Peterson sees more trouble ahead for ag economy

Farmers are reaching a crisis stage due to the rains that has kept them from planting this year's crop.

On Thursday Congressman Collin Peterson was in Marshall discuss state of the agricultural economy in Minnesota and beyond.

As Chairman of the House Agriculture Committee, Congressman Peterson is one of the most powerful, respected voices in American Agriculture.

Lynn Ketelsen, the Voice of Minnesota Agriculture, welcomed the audience and introduced Congressman Peterson, who addressed the several hundred residents in attendance with an update on what was going on at the federal level of government. Most of Peterson’s opening remarks focused on many challenges facing our ag economy.

Peterson quipped, “As Winston Churchill said, ‘It’s just one damn thing after another’”.

After spending 20 years trying to get government out of agriculture, Peterson acknowledged that they were getting more deeply involved in recent years. A recent package rolled out by the Trump administration provides $16 billion in direct payments to offset losses from the continuing trade war with China. Peterson was not a fan of the program.

“It’s a complicated program that borrows money from China, while paying them interest, to solve a problem caused by a trade war with China,” stated Peterson.

Peterson was more supportive of a disaster bill recently passed through the senate. This plan was developed to assist farmers in the south who have been battered in recent years, without the benefits of crop insurance.

Although, the bill will likely be expanded to include flooding disasters along the Missouri River and other natural disasters that have effected farm production this spring.

Peterson then spent the remainder of the hour taking questions from audience members, ranging from questions about facilitation payments to challenges facing young farmers.

Despite the current planting situation and poor market conditions, Peterson felt that the safety nets in place in the farm bill made this an excellent time for young farmers to get started.

Despite his optimism in the farm program, Peterson said he is expecting a rough stretch for the ag economy, reminiscent of challenges facing farmers in the early to mid-1980s.

Soybeans in particular have faced a perfect storm in recent years. Swine Flu in Asia led to a steep drop in demand as China had to kill off 30-50 percent of their hog population.

Record yields in recent years have also led to a surplus supply, which also caused the price to fall.

This downward pressure has been compounded by the recent trade war with China. Peterson was unable to give specific measures that would address each of these challenges, since many of the final decisions would be driven by the administration and the Secretary of Agriculture.

Many farmers are now faced with planting decisions they never could have anticipated, while trying to balance crop insurance, federal programs, and an uncertain market.

Bob Worth, a local farmer and also the Mayor of Lake Benton, summed up the thoughts of many when he stressed to Peterson, “It doesn’t effect only the farmers, its every small town business that is affected. Hardware stores, fertilizer and seed companies, banks, and all of the businesses in a small town rely on farmers for their business. And when the farmer gets his money, it’s spent locally.”