National Corn Growers Association President Ken McCauley outlined the organization's farm bill proposal, the National Farm Security Act, to the House Agriculture Committee Subcommittee on General Commodities and Risk Management on Wednesday.
The group's Commodity Title comes out to about $500 million above baseline, according to NCGA cost analysis assuming a level of 75% buy up of individual revenue insurance, a county revenue guarantee at a coverage level of 95% of projected price and a two-year implementation process to allow the U.S. Department of Agriculture time to make the necessary changes.
The association also suggests implementation of a cap on projected prices used to determine trigger revenues. To reduce the effects of market volatility on the program and to provide greater predictability to producers, NCGA proposes to establish projected crop prices as the average of the current year's revenue insurance price and the previous two years' prices.
"Our proposal suggests needed changes to the commodity support programs that would help ensure better protection against volatile commodity prices and significant crop losses and would provide permanent disaster assistance," McCauley says.
According to an NCGA release, NFSA is designed to increase the market orientation of the Commodity Title, enhance the targeting of farm support so that payments arrive when farmers most need assistance and increase the efficiency with which taxpayer dollars are spent supporting agriculture.