01/04/06 Farm challenges for 2006

01/04/06 Farm challenges for 2006

Now that the New Year is four days old, there has been some speculation just how will agriculture fair in 2006, and what challenges it will face to make this year a successful one for ag in general. Now despite the challenges that became obvious in 2005 from a variety of areas, U.S.D.A. Chief Economist Keith Collins says one thing ag does have as an advantage as the New Year starts out is "big mo'", momentum, from a fiscal standpoint. COLLINS: The agricultural community will go into 2006 having had two back to back cash flow years. Farm debt compared to assets is also in good balance according to Collins. But then there are all those challenges. COLLINS: Never the less, we're going to face a little more pressure in crop markets because of higher stocks, lower market prices, and higher input costs mainly due to higher interest energy and higher labor costs. There are some potential bright spots though. The most noticeable one is the livestock markets, especially with recent developments. COLLINS: I think we are going to continue to see a very strong and a very prosperous livestock sector again in 2006, just like in 2005, with an additional benefit being the opening of Asian markets giving a little more boost in 2006. Japan recently opened its market to U.S. beef product from cattle twenty months of age or younger. But U.S.D.A. Secretary Mike Johanns says the challenge in 2006 will be reopening additional markets. JOHANNS: We still have some markets out there that we want to see open soon. South Korea, Singapore, China, Hong Kong. But I believe that we are making progress in those areas, but normalization of beef trade will continue to be a priority. And Johanns adds a personal challenge for him will be continued work to lift the current ban on cattle thirty months of age and older from Canada so all cattle from that nation can come in to our country. Secretary Johanns, what other priorities do you see for your agency this New Year? JOHANNS: Avian influenza's a priority and I'd doubt that there'd be many weeks where there aren't stories about avian influenza. And then the National Animal I.D. System, in addition to a whole hosts of other things we'll be doing around here, those would be the things that I can identify that are just real obvious priorities as we head into 2006. The list of whole host of other things Johanns eluded to include the shape of the 2007 Farm Bill and how it will apply to all of agriculture.
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