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Farm bill proposal is for farmers, ranchers

"This is a vision for a different kind of farm bill than the past. This farm bill has a vision for a great future in agriculture with programs to help farmers and ranchers strive in the future," said Secretary of Agriculture Mike Johanns.

By Jennifer Bremer

The recently released proposal for the 2007 farm bill has been built on the wants and needs of America's farmers, ranchers and agriculture stakeholders.

"We listened closely to producers and stakeholders all across the country and took a reform-minded and fiscally responsible approach to making farm policy more equitable, predictable and protected from challenge," said U.S. Secretary of Agriculture Mike Johanns. "We started with the 2002 farm bill and propose to improve it by bolstering support for emerging priorities and focusing on a market-oriented approach."

The proposal includes 183 pages of analysis from 52 forums held across the country. The goal for Johanns was to make this America's farm bill.

The proposal includes programs and funding for renewing rural communities, with a special focus on conservation, specialty crops, beginning farmers and ranchers, renewable energy, research, trade, food assistance and socially disadvantaged producers.

"The 2002 farm bill was right for the times. It was set up to help farmers after low prices that they had experienced in 2000 and 2001, when exports were down and the debt to asset ration was high," said Johanns.

"Currently the commodity prices are good for most crops. Exports are at an all time high and are expected to grow by more than $8 billion in the coming year," he added. "The debt to asset ratio is now near the lowest level it has been in many years and renewable energy has changed the way of the land."

Johanns said that they looked at the successes and failures of the current farm bill and determined what changes needed to be made.

He said that this proposal is more predictable, more equitable, better able to withstand change and wisely and effectively spends tax dollars.

Proposal reflects farmer's concerns

Sen. Tom Harkin, D-IA, chairman of the Senate Ag Committee, said he was pleased the proposal reflects the comments and concerns he has heard in Iowa and throughout the country.

"There are a number of good ideas, along with others that raise serious questions. I'm really concerned about the idea to put even more money in the old Freedom to Farm type of payments," said Harkin. "While the proposal takes positive steps toward renewable energy, conservation and rural economic development, it falls short of the investment levels needed to reach our nation's objectives."

Highlights of the proposal include an increase in conservation funding by $7.8 billion, to simplify and consolidate conservation programs and create a new Environmental Quality Incentives Program and a Regional Water Enhancement Program.

Funding of $1.6 billion would be provided for new renewable energy research, development and production targeted for cellulosic ethanol.

The new bill would revise marketing loan rates, increasing direct payments, tighten payment limits and provide conservation enhanced payment option.

Nearly $5 billion in funding is to support specialty crop producers by increasing nutrition in food assistance programs, including school meals by purchasing fruits and vegetables, funding specialty crop research, fighting trade barriers and expanding export markets.

"We are reauthorizing the Conservation Reserve Program to focus on highly erodible land that is environmentally sensitive," said Johanns. "The program would have a revision for harvesting grass for cellulosic use in biofuels."

The bill would provide $2.1 billion in loan guarantees to support cellulosic uses for switchgrass and other sources.

Sen. Chuck Grassley, R-IA, said the plan for the 2007 farm bill is a good starting point for the Senate.

"I was happy to see they showed a commitment to developing agriculture-based renewable energy. The farm bill will be and excellent venue to develop and promote robust policies to foster home-grown renewable resources and the administration's proposal is a good starting point for our debate in the Senate," said Grassley.

He was disappointed Johanns did not address concentration because he feels that is one of the most important issues facing agriculture today.

Budget meets most priorities

On Feb. 5, President Bush released the details of the FY 2008 USDA budget, which meets the department's most important priorities.

"The president's agriculture budget provides important resources that are necessary to promote economic opportunities and to preserve our commitment to our farmers ranchers, rural citizens and families in need," said Johanns. "This budget aims to enhance our country's vibrant ag economy, advance renewable energy, protect America's food supply, improve nutrition and health and conserve our natural resources."

The budget does increase funding for high priority bioenergy research aimed at improving the efficiency of converting cellulose to biofuels. Research is also an important component in key budget initiatives for avian influenza, food and agriculture defense, and emerging diseases in crops and livestock.

Johanns said this bill demonstrates fiscal responsibility. The proposals would spend approximately $10 billion less than the 2002 farm bill spent over the past five years. The proposals would provide approximately $5 billion more than the projected spending if the 2002 farm bill were extended.

"This is a vision for a different kind of farm bill than the past," said Johanns. "This farm bill has a vision for a great future in agriculture with programs to help farmers and ranchers strive in the future."

The proposals are available at www.usda.gov/farmbill and additional information regarding the FY 2008 budget proposal is available at www.usda.gov/budget.

Jennifer Bremer can be reached by phone at 641-938-2342 or by e-mail at jbremermaj@hotmail.com.

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2/12/07

1 Star WK

Date: 2/8/07


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