Illinois
COMMENTRY

Illinois needs sound farm policy

In 1940, the average American farmer fed 19 people through his labor. Today, a farmer can feed 129 people. The hard work and ingenuity of America's farmers have made U.S. agriculture the pride of the nation. But farmers today face serious challenges.

In the last several months, hog prices plummeted and are still below cost. Corn and soybean prices are in a slump. Agricultural exports are expected to fall $4.6 billion this year alone, for an overall drop of 18 percent since 1996. Farmers struggle under the burden of excessive taxes and regulation. And farmers lack adequate means to weather the ups and downs of today's unpredictable agricultural markets. The bottom line is that many Illinois farmers are having trouble making ends meet and farms are shutting down because federal agricultural policies do not provide sufficient solutions.

Senator Peter G. Fitzgerald

Agriculture is critical to both the economy of America and Illinois. Including related industries, agriculture is the nation's largest employer. Illinois' 76,000 farms cover more than 28 million acres, nearly 80 percent of our state's land. Illinois farm product sales generate more than $9 billion annually.

When I entered the U.S. Senate last November, I worked hard to secure a seat on the Senate Agriculture Committee so that our state and our farmers could have a strong voice in Washington. We need to focus on three areas: opening new overseas markets for farm products, reducing the federal tax and regulatory burden on farmers and rural businesses and ensuring farmers have adequate risk management tools.

Illinois farmers depend on foreign trade for their economic well being. In 1997, Illinois exported $3.7 billion in agricultural commodities, ranking third among all states. But over the last three years, farm exports dropped nationwide, putting many Illinois farmers at risk.

Congress and U.S. trade officials should work to ensure that American farmers are able to sell their products in the world market. In my first legislative act as Senator, I joined four colleagues to introduce legislation requiring U.S. trade officials to make eliminating agriculture trade barriers a top priority in U.S. trade negotiations, so that our farmers can compete on a level playing field and fight for a better share of retail agriculture sales.

I support fast-track trade negotiating authority, so that the Administration can be in a better position to tear down international trade barriers. We must, at the same time, work to ensure that our trading partners adhere to all existing trade agreements.

Eliminating the estate tax on family farmers will ensure that farms can be passed on to the next generation. According to USDA figures, farmers are six times more likely to face inheritance taxes than other Americans. Family farmers work hard and pay taxes throughout their lives. They build a productive and successful family business, and hope eventually to pass it on to their children. A farm's value is stored overwhelmingly in liquid assets — land, livestock and physical capital. Farmers who don't have cash available to pay the estate tax are often forced to sell their farms to pay the government.

Last year, the federal government provided a significant amount of money in emergency disaster assistance to farmers. Perhaps this would not have been necessary if farmers could access, in the first instance, well-designed risk management tools.

This year, the Senate will examine the USDA's crop insurance system. We need to look at whether the current system provides adequate protection against risk and evaluate the development of new risk management tools.

For farmers to prosper, our nation must have economic, farm, and trade policies that promote investment and growth in agricultural communities and agricultural states like Illinois. A healthy agricultural economy has ripple effects through many industries and is critical for the economic prosperity of both Illinois and America. As your new Senator, I look forward to addressing these issues in the coming years.

Sen. Peter G. Fitzgerald (Republican) was elected to the United States Senate on November 3, 1998. At 38, Fitzgerald is the youngest member of the U.S. Senate. He serves on the Agriculture, Energy and Small Business committees. He is also the chairman of the agriculture subcommittee on Research, Nutrition and General Legislation, a subcommittee with Jurisdiction over health, welfare and food safety issues, as well as the commodities futures trading industry.

4  ILLINOIS COUNTRY LIVING MAY 1999