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Even with prices high, farmers look forward to new Farm Bill Sunday, Apr 20, 2008 By Aaron Sadler Stephens Washington Bureau WASHINGTON - Sky-high grain prices ease Clay Eifling's mind only so much. The Lincoln County rice farmer acknowledges that he and other southeast Arkansas growers are doing OK without much government help, thanks to prices that hit a record Friday for the seventh time this month. In spite of his current prosperity, however, Eifling keeps an eye on the goings-on in Washington, where a protracted fight over a new version of the Farm Bill has Arkansas farmers frustrated - because Eifling said he knows the strong market prices won't last long. "When it swings back the other way, the farmer is going to need a landing pad," he said. President Bush on Friday signed the fourth short-term extension to the farm legislation that expired last September. Senate and House negotiators are at a standstill on how to pay for the measure, a broad bill that covers food stamps, conservation efforts and school lunch programs, as well as farm subsidies. Short-term fixes don't help farmers who must plan for the future when they buy equipment or rent land, said Jay Coker of Stuttgart. Coker farms 2,500 acres, mostly rice, in Arkansas County. He said the high commodity prices are somewhat offset by increasing fuel, seed and fertilizer costs. Knowing there is a government subsidy "safety net" helps every cog in the agribusiness industry run more smoothly, he said. "We need to have some stability, we don't need to be facing another unknown," Coker said. "We've got landlord-tenant relationships that depend a lot on rent structures. Farmers may change their acreage mix depending on what's in the Farm Bill. I think it's important we have one." The pending legislation sets some limits on subsidies to wealthy farmers. The president has threatened to veto any version of the bill that doesn't further cut subsidies since farm prices are so high. The bill would cost about $280 billion over five years. Congressional negotiators are wrangling over how to pay for about $10 billion of the total. House negotiators have thus far balked at a Senate plan to provide several tax breaks, including incentives for racehorse owners and timber producers. Sen. Blanche Lincoln, D-Ark., is a staunch advocate of the tax proposals. She said the provisions would benefit a state where timber is the second-largest commodity and where the horses run at Oaklawn Park. Agriculture committee leaders said Friday they were closer than they have ever been to reaching a compromise. "We're talking about a $600 billion bill (over 10 years) and certainly we are not going to let down the working farm families of this country over some of these minor disputes we ought to be able to resolve," Lincoln said. Rep. Mike Ross, D-Prescott, urged colleagues in the House to accept the Senate tax breaks. USA Rice Federation, the industry's advocacy arm, wants a Farm Bill now, said spokesman Chuck Wilson. Even a one- or two-year extension of current farm law is dangerous, Wilson said, because the federal budget situation next year is unknown. "You could end up getting a Farm Bill that's not as good as what's been put out now," Wilson said. "From the standpoint of the farmer, they're looking at the extent of the Farm Bill because nobody knows what it will be like next year or the year after that or 10 years from now." An extension of the current law disrupts payment schedules, too, said Glynn Guenther, who farms in Jefferson County. "Farmers like to have things concrete and know where they are going, have a plan, and know what they can count on," Guenther said. "I think if you talk to 100 people, you'll hear the same thing: We're ready for it to be behind us and move forward." Eifling said the Farm Bill fight won't affect farmers much unless prices fall. "I think most farmers, the prices are so high right now, that they're more focused on that than what Congress is doing," he said. "It hasn't put me in a bind yet." |
