Vilsack Exit Interview Part 1 12/30 09:35

   Ag Secretary Vilsack Said Agriculture Places Too Much Emphasis on Farm Bill

   In a wide-ranging interview with DTN this month, Vilsack talking about what 
he sees as historic investments in rural America during the Biden 
administration and why he thinks the country's approach to farm policy fails 
most American farmers. 

Chris Clayton
DTN Ag Policy Editor

   WASHINGTON (DTN) -- Outgoing Agriculture Secretary Tom Vilsack said there is 
too much focus on the farm bill when it comes to supporting all farmers and 
rural America overall.

   With 12 non-consecutive years in office starting in 2009, Vilsack will end 
his tenure as the second-longest serving agriculture secretary in history.

   In a wide-ranging interview with DTN this month, Vilsack discussed what he 
sees as historic investments in rural America during the Biden administration 
and why he thinks the country's approach to farm policy fails most American 
farmers.

   "The focus on the farm bill fails to take into consideration the other 
aspects of support for farmers that are equally important," Vilsack said.

   The secretary has spent much of the last two years highlighting that the 
country has lost nearly 545,000 farms and 155 million acres of farm ground 
since 1980. He said policymakers need to "widen the lens" on farm policy or the 
number of farmers will continue to shrink. He said farm policy largely benefits 
the top 10% of farmers who receive 85% of the income and 60% of the support in 
farm-program payments.

   "A significant amount of money that goes to a very narrow band of American 
agriculture. And the price that we pay for that system over the last 50 years 
has been a loss of farms, and a loss of farmland, and if the country is OK with 
that, if American agriculture is OK with that, if the farm groups are OK with 
that, if rural America is OK with that, well, then fair enough," he said. "But 
I don't think they are OK. So why aren't we talking about that in the debate up 
there? We're not talking about it."

   The Biden administration drew criticism from Republicans in Congress over 
the decline in net farm income over the past two years, falling from a record 
$181.9 billion in 2022 to $140.7 billion in 2024. Most of that decline was due 
to a drop in cash receipts for crop producers and a decline in direct 
government payments. That led to a $10 billion economic aid package Congress 
passed on Dec. 20.

   Vilsack defends the Biden administration's record on farm income, pointing 
out that 2024 income numbers remain higher than any year of the first Trump 
administration.

   "Where are we in reference to net farm income? Again, this administration 
set records for net farm income, besting the records from the Obama 
administration and significantly higher -- significantly higher -- than during 
the Trump administration, the first term," he said.

   While the agricultural trade deficit is also brought up, Vilsack points to 
record exports in farm commodities over the past four years as well. Much like 
farm income, exports hit a record $195.7 billion in calendar year 2022, but 
then declined to $174 billion in 2023. Export numbers for 2024 are keeping pace 
with 2023 totals.

   Conservation is another area where Vilsack points to record investments, 
driven mainly because of the $19.5 billion from the Inflation Reduction Act 
(IRA).

   When all of that is combined, Vilsack said, "I think I can make the case 
we've been incredibly supportive of the commodities."

   But agriculture needs a "nontraditional approach" to break a 50-year trend 
of lost farms and lost farmland, Vilsack said. The farm bill hasn't worked. The 
secretary points out there are a lot of farmers who don't benefit from 
commodity programs.

   "The farm bill is one component, but it is far too emphasized, and frankly, 
it is the old way of thinking that has to change," he said. "Because we are 
losing too many farms, and we're seeing too much loss of farmland. Everyone is 
stuck in this notion that the only thing that matters is a farm bill."

   He added, "If you look at the debate today in the United States Congress on 
the farm bill, what are we talking about? We're talking about reference prices. 
Who benefits from reference prices?"

   "There are over 100 commodities that are raised in this country. We have an 
incredibly diverse agriculture. Reference prices are involved directly in 22 of 
the 100 and some commodities."

   The secretary highlighted a legacy of nontraditional investments in 
agriculture from the IRA, the Bipartisan Infrastructure Law and the American 
Rescue Plan.

   -- USDA received more than $8.6 billion under the infrastructure law that 
went mainly to the Forest Service to cope with wildfires and forest management 
but also included more than $2.2 billion for rural broadband investments and 
$918 million for conservation programs.

   -- Under the IRA, USDA has invested $13 billion to upgrade rural electricity 
with more investments in renewable energy projects. The law provided $19.5 
billion for conservation programs and provided $2.5 billion to help more than 
47,800 distressed loan borrowers.

   -- The American Rescue Plan (ARP) provided billions to boost food aid across 
the country during the pandemic as well as rural housing assistance. Another 
$500 million went to help rural hospitals and community centers.

   Those laws injected tens of billions of dollars into the rural economy, 
spurring more development of renewable energy, food processing, domestic 
fertilizer production and climate-smart conservation practices.

   "This administration has been the administration that's identified there is 
a need for more new and better markets," he said. "We've had unprecedented 
investment in all four of those areas."

   The secretary pointed to the $1.4 billion in grants and loan guaranteed from 
the American Rescue Plan (ARP) that helped expand meat and poultry processing 
capacity nationally. The funds went to more than 500 facilities, beyond the 
dominate packers in beef, pork and poultry.

   Without a lasting change in how farm support is provided, Vilsack said he 
sees farm numbers will continue to fall over time. He believes the investments 
made over the last four years will help curb those losses and prove better for 
the rural economy over time. He repeated his message of focusing on local 
processing, renewable energy, supply chains for local and regional food 
systems, and mechanisms to develop environmental markets.

   "We've created a model. Now, the question is: Can we flesh that model out? 
Can we continue to support it?" he said. "Can we continue to invest in it, and 
over time, can we create a separate model over here that doesn't necessarily 
negate the importance of production agriculture, but provides a companion model 
for people to follow, and maybe that revives rural economies?"

   DTN's interview with Vilsack continues Tuesday, looking at the debate over 
cutting spending at USDA and the value of the Commodity Credit Corp.

   Chris Clayton can be reached at Chris.Clayton@dtn.com

   Follow him on social platform X @ChrisClaytonDTN




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