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For
Immediate Release Contact: Betsy Hart
September 18, 2008 (202) 226-8555
HERSETH SANDLIN URGES USDA TO ENSURE A STRONG SAFETY NET FOR OUR PRODUCERS
September 18, 2008, Washington, DC- As the United States
Department of Agriculture (USDA) prepares to release a new rule regarding
the implementation of the new Average Crop Election Program (ACRE) contained
in the 2008 Farm Bill, Rep. Herseth Sandlin is working to ensure South
Dakota producers are treated fairly. This week, she is leading an effort
in the House to urge USDA Secretary Ed Schafer to fulfill the intention
of the law by using 2007-2008 as “the most recent years” for the 2009
crop state revenue guarantees in ACRE.
USDA has indicated it may rule in favor of using the average farm gate
prices for 2006 and 2007 – instead of 2007 and 2008 – which would diminish
the value of the benefit in this new safety net program, and likely
cause participation to be substantially reduced. Herseth Sandlin is
gathering signatures for a letter to Secretary Schafer that states,
in part, “By moving the ACRE guarantee price to 2006, the Department
would make market signals more remote from actual planting decisions
and significantly diminish the program’s effectiveness.”
The letter continues, “As producers begin to make planting decisions
for the next crop year, it is critical that USDA moves forward with
the rulemaking on the ACRE program quickly. Using the 2007 and 2008
crop years ensures that producers have a safety net firmly in place
that provides the best means for offsetting growing risk and ever-increasing
input costs as promised when Congress passed the 2008 Farm Bill.”
Comparing the differences in the two sets of marketing years, the Food
and Agriculture Policy Research Institute (FAPRI - University of Missouri)
prepared the following average price scenarios:
06-07 07-08
Corn $3.65 $4.85
Wheat $5.37 $6.62
Soybeans $8.29 $11.48
The full text of the letter to Secretary Schafer is below.
Dear Secretary Schafer,
As you continue to implement provisions of the 2008 Farm Bill, we strongly
urge you to uphold Congress’ original intent in regards to the optional
Average Crop Revenue Election Program (ACRE) by using the 2007 and 2008
average farm gate prices as “the most recent years” when determining
the 2009 crop state revenue guarantees.
As you know, the underlying purpose of the ACRE program is to provide
an optional farm safety net that is more in tandem with actual market
conditions. By moving the ACRE guarantee price to 2006, the Department
would make market signals more remote from actual planting decisions
and significantly diminish the program’s effectiveness.
Congress’ intent in this matter is clear. Plainly stated under the ACRE
statute is the directive to use the “most recent 2 crop years.” The
ACRE program will begin in the 2009 crop year, requiring USDA to use
2007 and 2008 in determining the ACRE price guarantee. Additionally,
the program was scored by the Congressional Budget Office using the
2007 and 2008 crop years. USDA does not need to calculate revenue guarantees
before publishing the rules that farmers will use to decide whether
to enroll in the program.
As producers begin to make planting decisions for the next crop year,
it is critical that USDA moves forward with the rulemaking on the ACRE
program quickly. Using the 2007 and 2008 crop years ensures that producers
have a safety net firmly in place that provides the best means for offsetting
growing risk and ever-increasing input costs as promised when Congress
passed the 2008 Farm Bill.
Thank you for your attention to this important matter.
###
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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