ASA pitches its farm program proposal into the ring
To calculate a producer’s actual revenue for a commodity, the RMAF multiplies the producer’s “actual yield times the national average price received by farmers for the commodity during the first four months of the marketing year, plus net crop insurance indemnities received.”
The farm program payment for each commodity under RMAF would be 85 percent of the difference between the producer’s revenue benchmark and the producer’s actual revenue. The “Payments are based on a producer’s revenue for each commodity and on actual planted and prevented planted acres.”
To fund this proposal the ASA would eliminate Direct Payments, Counter-Cyclical Payments, the ACRE (Average Crop Revenue Election) program, and the SURE (Supplemental Revenue Assistance) program. If the elimination of these programs is insufficient to fund RMAF, the ASA would support a reduction in the payment level to a lesser percentage than the proposed 85 percent.
To meet any deficit reduction that would be imposed on the farm bill, the ASA would allocate 50 percent to commodity programs and 50 percent to conservation programs, leaving crop insurance untouched, as ASA regards crop insurance as “the foundation of the farm income safety net for producers of soybeans and most other commodities.”
With regard to conservation programs “reductions would come from proportionate reductions in baselines for the Conservation Reserve Program (CRP),” the Conservation Stewardship Program, and the Environmental Quality Incentive Program. The ASA would make any reduction in the CRP by reducing the acreage cap.