The National Corn Growers Association (NCGA) today released its preliminary analysis on the impact of a revenue-based safety net program for corn growers.

The analysis illustrates how the proposed programs work for corn coupled with direct payments. It compares four corn farms using the current farm bill programs and NCGA’s revenue-based program proposal during 2002 to 2005 crop years. The report includes an executive summary detailing the results of the analysis, an implementation section and a question-and-answer section on the structure of the base revenue program (BRP) and revenue countercyclical payment (RCCP). BRP and RCCP are the basis of the proposal.

The revenue-based program would form the basis for a new farm bill and include maintenance of current calculation methods for direct payments; change the nonrecourse loan program to a recourse loan program; create a BRP; and modify the current countercyclical program into RCCP.

NCGA’s Public Policy Action Team, under the direction of the organization’s voting delegates, worked for more than a year evaluating a wide range of options and recommendations regarding the 2007 farm bill’s Commodity Title. NCGA’s Corn Congress voted in March to pursue the revenue-based program as the lead option for the 2007 farm bill.

NCGA President Ken McCauley is excited at the opportunity to continue efforts to engage all growers and affiliated state organizations in the farm program development process.

"Having the opportunity to propose and engage growers, states and government in discussions on a new farm bill is very exciting,” he said. “It makes sense to look at every opportunity that could improve our farm policy and programs for all producers. That is why we are continuing our efforts to analyze the revenue-based program for certain program crops.”

The report also provides forward-looking analysis to estimate how RCCP payments are expected to compare with loan deficiency payments and countercyclical payments over the period 2006 to 2010. The analysis uses updated estimates from the Food and Agricultural Policy Research Institute.

NCGA continues to gather suggestions and input from other commodity groups and stakeholders. Subsequent analysis for wheat, soybeans, cotton and rice will be completed during the next month to determine the cost and feasibility of the program.

“It makes sense to look at other programs and opportunities that are being offered,” McCauley said. “NCGA continues to be a leader in the agriculture industry, and, as a leader, we are thinking of ways to improve policies for all producers. The 2002 farm bill has done a good job, but is expiring at a time when we have a new era of agriculture. NCGA’s farm bill proposal could fit very well into agriculture's future and be just as accepted as the 2002 farm bill is today.”
 
Complete report and analysis: http://www.ncga.com/news/notd/pdfs/10_23_06NFSA.pdf