A Dangerous Trade Off

Without question, these are extra-ordinary times. The nation is suffering from its worst economic downturn since the 1930s. From agriculture’s perspective, USDA is projecting net farm income — the lifeblood for grower-customers — will drop from the high $80-billion-range in 2008 to a mid $50-billion-mark.

Naturally, this state of the world has caused myriad ag-oriented businesses to pull in the reins and horde cash. Many have cut back on their expenses as a result, including advertising/marketing and trade association dues/involvement.

This kind of reminds me of what happens with homeowners during an extended drought. They typically stop watering the lawn and trees when the prospects for rain seem slim. Trouble is, when the drought ends, the lawn comes back rather quickly. A tree once dead, however, stays dead.

As with a water drought, economic droughts also end. Similar to the lawn/tree analogy, advertising/marketing dollars usually come back into the market very quickly. Trade association dues/involvement? Historically, that generally takes more time to recover.

Let me go on record as saying that cutting trade association involvement could have some very serious consequences in the long run. This is particularly true given the current state of uncertainty in the nation’s capital.

A quick glance at some of the issues currently making the rounds in Congress proves this point: Climate change, controlling emissions, reducing carbon footprints, protecting water quality, and energy needs. And many of these outcomes are all the more difficult to predict, say observers, with the extremely polarized agendas of Democrats and Republicans in play.

“I have followed ag policy in Wash­ington for over 40 years,” says Dr. Barry Flinchbaugh, professor of agricultural economics at Kansas State University. “I’ve never seen it more partisan and more mean-spirited.”

In this legislative climate, Dr. Ste­phen Johnson, former US EPA administrator, says it is very important for agriculture to be informed and involved in the legislative process. “The only way for ag not to be subject to regulations —and ridiculous regulations —is for you all to help get legislation that makes sense passed,” says Johnson. “Make sure you are taking part in the legislative process.”

Flinchbaugh agrees with this view. “There’s an old adage in the political world: You can either get into the tent and spit out or stand outside the tent and spit in,” he says. “If you do that, you will get spit on. We’ve got to get into this tent and help development this legislation.”

When it comes to being involved in Washington, trade associations are the easiest way for our industry to have its voice heard. The heads of these groups are skilled at protecting our industry from potentially harmful legislation. Given the evidence, now would be a very bad time to stop supporting trade associations and take our chances that lawmakers will do the right thing.

Leave a Reply

Latest News
RoGator RG1300B AGCO
EquipmentAGCO Opens Nominations for 12th Annual Operator of the …
August 18, 2017
AGCO Corp. has announced the opening of nominations for AGCO Application Equipment’s 12th Annual Operator of the Year. The award Read More
ManagementTravels, Mergers, and CropLife 100 Updates
August 18, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss recent trips they’ve taken, the latest news on market consolidation, and the 2017 Read More
Corn Seed
Seed/BiotechSeed Innovations Benefit All of the Seed Industry
August 17, 2017
Innovations from throughout the seed industry help address many of the economic, environmental and health issues we face as a Read More
SpreadersGVM to Introduce New Prowler at MAGIE
August 17, 2017
The newest Prowler in GVM’s line-up will be introduced next week at the Midwest Ag Industries Expo (MAGIE), August 23 Read More
AcreEdge bag
Seed/BiotechLandus Cooperative’s AcreEdge Seed Brand Gears Up for 2…
August 17, 2017
Growers in more than 26 Iowa and Minnesota counties are seeing field signs with a new brand name at end Read More
Engenia soybeans
ManagementCorn and Soybean Yield Forecasts Larger than Expected
August 17, 2017
The USDA’s August Crop Production report contained larger-than-expected forecasts for the 2017 U.S. corn and soybean crops. At 169.5 bushels Read More
ManagementU.S. Ag Secretary Introduces SCORE
August 17, 2017
U.S. Agriculture Secretary Sonny Perdue signed a new agreement to support new and beginning farmers. On August 5, Perdue joined Read More
CHS-FFA-Minnesota
CropLife 100CHS and FFA: A Homerun Partnership
August 17, 2017
CHS hosted the Minnesota FFA for its annual FFA night at CHS Field. FFA students, educators and CHS leadership enjoyed Read More
Greg Musson, Gar Tootelian
CropLife 100Gar Tootelian Foundation Donates Half Million Dollars t…
August 16, 2017
Students at Immanuel Elementary are looking forward to the first day of school for two reasons this year. One, they Read More
Water Drainage
StewardshipNew System Could Remove Two Water Pollutants from Ag Fi…
August 14, 2017
Algae blooms in the Gulf of Mexico use up the majority of the oxygen in the water, leading to massive Read More
Eric SfiligojThe Top 10 Crop Protection Companies, Post-Mega Mergers
August 14, 2017
Everyone loves a good Top 10 list. In fact, some prominent celebrities such as David Letterman spent much of their Read More
ManagementThe DuPont-Granular Deal, Dicamba Update, and Upcoming …
August 11, 2017
Matthew Grassi joins Paul Schrimpf for the second week in a row to talk about DuPont’s acquisition of Granular, as Read More
Soybeans weeds
HerbicidesOngoing Evaluation Key to Controlling Weeds, Improving …
August 10, 2017
As the sun bears down on record U.S. soybean acres this August, farmers keep their eyes on their fields to Read More
Young Corn Plants
Seed/BiotechMycogen Seeds Offers Novel Product to Battle Pythium, O…
August 10, 2017
After a season plagued by seedling diseases caused by cool, wet soils at planting, farmers have a new option to Read More
Corn Field
FertilizerProtect Applied Manure Straight From the Manure Pit to …
August 10, 2017
Farmers who use liquid manure to fertilize corn crops can now mix Instinct nitrogen stabilizer in their pit for easy Read More
Iowa waterways
Stewardship2,600 Iowa Farmers Commit $8.7 Million to Water Quality…
August 9, 2017
Iowa Secretary of Agriculture Bill Northey announced Tuesday that a record number of Iowa farmers signed up to install nutrient Read More
Natives-First-Purple_Prairie_Clover
Seed/BiotechLa Crosse Seed Continues Focus on Soil and Water Conser…
August 9, 2017
La Crosse Seed is doing its part to lead communication to ag retailers across the country on the importance of Read More
HerbicidesAg Secretary Perdue Comments on Dicamba Issue
August 9, 2017
Agriculture Secretary Sonny Perdue indicated to reporters this week that he would like to see the industry work out a Read More