Omaha World Herald

Midlands Voices

October 28, 2008

McCain’s distaste for farm bills, ethanol dictates vote for Obama
 BY JOHN K. HANSEN
 The writer, of Lincoln, is president of the Nebraska Farmers Union and secretary of the group’s political action committee, NEBFARMPAC.

  Farm and rural issues are fi­nally getting presidential cam­paign attention. The national press has covered the starkly dif­ferent policy positions on farm programs and ethanol incen­tives, among other issues, be­tween U.S. Sens. John McCain and Barack Obama. Rural voters in many of the toss-up states will play a pivotal role in this election. In Nebraska, ethanol and agri­culture are big-time issues. Ne­braska is ranked second in the nation in ethanol production, fourth in agricultural receipts and in the top five in farm pro­gram use.
  When agriculture does well, our state does well, as evidenced by the fact that Nebraska is far­ing much better, because of the recent profitability in agricul­ture, than most states facing fis­cal crises. Agricultural- and eth­anol- related jobs, tax revenues and economic activity help power our state’s economy.
  The National Farmers Union’s 2007-08 voting records and rat­ings on farm, renewable energy and rural issues document the stark differences between the primary presidential candidates. Sen. Obama received a 100 per­cent rating; Sen. McCain, a zero. It is difficult to do better than 100 percent or worse than zero.
  Rural voters have an enor­mous economic stake in this presidential race. In very clear, consistent and strong terms, John McCain has singled out his ardent opposition to all farm pro­grams and ethanol incentives. During the last presidential de­bate, he once again put farm pro­grams and ethanol incentives on top of his chopping block.
  Farm bills are about a lot more than just farm commodity pro­grams. They are about conserva­tion programs, wildlife habitat, food assistance (which accounts for 70 percent of funding in the 2008 farm bill), food safety and inspection, renewable energy, rural development, infrastruc­ture and electrification, a wide range of research programs, etc.
  Sen. Obama voted for the 2008 farm bill. Sen. McCain did not, adding that if he were president, he would have vetoed it “in a New York minute.” That is consistent with his solid track record of op­position to farm bills and their funding.
  How important is the farm bill’s income safety net to pro­duction agriculture? Histori­cally, about half of all net farm income came from farm pro­gram payments in 10 of the last 12 years. Without farm pro­grams, the 1997-2006 period would have witnessed a major economic meltdown in rural America.
  Farmers are getting squeezed by skyrocketing input costs and collapsing commodity prices. Compared with 2006, input costs have doubled for 2008. And 2009 input costs likely will be three times 2006 levels — if you can lock them in, borrow the money and pay for them in advance.
  Meanwhile, on the income side, commodity prices are col­lapsing. Compared with their fu­tures price peaks earlier this summer, December corn is down 48.9 percent, November soy­beans 44.4 percent, December wheat 55.8 percent, December live cattle 20.6 percent and De­cember live hogs 24.2 percent. The cost price crunch is on.
  Sen. McCain’s position on etha­nol would put domestic ethanol production at risk, setting off an economic chain reaction putting ethanol investors, ethanol work­ers, grain producers, rural com­munities and local, state and na­tional tax revenues at risk.
  Based on the major candi­dates’ voting records and posi­tions on issues facing agricul­ture, NEBFARMPAC strongly endorses Sen. Obama for presi­dent. In a time of financial crisis, now is the time for voters to fo­cus on pocketbook issues.