Touting the many benefits of changing farm policy that is price-targeted to one that is more market-oriented, the National Corn Growers Association urged commodity groups, Congress and other industry-related representatives to take a constructive look at the merits of its proposed National Farm Security Act (NFSA).

NCGA President Ken McCauley presented the revenue-based proposal at a Farm Foundation Farm Bill Forum held Tuesday in Washington, D.C..

"The agriculture sector is inherently risky and corn growers feel that if agriculture is to survive and continue to thrive in the future, it is time to take U.S. farm policy in a new direction," McCauley said. "The 2002 farm bill was the right policy for those times, but times have changed. Policy needs to be market focused. It needs to recognize the variable producer. It needs to target support for producers when they need it. Our proposal does just that."

McCauley presented key points to the farm bill proposal, saying that NFSA:

  • Better utilizes taxpayer dollars by providing a farm safety net when it is most needed
  • Reduces the adverse impact of volatility in production and the market
  • Incorporates built-in disaster aid and allows producers to better manage risk.

  • The proposal, McCauley noted, would help to meet growers' long-term risk management needs and save taxpayer and producer dollars by integrating a county revenue countercyclical program (RCCP) with the current federal crop insurance program.

    "Integration with federal crop insurance will reduce market and area production risk allowing insurance companies to offer higher levels of individual farm level coverage at a lower cost," McCauley said.

    Additionally, he said, NCGA's proposal includes disaster aid, which could save taxpayers as much as an average of $1.8 billion per year in ad hoc disaster aid legislation.

    "While growers prefer receiving their profits from the marketplace, they need an effective and efficient safety net to give them the protection when they need it most and the confidence to reinvest in other value added opportunities."

    SOURCE: NCGA news release.