Speaking to roughly 500 people attending the convention of the National Farmers Union,US Department of Agriculture (USDA) Secretary Tom Vilsack said that while farming, in general, has become more efficient, rural America has not reaped the economic rewards.As Steve Miller highlights in his article for the Rapid City Journal, back in 1950 one American farmer could supply enough food for 20 Americans. Today one farmer can provide enough food for 150 people. While the improved efficiency in production is a good thing on its face, the improvements in efficiency have not relieved farmers from the financial pressures that can lead farms to shut down.
Over the last five years, according to Vilsack, 80,000 mid-size farms have shut down "while the number of very large operations has increased." Those who have continued their family farm operations are having to turn to outside sources for economic help. Today, farmers make up less than 1 percent of the population, and only 11 percent "of farm family income comes from the farm or ranch." The rest comes from outside jobs.
In Vilsack's opinion, this reality has caused fewer young people to turn to farming, and it has forced many farmers to shut down their operations. Given that the national food needs continue to grow, it is natural that larger operations are stepping up their production and looking towards efficiency to meet the demands of the market.
Vilsack told the crowd that agricultural economic pressures have harmed rural American by leading to a decreased rural population, "a less educated work force, and higher unemployment and poverty rates than any other place in the country." Vilsack noted that President Obama is aware and concerned about these problems.
For Vilsack, a former governor of Iowa, solutions to these problems can be found by addressing competition in agriculture, which is why the USDA and Vilsack have joined with the Department of Justice (DOJ) and Attorney General Eric Holder to host a serious of workshops examining competition and consolidation issues in agriculture. Additionally, Vilsack believes expanding trade, alternative energy development and looking for "new opportunities in conservation including carbon and water credits [,]" could provide greater economic opportunities for rural Americans.
While the joint USDA/DOJ workshops are intended to address competition, Vilsack believes the "Know Your Farmer, Know Your Food" initiative will help connect costumers with farmers and develop connections that could lead to new opportunities for farmers and expand domestic markets. Vilsack also believes that legislation dealing with climate change could be very beneficial to rural America, despite the skepticism about the proposal that exists in many rural, farm communities.
The National Farmers Union meeting wraps up today. Before attending the convention, Vilsack took part in the first joint USDA/DOJ workshop in Alkeney, Iowa. The focus of this workshop, and the ones to follow, is competition and consolidation in the agriculture industry.
According to the New York Times' William Neuman's report, the focus for many during the first workshop in Iowa, was the price for seeds. Seed prices have been climbing for over ten years, as their have been increases in the number of genetically engineered crops. Monsanto controls much of the seed market and is responsible for developing bioengineered traits in crops that make them resistant to pests and herbicides. Currently, Monsanto is part of the focus of a Justice Department inquiry of the seed industry and anti-competitive practices.
Since 2001 corn seed prices have increased by 135 percent while the Consumer Price Index only rose by 20 percent during that period. Thus far farmers have been willing to pay for the seeds, and Lee Quarles, a Monsanto spokesman, maintains that the increases "were justified because the quality of the seeds" had been improving as new traits were being added that save farmers money and make "their operations more efficient."
Miller reports that as biotechnology has increased in the seed industry, Monsanto and competitors have been purchasing smaller seed companies, which in turn has lead to increased concentration in the seed market.
According to the Christopher Leonard article in the Rochester Post-Bulletin, the meeting in Alkeny attracted over 650 farmers, slaughterhouse workers, executives, and lobbyists. Leonard reports that industry groups are worried any new laws or lawsuits "could punish companies in the midst of a recession and stifle innovation and investment." For their part, Vilsack and Holder did not state what actions the administration would ultimately take, but emphasized the meeting was not only about agriculture competition, "It's really about the survival of rural America."
What solutions or actions that come out of the meetings and workshops will have to be seen.
To read the Rapid City Journal, click here.
To read the New York Times article, click here.
To read the Rochester Post-Bulletin article, click here.
Posted: 03/16/10
