US Food Producers: “Just Get Out of My Way”

Nine billion, that is a figure I heard over and over at the Commodity Classic meeting in Tampa, Florida last week. It is the estimate of the world’s population by the year 2050. Of course all those people are going to want to eat, and most will want to wear clothes and drive cars. Where is all that food, fiber, and fuel going to come from? The assumption is that most of it will be produced by the United States. In order for this to happen, US agriculture will need to continue to increase production. This focus on increasing production is the goal of many of the nation’s largest agricultural companies. These firms are investing billions of dollars in research and development to find ways to produce more food.

As I walked the massive trade show at Classic, everywhere I turned were signs that spoke of innovation, new technology, and increased production. Numerous company executives that I spoke with talked about how optimistic they are about the future of agriculture. One even called it a new golden age for farmers. While some of this euphoria is being driven by high commodity prices, there is, at the core of this optimism, a belief that world food demand will remain strong and provide a solid underpinning to a vibrant ag economy.

The breadth of technological innovation under development is mindboggling — from fungicides that not only kill a fungus but repair the damage that was done, to seed traits that not only repel insects and diseases but help a plant withstand extremes like cold, heat, and drought. John Deere has embarked on a program to bring incredible sophistication to control and communication among farm machinery. The next decade will see a significant change in the way we farm.

In addition, much of this innovation will require fewer resources than we need today. Spray programs will use ounces per acre rather than gallons. Smart machines will use less energy, and smart chemicals will have a much lower environmental impact. Farmers will be able to increase their productivity without increasing land use and with much less environmental impact. All of this wonderful innovation will only take place if two things happen.

First, there must be profit. Farmers will not invest and companies will not invent if there is not a financial incentive. There has been a fair amount of griping lately about high commodity prices and how farmers are getting rich. Farming has been a capital intensive business for decades, and the future will only see that increasing. Farmers take big risks in anticipation of a big reward. Farmers, regardless of their size, must have the financial incentive to take that risk and make the investments that keep them competitive.

Second, farmers need to be able to farm with a minimum of restrictions, regulations, and encumbrances. Does this mean producers have carte blanche to do whatever they want? NO. But the regulations must be based on sound science and best practice standards. There are forces, both inside and outside of government, who want to heavily regulate agriculture. In many cases this is not based on a solution to a real problem, but rather is part of an overall agenda to limit modern farming. In order for farmers to feed a world that is demanding more and higher quality food, they must be allowed to adopt new technology without onerous controls.

House Agriculture Committee Chairman Frank Lucas of Oklahoma, told the story at Classic about a recent coffee shop meeting he had. He asked the farmers that gathered “What can we in Washington do to help agriculture?” The answer came with characteristic Oklahoma candor and color, “Just get the hell out of our way.” Let’s hope the folks inside the beltway begin to take that advice.

Hoosier Ag