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NCGA questions administration’sproposed ag budget cuts

Alarming.

That’s how the National Corn Growers Association describes the Obama administration’s proposed agbudget cuts. NCGA first vice president Darrin Ihnen says growers need a strong safety net. He fears the industry will be weakened if the government begins to cut crop insurance funding—and if payment eligibility is based on, as Ihnen puts it, “rules that ignore production costs and long termbusiness investments.”

Despite strong opposition from farm groups and ag leaders in Congress, the administration’s fiscal year 2010 budget proposal still proposes phasing out direct payments to farmers with gross sales over 500-thousand dollars and cuts in the federalcrop insurance program.

Ihnen says the proposal to phase out direct payments could also decrease participation in the Average Crop Revenue Election—ACRE—program, which was included in the 2008 farm bill.

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