May 26, 2017
One of the most common phrases that we’ve heard during our time in Iowa is that farmers here are “feeding the world.” They have to increase crop yields to “feed the world”, corn is “feeding the world”, and over half of the soybeans grown in Iowa are exported to “feed the world.”
For me, this raises a lot of questions specifically, “Are Iowa farmers feeding the world?’ and “Do Iowa farmers need to feed the world?” I think its a good question to ask, and its one that isn’t asked enough. Local farmers are stockpiling past years of corn, hoping that the price will increase, and there’s less than 100 days until this years corn is ready to harvest. To me, that speaks of massive overproduction.
Today, we met with David Tierney at Monsanto, and Dr. Neil Hamilton at Drake Law School. They had very different perspectives on agriculture, especially big agriculture in the US. Monsanto is continuously working to produce better seeds, that mature faster, are less susceptible to pests, and are pesticide resistant. While this endeavor may be a worthy goal, it also has created massive overproduction due to several good seasons in row. It seems strange, but farmers often have greater profits during bad seasons. Its basic supply and demand: less supply equals higher price.
One of the themes running through both presentations was the inability to predict the actions of the current administration. A Trump presidency is an unpredictable presidency, and many of his actions have created potential instability for the ag community. To feed the world, Iowa farmers need to export their products, and they rely on the export market to a great extent. President Trump’s proposed border wall and withdrawal from TPP have created international uncertainty, and key export markets for Iowa farmers are looking elsewhere (not good!). In addition to this, Dr. Hamilton found it unlikely that the 2018 Farm Bill would come about on schedule, or possibly even at all, due to polarization within Congress and a host of other, higher priority issues facing the legislation, specifically healthcare and tax reform.
In conclusion, the state of ag and ag policy in the country is a bit of a wash, and we really don’t know where the train is going. It’s a great time to be alive and study politics!