Barley Growers Present Policy Views

March 9, 2001

The nation's barley growers focused testimony Thursday on marketing loans, AMTA payments and a counter-cyclical income safety net program at a House Agriculture Committee hearing. Dan Wiltse, president of the National Barley Growers Association, presented testimony on behalf of the barley industry.

Wiltse testified that the barley industry is endangered as a result of declining barley acres. Currently one half of barley produced in the United States is produced for malting purposes. According to Wiltse, even though premium prices are paid for malt barley, barley production is decreasing due to higher loan rates for other grain crops.

Producers believes the barley loan rate should be based on a five-year Olympic average of barley prices. The loan rate should be no less than 85% of average barley prices received by farmers during the 1996-2000 period, adjusted to reflect historical price differences between commodities.

Loan repayment rates should be determined by using an "all-barley" prices. Posted county prices should be set at levels that do not encourage producers to forfeit feed barley in the event marketing loan gains would otherwise be higher than LDP's. In addition, producers should be allowed to lock in LDP's at any time after a crop is planted, with payment after determination of actual production.

Current federal payment limitations on marketing loan gains and LDP's should be abolished so everyone can fully utilize this counter-cyclical program for all eligible production.

The AMTA crop payment should be extended without regard to domestic price fluctuations and should be decoupled from current and future production to avoid influencing planting decisions and the minimum barley AMTA payment level should be restored to the 27.2 cents/bushel affiliated with the 1999 AMTA program.

For a counter cyclical supplemental income program, barley producers support a funding level of no more than $3 billion per year. Payments would be made on historical base acreage and yields when market prices and the AMTA payment (including per-bushel or per-unit farm program payments) are less than an established market support level for each commodity.