Dennis Sun: Work To Do
Columnist Dennis Sun reflects on agriculture issues as the year ends.
As I write this column on the morning of Dec. 7, Pearl Harbor Day, I reflect on the day the U.S. was attacked at Pearl Harbor in Hawaii. This attack changed the world as World War II erupted both in Europe and the Western Pacific.
I always reflect on Pearl Harbor Day, as my father was a P38 fighter pilot during the war – a war that ended with a nuclear bomb.
Lately, some world leaders are threatening to use these bombs against the U.S. again. These world leaders need to come to their senses and realize there would not be much left in parts of the world if nuclear bombs were used.
There are numerous issues facing agriculture that need closure in the next month.
Congress returns this week to hopefully deal with them as they are looking at a Dec. 20 deadline to approve a new funding resolution to keep the government operating, along with passing a disaster bill and a farm bill extension before the end of the year.
So far, they have just been kicking the can down the road as they can’t come to an agreement. At this time, some may be wanting to wait until the new administration gets settled in to reach an agreement on these issues.
Important to agriculture is the farm bill as a number of U.S. Department of Agriculture (USDA) programs expired at the end of September when the last extension officially ended, but there is an increased risk on Dec. 31 without Congressional action.
If Congress fails to get something passed on Jan 1, 2025, “permanent law” goes into effect, reverting back to commodity programs written into law in 1938 and 1949.
If this happens, dairy prices, corn, cotton, rice and wheat would end up with price supports much higher than 2024 market prices. Other commodities would not be affected by the permanent law.
Dairy prices would be the most affected under permanent law as USDA would be required to buy dairy products to help boost prices to mandated levels of 117 percent higher than the current all-milk price. At current prices – around $22.80 per hundredweight (cwt) – the mandated price for milk would jump to more than $49.43 per cwt.
This would drive all private buyers out of the market.
If this happens, the expense to the government and markets would jump higher as it would double milk prices at the grocery store.
On the public lands front, we hope to reverse the Greater sage grouse and Rock Springs management plans when the new administration takes over since these rules will be so damaging to multiple users. As it appears now, these plans will go into effect before the new administration takes over.
Many realize the current president is going to spend a lot of money and do a lot of damage before he leaves office. I just hope he doesn’t designate more wilderness on public lands in the West.
On a positive note, a federal judge recently blocked the rules for the Corporate Transparency Act, including the part where all businesses would have to provide their ownership information to the U.S. Treasury, and in another case, blocked a rule requiring farmers and ranchers to pay overtime to employees.
Hang on, the next couple of months are going to be interesting.
Dennis Sun is the publisher of the Wyoming Livestock Roundup, a weekly agriculture newspaper available online and in print. He can be reached at: Dennis@WYLR.net
