NCGA News














NCGA COMMENDS SENATE'S QUICK PASSAGE OF FARM BILL
May 8, 2002

FOR IMMEDIATE RELEASE

Contact: Kristin Young, NCGA, 202-628-7001
Sam Willett, NCGA, 202-628-7001

(WASHINGTON) May 8, 2002 -- After two days of debate, the U.S. Senate approved the farm bill, 64 to 35, Wednesday afternoon. The bill, which will boost commodity program support and will raise conservation spending by 80 percent, now goes to the president's desk for his already promised signature.

National Corn Growers Association (NCGA) President Tim Hume, a corn grower from Walsh, Colo., said, "With spring planting under way and the Freedom to Farm Act expiring in September, quick passage of the farm bill was critical. NCGA thanks members of the Senate for their prompt action in giving farmers an economic safety net for this crop year."

Once enacted, the legislation will:

  • Increase direct payments for corn to 28 cents per bushel over the next six years.
  • Include a new target-priced based countercyclical payment program, which will reduce U.S. agriculture's dependence on emergency assistance packages. NCGA has promoted the countercyclical payment program as essential to protecting farm income at times of depressed prices and adverse crop production.
  • Increase conservation program spending to a projected $13.2 billion over the next 10 years.
  • Increase the marketing loan rate for corn five percent to $1.98 per bushel, the first increase since the mid-1990s. After two years, the loan rate will be adjusted downward to $1.95 per bushel. At the same time, the target price for corn in the countercyclical program will rise from $2.60 per bushel to $2.63 per bushel.

The new bill, according to a recent analysis by the Food and Agriculture Policy Research Institute, projects an increase in annual net farm income by an average of $3.8 billion. Conservation programs will contribute an estimated $0.7 billion per year. Once the president signs the legislation into law, the U.S. Department of Agriculture will turn to the difficult task of implementing the new policies and programs over the next few months.

For more information regarding the farm bill, please visit NCGA's website at www.ncga.com.

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The National Corn Growers Association mission is to create and increase opportunities for corn growers in a changing world and to enhance corn's profitability and usage. NCGA represents more than 32,000 members, 25 affiliated state corn grower organizations and hundreds of thousands of growers who contribute to state checkoff programs.



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