During delegate sessions on Saturday at Commodity Classic, the National Corn Growers Association (NCGA) and the American Soybean Association (ASA) adopted policy that will guide the organizations.

Perhaps the most significant action took place during Corn Congress, the policy meeting of the National Corn Growers Association, where NCGA delegates voted to look at options for shifting away from direct payments.

The resolution approved on Saturday states that “NCGA should investigate transitioning direct payments into programs that allow producers the ability to manage risk while assuring food security.”  Earlier in the week, delegates narrowly rejected a resolution with stronger language on the elimination of direct payments.

Iowa Corn Growers Association president Dean Taylor says it has become very difficult to defend direct payments.  “Where that’s going to go exactly, I don’t know,” says Taylor, “but a lot of us have not been happy with the whole concept of direct payments because we need a safety net.  We don’t necessarily need a hand-out—and that’s really what it’s kind of designed to do, to a great extent.”

In another noteworthy policy move, NCGA delegates said they favor a retooling of the current 45-cent ethanol blenders’ tax credit.  They voted for several policy options for ethanol, including a variable ethanol tax rate and more investment in biofuel infrastructure.   

Garry Niemeyer, NCGA First Vice President from Illinois says delegate action will give the organization clear direction.

“The whole purpose of what we were discussing is to find the language to give us the flexibility so that we can continue to allow our staffers in Washington, D.C. to accomplish their goals and also accomplish our wishes as a organization,” said Niemeyer.

Steve Wellman, American Soybean Association First V.P. from Nebraska said delegates didn’t make any major changes in ASA policy.

“We went through the entire document and it was open for thorough discussion and I think everyone had the opportunity to bring any ideas or changes they wanted to have at this point in time and I don’t thing we limited anyone’s voice,” Wellman said.

During Commodity Classic the four participating commodity organizations, National Corn Growers Association (NCGA), American Soybean Association (ASA), National Association of Wheat Growers (NAWG) and the National Sorghum Producers (NSP) issued a joint statement on the Federal deficit and debt reduction.

“Farmer members of the American Soybean Association, the National Association of Wheat Growers, the National Corn Growers Association and the National Sorghum Producers are meeting at Commodity Classic to determine policies that reflect their priorities in 2011 and beyond. Among these priorities, we recognize that reducing federal deficits and the national debt is critical to putting the American economy, including U.S. agriculture, on a sound course for future growth and prosperity.

“We note that agriculture made a down payment in cutting spending when the Department of Agriculture directed $4 billion in savings under the Standard Reinsurance Agreement for federal crop insurance toward deficit reduction. We believe any further reduction in discretionary spending should recognize and reflect this contribution. We would also note that agriculture-related programs represent less than one-half of one percent of the federal budget.

“Looking forward, we believe any meaningful approach to deficit and debt reduction in the FY2012 budget must encompass all entitlement programs and all discretionary spending. We look forward to working with Congress and the Administration to develop a budget that successfully addresses the need for federal deficit and debt reduction balanced with the need of ensuring a successful agricultural economy.”