Once Again, Bush Slows Farm Bill Progress

Does President Bush want a Farm Bill? We wish we knew.

What we do know is that "compromise" is an important skill, and we applaud Senate AG Chair Tom Harkin, House Ag Chair Collin Peterson and the conference committee members as a whole for their hard work in finding the compromises that allowed last night's committee session to come to agreement. Meanwhile, President Bush is once again dragging his feet, with both his senior appointees -- USDA Secretary Schafer and Deputy Secretary Conner having admitted to Peterson that they have no authority to negotiate alterations to administration demands.

And the Bush demands seem to be centered on contrariness -- his way or the highway -- with his "required" changes designed specifically to hold up what has already been a hard process.

Next step is for Senate Ranking Member Saxby Chamblis to go to the White House with a message centering on, "We've got a Farm Bill you can sign."

When Chambliss comes back, we'll learned whether Bush understands that this is a democracy -- not a dictatorship, and even the President must take a turn at compromise.

Farm Bill Agreement Today? -- Tuesday, 2:30 PM EST

Senate Ag Committee Chairman Tom Harkin has called together the conference committee for a 2:30 PM EST meeting today. His goal -- to smooth our final details on the Farm Bill so that the Bill can be voted on by House and Senate, and forwarded to the President for signature. It's been a long path, but compromise includes additional funding for nutrition, energy and conservation, as well as some cuts to farm subsidies and a reduction in the size of the new disaster relief fund. Overall, this is good news.

Still worrisome is what the President will do. He, of course, is trying to be relevant and may be sticking to his long time commitment to reduce all kinds of government funding for rural programs. You will remember that Agriculture and Transportation are the two most important programs for both rural communities and small business, but beginning when the President first came to office, it has been Agriculture and Transportation that have always received the biggest cuts in Bush Budgets.

In his Rose Garden press conference this AM, the President warned Congress that he wants more changes, and yesterday, Ranking Member Bob Goodlatte made similar noises. In a related statement, last Thursday Chairman Collin Peterson said that if the president vetoes the bill, he should be ready to implement permanent farm law.

We need to remember that strong Farm Bill legislation is key to rural America's economic well-being. One consistent question asked by some national reporters, is "why subsidies" and/or "why" other rural community and farm protections at a time when prices are strong. The answer to that question lies in the hard truth that prices go up and prices go down. If the protections aren't already in place when the prices go down, it will be too late to put then back retroactively.

"The Wage That Meant Middle Class"

We reported on this story earlier this week, but it's so important that we've chosen to give it extra emphasis here. Recently, we wrote about our economy (our very fragile economy) and how a few weeks ago, Speaker Pelosi and the Democrats responded by passing the Economic Stimulus Package which will result in a tax rebate for ailing middle class voters ($1200 per joint filing, $600 per single).

"The Wage That Meant Middle Class" was $20 an hour, introduced on a large scale in the middle of the last century. As reported by author Louis Uchitelle,

"The Trend in the Hourly work force is striking. Take only the peak years in each business cycle, starting in 1979. The proportion earning at last $20 an hour declined from 23 percent that year, to 20 percent in 1980, to 18 percent in 1989, and to 16 percent in 2000. Manufacturing was hit the hardest."

Quite simply, the votes of rural citizens will make the difference in the upcoming November 2008 elections. You can find more details of just how endangered our middle class has become by clicking here. Meanwhile, if you're worrying about whether your vote might actually make the difference, there's a great election map site at 270toWin.com/ Click on an individual state and you'll also find how only a percent or two can change results ... and that's why every vote really must be counted this year.

US Energy Secretary Bodman on Biofuels

The Wall Street Journal has reported in its "Environmental Capital" section that Energy Secretary Samuel Bodman is cautiously balancing his position about biofuels, saying, “the bottom line is this: concerns about the sustainability and environmental impact of biofuels are not misplaced, but they are absolutely not a reason to ignore the tremendous promise of biofuels. They are an argument for developing them in a way that makes sense for our environment, for our food supply, for our agricultural community and for our nation’s economic health.”

Of course, the challenge is how to balance world food needs and world food prices with the huge possibility of the U.S. becoming energy independent. Read the whole story at "Bodman on Biofuels: They’re ‘Critical’ to Energy Security".

Plain Language for Government -- We've been waiting for this!

This is good news: The U.S. House passed Representative Bruce Braley's bill -- H.R. 3548, the Plain Language in Government Communications Act of 2007, on the day before Tax Day -- April 15. Click here to see examples of how this bill would make government writing easier to understand.

So first, kudos!! to Mr. Braley (D IA-4). The bill's passage in the House is a welcome step forward for those of us who hate filling out government forms, often all too full of "gobbledygook". Assuming the bill is signed into law, the Plain Language in Government Communications Act will require the federal government to write new publications, forms, and publicly distributed documents in a “clear, concise, well-organized” manner that follows the best practices of plain language writing.

Braley hopes that his bill will make it, "... Easier for Americans and small businesses to work with and understand their government. "

At My Rural America, we hope the IRS will lead the way in simplifying its forms first and then, some day, we hope that the health insurance companies will be required to follow suit. We also laughed when we read that Mr. Braley had said he, "Hoped in some small way, the bill (would) honor the memory of our former colleague, Maury Maverick, Sr., who served two terms in the House from 1935-1939." It turns out that Congressman Maverick invented the term “gobbledygook” to describe bureaucratic language that was as difficult to understand as the call of wild turkeys from his native South Texas.

"Bitter" vs. "Roses"

Several days ago, we noted the controversy where Obama used the word "bitter" to describe some of the disappointment ... and anger ... in rural America today. We wrote, "... a lot of rural folks have lost their dreams in these last 25-30 years ... suffering through the "farm crisis of the 1980’s" and communities losing plant after plant of good union jobs moving overseas."

My Rural America has joined a new coalition lead by Al Cross (writer of The Rural Blog and Director of the Institute for Rural Journalism and Communications), which calls for a presidential forum or debate about the issues facing rural America. Cross sites the challenges of No Child Left Behind, the still-undone Farm Bill and environmental issues in his request to the presidential candidates. Certainly, there is much more to talk about, including:

• Re: Jobs Lost. Have you ever noticed that when the Department of Labor releases their figures on jobs lost, they never even count the jobs lost from the farms of America ... only "off farm" jobs get counted.
• Re: Soldiers Lost ... in the war in Afghanistan and the occupation in Iraq. According to the University of New Hampshire's Carsey Institute, our brave men and women soldiers who come from the small towns and country roads across America have a 60% higher death rate higher death rate than do the soldiers who come from urban America. For many of our rural kids, joining the military is the only way they can get to college. For other rural kids, serving in the National Guard and getting that extra pay is the "extra income" that keeps them above the poverty level.
• Re: Health Insurance Lost. 6% more of our rural kids get their health care from SCHIP -- State Children's Health Insurance Program -- than do urban kids, yet enough proudly conservative rural members of Congress voted no on the need to expand this great program so that more of our kids nationwide could take advantage of it.
• Re: Education Funding Lost. Rural schools serve 40% of our nation's students but receive only 22 percent of federal education funding.
  

Combine these issues and more with rural America's shrinking voice in Congress caused by the emptying out of rural America and what you get is forgotten. In my home state of Iowa, our "shrinking voice" has meant Iowa is down to five U.S. representatives. That's down from 11 in 1930. Next to come is 2012 when we can expect to have only four Members representing us.

Rob Rose, reporter for the Meadville Tribune in Indiana, writes, "Bitter is as Bitter Does", as he adds his voice to the growing call for a rural presidential forum:

ROSE -- "The presidential primary votes of Hoosiers are, for the first time in nearly a half-century, meaningful. Obama’s remarks give us an opportunity to back two national politicians into corners and keep them there until they give us real answers to real problems — and we should."

We agree. Everything is NOT coming up roses in rural America and it's high time the presidential candidates started talking in more detail. Obama started the conversation. Clinton criticized. Now let's put some meat on the bones of this discussion.

Farm Bill -- House & Senate Chairmen Agree

Jerry Hagstrom for CongressDaily reports the good news: Senate Ag Committee Chair Tom Harkin and House Ag Committee Chair Collin Peterson have come to agreement on the major sticking points of the Farm Bill.

Next steps:

1. Senate Finance Chairman Max Baucus and House Ways & Means Committee Chair Barney Frank still have to agree on the offsets.
2. House and Senate conferees still need to vote on various other issues.
3. The House and the Senate will need to vote on the measure before it goes to the President.

The real question -- after all this, the President still promises to veto. Will the Congress be able to override his veto. We hope so.

Farm Bill Deadline Looms -- Five Days til April 18th

In brief, there is still disagreement between the House and the Senate. Among items still in disagreement are the tax breaks in the Senate bill and the amount over baseline that the five year bill will exceed. More detail to follow as we move into this week.

Speaker Nancy Pelosi named the House conferees on April 9. They are: April 9, 2008 — Reps. Putnam, R-Fla.; McCrery, R-La.; Pomeroy, D-N.D.; Rangel, D-N.Y.; Graves, R-Mo.; Norton, D-D.C.; Oberstar, D-Minn.; Velazquez, D-N.Y.; Shuler, D-N.C.; McCaul, R-Texas; Lampson, D-Texas; Gordon, D-Tenn.; Jordan, R-Ohio; Waxman, D-Calif.; Bordallo, D-Guam; Smith, R-Texas; Scott, D-Va.; Conyers, D-Mich.; Ros-Lehtinen, R-Fla.; Sherman, D-Calif.; Bachus, R-Ala.; Waters, D-Calif.; Kanjorski, D-Pa.; Platts, R-Pa.; McCarthy, D-N.Y.; Neugebauer, R-Texas; Musgrave, R-Colo.; Hayes, R-N.C.; Moran, R-Kan.; Scott, D-Ga.; Lucas, R-Okla.; Goodlatte, R-Va.; Boswell, D-Iowa; Baca, D-Calif.; Etheridge, D-N.C.; Cardoza, D-Calif.; McIntyre, D-N.C.; Holden, D-Pa.; Towns, D-N.Y.;DeLauro, D-Conn.; Chabot, R-Ohio; Rahall, D-W.Va.; McMorris Rodgers, R-Wash.; Berman, D-Calif.; Dingell, D-Mich.; Pallone, D-N.J.; Barton, R-Texas; Miller, D-Calif.; Peterson, D-Minn.

Mortgage Lending Crisis -- Still & Yet

A few days ago we featured a story from the Washington Post. It's title was "Bush to Expand Help on Mortgages."

How we wish that were true. What's really happening on that front is (1) The Secretary of HUD has resigned ... resigned among many charges of ethics violations. His written statement, of course, said ... you guessed it! ... oh me/oh my/my family needs me.

(2) It's not "just" ethics charges; rather it's also the shame of it. Secretary Alphonso Jackson was warned a year ago that this mortgage crisis was looming, and he ignored it. See stories: HUD Chief Inattentive to Crisis, say Critics from the Washington Post and MSNBC, and also Jackson ignored Crisis by the blog ThinkProgress.

Then, just to complicate things, the lenders have now turned to punishing those of us who pay their mortgages on time and who pay their mortgages on time. See "Credit Crisis May Leave You Cut Off". For those of us who weathered the farm crisis, we remember what it means to be cash poor. We had hoped those days were behind us.

Not Everything is Coming Up Roses in Rural America

By now, everyone who has had their TV on has heard some of the "back & forth" between Hillary and Obama about how she thinks that he was demeaning in his description of rural voters. It made me think about the time in 1996 when the country was back to work and interest rates were on their way down. Then, someone asked me why was it that middle class voters weren't feeling secure? "Afterall, they are back to work," said my friend.

My answer then was that even though people were back to work, they hadn't paid off their credit cards or replenished their savings back into the bank, so they were still behind. In some cases, what "back to work" meant was that they were employed, not that they were employed in as good of jobs as they had when they were laid off during the Bush and Reagan years.

Now, those good jobs are still gone. It's a long time.

I think about where we are now -- 12 years later, good jobs gone, unemployment rising, shaky stock market, unbelievably high gasoline prices, kids in rural areas signing up to go to war with the hope that their gamble allows them to come home safe and go to college. And I think about some of my friends ... aging prematurely, working too hard ... working just to make ends meet .

It's true that "bitter" is kind of a tough word, so maybe better words to have used would have been "tired" or "worn out" ... "dreams gone". Thinking realistically, a lot of rural folks have lost their dream in these last 25-30 years ... suffering through the "farm crisis of the 1980's" and communities losing plant after plant of good union jobs moving overseas. And now, we've also got another mortgage lending crisis on our hands, too, so -- no, everything isn't coming up roses in rural America and from our view point, it's a good thing when political leaders start recognizing it.

Read "Clinton" and also "Obama" to see for yourself how the story continues.

Controversy over Trade Deals

One option that might make some sense comes to our attention from the American Agriculture Movement which is calling for a "time out" in trade deals.

Larry Matlack, President of AAM, has declared, “Many farmers were strong advocates of previous trade agreements such as the North American Free Trade Agreement (NAFTA) and acceptance of China into the World Trade agreement (WTO). We were led to believe such actions would advance U.S. agriculture only to find out later that the agreements were oversold and underperforming. Congress should hold off ratification of any more trade agreements until previous agreements can be reviewed and improved to serve everyone.”

Guest Editorial -- Why Rural Homeowners Suffer More

Why Rural Homeowners Suffer More from Housing Mess: While most publicity surrounding the current mortgage foreclosure crisis has centered on the woes of Wall Street and urban dwellers, homeowners in rural America are taking a major hit due to the economic realities of rural communities.

As the number of adjustable-rate mortgages peak this summer and interest rates are reset, more homeowners will find that their monthly payments exceed their ability to pay. When that happens, rural residents will have fewer options than their city brethren.

A recent study cited by the Des Moines Register found that rural borrowers had an average income of $56,000, compared to $66,000 for urban borrowers. Lenders see lower incomes as higher risk and thereby increase their loan rates. Appraisers have a harder time valuing homes in rural areas where fewer homes sell and sales are far apart. Homes can thereby swing in value from an initial loan to refinancing, and can leave borrowers owing more on their loan than their home is worth in a declining market.

Even big lenders in nearby cities often raise the interest rates on rural, inexpensive homes to cover their costs and make their profit. And when rural borrowers get into trouble, they have fewer options among lenders to refinance and fewer choices if they’re forced to sell. Of course, even a few foreclosures can have a huge impact on a small town, according to John Baker, an attorney with Iowa Concern, a hotline for financial and legal assistance. “The value of every property in the town drops dramatically,” he says, because vacant houses deteriorate in value “and it has a cascading effect.”

The newspaper’s study found that 27% of rural loans had higher interest rates associated with sub-prime mortgages, compared to 19% of urban loans. The Iowa Mediation Service operates a hotline for people struggling to pay their mortgages. “What I was struck by … was how many little towns have more than one complaint,” said director Mike Thompson. About half of all complaints came from rural areas even though statistics show more than twice as many loans exist in urban areas. “I think you’re going to see a lot of rural people with the same problems,” he said. By Keith C. Dinsmore. Mr. Dinsmore is a journalist and also former editor of a chain of 22 weekly newspaper in Iowa and Missouri.

Senate Puts Spotlight on Iraq

National stories are highlighting both Administration reports to Congress and the dissatisfaction that both sides of the Senate aisle are having with the testimony from General Petraeus. The debate could not be more important to our country, and for rural families and communities who have their sons and daughters disproportionately serving in this war, the stakes are very high.

Particularly disappointing is how the "fact checking" is lining up on the side that Congress isn't getting the straight story or the even the whole story. Read more.

• Assessments of War. NYTimes ... September 7 v. April 8 ... April 9.
• When the Data Don't Really Measure Up. Washington Post ... April 9.
• Generation of Iraqi Combat Veterans. Washington Post ... April 9.
• Ethno-Sectarian Violence. Washington Post ... April 9.
  

"Seven Years of Great Plenty" ... and then what?

Of course, the Bible said it best, but we really must be prepared as a nation for bad times as well as good times. The New York Times has been getting plenty of responses to their stories on how food prices are rising, but the one we found particularly sensible comes to us from Kathy Ozer, Executive Director of the National Family Farm Coalition. The full article is available at Need for Grain Reserves.

"As a group representing family farmers, we feel that it is just as urgent that the United States re-establishes Strategic Grain Reserves just as we have a Strategic Petroleum Reserve.

"So far, the current farm bill has completely overlooked this critical issue. We are just one drought away from seeing $10 per bushel corn, with absolutely no plans in place to deal with this calamity! Most civilizations have had reserves.

"Leaving our food security to the whims of the global markets is a recipe for disaster, but this is the situation we find ourselves in since Congress got rid of our last reserves in the 1996 “freedom to farm” bill.

"A reserve would also help stabilize prices so that farmers would not have to suffer $1.50 corn and $3 wheat, as what happened when prices collapsed after the 1996 farm bill. Farmers then had to be bailed out with expensive subsidy payments.

"Ten-dollar corn is a threat to our food system, but $2 corn should be every bit as unacceptable."

Food Prices Rise ... The Good and the Bad

The NY Times' story "Food Prices Rise - Farmers Respond" reports that some farmers are switching from corn to soybeans as more farm commodities rise in price, while USDA reports that the projected increase in soybean acreage has caused soybean prices to fall $.70 to $10.89.

Recognizing that there is no perfect answer to the conundrum about whether higher prices -- good for farmers, or lower prices for food commodities -- good for consumers is the right answer, we think it's only fair to remind our readers that these higher prices for farmers mean that farmers more or less are finally covering their costs of production. And that's a good thing. What is challenging is how to make sure that people's food needs -- both here and abroad, are met. We're not a big fan of people going hungry, and we're sure our readers aren't either.

However, it's always easy for consumers to blame farmers, but the reality is that there are huge ... we mean, HUGE! ... middlemen costs by the time the food gets to the grocery store, and somehow these costs never seem to shrink. Maybe it's time to ask why.

Farm Bill - Crop Insurance Gets Squeezed?

Hmmmnn. The same crop insurance program that a couple of years ago Members of Congress worked diligently to protect sales agents' premiums at farmers' expense is now getting a second look. Back then, it was the Premium Discount Plan that offered lower prices to farmers, while the plan allowed crop insurance providers to compete on the price of FCIC crop insurance products. Then, it was the farmers that lost that policy discussion.

Now -- with the squeeze on where the money will come from to pass the Farm Bill, Phil Brasher reports in the Des Moines Register that consideration is being given to cutting sales' agent commissions. Read "Farm Bill Plan: Cut Crop Insurance Commissions." Representative Collin Peterson is proposing the cuts. Peterson has often been a critic of crop insurance in the past. Meanwhile, Senator Harkin, who has been an ardent protector of the crop insurance program in the past, is getting optimistic about passage of the Farm Bill before it expires on April 18.

Edwards Praises Clinton and Obama

It seems a lot of people have been wondering, but there still is no answer. See story: "Edwards Praises both Clinton, Obama" from Huffington Post.

A Story to Warm Your Heart

We generally don't choose to honor individual people on this web, but Politico's website today has a feature about a young man who is living proof that it's still possible to find opportunity in America. Jaime Harrison, now 32, was born in Orangeburg, SC and mostly raised by his grandparents. His mom was age 15 and his dad was her high school boyfriend. At a minimum, it was a tough start. Now Harrison has an office at the dead center of the Capitol building — a place many people would envy — offering a perfectly aligned view of the Washington Monument.

You can read how he got there at "Jaime Harrison ... A Long Way from Orangeburg." His story is proof that for those who work hard, the American dream is still possible. And the best thing -- we can promise you that he works every day to make sure that American will continue to be the land of opportunity. We can count on him to both understand and love rural America.

From My Rural America -- CONGRATULATIONS JAIME.

Dr. King and the Candidates on the Trail

The New York Times' story about Clinton, Obama and McCain on the campaign trail is a serious one, but worth reading, "Day on Campaign Trail to Remember Dr. King ... Politics on a Somber 40th Anniversary".

Bill Richardson's Endorsement -- Loyalty to My Country

We shared the news a few days ago, but this Washington Post story about why Governor Richardson endorsed Senator Obama tells the story more eloquently and with much additional truth. It's particularly worth reading because of how Mr. Richardson came to his decision. Click here for the full story.

"Immigration Issues End a Grower's Season"

Today's New York Times features a story about the difficulties of finding workers who can pick 10,000 tomatoes a day. For Pennsylvania farmer Keith Eckel, these challenges have put him out of business. He handled it for 35 years -- proper documents, migrant worker forms, Labor Department forms, and agricultural visa privilege forms, but this year all the right recruitment efforts and the proper forms have failed. Eckel's labor contractor has explained that workers are scared and afraid to travel. Even in the case of people with all the right forms, some are concerned that America and its ever-increasing documentation requirements are simply too difficult, too unwelcoming. For journalist Paul Vitello's full story, click here. Mr. Eckel has not made the decision as to whether he will plant next year.

All three presidential candidates -- Clinton, Obama & McCain, favor a path to legalization for illegal immigrants that includes learning English and paying fines. Both Obama and Clinton would also toughen penalties for illegal immigrants. All three have voted for measures which would secure U.S. borders.

Senate Works to Prevent More Home Foreclosures

Senator Jon Tester (MT) spoke today on the Senate Floor about the growing difficulties of the mortgage crisis, saying that "The housing market is the worst since the Great Depression," also adding that he is concerned about opportunities slipping away because of the failure of national leadership to invest in basic infrastructure. " See video at "Senator Tester on Rural America" ... about how the economic crisis is affecting workers, families, and communities.

This week the Senate is considering the Foreclosure Prevention Act of 2008, a very important bill which modernizes FHA so that it can better provide:

• Safe, rate-locked-in fixed mortgages to home owners
• Financial counseling for families in danger of losing their homes and protect
  
• Soldiers who come home to find themselves in danger of losing their homes.

The bill will also assist communities with large numbers of foreclosures and require lenders to really explain -- clear disclosures -- to future buyers and more. One additional thing to consider about this legislation -- this is an "assistance raises all boats" issue, i.e., when the mortgage market fails, it drags down everyone's housing values , creating more mortgage failures each time a wave of failures happens. Thus for homeowners with good mortgages, it's important to have compassion for those in trouble. Otherwise, just like the farm crisis of the 1980's, more and more families are likely to be endangered. To contact your Senator, click here.