Stenholm Talks Ag, Economic
Policy At TS&GRA Convention

KERRVILLE – Congressman Charlie Stenholm foresees agriculture and rural America losing even more clout in coming years and believes that organization is one way to leverage what political strength remains.

One of the keynote speakers at the recent Texas Sheep and Goat Raisers’ Association annual convention here, Stenholm applauded TS&GRA members for the work they’ve done over the last few years to get their industry back on track. He encouraged them to continue to do more, to continue to pull together as an industry and not become complacent.

"Redistricting was not kind to rural Texas," he told association members. "In the future, those we elect to represent rural America are going to have a much more difficult time from the standpoint that there are not many of us left in rural America."

He made a point to thank state representatives Bob Turner and Rob Junell for their many years of service in the Texas legislature.

"Bob Turner is one of those losses that rural America has not yet fully come to appreciate," Stenholm said, "and I’d be remiss if I didn’t say something about Rob Junell. Having the chairman of the appropriations committee is rather nice."

Stenholm focused many of his comments on the need for sheep and goat raisers to continue to help themselves. Referring to San Angelo’s producer-owned lamb packing plant, Ranchers’ Lamb of Texas, as the "poster child of the sheep and goat industry," the Congressman said the industry has not yet scratched the surface in this endeavor.

"We do a good job of raising a lot of crops and animals, but selling them and more importantly, marketing them, is where we have been very, very lax. And, if there is to be a future for this industry or any other agriculture operations, it’s going to be because we, who decide to be survivors, are going to do a better job of marketing that product which we raise."

Like other speakers before him, Stenholm encouraged TS&GRA members to give back to their state and national organizations. Referring to comments made by Layton Black during the banquet the previous evening, Stenholm encouraged producers to work with and listen to others who don’t necessarily agree or side with the majority.

"Every community has what Layton referred to as the ‘smart table’ — those who gather at the coffee shop every morning to solve all the problems our country has every day, some problems that we didn’t even know we had until they solved them.

"Leaders like you all are going to need to spend a little bit more time at the smart table talking to those who continue to challenge things like our checkoff programs.

"I respect those who say they don’t want anything from the government," Stenholm continued, "those who truly mean it, but there are also those who say that who turn around and accept checks from the government.

"Those who intend to survive," Stenholm stressed, "must learn to play in the world as it is, not as they wish it to be."

Partisanship, the Congressman said, is not a luxury that agriculture can afford.

"We’re a minority voice. There are less than two million of us left, of which 500,000 produce 85 percent of all of the food and fiber. Five hundred thousand out of 280 million is not a very powerful political force unless you choose to operate smartly."

Acting through associations, he said, is an example of acting smart.
"We didn’t get the necessary votes for the farm bill, for example, by accident."

Texas, he noted, is fortunate to have both the chairman and the ranking member of the House Agriculture Committee. Stenholm is ranking minority member and the committee chairman is Republican Larry Combest. It’s only the second congress in the history of the country in which that has happened, Stenholm pointed out.

"We realize that we have to pay attention to urban needs, to what the consumers of America want, but I also make the point on a regular basis that everyone who eats is involved with agriculture.

"We all want what we now have and what we take for granted, which is the most abundant, safest, best quality, lowest cost food supply in the world," he continued. "As I talk to other Congressman I explain to them that this doesn’t happen by accident and that farm programs are important because of that."

Stenholm also acknowledged some of the political difficulties he’s had because of his support of free trade policies.

"I was supportive of NAFTA; still am. I’ve been supportive of trade promotion authority. I wanted to give it to President Clinton; I want to give it to President Bush. We need it so that this administration can go to the WTO and negotiate a better set of rules and regulations for agriculture, because all the bad things that are happening to the sheep and goat industry, all the bad things that are happening in world trade, have been happening without us being at the negotiating table," Stenholm stressed.

"I listened to the Australian ambassador when he came in complaining about our new farm bill. Then I reminded him that he, too, has a tremendous subsidy. The Australian dollar is worth 55 percent of the U.S. dollar. Australia has a 45 percent subsidy through the value of currency. I asked him, ‘How do you expect my lamb producers, my goat producers, my beef producers my cotton producers to compete when your currency is so cheap?’

"A turnrow separates a wheat grower in North Dakota from a wheat grower in Canada," he continued. "That Canadian producer has again a 40 percent advantage on the strength of the Canadian dollar. We can’t compete with that. That’s not a level playing field. It’s one of the ways I justify subsidization," he told listeners.

On the matter of country of origin labeling, Stenholm has also had to face up to some angry constituents.

"I pray that the sheep industry is right, that we’re going to be able to make this work, but get ready for individual animal identification to come right back to the farm once we start with country of origin labeling. Maybe it’s what we’ll have to do anyway to satisfy the consumer.

"Don’t believe for half a second that country of origin labeling is going to be a plus for us from the standpoint that the U.S. consumer would always rather buy U.S. than brand "X", because they don’t and they won’t," he added.

Stenholm touched on industry consolidation and the need to find new consumer-friendly products, products that would meet the needs of giants like Wal-Mart.

"I never dreamed that Wal-Mart would become the biggest grocery store in the world. I thought Wal-Mart sold tennis shoes, not food.

"I’m not sure that this bigness is all it’s cracked up to be," he added. "I’m not sure that all these mergers and consolidations have been good for the country."

Along that vein he turned his attention to the capital gains tax.

"I’ve always believed that if you wanted to cut the capital gains tax, have a zero capital gains tax on anyone who invests in land or any business or stock, who keeps it for 15 to 20 years. I have never understood why we are under constant pressure to cut capital gains for six-month investments," Stenholm commented.

The politician said many constituents of his are angry at him for voting against the total repeal of the estate tax.

"What I voted for was the complete elimination of estate taxes on all estates of $3 million on a single person and $6 million on a married couple, effective retroactive to January 1 of this year. That’s what I’m for. Yet business group after business group has scored me down for wanting to do that instead of having it effective in 2009 and repealing it for everyone in 2011."

Stenholm noted that exempting $6 million estates would have taken care of 98 percent of all small businesses in the state of Texas immediately. He said he didn’t support total repeal of estate taxes for everyone because it would have included those people who benefit from market manipulation, specifically the sports profession.

The Congressman briefly focused on some of the other political issues facing the nation. He pledged support for the Homeland Protection Act while admitting he had some misgivings about creating another new bureaucracy.

"I wonder how we can do a good job in a short period of time, and I wonder about the expenditure of funds, but it’s something we have to do," Stenholm acknowledged.

He talked about the stock market and the sad truth that Americans are now learning about some of the giant corporations which have not been playing by the rules.

He also outlined the Democratic party view on tax cuts.

"Does it really make sense for us to continue to cut taxes when in one year we’ve gone from a projected $5 trillion surplus to a $325 billion deficit? Is that good policy?" he asked.