NCGA Looks Ahead to Farm Bill Implementation (6-23-08)

Since the passage of the Food, Conservation and Energy Act of 2008, the National Corn Growers Association has eagerly anticipated the bill’s implementation and learning about  its impact on corn growers nationwide.

NCGA will be meeting with commodity and agriculture groups as well as officials with the Farm Service Agency to address questions regarding the new farm bill, specifically the new Average Crop Revenue Election (ACRE) program.

“It’s important for groups vested in the farm bill to engage in dialogue to better understand its effect on growers,” said NCGA President Ron Litterer. “The ACRE program goes a long way in helping to reform commodity programs. The optional market-based state level revenue program provides producers an alternative safety net for more targeted protection against weather related crop losses, today’s volatile markets, and rising input costs.”

Earlier this month, the U.S. Department of Agriculture announced it was implementing the new provisions for the traditional marketing assistance loan and loan deficiency payment (LDP) programs. The national loan rate for the 2008 corn crop will remain at the same level established by the 2002 Farm Bill. Rebalancing of loan rates includes upward adjustments for wheat, barley, oats, oilseeds, graded wool and honey.

Given the damages caused by the recent Midwest floods, the supplemental disaster assistance program of the new farm bill will allow eligible growers to receive advance partial payments if they sustain substantial losses in their whole farm revenue. Development of regulations and administrative procedures for disaster assistance by the USDA Farm Service Agency will be one of the many steps that will have to be taken before the program is fully implemented.