The Plight of Absorbing Input Costs

March 30, 2001

Farmers face costs that cannot be passed along for products they must buy in order to produce agricultural commodities. That, coupled with continued low prices, makes another round of farm assistance necessary this year, according to Bob Stallman, president, American Farm Bureau Federation. "Discussion is under way now in Washington to take up and tackle the many problems facing agricultural producers, with special emphasis on assuring an adequate amount of assistance to keep families on their land until stability and profit opportunity is restored," he said.

Some legislators believe a new farm bill will be in place this year, said Stallman. "Others believe emergency assistance will be needed for this year as the new farm bill moves toward completion next year. Farm Bureau and just about every other farm organization is urging Congress to devote a part of this fiscal year's budget to economic assistance for farmers and ranchers. Why? Because this year looks to be an economic continuation of previous years," he added.

Based on the current outlook, commodity prices are not likely to increase significantly nor are input costs such as fuel likely to decline to any large extent. "U.S. regulators will not soon lose their love of regulating, resulting in oppressive costs on agricultural operations. Other nations will not suddenly drop their protectionist policies," Stallman said.

"The need for a stable farm sector is unquestioned," Stallman added. "Efforts by our elected leaders to achieve this goal are admirable and appreciated by farmers and ranchers everywhere. Farm Bureau is proud to work with such devoted policy makers. Together, we can develop agricultural policies and programs whose goals offer prosperity, not mere survival. Until that happens, though, the federal budget must anticipate and provide the necessary assistance for farm and ranch families that will promote security and stability throughout rural America."