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Continuing food-vs.-fuel debate: Farmers need reunion, not feud

Have you ever been to a family gathering where one part of the family is not speaking to another part? Typically it involves a perceived injustice: Aunt Victoria was not invited to Cousin Harold’s daughter’s wedding.

Sometimes it is jealousy: Grandma gave daughter Mary the special plate that daughter Ann really wanted. Of course, there are those occasions where hard feelings may be justified: Uncle Joe showed up drunk to the Christmas open house and made a pass at the Pastor’s wife.

Whatever the reason, family feuds are disruptive and hard to settle. American agriculture is in the midst of just such a family feud. True to form, there have been plenty of hard feelings, name calling and back stabbing. Yet, a group of family members met last week in Indianapolis to try and start the process of ending this family feud.

The feud is between the corn growers and the pork producers. As the price of corn has gone up and the price of hogs has gone down, pork and corn producers have found themselves increasingly at odds.

It began last fall as mild concern about the supply of corn; but, as corn prices reached $8, the pork industry became active opponents of the ethanol industry. This culminated a few weeks ago when the National Pork Producers Council sent a letter to the EPA calling for a reduction in the Renewable Fuels standard (RFS) contained in the Energy Bill.

Corn growers have countered that ethanol is not the main reason corn prices have hit record levels and that a change in the RFS would have little if any impact on corn prices.

Many row crop farmers feel a sense of betrayal from a livestock industry which supports them when feed prices are low but turns on them when grain prices move above the cost of production.

In an effort to keep this family feud from becoming an all out war, a small group of influential leaders from both sides gathered in Indianapolis recently to find some common ground. That common ground is trade.

Trade is the one thing from which both sides benefit and with which both can find growth and prosperity in the future. We tend to think of exports in mutually exclusive terms: there are corn exports and pork exports.

Yet, in reality, pork exports are just another way of exporting corn. As Ron Litterer, NCGA President, explained, it is more economical to export a bushel of corn through a pound of pork than as bulk grain.

Think of it as value added. By producing the pork here in the US, we not only use our corn but provide jobs and economic activity for rural communities. Pork exports have been on a steady increase for the past decade.

At present, it is estimated that one out of every five pigs produced goes to the export market. Yet there remains more room for growth. Increasing the demand for pork would also increase the demand for corn. In this case, however, both prices for hogs and corn would increase. That is called a win-win.

During the gathering of those who produce corn and those who feed it, a clear voice of common sense arose. John Hardin, former President of NPPC and Hoosier pork producer, warned his fellow pork producers not to endanger the future of the biofuels industry and, likewise, urged corn growers not to grow the ethanol industry at the expense of their livestock customers.

This is one family feud that, if allowed to continue, could destroy the family. We need to find common ground and work for the betterment of all sectors. This is especially true for the big business dominated poultry industry which has been especially divisive in the food vs. fuel debate.

It is time to have a family reunion - not continuing the family feud.

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Gary Truitt may write to him in care of this publication.

7/18/2008