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Ethanol, cotton subsidy among Farm Bill topics at forum (The Advocate)
Feb 23 2007http://www.2theadvocate.com/news/suburban/6006956.html?showAll=y&c=y
By PATRICK COURREGES
Advocate Acadiana bureau
RAYNE - Ethanol and concerns about federal aid for agriculture dominated Thursday's farm forum hosted by two congressman representing the breadth of Louisiana's coastal and near-coastal parishes from Mississippi to Texas.
U.S. Rep. Charles Boustany, R-Lafayette, who began the idea of the Farm Day 2007 forum, and U.S. Rep. Charlie Melancon, D-Napoleonville, spent the day speaking and listening to invited speakers and farmers about concerns with the new federal Farm Bill proposal and opportunities offered by the booming alternative fuel market.
The forum schedule was split into a morning session on Farm Bill issues dealing with such things as direct support payments and loans for farmers, as well as conservation matters and an afternoon session focused on how national energy policy will affect agriculture.
Boustany said he has been studying the Bush administration's proposed Farm Bill, and he wanted the chance to hear from people in the agriculture industry before that proposal reaches Congress.
Both Boustany and Melancon said no matter what the administration puts forward, Congress will have the final say on how the bill is written.
Melancon said much of the discussion dealt with broad generalities, because the administration has not yet put forward its full proposal.
The energy issue -particularly production of ethanol, bled into morning discussions of the economics for the agriculture industry.
Clyde Holloway, a former Louisiana congressman and state director for the U.S. Department of Agriculture's rural development program, said growing crops for ethanol or other alternative fuels offers limitless opportunities.
Referring to the recent opening of an ethanol plant in Jennings that uses such things as sugarcane bagasse to make ethanol, Holloway said he hopes to see Louisiana open 20 ethanol plants.
"I think this is going to be one of the saviors of agriculture," he said.
Tyson Redpath of Lesher & Russell, a firm that lobbies agricultural issues at the national level, said the "ethanol gold rush" has meant a boom for corn farmers because corn prices have risen.
He said that has had some ripple effect on other crops, such as soybeans.
Mark Keenum, USDA undersecretary for farm and foreign agriculture service, said about 20 percent of the U.S. corn crop is going to ethanol.
He added cotton farmers, on the other hand, recently finished a year in which the domestic use of cotton was at its lowest level since 1931, at the same time that exports of cotton have been falling off.
Keenum said cotton also was the target of a case brought by Brazil, claiming U.S. subsidies of cotton exceeded the limits set by international trade rules.
He said the U.S. lost that case and made changes, and Brazil is still claiming the support has not been cut back enough.
Keenum said Brazil may seek restitution of more than $3 billion.
He said the USDA is keeping that kind of thing in mind in crafting the initial draft of the new Farm Bill, and trying make it better able to withstand challenges through the World Trade Organization.
Keenum said the USDA also has the goals of making the new bill more market-oriented and more predictable for farmers making long-term financial plans.
Agriculture Commissioner Bob Odom said those working to craft and defend the Farm Bill need to remember it protects not only farmers in the industry, but consumers, because it helps shield them from the true cost of their food.