NGFA Urges No Expansion for CRP

March 2, 2000

The National Grain and Feed Association wants no increase in acreage for the Conservation Reserve Program. To increase the CRP to 40 million acres "appears once again to be an attempt to use the CRP as a supply control tool," says NGFA.

In a statement to the Senate Agricultural Appropriations Subcommittee, NGFA said previous policy attempts to idle productive U.S. farm land failed to increase commodity prices for producers over "any appreciable length of time." The association cited USDA data to show U.S. farm prices trended down throughout the 1980s despite a 14% reduction in planted acres.

NGFA also argued that increasing the size of the CRP places the United States in the role of competing against farm operators for productive farm land. "If land in a certain area is rented by the government (through the CRP), the CRP rental rate becomes a de facto price floor for rent prices of non-CRP land in the area," said NGFA.

Instead, NGFA urged Congress to examine alternative ways to assist producers during times when prices are low by providing a comprehensive plan offering producers more risk-management tools including a reasonable regulatory framework for agricultural trade options; creating a more "neutral system of risk-management incentives" to encourage producers to use those tools that are more appropriate and effective for their particular operations.

NGFA also suggested that government implement practical limits on the level of subsidization of federal crop insurance to avoid encouraging over production and depressing commodity prices, and also develop policies that encourage producers to begin marketing earlier in the production cycle.