WASHINGTON - Senators Chuck Grassley and Tim Johnson have requested that the deficit reduction committee save more than $1.5 billion by including their legislation that places a hard cap on farm payments at $250,000 per married couple ($125,000 per individual).

 

"Our bill maintains the much needed safety net for farmers so we are assured that the American people will have a safe, abundant and inexpensive food supply.  It also closes loopholes that have reduced urban support for the farm bill," Grassley said.  "This is an easy way to save some additional funds in what's a very difficult task for the committee."

 

"Particularly given the budget environment we're in, it's important that our farm programs are effectively targeted to those who need the assistance the most: the small and medium-sized family farmers.  I hope that our bill can be incorporated into any recommendations made by the deficit reduction committee," said Johnson.

 

Grassley and Johnson introduced the legislation on June 9, 2011.  The legislation would set a limit of $250,000 for married couples for farm payments in an attempt to better target farm program payments to family farmers.  Specifically, the bill caps direct payments at $40,000; counter-cyclical payments at $60,000; and marketing loan gains (including forfeitures), loan deficiency payments, and commodity certificates at $150,000.  The bill also improves the standard which the Department of Agriculture uses to determine farmers who are actively engaged in their operations.

 

Here is a copy of the text of the letter.  A signed copy of the letter can be found by clicking here.

 

 

October 14, 2011

 

The Honorable Patty Murray                         The Honorable Jeb Hensarling

Co-Chair                       Co-Chair

Joint Select Committee on Deficit Reduction            Joint Select Committee on Deficit Reduction

The Capitol                        The Capitol

Washington, D.C.                           Washington, D.C.

 

Dear Senator Murray and Representative Hensarling:

 

We are truly in uncharted territory with the debt reduction process now before us.  We are hard pressed to recall any process quite as unique as this one during our careers here in Congress.  You and the rest of the Joint Select Committee have a big task in front of you, and surely there will be some difficult decisions made in the coming weeks.

 

With all the hard decisions before you, we are providing a proposal that should be a common sense change to agriculture policy.  It is time for us to finally set hard payment limits on all commodity farm programs, as well as close the loopholes in current payment limitation law.

 

The specific changes we are proposing to the Joint Select Committee are contained in the bill we introduced, the Rural America Preservation Act of 2011 (S.1161).  That bill would do the following:

 

• It would establish caps of $20,000 on direct (fixed) payments, $30,000 on counter cyclical payments, and $75,000 on loan deficiency payments and marketing loan gains.

 

• The combined limit for married couples would be $250,000.  These limits would be reduced by varying amounts depending on the farmer's participation in ACRE, essentially setting the payment limitations at the effective caps, less the reductions in direct payments and marketing loan gains.

 

• The amendment improves the "measurable standard" by which USDA determines who should and should not receive farm payments.  It requires that management be personally provided on a regular, substantial, and continuous basis through direct supervision and direction of farming activities and labor and on-site services.

 

• It would provide savings of approximately $1.5 billion.

 

While we support commodity programs that provide a needed safety-net for farmers, the programs should not help big farmers get even bigger.  There's no problem with a farmer growing his operation, but the taxpayer should not have to subsidize it.  Under current law, nearly 70 percent of commodity farm payments go to the largest 10 percent of farmers.  There comes a point where some farms reach levels that allow them to weather the tough times on their own. Smaller farms do not have the same luxury.  In addition, setting a measurable standard for management of a farming operation will help prevent abuse of farm programs that is present under current law.

 

These proposed changes to payment limitations will help us target farm payments to those who really need them, the small- and medium-sized farmers who need a safety-net to help them get through rough patches as they produce this nation's food.

 

We understand there may be proposals submitted to the Joint Select Committee that would fundamentally change the commodity farm programs.  If one of these proposals is adopted by the Joint Select Committee, the language of our bill also would need to be revised to set a meaningful payment limitation for commodity programs.  Whatever the result, our main point is that setting a meaningful payment limitation and closing current loopholes in the law will provide savings and add integrity to the farm programs.  No matter what decision the Joint Select Committee makes regarding commodity programs, we urge you to ensure payment limitations and closing of loopholes plays a meaningful part.

 

We request the Joint Select Committee consider the policy reforms set out above, and if you have any questions, please contact us.

 

Sincerely,

 

 

 

Charles E. Grassley                       Tim Johnson

United States Senator

United States Senator

The National Family Farm Coalition expressed its deep disappointment at the news of Congressional approval of the free trade agreements with Korea, Colombia, and Panama. Board president Ben Burkett stated, "The U.S. alone has lost 300,000 family farmers since NAFTA was implemented, and we don't expect the lowered tariffs for beef and oranges to offset those numbers in the next 15 years."

Wisconsin farmer John Kinsman, who met with President Obama, USDA Secretary Vilsack and Secretary of Transportation Ray LaHood at the White House Rural Forum in Podesta, Iowa, was particularly disheartened. "We outlined our concerns about the trade agreements to the President and Secretary Vilsack, but they chose to ignore them. This Administration has, unfortunately, caved to the notion that any trade is good trade. They abandoned their campaign pledge to revisit our nation's trade policies, despite the continued loss of family-scale producers and the rural communities behind them."

The Coalition was one of 57 farm, fishing, food, faith, and social justice organizations who signed a September 14 letter to members of Congress urging opposition to all three trade agreements, demanding 'fair trade, not free trade.'

NFFC board vice president Dena Hoff noted, "The Korean Peasants League calculated that South Korea will lose nearly half of its agricultural production and its farmers, so their rural communities will decline just as those in the U.S. have. Instead of supporting localized food production and food sovereignty, the plan is to export highly processed foods that simply add to the pockets of transnational corporations."

Additional concerns included Colombia's human rights abuses and Panama's tax-haven status. Added Hoff, "This is morally wrong."

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Oct. 15 UI ANF Game Day Features First-Ever 'Card Stunt' and Former Hawkeye/NFL Players

WEST DES MOINES, IOWA - October 10, 2011 - Iowa is insulated against the worst of the nation's economic woes, thanks to the strength and influence of agriculture, according to a recent survey by Creighton University economists.  "Farming has contributed 5,000 manufacturing jobs in this state over the past year and that's just one more reason why we want to share the good news of today's agriculture," says Iowa Farm Bureau Federation (IFBF) President Craig Lang.

As part of the ANF partnership announced in August between the Iowa Farm Bureau and the University of Iowa Athletics Department, the football game this Saturday (Oct. 15) at historic Kinnick Stadium between the Iowa Hawkeyes and the Northwestern Wildcats has been designated "ANF Day at Kinnick." The game, to be televised live on the Big Ten Network (BTN) at 6 p.m. CT, will feature a host of activities celebrating why America Needs Farmers, including a pre-game autograph session with former Hawkeye stars Jared DeVries, Tim Dwight, Marv Cook, Ed Podolak and Gary Dolphin at the Legend's Tent in the Krause Family Plaza located immediately south of the stadium.

Other activities include Tailgate Toss with ANF prizes and the UI's first stadium 'card stunt', where all fans in the four grandstands of Kinnick Stadium will, on cue, hold them up and deliver two designs and messages for the enjoyment of the 70,000 people in the stadium and the national television audience watching on BTN.

ANF was first launched in 1985 during the height of the Farm Crisis by legendary Hawkeye coach Hayden Fry, who wanted to show an increasingly urban nation why agriculture matters.  "Farming has seen many innovations since then, which bring more food and energy choices and job opportunities to a new generation," says Lang, a fifth-generation Brooklyn, Iowa dairy farmer. "Today's farming isn't just about feeding people; it's about innovation in renewable energy, medicine, building materials, diagnostic tools, and more which combine what we know with what we grow."

Iowa farmers lead the nation in what they grow.  Just this week, the world celebrates the efficiency and sustainability of today's farmers through the 25^th anniversary of the World Food Prize honoring another Iowa farmer, Norman Borlaug. "In less than a generation, the world's population will need 100 percent more food than we are growing today on a finite amount of productive land.  IFBF is always looking for ways to show consumers how we plan to do that, while maintaining the integrity of the land, water, and rural communities where our farmers raise their own children," said Lang.

Iowa farmers realize with an increasing number of consumers curious about innovations in farming and food production, they need to find ways to make farming more transparent.  Larry Sailer, a Hardin County Farm Bureau member who farms near Iowa Falls, says, "Anything you can do to start a conversation with consumers about food and agriculture is good. We want to know what questions they have about what we do and why we do it. And in a high profile event, like an Iowa Hawkeye football game, it's literally a new way to show them this whole new playing field of modern agriculture."

For more information about the Iowa Farm Bureau/U of I ANF partnership and additional ANF Game Day activities or merchandise, click on www.americaneedsfarmers.org.

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I thought you might be interested to see these statements of support on USDA's Conservation Reserve Program, which announced today payments to help safeguard soil and water on 417,000 farms. See today's press release from USDA's Farm Service Agency at the end of this alert.

Thank you.

David Nomsen, Vice President of Governmental Affairs for Pheasants Forever and Quail Forever

"CRP delivers habitat to wildlife. Examples range from doubling and tripling local pheasant populations to adding two million ducks annually to fall migrations and preventing species from being listed as threatened and endangered. America needs a strong CRP, along with an entire suite of other voluntary incentive-based conservation programs, as the starting point to sustain continued agricultural production."

John Salazar, Colorado Agriculture Commissioner

"The Conservation Reserve Program has a significant environmental impact, not only across the country, but in Colorado as well. This program encourages sound conservation practices that will have lasting benefits for generations to come.  Agricultural producers have long held the responsibility of protecting our natural resources and the CRP is a vital resource in that effort."

Bill Northey, Iowa Agriculture Secretary

"The Conservation Reserve Program (CRP) is a very important USDA program helping farmers better care for their land and protect water quality. Iowa landowners continue to add acres in the continuous enrollment CRP, which is especially valuable in targeting benefits to the most sensitive acres. Over 50,000 Iowa farms have at least some of their acres enrolled in CRP, with payments to Iowa landowners exceeding $200 million."

 

Release No. PENDING                   

Contact:

Isabel Benemelis (202) 720-7809

 

USDA Issues Conservation Reserve Program Rental Payments to Help Safeguard Soil and Water on 417,000 Farms

WASHINGTON, Oct. 6, 2011–The U.S. Department of Agriculture (USDA) will distribute Conservation Reserve Program (CRP) rental payments to participants across the country. USDA's Farm Service Agency administers CRP, while technical support functions are provided by public and private sector partners. CRP is a voluntary program that helps agricultural producers safeguard environmentally sensitive land and provide millions of acres of habitat for game and non-game wildlife species. Participants enroll in CRP contracts for 10 to 15 years. Currently, total CRP enrollment stands at 29.9 million acres.

"CRP protects millions of acres of American topsoil from erosion and is designed to safeguard the America's natural resources," said FSA Administrator Bruce Nelson. "By reducing water runoff and sedimentation, CRP protects groundwater and helps improve the condition of lakes, rivers, ponds, and streams. Acreage enrolled in the CRP is planted to resource-conserving vegetative covers, making the program a major contributor to increased wildlife populations in many parts of the country."

The Commodity Credit Corporation (CCC) makes annual rental payments based on the agriculture rental value of the land, and it provides cost-share assistance for up to 50 percent of the participant's costs in establishing approved conservation practices.

USDA also issues non-rental CRP payments throughout the year. These payments include a 50 percent expense reimbursement for establishing and managing cover as well as incentive payments for enrolling eligible high priority conservation practices.

Beginning today, producers holding 752,000 contracts on 417,000 farms will receive an average CRP rental payment of $55.06 per acre. Producers will earn an average payment of $4,115 per farm enrolled in the program. Included in the totals are 414,000 contracts (5.1 million acres) for continuous CRP enrollments and 338,000 contracts (24.8 million acres) enrolled under general CRP. In all, the payments total approximately $1.7 billion.

A table, located below and at fsa.usda.gov/Internet/FSA_File/apportstate091311.pdf, lists acreage enrollments by state, number of contracts, number of farms, acres enrolled as of the end of the 2011 fiscal year and CRP projected rental payments for fiscal year 2012.

 

CRP ENROLLMENT AS OF SEPTEMBER 2011

AND OCTOBER 2011 RENTAL PAYMENTS

STATE	NUMBER OF CONTRACTS	NUMBER OF FARMS	ACRES ENROLLED	RENTAL PAYMENTS
ALABAMA	9,093	6,480	395,901	$18,141,752
ALASKA	42	27	19,013	$668,053
ARKANSAS	5,956	3,299	250,340	$14,936,106
CALIFORNIA	499	387	122,237	$4,659,639
COLORADO	12,719	6,194	2,235,943	$73,650,439
CONNECTICUT	15	13	140	$9,162
DELAWARE	665	349	6,862	$766,093
FLORIDA	1,324	1,070	56,729	$2,275,180
GEORGIA	9,095	6,465	319,923	$15,014,654
HAWAII	9	9	167	$9,632
IDAHO	5,213	2,993	670,935	$29,621,296
ILLINOIS	82,534	45,127	1,037,082	$118,721,765
INDIANA	38,337	21,468	285,976	$31,139,269
IOWA	106,772	53,601	1,666,077	$212,962,880
KANSAS	47,264	26,905	2,736,915	$109,709,259
KENTUCKY	17,636	9,463	358,796	$39,807,984
LOUISIANA	5,047	3,211	327,080	$20,126,120
MAINE	678	470	17,936	$928,192
MARYLAND	6,456	3,533	79,171	$10,912,633
MASSACHUSETTS	4	4	15	$2,566
MICHIGAN	15,236	8,723	229,102	$20,186,751
MINNESOTA	63,119	33,153	1,636,074	$110,093,906
MISSISSIPPI	19,879	12,498	852,099	$40,940,444
MISSOURI	36,532	21,133	1,362,793	$100,874,589
MONTANA	15,267	6,018	2,860,998	$91,784,050
NEBRASKA	28,249	15,840	1,079,983	$65,437,490
NEW HAMPSHIRE	5	5	58	$3,222
NEW JERSEY	290	203	2,586	$180,757
NEW MEXICO	2,006	1,292	455,015	$15,239,837
NEW YORK	2,885	2,038	53,152	$3,711,019
NORTH CAROLINA	8,088	5,279	117,787	$8,076,182
NORTH DAKOTA	34,445	16,864	2,648,185	$95,840,798
OHIO	38,342	21,362	344,240	$41,058,917
OKLAHOMA	7,501	5,081	862,412	$28,890,320
OREGON	4,296	2,271	551,008	$28,631,923
PENNSYLVANIA	12,127	7,620	220,386	$22,658,340
PUERTO RICO	19	19	2,032	$129,681
SOUTH CAROLINA	7,665	4,318	159,085	$6,093,795
SOUTH DAKOTA	31,894	14,884	1,161,293	$65,161,870
TENNESSEE	7,356	4,883	204,698	$13,718,350
TEXAS	22,121	16,240	3,457,323	$124,337,837
UTAH	883	535	163,197	$5,082,238
VERMONT	381	270	2,835	$282,166
VIRGINIA	5,860	4,473	63,255	$3,743,311
WASHINGTON	12,477	5,182	1,459,939	$81,331,355
WEST VIRGINIA	463	377	5,945	$437,397
WISCONSIN	24,647	15,103	398,918	$31,852,908
WYOMING	972	653	226,591	$6,161,981
NOT REPORED 1/	1	1	28	$2,284
TOTALS	752,364	417,386	31,168,255	$1,716,006,394

1/ Data from States with fewer than 4 contracts not reported.

 

For more information on CRP, producers should contact their local FSA office or visit FSA's website at www.fsa.usda.gov.