“In a letter to Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., senators stated, ‘With our constant focus on job creation, we write to urge you to schedule floor consideration of the ‘Agriculture Reform, Food and Jobs Act of 2012′ as soon as possible.’”
“‘Federal crop insurance provides an effective risk management tool to farmers and ranchers when they are facing losses beyond their control,’ the letter stated. ‘It reduces taxpayer risk exposure; it makes hedging possible to help mitigate market volatility; and it provides lenders with greater certainty that loans made to producers will be repaid.’”
The release added that, “NCGA has previously stated that crop insurance remains the number one priority in the new farm bill as well as a market oriented, risk management tool to cover multi-year price declines.”
Dr. Westhoff noted that, “Compared to simply extending current law, the bill would cut net federal spending by $23 billion over the next 10 years, according to estimates by the Congressional Budget Office. Spending is cut by reducing farm subsidies and making smaller changes in conservation programs and the supplemental nutrition assistance program, or SNAP, formerly known as the food stamp program.”
“The draft farm bill uses some of the savings from eliminating direct payments to create a new Agriculture Risk Coverage program. The program would pay farmers for smaller losses that are not covered by crop insurance. The proposed formulas are complex, but farmers would get a payment when per-acre revenues fall by at least 11 percent from a recent average. Farmers are expected to use the existing crop insurance program to protect themselves against losses of more than 21 percent.”
DTN Ag Policy Editor Chris Clayton reported yesterday (link requires subscription) that, “The crop insurance industry could benefit from ‘common sense structural changes,’ according to a pair of senators, who cite a recent government study in calling on the Senate Agriculture Committee to further investigate reducing premium subsidies to farmers.
“In a bi-partisan letter, Sens. Tom Coburn, R-Okla., and Dick Durbin, D-Ill., wrote earlier this week to Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., and ranking member Pat Roberts, R-Kan., asking them examine ways to find taxpayer savings in crop insurance. Coburn and Durbin cited a Government Accountability Office report last month requested by Coburn that highlighted the growing costs of the crop insurance program.”
DTN Political Correspondent Jerry Hagstrom reported yesterday that, “All crops need a farm program that protects them from multiyear price drops, House Agriculture Committee Chairman Frank Lucas said Tuesday, a position with which House Agriculture ranking member Collin Peterson agrees.
“In a wide-ranging exclusive interview with The Hagstrom Report and DTN, Lucas, R-Okla., praised Senate Agriculture Committee Chairman Debbie Stabenow, D-Mich., for her ‘herculean efforts’ to get a bill through committee, and said that he would not underestimate her ability to convince Senate Majority Leader Harry Reid, D-Nev., to provide time on the Senate floor to debate the bill.
“However, Lucas said although the Senate bill’s ‘shallow loss’ revenue program that would cover some losses beyond crop insurance is ‘a great tool’ in good times when prices are high, it would not provide a proper safety net if prices plummet.”
DTN Political Correspondent Jerry Hagstrom reported yesterday (link requires subscription) that, “During the congressional recess and this week, both aides and lobbyists were reluctant to speak on the record about the proposed farm bill.
“One aide to a senator who is not a member of the Senate Agriculture Committee said committee aides had begun asking staffers from other offices their opinion of the bill and whether their bosses would support it as written.”
A news release yesterday from the National Farmers Union (NFU) stated that, “[NFU] and a coalition of agricultural, conservation, environmental, energy, forestry, hunger, and rural stakeholders sent a letter to Senate leadership today urging them to bring the Agriculture Reform, Food and Jobs Act of 2012 to the Senate floor as soon as possible. NFU led the effort, which was supported by more than 125 organizations.
“‘This is one piece of legislation upon which all Americans depend, urban as well as rural,’ stated the letter. ‘With limited time remaining before the expiration of current program authorities, time is of the essence.’”
Also yesterday, the Senate Agriculture Committee provided an updated summary of the Farm Bill proposal it passed on April 26; this summary overview is available here.
Daniel Malloy reported on Friday evening at the Atlanta Journal-Constitution Online that, “Tim Burch’s family farm in southwest Georgia has been buoyed by federal farm subsidies in years when cotton and peanut prices have plummeted.
“That safety net is threatened this year, Burch said, as Congress moves forward on a new farm bill, aiming for tens of billions of dollars in cuts by remaking the federal subsidy system. The result earned bipartisan support in a Senate committee last month, but a group of Southern senators including Georgia Republican Saxby Chambliss refused to back the bill, saying it’s a raw deal in particular for peanut and rice farmers.
“In a phone interview last week, Burch, of Baker County, said a new proposed insurance plan would be inadequate.”
DTN Ag Policy Editor Chris Clayton reported yesterday (link requires subscription) that, “The chance of a farm bill coming out of the U.S. Senate anytime soon could hinge largely on safety net prospects for a pair of Southern crops that collectively account for about 4.5 million acres of the 320 million or so acres that will be planted this year.
“With the cotton industry largely satisfied with its new insurance program, rice and peanut farmers are counting on Southern senators to make a stand for them before the Senate floor debate on the new farm bill. They also see more hope in the House, where Agriculture Committee Chairman Frank Lucas, R-Okla., has said the Senate farm bill doesn’t do enough to factor in regional and crop differences.”
Erik Wasson reported yesterday at The Hill’s On the Money Blog that, “Agriculture Secretary Tom Vilsack, in an interview with The Hill this week, said demands by the House GOP for deep cuts especially for food stamps now constitute the top obstacle for passage of a 2012 farm bill by September when current farm programs expire.
“Vilsack offered some praise for the version of the farm bill that passed out of the Senate Agriculture Committee last week, even though it contains about $9 billion less in deficit reduction than President Obama had sought in his latest budget.
“He said the differences with the president pale in comparison to the differences with the House.”
Senate Agriculture Committee Member John Boozman (R., Ark.) was a guest yesterday on KASU radio (Jonesboro, Ark.) with host Mark Smith where in part, the two discussed 2012 Farm Bill issues and the bill that passed the Senate Agriculture Committee last week.
During a portion of yesterday’s discussion, Sen. Boozman elaborated on concerns from Southern producers, the potential difference in the House “vision” of the measure, why the Senate Ag Committee voted on a Farm Bill proposal prior to the House Ag Committee, and the SNAP (food stamps) program. The discussion of these issues can be heard in this clip from the KASU program (MP3- 3:50).
A news release yesterday from the Senate Agriculture Committee stated that, “Senator Debbie Stabenow, Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, led the Committee in considering and approving the Agriculture Reform, Food and Jobs Act of 2012, last Thursdaywith broad bipartisan support. The bill reforms food and agricultural policy by eliminatingdirect payments, consolidating programs and ending duplication, and cracking down on abuse in food assistance programs. This new Farm Bill saves $23 billion while strengthening crop insurance and other initiatives that help create American agricultural jobs.”
The release went on to include statements by Senators “from both sides of the aisle, praising the bill for its major reforms, and for the collaborative, inclusive and exceptionally bipartisan process of drafting it.”
Farm Bill: Lawmaker, and Executive Branch Perspectives
Senate Ag Committee Ranking Member Pat Roberts (R., Kan.) was a guest on Friday’s AgriTalk radio program with Mike Adams where part of their conversation turned to last week’s Senate action on the Farm Bill. In part, Sen. Roberts noted that, “I think that we can talk [Senate Leader] Harry Reid [D., Nev.] into putting this on the floor,” and added that, “I really don’t expect that many amendments.”
The Kansas Republican pointed out that, “We saved over $23 billion for the taxpayer. We are the first authorizing committee- agriculture led the way- in providing significant deficit reduction to reduce the debt and spending, over $23 billion.”
To listen to the full remarks on the Farm Bill from Sen. Roberts, just click here (MP3- 3:31).
David Rogers reported yesterday at Politico that, “Landmarkfarm legislation cleared the Senate Agriculture Committee Thursday, promising wholesale changes in commodity programs but also opening up a major breach with Southern growers angered by what they see as an unfair tilt toward the Midwest Corn Belt.
“The 16-5 vote—counting proxies — underscored the regional split, with two former Agriculture chairmen from the South and Senate Minority Leader Mitch McConnell from the border state of Kentucky joining in the opposition.
“The action followed a long night of final adjustments in what proved a vain attempt to buy unity. Cotton won concessions on its own revenue protection program, including a decision to lift the acreage cap on land enrolled. But the leadership resisted any return to a countercyclical program with target prices, and Sen. Saxby Chambliss (R-Ga.) bluntly warned that peanuts and rice will take a ‘huge hit’ and are left ‘without any safety net whatsoever.’” (Note: To listen to detailed remarks from Sen. Chambliss at yesterday’s markup in which he methodically explains some of the unique characteristics of peanut and rice production, and how these differences translate into desired policy options that are separate from Midwestern corn and soybean operations, just click here (MP3- 6:12)).
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Posted by Keith Good • May, 16, 2012 • 3:54 am 