NCGA
Urges Congress Not to Re-open Farm Bill in Wake of President’s
Budget Release (2-9-05)
President George W. Bush’s
fiscal year (FY) 2006 budget plan calls for significant cuts to
farm support programs at a time when U.S. corn farmers are experiencing
the lowest commodity prices in recent memory, according to the National
Corn Growers Association (NCGA).
Speaking on CNN’s
“American Morning” Tuesday, NCGA President Leon Corzine
explained what the farm bill really means to growers and to consumers.
“This farm program
does help us provide some stability. It's truly a safety net program,”
he said. “What that means is that we provide food, feed, fiber
and now also fuel to the American consumer. The safety net program
provides the stability when we need it the most, it means food security
for the U.S. consumer, as well as working toward energy security
with what we're doing with corn.”
Corzine also pointed
out the track record of the 2002 farm bill. “We have saved
a little over $15 billion in the first three years of the program
versus what it was anticipated (to cost) when the bill was passed,”
he said. “We must educate consumers on the benefits of farm
programs. The food on their tables comes from American farmers,
the clothes they wear are from agriculture, and now a portion of
the fuel in their cars is from U.S. corn growers. The current farm
bill must remain unchanged.”
Corzine said that while
all federal programs must be willing to pitch in to reduce the federal
government deficit, America’s agriculture sector is being
asked to give up more than beneficiaries of other federal support
programs.
“I believe it is
unfair to ask agriculture to take a higher percentage cut,”
said Corzine. “But I also believe that this is the first step
in a very long process that will take months to get through Congress.
NCGA is working together with our affiliated states to explain to
Congress and to the consumer why we need the farm bill to stay in
the form in which it was passed in 2002.”
Secretary of Agriculture
Mike Johanns on Monday noted that actual expenditures for FY 2005
will rise from about $72 billion in 2004 to $94 billion in FY 2005
reflecting a $7 billion increase for nutrition assistance, disaster
payments, and higher farm support expenditures in response to falling
commodity prices.
The budget calls for
lowering the payment limit cap for “individuals” to
$250,000 for commodity payments (including loan deficiency payments
and marketing loan gains) and eliminating the three-entity rule.
Marketing assistance loans would be capped at historical production
levels, the CCC bioenergy incentive program will be reduced from
the authorized $150 million to $60 million, tying receipt of direct
payments to a minimum buy-up level of crop insurance, restructuring
premium rates to better reflect historical losses, and crop insurance
program delivery cost reductions.
The federal crop insurance
program’s funding would also be cut $140 million annually
beginning in FY 2007. Producers are expected to pay about $1.5 billion
in premiums for $41 billion in protection for FY 2006.
Corzine noted that the
net effect of these changes is essentially a rewrite of the farm
bill in the middle of its intended term.