Intro to the 21st Century Agriculture Project

Today, America's farmers and ranchers are facing an array of new challenges. Other nations are challenging key aspects of our farm safety net. In fact, the trend toward increasing trade liberalization could force the United States and other nations to reduce traditional crop subsidies and restructure future farm programs. Federal budget pressures will constrain our opportunities to expand existing programs or develop new programs in the upcoming Farm Bill. The price of fossil fuels, such as diesel fuel and natural gas, are expected to continue to rise, as world oil and gas supplies become tighter. And urbanization will continue to lead to the conversion of farmland to other uses.

Amidst these many challenges, lay many opportunities. Growing demand for biofuels, renewable electricity, outdoor recreation and preservation of open space are providing additional market-based income for more and more farmers and ranchers. Farm groups like the Iowa Farm Bureau and the Nebraska and North Dakota Farmers Unions are pioneering efforts to allow farmers to generate and sell carbon credits in existing voluntary carbon markets. By fostering these new markets, federal policies can help farmers and ranchers diversify their base of income support and increase their overall economic returns.

In our view, it is imperative that American farmers be empowered with the tools to succeed in the face of these challenges. A strong agricultural sector is a pillar of America’s growing economy, providing a secure domestic food supply, helping to reduce our dependence on foreign oil, generating renewable energy, increasing exports and providing needed income to rural communities.

Late last year, the Bi-Partisan Policy Center asked us to convene a series of meetings in 2006 to discuss these challenges and to recommend federal agricultural policies that can help American farmers succeed in the 21st century. These meetings, with leaders of agriculture and conservation organizations, took place in Washington D.C., on March 15, in Manhattan, Kansas, on May 25, and in Brookings, South Dakota on July 18. In addition, we commissioned a number of studies and reports well-known agriculture economists and technical experts to help inform our internal deliberations:

• the potential for expansion of the biofuels market in the United States;


• designing agriculture policies to encourage more efficient planting decisions and construct a stronger safety net;


• the economic costs and benefits of carbon regulation;


• the opportunities for farmers to generate carbon credits,


• the impact of global trade negotiations on American farm policy; and


• the costs and benefits of implementing a strategic biofuels feedstock grain reserve.

Based on input gained at these meetings, as well as a series of reports that are being performed on various agricultural policy topics, in Spring 2007 we intend to publish a comprehensive set of federal agricultural policy recommendations, which will be designed to provide greater net income to farmers, address issues raised in the recent World Trade Organization negotiations, and increase market opportunities for farmers.

Sincerely,

Tom Daschle, Bob Dole