CFRA Weekly Column

For decades, corporate mergers in agribusiness have proceeded, virtually unchallenged, at breakneck speed.

The 2008 Farm Bill includes the Beginning Farmer and Rancher Individual Development Account Program. This program uses special matched saving accounts to promote a new generation of farmers and ranchers by assisting those of modest means to establish a pattern of savings. The account proceeds may be used toward capital expenditures for a farm or ranch operation, including expenses associated with the purchases of land, buildings, equipment, infrastructure, livestock, or toward training.

The 2008 Farm Bill includes several provisions to assist a new generation of farmers and ranchers. One of those is the Conservation Reserve Program Farm Transition Incentive. This will provide landowners with an expiring CRP contract an incentive to transition that land to a beginner willing to bring that land back into production using sustainable grazing or crop production methods.

In our hometown of Lyons, Nebraska (pop. 950) several newly-arrived young adults are strolling the streets, a result of an internship project sponsored by Nebraska Renewable Energy Systems. They have come to Lyons to learn about and build renewable energy systems- primarily wind and biodiesel.

Despite our displeasure with the passage of a farm bill that lacks real payment limitations and other crucial reforms, there is a clear victory in gaining passage and dedicated funding for the Beginning Farmer and Rancher Development Program.

Farmers are working longer than ever. According to the 2002 Agriculture Census, the average age of farmers is 55, and one in four is 65 or older.

The Center for Rural Affairs opposed passage of the new farm bill because it commits the federal government to subsidizing the destruction of family farming for another five years and invests little in the future of rural communities.

In a couple of days a farm bill will likely pass in Congress. There are some wins such as funding for beginning farmers, money for a rural microenterprise program, and money for the Conservation Stewardship Program. We're grateful for those investments, and they will do some real good if this farm bill becomes law.

Higher land costs and skyrocketing cash rents create challenges for farmers and ranchers, especially beginners, who need land, but cannot afford the expense.

Most agriculture production in this country is marketed as generic grain or livestock, where the only way to compete is to produce for less. These short-term gains are quickly lost as others learn these skills or adopt new technology.

President Bush's proposed budget for 2009 zeros out funding for 20 important rural development programs. That is the finding of the Center for Rural Affairs recently published Rural Brief.

This week (April 13th – 19th) is National Student Leadership Week. In honor of the celebration several Nebraska communities have kicked off the week with special activities geared toward young leaders.

LB 1174 will not pass the legislature this year. While disappointing, this is not the last word on Nebraska corporate farming laws.

No shortage of young people want to get into farming and ranching, but few see how to afford the soaring start-up costs of land, equipment and operating capital. They are trying to compete in the same arena with established farmers with greater equity and a long credit history also looking to expand.

It’s that time of year, “Spring Break”. Everyone should take time to get away. On March 29, 2008 Nebraskans have an opportunity to take a break with out leaving the state or breaking the bank.