Farm Bureau Outlines Farm Bill Priorities

WASHINGTON, D.C., June 28, 2001 – Calling current farm policy matters "issues of national security," American Farm Bureau Federation President Bob Stallman today outlined his organization's farm bill priorities for the Senate Agriculture Committee.

Stallman encouraged lawmakers to focus on farm opportunities, rather than farm problems as the committee and Congress look at the issues central to the next farm bill.

"American agriculture provides food security for this nation and much of the rest of the world," Stallman told the committee. "We contribute to our national economic security by running a positive balance of trade and generating off-farm employment. We contribute to the world's environmental security by making use of intensive, high-tech production that saves fragile lands.

"We can do much more."

Stallman said the public's investment in agriculture is key to the industry's survival and ultimate success. The investments in conservation, research, export promotion activities and technologies to derive energy from farm-grown commodities help bridge the gap between where agriculture is today and where the sector wants to be in the future.

"We have a vision of a profitable agriculture from growing markets, increasing value-added efforts, and providing voluntary, incentive-based conservation programs," Stallman said. "Our vision is to capture the 'farm opportunity' and, on a long-term basis, capture more of our income from the market place and less from government payments."

Confronted by depressed commodity prices, with higher input costs, increased global competition and expensive regulatory costs, producers will continue to need income support. Stallman said that the income support should be consistent with international trade obligations, but cautioned against any reduction in payment levels.

"Government payments have provided a substantial portion of farm income over the past three years," Stallman said. "A decrease in those payments now would be very detrimental to farm income and would begin to undermine the financial balance sheet of the farm sector."

Based on an average of $8 billion in budget authority for agriculture over the next few years, Farm Bureau prioritized its farm bill proposals to comply with that funding limit.

The organization urged lawmakers to:

• Continue Production Flexibility Contract (PFC) payments to current contract holders and increase the $4 billion PFC baseline by $500 million to allow oilseed production to be eligible for a contract.
• Rebalance loan rates.
• Implement a new counter-cyclical income support program to supplement revenue insurance products.
• Oppose a return to supply management programs or targeting benefits.
• Extend the dairy price support program.
• Create a non-recourse wool and mohair marketing loan program.
• Provide a $2 billion increase for conservation stewardship.
• Develop a workable peanut program.
• Rebalance the sugar loan rate.

Stallman said AFBF believes an additional $4 billion in funding will be necessary to carry out the organization's remaining priorities. Those include:

• Altering the Loan Deficiency Payment mechanism.
• Expanding and maintaining conservation and environmental programs.
• Expanding agricultural exports.
• Increasing rural economic development.
• Increasing agricultural research funding.

Contacts:

Christopher Noun (202) 484-3612 chrisn@fb.org

Dave Lane (202) 484-3610 davel@fb.org

This page was last modified Fri Jun 29, 2001 at 01:18 pm