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With two of the year’s largest farm shows just completed, members have had the opportunity to visit with many of their customers face-to-face and have found them not only ready to purchase new equipment but very optimistic regarding this year’s crops.

Based on the USDA budget proposed by the Administration in the last few days, you would think future ag policy was based on last year’s farm income and the positive mood of producers attending recent shows. Under the Administration’s budget, direct payments would be eliminated and crop insurance subsidies would be cut along with conservation programs.

Reactions to the White House proposals were quick in coming from both chambers of Congress.

Rep. Frank Lucas (R-OK), Chairman of the House Agriculture Committee, said if passed, the Administration’s Budget would undermine our investment in providing a stable food supply. The Chairman took particular objection the of proposal to cut crop insurance, saying it threatens the integrity of the program itself. Lucas also took note of the fact that the President’s proposed budget totally ignores other areas of the USDA’s budget when it comes to savings. While nutrition spending makes up 80% of the agriculture baseline, not one penny of cuts were proposed.

Sen. Debbie Stabenow (D-MI), chairwoman of the Senate Agriculture Committee, was not in favor of saying, “Further cuts to crop insurance, which is a critical risk management tool. I have heard loud and clear that strong, effective risk management is the number one priority of farmers and producers across the country.” Stabenow continued, “Farming is a high risk business and we don’t want farmers and other small businesses going under because a few days of bad weather — it
jeopardizes the economy and the safety of our national food supply.”

Steve Wellman, president of the American Soybean Association added his frustration, saying that this is, “Exactly the wrong time to reduce support for the federal crop insurance program.”

Is this budget proposal a real threat to the future of agriculture or is it “dead on arrival” as some have suggested?

We will put that exact question to the former Chairman of the Agriculture Committee, Larry Combest during next month’s .

Combest will be our Luncheon Speaker on Thursday, March 29 and will deliver our Keynote address during our General Session Friday morning, March 30.

With that in mind we would encourage members to make plans to attend the Spring Clinic this week, while early registration discounts are still in effect and rooms are available at the low rate of $99 per night.

The importance of agriculture and ag policy is not confined to the current debate in Congress, the Chinese government has a keen interest in food production.

The recent visit of China’s leader-in-waiting, Vice President Xi Jinping to an Iowa farm, notes the leader’s interest in production agriculture. Xi reportedly asked detailed questions about farming techniques in Iowa. Xi had previously visited Iowa to study agricultural techniques and learn about corn production and had insisted on the stop.

This important export market will also be addressed during our Spring Clinic. On Thursday morning, March 29, Russell A. Meade, President of China Business Network (CBN), will discuss how our members can best assess the current opportunities for selling farm equipment to China.