USDA Farm Bill Proposal Highlights Merit of Revenue Based Program, NCGA notes (1-31-07)

Today, U.S. Department of Agriculture (USDA) Secretary Mike Johanns released 2007 farm bill recommendations, some components of which mirror a revenue-based farm program similar to the National Corn Growers Association (NCGA) proposals, which is based on revenue rather than price. NCGA’s proposal is designed to be more market-oriented, but also more effective in protecting farm crop revenue against production losses, depressed prices and rising input costs.

“We were glad to hear the secretary heard from the countryside some of the same concerns that our members have been telling us – there are gaps in the current farm bill’s safety net,” said Ken McCauley, NCGA president. “USDA has obviously recognized the merit a farm bill such as NCGA’s revenue-based proposal would have in providing a more effective and efficient farm safety net for producers. There are some components of the proposal we agree with and some we do not. We will study the proposal closely to see its impact on our growers.”

In areas such as rural development and energy, McCauley noted, NCGA feels the Administration’s proposals of offering incentives to bring young farmers back to the farm is a step in the right direction to building our rural American communities.

As discussions on the 2007 farm bill continue, McCauley stated that corn growers will remain engaged at all levels to ensure the needs of producers are being met.

“The new farm bill should be about improving upon today’s policies for changes that are well underway in our commodity markets and our agriculture industries,” he said.

USDA held farm bill listening sessions throughout the past year where corn growers and other producers could meet with Sec. Johanns and other top USDA officials and discuss how farm policy has and continues to impact their farm operations. The forums also allowed for growers to offer direct input as USDA begins to prepare for the next farm bill and develop beneficial programs for U.S. farmers.