As Wisconsin farm crisis continues, Fitz and other WisGOPs play games

Even when the news is good for farmers these days, the reason isn’t good news. Farmers are making more money this year, but it’s mostly because of help from Uncle Sam.

USDA currently projects farm income in 2019 to reach $88 billion – the highest net farm income since 2014’s $92 billion, but still 29% below 2013’s record high. In addition, nearly 40% of that income – some $33 billion in total -- is related to trade assistance, disaster assistance, the farm bill and insurance indemnities and has yet to be fully received by farmers and ranchers.

And that extra income isn’t making up for the debt that farmers had to take on to try to get through the hard times of the late 2010s.

Moreover, farm debt in 2019 is projected to be a record-high $416 billion, with $257 billion in real estate debt and $159 billion in non-real estate debt. The repayment terms on this debt, according to data from the Kansas City Federal Reserve, reached all-time highs for a variety of categories. All non-real estate loans saw an average maturity of 15.4 months, feeder livestock had an average maturity period of 13 months, other livestock had a maturity period of 18 months and other operating expenses, i.e., loans primarily for crop production expenses and the care of feeding livestock, had an average maturity period of 11.5 months – all record highs. Put simply, farmers are taking longer to service their debt – a trend made easier due to historically low interest rates.

Naturally, the added debt means that more farmers are going bankrupt. And Wisconsin has seen that outcome more than any other in America.

Total bankruptcies filed by state vary significantly, from no bankruptcies in some states to more than 20 filings in others, as shown in Figure 2. Bankruptcy filings were the highest in Wisconsin at 48 filings, followed by 37 filings in Georgia, Nebraska and Kansas. Iowa, Kansas, Maryland, Minnesota, Nebraska, New Hampshire, South Dakota, Wisconsin and West Virginia all experienced Chapter 12 bankruptcy filings at or above 10-year highs.

And it's not looking great for the near future either. The Baraboo News-Republic had this recent profile showing how corn and soybean farmers in Wisconsin are having major troubles in getting those crops harvested due to bad weather throughout 2019.

Columbia County Agricultural Extension Agent George Koepp said the weather this growing season has caused many difficulties for farmers in and around Columbia County from the beginning. Due to wet and cold spring conditions, initial planting was delayed, as was the growth throughout the season.

“We planted late, we didn’t get the growing season we would like, and now we have the snow,” said Koepp. “Wet conditions are not good for soybean or corn harvest. This snow really has the farmers sitting on pins and needles, and all they can do is wait.”

[North Freedom farmer Ron] Bula said a delayed harvest can create a difficult economic situation for many farmers.

“They are depressed. The weather is something they can’t control,” said Bula. “It just increased the amount of anxiety and frustration and depression in the farming community. The amount of risk and personal capital that goes into this is crazy. You’re literally mortgaging your home and everything you have to put that next crop in.”

So as the farm crisis continues, what is the Wisconsin GOP Senate Leader planning to do this week to deal with the ongoing farm crisis? Trying to fire Gov Evers’ Secretary of Agriculture!

In February, [nominee Brad] Pfaff cleared a Senate committee unanimously. But since then, he has clashed with GOP lawmakers on several issues. Last month, Fitzgerald told WisPolitics.com that his members “have concerns, real concerns that he’s not up to the job.”

“Senator Fitzgerald does not believe Pfaff has the votes to be confirmed,” Fitzgerald spokesman Alec Zimmerman said today.

But if you follow what Capitol insiders say, that’s not because there wouldn’t be 17 of 33 Senators that would approve of Pfaff. Instead, it’s because Fitz doesn’t have 17 Republicans that would approve. Very Mitch McConnell-like.

And the real reason behind Fitzgerald’s complaints has little to do with Pfaff’s competence, but because he hurt the fee-fees of Wisconsin’s version of Fitz and the Tantrums.

Fitzgerald also personally clashed with Pfaff after the secretary knocked the Joint Finance Committee for failing to release funding aimed at helping farmers struggling with mental health issues. He said the ag “community needs this funding, and they need it now — not when it’s convenient for legislative Republicans.” Fitzgerald at the time called the comments “offensive and unproductive.”

Zimmerman cited two other instances that have prompted concerns in the Senate GOP caucus. GOP state Rep. Joan Ballweg this summer knocked Pfaff for failing to turn over information she requested on farmer suicides for her work leading the Speaker’s Task Force on Suicide Prevention.

Also, state Sen. Steve Nass, R-Whitewater, has criticized DATCP for work on revising siting rules for livestock facilities amid the crisis in the dairy industry, raising fears it would lead to the closure of more farms.

Oh? The WisGOPs care more about allowing CAFOs to keep polluting and bending rules to their advantage than Wisconsin family farmers going bankrupt? Duly noted.

By the way, Pfaff has already decided to delay and reconsider those proposed new livestock facility rules, even though it would be the first change in those rules in 13 years. And even the Big Ag allies of many of these GOP legislators are saying Pfaff should be confirmed tomorrow.

Amid push for @widatcp Secretary Pfaff, various groups are weighing in with statements of support.

Wis Dairy Business Association says, "At this critical moment for Wisconsin’s dairy community, the right thing to do is to keep him in place."

— JR Ross (@jrrosswrites) November 4, 2019

Industry groups that support Pfaff are also contacting lawmakers, urging them to confirm him

Backers include Organic Valley, the Wisconsin Cheese Makers Association and the Wisconsin Agri-Business Association

— Scott Bauer (@sbauerAP) November 4, 2019

To Gov Evers’ credit, as of now he’s calling the bluff of the WisGOP Senate, and is telling them to give Pfaff an up-or-down vote tomorrow.

Senate Republicans’ intent to reject DATCP Sec. Pfaff’s nomination comes as Wisconsin’s agriculture and dairy crises worsen and trade tensions at the federal level continue to escalate. Between July 2018 and July 2019, Wisconsin lead the nation in family-farm bankruptcies. In 2018, Wisconsin lost nearly 700 dairy farms—almost two a day. Republicans’ anticipated vote to reject Sec. Pfaff’s appointment would leave Wisconsin’s leading agricultural agency without its head chief.

"It is astonishing that, in the middle of a dairy crisis and trade war, Republicans want to create even more uncertainty and instability by firing the leader of the agency charged with fighting for Wisconsin's farmers and rural communities,” said Gov. Evers.

You’d think that Republicans would want to work with Gov Evers’ office on ag policy to stabilize and improve the perilous situation that exists with many of their rural constituents. But apparently the desire to tie Evers’ hands whenever they can is more important to WisGOPs than actually doing anything to help small-town Wisconsinites.

Oh, but it's Democrats that don't care about rural Wisconsinites. Riiiight.