Farmfest Forums Offer A Variety Of Opinions

Every year many key agriculture issues are discussed as part of the candidate forums and feature forums that are held at Farmfest in early August. Candidate forums have been part of Farmfest in every even numbered year since 1990. In 2024, a U.S. Senate candidate forum and two and Congressional candidate forums were held, as well as a special Farm Bill forum, an ag outlook forum, and a discussion on the downturn in the farm economy. The candidate forums included all of the major candidates in Minnesota running for the various elected offices and the other feature forums included several national and state agricultural leaders discussing many of the key issues affecting farm families and rural communities in Minnesota and the Midwest.
 
Following are some of the main issues that were discussed during the Farmfest forums in 2024:

• Passing a New Farm Bill --- The inability of Congress to pass a new Farm Bill and provisions in the next Farm Bill were major discussion points in all of the candidate forums, along with the feature forum at Farmfest that focused on the new Farm Bill. The U.S. House Agriculture passed its version of a new Farm Bill earlier this year; however, the bill has not been voted on yet by the entire U.S. House of Representatives. The U.S. Senate has not yet released any version of a new Farm Bill.

 
Many of the candidates from both major political parties that participated in the Farmfest forums agreed on many aspects of the next Farm Bill, especially as it related to enhancing and improving the “safety net” programs for farmers. Many of the agriculture leaders that participated in the forums, as well as several of the candidates, proposed increasing crop reference prices, enhancing crop insurance options, and improving risk protection opportunities for livestock producers and farmers that raise specialty crops.
 
There was also considerable discussion regarding the importance of conservation programs and how those programs can enhance ongoing carbon sequestration efforts in the U.S. There was general agreement that the nutrition title of the Farm Bill, which accounts for over 80 percent of the annual Farm Bill spending, should not be separated from the Farm Bill. There was not a lot of discussion about specific provisions in the nutrition title. There was discussion during the Farmfest forums regarding several other programs and provisions that are part of the existing titles in the Farm Bill, including rural development, ag research and extension, trade promotion, livestock disease mitigation, beginning farmer loans, and hemp production.     
 
The 2018 Farm Bill originally expired on September 30, 2023; however, the current Farm Bill was extended until September 30, 2024. Now the question is: “Will we get a new Farm Bill passed in time for the 2025 growing season in the Midwest, or will we have another one-year extension until September 30, 2025 ?” Some of the candidates and other ag leaders that participated in the Farmfest forums were optimistic that a Farm Bill might be completed during “lame-duck” congressional session following the 2024 election. However, others pointed to the rather large cost of the Farm Bill and the partisan political divide in the U.S. as reasons that a new Farm Bill is not likely to pass in late 2024 or early 2025, with another one-year extension of the current Farm Bill being more likely.
 

• Downturn in the Farm Economy --- Whether it was comments by U.S. Senate or Congressional candidates, or insights from other Farmfest forum panel members, the continued tight margins and low profitability in farming was a big topic of discussion. Profit margins in crop production have been quite tight in the past two years, which could put some farm operations at the brink of financial disaster. Crop production expenses and land rental rates have increased substantially in 2023 and 2024, while crop prices for corn, soybeans and wheat have remained below breakeven levels, and are now at the lowest levels in several years. For farm operators that experienced crop losses in 2023, or may have a crop loss in 2024 due to weather issues, the financial situation may be even more severe. 

The struggling profit margins for crop producers was linked into Farm Bill discussions surrounding the need for improved risk management measures in the new Farm Bill. Much of the livestock sector has not fared much better from a profitability standpoint in the past couple of years. Iowa and Minnesota are the top two swine production states in the U.S. and most swine producers have had very low or negative profit margins in the past two years.
 
Dairy profit margins have improved in recent months; however, that followed a long period of very low profit margins that forced several dairy farmers to discontinue operation. Payments through the dairy margin coverage (DMC) program in the past two years helped e prevent even more small and medium sized dairy farms from being forced to exit the industry. The DMC program is authorized as part of the Farm Bill. Dairy and poultry producers have also been dealing with the impacts of the highly pathogenic avian influenza (H5N1) outbreak in certain areas of the U.S. Cattle feedlot operators and beef cow/calf producers have experienced the best profit margins in the U.S. livestock sector in the past couple of years.
 

• Importance of Ag Exports and Trade Agreements --- Most of the U.S. Senate and congressional candidates that participated in the Farmfest forums discussed the importance of ag exports and having strong trade agreements. However, some expressed concern about the potential for future trade disputes between the United States and China, as well as the lack of new trade agreements with other countries. There was also discussion regarding the fairness of current trade agreements with China and other countries, as well as with the United States-Mexico-Canada Agreement (USMCA) trade agreement. China, Canada and Mexico are the three largest trading partners for U.S. ag exports.

 

• Future of the Renewable Fuels Industry --- Many farm operators, ag and community leaders, and investors in renewable energy plants, are concerned about government policies related to the development and use of ethanol and other biofuels. Many States in the Upper Midwest, including Minnesota, have a very strong and well-established corn-based ethanol industry, which utilizes over 35 percent of the corn produced each year in the United States. The U.S. Environmental Protection Agency (EPA) has been slow to implement E-15 as an ethanol fuel blend for wide-scale use in the U.S. The renewable diesel industry in the U.S. has also been growing significantly in recent years, which has become more important for soybean usage in the past few of years.

 
Many leaders point to “sustainable aviation fuel” (SAF) as a key growth opportunity for both the ethanol and renewable diesel industries in the future. However, federal agencies have set up very stringent farm-level practices that farmers must follow in order to be eligible to sell their corn and soybeans to processing plants for SAF production. Due to the restrictions being placed on U.S. farmers, some feedstock for SAF production is being imported from other countries. In addition to the direct benefits to farmers, renewable energy plants have become cornerstones in rural communities by providing jobs, adding to the local tax base, and enhancing the overall economic vitality of the communities.
 
The candidates and ag leaders that participated in the Farmfest forums in 2024 discussed numerous other issues, programs and efforts that affect rural businesses, families, and communities in a variety of ways. This included the potential for disaster assistance for farmers and businesses impacted by 2024 weather events, dealing with the economic challenges currently being experienced by rural businesses, family health care access and costs, expansion of broadband coverage in portions of greater Minnesota, infrastructure needs, and other issues affecting agriculture and rural communities. The 2024 candidate forums and the other Farmfest forums can be viewed at: https://www.ideaggroup.com/farmfest.     
Note - For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions
Phone - (507) 381-7960; E-mail - [email protected]