February 25, 2020

Farm Bill; Biofuels; and EPA Issues

Categories: Ethanol /Farm Bill /Food Aid

Farm Bill- Senate Budget Committee Hearing

Recall that last week the Senate Budget Committee held a field hearing in North Dakota titled, “Writing the Next Farm Bill.”

Some testimony that was delivered by witnesses at that hearing has been posted at the Senate Budget Committee Online. Excerpts of comments made at the hearing included the following:

Ryan Pederson, President, Northern Canola Growers Association- “We feel that agriculture has already endured significant cuts in the crop insurance program as approximately $3.9 billion was trimmed recently. A significant portion of that cut was allocated to deficit reduction, which shows that agriculture has already made some necessary contributions to aid in our nation’s deficit problem. This has to be taken into account when cuts are demanded of growers during the discussions of the 2010 Farm Bill….A sound crop insurance program is critical to growers to protect against losses that can result from factors beyond our control. It is even more critical as input costs continue to increase at rates beyond the rate of inflation. The NCGA opposes cuts in the crop insurance baseline. Any reallocation of spending under the program should be used to pay for reforms needed to make it more effective on a nationwide basis…If changes to direct payments are to be made, we would ask that these funds be redirected into additional risk management tools such as crop insurance…We would like to see the ACRE Program focused at a more local level than is currently the case.”

Jeffrey Oberholtzer, Director, National Sunflower Association (NSA) – “Crop Insurance: This is the number one tool for sunflower farmers to protect farm income. Further strengthening of crop insurance programs will be supported by the NSA…Direct Payments: There is general agreement within the board that direct payments should be reinvented if this program is a lightning rod for farm program opponents. Obviously no one wants to give up an income stream like direct payments. However, if direct payments are viewed negatively by the public then adjustments should be made. We would support redirecting at least a portion of these payments to further strengthen crop insurance programs or possibly SURE and ACRE programs…SURE and Disaster Programs: We have not had much experience with the SURE program but give Congress high marks for putting a permanent disaster program in place.”

Robert Carlson, President of the North Dakota Farmers Union- “A shift of direct payments to a new or better program that reflects cost of production plus inflationary safety nets is also favored by our members. The Average Crop Revenue (ACRE) program was an attempt to begin this process, but was complicated from a farmer’s perspective. The program has two levels of payment triggers to meet before it would make payments. It also involves a commitment from all landlords and a commitment for the life of the program that may not match the land rent agreement. A program like ACRE may work if the state payment trigger could be moved to a much smaller region or an individual farm payment trigger.”

Steve Edwardson, Executive Director of the North Dakota Barley Council- “Providing growers with a holistic safety net is critical to maintaining stability in agricultural production and the supply of human food and livestock feed. Improved risk management products are a primary component of a safety net, and will assist in preventing further erosion in the downward trend of barley production.”