ONGOING CHALLENGES FOR STATE
FARMERS.
GOVERNOR TONY EVERS HAD SOME
CHOICE WORDS FOR U.S.
AGRICULTURE SECRETARY SONNY
PERDUE IN THE AFTERMATH OF
PERDUE'S VISIT TO WISCONSIN THIS
WEEK.
EVERS SAID THAT PERDUE KIND OF
PUT THE POX ON SMALL FARMING AND
AMERICA'S DAIRYLAND.
HE WAS REFERRING TO COMMENTS
PERDUE MADE IN MADISON SPEAKING
ABOUT THE SIZE OF FARMS
SURVIVING IN TODAY'S ECONOMY,
PERDUE SAID, QUOTE, BIG GET
BIGGER AND SMALL GO OUT.
"HERE AND NOW'S" ZAC SCHULTZ
CAUGHT UP WITH SECRETARY PERDUE
AFTER THE DAIRY EXPO APPEARANCE
AND ASKED HIM TO CLARIFY HIS
STATEMENT ABOUT THE DECLINE OF
SMALL FARMS, WHICH WAS SHUTTING
DOWN LAST YEAR AT A RATE OF TWO
PER DAY.
>> AGAIN, WHAT I SEE HAPPENING
NATIONALLY, A LOT OF THE SMALLER
DAIRIES ARE DOING VALUE-ADDED,
SOME OF THEIR OWN PROCESSING,
ICE CREAM OR OTHER TYPES OF
PRODUCTS AND THEY'RE BEING VERY
SUCCESSFUL.
THAT'S NOT FOR EVERYONE.
BUT IN DAIRY TODAY THE CAPITAL
INVESTMENT IS SO GREAT IT'S
PRETTY TOUGH OUT THERE.
I WILL NOTE THAT THE NEW FARM
BILL, 2018 FARM BILL, PROVIDES A
HOT OF HELP FOR SMALLER DAIRIES
THAT WERE NOT HELPED IN THE '14
FARM BILL.
THAT'S A BIG CHANGE.
I WOULD ASK THEM TO INVESTIGATE
THAT AND APPLY FOR THAT DAIRY
MARGIN COVERAGE PROGRAM AS WELL
AS THE FARM BUREAU INSURANCE
PROGRAM.
IT'S A RISK MANAGEMENT THAT
HELPS THEM REALLY HAVE A MINIMUM
PRICE FOR THEIR DAIRY PRODUCTS.
>> IN A STATE LIKE WISCONSIN,
THERE'S AN EMOTIONAL ATTACHMENT
TO SMALL FARMS.
FOR ECONOMIC REASONS DO WE NEED
TO PUT SOME OF THAT EMOTION
ASIDE, UNDERSTANDING SOME FALL
FARMS WILL HAVE TO GO AWAY?
>> THAT'S AN INTERESTING
QUESTION.
WHETHER IT'S FARMING OR ANY
OTHER SMALL BUSINESS, THERE'S NO
GUARANTEED SUCCESS RATE.
THAT'S UNFORTUNATE BECAUSE WE DO
HAVE A SENTIMENTAL ATTACHMENT TO
SMALL FAMILY FARMS.
IT'S JUST THAT THE ECONOMY OF
SCALE IN AGRICULTURE AND THE
ECONOMICS OF FARMING HAS BECOME
SO TIGHT IN RECENT YEARS THAT
IT'S VERY DIFFICULT TO MAKE
FARMING ON SMALL HERDS OR SMALL
ACREAGE THERE UNLESS YOU ARE A
HIGH-VALUE TYPE OF CROP.
AND MANY YOUNG FARMERS ARE
BEGINNING IN HIGH-VALUE TYPE
CROPS.
LAST WEEK I WAS IN MICHIGAN.
THREE-ACRE CUT FLOWER OPERATION.
THERE ARE WAYS TO GROW.
WE'RE ALSO SEEING A LOT OF
EFFORT IN THE DIRECT FARM TO
TABLE MOVEMENT IN THE HIGH VALUE
OF SPECIALTY CROPS THAT YOUNG
BEGINNING FARMERS ARE ACTIVE IN.
BUT THE COMMERCIAL IDEA OF
GETTING OUT HERE AND HAVING THE
FINANCES TO BUY 1,000 ACRES AND
DO COMMERCIAL SCALE FARMING IS
DIFFICULT THESE DAYS.
>> U.S. SECRETARY OF AGRICULTURE
SONNY PERDUE.
FOR REACTION TO HIS REMARKS AS
WELL AS HIS OWN APPROACH TO
SUSTAIN WISCONSIN FARMS, WE TURN
NOW TO STATE SECRETARY OF
AGRICULTURE DESIGNEE,
PUBLIC-PRIVATE.
THANKS-- BRAD PFAFF.THANKS FOR BEING HERE.
>> THANK YOU FOR HAVING ME.
>> SECRETARY PERDUE CAUSED SOME
CONSTERNATION THIS WEEK BY
SAYING FARMERS MAY HAVE TO GET
BIGGER TO SURVIVE.
HOW TRUE IS THAT?
>> WELL, WE'VE ALL HAD
ECONOMICS.
WE UNDERSTAND WHAT ECONOMY OF
SCALES MEAN.
BUT WE ALSO UNDERSTAND WHAT WE
HAVE HERE IN WISCONSIN.
WE HAVE THE WISCONSIN WAY.
OUR FARMS ARE NOT NENG NEW ENGLAND OR
CALIFORNIA.
OUR FARMS ARE CREATED HERE IN
WISCONSIN.
THEY'RE OF ALL SIZES, SHAPES AND
SCALES, TO BE HONEST WITH YOU.
WE ALSO HAVE A SYSTEM OF
AGRICULTURE IN THIS STATE HAYES THAT
IS BUILT UPON DIFFERENTIATION OF
PRODUCT, VALUE-ADDED.
WE CAN TAKE THE MILK THAT IS
PRODUCED IN THE COUNTRYSIDE HERE
AND MAKE IT INTO HIGH-QUALITY
CHEESES THAT ARE ENJOYED AROUND
THE WORLD.
THAT PROVIDES VALUE ALONG THE
SUPPLY CHAIN.
IT ALSO EMPLOYS PEOPLE NOT JUST
ON THE FARM, BUT ALSO WITHIN OUR
SMALL TOWNS AND YOU'RE AND OUR RURAL
COMMUNITIES.
ANYTIME SOMEBODY SAYS GET BIG OR
GET OUT, THAT DOESN'T SIT WELL
WITH OUR FAMILY FARMERS.
WE NEED TO BETTER UNDERSTAND
WHAT IS HAPPENING WITHIN THE
COUNTRYSIDE.
AND SO THERE IS PRESSURE ON THE
COUNTRYSIDE.
WE ALL RECOGNIZE THAT.
BUT RATHER THAN SAYING YOU
EITHER HAVE TO GET BIG OR GET
OUT, I THINK WE NEED TO LOOK AT
NEW WAYS IN WHICH WE CAN MAKE
SURE THAT WE CAN CONTINUE TO
KEEP OUR FARMS PROFITABLE GOING
FORWARD REGARDLESS OF THEIR SIZE
OR SCALE.
>> SPEAKING OF GLOBAL MARKETS,
HOW BADLY HAVE TRADE POLICIES
AFFECTED WISCONSIN FARMERS?
>> THEY DEFINITELY HAVE.
OUR FARMERS HAVE BEEN HIT WITH A
TRIPLE WHAMMY.
WE'VE HAD DIFFICULT WEATHER,
FIVE YEARS OF LOW PRICES AND
INTERNATIONAL TRADE UNCERTAINTY.
EVERYBODY'SBEING IMPACTED IN THE
RURAL COMMUNITIES WHEN WE DO NOT
HAVE MARKETS THAT ARE OPEN.
CHINA IS THE SECOND LARGEST
MARKET FOR WISCONSIN AGRICULTURE
PRODUCTS.
WE NEED TO FIND MORE MARKETS.
I AM HAPPY TO SAY IN 2018
WISCONSIN AGRICULTURE PRODUCTS
WERE SHIPPED TO AND ENJOYED BY
CONSUMERS IN OVER 200 COUNTRIES.
BUT WE NEED TO RECOGNIZE WHAT
HAPPENS WHEN ONE OF THE LARGEST
TRADING PARTNERS ALL OF A SUDDEN
THEIR MARKET SAYS NO MORE, WE
DON'T WANT YOUR PRODUCT, WHAT
ARE WE GOING TO DO.
AND THAT HAS HAD A DAMPENING
EFFECT ON OUR FARMERS AND
RESIDENTS.
>> LET'S TAKE ANOTHER LISTEN TO
SECRETARY PERDUE ON THIS MATTER.
>> PRESIDENT TRUMP HAS BEEN VERY
GENEROUS LAST YEAR AND THIS YEAR
WITH $12 BILLION AND $16 BILLION
TRYING TO TIDE US THROUGH THESE
TRADE DISRUPTIONS.
BUT LET'S NOT COUNT ON THAT.
EVERY FARMER WOULD RATHER HAVE A
GOOD CROP AT A GOOD PRICE THAN A
GOVERNMENT CHECK AND LET'S PLAN
ON THAT.
IT MAY BE A TIME WHERE WE DON'T
HAVE THE OPTIMUM PROFITABILITY
WE WOULD LIKE.
WE HAVE TO SETTLE FOR JUST ABLE
TO DO IT NEXT YEAR.
PLAN FOR THE MARKET JUST LIKE
THEY ALWAYS HAVE AND IF NOTHING
HAPPENS IN TRADE, MAYBE WE CAN
SEE SOME HELP IN THE FUTURE AS
WELL.
>> WHAT CAN YOU TELL US ABOUT
THE BILLIONS OF DOLLARS OF
DIRECT AID AND HOW THEY HAVE
REACHED AND HELPED WISCONSIN
FARMERS?
>> WELL, FIRST OF ALL, THE
FEDERAL TAXPAYERS HAVE PROVIDED
$28 BILLION WORTH OF TRADE
ASSISTANCE TO OUR FAMILY
FARMERS.
THERE'S NOT A FARMER THAT I KNOW
THAT WOULD NOT RATHER SELL THEIR
PRODUCT THAN RECEIVE GOVERNMENT
AID.
NOW, WE APPRECIATE THE
ASSISTANCE THAT THE FEDERAL
TAXPAYERS HAVE PROVIDED, BUT
THESE FARMERS DID NOT ASK FOR
THIS.
FARMERS WANT TO BE ABLE TO SELL
THEIR PRODUCT.
WE UNDERSTAND THAT THERE'S
GLOBAL ECONOMIC PRESSURES TAKING
PLACE.
WE RECOGNIZE THE FACT THAT WE
NEED TO HAVE A PARTNERSHIP AND A
TRADING RELATIONSHIP WITH
COUNTRIES THAT IS FAIR AND BALD.
-- BALANCED.
CHINA HAS NOT BEEN FAIR WITH
WHAT IS HAPPENING HERE.
BUT WHY?
AND I STILL ASK THIS QUESTION.
I HAVEN'T GOT AN ANSWER.
WE UNDERSTAND THE FACT THAT
CHINA AND TECHNOLOGY AND THEY'VE
BEEN TAKING AMERICAN TECHNOLOGY
AND THEY NEED TO BE HELD
RESPONSIBLE FOR THAT.
BUT WHY ARE OUR FAMILY FARMERS
IN WISCONSIN BEING HELD
RESPONSIBLE FOR THAT?
LET'S ADDRESS THE ISSUE THAT'S
TAKING PLACE WITH CHINA.
AND I WILL ALSO SAY THIS.
WHY IS AMERICA DOING THIS ALONE?
LET'S DO IT WITH OUR PARTNERS,
MAY THEY BE IN EUROPE OR
ELSEWHERE IN THE COUNTRY,
BECAUSE WHAT'S HAPPENING IS
CHINA IS STILL BUYING
AGRICULTURE PRODUCTS.
THEY'RE JUST BUYING IT FROM
OTHER COUNTRIES.
AND SO WE NEED TO ADDRESS THE
CHINA SITUATION.
BUT THE THING IS IS RIGHT NOW
THE AMERICAN FARMERS AND THE
WISCONSIN FARMERS ARE PAYING THE
PRICE FOR THIS.
>> HOW FAR DOWN DID THOSE
BILLIONS OF DOLLARS GO TO THE
REACH OF MAYBE SMALL FARMERS IN
WISCONSIN?
>> WELL, IT HAS BEEN BASED UPON
YOUR PRODUCTION HISTORY.
SO AGAIN IT'S BASED UPON HOW
MUCH CORN OTHER SOYBEANS YOU
GROW OR HOW MUCH MILK YOU
PRODUCE.
AGAIN, IT IS CAPPED AT A LEVEL.
SO IF YOU'RE A VERY LARGE FARM,
YOU WILL ONLY RECEIVE A CERTAIN
AMOUNT OF MONEY.
BUT THE REST OF THE -- IF YOU'RE
A SMALLER SCALE FARM, IT WILL BE
BASED UPON YOUR PRODUCTION
HISTORY.
AND SO, AGAIN, THE ASSISTANCE IS
APPRECIATED, BUT, AGAIN, MUCH
RATHER SELL TO THE MARKETPLACE.
>> CAN WISCONSIN RECOVER FROM
LOST GLOBAL MARKETS?
>> WE CAN, AND WE WILL CONTINUE
TO FIND NEW MARKETS.
THIS IS A GROWING WORLD, AND
IT'S A PROTEIN-HUNGRY WORLD.
PEOPLE WANT A PROTEIN DIET.
WE ARE A PROCEED-RICH PROTEIN-RICH STATE.
WE HAVE TO BUILD UPON THE
SUCCESSES THAT WE HAVE.
WE NEED TO IMPROVE OUR
LOGISTICS.
WE NEED TO IMPROVE OUR SUPPLY
CHAIN.
WE NEED TO CONTINUE TO INVEST IN
OUR FARMERS BUT ALSO WITHIN OUR
PROCESSORS AND THE ENTIRE SUPPLY
CHAIN TO BE ABLE TO CONTINUE TO
FEED THE WORLD.
>> THERE IS SOME GOOD NEWS.
IT APPEARS THAT MILK PRICES SEEM
TO BE IN RECOVERY.
IF FARMS AROUND THE PRECIPICE OF
GOING UNDER, WILL THIS HELP
THEM?
>> IT WILL.
BUT WE NEED TO MAKE SURE WE
BUILD FOR THE FUTURE.
WE WANT A WISCONSIN AGRICULTURE
THAT IS SUSTAINABLE.
THERE'S THREE IMPORTANT TEN TENETS.
IT HAS TO BE CONSERVATION
SUSTAINABLE.
WE NEED TO BUILD UPON THE
TRADITION THAT'S SUSTAINABLE.
AGRICULTURE IS WHO WE ARE.
IT'S ON OUR LICENSE PLATES.
WE'RE AMERICA'S