Corn Growers back simplified crop producers program
The National Corn Growers Association has praised a proposal to create a simplified program for crop producers called the Aggregate Risk and Revenue Management (ARRM) program as part of the next farm bill. The legislation has been authored by Sens. Sherrod Brown, D-Ohio, John Thune, R-S.D., Richard Durbin, D-Ill., and Richard Lugar, R-Ind.
The senators have not publicly released the proposed legislation or promoted it, but aides have sent copies of it to news organizations. (See links below)
The proposed legislation would eliminate the direct and counter-cyclical payment program and change the average crop revenue election program called ACRE into an annual election program with calculations to be based on planted acres. Program guarantees would be based on a five-year Olympic average revenue from a crop reporting district instead of on a state-by-state basis.
According to the Congressional Budget Office, ARRM would cost just under $28.5 billion over 10 years, saving $19.8 billion or 41 percent less than CBO’s estimate of the cost of the current programs, according to the documents from the senators’ offices. The proposal would cover crop years 2013 to 2017, but CBO calculates bills over a 10-year period.
Senate Budget Committee Chairman Kent Conrad, D-N.D., is preparing his own farm bill proposal and says it will also merge the countercyclical and ACRE programs, but also include new versions of the disaster programs that were in the 2008 farm bill including SURE, the disaster program for crop producers. The disaster programs expire, Sept. 30, but Conrad has said that his bill would continue them in some form without a gap.
Agriculture Secretary Tom Vilsack has also called for a continuation of disaster aid. The ARRM proposal does not include disaster programs.
“We greatly appreciate the senators’ work to introduce legislation that will provide a more effective and responsive safety net for America’s farmers,” NCGA president Bart Schott said in a news release.
“This legislation addresses several concerns raised by farmers regarding the average crop revenue election (ACRE) program, including overly complicated procedures and delayed payments when losses are experienced,” Schott said. “We also understand everyone must do their part to help our nation with its difficult financial situation, and we are pleased to see a bill introduced that takes responsible steps to help meet this challenge.”
“While crop insurance is still the number one risk management tool for farmers, an effective, efficient revenue-based risk management tool that addresses gaps not covered by crop insurance is vitally important,” Schott added. “We feel the proposed legislation adopts the right kind of market-oriented approach in providing assistance when most needed by producers. We look forward to working with the senators as they continue their work with the Senate Agriculture Committee on a farm safety net for today’s risk management needs.”
Source of documents: DTN/Progressive Farmer—A Televent Brand
The senators have not publicly released the proposed legislation or promoted it, but aides have sent copies of it to news organizations. (See links below)
The proposed legislation would eliminate the direct and counter-cyclical payment program and change the average crop revenue election program called ACRE into an annual election program with calculations to be based on planted acres. Program guarantees would be based on a five-year Olympic average revenue from a crop reporting district instead of on a state-by-state basis.
According to the Congressional Budget Office, ARRM would cost just under $28.5 billion over 10 years, saving $19.8 billion or 41 percent less than CBO’s estimate of the cost of the current programs, according to the documents from the senators’ offices. The proposal would cover crop years 2013 to 2017, but CBO calculates bills over a 10-year period.
Senate Budget Committee Chairman Kent Conrad, D-N.D., is preparing his own farm bill proposal and says it will also merge the countercyclical and ACRE programs, but also include new versions of the disaster programs that were in the 2008 farm bill including SURE, the disaster program for crop producers. The disaster programs expire, Sept. 30, but Conrad has said that his bill would continue them in some form without a gap.
Agriculture Secretary Tom Vilsack has also called for a continuation of disaster aid. The ARRM proposal does not include disaster programs.
“We greatly appreciate the senators’ work to introduce legislation that will provide a more effective and responsive safety net for America’s farmers,” NCGA president Bart Schott said in a news release.
“This legislation addresses several concerns raised by farmers regarding the average crop revenue election (ACRE) program, including overly complicated procedures and delayed payments when losses are experienced,” Schott said. “We also understand everyone must do their part to help our nation with its difficult financial situation, and we are pleased to see a bill introduced that takes responsible steps to help meet this challenge.”
“While crop insurance is still the number one risk management tool for farmers, an effective, efficient revenue-based risk management tool that addresses gaps not covered by crop insurance is vitally important,” Schott added. “We feel the proposed legislation adopts the right kind of market-oriented approach in providing assistance when most needed by producers. We look forward to working with the senators as they continue their work with the Senate Agriculture Committee on a farm safety net for today’s risk management needs.”
Brown-Thune-Durbin-Lugar Aggregate Risk and Revenue Management (ARRM) Program
Source of documents: DTN/Progressive Farmer—A Televent Brand
