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FSA Head Talks Farm Programs

USDA's Farm Service Agency administers and manages farm commodity, credit, conservation, disaster and loan programs through a network of federal, state and county offices. Farm Futures sat down with FSA Administrator Jonathan Coppess earlier this fall at the Farm Science Review in Ohio to talk about some of the main programs FSA administers and what it means to farmers.

Coppess grew up on his family's corn and soybean farm in west-central Ohio, where his father and brother continue the seven-generation farming operation. He holds a bachelor's degree from Miami University, Oxford, Ohio, and a law degree from The George Washington University Law School.

Farm Futures: The 2008 Farm Bill had the first permanent disaster program known as SURE (Supplemental Revenue Assistance Program) to prevent ad hoc disaster assistance. Sen. Blanche Lincoln worked to get an emergency bill passed this year. What does that say about the effectiveness of SURE?

Coppess: SURE was designed to end ad hoc assistance. So far FSA has paid out $1.5 billion since 2008. The payments do lag the losses, ranging from 12 to 18 months. We haven't announced the sign-up dates for the 2009 crop year yet as we are evaluating our workload. As it operated in 2008, we found that in some areas, such as the southeast, there was a gap in coverage that SURE wasn't able to provide the needed assistance.

FF: What do you see as some of the important considerations heading into the next farm bill?

Coppess: Farmers remain price takers and have variables such as markets, input prices and weather. The challenge is making the safety net more effective. SURE and ACRE have helped with that. The larger discussion will focus on what is the right safety net and how does it best work?

FF: ACRE was hailed as the most promising program of the 2008 Farm Bill. How do you explain the producer response and what problems do you see with ACRE?

Coppess: We have found sign-ups were low because of the complexity of the program. So far only 8% of farmers and 13-14% of base national acres signed up for the program. Some farmers have complained that the program doesn't target their farm well enough. However, when this program was scored during the writing of the farm bill it was too expensive to target it closer to the farm level.

FF: Direct payments have a bull's eye on their back when it comes to budget cuts. How do you see that playing out in the future?

Coppess: Direct payments are where the baseline dollars are in the ag budget. Politically they come under scrutiny when there are higher prices. The public asks "why are you making payments when farmers are making money?" From the farmers' perspective, it is risk management. Farmers know those payments are coming and can take that to the banker and show solid income. Farming is a risky business. In all conversations about cutting farm programs, direct payments are mentioned. It is the biggest target and always in the mix.