On June 4, the Senate Ag Subcommittee on Commodities, Risk Management, and Trade held a hearing entitled: “Pathways to Farming: Helping the Next Generation of Farmers” The witnesses in the hearing were:
- Mr. Christian Good, Owner/Operator, Christian Good Farms, Macon, MS
- Ms. Tessa Parks, Farmer, W.T. Farms, National Farmers Union, Northfield, MN
- Mr. Kevin Lussier, Chair, Young Farmers and Ranchers Committee, American Farm Bureau Federation, Hawthorne, FL
- Ms. Raechel Sattazahn, Director of Industry and Membership Relations, Horizon Farm Credit, Mechanicsburg, PA
Below is a summary of the hearing prepared by Delta Strategy Group. It includes several high-level takeaways, followed by summaries of opening statements and witness testimonies and a summary of the Q&A portion of the hearing.
Key Takeaways
The following is a summary of the main topics explored in today’s hearing. Each is discussed in further detail in the Discussion section below.
- Today’s hearing discussed issues such as crop insurance and reference prices concerning the farm bill, emphasizing the need for support and resources for beginning farmers, adjustments to market conditions, and the importance of sound trade and tax policies.
SUMMARY
Opening Statement and Testimony
Chair Debbie Stabenow (D-MI)
- The number of new and beginning is increasing and nearly one third of producers are beginning farmers. The success of these farms often depends on consistent access to local markets as well as international markets.
Ranking Member John Boozman (R-AR)
- It is crucial to put meaningful investments in the farm safety net.
Subcommittee Chair Tina Smith (D-MN)
- Agriculture is a driving force in the American economy, and the agriculture sector has been facing challenges recently. Producers feel challenges most, specifically, producers first starting. Many beginning farmers struggle to gain an income. The Land Access Security and Opportunity Act (LASO) bill would directly help beginning farmers get access to affordable land, develop markets, and get access to capital.
Subcommittee Ranking Member Hyde-Smith (R-MS)
- Young, beginning, old, and experienced farmers must be prioritized in the farm bill. This is why Titles 1 and 11 of the farm bill are so critical and why I am so dedicated to ensuring the farm bill modernizes to keep up with today’s challenges like skyrocketing input costs and interest rates.
Tessa Parks, W.T. Farms
- Using conservation practices helps us to do our part to tackle climate change and build resilience. We are glad to see there is bipartisan partisan support for including the Inflation Reduction Act’s funding for USDA’s voluntary conservation programs in the farm bill.
Christian Good, Christian Good Farms
- Passing a good farm bill is crucial to ensure sustainable pathways for younger farmers. The House farm bill makes significant adjustments to the statutory reference prices for most commodities, bringing them more in line with today’s market situation.
Kevin Lussier, Chair, Young Farmers and Ranchers Committee, American Farm Bureau Federation, Hawthorne, FL
- It is crucial that a bipartisan farm bill is passed, so young farmers keep American agriculture robust.
Discussion
Trade Agreements
Ernst (R-IA): Do you agree that a $32 billion trade deficit only hurts farmers if we are not engaging in trade agreements? Good: Yes, farmers rely on foreign markets to grow their demand.
Crop Insurance
Stabenow (D-MI): What role does crop insurance play as you secure financing? Parks: Crop insurance does not play a role in our farm.
Smith (D-MN): What can we do to help create that first step so small farmers can participate in these programs, specifically crop insurance? Sattazahn: The initial start is education and resources; Parks: Helping other beginning farmers to know where their resources are is something that this next generation really does need.
Tuberville (R-AL): The Farm Bill that passed out of the House Ag Committee allows for a one-time allocation of base acres to growers using a planting history from 2019-2023. Do you see this opportunity to access base as encouraging to beginning producers and what impact will this have from an economic perspective? Good: The base is an opportunity and foundational piece to build a risk management portfolio.
Reference Prices
Grassley (R-IA): How would an increase in the reference prices of corn and soybeans impact your farm? Good: Reference prices should be higher; Parks: By tightening loopholes, we may have a fighting chance. When we look at the cost of crop insurance, Congress should make sure it is affordable for young farmers so they can reach higher coverage.
Tax Policy
Tuberville (R-AL): Can you speak to the importance of extending former President Trump’s 2017 Tax Cuts and Job Act such as the increased estate tax exemption, step-up basis, and bonus depreciation to support farm families? Good: The core of what farmers need is a sound tax policy. Yes, my family supports the step-up basis and bonus depreciation.