STATEMENT
of the
Honorable Nydia M. Velázquez, Chairwoman
House Committee on Small Business
Hearing on Family Farmer and Rural Small Business Priorities for the 2007 Farm Bill
June 7, 2007

Given that 90 percent of rural businesses are small, the committee has a vested interest in agricultural and rural development issues.  Today, we will hear from key agriculture industry representatives as they outline their small business priorities for the upcoming Congress.  

This is a timely hearing as the House Agriculture Subcommittees continue marking up various titles of the 2007 Farm Bill this week.  The committee will look at what can be done to assist these farmers and related industries with competing and surviving in a global economy.

The goal is to ensure small businesses in rural areas have the tools necessary to succeed.  This includes an examination of the challenges facing the nearly 2 million family farmers, but it also goes beyond that.   Countless other small businesses are indirectly impacted by the agriculture economy, including most rural businesses, grocery stores, food export companies, food processing plants, and restaurants.

It is clear that small businesses in agriculture and rural America are facing many obstacles.  Their bottom lines are affected every time livestock and commodity markets fluctuate, there is a lack of rain, or energy prices rise.  In spite of these barriers, the family farmer has been able to respond and continue to grow.

Our rural economy has shown an ability to adapt and change with the development of new technologies.  They have created opportunities by adding different uses for their products.  From investing in renewable energy to identifying foreign markets for their products, family farmers have been resilient and local economies have benefited from it.

Continued success depends not only on the existence of various farm support programs, but also on furthering rural development.  Many rural areas continue to lack the basic infrastructure to market and sell their products.  For example, we need to provide better access to broadband and ensure there are affordable transportation options, such as rail.  And, if there are changes to our immigration policies, they must address worker shortages in the agriculture industry.    

While tackling these problems can come with a cost, having a vibrant agricultural community is sound economic policy.  Whether it be creating new and improved programs or maintaining existing ones, we must do what it takes to ensure family farmers and small businesses in these areas are thriving.

Agriculture related issues affect every member’s district.  While it may seem that there is no connection between feed prices in Illinois and the price of beef in New York, the economics show otherwise.  American agriculture and farmers have an impact on those in urban districts and rural districts alike. 

The priorities presented today will be used by the committee as it formulates ways to improve the economic environment for rural small businesses. I look forward to hearing about what policies have been successful and if there are additional reforms needed to ensure future growth.  The success of small companies in this sector can serve as a model for other industries.