April 19, 2010
Which Is More Beneficial To You: Farm Policy Or Ethanol Policy? (Cattle Network)
Have USDA commodity programs helped your farm? Has the decision on sign up been a source of stress in your household? Has ethanol been a benefit to your bottom line? Do you think the initiative to make ethanol from biomass will be a plus or a minus? Quite a few farmers have answered those and other related questions, but where do you fall in their range of responses?
The Iowa Farm and Rural Life Poll has been taken for the past 28 years, and the latest survey focused on farm policy and ethanol, with questions related to whether they benefit individual farms. Nearly 1,300 farmers replied to the questions, and the rural sociologists who coordinated the survey report their findings in the April 15 edition of the Iowa State University Ag Decision Maker newsletter.
Interestingly, US ethanol policy received higher support than farm programs. 72% of the Iowa farmers indicated ethanol policy had been good for them, and 71% supported raising the blending level beyond 10% ethanol. However, the concept of making ethanol from products other than corn received less support, with only 37% in favor, but 44% still undecided.
The survey was taken after the 2008 Farm Bill was implemented, and 70% of the responded indicated they do not like change, since it causes worry about how their operation will be affected. While 57% believe commodity programs are good, 55% think they are an important safety net. 46% think commodity programs favor agribusiness over farmers, but 44% are uncertain about that question.
An issue that 86% of the respondents agreed with was a statement that “Profit margins on corn and soybeans get eaten up by land rents and input costs faster than they used to.” As a reflection on the changing structure of agriculture, 72% believe that increased commodity specialization has led to the loss of farms. 68% of farmers report they feel they have little control over their profitability, and 55% think that over reliance on corn and beans contributes to financial risk. To make a living just raising corn and soybeans, 50% of farmers think they have to increase acreage, but 26% disagreed and 24% were uncertain.
Summary:
Farmers answering survey questions about federal farm and ethanol policies were more supportive of ethanol than of commodity programs. 7 out of 10 favored ethanol policy and wanted higher blend rates. 57% believe that commodity programs are good and 55% think they are an important safety net. However, reliance on corn and beans seems to contribute to financial risk, and to be profitable, acreage has to increase. But 87% believe that profit margins on corn and beans are being eaten up faster each year by rent and input costs.
