ASA Outlines Farm Bill Safety Net Ideas to Congress
American Soybean Association President Rick Ostlie told a House subcommittee what changes ASA wants in the Farm Bill's safety net.
Compiled by staff
Published: Mar 29, 2007
The 2007 Farm Bill's safety net for oilseed producers should include a soybean target price of $6.85 per bushel, the American Soybean Association says. ASA President spoke to the House Agriculture Subcommittee on General Farm Commodities Wednesday on the 2007 Farm Bill's Commodities Title.
Ostlie told the Subcommittee that "the current Farm Bill doesn't provide an adequate safety net for oilseed producers, that the soybean target price is out of balance with the support provided to other commodities, and must be increased."
"Oilseed producer organizations support the current structure of the 2002 Farm Bill," Ostlie says. "We believe the 'three-legged stool' that includes the marketing loan, the counter-cyclical program, and direct payments, combined with crop insurance and disaster assistance, can provide an adequate safety net for farmers in years of low prices and reduced production."
ASA says the soybean target price of $5.80 per bushel - which only triggers counter-cyclical payments when season average prices fall below $5.36 - is inadequate. The group calls for a $6.85 per bushel target, an effective target price of $6.41 after the 44 cent direct payment is subtracted.
"We believe that $5.36 per bushel is inadequate in protecting soybean producer income," Ostlie says.
Details of ASA's 2007 Farm Bill proposals, title by title, are available at: www.SoyGrowers.com/policy/2007FarmBill/ASA2007FB.PDF.
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Tagged: farm, soybean, farm bill, Bushel, ASA
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