Vaden Addresses High Input Costs Before Farmers

USDA’s Deputy Secretary Stephen Vaden, like many others in farm country, is focused on high input costs and how to get those numbers more manageable.

“The first step is to get those prices up through increased demand, and that goes to what our trade team is trying to do," Vaden recently said.  "When it comes to high input prices, again, until a few months ago, I was actively farming myself. You don't have to tell me about the fact that, even if you look at the Consumer Price Index, it claims that over the past five years, prices have gone up 20 percent, which itself is horrendous. But if you look at what ag input costs, it's closer to doubling.”

Farmers Need A Fair Deal

He noted input costs are higher across the board.

"You're talking about a combine, you're talking about a cotton picker, and you're talking about chemicals and seeds. The prices are sky-high, and the returns on the commodity side and on the selling side, when it comes to selling your crop, are not there," Vaden said.  "And so, we've got to take a look at seeing to it that farmers get a fair deal, that there are more people who are competing to sell them services, and we're keeping a close eye on large companies to make certain they're not abusing the market position.”

The Industry Needs To Change

Vaden added it’s time to look at fields differently than we have in the past.

“People pass by the cornfields on I-80, and they're probably thinking about food, but what they ought to be thinking is fuel," Vaden said.  "That's as much fuel as an oil well that you pass in Texas. Nebraska is leading the charge when it comes to biofuels. USDA is working hand in glove with the Environmental Protection Agency. I had lunch with my counterpart over there, and biofuels were on our agenda for that lunch. We're very happy with the RVO numbers that they have put out. We hope those will be finalized when the rulemaking proceeding is completed. We're very happy they're continuing the E15 waiver to allow for 15 percent ethanol to be put in cars. But we understand, because of court rulings, that a permanent solution to that can only come from Congress, and we are hopeful that Congress will act on that as soon as possible.”

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