Senate Subcommittee on Agriculture, Nutrition, and Forestry Holds Hearing on Helping the Next Generation of Farmers
The Senate Subcommittee on Commodities, Risk Management, and Trade held a hearing on Tuesday, June 4th to examine the pathways to farming, and focusing on helping the next generation of farmers in the United States.
The hearing opened with Chair Tina Smith (D-MN) establishing the importance of the hearing, including the aging of producers. She noted that "According to the most recent census of Agriculture, the average age of a producer in the United States is around fifty-eight." Senator Smith stressed the importance of both young farmers entering the field and the importance agriculture has on the economy. Senator Smith also highlighted a number of issues faced by young, beginning farmers, including finding productive, affordable land. Another issue is that 50% of crop land across the country is rented, which forces beginning farmers to rent cheaper, less productive land. Senator Smith also emphasized the current work of the committee, including drafting the Increasing Land, Access, Security. and Opportunities Act, also known as LASO.
In her opening statement, Ranking Member Cindy Hyde-Smith (R-MS) highlighted the importance of the agricultural sector and farmers, stating that "I’m just pleased to be a part of things like this, to ensure the 2% of us that feed the other 98%, that we continue to grow." Senator Hyde-Smith stated that she supports the passage of a strong farm bill to ensure that opportunities for young farmers continue to exist. She commended the House Agriculture Committee for reporting a robust farm bill that, she said, modernizes the farm safety net, and includes multiple provisions beneficial to young and beginning farmers.
The first witness, Christian Good, owner and operator of Christian Good Farms, highlighted the economic challenges that farmers, both beginning and experienced, face. Mr. Good stated that operating costs are at an all time high and that inflated costs on operations create profit headwinds for producers. Mr. Good also highlighted the impact of rising interest rates on farm operating loans, stating that, "Just 4 years ago, interest rates on farmland real estate loans and farm production loans were between 3 to 4 percent. Now, the same interest rates stand between 8 and 9 percent, more than doubling the cost of borrowing for agricultural producers." Mr. Good also proposed recommendations to be put in place, including expanding upon farm service agency loan programs and risk management programs.
Tessa Parks, co-owner of WT farms and President of the Rice County chapter of Minnesota Farmers Union, advocated for the expansion of USDA’s increasing land capital and market access program to help beginning and struggling farmers. Ms. Parks also advocated for the farm bill, including for bipartisan support for including the Inflation Reduction Act funding for USDA’s voluntary conservation programs and Senator Smith’s LASO Act.
The third witness, Kevin Lussier, Chair of the American Farm Bureau Federation and Young Farmers and Ranchers Committee, began his testimony by promoting a bipartisan farm bill to be passed this year. Mr. Lussier then spoke on the importance of a five-year modernized safety net, to support more young people to go into the agricultural and production business that is vital to the country. Mr. Lussier stressed how critical access to credit is for young farmers, due to rising supply costs and agricultural land. Mr. Lussier concluded by highlighting the concern over the availability of childcare centers in rural areas, since in order to keep young farmers on the farm, it is important to have affordable childcare in rural areas.
The last witness, Raechel Sattazahn, Director of Industry and Membership Relations for Horizon Farm Credit, discussed the importance of the loan terms for farms and young farmers. Ms. Sattazahn highlighted the importance of the Grow Ahead Program, a program which offers financing options for young and beginning farmers by providing access to the capital they need. She also highlighted the importance of this program by providing examples of success stories from the program, and urged the Senate and House to pass a bipartisan farm bill.
Reported by NEMWI Intern Riley Crume, Lynn University
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