May 30, 2012… St. Louis, Mo… The Agriculture Risk Coverage (ARC) program established in the Senate Agriculture Committee’s recently-approved Agriculture Reform, Food and Jobs Act of 2012 will treat program crops like corn, wheat, rice, peanuts and soybeans equitably, that according to a report issued today by the Food and Agriculture Policy Institute (FAPRI) at the University of Missouri in Columbia. In its report, FAPRI examined the potential impacts of key aspects of the proposed legislation, more commonly known as the Farm Bill.
“According to the FAPRI analysis, benefits to soybean farmers under the ARC program will amount to 1.9 percent of total market receipts, slightly below the average of corn, wheat and sorghum and slightly above that of peanuts and rice,” said ASA President Steve Wellman, a soybean farmer from Syracuse, Neb. “This is a good indicator that the Senate version of the Farm Bill treats most commodities equitably.”
Contained in the FAPRI report is a table which illustrates the benefits to various crops under the revenue programs established in the Senate Farm Bill.
“In addition to its relatively evenhanded treatment of crops, the ARC program reflects the realities of what farmers actually are planting and provides a measure of revenue protection to farmers should yields and prices drop significantly,” added Wellman. “Farmers from all regions of the country have been planting more soybean acres for years in response to market signals and the planting flexibility first introduced in farm programs in 1996. Last year, farmers planted 75 million acres of soybeans not only on acres technically classified under previous farm bills as ‘soybean base acres’, but also on acres that have been technically classified as wheat, corn, cotton, and other commodity base acres. FAPRI’s analysis reflects these planting decisions that have been made by farmers and is consistent with the Congressional Budget Office’s analysis of the Senate Farm Bill released earlier.”
The Farm Bill now awaits time on the Senate floor, where it is currently second on the chamber’s schedule upon return from recess next week.
“We’re looking forward to passage by the full Senate next week, in hopes that we can get this critical legislation on to the House and passed before it expires on September 30,” said Wellman.