Mr. Speaker, I rise today to honor our Nation's agricultural producers. U.S. agriculture is innovative, adaptive and certainly responsive. I am here today to celebrate National Ag Week which ends tomorrow, as well as celebrate National Ag…
Mr. Speaker, I rise today to honor our Nation's agricultural producers. U.S. agriculture is innovative, adaptive and certainly responsive. I am here today to celebrate National Ag Week which ends tomorrow, as well as celebrate National Ag Day, which we celebrated on Wednesday.
It goes without saying that agriculture is tremendously important to my district and the Nation as a whole. I hope you join me in celebrating everyone who works so hard to provide nutrition for the world.
I represent one of the largest agriculture districts in the country. My district ranks first in the value of sales of grains and oil seeds, second in total value of agricultural products sold, and first in cattle and calf inventory. According to the Nebraska Department of Agriculture, my State ranks first in the Nation in commercial red meat production as well.
In 2005, agriculture industry cash receipts contributed more than $11 billion to Nebraska's economy. Over 20 percent of all Nebraskans are employed in farm or farm-related jobs. Every dollar in agriculture exports generates $1.48 in additional economic activity such as transportation, financing, warehousing and production. Cash receipts from farm marketings contributed more than $11 billion to Nebraska's economy in 2005.
As impressive as those facts are, I do want to make sure that the rural way of life is enhanced and certainly encouraged to grow. As a member of the House Agriculture Committee, I look forward to helping draft the reauthorization of the next farm bill before it expires in September. My goal is to create a workable, comprehensive package which will strengthen American agriculture and provide long-term stability for our Nation's producers. Any attempt to make major reforms of the current farm program must be in the long-term interests of American agriculture. We know that we need good, sustainable policy. Taxpayers appreciate that, markets appreciate that, and we can achieve that with a good, hearty discussion. We must also aggressively pursue new markets and break down barriers to trade with other countries.
In doing so, we must remain mindful of other aspects of rural life, and that is, the shrinking communities throughout Nebraska and other rural areas. I serve as a member of the House Agriculture Subcommittee on Rural Development, as well as the House Rural Caucus, and I know we must do all we can to strengthen and protect our rural communities, the backbone of our values and way of life. I look forward to helping create strong, sustainable world economies and responsible tax policies to encourage economic development for these areas.
As a member of the House Science and Technology Committee, I am also putting a priority on expanding modern technology in our district to support new and existing businesses, attract new employers and make our rural communities more competitive in the modern economy.
So what are we really celebrating this week? National Ag Day is a day to recognize and celebrate the abundance provided by agriculture and our Nation's agriculture industry. Every year, producers, agriculture associations, corporations, universities, government agencies and countless others across America join together to recognize the contributions of agriculture during this week.
This year, National Ag Day was celebrated on March 21, 2007, the first day of spring, and National Ag Week of course runs through the rest of the week. Ag Day was first celebrated in 1973, and this is the 34th year of celebrating Ag Day on the first day of spring. I am proud to have this opportunity to make these remarks to take part in this celebration.
The Agriculture Council of America hosts the campaign on a national level; however, awareness efforts in communities across America are as influential, if not more, than the broad scale effort. If you are interested, I recommend checking out www.agday.org, once again www.agday.org. The Web site has a tremendous amount of information, and I thank the ACA for letting me use their information here today.
Ag Day is about recognizing and certainly celebrating the contribution of agriculture in our everyday lives. The National Ag Day program encourages every American to understand how food and fiber products are produced, to value the essential role of agriculture in maintaining a strong economy, appreciate the role that agriculture plays in providing safe, abundant and affordable products.
Why do we celebrate agriculture? Certainly, agriculture provides almost everything we eat, use and wear on a daily basis, but too few people truly understand this contribution and certainly may not appreciate it as we should.
This is particularly the case in our schools where students may only be exposed to agriculture if they enroll in the very specific and related vocational training. By building awareness, the Agriculture Council of America is encouraging young people to consider career opportunities in agriculture.
Each American farmer feeds nearly 130 people, a dramatic increase from 25 people in the 1960s. Let me repeat that: each American farmer feeds nearly 130 people and certainly a dramatic increase from the 25 people that each American farmer fed in the 1960s. Quite simply, American agriculture is doing more and doing it better; and as the world population soars, there is an even greater demand for the food and fiber produced in the United States.
From a team of horses in the early 1900s to tractors with the power of 40 to 300 horses today, American farmers provide consumers with more and certainly better quality food than ever before. In fact, one farmer now supplies food, as I mentioned earlier, for about 129 people very specifically in the U.S. and abroad, compared to just 25.8 people in 1960.
The efficiency of the American farmer pays off in the price American consumers pay for food as well. The United States consumers spend roughly 9 percent of their income on food, compared with 11 percent in the United Kingdom, 17 percent in Japan, 27 percent in South Africa, and 53 percent in India. That is a pretty good deal.
This great value is due in large part to improved equipment efficiency, enhanced crop and livestock genetics through biotechnology and conventional breeding, and advances in information management.
All Americans are asked to enjoy and admire the wonders of American agriculture as National Agriculture Day is celebrated on the first day of spring as it was this last week.
Today's farmers work nearly 3\1/2\ times more land than their predecessors from the 1900s. Their needs are different, the crops are different, and the rules governing production practices are different. Most American farms are still family farms. Today, almost 99 percent of all U.S. farms are owned by individuals, family partnerships, or family corporations. Less than 1 percent of America's farms and ranches are owned by non-family corporations according to the Census of Agriculture.
Biotechnology certainly increases capacity and product quality. It is another factor in efficiency of American farmers in their ability to provide more and certainly higher quality food and livestock. Biotechnology provides benefits similar to traditional plant and livestock breeding but does so in a more controlled environment and with faster results.
Advancements made in plant biotechnology provide consumers with better quality products in many areas, and those benefits are just beginning.
There are many products in the biotechnology research pipeline that will provide better livestock feeding, resulting in leaner meat for consumers. Many of these same products will lessen the environmental impact of livestock production by reducing waste and/or the chemicals found in animal waste.
Pharmaceutical companies are actively working with farmers to develop crops that can go directly from the field to pharmaceutical production, eliminating some of the processing steps that occur in today's operations. This research will significantly reduce the costs required to produce many life-saving drugs.
Research and technology advancements have also resulted in new uses for commodity crops like corn, soybeans and various grains. Use of products like ethanol and soy diesel will reduce American dependence on fossil fuels and improve air quality throughout the United States and the world. Ethanol is the largest industrial use of these commodity crops, but soy diesel and other uses are emerging every year.
When it comes to ethanol, America's farmers do not just produce fuel for our bodies. Crops such as corn and soybeans are used to produce fuel for our vehicles. Renewable fuels contribute to a cleaner environment, reduce pollution and reliance on foreign oil and contribute to the stability of the world farm economy by creating commercial markets for crops.
With the record production of 2.81 billion gallons of ethanol in 2003, 1 billion bushels of corn and 12 percent of the grain soybean crop were used to produce fuel for our vehicles. In 2003, 73 ethanol plants were in operation in the United States, several in my district and in Nebraska. In fact, according to the USDA, one in every 10 rows of corn went into ethanol production in 2003. In both his 2006 and 2007 State of the Union addresses, President George Bush called for making renewable energy sources a national priority.
His recent call for 35 billion gallons of renewable fuels, including ethanol and biodiesel, has led to crop producers and customers alike asking how we will meet the challenge without disrupting traditional markets.
The demand for corn, for ethanol production grew rapidly in 2006, and it will grow rapidly again this year. That has caused concern among corn and other end users, including the livestock industry and importers, like Japan. There is no question that a big transition is taking place. As producers will have to react more quickly to the market, so will our customers, the livestock industry, importers and ethanol industry.
There are new markets for ethanol 85, or E85, as we call it. Ethanol today is largely a blend component with gasoline. E85 is a mix of 85 percent ethanol and 15 percent gasoline. The ethanol blend adds octane and displaces toxics, which helps refiners meet Clean Air Act specifications. There are about 600 E85 refueling stations across the country. New market opportunities include E85 and ethanol fuel cells. Today there are millions of flexible fuel vehicles capable of using E85, but they make up less than 3 percent of the total U.S. motor vehicle fleet.
A valuable coproduct of ethanol is dried distillers grain solubles, a high-protein feedstock. A bushel of corn used in the dry-grind ethanol process yields 2.8 gallons of ethanol, 17 pounds of carbon dioxide and 16 pounds of distillers grains. Wet grains go to dairy and cattle rations; dry goes to hog and poultry, or when it is shipped. A majority of DDGs is fed to beef and dairy; however, swine and poultry consumption is increasing, although a very small percentage can be used now as the feed industry gains a better understanding of how best to utilize that product in those rations.
According to commodity specialist companies, dairy accounted for 45 percent of 2005 distillers grains consumption in North America, while beef accounted for 37 percent. Swine accounted for 13 percent of the North American distillers grains use, while poultry made up 5 percent.
In the 2005-2006 marketing year, 8.35 million metric tons of distillers grains were produced. In 2006 and 2007, more than 10.8 million metric tons will be produced. By 2011 and 2012, the industry is expected to produce more than 20 million metric tons.
The supply of distillers grains has a displacement on the corn feed market. In 2005 and 2006, distillers grains displaced an estimated 3.89 million bushels of corn from feed markets, making that corn available for other uses.
Ethanol and biodiesel are just the beginning. Research continues to find new uses for agriculture commodities and waste. For example, livestock manure is being used to create electricity. Commodities such as soybean and canola are being developed as lubricants to replace petroleum-based products. Corn starch is replacing petroleum-based plastics. It's exciting to see these advancements.
American agriculture can also be celebrated for its effort in environmental conservation. Farmers and ranchers provide food and habitat for approximately 75 percent of this Nation's wildlife. The current farm bill has provisions for farmers to create environmental habitats that will ensure protection of the land and water resources of this country.
Farmers use computer and satellite technology to map the fields for production inputs. This increases yields and reduces crop inputs like fertilizer and crop-protection chemicals. With today's technology, farmers are better able to match seed production characteristics and production practices to soil type and climate conditions. The result is higher yields with lower input costs for more efficient use of chemicals, fertilizers and tillage. Ultimately, that results in more food at a lower cost for consumers.
Today's farmers understand the importance of improving the quality and quantity of food available to the world. According to the U.S. Census Bureau, it is estimated that there will be 7.5 billion people in the world by the year 2020. We currently are at 6.2 billion. It's agriculture's job to find a way to feed those people.
Advancements in crop technology, equipment technology and information management will make that possible. American farmers and others involved in the agriculture industry have met and will continue to meet this challenge again and again. World population growth is creating needs for food and fiber, obviously. World population is at 6.2 billion today, and expected again to reach 7.5 billion by the year 2020. There will be millions of new mouths to feed, many of whom rely on the United States' food production to meet this need.
The United States is best positioned to meet this growing need, as agriculture is America's number one export. Again, agriculture is America's number one export. About 17 percent of raw U.S. agriculture products are exported yearly.
U.S. farmers and ranchers produce more than 200 raw commodities yearly for domestic and export markets. One-fourth of the world's beef and nearly one-fifth of the world's grain, milk and eggs are produced in the U.S.
Through research and changes in production practices, today's food producers are providing Americans with the widest variety of foods ever. Research and advancements in biotechnology are now in the marketplace with tastier fruits and vegetables that stay fresh longer and are not damaged by insects. Consumers derive health benefits from changes in farm production, including less fat in meat, longer-lasting fresh fruits and vegetables, as well as tofu, a soybean product which has been shown to reduce the risk of some cancer and heart disease.
Certainly technology leads the way in today's agriculture protection. Precision farming boosts crop yields and reduces waste by using satellite maps and computers to match seed, fertilizer and crop- protection applications to local soil conditions. Sophisticated global positioning systems, as we call GPS, can be specifically designed for spraying herbicides and pesticides. A weed detector equipped with infrared light identifies specific plants by the different rays of light they reflect and then sends a signal to a pump to spray a preset amount of herbicide onto the weed.
Biogenetics is another technology that is being utilized in crop production. A particular trait is implanted directly into the seed to protect the seed against certain pests. Artificial insemination of livestock is producing more and certainly better meat supplies.
Farmers are utilizing four-wheel-drive tractors with up to 300 horsepower, requiring fewer passes across fields, saving energy and time. Huge combines are speeding the time it takes to harvest crops. That leads to more efficient use of energy.
With modern methods, 1 acre of land in the U.S. about the size of a football field can produce 42,000 pounds of strawberries, 11,000 heads of lettuce, 25,400 pounds of potatoes, 8,900 pounds of sweet corn, or 640 pounds of cotton lint. America is producing not only more food, but certainly higher quality and lower costs.
Two out of every three bushels of corn in the world originate in the United States. In 2001, 45 percent of the world's soybeans were grown in the United States. American consumers spend the lowest percentage of their annual income on food, just 9.3 percent. Nearly 19 billion pounds of pork, the most widely eaten meat, were processed in 2001. Cotton is by far the most dominant fiber produced in the United States, and, as you know, is used for apparel, home fabrics, as well as industrial uses.
Fertilizer and pesticides contribute to increases in production, as crop-production products have tripled the output of resource-intensive food like cooking oil, meat, fruits and vegetables. Crop-production products have doubled the production of world food calories since 1960. Without synthetic crop-production chemicals, American farmers certainly cannot feed the world.
Farmers are good stewards of the land's environment as well. Farmers and ranchers are the first environmentalists, maintaining and improving the soil and natural resources to pass on to the future generations. Farmers use reduced tillage practices on more than 72 million acres to prevent erosion. Farmers maintain over 1.3 million acres of grass waterways, allowing water to flow naturally from crops without eroding soil. Contour farming, planting crops, which is planting crops on hillsides instead of up and down, keeps soil from washing away. About 26 million acres in the United States are managed this way. Cattle ranchers and others control water run-off with sod waterways and diversions, erosion-control structures and catch basins.
Just as urban families recycle grass, newspaper and aluminum, farm families have practiced recycling for a long time by applying manure to fields to replace nutrients in the soil. Food service food scraps are used to make animal feed. Agriculture land provides habitat, again, for 75 percent of the Nation's wildlife.
Let's discuss the profile of the farmer. More than 3 million people farm or ranch in the United States. Individuals, family partnerships or family corporations operate almost 99 percent of U.S. farms. Over 22 million people are employed in farm or farm-related jobs, including production agriculture, farm inputs, processing and marketing, and wholesale and retail sales.
According to the 2002 Census of Agriculture, 50 percent of the farmers are 55 years of age or older, up only 3 percent from 1997. The average age of the principal operator is 55.3 years. Forty-one percent of U.S. total land area is farmland. In 1900, the average farm size was 147 acres, compared to 441 acres today.
The top five agriculture commodities are cattle and calves, dairy products, broilers, corn and soybeans. U.S. farmers produce 46 percent of the world's soybeans, 41 percent of the world's corn, 20.5 percent of the world's cotton and 13 percent of the world's wheat.
Let me repeat that, because I believe that we are losing sight of how important these markets are. U.S. farmers produce 46 percent of the world's soybeans, 41 percent of the world's corn, 20.5 percent of the world's cotton and 13 percent of the world's wheat.
Farmers and ranchers are independent business people who provide for their families by growing and producing food and fiber. Farmers and ranchers are producing meat lower in fat and cholesterol. This has resulted in retail cuts that are 15 percent leaner, giving consumers better value for their dollar. For example, a pork tenderloin now has only one more gram of fat than a skinless chicken breast, one of the true fat lightweights, so to speak. Also much leaner beef cuts are being produced much more now than 20 years ago, resulting in 27 percent less fat reaching the retail case than in 1985.
Research and advancements in biotechnology are now in the marketplace with better fruit and vegetables that stay fresh longer and are not damaged by insects. A new technology called precision farming boosts the crop yields and reduces waste by using satellite maps in computers to match seed, fertilizer and crop-protection applications to local soil conditions.
As the amount of mechanization and horsepower and farm machinery has increased, the time needed to complete tasks has decreased. Combines, these huge machines used to harvest grains such as corn, soybeans and wheat, have dramatically changed agriculture. In the 1930s, before the machines were available, a farmer could harvest an average of 100 bushels of corn by hand in a 9-hour day. Today's combines can harvest 900 bushels of corn per hour, or 100 bushels of corn in under 7 minutes.
The efficiency of U.S. farmers benefits the United States consumer in the pocketbook. Americans spend less on food than any other developed Nation in the world. On average, again, in 2004, Americans spent only 2 percent of their disposable income on meat and poultry compared to 4.1 percent in 1970.
I think it's important, as we reflect on all of these numbers, it can be a little overwhelming. But it's important to reflect the importance of agriculture, as we look at National Agriculture Week, and certainly as we look to the future. Hopefully we can learn from our past, the policies that, perhaps, discourage trade or policies that come down in a Draconian manner on farmers and ranchers. I will get to more of that in a few minutes.
Meanwhile, I would like to yield to my friend from Iowa, as he would like to discuss American agriculture as well.
I thank the gentleman from Iowa (Mr. King). I appreciate the fact that you speak to the future. As we look at so many of the aspects of agriculture, I think sometimes we forget about the future and how far we have come.
We have water challenges in Nebraska. And it is interesting, in the middle of about a 7-year drought, I don't think enough credit is given to the better practices that have been engaged in Nebraska relating to irrigation, that we are seeing record amounts of yields, record yields amidst about 50 percent reduction in irrigation.
Now, there are also those critics out there, they tend to be critical of the fact that there aren't return flows from the former flowing of irrigation perhaps that many would consider waste. But it is interesting that as farmers become more and more efficient, they are also criticized along the way, and I think that that is unfortunate. When you talk about energy, it is absolutely vital that we realize that, even amidst corn prices that are strong, we have unprecedented costs of inputs especially related to energy, whether it is the fertilizer or whether it is the diesel for the tractor.
And that is what makes me nervous about these urges to regulate industry even more, that it will drive up the cost. And not only electricity for the consumer in their residence, but it will drive up the cost of energy, as we see it on farms and ranches. And that will drive up the cost of food, plain and simple. And as I stated earlier, we have come a long way in terms of producing food in an affordable format.
I was reading through, and I noticed part of the essay contest winner from the Ag Council of America, and this is the 2007 winner, LaTasha Cote, a 12th grader from Myrtle, Missouri Couch High School. And students from 7th to 12th grade submitted original essays of 450 words about the importance of agriculture in the United States. Under the theme, ``American Agriculture in 2025,'' students were encouraged to focus their essays on the potential landscape of American agriculture in 2025 based on where we are today and the opportunities that lie ahead. And Ms. Cote read her essay to industry representatives, Members of Congress, Federal agency representatives, media and others in a celebration of agriculture; and let me share with you just an excerpt:
``The alarm sounds off at about 8:00 a.m. A young man reaches over to turn it off, gets up, jumps in the shower, eats his breakfast, and then heads out the door toward the milk barn. There is no rush to get to the cows because they have already been milked.
``He begins to check the computer system to see the amount of milk produced from the third milking of the day. Immediately, a very precise chart pops up and gives the percentage of milk given per second, the amount of butter fat, and accurately tells the farmer the exact weight of the milk.
``Wait, where is the reality check? Well, there isn't one. This is only one example of how far the industry in all farms has come since the year of 2007.''
And I haven't had a chance to read the entire piece, but I wanted to take this opportunity to congratulate Ms. Cote and every student who submitted an essay in the contest. I think that it may be even sooner than 2025 when we see these things come about, but it is great to see young people looking to the future.
As we look at the big picture of agriculture, certainly globally we always think of trade, and I think the unfortunate situation with the closure of our beef, the rejection of our beef in many cases to Asia, but it does I think send a message to the larger issue of where we are at with livestock in America. It is interesting that we do find ourselves with a bit of a shortage of grain to feed our livestock.
And as we try to address this shortage, certainly, I think it can be best if the government stays out of the way. But when I hear concerns of this and the livestock industry, perhaps, getting a little worried, it worries me, too, because the livestock industry has been absolutely crucial to economies of rural America. And the fact that these economies are not, I think, appreciated like they should be, it is interesting to note how further regulations of the recent past have led to many livestock operations having to become much, much larger. And as they become much larger, certainly, others become concerned about the livestock waste.
And it was encouraging to me last year to finally see some understanding that we don't want policies that force the producer to get larger. We want them to have the options of getting larger should they pursue that. Should they feel comfortable with their current status, that is fine, too.
It is interesting, though, as we see large operators, small operators, middle-size, medium-size operators, we have to realize that I believe our fundamental responsibility is to create opportunities. Government can create opportunities, not through a check necessarily, but we can create policy opportunities so that the little guy has the option of getting larger and can prosper and pursue the economic dreams that they wish to.
And the gentleman from Iowa certainly pointed out the fact that there are a lot of promising scenarios out there. As I go across the Third District of Nebraska and I visit operators, whether they are small or large, it is so encouraging to see people engaged in the economy. And as they are engaged, whether it is at a beef cattle processing plant or a pork processing plant, or an ethanol plant, or whether they are even creating biodiesel in their garage, I think there is just tremendous opportunity, and that I believe it is my responsibility to maybe not protect that opportunity, but to expand that and to make sure that every producer, every taxpayer has that opportunity to grow and, hopefully, make a greater living, and the government won't take it all away from them, and they can reapply that through available capital back into the economy.
And if the gentleman from Iowa would like to participate, go ahead.
I thank the gentleman from Iowa. As I wrap this up, I certainly want to thank the gentleman for really focusing on the future, and I think the sky is the limit when we can focus on the benefits of agriculture and perhaps the things we take for granted.
But as we talk about the future and younger generations engaging in agriculture, I find it unconscionable that the so-called death tax, or, in a more technical sense, the estate tax, would go back up to 55 percent, and that a subsequent generation on a farm or ranch would have to come up with cash to inherit that farm or ranch. That is sad. That is un-American. I think it is insensitive to taxpayers, and I think it has an immense disregard for the future and economic impact that that would have.
I think too many people think that only certain departments of the grocery store really come from agriculture, as we would think of it. But the fact is it is involved in health care, whether it is pharmaceutical, surgical sutures, ointments, X-ray film, latex gloves, gelatin for capsules and heart valves, or with construction, lumber, paint, brushes, tar paper, other things. And I could go on a list that would take much more time than I can consume here today.
But the fact is, we have come a long way, and we can go a lot further as we focus on opportunities, as we look at the fact that we need each other. Farmers need consumers. Consumers need farmers. And in between those entities, there is opportunity, whether it is processing, whether it is research. I think we can go a lot further than we have already come as we look to the future.
Again I would like to thank the Agriculture Council of America for providing a lot of this information and the very hands-on approach that they take and certainly look forward to working with them as I serve the people of the Third District of Nebraska and as farmers of the Third District of Nebraska and farmers and ranchers continue to feed the world.
Thank you, Mr. Speaker.