Progress Must Continue to Ensure Farm Bill Policy Meets Future Challenges

It is an exciting time for America’s grain industry.  Growing feed, fiber and fuel, America’s producers are stepping up to challenges like no other time in history.  However, change is often coupled with hard decisions and this year’s Farm Bill is no exception.  The 2002 Farm Bill was good policy for the time but America’s producers are now taking greater risks to meet changing demands.  The 2007 Farm Bill must reflect more efficient spending and reformed protection for America’s producers.

Virginia’s corn producers and small grains growers are extremely concerned about the progress of the 2007 farm bill.  Already vulnerable with current programs, our producers have begun their 2008 growing season with no idea of support that may be available in the current farm bill.   Virginia has seen a 35 percent increase in small grain acres this year which will be harvested in less than three months.  In a matter of two to three weeks, Virginia’s producers will begin planting corn.  The uncertainty of prices and input costs are a considerable concern for all producers, including Virginia.  The grains industry is undergoing great change.  Usual practice even two years ago is no longer applicable in today’s grain markets.  Now more than ever, agriculture producers need a stable, common-sense policy reflected in the 2007 farm bill.

A new farm bill policy faces significant challenges.   In order to meet those challenges effectively and efficiently, Virginia grain producers continue to call for  a strong revenue-based option within Title I.  A well structured, revenue based option will not only provide better protection for Virginia producers, it will also  generate overall savings for the 2007 farm bill .   The purpose of the a Farm Bill is to provide producers with support only when needed the most.  A major issue facing Farm Bill progress is funding.  Virginia producers call for lawmakers to structure an option that provides both answers; a much-needed safety net and more efficient spending.

Virginia’s producers feel strongly about a sufficient safety net option because they only want receive subsidies when government support is necessary.  Our states producers are currently paying over $600.00 per ton for blended fertilizer when just two years ago the same fertilizer was $270.00 per ton.  Seed costs, crop insurance, land rents, labor costs and fuel have all spiked significantly as well.  Our producers are putting in the largest investment of their careers to make a crop this year.  No matter the price of grain, if Virginia producers suffer another disaster they will face extreme losses and in some cases will not be able to continue farming.

This type of increased pressure on our producers not only affects the grains industry but the end-users of our products as well.  In order to promote stability for all users of American grain including, livestock, consumers, food processors, renewable fuel and others, the 2007 Farm Bill must provide a safety net to guard against price volatility and other major risks.  Providing stability for Virginia’s grain producers in turn provides support for all sectors which use grain for feed.

Agriculture truly is the backbone of the American society providing jobs, exports, feed, fiber, food and fuel for the world. Farm policy must reflect the needs of the industry with a reasonable price tag.  Providing a much-needed safety net for American producers and generating overall savings for the 2007 Farm bill is the right policy.