12/30/08 2008 In Review

2008 In Review. I'm Greg Martin with today's Line On Agriculture. 2008 was a big year for agriculture in a number of ways. To begin the year former North Dakota Governor Ed Schafer became the 29th USDA Secretary taking over from Mike Johanns who resigned in September 2007. Under Secretary Chuck Conner filled in until Schafer was confirmed. The first part of the year was spent trying to play catch up for the 2007 Farm Bill which officially became the 2008 Farm Bill in May. Not everyone was instantly happy. Oregon's Congressman Greg Walden said it worked well for northwest specialty crops. WALDEN: I think this is a farm bill that everyone could pick little pieces apart at and it's not the way any particular sector would write it but overall it does some good things for the northwest. I especially believe we have fixed some of the grain issues. I also believe that the investment in ag research is so essential for our specialty crop growers. The energy issues came to a head in 2008 as fuel prices went from an irritation to downright painful as the price of a barrel of oil hit all time record highs and gasoline became a precious commodity at over $5 a gallon in some areas. President Bush lifted a ban on off-shore oil drilling. BUSH: We should expand oil production by tapping into the extraordinary potential of oil shale. Oil shale is a type of rock that can produce oil when exposed to heat or other processes. One major deposit in the Rocky Mountain West alone could, if fully recovered, equal more than a century's worth of imports at current levels. Corn based ethanol was both the Belle of the Ball and the evil stepsister depending on who you talked to. The new Ag Secretary reiterated that it was the way out of high oil prices. SCHAFER: Really this is a consistent administrative policy and direction and I was pleased the President pointed out the fact that the corn prices are under pressure right now, the pathway is to cellulosic ethanol. But as I mentioned, a lot of people pointed the finger at corn ethanol for the rise in food prices a point that the National Corn Growers Association's President Ron Litterer said that they're ignoring several key facts. LITTERER: Only about 20% of the food dollar actually goes back to the farmer and so the amount of the food cost increases are more determined by energy costs, labor costs and other costs excluding what the farmer receives. More on ag in 2008 tomorrow. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.