Menu

Ethanol may have significant impact on the bill

By Natalie Walston

Slow-moving world trade talks and fast-moving ethanol development are two reasons to wait at least a year to write the next farm bill, according to American Farm Bureau Federation (AFBF) lobbyist Mary Kay Thatcher.

During a recent AFBF Web cast addressing aspects of public policy and upcoming debates, Thatcher said, "We need to negotiate a successful World Trade Organization (WTO) round before writing the farm bill," adding that talks aren't far enough along to anticipate the outcome and make changes to the bill.

She said, in the meantime, U.S. farm policy should continue to help level the playing field with assistance to American farmers until trade negotiations achieve a fair world market. For instance, U.S. farm products are still taxed an average 62 percent on average when exported to world markets while the United States only taxes at an average rate of 12 percent.

Another important aspect to the creation of the farm bill is major changes in the corn industry due to the developments in the ethanol industry. AFBF said more farmland is needed to produce corn not only for ethanol but for an adequate feed supply of the crop for livestock. AFBF predicts that by the year 2012, the United States will produce 10 billion gallons of ethanol, which will take 88 million acres of land for corn. Plus, with the price of corn at or near $3, according to AFBF, it will make it more expensive for livestock producers to feed their animals.

Thatcher said rules surrounding the Conservation Reserve Program (CRP) should allow for animals to graze on land that's set aside for conservation purposes. That land could also be used to increase corn crops.

"It's noted that CRP is the fourth largest ‘crop’ in the U.S.," she said, per government dollars of support.

On another note, AFBF is aware that animal welfare groups are gaining more power over legislators with the introduction and House passage of a horse slaughter bill this fall. HR 503 calls for the end of the slaughter of horses in the United States. The bill fails to address what should happen to these horses even though there aren't enough equine rescue groups to take them in. Celebrities such as Bo Derek and Willie Nelson, working with the animal rights group the Humane Society of the United States, have been brought in to sway legislators towards their agenda.

David White, OFBF senior director of policy development and research, said, "Animal welfare is an up and coming trade issue and potential trade barrier."

OFBF Senior Director of National and Regulatory Affairs Adam Sharp said such groups will use this momentum to push policy in the farm bill.

AFBF is also calling for the farm bill to address energy issues such as transitioning gas station pumps and car makers to better deal with alternative fuels.