WASHINGTON – U.S. Senate Committee on Agriculture, Nutrition, and Forestry Chairman John Boozman (R-AR) delivered the following opening statement at the third committee hearing examining the farm economy titled “Perspectives from the Field: Risk Management, Credit and Rural Business Views on the Agricultural Economy Part 3.”
The following is Boozman’s opening statement as prepared for delivery.
“Good morning and welcome. It is my privilege to call this hearing to order. I would like to thank our witnesses for taking time away from your families and your work responsibilities to share your expertise with our committee today.
“As a proud Arkansan, I am delighted to have Ben Noble of Little Rock, Arkansas on today’s panel as well.
“This hearing is the third in a series our committee is conducting to examine the current state of America’s rural economy from the perspective of our farmers, ranchers, lenders and rural leaders.
“Having time to reflect on what we have heard in the previous two hearings; it is clear to me that a common theme has emerged.
“If we expect current and future generations of producers to not only survive, but thrive, we need to pass a strong five-year Farm Bill this year that strengthens the farm safety net and revitalizes rural communities, many of which are struggling to retain an adequate workforce to feed, fuel and clothe the next generation of Americans.
“More than 70 percent of all counties in this country are rural, and agriculture is the number one industry in a large majority of those rural areas.
“While there are numerous valuable rural development programs in the Farm Bill that many of us on this committee champion, the most potent mechanisms for rural development are the risk management tools that our producers utilize to secure the financing necessary to grow and expand their operations which in turn supports the communities they call home.
“The economic activity generated by the agriculture sector in rural communities supports everything from local retail operations that supply inputs such as seed, fertilizer, and fuel to the grain mills, cotton gins, or other processing facilities that provide direct employment opportunities for local residents.
“Local governments count on that tax base to provide critical services and infrastructure needed to keep communities healthy and vibrant.
“Unfortunately, every member of this committee has heard directly from farmers in their state about the very difficult conditions they have endured over the past several years - and are likely to face in the future - if things continue the way they are.
“While many of us have heard from Ag groups for years now about the importance of getting a Farm Bill signed into law, I noticed a distinct change in tone beginning last summer as I visited with not just producers but also their lenders.
“One banker in Arkansas estimated then that producers could struggle to secure financing for planting roughly 20 percent of the acres in my home state.
“Unfortunately, tough times are nothing new for our nation’s farmers.
“They have endured many challenges before, but we have entered a scenario in which many economic indicators of health for the agriculture sector, especially for row crops, are headed in the wrong direction and have been for some time now.
“The $10 billion in economic assistance provided at the end of last year is a critical bridge for many farmers to secure 2025 operating loans. I appreciate the work of many Members on this Committee in securing this assistance and look forward to swift implementation by Secretary Rollins and the department.
“However necessary to ensure many farms stayed in operation for the upcoming year, this economic assistance should not in any way be considered a substitute for a five-year farm bill. Whether you look at rising levels of farm debt, loan delinquency rates or the percent of row crop farmers that need to refinance debt to cash flow, it is clear that Congress needs to act quickly to strengthen Farm Bill programs.
“The suite of risk management tools should provide a critical backstop for producers and ensure adequate access to credit for all generations of farmers, but especially our young and beginning farmers who we are counting on to carry on the honorable work of feeding the world. I look forward to hearing from our witnesses here today and putting their advice into action as we continue our work on a Farm Bill this Congress.
“I now turn to Ranking Member Klobuchar for her opening comments.”