Farm Progress

Lament or act: That is the choice

Commentary: There are a lot of issues floating around agriculture these days; it’s time to consider some strategic moves.

Willie Vogt 1, Editorial Director, Farm Progress

February 20, 2018

3 Min Read
REGULATION CHALLENGE: While the Trump administration is working to reduce new regulations and eventually get rid of older ones, on the state level there could be some farm challenges.EtiAmmos/iStock/Thinkstock

Somedays the news sounds almost like the start of an infomercial where the punchline is some great product that will solve all your ills. And by gosh, we have ills in agriculture. NAFTA is up for grabs. The market is in turmoil. Regulations may be going away, but they’re harder to kill than many think — and state legislatures are still at work, too.

But as with any infomercial, there is a solution. It’s time to act. To look around you and see what opportunities there are.

In the case of NAFTA, you need a contingency plan. What happens if we walk away — even for a short time? We still trade with Canada and Mexico, but it’ll be trickier, and the short-term price pressures could be bad. Your risk management plan should include a scenario where there’s impact from a big NAFTA walkaway. While it may not happen, even the threat can take the wind out of any positive market sales.

The market is in turmoil. In fact, that may be a good thing. Every risk management expert I’ve ever talked with says that what markets need is volatility. You can’t take advantage of price swings if there are none. Farmers who could act in 2017, on that short run-up in the corn price, benefited smartly. Soybeans — though not out here in the West — have been a price-mover in the Midwest. And here in the West, wheat will offer pricing potential, too.

Regulations. Those are slowly changing. At the federal level, President Donald Trump’s administration is working to limit new regulations with the one-for-two plan. That means if you want to bring out a new regulation, you must kill two others. The death of a regulation isn’t that easy; there is a laborious process involving public notices and perhaps hearings, but the conversation is going in the right direction.

At the state level, that may not be so easy. For example, the lawmakers of Washington state seem to be diddling around with the idea that a farmer would have to provide a state agency with four business days’ notice ahead of the use of any crop protection product. Not four calendar days, but “business” days — and the state would have to notify nearby residents of that spraying at least two hours before it happened.

I think of a farmer finding a disease in his wheat, thanks to a diligent scouting program. We know that hitting a disease before flag leaf can be critical for the most effective, yield-boosting control. In Washington, that may not be possible. And even if the rule dies before this printing, you know once an idea is floated before a lawmaker, it’s never truly dead.

Taking on the regulation battle
Farmers have long relied on state groups like Farm Bureau and others to track those legislative priorities. While you can work on the risks of NAFTA and take advantage of the benefits of market volatility, when it comes to legislation — that’s a little more hands-on.

First, if you’re not part of a state ag association, getting involved is a good first step. Raise your voice as part of the ag-focused chorus when city-focused lawmakers make rules, taxes or laws that could materially impact your farm.

Second, even if you’re a member, get personal with the people who are supposed to represent you — but network beyond that. Every farmer in the country has metro lawmakers who need a little education. Many farmers are proactive, bringing lawmakers out for tours and sit-downs. In Illinois, there have been dinners where city and country folk meet on a farm for an evening of conversation.

Perhaps a statehouse road trip to your operation is possible. We talk about farmers reaching out to consumers — and that’s a good idea. While consumers may impact you in the long run, those local lawmakers can affect you very dearly in the short run.

Sounds trite, but knowing a few people in the statehouse on a first-name basis can never hurt.

 

About the Author(s)

Willie Vogt 1

Editorial Director, Farm Progress

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