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Obama’s budget has big ag subsidy cut

April 10, 2013 By Leave a Comment

The Obama administration proposes big cuts to farm subsidies over 10 years in its latest budget, released today.  DTN says the proposal would eliminate 37.8 Billion dollars in farm subsidies, eliminating the direct payment subsidy program and reducing crop insurance subsidies.

In its proposal, the administration says the all-time high values of crop and livestock production no longer justify income support payments.

The Senate-passed farm bill last year eliminated direct payments – no vote was taken on a farm bill in the House.

The administration says net farm income is forecast to rise nearly 14% this year to more than $128 Billion – “the highest inflation-adjusted amount in 40 years.”  Strong opposition from ag-state lawmakers and farm groups is expected -– last year the Senate voted to INCREASE spending on crop insurance by more than 2.5 Billion dollars over 10 years.

Filed Under: News, USDA/Government Tagged With: , , , ,

Roberts’ bill strengthens crop insurance

April 10, 2013 By 1 Comment

Senator Pat Roberts of Kansas has introduced a bill that he says would save more than 5-Billion-dollars over five years while strengthening federal crop insurance that he wants to be a part of a new farm bill. The measure, he says, is paid for by eliminating all direct payments to farmers.

Roberts says farmers in Kansas and elsewhere were able to get back on their feet after three years of serious drought, not because of an ad hoc disaster package but “because they managed their risk and protected their operations through the purchase of crop insurance.”

Among its features, he says the bill addresses the declining Actual Production History (APH) yield problem by increasing the county transitional yield. The measure is similar to the Senate-passed farm bill from last year.  Roberts and former Senator Bob Kerry of Nebraska authored legislation 13 years ago that was signed into law improving the crop insurance program.

Filed Under: Crops, News, USDA/Government Tagged With: , , ,

USDA to cut $152M from direct payments

March 20, 2013 By Leave a Comment

Reuters reports that the USDA will cut about 152 million dollars from direct payments to farmers to comply with automatic spending cuts that took effect at the start of this month.

Ag Secretary Tom Vilsack said Tuesday that the cuts would offset reductions due in three USDA programs that have already disbursed money to farmers—the Milk Income Loss Contract, the Supplemental Revenue Assistance program (SURE) and the Noninsured Assistance Program (NAP). 

Vilsack said it is more efficient to pro-rate the direct payment subsidy than to ask the other farmers for a refund on checks already cut.

Filed Under: Crops, News, USDA/Government Tagged With: , ,

Ag economist’s projections of direct payments

March 18, 2013 By Leave a Comment

What’s the projected lifespan of direct payments for farmers? Gary Schnitckey, University of Illinois Professor and Ag Economist, says they are likely going to continue for this year with that extension of the 2008 farm bill.

“As far as direct payments for 20-13, they’re already scheduled. The only thing that can change those payments would be if sequestration (cuts) hit those – and you can guess about that – but it’s more likely that it would reduce the payments rather than end those payments.”

We asked Schnitkey about direct payments for 2014 – especially if a new five-year farm bill is Not passed this year.  He answered, “If we get a Farm Bill Extension like we did for 20-13, it may include direct payments but there’s a good chance they could be reduced as well – or the levels of those reduced or eliminated. So the chance of direct payments for 20-14 is pretty small.”

He says the farm bill drafts of 2013 did not include direct payments so he said it’s pretty certain that IF a farm bill is passed this year it won’t include them either.

AUDIO: Gary Schnitkey on direct payments, ACRE, crop insurance, at the IL Soybean Summit (4:30 mp3)

Filed Under: Crops, News, USDA/Government Tagged With: , , , ,

Farm programs targeted for cuts?

February 22, 2013 By Leave a Comment

As Congress continues to battle over the budget, a new Democratic proposal to avoid across-the-board spending cuts targets two areas for big cuts; the defense budget and farm programs.  American Farm Bureau farm policy specialist Mary Kay Thatcher says while AFBF favors avoiding sequestration – this is not the way to do it.  “We just don’t think that’s right,” she says.  “We’re willing to give our fair share – but to say only two sectors are going to give all of the money are just unfair.”

Thatcher explains that the plan would cut funding by eliminating direct payments.  But she says that could have happened had the farm bill passed last year.  “Both the bill that passed the House Ag Committee and the Senate eliminated direct payments and did indeed turn part of the money towards deficit reduction and the part of it to build a new program with a new adequate safety net,” she says. 

Parts of the farm bill are designed to protect farmers when times are tough and Thatcher says if too much money is taken out of the budget now – a farm bill can’t be written with an adequate safety net.

Which she adds would be bad news for agriculture.

Filed Under: Events/Organizations, News, USDA/Government Tagged With: , , , ,

What could the Farm Bill extension mean for agriculture

January 9, 2013 By Leave a Comment

Last week’s passing of the extension of the 2008 Farm Bill has the agriculture industry uncertain about where agriculture stands as the new Congress will soon need to begin crafting a new Farm Bill. 

Purdue University Ag Economist Otto Doering provides his thoughts on the future of farm policy.

AUDIO: Otto Doering, Purdue University (3:00mp3)

Filed Under: Feature Programs, Managing for Profit Tagged With: , , , ,

Rice grower leader on extended direct payments

January 4, 2013 By Leave a Comment

The rice industry is pleased that direct payments are still available with the extension this year of the 2008 farm bill.

Texas rice grower Linda Ruan, who is chair of the USA Rice producers group (of the USA Rice Federation), says yield is consistent for rice growers because all rice crops are irrigated – therefore, their risk is in price and cost of production.

She tells Brownfield Ag News, “In order to get financed we need some sort of safety net that will – and what we wanted was a counter-cyclical safety net that would not pay anything if prices state up but if prices went down it would trigger – similar to the current counter-cyclical program – it would trigger and give us a payment but only if prices went down.”

And that’s what they liked about the farm bill passed by the House Ag Committee – being able to choose that over revenue protection. The Senate passed farm bill only offer the revenue choice.

Ruan says they are pleased Senator Thad Cochran of Mississippi is the new ranking chair of the Senate Ag Committee, replacing Pat Roberts of Kansas because she says Cochran understands rice and similar southern crops. 

“You know, Senator Roberts, we had worked with him for years, also. But, I think that working with Senator Cochran is going to be, hopefully something that will help move this farm bill forward.”

Filed Under: Crops, News, USDA/Government Tagged With: , , , , , ,

Rice Federation applauds farm bill extension

January 3, 2013 By Leave a Comment

The USA Rice Federation applauds the extension of the 2008 Farm Bill by Congress. They cite the “critical importance” of continuing direct payments and market access promotion programs in the current legislation for the rice industry.

Acknowledging the hard work of the House and Senate Agriculture Committees on farm bill policy over the last few years, they are urging lawmakers to include a five-year farm bill “in broader deficit reduction legislation this year.”

They praised House Ag leaders Lucas (R-OK) and Peterson (D-MN) and rice state Senators Boozman (R-AR), Cochran (R-MS) and Chambliss (R-GA) for supporting legislation that they say works for rice farmers. The Federation urges the 113th Congress to come up with a farm bill that works “for all crops, in all regions” of the country.

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Indiana Congressman votes “no” on the Farm Bill

July 12, 2012 By Leave a Comment

Four Republican members of the House Agriculture Committee voted against the 2012 Farm Bill.  One of those was Indiana’s 3rd District Congressman, Marlin Stutzman.

Stutzman explains why he cast a “no” vote:  “Farmers made cuts, we were willing to make the decision to reform programs and to reduce the cost of programs.” But, he says, “We’re only seeing more spending in the welfare programs within the Farm Bill.  I don’t think that’s right for the future of our country.”

He tells Brownfield the pressure is on to get the Farm Bill completed.  He says he anticipates a lot of resistance against the amount of spending in the Nutrition Title.   That’s why Stutzman says he’d like to see the bill split. 

“I’m starting to talk to my colleagues about taking the agriculture portion out of the welfare portion and actually have a real, true Farm Bill that focuses on agriculture,” he says.  “Then take the nutrition title and the welfare portions and put it into its own bill.”  Stutzman says at that point, he could support the changes that were made in the agricultural portions of the bill.

Regardless if the Farm Bill goes through in one or two bills, Stutzman says he gives it a 50/50 chance of passing before the September 30th deadline.

AUDIO: Marlin Stutzman, 2012 Farm Bill (10:17mp3)

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Stabenow wary of crop insurance limits

June 20, 2012 By Leave a Comment

Senate Ag Committee Chair Debbie Stabenow says amendments to the Senate Farm bill to cut crop insurance support are a concern to her. Stabenow tells reporters she doesn’t want anything to undermine the reforms made in the bill – that eliminates four direct subsidies that are not tied to risk. She says the farm bill is designed to incentivize farmers to buy into the partnership that is crop insurance.

“Whenever we look at other kinds of limits on this my worry is that we shift the cost to smaller farms. So, I’m cautious right now. We don’t have enough information on the crop insurance end,” Stabenow told reporters this morning.

Stabenow says she prefers to let the new Farm Bill play out and deal with any crop insurance changes in the next (2017) farm bill. 

Proposals by Senators Coburn of Oklahoma and Durbin of Illinois would reduce federal premium support by 15 percent. A similar proposal has been put forth by Senator Sanders. Stabenow says South Dakota Senator Thune is working with those lawmakers on some common language.

Filed Under: Crops, News, USDA/Government Tagged With: , , , , , , ,
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