Note: This time of year there are lots of people making predictions about the new year. Since it is always easier to look back than to look ahead, I thought I would take a look back at the upcoming year. So this is my retrospective look at 2008 as I think it could turn out. This year has been a year when issues normally thought of as non-farm issues turned into major issues for agriculture. Take, for example, property taxes. Most Indiana homeowners and lawmakers did not consider reform of the state’s antiquated property tax system a major issue for farmers. As the governor and the legislature wrestled with a solution, Indiana Farm Bureau stood soberly in the middle demanding their voice be heard. In the end homeowners still got the biggest tax break, but farmers did make some progress and were successful in preventing the passage of a constitutional amendment that would have discriminated against them. While this is progress, it will take several more years to complete the process of reforming the tax system.
Again in 2008, the Indiana livestock industry found itself at the center of controversy in the General Assembly. Several bills were introduced to regulate CAFOs. Again environmental groups flooded lawmakers with misleading and emotional appeals. The pro-agriculture administration managed to keep setbacks and moratoriums from being enacted but increased inspections by IDEM were mandated in a bill that passed. Funding to hire more inspectors, however, was not passed so the future of increased inspections remains doubtful.
2008 was the year the Indiana corn checkoff program went into action. The farmers who direct how the funds are collected will direct the money toward educating Hoosier consumers about the benefits of renewable fuel. Unfortunately, continued negative media news coverage of ethanol negated their checkoff-funded media advertising campaign. Efforts are now being focused on a pump labeling campaign to show motorists each time they fill up that part of their gasoline is currently blended with ethanol – a fact of which most Hoosiers are still ignorant.
Energy was another one of those issues that most people did not consider ag related, even though it really is. An effort started in late 2007 gained momentum in 2008. The push was to increase the amount of ethanol blended into the nation’s gas supply. Despite the protests of automakers, it was proven this year that blending ethanol at the 15 percent and 20 percent level caused no problems with performance. Florida started the trend and hopefully Indiana will soon join the growing list of states that blend this higher level of renewable fuel. This movement, which would reduce the use of imported oil, has gained the notice of OPEC and is causing some concern in the Middle East.
This was the year we finally got a Farm Bill. While it is a new bill, very little has changed in U.S. farm policy. The final House/Senate agreement made few changes in the commodity title and only moderate changes in conservation programs.
After a bitter conference debate, the ban on packer ownership of livestock was tossed out. COOL was approved, but poultry was included in the mandatory program. The president signed the bill after tax hike provisions were removed.
This year’s crop year was not what any of us expected back in January. When Asian soybean rust blew into the Midwest in late June, soybean prices soared to $20.
They backed off into the teens as well-prepared farmers quickly got a handle on the infestation and limited its spread and damage. Corn prices continued to work above the $5 mark; even though yields were good, acreage was not enough to satisfy demand.
A good U.S. wheat crop calmed a jittery world wheat market but not before the EU dropped all restrictions in GMO grain, in order to assure they had an adequate feed supply.
The animal rights movement suffered a setback this year when an undercover investigation revealed funds from one of the nation’s leading animal welfare organizations had been used to fund acts of violence and vandalism. Public opinion turned against the movement, and they suffered several setbacks at the ballot box. Unfortunately, continued recalls by the food industry continued to erode consumer confidence in our food supply.
The new year of 2009 will certainly bring new developments. With Governor Daniels overwhelmingly reelected, he will likely continue to pursue his policy of growing Indiana agriculture. The new leadership in Congress, however, may shape a new direction in federal farm and trade policy. The Republican majority may finally get trade legislation such as the Korea FTA passed. One thing is for sure, 2009 will be just as unpredictable as 2008 turned out to be.
The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Gary Truitt may write to him in care of this publication. |