New Approach to Farm Bill

New Approach to Farm Bill. I’m Greg Martin with today’s Line On Agriculture.

Farmers throughout the country are watching and waiting to see how Congress decides to write the new farm bill. American Farm Bureau President Bob Stallman testified before a House Agriculture Subcommittee that the current agricultural boom doesn’t change the fact that this decision is critical for the nation’s agriculture industry.

STALLMAN: While some take a simple view of the current agricultural economy and conclude farmers do not need a safety net, we all know that current market prices will not continue for some commodities. The challenge we all face is how to draft a farm program that provides a strong, consistently viable safety net that protects farmers against crippling revenue declines, whether caused by falling markets or Mother Nature, while at the same time remaining cognizant of budget deficit challenges and changing public sentiment.

Stallman suggested to lawmakers that the new farm bill should have a three-prong approach.

STALLMAN: The new farm bill must be a fiscally responsible package that meets spending reduction targets and assures taxpayers that America's farmers are making wise use of our tax dollars. Continuation of a multi-legged stool remains the best approach for providing a fair and effective safety net, which should consist of a strong crop insurance program, continuation of the current marketing loan provisions, and a catastrophic revenue loss program.

Stallman says this balanced approach would make makeshift disaster assistance unnecessary.

STALLMAN: A deep loss program such as what we have suggested would not provide producers with payments as often as other proposals contemplated. It would provide more coverage in times of catastrophic losses when assistance is most critical.

Stallman talks about the need for a farm bill with a balanced approach.

STALLMAN:
As a general farm organization, we place high priority on ensuring the new farm bill benefits all American agricultural commodity sectors in a balanced, coordinated manner. To highlight this, our proposal would include coverage for five fruits and vegetables: apples, tomatoes, grapes, potatoes, and sweet corn. Conceptually, our proposal can cover all specialty crops that have crop insurance available, but we thought it best to learn to walk before we run.
He says the farm bill should be structured so farmers take their signals from the marketplace, not federal programs.

STALLMAN: The new farm bill must ensure that producers continue to take production signals from the marketplace rather than incentivizing them to chase federal program benefits. Approaches that allow producers to pick and choose between various program options would impose severe challenges on U.S. lawmakers to ensure that one option does not provide more government benefits than the next, thus driving production decisions.

That’s today’s Line On Agriculture. I’m Greg Martin on the Ag Information Network.