More ‘players at the table’ will create new U.S. farm policy

By MONETTE TAYLOR | South Central Texas Edition

Dr. Joe Outlaw, with TAMU’s Agriculture and Food Policy Center, detailed the center’s work of educating decision makers. -- Staff photo by Taylor

Feb. 9, 2006 - “You borrow money to farm and operate in this country,” noted Dr. Joe Outlaw, with the Agriculture and Food Policy Center for Texas A&M University (TAMU), “… the only problem is most in D.C. (legislature) don’t know (this)!”

Speaking to producers from a five-county area, Outlaw addressed the farm policy outlook during the Jan. 25 Western Rice Belt Conference in El Campo.

According to Outlaw, the policy climate in D.C. is “negative,” due to elections coming up, scandals and less cooperation across party lines. There is a catalyst for change in the air with so many questions unanswered, he said.

Like most experts, Outlaw believes that many answers lie with what happens with the deficit, the new farm bill and World Trade Organization negotiations. With new membership and “players” in D.C. at the U.S. Department of Agriculture, members of the House of Representatives and Senate are “unsettled” because of leadership positions and limits.

Outlaw did note that there should be “more players at the table” because of energy issues and commodity groups. While corn price is expected to be down in price for 2006, it is expected to go up by 2007.

Another area of concern for farmers is the money needed for fuel, and that is not expected to go down any time soon. One positive thing, Outlaw reported in his outlook, is although there have been budget reconciliations, there wasn’t as much ag funding cut as it might seem.

When it comes to policy development, there is a lot of “smoke and mirrors,” Outlaw cited. Yet, looking through the distractions, he said he believes the advanced direct payment to producers should be 40 percent in 2006, but only 22 percent, thereafter. While there will be cuts in the Environmental Quality Incentives Program (EQIP) and Conservation Security Program (CSP), the programs are expected to be extended.

Obviously, much depends on the results of the Doha Round negotiations, but there “was not much happening in Hong Kong,” related Outlaw on Jan. 25. The three “pillars” of the group are the United States, Japan and Europe, he explained. The meeting in Switzerland in April should provide more answers.

Outlaw explained the Trade Promotion Authority (TPA) will expire in July 2007, and he expects the United States to be sued if there is no peace clause added.

As far as the development of the 2007 Farm Bill, Outlaw noted there are several areas of concern. It is not clear if current programs will be extended, and that depends mainly on Doha progress; small groups are pushing for a completely different type of ag support which would be “greener and more WTO compliant and less tied to prices and actual producing.” 

Other areas of concern for Outlaw was the fact that payment limits might be tightened, with lots of “lobbying” going on in the next budget reconciliation.

With everything going on all over the world, Outlaw said President Bush won’t get the agricultural budget cuts he wants, but there will likely be cuts made in other areas, except the military.

With the Doha, it is very important to move products to other countries, so the United States must be “competitive with the other countries.”

With all that said, Outlaw closed by telling the producers that it was “hard to make (legislative) representatives realize it’s not all easy money for farmers.” 

Part of Outlaw’s job is to help legislators understand what ag producers do and how their money is spent. Plus, Outlaw said he is committed to keeping Texas informed on the latest information from the nation’s leaders.