Vilsack: U.S. farms producing plenty for both food and fuel
By JERRY HAGSTROM
TAMPA, Fla. — Agriculture Secretary Vilsack vigorously defended the biofuels industry today, saying it is not responsible for rising food costs and still needs subsidies to become a mature industry.
“It is irritating to me that we have to read this all the time,” Vilsack said, referring to the food versus fuel debate in a speech to the Commodity Classic, an annual gathering of large corn, soybean, wheat and sorghum producers. The people who blame ethanol for rising food costs “do not accept the notion” that farmers are producing enough commodities for both food and fuel, he said.
“Don’t bet against the American farmer,” he added. “If you do, it is a losing bet.”
Vilsack noted that commodity producers get only 20 percent of the food dollar. “I will accept responsibility for food price increases if you give me more of the food dollar,” he said, adding that commodity producers get only 20 percent of what the consumer pays.
“OPEC is more responsible for increases in food prices,” Vilsack said, adding that if the United States produces more renewable fuels “we wouldn’t need OPEC.”
Those who want to slow down the development of biofuels, he said, “simply do not understand the power of this idea,” adding that the biofuels industry is first of all about national security.
“We import 60 percent of our oil,” Vilsack said. “It makes more sense to provide opportunity in the United States.” Congress’s goal to have one quarter of the nation’s fuel supply come from renewable fuels “will create a million jobs in rural America," he added.
Vilsack also said the yields in the United States have increased because American farmers have embraced technology.
On the upcoming budget battles, Vilsack said there needs to be shared sacrifice. “The key to getting us into a sustainable situation is to grow the economy, he said, which means continuing to spend on research and development.
Vilsack declined at a news conference to comment on press reports today that congressional Democrats and the White House have proposed cutting spending by $6.5 billion for the remaining months of fiscal year 2011, and that the proposal included a $500 million cut in the special nutrition program for women, infants and children known as WIC.
Vilsack said he had not checked with his staff yet to see what proposal might have been concluded. Birth rates are down, and excess budget authority has been reported in the WIC account, which Republicans earlier proposed cutting by more than $700 million.
According to later press reports, Republican leaders rejected the Democratic proposal because it did come near the $61 billion in cuts in the House-passed continuing resolution.
Many of the attendees at the Commodity Classic use biotechnology and have been less than enthusiastic about USDA's programs to help organic and small farmers, but they responded with vigorous applause to his comments today, particularly about the low percentage of the food dollar that go to commodity producers.
House Agriculture Committee Chairman Frank Lucas, R-Okla., said in his speech at the event that the Obama administration “takes for granted” the 210,000 large farms which produce most of the food in the country, and is devoting too much attention to small and organic farmers who are “niche parts of the agriculture family.”
But Vilsack defended USDA’s assistance to organic and small producers. “This is not about pitting one size against the other,” he said, noting that small producers provide a diversification of food sources for consumers and economic activity that helps rural America.
TAMPA, Fla. — Agriculture Secretary Vilsack vigorously defended the biofuels industry today, saying it is not responsible for rising food costs and still needs subsidies to become a mature industry.
“It is irritating to me that we have to read this all the time,” Vilsack said, referring to the food versus fuel debate in a speech to the Commodity Classic, an annual gathering of large corn, soybean, wheat and sorghum producers. The people who blame ethanol for rising food costs “do not accept the notion” that farmers are producing enough commodities for both food and fuel, he said.
“Don’t bet against the American farmer,” he added. “If you do, it is a losing bet.”
Vilsack noted that commodity producers get only 20 percent of the food dollar. “I will accept responsibility for food price increases if you give me more of the food dollar,” he said, adding that commodity producers get only 20 percent of what the consumer pays.
“OPEC is more responsible for increases in food prices,” Vilsack said, adding that if the United States produces more renewable fuels “we wouldn’t need OPEC.”
Those who want to slow down the development of biofuels, he said, “simply do not understand the power of this idea,” adding that the biofuels industry is first of all about national security.
“We import 60 percent of our oil,” Vilsack said. “It makes more sense to provide opportunity in the United States.” Congress’s goal to have one quarter of the nation’s fuel supply come from renewable fuels “will create a million jobs in rural America," he added.
Vilsack also said the yields in the United States have increased because American farmers have embraced technology.
On the upcoming budget battles, Vilsack said there needs to be shared sacrifice. “The key to getting us into a sustainable situation is to grow the economy, he said, which means continuing to spend on research and development.
Vilsack declined at a news conference to comment on press reports today that congressional Democrats and the White House have proposed cutting spending by $6.5 billion for the remaining months of fiscal year 2011, and that the proposal included a $500 million cut in the special nutrition program for women, infants and children known as WIC.
Vilsack said he had not checked with his staff yet to see what proposal might have been concluded. Birth rates are down, and excess budget authority has been reported in the WIC account, which Republicans earlier proposed cutting by more than $700 million.
According to later press reports, Republican leaders rejected the Democratic proposal because it did come near the $61 billion in cuts in the House-passed continuing resolution.
Many of the attendees at the Commodity Classic use biotechnology and have been less than enthusiastic about USDA's programs to help organic and small farmers, but they responded with vigorous applause to his comments today, particularly about the low percentage of the food dollar that go to commodity producers.
House Agriculture Committee Chairman Frank Lucas, R-Okla., said in his speech at the event that the Obama administration “takes for granted” the 210,000 large farms which produce most of the food in the country, and is devoting too much attention to small and organic farmers who are “niche parts of the agriculture family.”
But Vilsack defended USDA’s assistance to organic and small producers. “This is not about pitting one size against the other,” he said, noting that small producers provide a diversification of food sources for consumers and economic activity that helps rural America.
