Photo by Logan Thomas May 3, 2023
www.gfb.org
Vol. 5 No. 9
BERRIEN COUNTY FARMER TESTIFIES IN HOUSE SUBCOMMITTEE HEARING The U.S. House Agriculture Subcommittee on General Farm Commodities, Risk Management, and Credit held a hearing on Tuesday, April 26, entitled “Producer Perspectives on the 2023 Farm Bill”. Representing the U.S. Peanut Federation was Daniel McMillan of Southern Grace Farms in Enigma. In McMillan’s testimony, he presented peanut priorities for the 2023 farm bill, namely an increase in the reference price for the Price Loss Coverage (PLC) Program. Over the last few years, peanut growers have seen a significant increase in the cost of production. The 2021 cost of production was $545.97 per ton, and the 2022 cost of production was approximately $668 per ton according to Dr. Stanley Fletcher of Abraham Baldwin Agricultural College and Professor Emeritus at the University of Georgia. McMillan outlined the financial stressors peanut growers are facing on the farm, stating: “In my home area, we saw fertilizer costs double from 2021 to 2022. Some products tripled in price. Currently, fertilizer prices are changing week to week preventing us from making informed management decisions. Commonly used fertilizers include diammonium phosphate (DAP), potash, and urea,” McMillan said. McMillan also noted the following: • Crop protectant prices remain high which can pressure farmers to look for cheaper options, sometimes to the detriment of the crop. • Labor costs continue to increase. “We use H2A workers and have seen a 14% increase in labor costs through the recent U.S. Department of Labor Adverse Effect Wage Rate (AEWR) changes,” he said. • Farmers are still facing cost increases and business disruptions resulting from problems with the supply chain. “This past week, we went to a local parts store to buy a bundle of small metal sweeps for a field cultivator,” McMillan said. “A simple wear part cost $2 each in 2021 but today is $6 each. This may not sound like much, but we are seeing this across hundreds of items totaling thousands of dollars in extra costs.” -continued on next page