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August 11, 2011

Fremont Tribune: Johanns addresses agriculture issues

Nebraska Sen. Mike Johanns talks to a group of more than 50 people gathered at the Nielsen Center in West Point Wednesday afternoon about his outlook on Nebraska agriculture. (Chris Bristol, Fremont Tribune)

By Tracy Buffington - Fremont Tribune

While he knew there would be a conversation about the budget, Sen. Mike Johanns really wanted to talk about agriculture.

Stopping in West Point on Wednesday, the former U.S. Secretary of Agriculture said discussions have begun on a new farm bill, comments are being sought on animal identification regulations and a tax credit associated with ethanol is going away.

He also talked about the budget with those who filled a conference room at the Nielsen Community Center.

"We are closing in on farm bill discussions," Johanns said. "If I were to try to figure out a timeline, I would tell you that I really don't anticipate that the farm bill goes very far this year.

"We started to have some hearings on the Senate side," he added. "So far they are general, kind of generic hearings. No pen has been put to paper; no proposals are circulation."

Animal identification has been a controversial topic in agriculture over the past few years. Johanns favors a voluntary program, but he said proposed regulations would require producers who moves cattle or hogs across state lines to use some form of identification - most likely ear tags - and have a health certificate.

"This administration is much more favorable for government than I was or the Bush people were, so within the last couple of days a proposed rule came out," Johanns said.

There would be costs associated with the proposed regulations, along with additional recordkeeping.

"This gets hopelessly, and in my judgment, unnecessarily complex," he said.

Instead, he favors a voluntary approach. Already he has seen producers who do use animal ID systems and health certificates get premiums for their livestock when it comes time to sell.

One of the other hot topics involving proposed regulation has been the possibility of having farm equipment driven only by those who have a commercial diver's license. Typically, children of farmers have been allowed to operate tractors while helping out, but the proposal would change that.

The good news, Johanns said, is it appears the Department of Transportation will give an exemption for the agriculture industry.

But the news for the blenders tax credit for ethanol isn't good. Johanns said the tax credit will end this year.

"For those of you have invested in the ethanol industry ... there are still requirements on the use of ethanol," he said. "Those are still in place. I think there is going to be a future for ethanol."

Still, Johanns said, almost every discussion taking place in Washington begins with the budget.

"We've got some enormous budget problems," he said. "Consequently, everything is now being scrutinized in a way like we've never seen before.

"This is only the beginning, I believe," he added. "We'll be arm wrestling over budget more than anything, and that affects everything from conservation programs to direct payments to whatever. That's just the reality we're finding ourselves."

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