Markets, Technology Keys to Farm Economy

July 6, 2000

The American Farm Bureau Federation believes the economic future of U.S. farmers hinges more on their ability to embrace efficient technology and the government's capacity to expand markets, according to AFBF President Bob Stallman. Speaking to business leaders during a Decatur, IL, Chamber of Commerce agricultural forum, Stallman said today's farm economy requires: expanded export market opportunities; new and increased domestic uses of farm products; and the ability to capitalize on production advantages offered by agricultural biotechnology.

"Our current farm economy is troubled. That's no secret," Stallman said. "Farm families and companies that depend on them have not prospered from the decade-long economic boom enjoyed by most Americans." Major initiatives that were to have accompanied the current farm program, such as opening export markets, never took place, he added.

"We are finally seeing some significant progress in this area," Stallman said. "The House vote (237-197) to grant China permanent normal trade relations (PNTR) was not only historic, it was mandatory. U.S. farmers could have been in the position of being unable to sell to China, even when it becomes a member in good standing of the World Trade Organization."

He also said AFBF is "just as active" in its other trade-opening initiative as in its support of China PNTR, supporting legislation to eliminate U.S.-imposed trade sanctions on food sales to Cuba, Iran, Libya, North Korea and Sudan.

"We are turning our back on countries who make up 14% of the world rice market, 10% of the wheat market, 5% of the vegetable oil and barley markets and 4% of the corn market," Stallman said. "This hurts no one but ourselves, and our nation's reputation as a reliable trading partner. Farm Bureau is encouraging Congress to drop the sanctions and give U.S. farmers a shot at another $6 billion in potential sales."

Improved trade is not the only hope for achieving higher net farm income, which Stallman called his "top goal." He said it's important to enhance profit by boosting domestic demand for U.S. farm products, developing new commodities and finding new uses for traditional crops.

The history of ethanol production offers a successful road map. According to Stallman, the United States produced only 100 million gallons of ethanol 20 years ago. Last year, the total approached 1.5 billion gallons.

"That takes a lot of corn, some 550 million bushels," he said. "This expanded demand adds 14 cents a bushel to the price our farmers receive." Harnessing technology to boost efficiency also will help America's farmers overcome economic challenges, according to Stallman. One of the most promising opportunities is the production of crops enhanced through biotechnology.

According to Stallman, biotech crops offer distinct production advantages for farmers and enhanced product qualities for consumers, and they are beneficial to the environment. Because the integrity and safety of the nation's food supply is paramount, approved biotech crop varieties undergo rigorous scientific scrutiny.

"I am confident that increased evaluation and examination by experts of the biotechnology process itself, and the products that it develops, will permit more rapid consumer acceptance of the innovations," Stallman said.