House Agriculture Committee Chairman Frank Lucas (R., Okla.) discussed issues associated with the agricultural economy with Federal Reserve Chairwoman Janet Yellen on Tuesday during a House Financial Services Committee Hearing.
Related Transcript bellow:
LUCAS: Thank you, Mr. Chair. Chair Yellen, it is a pleasure to be with you today to visit (ph) a little bit about the pressing issues out there.
Sitting on the AG committee and working on the 2012, 2013 and ’14 farm bill now signed into law, there are several things we look at in the committee. And some are directly or indirectly related to the activities of the Fed.
For instance — and not so much an AG-related issue — but the observation from some of my constituents that after the financial problems in 2008, the dramatic downturn in the stock market, and now over the course of the last five years, going from losing half its value basically back to where it was, a little bit on the positive side, not just that, but, for instance, in farm land prices we watched over the course of the last five years a rather dramatic appreciation in the value of farm land.
Now some might say that part of the rebound in the stock market reflected the simple fact that the equities should not have collapsed that far in value five years ago, but — and some would also say that a big part of the takeoff in farm land values reflected the renewable fuel standard, a new government mandate consuming 40 percent of the crop, driving a demand in price responses that hadn’t been there before.