BROOKINGS Finishing up the Farm Bill is probably the top one, along with a couple of other things, Scott VanderWal, president of the South Dakota Farm Bureau, noted in a recent interview with The Brookings Register that addressed keys issues of concern to the SDFB and in some instances the American Farm Business Federation.
They (federal legislators) got much of the Farm Bill done in the reconciliation bill, also known as the One Big Beautiful Bill. That was the thing that had to do with budget issues. Other things remain to be done. So we need to let Congress know we need to finish that up.
As for the No. 2 issue, he cited fixing the labor situation. We have a broken regulatory system as far as hiring immigrant labor. The H-2A P (Visa) Program E-Verify System doesnt work and that has caused some pretty bad problems.
Some farmers had workers who had supposedly been cleared by E-Verify but those workers had to be let go, which caused problems in the food distribution system. Cows need to be milked and fed. That caused a problem. Theres a need to fix that system to have a legal, stable way to hire immigrant labor.
The president noted that in the past 10 years there has been an increase in dairy farms in South Dakota and many of them rely on immigrant labor. He added, Its just really hard to find native South Dakotans who want to do that kind of work. It is a problem for South Dakota and some of those enforcement issues have come up.
Back to the drawing board
Next up VanderWal weighed in on tariffs, noting the presidents use of them as a leveraging tool but suggesting an approach that brings with it some alternative aids: We encourage him to understand what the impact on imports and exports is. Were hoping it will lead to expedited re-negotiations, or negotiations, for new markets for our products.
Thats really what we need: to go back to the drawing board and expand those relationships that weve had with other countries and also find new markets. Thats a big deal to us and we can see the results of not having adequate trade deals in our markets right now. Corn, soybeans and wheat are at very low prices and below cost of production.
As to the weather and rainfall, VanderWal noted that a few fields are muddy wet, very few that are too dry. Most of us are about right. Weve got a pretty nice crop coming. Corn looks real good. Soybeans are always hard to tell until you get into them with a combine.
If were blessed with good yields, that certainly helps, he added. But at the same time, the prices are still below break even. But it does help to have more to sell, so thats something well be thankful for if thats the way it turns out.
Time to look at property taxes
Finally, at the state level, the SDFB sees a big issue with property taxes coming up next legislative session.
There are some folks who want to roll back or decrease owner-occupied taxes, VanderEal explained. And thats fine. But we need to remember that if you decrease taxes in one area, you have to increase them in some other area or else you have to decrease the need, which is pretty hard to do.
The productivity system put in place about 10 to 15 years ago is tied to evaluation of agricultural property. However, that system is unpopular with some people. He wants people to revisit the issue.
Well be working to help people understand and remember why that was started, the president explained. At the time evaluations were based on sales. Ag land sales were going up so fast and so hard.
The 150-percent rule in place at the time dictated that any sale that was more than 150 percent of the current value of a piece of land did not get used in the formula. It got to where we didnt have any sales that qualified be used in the formula.
The fallout was the productivity system as noted above.
VanderWal is looking to the possibility of some sort of a compromise to resolve the issue.
Contact John Kubal at [email protected].
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