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Payment Change Advocated ; Farm Bureau Backs Revenue Assurance

Posted on: Wednesday, 25 January 2006, 18:00 CST

By Chris Anderson

ST. LOUIS - Federal revenue assurance will replace direct farm payments as farm income safety nets if Illinois Farm Bureau members see policy approved Tuesday become reality.

During concluding sessions of the IFB annual meeting, delegates approved a government farm policy dramatically different from existing policy marked by direct farmer payments. Actually, they heeded warnings from Congress and world trade leaders that direct payments are no longer affordable nor acceptable in achieving free global trade.

"When we wrote the 2002 farm bill, we had record farm income and a federal budget surplus. The 2002 farm bill is not working. We look at it as a form of revenue. The farm policy task force looked at new policy as a safety net," said Rob Sharkey of Bureau County, task force chairman. Sharkey noted the proposed policy was left intentionally vague to allow Farm Bureau leaders flexibility in forming the 2007 farm bill.

For example, revenue assurance described in the policy contains no specific percentage of income protection. The policy merely suggests government agricultural spending be maintained at its current base level. The policy also would allow farmers to buy an additional level of income protection beyond a level guaranteed by the government.

"The intent of the insurance would be to guarantee a certain income level, say 60 percent as a floor. If it's done correctly, it could make up for the direct payments we now receive," said Tom Hieronymus, DeWitt County Farm Bureau president.

Dennis Haab, Livingston County Farm Bureau president, agreed that the policy allows flexibility in forming a new farm bill.

"There are already pilot programs for adjusted gross income revenue insurance. There's been some discussion that revenue levels for individual farmers could be based off of Schedule F (federal income tax statement)," said Haab of Forrest. "The whole principle is moving away from direct payments. Even loan deficiency payments don't help if you don't produce a crop."

The existing 2002 farm bill expires in 2007. Congress is already discussing a $3 billion to $4 billion reduction in farm spending prompted by a $326 billion federal budget deficit. Direct farm payments are also being discouraged by World Trade Organization leaders. Developing countries are demanding industrialized nations abandon domestic farmer support programs to ensure fair, open global markets.

In other business, delegates approved policy supporting a mandatory, federally funded national animal identification program administered by the U.S. Department of Agriculture. Illinois livestock producers so far are being asked to voluntarily register their farms with the state and receive a premise identification number in return.

The program was fueled by a national need to identify disease outbreaks as well as monitor incidents of bioterrorism.

Delegates debated the mandatory aspects of the policy for nearly 30 minutes. They strongly backed USDA administration of the program versus oversight by a private company. Confidentiality concerns prompted the USDA support.

"I can't vote for a mandatory program when USDA doesn't know what all the rules will be. It hasn't been decided who will administer the program," said Dale Jackson of Stark County.

Jim Fraley, IFB livestock specialist, said USDA officials are within two months of finishing software for the national animal identification database. He said the entire program is on hold until the software gets completed. He added that livestock producers have not supported private database administration.

"As a member of the grass-roots IFB livestock committee, we felt the program would only work if it was mandatory," said Fred Baker of Streator. Vern Schiller of McHenry noted a mandatory program will reinforce consumer confidence in the beef industry in light of cases of mad cow disease in the United States.

"If we can prove to the world through this program that we have a safe meat supply, we should have done this yesterday," concluded Kathy Brenner of Stephenson County.

Source: Pantagraph

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