Letters to the Editor

Letters may be emailed to edit@dtn.com or mailed to Greg Horstmeier, 9110 West Dodge Road, Omaha, NE 68114.

Over production from tillage of past CRP acres and newly sod-busted pasture land has decreased commodity prices, increased soil erosion, and caused an over production of grain, soybeans, and hay.

We can all agree that our industry has three vital needs:

I. INCREASED COMMODITY PRICES

II. INCREASED MARGINS

III. INCREASED MARKETS

How can this be accomplished? How can we sell a concept that will benefit all parties concerned (federal government and it's agencies, environmentalists, farmers and land owners, Joe Citizen, financial institutions, and agri-business)?

A proposal of a "SOIL HEALTH INITIATIVE," may just be the answer. The "SOIL HEALTH INITIATIVE" is an annual program promoting the rebuilding of soil health, without the permanent retirement of the land. Utilizing this initiative, we will see an increase in crop yields, as the soil health is improved, increase commodity prices and increase margins for Agri-Business.

Let us examine each of the groups previously mentioned.

Federal government and its agencies: Benefit if 15% of the crop land would not be subject to crop insurance. Noncompliance with the initiative would result in exclusion from the farm program for the year. The tax base would increase due to higher land values (due in part to increased soil health, increased crop yields, and higher commodity pricing with 15% fewer acres being planted.)

Environmentalists: Benefit in better wind and water erosion, higher carbon sequestration due to the use of cover crops. Smaller carbon footprint, due to tillage practices and reduced use of fertilizers, pesticides, and herbicides. Increased wildlife habitat, and food sources. Better water utilization. Cleaner water.

Farmers and Land Owners: Benefit from reduced fertility requirements (sorghum-Sudan grasses, millett, alfalfa, and legumes in a plow-down program could produce up to 1% organic matter increase in the soil profile, which in turn could reduce fertility needs by up to 10%). Forage with a legume added will provide up to 80 pounds to 160 pounds of nitrogen per acre for subsequent crops. Better water utilization. Reduction in wind and water erosion due to increased organic matter. Increased production in subsequent years, which will lead to increased land values. Reduce input costs, thereby increasing profitability. Due to the reduction of harvestable acres, commodity prices will increase.

Joe Citizen: Benefit from safer, cleaner environment for their families.

Financial Institutions: With increased commodity prices, and increased margins for producers, financial institutions will be better suited to meet the needs of producers. This benefit is due in part to increased value of land, and the long term benefits of the "SOIL HEALTH INITIATIVE."

Agri-Business: This program may reduce the quantity of units sold, but due to the reduced acreages, a price increase would mitigate this loss, and would be palatable to producers due to increased commodity prices.

How much would this program cost the federal government to implement? Based on the 2012 estimate of 281,483,300 prime agricultural acres in the United States, the "SOIL HEALTH INITIATIVE" would involve 42,222,495 acres (approx. 15%). If the initiative were to reimburse the grower/land owner for the cost of seed, those costs would be mitigated by the increase in the tax base due to increased profits on the farm, and the reduction in agricultural insurance subsidies

What are the benefits to our industry? As soil health improves, grain volumes will increase on our prime agricultural lands. Margins will improve at our elevators, yielding more profits via higher commodity prices. Increased volume and profit due in part to supply and demand for our products in order to comply with the initiative.

As envisioned, this "SOIL HEALTH INITIATIVE" is a win/win program. The government and its agencies win. Environmentalists win. Farmers and land owners win. Joe Citizen wins. Financial institutions will be better suited to meet the needs of today's agriculture. Agri-Business companies do not lose. Not to mention the benefit to our industry, its health, and growth for the coming years.

John T. Browning

Browning Seed, Inc.

3101 South IH 27 Box 1

Plainview, TX 79072

806/293-5271

806/729-1728 Cell phone

(CZ)

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