- Farm groups resigned to deep farm program cuts.
- Most expect direct payments will disappear.
- Groups express concern with gaps in revenue assistance programs.
Representatives of Texas’ major commodity organizations on hand at Monday’s Texas Ag Forum in Austin seemed to be grudgingly resigned to significant cuts in farm program funding but offered suggestions they hope Congress will consider before a final bill is drafted.
The National Cotton Council offers STAX, Stacked Income Protection Plan; the National Corn Growers Association prefers ADAP, Ag Disaster Assistance Program. Other commodities also offered recommendations for new programs.
Sam Willett, senior policy director, NCGA, said ADAP would be “a variation of the ACRE (Average Crop Revenue Election) program passed in the 2008 farm bill.
The guiding principles of ADAP include:
- Simplicity. Get rid of as many details as possible.
- Complement and not compete with crop insurance.
- Target multi-year and significant uninsured losses (95 percent coverage level, 10 percent maximum loss).
- Get payments closer to the farm (through crop reporting district yields).
- Provide multi-year protection (five-year Olympic average).
- Make payments faster (crop insurance price instead of seasonal average price).
Willett said crop insurance provides coverage for disasters and deep losses. “We need coverage for multi-year price declines or low yield over multiple years.” That requires a multi-year revenue benchmark, particularly for price declines and would require high coverage levels, he said.
He said since crop insurance is a disaster payment the program would need to limit the maximum payment.