It is nothing unusual for us to hear about farm families needing off-farm income. Many of these families do this just to get affordable health insurance benefits. Many times, it is because the farm just does not generate enough revenue for the family to stay solvent. Newly appointed United States Agriculture Secretary Tom Vilsack talked about some of the data at Commodity Classic last week and said these are figures that an Ag Secretary just does not want to see.
The statistic that Vilsack really hit him was the percentage of farm families that require off-farm income to keep the family farm operating. That figure comes in at 89.6%. Vilsack says that is difficult to have to see.
Vilsack says that farmers should be able to make a decent living from doing the job that they want to do, and quite frankly love to do. He says the United States Department of Agriculture (USDA) needs to do a better job of making sure that farming can be profitable for producers. Vilsack added that the focus for the coming months and years will be to do four things:
- More markets
- Better Markets
- Newer Markets
- Fairer Markets
On ?more markets?, Vilsack says we need to focus on trade. We need to increase our presence for our products in the international marketplace. We need to step up our brand recognition. We also need to make sure that trade deals on the books are being run as advertised. Vilsack highlighted the United States ? Mexico ? Canada Agreement (USMCA) and China.
Vilsack also wants to see markets expand in other areas like Europe and the United Kingdom.
When it comes to ?better markets?, Vilsack says that the marketplace needs to be open and transparent. There needs to be a more competitive marketplace in which farmers have more opportunities to shop their commodities. There is much concern about the consolidation in the ag industry. Vilsack wants more price discovery work being done. He wants to see more processing facilities to allow faster movement of commodities. The COVID-19 pandemic has highlighted where more work needs to be done to keep food chain disruptions low.
When it comes to ?new markets?, Vilsack says that any programs that are implemented for the protection of the environment must keep the profitability of the family farm at its heart. Farmers are on the front line of battling soil and water health. They must be able to do that, while still producing a quality product and getting paid a good price for sequestering carbon in their operations. He also wants to see more opportunities for farm waste can be converted into more useful products. This way we can dispose of waste properly and find ways to make money on it.
Vilsack says he is also happy to see that the Biden EPA is going to go back to honoring the intention of the Renewable Fuel Standard. This will also go a long way to help to return stability to a marketplace that solidifies corn and soybean markets. Biofuels are also one of those marketplaces that make use of commodities and farm waste.
Finally, Vilsack got into what he means when he talks about ?fairer markets?. He wants to see opportunities exist for everyone who wants to be involved in agriculture. Regardless of race, income level, or location. He wants to tackle behaviors that have been seen at his Department and across the country. He also wants to see equitable opportunities in the future of farm programs. Vilsack wants to see more farmers able to stay on the farm or return to the farm.
Vilsack says that to make his goals happen, he needs to shore up the workforce at the USDA. He says that the number of vacancies in the department is unacceptable. Farmers need people who can help them make use of the programs available. He wants to see his workforce return quickly and safely to help farmers in the local offices.
Vilsack summed up by saying that by keeping the focus on these four pillars, we can see better economic opportunities for family farms and a solid future for the agriculture industry.
