Supply and demand

I have never been a subsidy fan and I will follow that statement with the belief that all of them should go away. Yes, I am talking about every single one from the farm to the fork.

I don’t think farmers, single mothers, airlines or oil companies should receive a dollar when it comes to government subsidies. As you most likely know, there was a recent meeting in the White House discussing the Renewable Fuel Standard and I must say that at least one very good thing came from that meeting. During this meeting, Sen. Ted Cruz released his hold on the confirmation of Bill Northey of Iowa to be the USDA undersecretary of farm production and conservation.

Before I get back to my thoughts on RFS, I must say that I continue to hear quite a bit of criticism from folks in all walks of life about the fact that we are so far into President Donald Trump’s term and still have many key positions not filled. Blame the Democrats for most of that with the exception of the last two key positions that we must have filled that have been held up by Republicans—Sen. Cruz and retiring Sen. Jeff Flake.

I know politics are politics but when it comes to the farm economy we are in dire straits. That is exactly why I am discussing the subsidy issue because we need more real revenue put into the equation and not just some governmental short term Band-Aid.

Gregg Doud is still not fully confirmed as the chief ag negotiator in the office of U.S. Trade Representative. This needs to happen because the answer to the current plight of the American farmer is increasing the value of the high quality commodities we produce and expanding our markets.

I am going to use a quote Iowa Sen. Chuck Grassley issued after the meeting in The White House on Feb. 27 about the RFS.

“I understand the president is concerned any time an American’s job could be lost. I am too, which is why I strongly support the U.S. biofuels industry, which 50,000 Iowans depend on for their livelihoods. But ethanol isn’t just important to Iowa. It’s important to 14 other states in the Midwest and to our national security.”

No one should dispute the importance of ethanol, or any farm product for that matter, but why should the sustainability be dependent upon a meeting in The White House that does not involve a negotiated trade deal?

I am fully aware that ethanol production does not currently receive any subsidies. I am speaking about two things the subsidies created: the volume of production and the mandate on how much ethanol (renewable fuel) must be produced today.

I did not get much schooling from a text book or inside a classroom but I do know that every single college in this country that teaches economics to students covers supply and demand. When you try to circumvent the system and bring outside money into the equation because politicians can then use that “benefit” for their stump speech in getting re-elected, the farmer pays the price in the end.

While I am on that note, I will tell you that I am conservative when it comes to government. We supposedly have a “conservative” foothold today in the nation’s capital and yet we just witnessed the passing of a spending bill that outpaces anything in the history of this country.

At some point someone is going to have to stand up and say “I really mean it. I am voting for less spending.” I realize that some congressmen, including mine in Nebraska, voted no but we need to get loud, get persuasive and really start making the size of government smaller.

At the end of the day Mr. Politician, you should actually visit the farmers in your district and learn how real reduced spending works. When there is less income, you figure out a way to tighten up your budget. Nobody in this country has produced more products using less natural resources than the American farmer. At the end of the day, we must be able produce more with less and be rewarded for the actual value of the products we produce. Efficiency and ingenuity are what made this nation the envy of the world to begin with, not a bunch of government subsidized begging. We need that back.

Editor’s note: Trent Loos is a sixth generation United States farmer, host of the daily radio show, Loos Tales, and founder of Faces of Agriculture, a non-profit organization putting the human element back into the production of food. Get more information at www.LoosTales.com, or email Trent at [email protected].