Thanking America's Agricultural Producers

Date: March 15, 2004
Location: Washington, DC


Thanking America's Agricultural Producers

March 20 marks the first day of spring and National Ag Day - a time when America celebrates the abundance provided by agriculture, and pays special tribute to the farmers and livestock producers who supply our food and fiber.

National Agriculture Week, March 14-20, serves as an important reminder of how much we depend on our agricultural producers. Just a few generations ago, most people were either on the farm or had friends and relatives involved with agriculture. Today, that is no longer the case. Even we Nebraskans need an occasional reminder to say thanks to our agriculture producers, who work hard to provide us with the necessities of life.

Although the United States has fewer farmers and ranchers today than we did years ago, they are producing more than ever. Today, each American farmer feeds more than 130 people in this country and abroad. As the world population expands from 6 billion today to 7.5 billion by the year 2020, many will look to America to fulfill this demand.

This explains why agriculture is the nation's top exporting sector, and why the industry is vitally important to sustaining a healthy U.S. economy. In fact, agriculture generates as much as 20 percent of the U.S. Gross Domestic Product. During 2003, the United States had an $11 billion trade surplus in agriculture, exporting a near-record $59.5 billion in ag products.

In Nebraska, agriculture contributes more than $9 billion to the state economy each year. One of every four Nebraskans depends on ag production for employment. The Cornhusker State produces $3 billion in ag exports each year, generating nearly $5 billion in additional economic activity - creating many jobs in our urban areas.

Beyond their contributions to the economy, farmers and ranchers are our top environmentalists, maintaining and improving the soil and natural resources to pass on to future generations. Agricultural land provides habitat for about 75 percent of the nation's wildlife.

Yet, despite their importance, our agricultural producers are often taken for granted. This is because our food is readily accessible and safe. For this, we are incredibly fortunate.

But we need to understand the work that goes on in the fields and feedlots outside city limits, and the role it plays in our lives. And we must understand the challenges our agricultural producers face, and work to help them clear the hurdles in their way.
If our agriculture sector falters, the impact is felt throughout the state. Nebraskans lose jobs. Retailers lose customers. Taxes increase. Small communities wither.

That said, there is reason for concern. According to figures released by the U.S. Department of Agriculture, Nebraska lost more than 5,000 farms and ranches between 1997 and 2002 - nearly a 10 percent decline in total state agricultural operations. Just as troubling, there are nearly five times as many farm operators over age 75 as there are under the age of 25.

Last summer, I introduced legislation that would provide needed tax relief in an effort to increase the number of young farmers and ranchers, while keeping more of the nation's agricultural land in production.

"The Beginning Farmers and Ranchers Tax Incentive Act" (H.R. 2978) would help the next generation of farmers and ranchers compete with more established producers. The bill would also help improve the quality of life for rural residents who live near our sprawling cities.

Under H.R. 2978, land owners who want to sell their farmland or ranchland would pay no capital gains taxes if they sold to a beginning farmer or rancher who is a first-time buyer. Even if the buyer were not a beginning farmer, the seller of the land would get a 50 percent capital gains reduction if the buyer keeps the land in ag production. I believe this is a reasonable plan that can play an important part in securing a strong U.S. agricultural sector, and help ensure that America will continue to have the world's best and safest food supply.

Of course, there are other ways in which we can help our agricultural producers ensure future success. One way is by making permanent the tax cuts recently enacted by Congress - and repealing the death tax, which destroys family farms by forcing surviving members to sell land or equipment just to pay the tax.

Another way is by passing long-overdue energy legislation (H.R. 6). In addition to provisions that would boost domestic production of oil and natural gas, which would help lower fuel and fertilizer costs, the energy bill contains a Renewable Fuels Standard that would double the use of ethanol and biodiesel. This would replace billions of gallons of foreign oil every year and create 200,000 new jobs.

As we celebrate National Ag Day, take a few minutes to thank the farmers and ranchers you know. Then reflect on what how different America would be without them.

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