Vilsack Sees Banner Year Ahead for Agriculture
U.S. Ag Secretary tells Commodity Classic delegates that 2011 is forecast to see revenues 20% greater than 2010.
PJ Griekspoor
Published: Mar 4, 2011
U.S. Secretary of Agriculture Tom Vilsack these are times of great opportunity for America's farmers and ranchers and that 2011 promises to be a fantastic year with farm revenue increasing to $94.7 billion, up 20 percent from 2010.
"The good news is that we are rebuilding equity lost in 2008 and 2009," Vilsack said in remarks to representatives of commodity groups attending the 2011 Commodity Classic in Tampa Friday morning.
He said the forecast is for record exports and a trade surplus of $47.5 billion that can only be helped with what he says as impending approval of the South Korean Free Trade Agreement, which he said may be in effect as soon as July 1.
 Vilsack had a bullish message for biofuels, stressing that the department will continue to support incentives for both ethanol and biofuels.
"Meeting the renewable fuels standard of 36 billion gallons will mean $100 billion invested in rural America and 1 million jobs," he said.
The rural economy has remained robust in the latest recession because of past lessons learned and actions put into place by farmers, he said.
"Rural America offers a prescription for the rest of the nation to follow," he said. "Farmers suffered in the 70s and 80s and came out of doing what needs to be done. First, they learned you can't be overburdened by debt and they aren't. For every $1 in debt, there is about $11 in farm equity. Second, you must embrace new technology and innovation to become more productive. And they have. Farmers today produce 330% more corn and 200% more soybeans and wheat they did a decade ago."
The secretary said he is increasingly frustrated by two pieces of misinformation that are resurfacing: that farmers cannot provide enough products to supply both food and fuel needs and that commodity prices are to blame for increases in food prices.
"Both those myths have been thoroughly debunked, yet I continue to hear them over and over," he said. "The people who advance the food versus fuel debate are folks who don't understand reality and don't appreciate the productivity issue. To them I say 'do not bet against the American farmer. It is a losing bet.' And to those who blame farmers for food prices increases, I say I will accept responsibility for higher food prices when you give me a bigger share of the consumer dollar."
Vilsack said the truth is oil prices and energy costs are the real culprits in rising food prices.
"The reality is OPEC has more to do with it than farmers do," he said. "Which illustrates the point, if we made more of our own fuel, OPEC wouldn't have so much influence."
Vilsack closed his remarks with something he said he has shared personally with President Barack Obama.
"It isn't just what farmers do to feed our families, or the fact that they are stewards of 80% of our land and much of our water. Or that they are responsible for 1 in 12 jobs in this country. It is that they epitomize the core values of our entire society. That is reflected in the fact that their sons and daughters want to come home to work and will come home if they have economic opportunity," he said.
Speaking directly to Commodity Classic delegates he said, "Those core values are also reflected in the fact that although you represent only 16% of the American population, your sons and daughters comprise 44% of the troops serving in our military. You are not just the food providers of this country, you are its heart and soul."
In a press conference following his speech to the delegates, Vilsack repeated support for biofuels, support for commercial producers as well as niche farmers and organic producers and said the administration will aggressively support approval of the Korean Free Trade Agreement.
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Tagged: biofuels, farm, free trade agreement, wheat, soybeans
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