Farm groups seek relief for Nebraska livestock producers

Higher prices for corn, soybeans and other livestock feed ingredients are squeezing livestock producers.

Both the Nebraska Farm Bureau and the National Farmers Union are seeking relief for livestock producers.

Nebraska Farm Bureau has asked U.S. Secretary of Agriculture Ed Schafer to immediately release Conservation Reserve Program land in Nebraska and other Midwest states for haying and grazing. There are more than 1 million acres of CRP in Nebraska.

Nebraska Farm Bureau President Keith Olsen said, in a letter to Schafer, that livestock feeders are currently looking at severe losses never before experienced in the livestock sector.

"Nebraska has more than 6.5 million head of cattle and 3.2 million pigs, and many of those producers finishing the animals are losing anywhere from $20 to $40 per head for pork and more than $200 per head for cattle due to higher feed costs," he said.

Before the recent floods, Olsen said, corn was trading around $6 per bushel, but it is now about $1.30 higher and may go higher before the crop is harvested in the fall.

"This recent increase in corn prices equates to around $12 per head in additional costs to a pork producer," Olsen said.

He said many pork producers and some cattle feeders have already lost a significant amount of equity since Oct. 1, 2007.

"In particular, many pork producers have lost about 25 percent of their equity thus far and could lose another 50 to 60 percent of their remaining equity," Olsen said.

He added that releasing CRP for haying and grazing would directly impact cattle producers.

"Gaining access to CRP acres will provide an alternative feed source for those choosing to background beef on grass and would relieve some pressure on corn demand for feed -- which could help pork and poultry producers who have little choice other than to feed expensive feed grains," he said.

The National Farmers Union Board of Directors has called on Congress to take action to assist independent livestock producers struggling with higher production prices. The board also called for relief for the less fortunate to confront rising food costs and high home heating costs this coming winter.

According to the NFU board, National Farmers Union is committed to enhancing the economic well-being of all independent family farmers and those less fortunate who are experiencing rising food costs as a result of the skyrocketing price of energy.

"We are prepared to work with Congress in finding solutions to the challenges brought forth by skyrocketing energy costs," the board said.

According to the National Farmers Union's board, recognizing limited budget resources and congressional pay-go rules, the board said assistance could be provided by offsetting or reducing previously approved tax incentives to large oil and gas entities that are posting record profits.

"Energy has a far greater impact on food costs than commodity prices," said NFU President Tom Buis. "Agriculture is very energy intensive and because farmers do not set their own price, they have no way of passing on the increased energy expenses needed to produce a crop. Meanwhile, large oil and gas companies have benefited from multiple tax incentives, while at the same time posting historic profits."

According to Buis, the NFU board recognized the strain high grocery prices are placing on consumers, yet pointed out that according to the U.S. Department of Agriculture (USDA), farmers receive less than 20 cents for every dollar Americans spend on food; the other 80 cents of the expense occurs after it leaves the farm and before the product arrives on the shelf.

"Until we get energy prices under control, consumers will not experience food price relief," Buis said.