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Subcommittee Examines Factors Impacting Cost of Production

Washington, D.C. - Today, Rep. Rodney Davis (IL-13), Chairman of the House Agriculture Committee’s Subcommittee on Biotechnology, Horticulture, and Research, held a hearing to highlight the positive and negative factors impacting cost of production. This is the third hearing in the series Focus on the Farm Economy, where each of the six subcommittees will examine the state of the farm economy from the perspective of the subcommittee. Members heard from witnesses who provided insight into different programs and policies impacting farm efficiency, productivity, and profitability.

“The cost of production to America’s farmers and ranchers is impacted by many factors ranging from market price and land values to government policies and regulations. According to our witness from Illinois, Mr. Guebert, his input costs this year, excluding land, will be more than four times what they were in 1985. With this in mind and the recent collapse in net farm income, farmers and ranchers will need every tool available to them to minimize cost of production. Our government agencies need to stop implementing burdensome policies and regulations, which threaten the farm economy and pose challenges for producers and processors with little evidence of added benefit to food safety or production,” said Subcommittee Chairman Rodney Davis.

“Under these current conditions in farm country, farmers and ranchers need to have confidence in our government agencies and the rule making process. While there are great government programs in place such as the research and marketing programs within the Department of Agriculture that assist rural America, we have seen numerous policies put in place that negatively impact farmers’ and ranchers’ ability to produce food and fiber in an economically feasible manner. As a committee, we will work to make sure all policies enacted on farmers and ranchers do not inhibit their ability to continue producing the safest, most abundant, and affordable food supply in the world," said Agriculture Committee Chairman K. Michael Conaway.