Skelton visits Marshall Feb. 2 to consult with area banker, farmers, agribusiness leaders about local economic situation

U.S. Rep. Ike Skelton, D-Mo., was in Marshall on Monday, Feb. 2, listening to concerns of area farmers and agribusiness people. From left, Skelton listens as area farmer Brent Sandidge talks about concerns. Also pictured is pork producer Phil Howerton of Chilhowee and Ryland Utlaut, a Grand Pass farmer. (Marcia Gorrell/Democrat-News) [Click to enlarge] [Order this photo]

During the hour-long meeting, Skelton gave a brief statement touching on national and world economic problems and President Barack Obama's stimulus bill now being worked out in Congress.

"We've been through an awful lot through the years, and this is the worst economic challenge I have seen," he told the group of about 15 people.

Skelton was in town Monday after local farmer Brent Sandidge contacted Skelton to speak to him about the current economic situation and how it would affect rural areas and farmers.

Skelton said he was concerned about the "so-called economic stimulus bill" when the proposal was first made; however, he and a few other representatives from rural areas "banded together" to get some "rural attention" in the bill based on a letter he sent the speaker of the House.

"What happens in the Senate, I don't know," he said.

A compromise was reached Friday on the Senate version of the bill. A vote is expected Tuesday, Feb. 10.

Telling the small group he was "there to listen to them," Skelton went around the room and gave participants a chance to tell him of their concerns.

Many of the participants told him that, so far, Saline County seems to be doing better than other parts of America.

"In reality, grain farming is not doing too bad right now, but we've seen prices fall from where they were," said Ryland Utlaut, a Grand Pass farmer and president of the Mid-Missouri Energy Board of Directors.

After answering Skelton's questions about the current grain price levels, he continued, "We're not used to those prices. Five years ago we didn't see anything like that."

He said, however, that he doesn't expect higher crop prices to continue much longer and worries about what will happen in the future.

"When we're spending all this money, what does this mean down the road for us?" he said, talking about the federal bailouts.

"Are we setting ourselves up for rapid inflation and higher interest rates? That's the thing I'm having trouble dealing with. I understand trying to help everybody we possibly can, but what is this going to do to us down the road?"

Skelton asked John Huston, of Wood & Huston Bank, whether banks in the area are in trouble.

"I don't think they are here. I think we've got a different situation than in big cities," Huston said. "But if we get a whole lot of people unemployed and they can't work and businesses go broke and nobody can make their house payments or their farm payments or their car payments, then a lot of banks are going to be in trouble."

Another topic covered was the lack of manufacturing jobs in the U.S. and the large number of regulations put on businesses and farms.

"We are by far the biggest consumers in the world, and we've lost our production. It is my understanding that less than 10 percent of the people in the country actually produce anything," said Huston, adding that the farmers in the room were part of that 10 percent.

"I think we need to do something to stimulate manufacturing in this country. A country can't be prosperous by being consumers. They've got to produce things in the long run to be prosperous."

Many in the group blamed the loss of manufacturing jobs and farms on overregulation.

Sandidge and fellow pork producer Phil Howerton of Chilhowee spoke about the pork industry, which they said has been hurt by high feed prices and many new regulations.

"That's always been a contention of mine; I think we regulate things too much. When you start to look at those regulations, those larger companies are going to go to South America," said Neal Bredehoeft, Alma farmer and past president of the American Soybean Association.

"Speaking from the soybean association, our view has always been that the livestock industry are our number one customer," said Bredehoeft. "When you start regulating this industry and you start regulating it out of business, it affects the livestock producers first, but it affects everyone sitting around this table."

"All those people who make those regulations based on bills we passed don't know what an ear of corn looks like," said Skelton.

Gabe Ramsey, of Central Missouri AgriService in Marshall, also addressed regulations.

"I think we've just put our business out of this country by regulations, and we've all sat around and said 'Surely they won't let them do that.' We haven't been on you guys hard enough," said Ramsey.

Ethanol was another topic during the meeting.

Malta Bend farmer Billy Thiel spoke about the industry, which right now has ethanol sitting idle. He also spoke about Show Me Ethanol in Carrollton, which is having financial difficulties.

Skelton asked the group for specifics about the Carrollton plant.

"They need $10 million because they are in violation of their loan covenants. If they can't get something like that, there is real danger they'll be bankrupt," explained Utlaut.

Thiel, a Missouri Corn Grower's board member, spoke about the impact ethanol plants have had in the state.

"In Missouri, we're pretty lucky. We have six ethanol plants, and they are all farmer-owned," said Thiel. "It has put a lot of money back in our community."

The House stimulus bill does include money for gas stations to add ethanol pumps.

"One of the problems is you don't have the outlets. This will help the gas stations put in the pumps for the ethanol," explained Skelton.

The cattle industry was another topic at the meeting.

"We've been losing money in cattle. Right now in the feedlots, they are losing anywhere from $150 to $250 a head," said Monte Fenner, a local crop and cattle farmer and auctioneer, who also expressed concerns about a rumored dairy bailout.

The rapidly increasing national debt was also on the minds of the group.

"Right now we're really expanding it like it's never been expanded. It's terrible, and I think we've got to address that some time," said Huston.

Skelton thanked the participants and said it was a treat for him to hear from them.

"You're the experts. You do it," he said. "You're the best there is."

Contact Marcia Gorrell at marshalleditor@socket.net