Saint Louis, Missouri
October 25, 2007
The American Soybean
Association (ASA) today applauded approval by the Senate
Agriculture Committee of its proposal for the 2007 Farm Bill.
ASA President John Hoffman, a soybean farmer from Waterloo,
Iowa, said that "ASA appreciates action by the Senate
Agriculture Committee in reporting a bill, and urges its early
consideration by the full Senate, so we can complete omnibus
farm legislation this year." Hoffman added that "while the bill
passed by Committee does not fully reflect ASA’s priorities on
support for soybean producer income and biodiesel production,
ASA will work with both Senate and House Conferees to address
these issues and reach an agreement that will meet with needs of
U.S. soybean farmers."
Hoffman’s comments followed a two-day mark-up by the Senate
Committee during which draft legislation introduced by Chairman
Tom Harkin (D-IA) was debated and several amendments were
considered. The bill would establish two farm program options,
including the current "three legged stool" of marketing loan,
direct payment, and counter-cyclical program or an Average Crop
Revenue program. The latter would include a fixed payment of $15
per base acre and a payment equal to the shortfall between a
state’s target revenue and actual state revenue for a commodity
at the time of harvest. ASA has supported offering an optional
revenue-based program to producers.
Amendments adopted included one by Senator John Thune (R-SD)
that restores a producer’s option to take a Loan Deficiency
Payment (LDP) in lieu of a marketing loan when prices are below
loan level at the time of harvest. ASA had written a letter to
the Committee urging restoration of the LDP option, and was
advised by Senator Thune’s office that the amendment was offered
as a result of ASA’s initiative.
Responding to the Senate bill as reported by the Committee, ASA
President Hoffman commented that "the Senate legislation still
includes provisions that ASA will work to address as it moves to
the Senate floor and to Conference with the House farm bill."
According to Hoffman, "these provisions include increasing the
soybean target price from $6.00 to a minimum of $6.30 per
bushel, and increasing funding for the Bioenergy Program for
Advanced Biofuels."
Hoffman stated that "ASA strongly opposes introduction of the
recourse loan under the proposed ACR program, and we will
continue to work to eliminate it in Conference." Hoffman
concluded that "ASA would like to ensure funding for the Quality
Incentive Program to promote production of soybeans with
high-stability oils, to enable U.S. food companies to eliminate
trans fats without increasing use of unhealthy saturated fats."
The Senate farm bill is expected to move to the Senate floor in
the next two weeks, and Conference with the House Agriculture
Committee is anticipated in December. Provisions of the 2002
Farm Bill will begin to expire in early 2008. |
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