May 15, 2008

Farm Bureau: Food fix needs to be comprehensive

WASHINGTON—The nation’s largest agricultural organization last week said there is no short-term fix for the complex global food situation.

In a statement on global food prices submitted to Congress, the American Farm Bureau Federation said there are many factors causing an increase in food prices, among them escalating energy prices, demand and weather. It also said the overall food price issue “is global and requires global solutions.”

AFBF cited a February 2008 report by the United Nations’ Food and Agriculture Organization that identifies the rising cost of energy; increased worldwide demand; weather impacts on crop production; lower stocks levels; the production of biofuels; and the operation of financial markets as part of the current global food situation. Their cumulative effect is world price increases of 80 percent for some products since 2008.

Domestically, said AFBF, the spiraling cost of crude oil is having a major impact on production costs for farmers, ranchers and the entire food production chain. “Action must be taken to reduce our reliance on foreign sources of oil,” the statement said. “Development of domestic oil and gas reserves, a continued commitment to biofuels and development of renewable resources must be part of the solution.”

The organization also said other remedies are needed, such as investments in agricultural research and infrastructure, which play a critical role in increasing agricultural production. Globally, AFBF said, countries should be discouraged from placing embargos on exports, which only result in escalating prices.

Short-term solutions, such as food aid, agricultural assistance and efforts to calm markets, could help, the statement said. However, “the situation we face today has been building over a long period. It will not be resolved by politically expedient solutions but must be addressed in a thoughtful and comprehensive manner.”

Contact Tracy Taylor Grondine, 202-406-3642, or Anne Keller, 202-406-3659, AFBF public relations.