Schafer: Ag Sector Will Stay Strong

The U.S. ag sector was well poised to face the global financial crisis as farmers have managed their debts well and will see continued strong demand for their produce, U.S. Agriculture Secretary Ed Schafer said. In an interview with Reuters, the USDA’s top official said the agriculture credit situation is in good shape.

External trade would be crucial to minimize the severity of the economic downturn, Schafer said, but he was concerned isolationists in the newly elected Congress would push for a more protectionist approach.

"If we're going to suffer through the economic doldrums, we need to do everything we can to increase (economic activity) and certainly trade has been proven in the past to be able to do that," he said, adding trade generated 40 percent of U.S. GDP last year.

Reuters reports that priorities for Schafer’s successor in the next government were the implementation of the 2008 farm bill and working more closely with the energy department.

USDA is part-way through implementation of the 2008 farm law but some key decisions have yet to be taken, including how high to set the benchmark for a new revenue-guarantee program and how to tighten rules on farm subsidies. ❖