NCGA: Extreme Conditions Show Importance of Safety Net

The National Corn Growers Association is backing a market-oriented revenue countercyclical payment program.

Published on: Aug 23, 2007

Although USDA lists most U.S. corn as in good to excellent condition, drought and other weather problems have hurt production in some parts of the mid-South and Midwest. The National Corn Growers Association says the damage shows the importance of a strong safety net.

"Under our current farm program, producers are paid based on price only," says newly elected NCGA First Vice President Bob Dickey. "When a drought year hits like we have in certain areas, you don't get a payment. And we don't get paid when we need it the most."

NCGA is instead backing the revenue-based safety net proposed by Senators Dick Durbin, D-Ill., and Sherrod Brown, D-Ohio.

"If we go to a revenue-based safety net like the Durbin-Brown bill, it would pay out based on price and yield giving farmers payments we can count on," Dickey says.

NCGA says the measure would replace ad hoc disaster aid, reduce incentive to overproduce, and help reduce production distortions.