Testimony by Leonard Stone, MFU Board

Hello, my name is Leonard Stone. I farm near Geraldine, Montana. I am the Secretary/Treasurer for Montana Farmers Union. Senator, thank you holding this listening session today.

We are at a critical time in production agriculture where we, as producers, face many challenges as well as numerous opportunities. The United States Government can, and should be, instrumental in positioning family farmers and ranchers to minimize the challenges and capitalize on the opportunities.

Most importantly, farmers and ranchers want to be competitive and profitable. They want to be able to pass their land on to the next generation in good conscience knowing that the land will remain profitable.

You know as well as I that agriculture is the backbone of Montana’s economy. Along with the rural communities and business it supports, production agriculture provides a way of life unsurpassed by any other place in the world. Unfortunately, our family farms, ranches, and rural communities are faced with the real and potential threat of being forced off the land they have worked, often for generations.

The market price offered farmers simply does not reflect the ever-increasing input costs. Disasters, ranging from drought and wildfire to flooding and hurricanes, skyrocketing fuel costs, high fertilizer expenses, and transportation costs take a little more of a producer’s profit each year. On the other hand, the market price we are paid for our goods does not rise with the inflation of our input costs. This puts excessive strain on those of us just trying to turn a profit, pay our land payments and finance the next year’s production.

Indeed, there are many challenges to American agriculture.

Farmers and ranchers are prepared to meet these challenges head-on. We believe a farm bill can be drafted to address the needs of agricultural producers, protect our affordable, safe food supply and promote energy independence for the security of our nation.

First and foremost, Montana Farmers Union advocates extending the 2002 Farm Security and Rural Investment Act (what is commonly called the Farm Bill) for two years. We are concerned that budget, trade, and economic climates are not currently conducive to writing a solid farm bill that meets the needs of both producers and consumers. Extending the present farm bill gives sufficient time to assess the current legislation and make any necessary changes.

When it is rewritten, the next farm bill should provide a set of tools farmers and ranchers can use to achieve maximum profitability in the marketplace, ensure affordable, quality food for consumers and address this country’s dependency on foreign oil.

First, we believe strongly that the next farm bill must include a permanent weather related disaster program. Every year a natural disaster occurs in many locations across the country and producers are forced to ask for short-term disaster assistance, hoping they will receive enough to make it to the next year—and hope even more that next year it rains.

A plausible funding solution for offering a permanent relief component would be to replace decoupled payments to producers with permanent nationwide disaster relief.

Second, I would like to address the payment component of the farm bill.

In the current farm bill, the counter-cyclical safety net approach works well and should be continued.

We do not support calculating loan rates based on an average cost of past market prices. This formula is out of date due to the as it does not account for the vastly higher production costs resulting from escalating energy costs. Thus, the loan rate should be figured at a higher price. To do this, we call for the loan rates to be based on production cost rather than average market prices.

Third, we support expanding the conservation programs outlined in the 2002 Farm Bill. We support the full funding of CSP.

We also support CRP, though we do offer some modifications. CRP should only be continued in the most environmentally sensitive area, and shorter-term CRP contracts for specific conservation needs should be offered. The enrollment of whole farm CRP contracts should be prohibited.

Finally, we support, and continue to work for, an energy policy that utilizes the renewable energy sources found right here at home, including wind, solar, anaerobic digesters, ethanol, and biomass. Development of these resources must receive absolute attention if we are to reduce our dependence on foreign oil.

The bottom line is the agricultural policy of the United States must serve to assist our family farms and ranches. We, as a nation, cannot afford to stand idly by while the backbone of Montana and the Heartland of our nation suffer.

Senator Baucus, thank you for coming to Fort Benton to hear our thoughts for the next farm bill. We appreciate you giving this legislation the attention it deserves.