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FOR
IMMEDIATE RELEASE
NATIONAL CORN GROWERS ASSOCIATION
Rhondalee A. Dean-Royce, 202.628.7001
NCGA’s
Vaughan Says Re-opening Farm Bill Jeopardizes Corn Producers
Lack of Comprehensive Energy Legislation underlying threat
WASHINGTON (May 20, 2004) – In
testimony today before the House Agriculture Subcommittee on General
Farm Commodities and Risk Management,
National Corn Growers Association (NCGA) President Dee Vaughan expressed
concerns that Congress is considering re-opening the farm bill.
Citing farm programs as a true success story and a viable safety net
for farmers, Vaughan, along with other commodity representatives, reiterated
current farm policy allows farmers more predictability with their crops,
better fiscal discipline and programs that limit assistance to the
times when aid is most needed.
Vaughan noted U.S. corn growers find themselves in a much more favorable
commodity market as a result of established farm programs that have
attributed to the growth in ethanol production, increases in exports
and record production levels. Therefore, he said, farmers need Congress
to stay the course and resist opening the farm bill.
“Recent projections for this year’s corn crop indicate
an increase of 800,000 acres to 71.9 million acres (harvested). Corn
utilization is expected to climb by 100 million bushels to a record
level exceeding 10.5 billion bushels. The outlook for corn is certainly
encouraging, but growers continue to face serious challenges,” he
said.
Midcourse changes, including proposals to further restrict farm support
payments are extremely inequitable, Vaughan continued, noting that
without the Farm Security and Rural Investment Act safety net, corn
growers would face serious challenges and uncertainty in the marketplace.
He explained farmers face many risks year in and year out and the safety
net of the countercyclical payment program protects U.S. growers
when prices plummet. Further analysis is needed to ensure the marketing
loan program keeps pace with local market changes. In the end, farmers
prefer to receive financial returns from the market.
Vaughan also touched on
NCGA’s concern over conservation programs
not being implemented and managed with the farmer in mind. Noting that
common problems still remain, he urged the committee to look at the
lack of outreach to growers, the domination of state technical committees
by non-farm organizations or individuals, failure to recognize the
economic challenges growers face, and minor conservation and environmental
problems.
Vaughan also pointed out
the underlying threat to corn growers throughout the U.S. – lack of a comprehensive energy package. “The
bottom line is that rising energy costs and increased costs for seed
and pesticides are largely responsible for driving up overall production
expenses by over 6 percent in 2003. Just last year, the entire farm
sector experienced a 30.8 percent increase in fuel expenses.”
Vaughan concluded, “Today’s
farm bill enables U.S. corn growers to make further advances in food
production, renewable energy
and conservation practices that would not be possible otherwise. In
fact, farm programs have helped to create new opportunities resulting
in additional benefits for both producers and the American taxpayer.”
To read the written testimony, visit www.ncga.com.
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 33,000 members,
25 affiliated state corn grower organizations and hundreds of thousands
of growers who contribute to state checkoff programs.
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