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Although corn prices are projected at more than $3 per bushel for the next several years, American Farm Bureau Federation (AFBF) President Bob Stallman said that the economic news is not as positive for all farmers.

"Challenges continue in many areas, some related to shifts in global supply and demand and others to natural calamity," he told farmers at the organization's annual meeting in Salt Lake City.

Specifically, Stallman cited low cotton prices, falling wheat prices and the combination of high feed costs and harsh winter storms that hit the livestock industry. All in all, net farm income is expected to drop to $58.9 billion in 2006, down nearly $15 billion.

"The reasons? The value of livestock production has dropped, the amount of direct government payments has fallen and production expenses have skyrocketed," he said.

These economic challenges were likely on the minds of many in the audience who were charged with setting the organization's policy for the next farm bill. Of additional importance is the fact that the U.S. farm program will be linked to world trade negotiations.

"We need a solid program so we can negotiate from a position of strength," Stallman said. "Trade matters to American agriculture. That is why we must open markets beyond our borders to create demand that will help keep us productive and profitable."

Stallman blasted South Korea for rejecting U.S. beef shipments after inspectors claimed to find a few bone fragments the size of a half-grain of rice.

"An entire grain (of rice) couldn't stop my granddaughter's tricycle. But, in Korea, a half-grain apparently is big enough to stop a transport plane loaded with American beef. If that isn't a blatant trade barrier, I don't know what is," he said.

Stallman noted additional challenges for livestock producers include an initiative that Arizona voters passed last November banning gestation pens and veal stalls.

"It was a classic case of the uninformed informing the misinformed," he said of an animal rights campaign supporting the initiative. "These activists are coming to a state near you. These assaults must stop and this is where we draw the line."

He went on to say that the new "weapon of choice" to attack livestock producers is the Superfund law, which was enacted to clean up toxic waste sites but has recently been applied to manure.

"Superfund was never meant to apply to agriculture, and we are seeking a legislative clarification to set the record straight," he said. "It is time for members of Congress who earned your votes by claiming to be friends of agriculture to stand up and approve this clarification."

AFBF has also filed a petition in federal court to challenge the Environmental Protection Agency’s air quality standards that regulate agricultural dust.

"Dust is a natural part of farming. We will not tolerate a posse of dust deputies staking out our fence rows," Stallman said.

Stallman challenged Farm Bureau leaders to be visionaries and said the organization is effective because its policy is developed by real farmers who know the difficulties of agriculture.

"Our organization is viewed as a credible, non-partisan authority on agriculture and rural issues," he said. "We are respected around the world because our voice comes from you."

Caption: AFBF President Bob Stallman addresses farmers in Salt Lake City. Photo by AFBF