02/14/07 Lawmakers quiz USDA plan for wheat

Farm and Ranch February 14, 2007 Agriculture Secretary Mike Johanns goes before the U.S. House Agriculture Committee today to discuss the Administration's 2007 Farm Bill proposal. Last week Johanns was before the U.S. Senate Ag Committee where some Republican Senators questioned the equity to wheat growers of USDA's farm bill plan. One of those Senators was Norm Coleman of Minnesota. Coleman: "You have stated publicly that wheat growers didn't get a fair shake in the last farm bill and so I am wondering if you see a four cent increase in the direct payment, that only comes in the out years, is equitable especially in light of the fact that I am hearing from a lot of folks in the wheat industry that counter cyclical programs don't do much for wheat." Kansas Senator Pat Roberts also questioned the small increase in direct payments for wheat growers. Roberts: "But the four cents comes in the out years. Wheat growers are not very happy about this and so we are going to have to work on that. And I want to know how does this formula help the wheat producers who were essentially left out of the counter cyclical program under the 2002 bill? Do have any projections you could provide us as to how the counter cyclical payments would have looked over the last five years compared to the current farm bill? Need to know that." Neither Coleman or Roberts left the Agriculture Secretary any time to respond verbally at the hearing. Roberts said he had a meeting scheduled with Johanns this week to go over some of the issues. One thing USDA is proposing is a counter cyclical payment that is revenue based not just determined from a target price. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.