National Corn Growers Unveils Farm Bill Proposal

Posted on September 13, 2011 by Cindy

ncga The National Corn Growers Association has officially unveiled its idea for a new disaster assistance title in the next farm bill.

NCGA is proposing the Agriculture Disaster Assistance Program (ADAP) “that will modify and replace the existing Average Crop Revenue Election Program and provide a more effective and responsive safety net for growers.”

“Responding to a charge by our voting delegates to investigate transitioning direct payments into programs that allow producers the ability to mitigate risk, our grower-led Public Policy Action Team developed a crop-specific, revenue-based risk management tool that provides a safety net when growers are facing a loss,” said NCGA President Bart Schott. “We are focusing on simplification and faster delivery of assistance when it is needed.”

ADAP builds on the existing structure of ACRE and is designed to address the need for simplification and elimination of overlapping coverage with individual crop insurance. Changes include the use of harvest prices and crop reporting districts to set the crop revenue guarantee and would establish a guarantee based on the five-year Olympic average of revenue.

Corn and Ethanol Catch up at FPS

Posted on September 2, 2011 by Cindy

farm progress show 2011 The media tent is always a great place for people in the industry to catch up with each other – like Renewable Fuels Association president and CEO Bob Dinneen and National Corn Growers Association incoming president Garry Niemeyer of Auburn, Illinois.

I talked with both of them about challenges in Washington, ethanol policies, and the ability of corn growers to meet all demands even in the toughest weather years.

Bob is frustrated with the climate in Washington and the inability of Congress to get anything done, but he is always amazed by the ability of the nation’s farmers to do their job. “The fact of the matter is, the American farmer is the most productive and efficient in the world,” Bob says. “We will get through this and there will be enough supply to meet the needs for grain that exist.”

Listen to or download my interview with Bob here. RFA CEO Bob Dinneen

Garry says he expects his corn crop this year to be just about average and he notes that the latest USDA forecast still expects the corn crop to be the third largest in history. “Can you imagine what it would be like if we had 1980 hybrids during this type of a weather situation? We probably would be looking at a disaster,” Garry said. “That’s the importance of this show. We’re here looking at the technology in seed, machinery, guidance systems … we have the tools to do it but Mother Nature could help out a little better!”

Listen to or download my interview with Garry here. NCGA 1st VP Garry Niemeyer

2011 Farm Progress Show Photo Album

AgWired Coverage of the Farm Progress Show is sponsored by New Holland GROWMARK Trellis Growing Systems

Politics at Farm Progress

Posted on August 31, 2011 by Cindy

Farm Progress Show is always a great venue for policy makers to meet with farmers and talk about issues important to them, like a new farm bill and government regulations.

farm progress show 2011 National Corn Growers Association (NCGA) First Vice President Garry Niemeyer brought his own U.S. Representative Bobby Schilling (R-IL) in for a press conference on Tuesday to share some of perspectives as a freshman congressman and new member of the House Agriculture Committee. “I think as most people are aware, it’s been quite a storm in Washington DC the last seven months,” Schilling said. “Coming out of the business sector right into Congress, it’s been quite frustrating for me to see what’s happening in our nation’s capitol.”

As far as the Farm Bill is concerned, Schilling says the “super committee” on reducing the deficit may make decisions that will impact farm programs so the agriculture committee needs to make recommendations on how spending could be cut. “Because if we don’t they will just go after dollar amounts without looking at where appropriate cuts could be made,” he said.

Listen to some of Congressman Schilling’s comments during the press conference here. Cong. Bobby Schilling

farm progress show 2011 Congressman Tim Johnson (R-IL), who also serves on the House Agriculture Committee, came by the Farm Progress Show on Wednesday to visit with leadership of the Illinois corn and soybean growers associations. He is pictured here(striped shirt) with Illinois Soybean Association (ASA) treasurer Doug Winter, Illinois Corn Growers president Jim Reed and ISA president Matt Hughes.

Johnson says he is optimistic that they can come up with a Farm Bill that is workable, meets budget constraints and still has a safety net for farmers. “And we need to make sure the House Agriculture Committee and people who know American agriculture are the people framing policy,” Johnson said.

Johnson also shares the concerns that farmers in the state have about government regulations making it more difficult to farm. “USDA, USDOT and most particularly EPA tying our left hand is a real burden,” he said. “This administration more than any other administration in history has done more to damage the ability of farmers to make a living.”

Meghan Grebner of Brownfield Ag News and I interviewed Cong. Johnson together. Cong. Tim Johnson

2011 Farm Progress Show Photo Album

AgWired Coverage of the Farm Progress Show is sponsored by New Holland GROWMARK Trellis Growing Systems

NCGA and Pioneer Offer Growers NASCAR Dream Day

Posted on August 1, 2011 by Cindy

Start your engines, NASCAR fans, because the National Corn Growers Association (NCGA) and Pioneer HI-Bred are offering NCGA members a chance to win a NASCAR dream day to the Irwin Tools Night Race at Bristol Motor Speedway, Bristol, Tenn., on Saturday, Aug. 27.

The dream day race package includes access to the DuPont-Pioneer hospitality tent, a pit tour, and a visit with racing legend Jeff Gordon. To enter, just visit www.ncga.com/racing and sign up for NASCAR-NCGA’s Fuel for Members Program before 12 pm central time this Friday, Aug. 5. The winner will be randomly selected from those NCGA members who have signed up for the Fuel for Members program.

Fuel for Members is one of the benefits of belonging to NCGA and state corn grower associations, providing exclusive access to discounted NASCAR tickets and merchandise and insider access to America’s most popular sport. Plus, members receive discounts on goods and services from a wide range of NASCAR partners including: UPS, DirecTV, Office Depot and MGM Resorts.

NCGA is part of the American Ethanol partnership with NASCAR, which began racing on 15% ethanol this season.

Don’t delay – sign up today!

Still Time to Enter Corn Yield Contest

Posted on July 20, 2011 by Cindy

Corn growers still have a few more days to submit entries for this year’s National Corn Growers Association (NCGA) National Corn Yield Contest.

Due to widespread planting delays, the final entry deadline for the popular contest was extended an extra 10 days, to July 25. Entries must be submitted online or postmarked on or before that date and are subject to the standard entry fee of $110 per entry, according to NCGA.

“It was a late, long planting season for many growers throughout the Corn Belt,” said Steve Ebke, chairman of the Production and Stewardship Action Team. “At NCGA, we recognize the strain farmers experience while attempting to get the crop in the ground. Furthermore, early delays can cause tasks to pile up. We want every grower interested to have an opportunity to participate in the contest and hope that by extending the deadline we make it easier for them to do so.”

Winners receive national recognition in publications such as the NCYC Corn Yield Guide, as well as cash trips or other awards from participating sponsoring seed, chemical and crop protection companies. In Nashville, Tenn., during the 2012 Commodity Classic, state winners will be presented awards at the NCYC Breakfast and national winners will receive awards at the Awards Banquet.

Find out all the important info about the NCYC on-line here.

Corn Growers Honor Senator Conrad

Posted on July 14, 2011 by Cindy

ncga kent conrad National Corn Growers Association (NCGA) President Bart Schott and his wife Linsey of Kulm, ND were pleased to present this year’s NCGA President’s Award to their Senator Kent Conrad (D-N.D.) during Corn Congress events this week in Washington. The President’s Award is given annually to a leader who has worked to advance issues important to corn growers and agriculture.

“I have had the privilege of working with Senator Conrad for several years both on the state and national levels,” NCGA President Bart Schott, a grower from Kulm, N.D., said. “NCGA greatly appreciates his continued leadership and support for the agriculture community, including his work on biofuels legislation and two previous farm bills.”

“I am honored to receive this award from the National Corn Growers Association,”Sen. Conrad said. “America’s agriculture producers are the backbone of our nation. They deliver the safest, healthiest and least expensive food supply anywhere in the world.”

Senator Conrad is a fifth-generation North Dakotan and has represented his home state in Washington for five successive elections. During his 20-plus years as an advocate for North Dakota and agriculture, Senator Conrad helped write the 2002 and 2008 farm bills and fought unfair trade practices that hurt North Dakota’s economy. He has also introduced comprehensive energy legislation that would make the United States more energy independent.

NCGA’s Tolman Receives FEW High Octane Award

Posted on June 28, 2011 by Chuck

I am attending the 2011 Fuel Ethanol Workshop which is being held in Indianapolis, IN. It’s the “technical” conference for the industry where lots of the latest in technology and processes are presented in multiple, simultaneous workshops. This morning it was also where the 2011 FEW High Octane Award was presented.

Receiving the award is Rick Tolman, CEO, National Corn Growers Association. The award was presented by Tom Bryan, BBI International. Rick made a few comments about working in support of the industry. He says there are three main reasons for why he does it. First, it’s the economy, to take some of the money that’s going overseas and invest it in rural America. Then it’s the environment, trying to bring the reality of a clean, renewable energy source to the U.S. and reduce our GHG emissions. And third it’s national security, to bring home the men and women overseas trying to protect the flow of oil. You can listen to or download his remarks here: Rick Tolman Award Remarks

You will find much more coverage of the 2011 FEW over on our sister website, Domestic Fuel. Feel free to follow the Twitter hashtag, #FEW11 too.

2011 FEW Photo Album

Our coverage of the 2011 Fuel Ethanol Workshop is being made possible by the Renewable Fuels Association.

NCYC Early Registration Deadline

Posted on June 21, 2011 by Chuck

The early registration deadline is coming up this Saturday for the National Corn Yield Contest conducted by the National Corn Growers Association. Get your entry in now and save $80 or wait and pay more later . Growers can do it online now.

“With the early registration deadline approaching rapidly, it is a great time for entrants to try out the new online submission system,” said Production and Stewardship Action Team Chair Steve Ebke. “The software streamlines the process, saving both time and, until Saturday, money.”

The new software allows growers to enter the contest and join NCGA and their state association. The web-based system simplifies data submission, allows users to view their submissions at any time and will allow for quick, efficient use of contest data.

Seed representatives and entrants are welcome to enter through this new platform. Current members should have their NCGA membership ID ready. Non-members wishing to participate can quickly fill out the online membership profile and enter immediately following completion of this form. Registration will continue until July 15, with entries not meeting the June 25 deadline available at the full $110 rate.

Click here for more information, rules and forms.

Senate Votes to End Ethanol Blenders Tax Credit

Posted on June 16, 2011 by Cindy

An amendment to end the ethanol blenders tax credit (VEETC) passed the Senate today by 73 to 27, a vote that some agricultural groups applaud while some denounce, while the ethanol industry says it is unlikely to matter.

“Today the Senate voted against rural America and domestic, renewable energy, and in favor of more foreign oil,” said National Corn Growers Association President Bart Schott of North Dakota.

The Renewable Fuels Association calls the vote disappointing but “ultimately inconsequential” since the underlying economic development bill to which this amendment is attached is “unlikely to make it to the president’s desk.” American Coalition for Ethanol (ACE) Executive Vice President Brian Jennings added that the votes are “symbolic and will not become law. The ethanol industry notes that just last month, the Senate voted to protect tax subsidies for the oil industry. “Ironically, the United States Senate has spent the better part of a week on an amendment that is unconstitutional and going nowhere, even while the news pours in that OPEC has hit a high-water mark of $1 trillion in revenues,” said Growth Energy CEO Tom Buis

U.S. Agriculture Secretary Tom Vilsack says the Obama administration opposes an abrupt end to the VEETC. “We need reforms and a smarter biofuels program, but simply cutting off support for the industry isn’t the right approach. Therefore, we oppose a straight repeal of the Volumetric Ethanol Excise Tax Credit (VEETC) and efforts to block biofuels infrastructure programs.”

On the other side of the corn field, National Cattlemens Beef Association (NCBA) President Bill Donald called the vote “a giant step toward leveling the playing field for a bushel of corn” noting that cattle producers “support our nation’s commitment to reducing our dependence on foreign oil. But after 30 years and more than $30 billion in taxpayer support, the day has come to let the mature corn-based ethanol industry stand on its own two feet.”

A coalition of groups, including food retailers, poultry organizations and environmental interests also applauded the vote as “the start of a new era for U.S. biofuels policy.”

Immediately after the vote to end the VEETC, senators defeated an amendment that would have stopped federal funding for ethanol blender pumps by a vote of 41 to 59. At the same time, the House approved an amendment to the ag appropriations bill for the same thing by 283 to 128. The appropriations measure must still go through the Senate and is likely to change there.

Pam Johnson Elected National Corn Growers VP

Posted on June 15, 2011 by Cindy

An Iowa farm woman is on track to be the first female president of the National Corn Growers Association next year.

pam johnson ncga The National Corn Growers Association Corn Board today elected Pam Johnson of Iowa to become the organization’s first vice president for the next fiscal year, which begins Oct. 1. When she becomes NCGA president in October 2012, Johnson will be the first woman to lead NCGA.

Johnson farms with her husband and two sons, raises corn and soybeans on a 2,700-acre farm in Floyd, Iowa. They also manage a seed business and are members in value-added businesses such as ethanol and biodiesel. Johnson is the board liaison to the NCGA Grower Services Action Team and has served on the Finance Committee and has chaired both the Bylaws Committee and the NCGA Research and Business Development Action Team.

Pam has already shown herself to be an advocate for agriculture and a leader in the industry. I interviewed her at Commodity Classic this year about how she stood up for women in agriculture in response to criticism by the Environmental Working Group. As liaison to the Grower Services Action Team, Pam had the pleasure at the Classic of presenting five college students with $1,000 scholarships as part of the NCGA Academic Excellence in Agriculture Scholarship Program sponsored by BASF Crop Protection.

Chuck also interviewed Pam last fall during the TATT Global Farmer to Farmer Roundtable in Des Moines.

American Ethanol on the Kansas Speedway

Posted on June 6, 2011 by Cindy

American Ethanol was prominently displayed at the Kansas Speedway on Sunday for the inaugural Sprint Cup Series STP 400 race.

The American Ethanol logo and paint scheme was on Clint Bowyer’s No. 33 Chevrolet and larger than life along the backstretch wall of the 1.5-mile Kansas Speedway to spotlight the partnership between the National Corn Growers, ethanol and NASCAR, which switched to a 15% ethanol blend for fuel in all series this year.

About 1200 farmers and ethanol producers from all over the country were there to cheer on Bowyer, following his first place win Saturday in the Camping World Truck Series, including National Corn Growers Association president Bart Schott (right) of North Dakota and NCGA chairman Darrin Ihnen of South Dakota.

“This is the kick off and we’ve been waiting for it to come,” Bart said on Sunday. “NASCAR has an 80 million fan base that is getting some real positive messages on burning a higher blend of ethanol.”

Darrin says educating fans about agriculture and ethanol is the main goal of the corn growers involvement in NASCAR, especially how it is helping make the country less dependent on foreign oil. “The NASCAR fans, when they were polled, energy security is one of their major concerns,” said Ihnen.

I asked them how the planting season has been so far on their farms and Bart says he managed to plant more corn than he expected and is almost done with soybean. Darrin has been in delay mode thanks to excessive moisture, but he’s not worried. “It’s a long season,” Darrin said.

Listen to or download my interview with Bart and Darrin here: National Corn Growers at Kansas Speedway

This was my first NASCAR race ever and I made it through with only sore muscles and a pretty good sunburn. It was interesting – very loud and very hot! – but I really liked the challenge of taking photos of fast cars on a track and thanks to the National Corn Growers for really making it a great day at the races! There’s more stories from the race on Domestic Fuel and Corn Commentary.

See all the race photos here: American Ethanol at NASCAR Sprint Cup STP 400

Marquis Energy Sees Great NASCAR Ethanol Opportunity

Posted on June 3, 2011 by Chuck

The President of Marquis Energy is Mark Marquis, seen here introducing NASCAR driver Kenny Wallace to the crowd attending yesterday’s event held at the Hennepin ethanol plant. I spoke with Mark and learned that Marquis Energy is a real family type business that he had built after growing up on a family farm in this area and branching out into the grain business. In my interview with him you’ll hear him talk about plans to double the size of the Hennepin plant.

Mark is a Growth Energy board member. He says the organization saw the long term agreement with NASCAR as a great opportunity to help get in front of American consumers who will feel more confident about putting higher blends of ethanol in their cars after seeing how well it performs in the race cars. They’ve accomplished that through American Ethanol, a partnership with the National Corn Growers Association. The local NASCAR Nationwide Series STP 300 race on Saturday provided his company with an opportunity to make a special contribution to the effort. He says NASCAR is very popular with his employees and the farmers who send in about 150 trucks of corn a day to the plant. Mark Marquis Interview

I’ll be out on location this morning at Chicagoland Speedway getting my media credentials and checking out the action in preparation for tomorrow’s race.

You can hear Mark’s introduction of Kenny and Kenny’s remarks in this video clip:

Marquis Energy Appreciation Day Photos

Getting Ready To See NASCAR Burn Ethanol

Posted on June 2, 2011 by Chuck

Cindy and I are going NASCAR this weekend with most of our activity being posted onto Domestic Fuel.com. I’ll start things off with the Nationwide Series STP 300 at Chicagoland Speedway on Saturday with support from the Illinois Corn Marketing Board. Then Cindy will pick up at the Sprint Cup Series STP 400 at Kansas Speedway on Sunday with support from the National Corn Growers Association. I know you were wondering today, “Chuck seems quiet, must be traveling.” Yep. You got it.

I drove to Marquis Energy in Hennepin, IL for their Appreciation Day. The company is a major sponsor of the #09 car that Kenny Wallace will be driving in Joliet, IL on Saturday. Kenny and the actual car he’ll be driving (pictured) were on hand. So, there will be lots more to come over the next several days. In the meantime you can see photos, including more of the car and Kenny online: Marquis Energy Appreciation Day Photos.

Corn Farmers Coalition Ads Target Lawmakers

Posted on June 2, 2011 by Cindy

corn For the third year in a row, the Corn Farmers Coalition (CFC) is targeting policy makers with information about the nation’s corn crop and the people who produce it.

The new ads highlighting corn farming families showed up this week all over Union Station, an important venue for reaching policymakers inside “The Beltway,” as well as in Capital Hill publications, radio, frequently used web sites, the Metro and Reagan National Airport.

“Even in the 21st Century, corn farming remains a family operation,” said Kansas Corn Commission Chairman Mike Brzon, a farmer from Courtland, Kan. “The family farmer growing corn for a hungry world isn’t a myth, but a critical economic engine for our country and it’s important that policy makers and influencers realize this.”

“Last year, we saw a good response to our positive and proactive efforts, and this year we have many new people inside the Beltway to educate,” said NCGA President Bart Schott of North Dakota. “As urban and suburban America gets further removed from the agricultural roots that made our nation strong, we’re saying it’s time again for everyone to come home to the farm.”

The coalition will also be meeting with media, members of Congress, environmental groups and others to talk about how U.S. farmers, using the latest technologies, will continue to expand yields and how this productivity can be a bright spot in an otherwise struggling economy. The combined effort will continue until Congress recesses in August.

Ag Groups Call For Trade Agreement Approval

Posted on May 24, 2011 by Cindy

Since May is both World Trade Month and National Beef Month, it was appropriate for the National Cattlemen’s Beef Association (NCBA) to host a news conference on Capitol Hill today urging the Obama administration to send pending free trade agreements with Colombia, Panama and South Korea to Congress immediately.

NCBA was joined by the American Farm Bureau Federation (AFBF), American Soybean Association (ASA), National Association of Wheat Growers (NAWG), National Corn Growers Association (NCGA), and National Pork Producers Council (NPPC). NCBA President Bill Donald started it all off by saying that the pending trade agreements are long overdue and the unprecedented delay is putting U.S. agriculture at a competitive disadvantage.

“Members of Congress, prepare your yes votes and push all three of these agreements across the finish line,” Donald said. “This is a powerful stimulus package for the American people, a stimulus package that will not cost the American taxpayers one damn dime.”

To put in perspective how long the trade agreements have been sitting on the shelf, NAWG CEO Dana Peterson noted that Twitter was just a baby, and that babies born when they were signed are entering kindergarten.

Here are opening statements from the conference: Ag Trade Press Conference

Lots of Trade Talking This Week

Posted on May 13, 2011 by Cindy

Since May is World Trade Month, you would think it would be a great time for Congress to pass those pesky pending Free Trade Agreements with Korea, Colombia and Panama that have been awaiting approval for years. Several of the nation’s largest agricultural organizations who testified before the House Agriculture Committee this week on why it is so important to get those agreements operating think so. Actually, most would say that last May World Trade Month would have been better!

Among those testifying was National Cattlemen’s Beef Association president Bill Donald of Montana. “Each day that goes by without implementing these agreements is another day we risk losing American jobs by losing market share to other countries. With 96 percent of the world’s consumers living outside of the United States, future growth of the U.S. economy depends upon our ability to produce and sell products competitively in the global marketplace,” said Donald. May is also National Beef Month, coincidentally.

National Corn Growers Association CEO Rick Tolman told the committee that passing the FTAs and developing new markets for our country’s agricultural products will help our sector lead the nation in economic growth and international competitiveness. “The United States is the largest corn producer and exporter in the world, and exports of corn and corn co-products are essential to producer income,” Tolman said. “Our members want to maintain current export markets and significantly increase demand for corn through opportunities in value-added corn products.”

The committee also heard from American Farm Bureau Federation president Bob Stallman, which you can see on the AFBF website. “These trade agreements are not only important to the bottom line of America’s farmers and ranchers but the economic health of our rural communities and the overall U.S. economy,” said Stallman. “There is a long supply chain made up of American workers who get products from the farm gate to foreign consumers.”

Agriculture Secretary Tom Vilsack also noted the importance of the FTAs for jobs in this country. “”These three trade agreements will create jobs. Through agricultural exports alone, they will yield over $2.3 billion in sales and help support more than 19,000 American jobs in agriculture and related industries,” said Vilsack.

Some progress has been seen recently on moving the FTAs forward and U.S. Trade Representative Ron Kirk indicated to the committee that all three agreements will be submitted to Congress with a view to having them considered this year.

Agriculture Excited About Colombia Free Trade News

Posted on April 6, 2011 by Cindy

It’s taken over four years to get to this point, but some action is finally happening on the Colombia Trade Promotion Agreement (TPA) and U.S. agriculture interests are thrilled.

President Obama announced today that an agreement has been reached on the deal that was signed by the U.S. Trade Representative and the Colombian trade minister on Nov. 22, 2006. The agreement will now be sent to Congress to ratify. It is estimated that the Colombia agreement could mean U.S. agricultural export gains of more than $815 million per year at full implementation.

According to a USDA Fact Sheet, a variety of agricultural commodities would benefit from the Agreement, as more than half of current U.S. farm exports to Colombia will become duty-free immediately, and virtually all remaining tariffs will be eliminated within 15 years. “Colombia will immediately eliminate duties on wheat, barley, soybeans, soybean meal and flour, high-quality beef, bacon, almost all fruit and vegetable products, wheat, peanuts, whey, cotton, and the vast majority of processed products. The Agreement also provides duty free tariff rate quotas (TRQ) on standard beef, chicken leg quarters, dairy products, corn, sorghum, animal feeds, rice, and soybean oil.”

National Cattlemen’s Beef Association (NCBA) President Bill Donald said it’s essential for the U.S. to take aggressive measures to expand market access for agriculture to stimulate the economy and feed a growing global population. “The cattle industry can breathe a sigh of relief today as the Colombia agreement finally gets the long overdue attention it deserves,” said Donald. “This agreement has collected dust for well over four years while our trade competitors proactively sign, seal and deliver trade pacts.”

American Farm Bureau Federation President Bob Stallman says the development is just what a group of Farm Bureau leaders has been pushing for the last two weeks during a visit to Colombia and Panama. “After meetings this week and last with farmers, ranchers and agricultural leaders from Colombia, we know this is a development welcomed by all sides. Trade will help the United States build stronger bonds with our Latin American neighbors, and it makes sense given our advantage of proximity and history of cooperation.”

The National Corn Growers Association says the Colombia FTA would provide immediate access for U.S. corn growers to Colombia’s roughly 2.1 million metric ton market for corn at zero percent duty. “Colombia has traditionally been one of the Top 10 export markets for U.S. corn,” NCGA President Bart Schott said. “This is an important market for U.S. farmers and we do not want to watch this market slip away to our largest competitors.”

National Pork Producers Council President Doug Wolf says the agreement will increase U.S. pork exports to the South American country by $68.9 million and help create 919 U.S. pork industry jobs. “We must implement our pending FTAs to remain competitive,” Wolf said. “Pork producers also support the Korea and Panama FTAs and urge the administration to send them to Congress to be approved by this summer.”

Republican Budget Would Cut Farm Spending

Posted on April 5, 2011 by Cindy

The FY 2012 Budget Resolution unveiled by House Budget Committee Chair Paul Ryan (R-Wis) includes reforming current farm programs.

The Republican budget plan would cut farm program spending by $30 billion over the next decade to “reflect the economic reality of record-high farm income by restructuring farm programs, saving taxpayers money and increasing farmer independence.”

Net farm income this year is forecast to be the second-highest recorded in the past 35 years. Production costs have risen, but income has risen faster as prices for major commodities such as corn and soybeans have outstripped even the rising cost of energy. The top five earnings years for farmers in the last 35 years have occurred in the last decade.Yet, at the same time, numerous overlapping government programs exist to provide income support to farmers.

With crop prices – and deficits – hitting new highs, it is time to adjust support to this industry to reflect economic realities.This budget proposes two major reforms to achieve this: First, reduce the fixed payments that go to farmers irrespective of price levels, to reflect that soaring commodity prices are reducing the need for high levels of farm-income support. Second, reform the open-ended nature of the government’s support for crop insurance, so that agricultural producers assume the same kind of responsibility for managing risk that other businesses do.

Corn growers say they are willing to take a proportionate share of budget cuts to get the deficit under control.

“These cuts are significant, but so is our nation’s out-of-control budget deficit,” said National Corn Growers Association President Bart Schott in a statement. “What is important is that farmers are not singled out — the cuts proposed for agriculture are proportional to those proposed for other areas of the federal budget. We know this is just the beginning of the budget discussion. No matter the outcome, we are committed to working with the House and Senate Agriculture Committees to fashion a farm bill that provides farmers with risk management tools that are there when they truly need them.”

Farmers’ Share of Food Dollar

Posted on March 31, 2011 by Cindy

I have been meaning to do a post on the recent report from USDA’s Economic Research Service about the farmers’ share of the food dollar, but I just can’t top the simplicity of a post that NCGA’s Ken Colombini did on Corn Commentary, which he titled “The 88% Solution.” It just says it all.

The USDA now tells us that farms and agribusinesses represent less than 12% of each food dollar. When will folks start looking at the other 88% as a possible cause of higher food prices?