Nebraska’s five-member congressional delegation briefs business leaders

U.S. Sen. Deb Fischer, R-Neb, addresses a business forum in Ashland as, from left, Sen. Pete Ricketts, Rep. Adrian Smith, Rep. Mike Flood and Rep. Don Bacon listen. (Aaron Sanderford/Nebraska Examiner)

ASHLAND, Nebraska — The five members of Nebraska’s congressional delegation briefed more than 300 of the state’s business leaders Thursday and included a warning about some economic clouds brewing over agriculture.

U.S. Rep. Mike Flood of Norfolk, R-Neb., speaking at an annual event held at the Strategic Air Command & Space Museum , warned the state and local chambers of commerce from Lincoln and Omaha about the budget risks to businesses and the State of Nebraska from continued lower prices for corn and soybeans.

He said he’s hearing from 1st Congressional District co-op leaders and people who sell irrigation equipment, tractors and other ag equipment and trucks that sales are slipping. That’s often a sign of a down cycle, he said.

‘Sobering report’

Flood pointed to a “sobering report” this month from the Federal Reserve Bank of Kansas City that indicated economists and bankers in Nebraska and Iowa are predicting lower farm income this year and higher lines of credit.

He said the Nebraska Legislature is likely to face its first experience since he was serving as a state senator and speaker in dealing with declining state tax receipts because of tough times in ag country.

Flood and U.S. Sen. Pete Ricketts of Omaha said all of Nebraska feels it when ag has a tough year, because so much of the state’s economy is boosted by the production and sales of row crops, ethanol, cows, hogs and chickens.

“We’re going into a really dark period here, where banks and those that do the lending are going to be having very tough conversations with producers for the first time in a while,” Flood said. “We’ve had some really good years.”

Boom and bust in agriculture

U.S. Sen. Deb Fischer of Lincoln, whose family owns and operates a ranch near Valentine, said most of the experienced farmers and ranchers she speaks with around the state understand and prepare for the boom and bust runs of agriculture.

She said she worries most for young producers, who haven’t seen three-dollar corn before. For them, this stretch is going to be difficult. But farmers and ranchers are in the business for the long haul, she said.

“People are just going to weather the storm, as we always do in agriculture,” she said. “You’re not going to be buying that new combine, you’re not going to be buying that new pickup, and that then has ramifications in your community.”

Economic issues widespread

Rep. Adrian Smith of Gering, who represents the largely rural, sprawling 3rd Congressional District, said his constituents share the concerns  about higher ag costs and lower prices.

Smith, who serves on the tax-writing House Ways and Means Committee, said people need the certainty of knowing the Trump-era tax cuts will survive so higher taxes don’t push down investment and slow wage growth.

“There are concerns economically across the board,” Smith said.

Ricketts and 2nd District U.S. Rep. Don Bacon of Papillion said they want Congress to start grappling with the national debt. They said simply paying the interest on the nation’s debts is at risk of crowding out other critical budgetary needs, including defense spending .

“Our interest is the second-biggest line item we have,” Ricketts said. “It’s the fastest growing. We’ve got to get our spending under control. Here in Nebraska, we demonstrated how to do it. We need to do it.”

Farmers need crop insurance

Bacon, who serves on the House Agriculture Committee, said he is working with Republicans and Democrats in Congress to make sure the House version of the five-year farm bill protects crop insurance, a key farm support.

“That is the number one thing we have to do for our farmers,” Bacon said.

He and Smith discussed the need to expand opportunities to sell more Nebraska products abroad, be they agricultural or manufacturing. Bacon called Nebraska “an export state” that needs more access to international markets.

Smith said former President Donald Trump prioritized finding partners and places for many of the region’s products. He criticized the Biden administration for coasting on trade, saying competitive times require more from him.

Smith called for quicker and more decisive action seeking enforcement and relief on bioengineered corn sales to Mexico under the U.S.-Mexico-Canada Trade Agreement. Mexico’s leadership has dragged its feet on corn imports, he said.

“The world is watching, and the world expects more of a trade agenda from the United States of America than … what they’ve seen over the last three and a half years now,” Smith said.

Appreciating a different approach

The three House members and two senators talked about their relationships with each other and said their colleagues in Congress marvel that members of Nebraska’ delegation all get along. They said each specializes in different areas of policy interest.

Nebraska State Chamber President Bryan Slone told the group’s midmorning crowd that Nebraska is lucky to have members of Congress who take time to update them in person on the way things are going in Washington, D.C.

He also urged attendees to look beyond the acrimony of an election year and remember to value the freedoms they enjoy to be able to criticize their elected leaders and candidates and write, call, text or stop by to share their thoughts.

“We complain every day about American politics,” Slone said. “The truth is there’s nothing cooler in the world … that we have a system where we can disagree, we can argue, we can puff, we can do all of those things.”