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Corn concerns
Farming bill proposed by president has dairies worried, others cautiously optimistic
The Bush Administration's farm bill proposals don't promise to satisfy everyone. Furthermore, Congress has yet to weigh in on what Bush hopes to bring to the country.
That's what makes leaders at the San Joaquin Farm Bureau cautiously optimistic about the 2007 farm bill that, in part, calls for $1 billion for specialty crops, which constitute a majority of the county's agricultural production.
"It's positive by the fact that they're talking about the specialty crop so much," said Bruce Blodgett, the Farm Bureau's executive director.
San Joaquin County is rich with what is known as "specialty crops," which include fruits, vegetables and nuts. It includes pretty much everything except wheat, corn, rice and cotton.
Blodgett said he's also encouraged by the administration's conservation proposals to improve air and water quality because it may include some federal funding. The question is in the farm bill's details, he said.
The only problem with the energy proposal is that it can be a benefit or a detriment, he said. Bush's quest for ethanol development stands to be quite costly for dairy farmers because of the increased cost of corn to feed their cows, Blodgett said, but that could be offset if the farm bill offers money to dairies for methane digesters.
While conservation may be a benefit, Blodgett is concerned that it may call for more farm land to be set aside for conservation, which he terms "land retirement."
In Galt, dairyman Case Van Steyn is very concerned about the increased cost of corn.
"You can say the word 'crisis.' We are at a crisis," Van Steyn said Tuesday. "(Corn) prices have really, really gone up — 15 or 20 percent over the past three months.
"In my opinion, it's mostly speculators in the market," he continued. "They're not using the ethanol now."
Van Steyn said he would understand if corn prices went up because ethanol is being used, but prices went up already.
That affects his ability to feed his 1,000 cows west of Galt, although they can also eat wheat, barley and even recycled grain and hops from breweries.
Farm bill details
The Bush Administration has released its proposals for the 2007 Farm Bill, which has yet to be addressed by Congress. Here are some highlights:• $1 billion for research programs targeted to specialty crops, which would affect San Joaquin County significantly.
• Loan rates for commodities at 85 percent of the five-year average, excluding the high and low year.
• $3.2 billion to purchase more fruits and vegetables for low-income students eligible for free or reduced-price lunches.
• $7.8 billion to protect natural resources through conservation programs by increasing wetlands reserves from 2.3 million acres to 3.5 million acres nationally.
• $1.6 million for renewable energy projects, particularly ethanol, and another $210 million in loan guarantees for cellulosic ethanol projects in rural areas.
Source: U.S. Department of Agriculture.
With the added corn costs, Van Steyn said that dairy farmers are at the mercy of their banks.
"We have to be really warm and fuzzy with our bankers," he said. "If I can't go to the bank and borrow the money I need, I'll be out of business."
Some dairies that have been sound 20 to 30 years are struggling, he added. Farmers who grow fruits and vegetables can always lay off employees and take a long vacation if they're in trouble economically, Van Steyn said.
"At a dairy, you can't walk away from those animals," he said. "You have to feed those animals and milk them."
If you stop milking cows, they stop producing milk and sometimes get sick, Van Steyn said.
"Then you would have to feed and take care of them until they have a calf and start the cycle all over again," he added.
In the five years since Congress approved the last farm bill, dairy farmers who used to receive $12 per 100-weight of fluid milk now get about $9 per 100-weight, Van Steyn said. If the rate remained at $12, farmers could weather the storm caused by the higher corn prices, he said.
Larger dairies can withstand the higher corn prices more easily than smaller family operations, Van Steyn said. In California, a small farm has 500 cows and a large one has 2,000. He likened the plight of small dairy farmers to Wal-Mart financially jeopardizing locally owned businesses.
"I'm fortunate that my bank is helping me, but not everyone is in that position," Van Steyn said. "If you don't pay your bills, they will come after you."
Contact reporter Ross Farrow at rossf@lodinews.com.
First published: Wednesday, February 14, 2007

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