Transcripts For CSPAN2 Public Affairs 20130216

Ready well. In terms of the intensity of the drought, remember 1988 that came out with no corn and all things considered, we took 4 billion bushels off of our corn crop estimate by the end, but that was about the size of the 1988 crop. To me, because of no till practices and a lot of that helped by biotech varieties and because those developments and seed varieties and were able to get a better crop than i wouldve had otherwise. For senator stabenow, you just answered your question about livestock problems. Id like to continue if you could discuss problems for the renewable fuel industry raised by the lesson production, higher prices, et cetera you see ahead for that. I think that clearly this past year because of corn prices weve seen reductions in margins economic producers. If you look at the weekly levels of ethanol Production Company took a big tip and has been remaining buffalo that cabs under the renewable fuel standard for conventional fuels. We have revised estimates downward to 4. 5 billion bushels. We anticipate they will remain while over the course of the next year. The other major thing with renewable fuel standard of course is the socalled wall refers to how much ethanol can be put into the gasoline supply. Because of declining fuel consumption, improve fuel efficiency, other factors, that is good ethanol as well. I think the main thing driving a over the past year or so has been higher corn prices. The real challenge to the industry. My last question if i could use, you know, just 1 or 2 , and its not as much understanding of agriculture and you always read about food prices going not. Speak to me as best you can with direct correlation there is between Consumer Prices and problems of drought in which causes the price to go up . I get this all the time because people often talk about Commodity Prices as food prices. Youre a very long way away from a plate of food that you might purchase. Most of that, for some products obviously the difference between a farm level price and the retail price is closer. For things like corn, you look at what goes into an animal that then gets process and sold as meat to consumers. If you look at the retail food dollar we spend, thats about 14 cents. They are small impacts on agriculture is not to say they arent significant. If you look at 2007, 2008, the most recent period 2011, 2012, and my testimony surcharge on that with the monthly inflation rates looking at the year before to the change from december 2012 b. C. 2011. You can see weve come down to a low level of inflation. The most recent levels reported its about 1. 3 and thats well below what we saw of the last 20 years. Back in 2007, two dozen eight, we will see increased due to the current food prices forecasting food inflation around 3 to 4 . A far cry from the 40 increases in Commodity Prices we saw this summer. In closing, let me give you an admonition from economists in the department of agriculture, dont let people get away with saying that 40 of corn crop grocer at the mall when considering one third of the bushel of corn Still Available for animal feed, which bring that down to 20 to 25 to choose for ethanol. Youre absolutely right. The byproducts from ethanol production have become essential portion of the diet of a number of these livestock groups. Thanks. Thank you, madam chairman. Youre welcome. Thank you, madam chair. To mr. Glauber. I apologize i had to go to the hearing. You mentioned the debt to asset ratio for those of Crop Insurance. Do you have any idea what the tattoo data ratio is not available . Actually the debt to asset ratio i mention was for the entire u. S. Farm sector. As i said earlier, you have to be careful of the aggregate. Let me see if we can coax out of the numbers and i can go back and see if we can get a breakout for those numbers and get back to you. Obviously this year theres no question if you are a field crop producer with high rebels, a revenue product of Crop Insurance is a big news and help you maintain, you know, ive set lassies. Thank you. And to dr. Pulwarty, imagine the collaboration between 79 and usda to better handle drought and drought situation. Are there any other tools you can think of that would help us in minimizing the impact of these drought . Thank you for the question. Theres several practices that are there, people that have been doing for a long time. Thats why theyre still there. From the standpoint of an understanding, theres a lot that can be learned from this event are going through that can help us save up longerterm risks. I think other mentioned knowing the facts things we put into place up front for a long time, weve learned you can save 3 to 4 in the longterm. If you are effectively at observation, satellitebased operations aware there might be a risk to crop, but fans might be followed to the price of the water can be used by the firemen are for other purposes as an avenue we first two, simply because of looking at the price find, a higher price for the water, will also be able to sell what he or she can. From that standpoint, we projects in the state of california and what areas might be likely to be followed during a drought such that up front one can be theres an amount of water that can be sold somewhere else. There is quite a debt of Early Warning information at least make them as decisions and if i can be clear about it, the idea of having better improved monitoring is really the missing piece court made it across all of our agencies. We have good pieces of data, but coordinating what we know about is extremely critical. From that standpoint, we can also point to the idea said shes heard today unlucky not where where we have programs as to how to affect the late design programs for extended drought. We are really good at the onset. But as is mentioned when you get to places like texas, when we get into deep throat and purchasing feed, all of a sudden we work closely with the state and others on what is the likelihood of meeting the specials. So from our standpoint, training out of the thresholds make decisions are and how best to provide information from an economic standpoint to secure the investment. As the last statement, that is the basis for the western Governors Association to learning from how they look or to place investment over the long term. Thank you to both of you for a very important discussion about challenges facing forward. We look forward to working with you. This would conclude our first panel. We ask our second panel to come forward. Thank you. [inaudible conversations] [inaudible conversations] well, good morning again. We are so pleased to have this panel with us. I know as others have been here in the past understand the multiple commitments that members are trying to be able to meet this morning. Cloning might be good for the Committee Structure here. Senator cochran had to step back to the appropriations meeting, but its interesting others will be coming and going as well. We so appreciate all of you being here. We will introduce all of our witnesses and then ask you each to speak for five minutes am i welcome any other written testimony you have. I am first going to turn in my senator baucus to introduce the distinguished first mls, leon lasalle. Thank you, madam chairwoman. Its an honor for me to introduce leon. Leon is a native american rancher, the real deal. Several generations is a grandfather in Chippewa Creek reservation in montana. Weve got seven reservations in montana and one of the reservation by the tribal members. Around the mountains between montana. Had a real stand out as landmark in our state. Leon was featured in the book. The book was called the escape routes for the montana cowboy. He said that he thinks there is a growing disconnect between the general public. The same thing is true in washington d. C. The disconnect between the people here are the people that represent the rest of the country. Maybe you can help connect. Were really honored to have you here. The state of montana into industry. Thank you very much. s thank you, senator baucus. This has given us a similar keep it here in a place of honor and look forward to having a chance to look at it as well. Nobody fights for Montana Agriculture than senator baucus. Thank you. Im going to turn to senator donnelly and ask them to introduce a second witness. Thank you, madam chair. Ranking member stabenow another says the committee, and looking forward working together to address issues facing our nations farmers. We are fortunate today to have with us, Angie Steinbach are. The hoosier corn from tel aviv county to share her divine Conservation Park says, Crop Insurance and Risk Management techniques critical to operating the firemen the 21st century. As the folks testified today in a Clear Company to find the appropriate balance between Disaster Assistance programs. As angela tae yoo, lesters growing season was extraordinarily challenging. We had a very, very significant trout situation in indiana. Angie and her family feasted on their farm and shes going to share some of that with this today. Angie and her husband had dreamed to firemen through their hard work, dedication to administer cooperation to 1500 acres. She and her has been a great example to us here in the committee. We are to those glaubers to roll up our sleeves and to get a farm bill as soon as possible as well, madam chairwoman. Thank you very much. We are pleased to have you and i want to now introduce from michigan and, jeff send a lifelong cherry farmer. Hes given us chocolate covered cherries that will not remain in the committee longer than the end of this day. Ill be gone. So thank you very much for bringing that. A lifelong cherry farmer who grew up working on his grandfathers 40 acres. He and his wife have now expanded that to 800 acres. Also operating a receiving station for over 35 years to 35 growers bringing cherries to the station. He is currently vice chairman of the Marketing Institute or the direct heirs and vicechairman of the National Cherry growers and industry foundation. For so pleased to have your today. Last is simply least, mr. Steffen was introduced earlier by senator johanns. He is president and coowner of the production operation, which amounts to 135 cows come by racist cops on 1900 acres and has six fulltime employees. He currently sits on the president s Advisory Board of his Alma Mater University of nebraska and Services President elect of the builders and formerly Richardson County farm bureau, so we welcome each of you and will ask mr. La salle to begin his testimony. Thank you, chairwoman stabenow, montana senator baucus for this opportunity to share it or insist regarding the life Disaster Programs. Writing is leon lasalle and im a native american rancher approximately 100 miles northeast of montana. And president of the fall ranch inc. , including my wife shannon, my parents, jenny and my Brother Robert w. And his wife susie. Together we raised black angus cattle in the reservation. I Service Board of director for the montana Stockholders Association president of the cattlemens association. My maternal grandfather and his sons were among the first resident to become cattle ranchers and today is in the past the manager ranching operation for generations in mind. Weve installed numerous conservation practices specifically designed to preserve and protect natural resources. Even though weve implemented conservation measures come into his times in my family ranch has been struck so hard by weatherrelated disasters that we cite assistance. The better life Disaster Program has been that assistance. We participate in the federal Disaster Programs since the mid1980s. One thing listening to Congress Passed legislation for these programs to proceed. That changed in the 2008 find out where for the first time i disaster was included. In a series of these programs to offset the financial sting of a drought or blizzard archive years. Ive known this is especially true for native american ranchers common Deceit Program is a great example of a program that helped feed was shorter. In drought years and theres little or no hay to feed livestock, ranchers like a must purchase a premium, sometimes by the time they hay reaches range rate is more than the cost of pay itself. Our families used Emergency Livestock Assistance Program in 2008 when i rants qualified for payment to purchase replacement hay. We currently have Livestock Indemnity Program application pending, a loss resulting from a blizzard for 2010, 2011. These programs provide the only financially but available in a ranch was faced with loss of livestock to feed them. There is no insurance for catastrophic livestock losses such as those experienced by southeastern montana ranchers during the horrific wildfires in 2012. I have help neighbors prepare applications and on one occasion participated as a thirdparty witness. But several fell through the ice and ground was trying to shelter themselves from a stinging montana blizzard. While the programs are welcome relief company, frustration. Producers like me do not work with that they say in and the fsa offices and unfamiliar experience with unfamiliar rules. For example, a ranch family offered 150 tons of hay and lightning struck the haystack. Application was denied because the rancher that purchase Crop Insurance on a small field of hay barley. To report a loss within 30 days this time. Needs to be extended. Losses may have not even been assessed in 30 days. When the disasters occurring, seldom has the to and 90 document losses. Im currently struggling to keep my cats are freezing to death. I will count them later. I believe programs should be continuous programs that have a stability to benefit both livestock reducer have to say. Many problems we have stemmed from processes documentation requirement and the feeling of livestock producers to gather data required. Program consistency would help with this. Mother nature flows a variety of event in the path of a rancher. Whether is uncertain and severe wifi markets are vulnerable to the effects of drought as well. Journalist reduce the number of cattle available and processing facilities have closed as a result, the suspect enterprise. If markets are not the issue, many of my ranchers are challenged by the creditor losses. In summary, i suggest the following changes. One, the crisis then for japanese to be revised. Two, the whole Crop Insurance is to be chopped from my sick eligibility criteria. Three, Program State to be handled differently from other programs and in most cases are working with an entirely different crowd than those historically served by fsa. Four, streamlined process encouraging Program Participation would be a welcome change. Five, consistency. The Program Needs to be permanent. And six, the 30 day reporting deadline needs to be extended. In closing, and what you want to know i am proud my family and native American Heritage and equally proud to be a montana rancher working everyday to deliver safe, healthy, environmentally wholesome beef to your families and families throughout the world. Thank you. Thank you very much. Mrs. Steinbarger. Affected thank you, chairman stabenow and donnelly for that nice introduction and Committee Members for allowing me the opportunity to comment. My husband and i began the family farm in 1989 after the last big weather event of 1988, which is the drought thanks to the ability to manage financial risk and income corn and soybeans in the state. We find her association such as the Indiana Soybean Alliance invaluable to success of our operation. The Indiana Soybean Alliance is an arm of the americans they been association, he traded organization that represents 600,000 soybean farmers on a national and International Policy issue. Its always been our dream to farm. My husband and i both knew the only way to make our dreams a reality port to save pennies and more crossing times. And hope one day my father give us the opportunity to participate in the farming operation. Mike worked in the book milk transfer business collaborative fertilizer, chemicals and Crop Insurance businesses. The dreaded 1988 took it on my father for no Crop Insurance and no crop letters to the ability to participate in the family farms. Restarter fairman 600 acres and increase the operation of 1500 acres. Roughly one half furnisher arrangement with our landlords. They continue to work as it is still not selfsupporting. Thanks so the milk truck to buy a school bus and i continue to work in the Crop Insurance and do farm recordkeeping. To manage me started farming operation with tillage techniques can be used in such programs of cost share funding. To this day, we still abdicate affirming as a way to preserve our foil and my share as a result of affairs, average joe 750 bushels of corn. For me as very risky wisher prayer for the worstcase scenario. We did not anticipate the drought on the planet at 2012 crop. The crop is timely and appeared on 35 acres of really sandy soil in hopes of raising 200bushel corn per acre and have it in 170 bushels on are not irrigated soils. The middle of june it became apparent we were going to release chronicles. Heat and drought had settled in tuesday. It is so frustrating to watch the crop wither and die. I used a filter string and of welts. I submitted to the committee. The race was don to get our pivot operation. We didnt honor the crop until july the sixth week contract did to landlords. We were concerned about 40 bushels is the most we ever contract for a landlord per acre. Our best cornice on the farm. Under the pivot was 200 shills and outside of the pivot, 10. This farm averaged 100 bushels to the acre and a scientist who contracts. The rest of the crop is dismal at needless to say there wasnt anything to put in the grain and due to the dragon heat, drain quality was poor and the shifter grained whos going to be said for the asap. Weve lived on that you reproduce it, so we will be feeling does the facts in 2012 and 2013. The number one barrier to increase in yields is the lack of water. Try weather in july and august limit potential pair refined Crop Insurance and effective tool in managing risk and experience weather events. We began using Crop Insurance in 1991 to maintain cash flow and prevent from borrowing money. I have lost money over buying Crop Insurance over the last 20 year time span. It was until the last two drought years that he paid for us to have Crop Insurance. Using Crop Insurance is a tool is not cheap. We have revenue planned optional unit structure and ensure it 80 of our corn average yield and 75 of our soybean average yield. That costs 20 an acre for soybean. This does allow us to the cupboard for distances to the poor yield or a poor price that goes to. They were the lowest on record. This 41 bushels to the acre. By the way does worse than 1988. Soybeans averaged 30. 4 which are marginally better and ended up in one of our best decisions to search the payday. As you can see we paid a substantial premium for Crop Insurance and that keeps us in business for the crop year. Thank you, chairman for the opportunity to testify and look forward to your questions. Thank you very much. Mr. Sent. Thank you, senator stabenow for inviting me to testify today and for your concern about an import issue. I grew up working 40 acres. Now my wife and i need to farm a Hundred Acres sweet and tart cherries putting some land under the federal Fire Protection program is one of the tools we use to expand their operation. He someday hoped to take over the farm. I also managed a receiving station for 37 years and i have a working relationship with her defied growers supremely cherries to be weighed, inspected, shipped two processors in michigan, wisconsin and the state of new york they were with. Im currently working as vice chair of the institute board. The National Organization for farmers and im also vice chair for the industries foundation, which is a sweet cherry organization. Herein in iraq, michigan produces 75 of the united state cherries. However, that was not the case in 2012. Last year was the most disastrous year weve ever experienced. Her winter was much warmer than normal come with the snow and ice on the great lakes. In midmarch, 37 days of 80degree temperatures unheardof in northern michigan. Trees began to come out and grow. If let them completely vulnerable to the next 13 freezes in april. This extreme by their in michigan was one of the worst issues wed ever seen. Sweet cherries endured slightly better than tart cherries, but to top things off, we were hit with the worstcase bacterial canker had ever seen. There is no treatment for this disease, which affects the fruit beds. In michigan, with capacity to grow 275 Million Pounds of cherries. In 2012, total was 11. 6 Million Pounds. If this would just happen a year sooner the program wouldve been in place and wouldve had some form of safety net. There is no insurance available at all for industry, so my fellow growers and i have been no Risk Management tool to get through this difficult year. Insurance is available, but policy starts at 50 loss and pays out only 50 of that number. Farmers to look at only 25 of coverage in its 100,000 cap. This doesnt close and close. My cost is between three quarters in a million dollars. Tree fruits must be maintained whether theres a crop or not. You carry on with the same practices emerge keep them healthy. Expenses remained the same. Imagine working for a year and a half with no paycheck and still having the same expense is. There is a Pilot Program for sweet cherries available in two counties. Fortunately, i live in one of the two counties. What it meant to me is 50 of my sweet cherries are covered. However, the farmers did not have the option to purchase cheri insurance. The administrator last summer when we are working on a program, which i hope will be up and running for the 2014 season. I worry about her Young Farmers who have not build up equity. Knowing, thought the same expenses as a formula for disaster. They needs to be sent in to stay in business when normal disaster hits. A few days that we have no control over can put aside business. In closing, id like to thank you for being able to testify here today. Id also like to the viewer three points. Number one, Disaster Relief is very port to the tree crop industry. Number two, Crop Insurance needs to be available to farmers who grow food in the United States. Number three, we need to provide farmers with utter Risk Management tools. Im very worried about 2013 and with this year will bring. We must have a good crop for growers and industry can get back on their feet. Another year without no formal safety net for a lot of us out of business. Thank you for your time. Thank you very much. I know how serious this is. Mr. Steffen, welcome. Good morning Ranking Member cochran and members of the committee. I want to thank senator johanns for his earlier introduction and all of you for leadership and hard work on behalf of our nation. I salute your commitment to public service. My family, our employees and i produce milk, corn, soybeans, wheat and hang on our farm in humboldt and southeast tabasco. Another hundred 35 cats in 1900 acres of not irrigated dryland fired my family members at home right now caring for and treating animals so i can be here today. This nation has benefited from the food supply that is wonderful, inexpensive and at the highest quality in securing the food supply for the future is clearly responsible public policy. Facing a growing World Population is a moral imperative. The impact of fire and drought has had her fire operation and the price of highquality hay has gone gone up by 50 in the price of lower quality hay for beef animal says were than doubled. While we the appreciative that she recently for Conservation Reserve Program for emergency headache increased income would like to see efforts made for an earlier release date for those acres. This is dramatically improve quality and quantity of those forages. My neighbors in western nebraska have been dealt a particularly hard blow by wildfires in nearly 400,000 acres, products i have state equivalent to have the state of rhode island were burned in 2012. Imus ranchs chemistry supplies were wiped out come offenses destroyed in cattle have been liquidated. I urge you to consider tax relief to help those ranchers regain footing. It is a gentleman, our nations cattle herders had a 61 year low and consumers will feel this damage for years. I would also know the authorization and funding of livestock disasters which were not funded for 2012 wherein the farm bill extension in the funding of this program should be a top priority for this committee is trespassing a farm bill this year. I set contributed 10 billion in 2011 or 11. 7 billion. I cemented my own operation as those in my community were set on the board of directors and not many mr. Virtually community in my state. We cannot say with pride the federal Crop Insurance program has worked well. Crop insurance is not. Net free money. Until last year our operations had no living near Crop Insurance history that show does paying in more money in premiums than they received in independence. Last year they Insurance Program to pay premiums every year to protect their operation from an event like the sort of 2012. I would consider changes that would allow this individual policies to because ms to more closely fit each farm. Risk Management Strategies contributed to our success include many tools they guarantee a profit is simply not true. In introducing the stresses of success. Hard work and determination come to mind. My parents, richard excuse me, my parents richard aims to steffen, both graduates of university of nebraska ensure that their children would have College Education as well. They set a High Standard for education, hard work and determination. Another tool we employ this diversification. We include both livestock and crops in our business. In order to manage price rise, we constantly watch the changing world are good and prices for your prices low. For his futures and options contracts, but we allowed with dozens of other producers were victimized by the genius of mismanagement at mf global. When our accounts are frozen, we continue to refer the return of a slowly rising number of funds. We work everyday to find and apply the best Management Practices and weve relied on a Land Grant University research and Extension System established by the moral act of 1862 to help us move to nearly 400 years of water, soil and time. Thanks to landgrant research and extension commodes improve the way they care for and feed mill company to hire production, improved herd health and better quality milk. To further protect soil and water to begin is to cover crops years ago, but participation in Conservation Security Program gave us a push to go beyond Program Requirements unless you attended a 60 re prescribes. The practice holds great promise for conserving soil, food and water, billing quality, but we need more research in this area. Each congress and the committee to prioritize funding for basic and applied Agricultural Research and land grant universities by the more act of 1862. The research and development is the engine of our nations food supply may conclude as i began, and this nation has benefited from a food supply that is plentiful and inexpensive end of the highest quality. Securing the food supply for the future is clearly responsible policy, facing a growing World Population is a moral obligation. Thank you. Thank you very much to each of you. You are on the frontlines of making sure we have a safe, then it is supplied in the riskiest business in the world. We thank you very much. Mr. Lasalle come you talked about the livestock issues. Im very pleased to say most of those who put in the farm bill we passed in this committee and the senate and will continue to push for this. We address Disaster Assistance in our farm bill. How would you say at mf global has oversight and we make sure you get every penny of your money back. Or going to keep pushing on that. Talk a little bit more if you code about the difference in the Coverage Options for you, the limited coverage you have under Crop Insurance rate now with your sweet cherry insurance policy versus the map program and how to solve this for you when youre trying to put it together limited options. Thank you, senator. I think i touched on it when i said when hundred thousand dollars. When hundred thousand dollars doesnt cover much. If i could have Crop Insurance that the Pilot Program, you pick your policy. It runs from 50 coverage to 75 coverage. This last year at 50 coverage. I was very happy, very fortunate. The doing of the two counties. Since the episode, i increase the coverage because they feared if this could possibly happen again. So therell be more money is coming there. That program, the 100,000 just doesnt get it. We need a policy that we as growers can buy instead some form of coverage for ourselves so we have some form of tool that we can fall back onto. I too feel our climate had changed. I fear this. I fear could affect all of us at this table, but we have no Crop Insurance and if we dont get it, its going to put any of us out of business. Could you speak also for a moment about the cost of maintaining the orchards regardless of the situation. Your cost of going down because you dont have a crop. On the long version that i wrote, i touched a little bit. Our costs will be the same i shouldnt say that. Let me restate. Our commissary touch cheaper because we didnt have to harvest product this year. But if you look in the long version, i made a statement. Spring came early, which meant we started five weeks sooner than normal. Your first phrase, first fertilizer, everything i did very, very most games that you can do and you have to do them. I have a theory, you have to keep them happy, health needs and if you dont do it, its going to catch up to you later. Expenses this year are down a touch, but you have to fertilize spray, do it all. I mean, we ended up with four extra sprays the theorem me tell you, it is not cheap. Thank you. Id like to ask mr. Lasalle come you all talk about additional Risk Management tools related to conservation practices. I wonder if United States touch on briefly what conservation practices you use and how it makes it more resilient for you managing the drought and other areas. Over the years weve installed many, many miles of livestock Water Pipeline Syndicate Manager grazing in a matter worthy of some grass invitation that we never use a case we have a drought through some of the cosh or programs available. Thats enabled us to pipe the water, installed tanks. One of the other things weve done is installed permanent livestock shelters. Weve actually built them out there so when the cattle are in a blizzard company can actually get to a spot that hopefully keeps them from going to what my neighbor experienced, this takes a practices. Thank you. Ms. Steinbarger. Yes, our conservation techniques number one would be no till farming. The rent then, late soil. It does not hold my sure well. We started an operation using those techniques, where we dont disturb the soil. I plant into it and that has worked well for us. Also reduce watery projects where he tried to make the best use of the water we do have and the other one with the filter strips, we farm near rivers that we finally want to preserve the soil that can end this filter strips model may allow us to maintain water quality, but also to maintain soil. Thank you. Mr. Steffen. Thank you, senator further questioning. As i mentioned that testimony, i would point to the techniques weve been using for 40 years on our operations to save soil, conserve water and improve our crops. I would also point out there making extensive use of cover crops and those crops planted in conjunction with our traditional crop, offer us a way to catch more moisture and snowfall and improve the way percolate into the soil than absorbs the were able to capture and store more water in that soil by using those cover crops. Its a way to increase the organic matter levels in the soil and that makes a little more productive and increase his ability to hold water. Those are all techniques we use and i would mention again, the value of longterm planning and thinking in foresight and its imperative that producers continue to look forward and plan i had to be able to weather the stress and drought and that we raise awareness is your doing in this hearing, the necessity for planning ahead. To thank you very much. Senator donnelly. Thank you, madam chair. You had mentioned Crop Insurance allowed you to ensure you had a budget for this years expenses. Can you talk about any important ideas would like to consider us to examine Crop Insurance and Disaster Assistance quiet yes, it took a couple items on the forefront of my mind. As you consider a new farm bill, i am very concerned that we maintain subsidy for Crop Insurance. Maybe i should say direct payments weve had in the past reword a farmer regardless of his ability or desire to participate in Risk Management. I feel that the Crop Insurance program if you want to play, youre going to pay and thats exactly what we have chosen to do and i hope you consider that same idea as we go forward. I think i would probably be the most important as of right now. Thank you very much. And to all of our panelists, i want to tell you how much admiration we have for you. You are the people who feed our country, who had then an extraordinary positive part of our export programs, who have been stewards of our land and who have left our nations plans in the extraordinary condition that they are in. Swallow the economy of pitcher heart and soul into family operations. It is the epitome of american entrepreneurial spirit, American Enterprise what you do. Search all of audio, thank you. To mr. Sun, i am a proud hoosier, but i will tell you our area is inundated with your products every year. I just want to let you know that as well. Thank you. Great. Senator baucus. Thank you, not in chairwomen. A couple things. On senator donnellys point, its always struck me how farmers and ranchers have better if of life because they know they cant control their fate as much his son and they can erroneously. You cant control the weather, you cant control the price with costs. We cant take what she got because you got to manage it as well as you possibly can and its very, very difficult and its kind of humbling. Gives a sense of life and gives a sense of life and importance. I think a lot of people in the city could a little arrogant to think they can control anything and they obviously cant. I dont know if you saw it, a super bowl ad, part of the code basically farmers and ranchers. It is very powerful. The main point was there is just a powerful respect for farmers and ranchers. I hear its all about us who did see it, just to take that to heart because its so important. In our state, madam chairwoman, agriculture is the number one industry. One out of five montanans income is dependent upon agriculture. Its been that way for a long time. I just think therefore it makes sense. Not just maintain another state to get a little more sanity in some of these programs and clearly, one of livestock Disaster Assistance. It is just incredible to me how wrongheaded it has been there prior to two guys any, about 30 years weve had this onagain, offagain, ad hoc Disaster Programs, farmers, ranchers know whos going to ask, whos not going to act, how much it provides for, what years to choose is just nuts. And my estate we discussed a lot of them are very inefficient. Sometimes the rancher gets a payment when he or she shouldnt just because the county got it and vice versa. Its just very inefficient. In fact, 30 years preceding the two guys in a farm bill, the 60 billion was paid in Disaster Assistance, about 2 billion a year. For years and two dozen eight through 2011, think about it and 4. 6 billion was spent. So roughly were two times more efficient than under the ad hoc program basically. So its cost effect is. Livestock Disaster Assistance. Thats basically why in 2000 i have for the provision to make it permanent. Regrettably didnt have money for the 10 year period, but it goes to the point to permanence of and ranchers can count on it and know that its there. I would say that a lot of farmers and ranchers say boy, that estate tax provision you put in is great. First of all, numbers are good. Its not onagain, offagain. It makes it easier for people when they cant control the weather, cant control price, can control costs. Avista can make things more stable for people. Just give us a sense of not only the problems are because we dont have a program now. Currently, you mentioned fsa offices, the 30 day way. Its a very good point you have to address, but if you just kind of compare what life was like before 2008 compared to send and afterwards we dont have it, this is your chance. Tell it like it is. Well, i think you kind of alluded to it. Before 2008, we are at the mercy of congress to enact legislation so we had a program and a lot of times that might be six months, here come the tears years down the road from in the actual disaster occurred and were still bleeding at those times im looking for sara lee. Unfortunately, you know, some people didnt get that kind of set their operations back. For that flood, trout, we had it all. What i alluded to here, we actually had the blizzard of 2010, 2011, where we know my stack and not following spring had unprecedented of events that completely changed the landscape of our ranch in neighboring ranches, so we went from one extreme to the other end with them last year, we were at the tail end of this nation by joe, but were starting to feel it in montana, also. Without permanent seat, we just dont have anything to go to the bank with so to speak because bankers other two. They like to know we have insurance on me is there some way of knowing when i go down there and ask for an operating loan cutbacks amount, but i can somehow back it up. The struts a lot of times the meal program may have had a countywide designation and maybe people who didnt really have a stroke are able to participate and get these payments, like you said, senator baucus, you are paying out more to people who didnt necessarily fall into the same category. We have a montana soccer policy. Weve actually address that in a resolution. We would like to see changes made to have address are designated also. You speak well of a lot of people. We deeply appreciate it. Thank you. Thank you very much to each of you. I will emphasize again we did pass permanent livestock disaster is part of our farmville and senator baucus was the leader in making sure that happened ever committed to having the farmville as we move forward. The major say in conclusion that weve heard an economic and other experts about not only the trout of 2012, there bifold that era, but unfortunately, it appears we can expect conditions that could be even worse this year. That is something that is certainly very sobering today