2012 FARM BILL

 

ASA Position

ASA supports the following provisions in the 2012 Farm Bill:

Commodities Title

ASA continues to strongly support programs in the 2012 Farm Bill that provide the greatest possible planting flexibility. Allowing and encouraging producers to respond to market signals rather than government programs has been a cornerstone of the last three farm bills, and enabled U.S. soybean plantings to increase by 15 million acres (nearly 25 percent) between 1995 and 2010.

ASA recognizes that budget constraints are likely to require restructuring farm programs in the 2012 Farm Bill. Agriculture should accept its fair share of any required spending reductions, provided they are proportionate with other federal programs and they do not require restructuring of the federal crop insurance program, which is the core safety net for producers of soybeans and other commodities.

ASA developed and supports risk management concepts for the 2012 Farm Bill as a means to partially offset revenue losses that exceed a specified threshold, while complementing crop insurance. Payments under a revenue-based program should be commodity-specific, and based on the difference between historical and current-year revenue at the farm level. While based on current-year production, this approach will have less of an impact on planting decisions and production than a fixed target price program, since any payments would be based on actual revenue losses rather than a decline in prices from fixed support levels. Production agriculture has inherent risks, and properly designed farm policy must not remove all risks.

ASA recognizes that a revenue-based program may not be appropriate for all commodities. We are open to supporting an alternative program, provided it does not interfere with the ability of producers to respond to the market or distort planting decisions. Additionally, programs should be in compliance with the United States’ existing WTO commitments. Existing conservation compliance provisions should continue as a condition of eligibility for receiving farm program payments.

Conservation Title

ASA supports maintaining and funding programs that encourage effective conservation practices on working lands. We support reducing the cap on acres in the Conservation Reserve Program (CRP) as part of any requirement to reduce spending under the 2012 Farm Bill and to allow U.S. producers to respond to increasing world demand for agricultural commodities. As CRP contracts expire, we believe the CRP should be targeted to the most environmentally sensitive land and to meet water quality goals. Lands that can be returned to production in an environmentally friendly manner should be returned to productive agricultural use.

Energy Title

ASA supports reauthorization and increased mandatory funding of the Biodiesel Fuel Education Program (Section 9006) and the Biobased Market Program (Section 9002) in the Energy Title of the 2012 Farm Bill. We recognize that energy programs do not have baseline funding beyond 2012. However, the benefits provided by the Biodiesel Fuel Education Program and the Biobased Market Program have been worth their relatively low cost, and warrant their continuation with an increased level of mandatory funding.

Research Title

ASA supports reauthorization of the Agriculture and Food Research Initiative (AFRI) to expand competitive research at USDA, as well as reauthorization to maintain research capacity at our land-grant universities. Agricultural research is the foundation of future competitiveness for not just U.S. soybean production, but all of U.S. agriculture.

Trade Title

ASA supports reauthorization of the Foreign Market Development (Cooperator) Program and the Market Access Program (MAP) and continued annual funding of these export promotion programs at $34.5 million and $200 million, respectively. We support continued funding of the Food for Peace Program (Title 1 of P.L. 480) and the McGovern-Dole Food for Education Program.