07/06/06 Producers values

Producers Value Figures can be misleading. I think you all know that. I'm Jeff Keane; I'll be right back to talk about figures and value. Alan Guebert had an interesting article in the Western Livestock Reporter a short time ago. I don't always agree with Mr. Guebert but this was an article anyone who negotiates U.S. trade deals, formulates U.S. farm bills, or doesn't believe American producers contribute enough to the economy should read. Guebert reported figures cited by Ed Maixner, editor for Kiplinger Agricultural Letter. Mr. Maixner stated former Secretary of Agriculture, Ann Veneman always told people one in four acres of American farm production is exported and present Secretary, Mike Johanns likes to tell audiences that 27 percent of U.S. farm receipts come from exports. Maixner says those figures might be correct as far as volume goes but if figured as value received by farmers and ranchers the figure would be closer to eight percent returned to producers. The difference is the value added to a product after it leaves the farm or ranch. This added value is in transportation, processing, storage, interest, and I believe marketing. I have always said producers are the backbone of the U.S. economy. This article only shows the value of products that are exported. If we use these export volumes then another 75 percent of agricultural products are used in the United States adding to the economy at every step of the production chain. So, it looks like we need to keep producing to keep a whole lot of businesses productive no matter the cost to us. I'm Jeff Keane. Western Livestock Reporter 6/14/06