6-12 FB Barley Contracts

At a  recent subcommittee hearing of the House of Representatives Committee on Agriculture, National Barley Growers Association (NBGA) president Scott Brown requested congressional farm leaders pass a new Farm Bill policy before the September 30, 2012 expiration date of current law. Testifying before the subcommittee on General Farm Commodities and Risk Management, Brown emphasized to Representatives that a robust crop insurance program was the top priority of U.S. barley growers and that passage of a new long-term bill by September will help farmers currently facing financial uncertainty.

A third generation malt barley farmer from the Soda Springs area of southeastern Idaho, Brown pointed out the alarming decline in U.S. barley production due in part to the more favorable farm policies of competing crops. Travis Brown of the Idaho Grain Producers Association says that barley growers are fine if their crops are contracted: “Most malt barley acres in Idaho are contracted ahead of  their harvest so you take your chances with not contracting.”

 In layman’s terms, if a crop is not contracted and the bottom suddenly falls out of the market, a farmer can lose his shirt because he has spent X number of dollars raising the crop and receives far less than X number of dollars for his efforts bringing that crop to market. And you think farming is easy