- Although some costs for fertilizer and diesel fuel have dropped since last year, in reality they are still dramatically higher than 2021 costs.
- The high cost of supplies coupled with USDA’s predicted decrease in net farm income in 2023 serve as a warning of potential rough waters ahead, making a strong safety net essential.
- Current reference prices, even with the price escalator incorporated in the 2018 farm bill, have not kept up with large input and crop price increases, rendering them ineffective.
- Crop insurance needs to be expanded to serve specialty crops, too.
There has been a lot of talk about separating nutrition from the farm bill. Do you support that?
- We believe it’s important to keep nutrition and farm policy in the bill because they are tied so closely together.
- America’s farmers and ranchers are proud to grow the food that helps supply more than 9 billion meals annually through the farm bill’s nutrition programs, which ensure the most vulnerable among us have access to healthy, affordable food.
- Policies established in the farm bill don’t just provide meals for the hungry, they keep food affordable for all families in America.
- In America, we spend a smaller percentage of our take home earnings on food than almost anywhere in the world, in large part because of a strong food and farm policy.
Farm Bureau has been critical of federal spending before, so how can you justify asking for increased spending on the farm bill?
- Congress crafts a new farm bill every five years to enable lawmakers to address changes in the economy, investment and innovations.
- Since the last farm bill in 2018, we saw the impact the pandemic had on supply chains and inflation.
- The cost of growing food has increased. Fuel, fertilizer, seed and almost all other supplies have gone up in price. The need to increase funding to the farm bill reflects the increased financial pressure being put on America’s farmers and ranchers.
- The farm bill is about food security, but it’s also about national security. Ensuring we have a stable and affordable food supply is in the best interest of every American.
Doesn’t crop insurance encourage farmers to take unnecessary risks in farming lands they otherwise wouldn’t, because they know they can get a bailout? (American Enterprise Institute (AEI) assertion: The federal crop insurance program, which has been the largest source of farm subsidies over the past decade, creates incentives for moral hazard behaviors that expand crop production on highly erodible land and affect the allocation of land between alternative crops.)
- Farming is more sustainable, thanks to rising productivity. Farmers are growing more food with fewer resources. U.S. agriculture would have needed nearly 100 million more acres 30 years ago to match today’s production levels.
- Farmers invest their own money in the crops they grow and they pay for crop insurance, which is needed because of the tremendous financial risk farmers take without knowing what their return will be at the end of the season.
- Crop insurance is required by law to be actuarily sound. On average, farmers pay the majority of the cost of premiums.
- It’s also important to note that crop insurance payouts are limited. If a farmer faces a total crop loss, the limit to coverage is 85% – and the farmer has to buy that level of coverage. If your house burns down, your insurance can cover 100%… and pay for a replacement.
- Precision agriculture and other advancements enable farmers to grow crops on the most productive land.
- Farmers use crop insurance to help them weather circumstances outside of their control.
Wouldn’t it be smart to reform farm bill programs so less funding goes to large farmers who are wealthy? (AEI assertion: Many farm-oriented programs the 2014 farm bill authorized mainly funnel federal funds to households whose incomes and wealth are well above those of the average US household.)
- Wealthy by what standard? It’s important to level set if you’re comparing farm income to the income of an average U.S. household because that’s an apples-to-oranges comparison.
- The average American family lives on a half-acre lot with one automobile, while the average farm in the U.S. is 445 acres and requires multiple pieces of expensive – sometimes million dollar – equipment to raise plants or animals.
- Put another way, the average cost of a home in America ranges from $350,000 – $500,000, depending on the source, while it’s not unusual for farmers to take out loans of hundreds of thousands of dollars just to cover operating costs for a single year.
- An average dairy farm with 274 cows has operating costs averaging over $1.1 million, according to USDA. The public doesn’t realize the enormous costs associated with farming.
- Also, the average household doesn’t have its wealth tied up in land and equipment, nor does it rely on the weather to earn an income in any given year.
- More than 95% of farms in America are family-owned. Without a farm safety net, we would see even more consolidation in agriculture because some small farms wouldn’t survive when severe weather devastates their crops and income.
- Many farm policies provide extra support for small farms, which is one objective; another objective is to ensure America’s food security, which requires support of all types of farms – including larger farms, which produce more of our food.
Shouldn’t crop insurance cover more than just a few commodities? (Environmental Working Group (EWG) assertion: Despite its astronomical costs, the federal Crop Insurance Program benefits only about 20% of all U.S. farms – mostly larger operations growing just a few crops in a handful of states, not smaller farms that may be struggling without a safety net.)
- Participation in crop insurance continues to grow as more products are offered and more farmers become aware of what is available. USDA also supports the development of new crop insurance products.
- Many crops still lack coverage. We believe that farmers should have risk management options regardless of what crop they grow. Frankly, this is more difficult for crops sold at smaller scales.
- For instance, many specialty crops are sold in thinner markets than conventional crops, in which the market involves a very small number of buyers or sellers. This means there is less information available to establish prices that reflect actual supply and demand factors, making it more difficult for producers to forecast cash flows.
- Barrier to entry for farmers who lack knowledge in how to purchase a policy that works for them is a true problem. Better education and staffing are needed to support the USDA Risk Management Agency.
- The states that benefit the most from crop insurance have the highest concentration of agricultural production by value, so logically they would have higher rates of impacted crops.
Should crop insurance eligibility be tied to conservation to encourage farmers to adopt new sustainability methods? (EWG assertion: Reforming crop insurance to encourage farmers to adapt to the changing climate will help make them more resilient to increasingly chaotic and destructive weather, cut costs and reduce agriculture’s contributions to the climate crisis – which account for at least 11% of U.S. emissions.)
- Tying crop insurance to climate mandates could drive smaller farms out of business, leading to more consolidation in agriculture.
- America’s farmers and ranchers lead the world in climate-smart agriculture. Emissions from American agriculture are far lower than the rest of the world.
- Farmers and ranchers share the goal of protecting the resources they’re entrusted with. They’re looking for partners in that effort, not mandates.
- The farm bill has a wide range of programs that provide voluntary market-based incentives to support more sustainable farming. Tying crop insurance eligibility to a rigid set of practices would undermine sustainability itself, by undercutting agricultural productivity.
- Farmers have a strong track record of caring for the resources they’ve been entrusted with.
- 140 million acres are enrolled in voluntary conservation programs. That’s more than California and New York combined.
- More than half of corn, cotton, soybean and wheat planted acres in the U.S. are either no-till or low-till, which helps trap carbon in the ground. That’s more than 200 million acres.
Final WOTUS Rule (September 2023)
Headline Messages:
- EPA had an opportunity to write a Waters of the U.S. Rule that’s fair to farmers and stands the test of time, but instead chose to continue government overreach and revise only a small slice of the rule that was rejected by the Supreme Court.
- We’re pleased the vague and confusing “significant nexus” test has been eliminated as the Supreme Court dictated, but EPA ignored other concerns raised by the Justices, 27 states, and farmers across the country about the rule’s failure to respect private property rights and the Clean Water Act.
- EPA continues to attempt to expand its jurisdictional reach, particularly through the “relatively permanent” standard, which the agency has intentionally kept vague.
- Farmers and ranchers share the goal of protecting the nation’s waterways. They deserve rules that don’t require a team of attorneys and consultants to identify “navigable waters” on their land.
Supporting Messages
- The back and forth over water regulations threatens the progress made to responsibly manage natural resources.
- Mistakes in interpreting WOTUS regulations could lead to large civil fines for farmers as well as criminal charges.
- Farmers have a strong track record of caring for the resources they’ve been entrusted with.
- 140 million acres are enrolled in voluntary conservation programs. That’s more than California and New York combined.
- More than half of corn, cotton, soybean and wheat planted acres in the U.S. are either no-till or low-till, which helps trap carbon in the ground. That’s more than 200 million acres.
- The use of cover crops increased by 50% between 2012 and 2017, for a total of 15.4 million acres.
- Farmers use a number of tools to protect waterways and reduce runoff.
- Buffer strips – protective zones of permanent vegetation between a farm field and waterway.
- Strip cropping – planting and growing alternating strips of erosion-resistant crops.
- Terraces – structures that intercept runoff on slopes, which filters water and reduces erosion.
Illinois Ag Retail Survey
Headline Messages:
- The IL Ag Retail Survey was designed to collect accurate, science-driven data and establish a baseline of information on key indicators of nutrient loss reduction progress within Illinois agriculture.
- Its design provides the agriculture industry with the ability to track nutrient management practice adoption and quantify nutrient loss reduction achieved across the state.
- This system allows Illinois agriculture to showcase progress and fortify why a voluntary agricultural framework is vital.
- The 2022 IL Ag Retail Survey data is robust and representative of the state. The survey represents data from randomly selected ag retail locations and individual fields, which is reported as a statewide aggregate.
- Of the 535 ag retail locations across Illinois, 150 were selected to participate in the survey. Of the randomly selected field records, only 13 customers opted out, leading to a total of 917 fields surveyed (500 were needed to proceed with the survey).
- High participation rates show that farmers and ag retailers were aware and engaged in the effort. It is clear they took their role of providing the best-available data necessary very seriously and were willing to provide data needed to showcase efforts. This unique data set will allow the industry to evaluate conditions on the ground across the state as we progress toward the Illinois Nutrient Loss Reduction Strategy goals of improved nutrient management and reduced nutrient loss.
Supporting Messages
- Farmers continuously work to find innovative solutions for preserving our soil and to protect water quality.
- Farmers are working with ag retail locations to implement practices that integrate scientific solutions, technology, and innovation to meet nutrient reduction goals.
- Illinois nutrient loss reductions goals for 2025 are quickly approaching, and pressure from Illinois legislature, regulatory agencies and stakeholders to document progress made within the state is mounting.
- Acquiring anonymous data straight from grower records from ag retailers will provide the agriculture industry the ability to track practice adoption levels and quantify nutrient loss reductions achieved.
- The survey’s design will provide the agriculture industry with the tools needed to track nutrient management practice adoption and quantify nutrient loss reduction achieved across the state for years to come.
This is a long-haul effort, not a sprint. Illinois Ag Retail Survey leaders are continuing to dig into the data provided by the survey. This baseline of data will provide them with opportunities to develop new programs and initiatives to tackle key areas identified by the survey.
This survey was supported by the Illinois Fertilizer & Chemical Association, Illinois Farm Bureau, Illinois Corn Growers Association, Illinois Soybean Association, Illinois Pork Producers Association, Illinois Beef Association, the Illinois Council on Best Management Practices (ICBMP) and the Illinois Certified Crop Adviser Program.