New Illinois Farm Bureau President Philip Nelson said one reason he unseated previous organization head Brian Duncan was a legal dispute with the American Farm Bureau Federation [AFBF].
The controversy is over the Illinois Farm Bureau's decision to end a requirement that Country Financial insurance policy holders be members of the Farm Bureau. The AFBF objected to the loss of revenue in shared dues and threatened to expel the Illinois Farm Bureau from the federation. About a year ago, the Illinois Farm Bureau filed a lawsuit to stop that action.
Nelson, who farms near Seneca, said resolving those issues is a priority.
"I think I need to hear their side of it first. I think the first step is sitting down across the table and talking and seeing where we're at and then we'll go from there," said Nelson.
Nelson also pledged to improve communication with other industry groups, adding the advocacy group had lost some credibility in Washington and Springfield.
"Our organization introduced an estate bill for reform and at the same time a commodity group introduced one. And I heard it from both sides of the aisle, you know, agriculture has to get their act together," said Nelson.
Nelson said since his election, he has been surprised by the number of lawmakers who have reached out to say they want to improve the working relationship.
He said other priorities involve young farmers and the Farm Bureau board.
“I'd like to empower the board of directors more, so they're better engaged on the issues and the decisions that are made,” said Nelson. “I'd like to energize the young leaders of our organization. They're our present, but they're also our future. And if we're going to restore credibility in this organization, they've got to be a part of it.”
This is Nelson’s second stint as Farm Bureau president. He has also served on the AFBF board and directed the Illinois Department of Agriculture.
Ag sector unprofitability
AFBF president Zippy Duvall has estimated farm losses at $35 billion this year. Nelson said you can't blame tariffs for all of that.
Yes, trade disputes with Illinois’ chief ag export partners China, Canada, Mexico, and with other countries are hurting markets for corn and soybeans. And the administration's actions on beef from Argentina have hurt, too.
Nelson said non-functional markets in the fertilizer and seed industries mean farmers are paying more to produce at the same time they have fewer places to sell.
"You got four seed companies that control about 80% of the seed market. You got four meat packers that control over 80% of the meat-packing capacity. And you got about four fertilizer companies that do about 80% of the business worldwide," he said.
Nelson said agriculture producers are getting prices for crops and animals that are the same as 1974, after adjusting for inflation. Yet input costs have quadrupled.
"I know Congress is looking at that. I think we need to continue to look at that to have better transparency in those markets so that they work, and they don't just get set by the big four, you know, take it or leave it," he said, adding the only input price that has gone down is the cost of diesel fuel.
Nelson said he's also hearing from a number of farmers who are having trouble accessing credit for the spring because of industry unprofitability.
He said some farmers are choosing to reduce fertilizer use for next year and finding other ways to “sharpen the pencil,” and cut operational costs.
