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Committees wrestle with commodity title

Leaders of the Senate and House Ag Committees continue to discuss a farm bill compromise. But regional differences over the commodity title are still a sticking point.

Iowa Senator Charles Grassley favors the Agricultural Risk Coverage program, which is contained in the Senate version of the farm bill.  He says it is more market-oriented than the Price Loss Coverage program, which is contained in the House Ag Committee’s version and is favored by Southern ag interests.

“The fact is the Price Loss Coverage program would take us back three decades in farm policy,” Grassley says. “The program would have farmers farming for the program instead of farming for the market.”

The House bill would give farmers the option between the Agricultural Risk Coverage program and the Price Loss program, which would continue to raise target prices.

“If we accept the House committee proposal, it would likely get us just as much criticism as we’ve been getting for two or three years from direct payments,” Grassley says.

Grassley believes there is still time to get a farm bill done and included in a possible year end “fiscal cliff” package.  But he says that is not likely to happen if the two ag committees can’t reach consensus.

AUDIO: Chuck Grassley (2:54 MP3)