Grassley addresses farm bill, Medicare, post office closings

RED OAK — While focusing most of the discussion on the upcoming federal farm bill, Sen. Charles Grassley responded to concerns about Medicare and closing post offices at a recent town hall meeting in Red Oak. Before being joined by Congressman Tom Latham and Agriculture Secretary Bill Northey, Grassley was asked about his stance regarding plans to close thousands of post offices nationwide, including one in Elliott.

Grassley said with the post office operating without federal funding, it’s difficult to assert any influence over their decisions.

“The Post Office is an independent agency … pretty much outside of government,” he said. “It doesn’t get any government funds. We have a lot of control over agencies that get money from us because when they get money … when we have complaints, they have to listen.”

Grassley said he has met twice with the Postmaster General regarding the pending closures.

“What’s come out of the two meetings I’ve had with him … they are going back now, compared to the list they made out in February that they added to two months ago, they are going back and review all these offices under certain criteria,” Grassley said. “I’m not sure I can tell you what that criteria is, but they promised us another review.”

When asked about discussions regarding Medicare reform, both Grassley and Latham agreed doing nothing is not an alternative.

“Just in case you hear anybody say don’t touch Medicare, you know what they are telling you, they probably don’t know they are telling you this, but they are telling you after 2021 we aren’t going TO have any hospital coverage,” Grassley said.  “I want to keep Medicare, if you want to keep Medicare, you have to do some things to keep it viable.”  

Grassley claimed part of the problem is the average American contributes $110,000 to the program, while receiving $300,000 in benefits.

However, one audience member challenged Grassley on those figures.

“Does that figure take into consideration what our payments have earned in interest or dividends? I don’t think so,” the man stated. “If I started paying in at 19 years old, I think if I paid in $110,000 over 50 years of working… I would have an account that would have been worth well over $330,000.

“I’ve heard that figure before, but it really gets to the burr under my saddle. I want people to recognize that figure of $110,000 would have earned a lot of money … it didn’t, but that isn’t our fault. It is not a fair way to state what we put in and what we take out.”

Regarding the farm bill, Latham said its important to remember the financial constraints the nation faces, including a $1.65 trillion deficit in the current budget and a $14.5 trillion national debt.

“Always remember that in the framework of any discussion going forward,” Latham said. “It really bring to reality that there is going to be some changes and the thing we have to do is have a discussion of policy first and then apply what dollars we have to that policy, rather than have that all dollar driven.”

Northey cautioned farmers about becoming too secure.

“As I get around and talk to folks, a lot of folks are eternally happy if you are a crop farmer with the prices that are out there. You aren’t feeling the need for the big safety net as in the past,” he said. “You are cashing your check, but you are also getting nervous about what the future holds on the crop side … because its not going to be like this forever. We know its not. Stuff goes down just as it goes up. And we will have one of those times.”

Grassley also challenged those advocating for an end to the ethanol subsidies.

“In Washington, everybody who is against ethanol will say we are using 40 percent of our corn crop for ethanol,” Grassley said. “They don’t give us any credit for the 18 pounds out of every 56 pounds that is left over for dry distiller grain which is food for animals.”

He also pointed out three years ago, 93 million acres of corn were planted, or the same amount used to feed horses and livestock in 1910.

“So all of this stuff about food versus fuel is a bunch of demagoguery or ignorance, or not having faith in the future of agriculture as we have seen it develop in the last 100 years,” he said.