[Congressional Record Volume 142, Number 86 (Wednesday, June 12, 1996)]
[Senate]
[Pages S6138-S6139]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


         AMERICA'S FAMILY FARMS: A WAY OF LIFE WORTH PRESERVING

  Mr. DASCHLE. Mr. President, I recently visited the farm of Doug 
Henderson in Beresford, SD, and discussed with Doug and his neighbors 
issues facing southeastern South Dakota farmers. There was much give 
and take on the new farm bill, the state of cattle prices and, of 
course, the weather. The discussion put in bold relief the frustrations 
and challenges South Dakota farmers and ranchers face every day, and 
raised legitimate questions about current agricultural policy.
  I also had the opportunity to meet privately with the Henderson 
family in their home prior to the broader public discussion. It was an 
experience I will remember forever.
  Keeping the family farm together for the past 4 decades has not been 
easy for the Hendersons. Their secret to survival has been an enduring 
appreciation of the land and hard work on the part of each and every 
member of the family, including the children.
  The rewards for the Hendersons' dedication to farming have been 
numerous. They speak eloquently about raising their children in a 
tight-knit community steeped in strong values. They clearly love their 
chosen profession, which allows them to see the tangible results of a 
good day's work.
  Despite their love of farming, the Hendersons' story also has a sad 
side--the continuous struggle to make a decent financial return on 
their investment of time, money and plain old hard work.
  The Hendersons' story is described in a letter presented to me at our 
meeting. I would like to share that letter with my colleagues. It lays 
out in clear, honest terms the difficult dilemma facing hard-working, 
dedicated farm families all across rural America: how to survive 
financially on a modest-sized family farm in today's agricultural 
environment. The Hendersons' letter presents a picture that merits more 
attention and reflection in Washington policymaking circles.
  The bottom line, Mr. President, is that today financial survival on 
family farms is much tougher than it should be in a nation that enjoys 
the most abundant and least expensive source of food on the globe. If 
we are to preserve this durable source of farm commodities, our rural 
communities and their rock solid values, then farmers must enjoy a 
reasonable return on their investment. This problem must be addressed 
if family farms are to survive in the future.
  Mr. President, I ask unanimous consent that Doug Henderson's letter 
be printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                       Fall, 1995.

                  My Story: 40+Years of Family Farming

       My name is Doug Henderson. My wife, Joan, and 4 sons, ages 
     10 to 17, live on a crop/dairy farm west of Beresford, South 
     Dakota. Our operation includes 100 mature holstein cows. 100 
     replacements, 50-100 extra cattle. 100 acres owned and 400 
     rented.
       My grandfather bought this farm in the early 40's. My 
     father came back to rent and then later buy the farm after 
     serving nearly 5 years in the Pacific during WWII. I was the 
     oldest of four sons and one daughter. Each of us played an 
     important part in the daily operation of this family unit 
     during the 50's and 60's--and we knew that because we could 
     feel it. It felt good. I think that's why I was drawn to this 
     place.
       My wife and I earned teaching degrees in `77 after having 
     served in the U.S. Army from `72 to `75. After teaching for 
     two years and farming ``on the side'' I had the opportunity 
     to ``take over the place'' and farm fulltime. We did some 
     work on the house and moved our family in here in the spring 
     of 1981. Financially, we have had some good years and some 
     not so good years. Personally, we have had only good years. 
     However, 1995 finds us at a crossroads.
       Personally, I truly cannot think of a place I would have 
     rather been or anything I'd have rather been doing for the 
     last 14 years. My oldest son, a high school senior, is 
     qualified to do almost anything I do out here. My sons 12 and 
     15 are almost as competent. All four have a good sense of 
     self and a high regard for the traditional values that my 
     wife and I do our best to model for them. Our involvement in 
     community and church has provided growth and enrichment. Our 
     lives have truly been joyfilled during these early years. 
     This setting has made child rearing easy.
       Financially, the future of this production unit is dim. Our 
     facilities now nearly 30 years old, do not produce the volume 
     of milk required per man hour to allow us to be as 
     competitive as we need to be. Our balance sheet has not 
     improved significantly during the last 4-5 years. While we 
     claim not to have made purchasing or marketing mistakes and 
     have always been moderate in our strategies, we acknowledge 
     the reduced will to pour out boundless energies to try to 
     make everything click. I know that the farm

[[Page S6139]]

     would not break even without the input of the family. We have 
     estimated an annual family labor input of 6000 to 6500 hours/
     year. In return my family draws $14,400/yr and housing, milk 
     and meat. Our gross revenues in each of the past two years 
     have approached 300,000 dollars. Milk is the primary product 
     produced and that production in 1994 was 1.6 million pounds 
     (160,000 cwt). That 1994 production represents almost three 
     times the production of this same facility in 1978-80 when my 
     father, brother and I worked as partners and each drew a 
     salary. Together my father and I have been making payments to 
     the FHA for over 40 years and I have 25 years and $110,000 to 
     go on my farm ownership loan. We would probably not have 
     maintained this operation without the security of the FHA 
     loan.
       We have added some buildings and prepared for a less labor-
     intensive livestock production enterprise and do of course 
     have the option to update and sign the dotted line for 
     another lifetime of debt if we want to take on a partner and 
     continue producing milk. The fact of the matter is however 
     that after nearly 20 years of working 3500-4000 hours per 
     year, my body is saying ``enough''! My brain is saying 
     ``there must be a better way''! And my heart is saying ``thou 
     shalt not offer a son''! I never thought I'd feel this way, 
     let alone admit it.
       In a nutshell, I know agriculture. I know crops. I know 
     livestock. I can produce. I love to work. My family works for 
     free. I love this life. My family does too. We plan to quit 
     (as soon as we can figure a way to pull it off financially. . 
     . but maybe sooner). I hope I can find work that allows us to 
     maintain the high cost of country living.


                           epilogue--May 1996

       As it turns out, 1995 was a year of major marketing 
     mistakes--at least wrong choices. Instead of selling 55 
     surplus steers at depressed prices in the fall to pay off 
     bills, we were duped into selling 10,000 bushels of corn. The 
     price seemed relatively good; and after all, how much worse 
     could the cattle market get? This single decision will 
     ultimately represent a turn around of nearly 30,000 dollars. 
     When combined with a poor crop year, severe weather stresses 
     to herd health and dairy production and additional budget 
     pressures that happen from time to time, we simply were not 
     in a strong enough financial position to handle this much 
     adversity.
       As a result, we had to either seek a guaranteed loan or 
     sell out secured chattel which at depressed prices would have 
     left us very little on which to operate. Fortunately the 
     timing was right and the loan was approved. We honestly would 
     not be operating this year without the help of the FHA. These 
     people (Ron Walker and his loan officers) have always been 
     cordial, understanding and very helpful. I salute them and 
     the general mission of the Farmer's Home Administration.
       SHOCK is the best way to describe what happened to us 
     financially. It occurs to me that I can distinctly recognize 
     the seven stages of grief in this process. There is for a man 
     who has known tremendous happiness and satisfaction in his 
     personal life as well as his business, no greater stress and 
     loss than financial failure. The MOURNING and BLAME part of 
     this process is very, very disturbing. Our Extension Service 
     here in South Dakota responded to the flooding in 1993 with 
     Project Rebound. I hope the cattle ranchers and feeders will 
     be offered at least the emotional support they need during 
     this cattle crisis. We have a plan and with decent crops 
     should HEAL. I have a hunch that milk prices are going to 
     respond fairly quickly to current market pressures. The 
     REBUILDING part of this process for me will likely include a 
     career change. I've always managed a higher level of energy 
     for new challenges. I'm hoping again to see one of my sons 
     have a life here--a clear sign we are rebuilding.

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