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Capitol Comment
by Senator Kay Bailey Hutchison


Farming for Our Future
February 16, 2007


Thomas Jefferson once wrote, “Cultivators of the earth are the most valuable citizens. They are the most vigorous, the most independent, the most virtuous, and they are tied to their country and wedded to its liberty and interests by the most lasting bonds.”

More than 200 years later, farmers and ranchers in Texas continue to be tied to their country and wedded to its liberty. The agriculture industry contributes $73 billion to the Texas economy annually, and the work ethic and love of the land exhibited by Texas farm and ranch families embody many of our best values.

Texas is home to 230,000 farms covering almost 130 million acres, and we consistently rank as the nation’s leader in agriculture production of cotton, corn, wheat and livestock. Texas deserves a sound national farm policy, and I remain committed to doing all I can in the United States Senate to protect the needs of Texas farmers and ranchers.

For the past five years our state has benefited from the farm bill of 2002. This legislation provided a carefully crafted balance of support for commodities, conservation and nutrition. It also provided a necessary and adequate safety net for farmers and ranchers who not only produce our domestic food supply but feed much of the world as well.

The farm bill that I supported and Congress passed in 2002 was critical at the time because commodity prices were low, exports had declined for five consecutive years, and the average debt-to-asset ratio was nearly 15 percent. Since then, commodity prices have appreciated with exports increasing every year – reaching a record level of $68.7 billion in 2006 and projected to climb even higher in 2007 to $77 billion. In addition, the debt-to-asset ratio fell last year to 11 percent, the lowest ratio in recorded history, and renewable energy continues to boost rural economies. These achievements are the result of sound farm policy. However, the fundamentally sound policy has not fully protected our state’s farmers and ranchers from natural disasters that have hurt our producers. Drought and wildfires have negatively impacted many rural areas in Texas.

Since most farm bill programs are set to expire this year, I am working with my Senate colleagues on a proposal that extends the success of the current farm bill. The 2002 act worked for producers, and I believe we must continue to invest in farmers, ranchers and rural communities. One of my top priorities during the 110th Congress is ensuring the same predictable level of support for commodities, conservation and nutrition as provided by the successful 2002 farm bill, as well as addressing needs of rural areas.

The administration recently released a set of farm and rural support proposals for consideration. Texas would benefit significantly from $1.6 billion in proposed loans to complete the rehabilitation of the 1,283 nationwide certified Rural Critical Access Hospitals, of which 76 are in Texas. These hospitals provide vital services to communities for whom larger hospitals are inaccessible. Modernizing these hospitals will provide better health care to Texans across the state. Also proposed is an additional $500 million over 10 years in loans and grants to support the completion of rural infrastructure projects involving water supplies, waste disposal, distance learning and telemedicine.

I remain committed to developing and harvesting all available energy sources, including biofuels. While conventional ethanol is derived mainly from corn, there is vast potential in cellulosic ethanol, which can be made from switchgrass and sugarcane, both of which are economically feasible in Texas. The administration’s proposal provides $2.1 billion in loan guarantees to support cellulosic ethanol projects in rural areas and $150 million for biomass research competitive grants, focusing on cellulosic ethanol.

Agriculture is the first industry of America – the industry that feeds us, clothes us, and increasingly satisfies our energy needs. When farmers and ranchers thrive, our future grows brighter.

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