YEAR

REP LARRY ComBest

Ag Secretary Dan Glickman
US Dept. of Agriculture
Washington, D.C.

Dear Sir:

One common ingredient evident in today's FARM CRISIS which was also very pronounced in the 80'S ag turmoil is the human EGO! Years past the government saw fit to forgive large debts of some of the farm operators in the interest of family farms. Each community has some of these individuals while a substantial majority swallowed the bitter pill and PAID their bills and taxes. Many of these individuals had BIG ASPIRATIONS and bloated ego's. Society paid their bills then-today family farms every where again compete with these individuals that drive rents and farm prices up again. Much of agriculture's problems are somewhat self inflicted- many are inflicted with GREED. Why does one family need 500 acres to survive and another desire 5000 acres or more. Bottom line- Greed.

Then to observe these mega operators in action! Talk about environmental hazards. Spring starts last fall with a Questionable application of anhydrous ammonia, then spring arrives with a wall to wall chemical application 'cause they ain't got time to band. Then an early start into fall harvest with high moisture content and a significant crop drying expense.

The acres these individuals consume each year would certainly assist many true family farms!

The continued expansion of many of these operators centers around tax deferments and milking government payments. Lifting the payment cap only allows these show-boaters more food for the ego!

Corporate America has and is giving the large producers an edge with their discount and volume purchase sales programs. This includes

chemicals, fertilizer, seed and machinery. We asked a year ago why Pioneer Seed was selling seed for less in South America. Now more recently it is acknowledged Round-Up beans are $10 per acre less than the US------ This is SIGNIFICANT.

This $10 is;

-20% more profit if you net $50 per acre.

-being able to have the same profit from 800 acres as one would from 1000 acres

So why does the government aggravate the situation by lifting payment limitations that allow the large producer even more desire to crush the

smaller operator? I see the Justice Department concluded Microsoft used predatory practices- is there much difference in the perpetuation of large farms?

Five recent farm purchases included- an outstate investor, two born again ego-mongers from the 80's, the 75 rear old owner of the local bank who desperately doesn't need the farm, and a mail carrier that won the lottery and wanted to negate some tax expense. All purchased while ag prices were at their lowest levels in decades. A refreshing look at agricultures's future-huh? Recent disaster programs likewise have some major problems. The '93 floods in Iowa are another disastrous example of government money gone bad. Five adjoining farms- all absentee owned- plowed their crops under and received substantial government payments. My dad on the SE side of these farms and myself on the NW side of these farms grew 93-105 bushel corn. Does the government spawn bad management?

I read of the distribution of government payments and it is clearly recognizable that a few enjoy in the bulk of the money. I thought we had a democracy- put the money into the majority of hands.

One final thought, taxes and the disproportionate share of the cost the farmers provide. The banker in town on our last $6 million school projectwas assessed $60 per year for this while the average Iowa farmer that year was 342 acres and would have been assessed $342. Now the average Iowa farmer that year [92] earned $23000 while the banker made somewhat MORE. Does that sound FAIR!

I live in a county that has lost 20% of it's population in the last 30 years. The average age is over 40, and first year school enrollment is

approximately 1⁄2 what it once was! Today the number of government jobs nearly equals the number of manufacturing jobs. [710-970] I would venture to GUESS however that if the salaries and perks were tallied the government jobs have a higher monetary value than do the manufacturing jobs. There are just too few left [non-gov] wage earners to support the infrastructure. When one suggests they support the family farmer let us be sure they mean it! We need a payment cap that is bullet-proof.

Sincerely,

Doug Havig

3751 March Ave.
Osage, Iowa 50461

cc; Rep Larry Combest