DALLAS, Texas (Staff) – Despite warning signals from Washington that farm spending will be cut, U.S. wheat growers are asking for increased income support in the new farm bill.
The National Association of Wheat Growers adopted a resolution at its recent convention calling for the marketing loan rate to be bumped up to $3.30 (U.S) a bushel from its current level of $2.58.
The loan rate acts as an effective floor price, since the government pays farmers the difference between market prices and the loan rate when prices fall below the loan rate.
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Wheat growers who participate in farm programs are also guaranteed a target price of $4 a bushel on 85 percent of their acreage, based on 1985 yields.
NAWG president Ross Hansen acknowledged there will almost certainly be less federal support for agriculture in the farm bill to be drafted this year, but he said cuts could be made in other areas.
“It’s important to us to maintain some income support safety net, for wheat farmers,” he said. “That’s our priority.”
The U.S. farm bill maps out farm policy and spending in that country for the next five years.
Speaking to reporters before the NAWG resolution was adopted, under-secretary of agriculture Gene Moos said the idea of boosting the loan rate seems to be out of step with the new political reality in Washington.
“I would guess in this new Congress it would be a tough sell,” he said. “It seems to be going against the tide of change.”
At least one NAWG director agreed. During debate on the loan rate resolution, Jay Hansen of Idaho criticized the organization’s leadership for being afraid to consider new ideas.
“All we’re doing here is tinkering with the same programs, changing some of the numbers and just playing around,” he said in an interview later.
Change imminent
Earlier in his speech to NAWG delegates, Moos left no room for doubt that change is on the way.
“The mid-term elections have dramatically altered the political landscape for farm policy,” he said. “I suspect that people who were looking for change are going to get one.”
The NAWG board later passed a resolution opposing budget cuts which reduce support for agriculture, which eliminate programs or which require agriculture to bear “an unfair share of the burden.”
NAWG secretary-treasurer Phil McLain, a North Carolina wheat grower, urged association members to take an active role in lobbying members of Congress to support the association’s positions.
“We know what we need and we’re going to have to go after it,” he said. “We’ve got a real sell job to do this year.”
Congressional agriculture committees are expected to start considering the farm bill in mid-summer, after it’s known how much money will be available for agriculture in the new budget. The legislation will likely be passed in late fall or early winter.
