March 29, 2024

Guebert: Illinois agriculture has solutions for the future

December was a blur with wrapping up harvest, Illinois Farm Bureau annual meeting and American Farm Bureau Federation annual meeting preparation — all before we could disconnect to celebrate the Christmas season and close the books on 2019.

At the core of our 105-year history is our resolution process that takes place during the year and then finalized each December at the annual meeting. It has been said our policy book is a mature document, but each year there are timely adjustments actively approved by the delegates.

This year’s Sense of the Delegate Body resolution seemed timely urging swift ratification of United States-Mexico-Canada Agreement. Delegates approved on Dec. 9 and ironically on the morning of Dec. 10 we heard positive news by the House Speaker announcing a vote on USMCA before Congress adjourning on Dec. 20.

Following up on Dec. 13, we heard the positive news of a Phase 1 China Deal. Those were two positives for farmers in Illinois.

USMCA passed the House on Dec. 19 with overwhelming bipartisan support. We thank the following who voted for USMCA: Rep. Bobby Rush, D-Chicago; Rep. Robin Kelly, D-Matteson; Rep. Daniel Lipinski, D-Western Springs; Rep. Mike Quigley, D-Lakeview; Rep. Sean Casten, D-Downers Grove; Rep. Danny Davis, D-Chicago; Rep. Raja Krishnamoorthi, D-Schaumburg; Rep. Jan Schakowsky, D-Evanston; Rep. Brad Schneider, D-Deerfield; Rep. Bill Foster, D-Naperville; Rep. Mike Bost, R-Murphysboro; Rep. Rodney Davis, R-Taylorville; Rep. Lauren Underwood, D-Naperville; Rep. Adam Kinzinger, R-Channahon; Rep. Cheri Bustos, D-Moline; and Rep. Darin LaHood, R-Peoria.

We were ecstatic to see the bipartisan efforts by House leadership and the Trump administration to negotiate this important deal. The USMCA is an updated, modern trade deal with two of U.S. agriculture’s top three trading partners.

It represents expanded market opportunity, ensures tariff-free access to those markets and shows the world that the United States is back in business in the global marketplace. Keep this fact handy — one in every five acres in Illinois is planted to feed Mexican and Canadian consumers.

With Canada and Mexico alone, Illinois farmers export 40% of their corn, 13% of their beef and 34% of their pork to the two countries. This economic activity supports thousands of jobs throughout the state.

Our members’ priorities for 2020 include swift ratification of the USMCA. We look forward to the moment this economically important trade agreement is fully ratified with U.S. Senate passage as soon as possible in 2020.

Finally, we saw movement on a limited trade deal with China and the halt of tariffs which were set to go into effect Dec. 15. This was welcome news to Illinois farmers. Building global markets and maintaining relationships with other powers is vital to the future of U.S. agriculture and the farm economy.

Illinois farmers have expressed a profound desire to recapture lost export demand due to the prolonged trade war with China. Illinois farmers have long stated they want to receive their income from the marketplace; a deal that increases China’s agricultural purchases is absolutely necessary to help farmers recover economically. As a result of retaliatory tariffs, sales of Illinois soybeans to China were cut in half from $2 billion in 2017 to $1 billion last year in 2018.

We are appreciative of President Donald Trump and his administration’s efforts to negotiate this partial deal and look forward to the signing of this critically important agreement.

On the downside, Illinois farmers expected more than what the Environmental Protection Agency managed to deliver in its final supplemental rule on Dec. 19. More than 1,600 Farm Bureau members told the agency in person and in writing that maintaining the integrity of the Renewable Fuel Standard only occurs by replacing each and every gallon in the annual Renewable Volume Obligation that is waived for the benefit of small oil refiners.

As an organization, we feel the EPA seems to be missing a real opportunity to rebuild trust with farmers and the biofuels industry. As move forward into 2020, we will urge USDA to move quickly on an infrastructure package to accommodate higher blend levels.

Another fact for farmers to keep in their minds, Illinois is the nation’s third-largest producer of ethanol. About one in every three to four bushels of corn produced in Illinois is converted into ethanol.

2019 is behind us and thank you for the lessons. 2020 will be another chapter to conquer. Remember: inch by inch, life is a cinch; yard by yard, life is hard.

Illinois agriculture has solutions for the future. We look forward to making them a reality.

Richard Guebert Jr. is the president of Illinois Farm Bureau.