Crop insurance and commodity title programs have been critical for helping farmers survive sustained low commodity prices, and they should be maintained in the next farm bill, National Corn Growers Association Board member Bruce Rohwer testified today at a Senate Agriculture Committee hearing on risk management tools and the 2018 Farm Bill.
“Crop insurance and commodity title programs are particularly important to family farmers who earn a majority of their household income from the farm. Without crop insurance and commodity title payments, the financial wherewithal of these farms would likely face serious erosion in the current environment,” said Rohwer, who raises corn and soybeans and runs a sow farrow-to-finish operation in Paullina, Iowa.
Rohwer noted that corn prices have averaged below $4.00 per bushel since 2013, and are projected to average $3.35 this marketing year. The annual crop value of corn fell from nearly $77 billion in 2011 to just over $51 billion in 2016, the effects of which have been felt throughout the agriculture industry. Restoring a strong farm economy is good not only for farmers, but also the businesses they support, Rohwer testified.
“The sharp drop in farm income increases the financial stress for farmers, as well as employees of agriculture-related businesses, such as equipment manufacturers. Everyone tied to the ag economy is affected,” said Rohwer.
“That’s why it is more important than ever to strengthen our position in current markets and develop new uses to increase demand for our crop. A robust livestock industry, expanding exports, and a growing renewable fuels industry are central to corn farmers achieving more profitable and resilient farm operations.”
In the meantime, Rohwer testified, commodity title programs and the federal crop insurance program are essential risk management tools for farmers, and they must be maintained in the 2018 Farm Bill.
“Overall, the commodity program reforms authorized in the 2014 Farm Bill have performed as they were designed. They are delivering assistance when it’s needed, and only when it’s needed.”
Click here for NCGA’s full written testimony.
CommonGround is a group of farmers connecting with consumers through conversations about science and research and personal stories about food and misinformation surrounding farming. Supported by the NCGA and state corn organizations.
The Soil Health Partnership (SHP) is a farmer-led initiative that fosters transformation in agriculture through improved soil health. Administered by NCGA the partnership has more than 220 working farms enrolled in 16 states. SHP’s mission is to utilize science and data to partner with farmers who are adopting conservation agricultural practices that improve the economic and environmental sustainability of the farm.
The Corn Utilization and Technology Conference (CUTC) is a biennial event happening this June. Learn more.