WASHINGTON (March 6, 2002) – The Food and Agricultural Policy Research Institute’s (FAPRI) recent farm bill analysis underscores National Farmers Union’s (NFU) support of the Senate version.

"We have long said that the Senate farm bill provides a broader, more comprehensive safety net than the House version," said newly elected NFU President Dave Frederickson. "The recent FAPRI report not only backs up our farm bill assessment, it counters many of the statements by the bill’s opponents."

The FAPRI analysis demonstrates that the Senate farm bill will add nearly $7 billion to net farm income in 2002 and 2003 above House bill levels. In addition, FAPRI findings debunk claims that the Senate bill’s higher loan rates will greatly increase acreage and further depress prices. "These findings are timely and critical," added Frederickson. "The report comes at a time when farmers, who are reeling from depressed commodity prices, need the most help."

FAPRI, which collaborates with various universities to provide agricultural economic analysis, says the Senate farm bill:

-- provides a higher commodity safety net over the next two years than the House version, helping offset projections of declining market income;
-- offers higher returns to dairy producers, and
-- provides greater resources to conservation programs, including conservation incentive payments for working farmers and ranchers.

The FAPRI analysis also revealed some close comparisons between the House and Senate versions. The change in net farm income over a 10-year period was similar, and the likelihood of violating World Trade Organization limitations on domestic program spending was slightly less under the Senate bill, which also contradicts the proposal’s opponents (approximately a one in three chance).

Frederickson pointed out that the Senate farm bill better addresses agricultural concentration and is also favorable under current assessments by FAPRI and the Congressional Budget Office on the available budget.

"As the congressional conference committee strives for compromise between the two versions, our organization will urge conferees to adopt those provisions that are most beneficial to family farmers and ranchers as well as our rural communities," Frederickson said.

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