News

Wheat growers begin farm bill discussion

The National Association of Wheat Growers (NAWG) is surveying its members on how federal farm programs are working and how they should be improved in the next farm bill.

Kansas wheat grower and NAWG vice president David Schemm says one of their concerns is with the data that’s used in setting ARC and PLC payments.

“One of the dynamics we’re a little bit concerned with is the difference between what the futures market price is, and the cash price they’re receiving right now,” Schemm says. “In the Kansas area, there’s a lot of areas that have a dollar or more basis in it.”

Schemm says that’s a problem when ARC and PLC payments are based upon a marketing year futures price.

“So when you have such a divergence in that cash price with the futures markets, it just makes those programs way less effective, especially from a price-sensitive program, that they really don’t support our farmers in trying to do some risk management.”

Schemm says those payments need to be more reflective of farmers’ actual experience.

Schemm spoke with Brownfield at the recent Farm Progress Show in central Iowa.

AUDIO: David Schemm