1. Iowa’s Reliance 1999- 2003 Net Farm Income Five Year Avg. –$2.049 Billion

2. Craig Hill, Vice President, Iowa Farm Bureau Federation Supporting Rural Communities Prepared for the IPC Seminar “The 2007 Farm Bill Debate: Domestic and International Imperatives” May 24, 2005

3. Iowa’s Reliance 1999- 2003 Net Farm Income Five Year Avg. –$2.049 Billion Government Payments Five Year Avg. –$1.624 Billion

4. Iowa’s Reliance 1999- 2003 = 80% Net Farm Income Five Year Avg. –$2.049 Billion Government Payments Five Year Avg. –$1.624 Billion

5. Iowa’s Reliance 1994-1998 Net Farm Income Five Year Avg. –$2.910 Billion

6. Iowa’s Reliance 1994-1998 Net Farm Income Five Year Avg. –$2.910 Billion Government Payments Five Year Avg. –$777 Million

7. Iowa’s Reliance 1994-1998 = 27% Net Farm Income Five Year Avg. –$2.910 Billion Government Payments Five Year Avg. –$777 Million

9. How Many Farms Does It Take? Value of Ag Output - $200 Billion 30,495 Farms 50% 0% 10% 389 Farms 100% 2,000,000 Farms 25% 3,201 Farms 34,085 Farms

10. (14% of Farms)(40% of Farms) (20% of Farms)(16% of Farms)

11. Farm Income (2002) 82% of all farm family income comes from off- farm sources Only 7% of farms get all income from the farm For 70% of farms 75% or more of income comes from off-farm income 30% of very large farms received more than 75% of income from off-farm

12. Rural Communities are less dependent on farms than farms are dependent on communities.

13. Trade For American agriculture to be profitable, international trade is vital. Our goal is to dismantle all barriers to trade and trade distorting incentives. However, the United States will not do so unilaterally.

14. U.S. Agricultural Exports Account for 75 million of the Total 300 million Harvested Acres

15. Projected Government Spending Average $93 Billion Increase Per Year

16. Conclusion Time is now to reach for the best farm policy not just the familiar one.