2013 Farm Bill: ASA Reverses Position

Farm BillIn an effort to resolve longstanding differences on new farm legislation and address higher projected costs, the American Soybean Association (ASA) has announced it will support a 2013 Farm Bill which includes updating and extending the current Counter-Cyclical Program (CCP). ASA will continue to support the Supplemental Coverage Option (SCO) included in both the House and Senate versions of last year’s farm bills as a complement to federal crop insurance. ASA will also support offering a choice between “higher options” for these two programs, recognizing that producers in different growing regions have different priorities for protecting farm income.

ASA President Danny Murphy, a soybean farmer from Canton, MS, stated that “ASA strongly supported the Agricultural Risk Coverage (ARC) program in the Senate bill last year as an effective risk management tool designed to work with crop insurance. However, because of ARC’s higher cost and the need to find additional savings in the farm bill, we have decided to support updating and extending the CCP program included in current law,” he said.

Murphy added that “the decoupled CCP allows producers to respond to market signals rather than government programs in making their planting decisions, which has been a key priority for ASA during the farm bill debate. It also provides a safety net against several years of low prices, which has been important to supporters of the House bill.” He also added that “the SCO will provide revenue protection at the county level and is more defensible because, like crop insurance, it requires farmers to pay part of the cost of the premium.”

Earlier this month, the Congressional Budget Office (CBO) found both the Senate and House bills to be more expensive than it estimated last year. While the savings required for deficit reduction under any Congressional budget agreement have yet to be determined, the Agriculture Committees would need to find an additional $8 to $10 billion to achieve the same level of savings provided under their original bills.

Under its proposal, ASA would set Target Prices under the CCP at levels that reflect an average of recent market prices. Payments under the CCP are based on the underlying crop acreage bases on a farm rather than on current-year plantings. This is important in the event prices for commodities fall below their Target Prices, which would otherwise become a factor in planting decisions and could distort production. ASA’s support for a price-based program is contingent on decoupling program payments from current year production to avoid planting distortions.

“Agriculture faces a major challenge in getting the various stakeholders to find common ground and finish a comprehensive, long-term farm bill,” Murphy continued. “This policy adjustment demonstrates that ASA is committed to working with other commodities as well as both the Senate and House Agriculture Committees to support a safety net that can work for all farmers. It also addresses the need to provide savings for deficit reduction and make farm programs more defensible, while ensuring that our farmers have the risk management and crop insurance safety net they need.”

Provisions which were included in last year’s Senate and House farm bills. ASA also supports the Senate version of the cotton STAX program. ASA urges the Agriculture Committees to protect the current crop insurance program as the foundation of the farm safety net, and to adopt improvements that would make it a more viable risk management tool for producers of all commodities in all regions of the country.

Recognizing differences between commodities and growing regions, and depending on cost, ASA will support allowing producers to choose between higher Target Prices under the decoupled CCP program if they forego eligibility for SCO, or a higher premium subsidy under SCO if they forego eligibility under the CCP. “Providing options has been a priority for some producers, who prefer a choice of programs over a ‘one size fits all’ approach,” Murphy said.

“We recognize that ASA is making a significant change in our policy recommendations” said ASA First Vice President Ray Gaesser, a soybean farmer from Corning, IA. “But we must accept budget realities and the need to find additional savings if we are going to get a new farm bill done. Agriculture is the only sector that has been willing to reduce spending for deficit reduction. We’re prepared to make adjustments, provided we have policies that maintain a viable safety net for farm income and preserve planting flexibility.”

ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA’s advocacy efforts are made possible through voluntary farmer membership by farmers in 30 states where soybeans are grown.

Topics:

Leave a Reply

Legislation Stories

CPP, glyphosate, dicamba, atrazine,
Crop InputsReport: Congress Pressing EPA On Glyphosate Review Handling
May 16, 2016
Via Reuters.com reporter P.J. Huffstutter: U.S. lawmakers have asked EPA to explain why it published – and then withdrew – Read More
Anhydrous Ammonia tanks
LegislationARA: OSHA Announces PSM Formal Rulemaking Intentions
May 11, 2016
In separate communications earlier this week, the Occupational Safety and Health Administration (OSHA) announced plans to conduct formal rulemaking to Read More
Crop InputsBayer: 5 Reasons We Disagree With Maryland Neonic Ban
April 12, 2016
We’re disappointed that the Maryland legislature chose not to stand up for sound science and the rights of Maryland’s homeowners Read More
Michael Hazzan, Technical Manager at AcuTech, PSM Training
LegislationPreparing For Process Safety Management: What Ag Retailers Need To Do
April 3, 2016
By and large, ag retailers like to use three letter acronyms in their day-to-day operations. Most talk about getting a Read More
Trending Articles
Soybean Plant closeup
Industry NewsMonsanto Rejects Bayer Bid; Open To More Talks
May 25, 2016
Monsanto Co, the world’s largest seed company, turned down Bayer AG’s $62 billion acquisition bid as “incomplete and financially inadequate” Read More
Eric SfiligojPity The Monsanto Haters
May 23, 2016
An old saying goes thus: “Be careful what you wish for. You just might get it.” Given current events, there Read More
Monsanto Luling Plant
Crop InputsReport: Bayer Eyeing Monsanto For Possible Mega-Merger
May 16, 2016
Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s Read More
Aerial Drone
Precision AgA Deeper Dive Into The Future Of Precision Ag
May 9, 2016
For about two decades now, through the good and the bad times, the ups and the downs inherent in agriculture, Read More
Palmer amaranth in soybean stubble
HerbicidesWSSA: Billions In Potential Economic Losses From Uncontrolled Weeds
May 4, 2016
What losses would corn and soybean growers experience if they were forced to eliminate herbicides and other control techniques from Read More
Eric SfiligojReasons For Hope In Commodity Prices
May 2, 2016
For many months now, the doomsayers have ruled the day in agriculture. Too much supply with too little demand would Read More
Latest News
FertilizerSimplot Introduces Fused-Safe Ammonium Sulfate Nitrate …
May 31, 2016
The J. R. Simplot Co.’s new FŪSN fertilizer is now commercially available to growers. Simplot uses advanced technology to fuse Read More
Growmark FS Outlet
StewardshipGROWMARK Recognizes Crop Specialists For Advocating Sus…
May 31, 2016
Five crop specialists who have excelled in engaging farmers in sustainable best management practices are the recipients of the GROWMARK Read More
Fertilizer Dealer Supply
UncategorizedFertilizer Dealer Supply Joins GVM
May 31, 2016
GVM has added Fertilizer Dealer Supply (FDS) to its growing network of Mako dealers. “I met Mark Anderson some 20 years Read More
Crop InputsRepar Registers New Biopesticide With U.S. EPA
May 31, 2016
Repar Corp., with headquarters in Silver Spring, MD, has developed Homobrassinolide 0.1%, a new generation plant growth promoter containing homobrassinolide, Read More
Industry NewsAligned Ag Distributors Names New VP Market Development
May 31, 2016
Aligned Ag Distributors LLC announced this morning the appointment of Tim Krueger to the position of VP Market Development. Krueger Read More
FertilizerCreating The Proper Environment For Yield Increases Wit…
May 31, 2016
Finely tuned nutrient management plans are helping farmers throughout the U.S. improve nutrient use efficiency, increase return on investment (ROI) Read More
Industry NewsJ.R. Simplot Names New Wholesale Agriculture Sales Vice…
May 31, 2016
Doug Stone will be joining the J. R. Simplot Co. as vice president, Wholesale Agricultural Sales within the Simplot AgriBusiness Read More
Adjuvants loading
AdjuvantsISAA 2016 Highlights Adjuvant Trends
May 31, 2016
Adjuvants can significantly improve the performance of crop protection products. Farmers and formulators enhance the efficacy of sprays by using Read More
Monsanto Luling Plant
Eric SfiligojWhat’s Next For Monsanto?
May 31, 2016
For the folks at Monsanto’s headquarters in St. Louis, MO, it has been an eventful few weeks. Back on May Read More
Craig Houin Sunrise Cooperative iPad
Precision AgState Of Precision Ag 2016: Gut Check Time For Value
May 31, 2016
There’s no denying that precision technologies and practices are more vibrant than ever. Equipment manufacturers have fine-tuned the hardware for Read More
ManagementWashington Visit and Bayer/Monsanto Deal Update
May 26, 2016
Editors Paul Schrimpf and Eric Sfiligoj discusses a recent trip to DC and the latest news on the proposed pairing Read More
Fertilizer closeup in hand
Industry NewsVerdesian: Striking A Balance Between Yield & ROI
May 26, 2016
Finely tuned nutrient management plans are helping farmers throughout the U.S. improve nutrient use efficiency, increase return on investment (ROI) Read More
Crop InputsLand O’Lakes Announces Minnesota Water Quality Pa…
May 25, 2016
Governor Mark Dayton and Land O’Lakes, Inc. President and CEO Chris Policinski today announced a new public-private partnership to protect Read More
Soybean Plant closeup
Industry NewsMonsanto Rejects Bayer Bid; Open To More Talks
May 25, 2016
Monsanto Co, the world’s largest seed company, turned down Bayer AG’s $62 billion acquisition bid as “incomplete and financially inadequate” Read More
Corn close up
Crop InputsArysta LifeScience Establishes Global Headquarters In R…
May 25, 2016
Arysta LifeScience has announced plans to relocate its global headquarters from West Palm Beach, FL, to Cary, NC, over the Read More
fertilizer blending and storage, Top 100
BlendersCHS Dakota Expansion Features AGCO’s GSI InterSys…
May 25, 2016
The continued growth of precision agriculture has increased farmer use of customized fertilizer blends best-suited for their soil conditions. Several Read More
ManagementAgriculture 3.5: A Bumpy Road Ahead
May 24, 2016
You may have read my article a few years ago on Agriculture 3.0, which is a term I coined to Read More
Topcon’s X30 display with CropSpec sensors
EquipmentGPS Autosteer Systems: Product Updates From Precision A…
May 24, 2016
Throughout 2015 GPS Steering solutions continued to evolve from what was once an after-market add on, to today’s cab where Read More