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  • Industry Issues and Insights

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    Communications and media expert Rex Runyon provides news and perspectives from Washington, D.C. related to the feed industry and agriculture. He operates a public relations and consulting firm, Rex Runyon & Associates LLC, in a suburb of Washington, D.C., and can be reached at rex.a.runyon@gmail.com.

    Cloud of uncertainty lingers over agriculture

    Aug 3, 2011By Rex Runyon

    Breathe easy now. All is well in our nation’s capital. President Obama and our congressional leaders have finally reached a deal on raising the federal debt limit and not raising new taxes. According to the President, the agreement will lift “the cloud of uncertainty” that has been hanging over the USA and much of the world, threatening terrible consequences for all. No longer should we worry.

     

    Silly us. We should have known that our political leaders would come through. They always do at the last minute. My favorite public statement during the crisis came from Senator Mark Warner (D-Va.) who said something along the lines of "we all knew this was coming. Why do we always wait until near the deadline to act? If we don’t get this mess straightened out, we (meaning all of Congress) should be fired." Let’s hear it for the Senator. Rare words of wisdom from the mouth of a politician.

     

    The sad truth of all that has resulted from the debt ceiling negotiations is that the cloud of uncertainty has not been lifted. This nation’s citizens are dazed, confused and concerned. Business is unsure of what is going to happen. U.S. agriculture, in particular, faces some of the biggest uncertainties and obstacles of all.

     

    There will be severe cuts to agency budgets with the prospect of even deeper cuts to follow. Agriculture will probably absorb more than its share. Too often, those who don’t understand its importance look at agriculture and its guiding farm policies as expendable subsidies, unnecessary spending programs, self-serving regulations and other activities that lead to increased food prices, cost burdens, environmental deterioration and unfavorable global trade agreements for the U.S.

     

    Those critics lose sight of the fact that agriculture must produce more to feed an alarming increase in the world’s population numbers. The United Nations says that farmers must produce over 70% more food by 2050 to keep up with that growth. The only way to accomplish such a critical objective is to support agriculture, not attack it, and certainly not implement drastic budget cutting measures that redirect funds from farm programs to other areas. Modern agriculture production is more important now than ever.

     

    The 2012 Farm Bill will be one of the most important ones ever debated. Discussions have already begun. Certainly spending cuts will be required as Congress looks to reduce waste. But, Members of Congress must not overreact and cripple modern agriculture by hampering its objective of producing the most abundant, wholesome and safest food available. They must also not stack on new regulatory requirements that contribute to the tough regulatory challenges U.S agriculture faces today.

     

    I wish I could guarantee that these negative possibilities will not occur; however, the forecast is not promising. Despite statements to the contrary, a cloud of uncertainty continues.

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      Rex, I am glad you are blogging for us. I agree that there is definate cloud of uncertainty. Frankly, I do not trust congress one iota and feel they, unfortunately, will take a knee jerk approach to cutting ag programs. As you correctly stated, we, as an industry, need to produce 70% more food by 2050 to feed the globe. We need to partner with *all* governments around the world to accomplish this. Thank you for your candid post.

      Posted by : Jeff Miller_2 (Email) on 08/04/2011


      Rex: Good points on your blog. No doubt that USDA and ag appropriations will take a big hit, especially with the 2012 Farm Bill. But two-thirds of USDA's budget is now its food and feeding programs, and a major effort will be made by outside groups to maintain food stamps, WIC, and school meals. It should be an interesting year ahead. Keep up the good work.

      Posted by : pweller@agriwashington.org (Email) on 08/11/2011


      Rex, I am glad to see you speaking about something you're obviously very passionate about. How about looking pass the job Congress does and investigate the agencies to which Congress lays off assignments to get work done. The USDA was commissioned by Congress to oversee loans for the Army ARMS Program. The USDA pocketed its commission for a terribly botched assignment. Seems to me the agencies responsilble to Congress ought to be held accountable for such assignments given by Congress to facilitate the business of the people.

      Posted by : sywiley@pcpammo.com (Email) on 08/11/2011


      Rex, thanks for the insight. Unfortunately as you point out there still much work to be done. I hope they got the message that if they don't cut the spending another downgrade is in store. A Balance Budget resolution would help as well. Unfortunately Ag will get hit but evrything must be on the table. Entitlements, Defense, Medicare, etc. We have to start living within our means and not just raise taxes. The individual does much better with the money than the Government. Just look at Amtrack, the Post Office, etc. Keep the blogs coming!

      Posted by : Wiley Houchins (Email) on 08/12/2011


      Wiley, you are absolutely correct. Spending must be reduced and we need a balanced budget. We also need more Members of Congress thinking your way. Ever consider running for public office?Rex

      Posted by : rex.a.runyon@gmail.com (Email) on 08/15/2011


      Rex: President Obama indicated the 11th hour debt ceiling agreement will lift a cloud of uncertainty hanging over us all. To me that sounds much like Neville Chamberline's statement that he had secured peace in our time. This agreement is a fairly short-term agreement, about 6 months. Then guess what, we get to witness all the politicl rhetoric again and grandstanding again. However, since the elections will be much closer all the rhetoric will be heightened and far more inflammatory. Incivility and rock-solid accomplishments which benefit all of us are inversely related. Josh Hatkin

      Posted by : jhatkin1@yahoo.com (Email) on 08/20/2011


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