Grain, Soybean Producers Talk Policy

July 13, 2001

The National Corn Growers and American Soybean Associations were among the organizations testifying Thursday before the Senate Agriculture Committee on farm policy. The NCGA called for a counter cyclical payment program while the ASA wants "balanced" programs that do not favor one crop over another.

Lee Klein, Battle Creek, NE, NCGA president, said the centerpiece of the corn growers' proposal. "It is NCGA's goal to develop new uses for corn; to develop and build a renewable products industry with corn as the chief feedstock; to increase utilization of corn; and to increase the opportunity for grower profits," he said.

He added that the next farm bill should provide producers with "opportunities in the market place with minimal interference in production decisions and that includes a safety net against those economic forces that are beyond producers' control. We believe we have developed a program that will do just that."

Klein concluded: "We believe we have identified very real problems with today's farm policy and proposed a policy that we believe addresses them. We also contend that this policy proposal is both less production- and trade-distorting than current policy, and offers this country's farmers a real safety net when it is needed most."

ASA President Tony Anderson noted several areas the association wants addressed:

–Agricultural trade must be given the same weight in U.S. economic and foreing policy decisions as accorded by primary international competitors and customers;

–Export assistance and promotion programs authorized by the World Trade Organization must be "fully and aggressively" used;

–"Ineffective unilateral economic sanctions that discredit U.S. reliability as a supplier and encourage our competitors to expand production and exports must be rescinded and prohibited";

–Barriers to U.S. farm exports based on non-scientific standards must be "challenged and overcome";

–Domestic farm programs should be "equitable and balanced among program crops," defined as all loan-eligible crops that can be planted on the same crop land on a farm. "No program should favor production of one crop over another."

He said ASA supports planting flexibility, the non-recourse marketing loan program and "oppose(s) any limitations on marketing loan benefits, fixed income payments or any counter cyclical income support payments."