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For Immediate Release Contact: Betsy Hart
June 27, 2008 (202) 226-8555

HERSETH SANDLIN: QUICK ACTION NEEDED BY RISK MANAGEMENT AGENCY TO LESSEN IMPACT OF GRAIN SHORTAGE

Livestock Producers Need Relief from High Prices; Bipartisan Congressional Coalition Requests Earlier Harvesting Date for Prevented Planting Cover Crops

June 27th, 2008, Washington, DC- Following devastating floods across this Midwest this spring and the resulting planting difficulties encountered by farmers, Rep. Herseth Sandlin, along with Agriculture Committee Chairman Collin Peterson (D-MN) and Reps. Ike Skelton (D-MO), Kenny Hulshof (R-MO), Leonard Boswell (D-IA), Bruce Braley (D-IA), David Loebsack (D-IA), Steve King (R-IA), and Tim Walz (D-MN), sent a letter to Administrator of the U.S. Department of Agriculture Risk Management Agency (RMA) Eldon Gould requesting that RMA move up the earliest allowable harvesting date on prevented planting acres to ensure that enough grain is available to meet ever-increasing demand.

Typically, farmers who are forced to delay planting are protected from loss by participating in a prevented planting program that allows them to plant cover crops like millet and canola. However, to receive the full indemnity provided under the prevented planting program, cover crops cannot be harvested until November 1st. At this point, however, frost has usually rendered cover crops unsuitable for livestock feed.

With many corn farmers likely to participate in the prevented planting program this year and produce crops that could be used for feed, Rep. Herseth Sandlin along with a bipartisan Congressional coalition has asked that the RMA change the harvesting date to allow farmers to harvest these crops beginning as early as September 1st with the caveat that they can only be used for livestock feed. In addition to giving farmers who were prevented from planting corn and soybeans this spring an opportunity to fully maximize their production potential, changing the harvest date will bring down the price of feed for livestock producers and redirect more corn to the marketplace. Last year, 6 million corn acres nationwide were used for silage.

Herseth Sandlin said “If farmers can plant cover crops like millet and canola this summer and begin harvesting them in early fall, these grains can be used for feed, bringing costs down for livestock producers and freeing up more corn in the marketplace. Given that crops would need to be planted by mid-July to produce valuable yields by September, I urge the RMA to act quickly so farmers can plan accordingly and get their crops in the ground in the next couple of weeks.”

This effort is the latest in a series from Rep. Herseth Sandlin to urge RMA to provide assistance to producers affected by severe spring weather. Earlier this month, Rep. Herseth Sandlin sent a letter requesting that the RMA cut in half the one percent penalty on all insured crops still unplanted, retroactive to each crop’s respective planting deadline. RMA denied that request in a letter to Herseth Sandlin, but on the same day announced a reporting deadline extension of August 15th for 2008 crop year spring-seeded acreage in areas impacted by flooding. The new deadline of August 15th applies to all counties in Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin.

The full text of the letter is below.



June 27, 2008

Mr. Eldon Gould, Administrator
Risk Management Agency
U.S. Department of Agriculture
1400 Independence Ave. SW
Washington, DC 20250-0801

Dear Mr. Gould,

As you are well aware, the extreme weather conditions across the Midwest this spring and early summer have greatly hampered producers’ ability to plant corn and soybeans at the levels necessary to meet the increased worldwide demand. Our livestock producers have been particularly hurt by the rising increases in food prices, and the projected shortage of grain this year will only serve to keep their costs high. We commend the Risk Management Agency for taking the step of allowing additional time for acreage reporting, until August 15th. However, more needs to be done to help our farmers and livestock producers.

Many of the farmers forced to delay planting crops this spring may be eligible for prevented planting indemnities. Under normal circumstances, cover crops planted under the prevented planting program cannot be harvested until November 1. In order to ensure that no good land remains unplanted, that we have enough grain to meet ever-increasing demand, and to take further steps to help ease the burden on our livestock producers, we request that producers be allowed to harvest their prevented planting crops beginning on September 1, with the strict caveat that the grain can only be chopped and used as livestock feed.

The harvest date for prevented planting has been moved forward in the past and only within the last few years has it been set at the late date of November 1. While we understand the need to prevent fraud in the prevented planting program, it is too late in the planting season for abuse to occur. Weather disasters this year necessitate a temporary change in the harvest date. USDA has already recognized the need for additional hay and forage for livestock by allowing use of CRP for critical feed use. Allowing prevented planting crops to be chopped and used as forage seeks to accomplish the same goal and has similar justifications.

Nationwide, over 6 million corn acres were used for silage in 2007. Due to the unanticipated stress on corn production, if producers can harvest cover crops like millet and canola earlier and use them for livestock feed, that potentially adds an additional 6 million corn acres into the marketplace. If producers have to wait until November 1, these cover crops will have almost zero value as a livestock feed and those corn acres that could have been used for grain instead of silage will have gone to waste. This additional flow of grain is urgently needed.

In most states, cover crops must be planted by mid-July in order to produce a crop that, harvested in September, would be a valuable livestock feed. While the final planting date is later in some other states, this short time frame for planting requires us to act quickly. At a historic time like this, it is critical that we take immediate action to ensure we get the most out of all land in production.

Thank you for your efforts on behalf of producers, and we look forward to hearing from you in the coming days.

Sincerely,


Representative Stephanie Herseth Sandlin

Representative Collin Peterson

Representative Ike Skelton

Representative Kenny Hulshof

Representative Leonard Boswell

Representative Bruce Braley

Representative David Loebsack

Representative Steve King

Representative Tim Walz



Congresswoman Stephanie Herseth Sandlin serves South Dakota in the U.S. House of Representatives. She is a member of the Blue Dog Coalition, a group of moderate Democrats committed to fiscal discipline and strong national security, and is co-chair of the Rural Working Group, which is dedicated to raising the profile of issues important to rural America. She also serves on three committees vital to South Dakota’s interests: Agriculture, Veterans’ Affairs and Natural Resources. In the 110th Congress, Rep. Herseth Sandlin was one of only 15 members appointed to serve on the Select Committee on Energy Independence and Global Warming.

 

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