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Before formulating policy on the next farm bill, AFBF convention attendees heard two distinct views of what the bill should or will look like. Agriculture Secretary Mike Johanns and House Agriculture Committee Chairman Collin Peterson (D-Minn.) were among the high ranking officials who shared their vision for the legislation.

Johanns raised questions about whether farm subsidies accomplish their purpose. He noted that in 2000, right before the 2002 Farm Bill was written, a record high $32 billion was paid in farm subsidies. "And yet, the farm economy was far from impressive," he said.

"Currently, that total has dropped to about $20 billion annually and yet our ag economy is far stronger," he said. Johanns cited improved agricultural exports, reduced average debt-to-income ratios, improved crop production and yield and farm cash receipts that increased for the fourth year in a row as factors that have come into play since the 2002 Farm Bill went into effect.

"This suggests that increased subsidies do not equate to a strong ag economy," Johanns said. "We’ve never been in a better position to develop a program that lets farmers work for a profit in the marketplace, not an envelope from Washington."

Peterson offered a differing view, saying that the 2002 Farm Bill worked pretty well and that direct payments and the Loan Deficiency Program probably would continue. He added that he would like to see a new farm bill that looks "a lot like what we have now."

However, Peterson did propose a few changes. For example, he said that the farm bill should include some kind of permanent disaster program.

One thing Johanns and Peterson agreed on is that the farm bill will likely have an extensive energy component.

Peterson said, "What will drive this farm bill is renewable fuels. The House leadership is with us on this," he said concerning his goal to provide more incentives to expand renewable fuel production and use.

Peterson said that he would like to see 50 percent of the fuel in America be renewable fuel, but it can’t come from just corn. "We’ve got to do cellulosic, too," he said. "The issue will become: How do we produce the necessary feedstocks?"

Johanns agreed that energy matters will influence the bill, but that he also believes other factors will shape the legislation.

"The next farm bill must be broader in scope. We’re looking at ways to develop programs that are more equitable, effective and less complex," Johanns said, noting that 60 percent of producers receive no farm program payments.

"It’s important that we maintain natural resources to keep the agricultural industry strong. Producers are believers in conservation, but they’re facing more regulatory challenges," Johanns said. "We must make sure that producers have the necessary support to comply with program requirements."

The budget for the 2007 Farm Bill will be tighter than it was for the 2002 Farm Bill, Peterson said. He explained that farm programs have come in about $17 billion under budget over the last five years. Peterson said that agriculture programs should get some consideration for saving money, and he is pressing the issue with the budget committees.

"It’s not going to be easy," he said, "but I think we will be able to get the resources."

Caption: Agriculture Secretary Mike Johanns addresses farmers in Salt Lake City.

Caption: House Agriculture Chairman Collin Peterson talks with reporters at AFBF's annual meeting.