While the Members of Congress are out of town for Spring Recess,
the activity on the farm bill continues at a frenetic pace as staff works
through the myriad of issues, most of which are highly contentious.
Our staff sources tell NAWG that the yield updating issue is still
being debated, as both sides consider new options placed on the table.
NAWG has a variety of reasons for opposing yield updating. Those arguments
continue to be made as NAWG provides conferee staff with statistics and
examples to explain the problems of such a policy and how it hurts not
only wheat producers but also entire states whose economy depends on wheat
production.
The arguments against yield updating are valid ones for a wide range of
reasons. NAWG’s Domestic Policy committee and staff have considered the
consequences of yield updating, and after analysis it appears that yield
updating would have a number of detrimental effects.
Yield updating would direct more funding to regions with consistently
high or increasing crop production that enjoy economic stability while
removing assistance from regions of inconsistent production that are
already struggling economically. Yield updating also causes some concerns
about recouping payments with production, a concern that has been
acknowledged in conference debate. Crop planting decisions would likely be
skewed, resulting in greater production in other program crops.
On an International level, yield updating may complicate our trade
agreements. Updating yields threatens the green box classification of even
the fixed payments under current law. While this is a detriment to all of
agriculture, the wheat industry with its 50% export rate is particularly
vulnerable.
NAWG has learned that staffers are considering a number of variations
of this issue as they consider the result of a variety of options. One of
those options is the possibility of updating yields on the basis of county
records. This alternative suits neither the producer who seeks individual
updating, nor meets the needs of large areas covered by drought where
county averages are low. A staffer explained that many options are being
considered, and often rejected because they are unworkable.
NAWG has served as a source of information whenever possible providing
resources requested. Staffers have been inundated with pressure from
lobbyists as they seek to come to some agreement between the two parties
and between the two houses of Congress. The process has been difficult,
and the tension of long hours and seemingly uncompromisable issues has had
its toll as staffers work seven days a week to accomplish a report for
Members when they return. The Senate resumes business on April 8th and the
House on April 9th.
