The June Crop Report Shows Farm Policy should be the number one issue in rural elections 2008!

1. The June USDA data shows the average corn farmer had a $200/acre profit without subsidies from his 2007 crop and will likely have a $400/acre profit on the 2008 crop! Yet will still average nationally a $24/acre taxpayer subsidy in 2008, just like 2007, under continuing farm bill formulas! In fact corn farmers could receive that amount of subsidy as a minimum through 2012, unless corn prices crash and farmers opt for the new " ACRE" program costing taxpayers far more!

2. Yet even if the corn farmer has production problems in 2008, highly subsidized crop insurance will still give him a likely $200/acre return, based on a fixed $5.26/bu. base for 2008 production. All while many rural residents, lack base health insurance and struggle with energy prices and a weakening economy.

3. The report also shows, consumers were gouged by grain speculators, just like what has taken place in energy markets. The farm price of wheat only averaged $6.50/bushel on the 2007 crop now being consumed. While the price of wheat products have been priced as if the farmers received $13/bushel, thanks to speculation!

4. As for struggling American households, the new farm bill adds about one billion dollars annually in new funding for additional nutrition/food stamp programs. Congress used an outdated 2007 baseline that doesn't reflect current economic conditions. (Click on farm bill CRS comparisons). Yet Congress fully funded direct farm payments if prices stay high. If farm prices crash, it surely does not fund the new optional "Acre Program", most farmers will jump to, to stay extremely profitable if prices crash, all at taxpayer expense through 2012.

5. As for the worlds hungry, who have received a lot of media hype and not enough additional grain to fill their stomachs? The report shows there was, or is no food shortage, only bad government policies on freight, speculation and failed market oversight, by all major world governing bodies including Uncle Sam.

6. While another USDA report last week shows the biggest thief to the hungry and U.S farmers is ocean freight rates. They have been out of control and ignored by failed farm policy and Minnesota's own two Perennial Congressmen Collin Peterson and James Oberstar, Chairman of Ag and Transportation. For spot, ocean rates have jumped from $20/metric ton in May of 2002 to $140/metric ton in May of 2008. An increase of $3/bushel for corn. U.S. Gulf to Japan, hurting both American farms and the worlds hungry. All under our failed congressional leadership, that let's outrageous ocean rates site weekly in the U.S. by these pirates! From May 2007 to May 2008 alone, rates jumped from $64/mt to $140/mt, jumping the cost of wheat to the hungry by $2.07/bushel almost equal to the farm wheat price increase of $2.35/bu. from the 2006 crop, compared to the 2007 crop. Sadly we see similar increases on the Mississippi River system. Where barge freight rates, using our public waterways from Minneapolis to the Gulf have jumped under the 2002 farm bill from $11/ton to as high as $39/ton. Yet Congress just voted to spend $2 billion of your tax dollars for updates for a system and corporate players who are clearly ripping off the public. For any need updates that Alan Roebke may have supported, would have been funded by user fees, because of these outrageous rate increases and not charged to taxpayers.