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Gov. Dave Heineman, (R-Neb.), on U.S. farm profits despite the drought and efforts to pass the Farm Bill.
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Here US farmers said to enjoy their most profitable year in history despite experiencing.
The worst drought in over fifty years by the end of the year farm income.
Will reach more than 120 billion dollars which is writing a few questions on whether or not additional government -- is necessary joining us to discuss.
Governor Dave Heineman from Nebraska state that's been hard hit by the drought and clearly is important when it comes to -- Sarah.
Why this this difference I think in most people's minds drought means no money but basically why are we going to see record income on the farm this year.
Well -- depends on what state urea and part of its gonna be the the price you may get for your corn.
Some of it may be the crop insurance.
But it really does depend -- grab for example Nebraska half of our agriculture receipts come from livestock.
So they're very very concerned there input costs are up because the cost of energy relative to what they're doing.
The high price -- so again even within my state it varies from one region to another.
And when we talk about foreign policy formation -- you can't have that discussion without talking about the farm bill a trillion dollar five -- spending plan.
Still working its way through congress.
The critics of the legislation say we need and and I think here in favor of this any direct subsidies.
How does that play out I don't think anyone truly understands the -- but how would that play out.
For people on the farm today.
Well every day most farmers -- ranchers that I know don't want direct payments they wanted to come from the marketplace.
They do want -- -- the possibility of some insurance when they experience the challenges we face this year with mother nature but.
I don't know a single farmer and rancher who doesn't want that income to come from the marketplace we prefer that.
You know this is one of the riskiest businesses that you can be and because of mother nature you're never also quite sure what your input costs are going to be.
But by a large the edge sector's been very strong over the last few years it's one of the reasons Nebraska is faired fairly well spite of the national economic challenges.
So what's holding up the farm bill I mean if my ratings tank I don't get you know I TV industry subsidy needed to stay on air will -- why -- we just ending that.
Direct payments and other -- I believe in favor of ending the direct payments -- why is this legislation stalled.
Well I I think it's really politics at this stage the -- passed a bill that house go now the -- committee.
But for whatever reasons they're not moving forward is about -- it's about like every other bill in congress.
You know what's taking any action they're afraid to make tough decisions we need a farm bill now the other issue that comes into play.
80% of the farm bill most people don't know this really is the nutrition program -- -- food stamp program and there's a real question about the money being spent there.
I know that -- been proposals to cut food stamps can that be done without impacting -- hurting.
People who need that assistance and yet bring this farm legislation.
Into some kind of manageable budgetary control.
Well the key is or prioritizing.
The of this spending and make sure the most needy people -- get that.
Again you've got to find the right balance it's tough given the national economic climate again here -- Nebraska where much better off for unemployment rates of 4%.
The -- economy has been strong but some well the congress the president need to get together we do need a farm bill to provide certainty for the future.
You talk about certainly I was reading I guess that farmers gonna be planning winter -- the next couple weeks and they need that legislation in place to find out.
You know what kind of insurance they can purchase very quickly.
USDA expects food prices go up 4%.
Do you think there's any chance we can avert that for American -- You know I don't know for sure.
You know none of us -- seafood prices go up.
We want.
You know certainty in the marketplace for farmers.
And right now they just face a lot of challenges out there because like say in my entire state is in a severe drought.
Most parts of the state haven't had any moisture since the middle of may.
All right sir one last question totally off topic.
You're the first governor to endorse Mitt Romney -- speculation you might wind up.
With some kind of presidential appointment may be cabinet position and -- care to comment on that.
Well here's what I would say I know when you start thinking about that.
Whether it's a political -- contests or an athletic contest you get in trouble.
You've got to win first and then you can take care of the rest of it will deal with that -- -- day I -- no farmers are but I think they called like counting your chickens before they hatch and I don't think you are doing that.
I think you're exactly right on -- and have a good day sir and thank you for joining us.
Governor -- -- thank you Dave Heineman down at Republican National Convention in Tampa.
