by Roger Zylstra, president of the Iowa Corn Growers Association

On November 15, the Environmental Protection Agency (EPA) released its proposed renewable volume obligations (RVOs) under the Renewable Fuel Standard (RFS).  Despite its lack of statutory authority to do so, the EPA proposed cutting minimum ethanol use from 14.4 billion gallons to 13.01 billion gallons. If finalized, this cut of 1.39 billion gallons will have economic and environmental consequences felt nationwide.

This is serious – as serious as anything I’ve dealt with in my 30 years of farming. As a corn farmer, I view the ethanol market as a home-grown value added opportunity. As a livestock producer, I know that all of agriculture is connected and better grain prices typically bring better livestock value. I have been to D.C. recently to present verbal comments to the EPA to convey just this message.

In a recent Cedar Rapids Gazette article, Iowa Governor Branstad is quote as saying he believes the EPA is “making a huge mistake” to reduce the renewable fuel standard, which in turn could push the price of corn below the cost of production, drive down farm land prices and cut the demand for farm machinery.

Governor Branstad is right; our farm futures hang in a delicate balance. Corn production is at 14 billion bushels with a 2 billion bushel carryover and corn prices are at cost of production. According to Iowa State economists, the economic impact on Iowa agriculture is projected to be near $1.4 billion.

I see corn not sold sitting in my bins with prices at cost or below the cost of production.  When farmers are squeezed, they aren’t able to spend money. When there isn’t money circulating through local economies, town square businesses close and communities struggle to keep people in town and students in the school. We know what happens in depressed agricultural times because it happened in the 1980s farm crisis.

The federal government estimated that farmland values plummeted nearly 60% in the Midwest in just four short years in the mid-80s. In that same time, record production and grain limits brought low prices plus exports decreased more than 20%. I don’t have a crystal ball, but research and some real life 1980s experience, tells me we aren’t nearing a proposed “blend wall” as the EPA proposes, but rather we are sending farmers crashing into a wall by reducing market growth through ethanol production.

Iowa might be miles from Washington D.C., but those miles are covered by many hard working farmers like us who are about to be squeezed by policy limiting our ability to farm today as well as our future ability to produce a crop and make a living.  We have the corn; we have the ethanol plants; and we have the infrastructure in place to help lighten our surmounting energy needs.

The EPA’s attempts to reduce the RVOs for 2014 are misguided.  Please contact the EPA today to tell them how this decision impacts your farm and community. Submit your views to the EPA by clicking on this link or sending your written comments via US mail to:

Environmental Protection Agency
Mailcode: 2822T Air and Radiation Docket ID No. EPA-HQ-OAR-2013-0479
1200 Pennsylvania Avenue NW.
Washington, DC 20460

Breaking news yesterday was a bit shocking as Congressman Tom Latham, my uncle and former sales manager for Latham Seeds, announced that he won’t seek reelection to Congress in 2014.

“My service to Iowa has never been motivated by titles, accolades or a drive to secure a place for my name in history or on a building,” Congressman Latham wrote in an email to constituents. “I have always been motivated by a responsibility and commitment to the people of Iowa, who elected me to faithfully work for an America that provides greater freedom and more opportunity for our children and grandchildren. But responsible leaders – regardless of what level they serve – must always take time to reflect on when it is time to step away from the task that they love. This is a discussion that I have every year with my family. They are my life.”

After 39 years of frequent travel and many long hours at the office, I can see how anyone would want to retire and enjoy “free time.”  During the first 20 years of Tom and Kathy’s marriage, Tom worked tirelessly to make a name for Latham® brand soybeans and to build a dealer network.  Since 1994, he has worked tirelessly to represent Iowans in our nation’s Capitol.

Tom has accomplished much in Congress, including securing funds for the national facility for USDA Animal Health in Ames.  He has been one of our country’s strongest advocates for ethanol and was awarded the 2012 “Fueling Growth Award” from a group representing America’s ethanol producers, who acknowledged his work for consistent and predictable federal policy that has helped create jobs in America.  He fought to preserve the tradition of protecting family farms from their own government by introducing the Preserving America’s Family Farms Act.   And as much as he has fought to make investments in rural America, he never lost sight of the fact that budgets must balance.

Indeed, Tom is a rarity in Congress.  There aren’t folks serving in Congress or working in Washington, D.C., today who understand farming or life in rural America.  The fact that population is shrinking in rural America means that, for first time in our country’s history, the influence of agriculture is waning.  U.S. Secretary of Agriculture Vilsack, while addressing a group of farm leaders last winter during a Farm Journal Forum, said rural America is becoming less relevant.

Lack of passion and commitment to agriculture is a major problem for all of us who live and/or work in rural America.  Ag literacy is one of our top challenges at the federal level.  Because Tom was raised on what is now an Iowa Century Farm in Franklin County and had agribusiness experience, he was often asked questions by fellow Congressman and staffers as they considered agricultural bills and policy changes.  There are only a handful of congressmen who share Tom’s background, experience, passion and commitment to agriculture.

As a result, things nobody would have imagined happening 40 years ago are happening now.  The EPA is cutting the ethanol mandate.  Activists are going against sound science, demanding GMO labeling and trying to force seed companies out of states like Hawaii.  It’s difficult to pass a Farm Bill of any kind these days.

Unfortunately, we don’t have enough government leaders who understand modern U.S. agriculture and its contributions to feeding the world.  Tom Latham understands the importance of this noble mission.  He has been a beacon of light for agriculture, and his light will be missed.  So as happy as I am for Uncle Tom and his immediate family, I’m sad for agriculture.

What does a farmer do in winter?  In addition to doing chores and plowing snow, I’ve been making my way through the stack of newspapers and magazines that got piled up during harvest.  One article I read this weekend was “Pew Commission 5 years later” written by Tyler Harris and printed in the September 2013 issue of Wallaces Farmer.

While I believe Harris was trying to report the facts, his article got under my skin.  I thought about titling today’s blog, “Trying to listen when steam is coming out of your ears!”  I’m getting worked up again just thinking about Harris’ article, but I’ll do my best to give you the jest.

The Pew Commission on Industrial Farm Animal Production (PCIFAP) issued a report in 2008 entitled, “Putting Meat on the Table: Industrial Farm Animal Production in America.”  It called for changes to meat production in the name of public health, environment, animal welfare, and the economics of rural communities.  The Commission made recommendations against the use of antimicrobials fed to meat animals and proposed changes to current livestock waste management systems.

Many of these recommendations were opposed by the National Pork Producers Council and the Animal Agricultural Alliance.  Because these groups questioned the study’s objectivity, a follow up study was led by Robert Lawrence, director of the John Hopkins Center for a Livable Future.  Results from that study were released this fall.  Basically, this follow up study upholds the Pew recommendations from 2008, and Lawrence is quoted as saying, “… the urgency to implement them fully grows each day.”

I’m trying very hard to keep an open mind here, but the “Devil” is in the details!  The PCIFAP consists of 15 commissioners “who bring individual expertise in diverse fields including public policy, agriculture, veterinary medicine, public health, animal welfare, the food industry, and rural society.”  Until you read through the list of commissioners and research their backgrounds, one would think this group would represent experts on all sides of the issue. Not the case!

The makeup of this Commission is clearly one-sided.  That’s why today I’m using my own experience to refute each recommendation the Commission made:

1. The Commission’s first recommendation addresses antibiotics use within the livestock industry. Mainly, the Commission wants to stop use of all non-therapeutic antimicrobials.  Fact is, a very small amount of antibiotics are used in this way.  Antibiotics add to feed costs, so farmers don’t use them unless they’re needed.  Plus, modern buildings are so much better for controlling disease that hogs get sick less frequently.  When my hogs were raised outside, I was always medicating due to stress and exposure to stray animals and weather.  No one has proved that resistance is coming from antibiotics used in this fashion.
2. The Commission’s second recommendation concerns a government database and disease monitoring.  In my own operation, I know where the pigs come from and what their history is. We already have a great system in Iowa to deal with any outbreak of disease, so we don’t need additional rules.
3. In its third recommendation, the Commission addresses industrial waste from the “inflexible and broken system” that exists. Now this is way out of line!  I agree there is not much flexibility with our current manure management plans.  But calling manure an industrial waste is simply wrong!  Manure is a valuable fertilizer, and no farmer wants to waste valuable inputs.
4. Recommendation number 4 deals with animal welfare.  There is a distinct different between treating animals humanely and treating them like a human!  Farmers treat their animals humanely every day because we want the livestock’s environment as stress-free as possible.  The whole premise behind modern production techniques is to give our animals the very best care possible!  Following a recent snow storm, I stepped inside one of the modern barns and snapped a picture of a pen of pigs. The wind chill outside was at least 20 below zero, but my pigs were warm and cozy.  As much as these experts want to return to the good old days, I would never wish that for my pigs!
5. The Commission’s fifth recommendation calls for more state and federal regulations to “level playing field for all producers.”  This is America, folks, where free enterprise and free choice are supposed to reign supreme!  Let the free market – not government regs – rule.  Leveling the playing field removes incentives from those who have figured out how to do a great job and gives advantage to those who are inefficient.  If a producer wants to remain small, he must find a niche market – and many have.  It’s not government’s job to decide the winners in business!
6. The last point calls for increased government funding to expand and reform animal research. Last I knew, private companies were doing a pretty darn good job already!

The point I want to make is that the Pew study is very well funded and get a lot of attention, so it puts pressure on elected officials to make more rules that end up hampering business. More regulations leads to higher production costs, which leads to fewer investments by farmers and businesses, which leads to fewer jobs and higher food costs.  We must remain diligent in protecting the great food system we already have in this country, which produces the safest cheapest food in the world!

Only top-grade soybeans go into a Latham® bag. Our team members take so much pride in what they produce, the word “quality” is stamped on every unit.