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NAWG calls for tweaks to federal safety net programs

The president of the National Association of Wheat Growers (NAWG) says current federal commodity support programs must be tweaked before reauthorization in the next Farm Bill.

During a House Ag Subcommittee hearing on general farm commodities and risk management Tuesday, Kansas farmer David Schemm spoke about his personal experience utilizing both the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs.

“One issue we encountered during implementation was disparities in payment rates in the ARC-county program between neighboring counties.  We have concern about the data that the Farm Service Agency uses to make yield determinations, and using NASS statistical data to establish yields.  There is the possibility that different data sources can be used from year to year.”

He says using Risk Management Agency (RMA) data as the first source would provide more assurances of accuracy, and subsequently the integrity of payment rates established for ARC-county.

Nearly half of all U.S. wheat base acres were enrolled in PLC coverage last year, and Schemm expects increased participation as prices remain low.

“We need to ensure the PLC reference price is set at a level that provides a sufficient safety net when prices remain low.  NAWG urges Congress to increase the PLC wheat reference price to a level that is tied to a cost of production.”

Schemm’s testimony also included opposition to any effort to undermine the current federal crop insurance structure, calling it the most important risk management tool available to wheat growers.

 

 

 

 

 

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