AGRICULTURE AND THE FEDERAL BUDGET

 

ASA Position

ASA opposes cuts in spending on agriculture, trade, nutrition, and conservation programs in the FY-2006 budget, or reopening the 2002 Farm Bill. We oppose the policy changes proposed in the President’s Budget, including reduction of payment limitations and restriction of marketing loan and loan deficiency payment eligibility. We support full funding of the Conservation Security Program.

Background

ASA supported the 2002 Farm Bill, which established soybeans as a program crop, provided more equitable income support for soybeans, and maintained unrestricted planting flexibility. Income support must be maintained at a level sufficient to enable soybeans to compete for acreage with other program crops.

The 2002 Farm Bill represents a commitment by the Federal Government to provide income support and other assistance to U.S. producers through the 2007 crops. In the course of negotiations on the Farm Bill, all major issues facing U.S. agriculture were fully debated and decided. Farmers have now based their long-term economic decisions on assurances provided under the Farm Bill. Reopening this legislation or cutting farm income support would unfairly undercut U.S. farmers and production agriculture.

ASA is very concerned with decisions to fund disaster assistance in recent years by reducing funding for the Conversation Security Program (CSP). The CSP is a pioneering effort to provide support to farmers engaging in sound conservation practices, and should serve as a precedent for developing similar voluntary incentive-based programs in the 2007 Farm Bill. Cutting CSP funding erodes its effectiveness in demonstrating the benefits of using conservation initiatives to support farm income.