12/16/08 Direct payment may be in the bulls eye

Farm and Ranch December 16, 2008 Wheat and barley growers fought hard to keep the direct payment as part of the federal safety net in the new farm bill and they succeeded. However, Barry Flinchbaugh Kansas State University economist, had this warning for producers attending last week's Oregon Idaho Grains Conference. Flinchbaugh: "Now we are going to have trouble with this new administration on the direct payment. We are going to have trouble with Collin Peterson on the direct payment. We are going to have trouble with the National Farmers Union who will certainly increase their power in this administration." Flinchbaugh said the head of the National Farmers Union, Tom Bius, who is on the short list for Agriculture Secretary has recommended that all the money for the direct payment should be put in the marketing loan. Flinchbaugh: "I grew up in Pennsylvania Dutch country. There is an old saying back there in Dutch country, "a bird in hand is worth two in the bush." Now that is not rocket science. That direct payment will be made. That bird sits right there in that hand. Then there is the target price and the marketing loan. The target price is in the bush and the marketing loan is so damn far into the jungle that you can't find it." Flinchbaugh admitted he was preaching to the choir but said supporters of the direct payment are going to have to do a lot more preaching. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.