Washington, D.C., July 10, 2007—“The House Agriculture Committee recommendations for Title I commodity subsidies extend the outdated, broken system of the past—moving policy in the wrong direction and making bad policy worse,” said Ralph Grossi, president of American Farmland Trust (AFT) and a third generation farmer. “We must create policies that provide producers with a safety net while also ensuring that farm and food policy keeps current with a changing world.”

During the course of the last farm bill, large numbers of producers were left out of the safety net system and received little or no protection in times of need. “Farming is a risky business and the government should provide a safety net and tools to help producers manage risk—but extending the existing counter cyclical programs will not do that,” Grossi says. “The current system in which Congress sets support prices will encourage overproduction of certain crops, distort the marketplace and continue to leave many farmers unprotected when they face declines in yield.”

“We know that Congress cannot accurately forecast prices for the life of the next farm bill. Yet the House Agriculture Committee’s draft farm bill continues that broken system and even increases certain politically set target prices and loan rates. This will create a fiscal time bomb waiting to explode not if, but really when, high commodity prices drop,” Grossi added. “During the course of the last farm bill commodity producers received $15-20 billion a year in subsidies when prices were low. If the current rosy price forecasts turn out to be wrong, the cost of farm subsidies will skyrocket above those totals. Farmers and taxpayers deserve better policy than that.”

Instead of following this disastrous path, the House should follow the lead of the U.S. Department of Agriculture, the National Corn Growers Association and American Farmland Trust—all of whom have called for new safety net programs based on revenue protection. These programs can be more market oriented, less trade distorting and more equitable.

“Three simple changes would dramatically improve our counter cyclical programs: 1) protect revenue not just price; 2) link support prices to market indicators; and 3) integrate counter cyclical programs with crop insurance. We know a better policy can be created and we will work with the committee and other organizations to develop a better safety net for farmers,” challenged Grossi.

While the committee has ignored some of the calls for significant reforms in food and farm policy from corn farmers, specialty crop growers, conservationists, anti-hunger advocates, public health officials and taxpayers, there has been some progress made in their recommendations. Bright spots in the committee’s farm bill proposal include: new policies and programs and increased funding for existing programs such as the Environmental Quality Incentives Program, Farm and Ranch Lands Protection Program, Cooperative Conservation Program, Conservation Loan Guarantee Program, Farmers' Market Promotion Program, Value-Added Producers Grant Program and others.

AFT believes these positive steps should be expanded and shortcomings addressed. In addition to necessary changes to Title I programs, many important national priorities remain starved for funding, including feeding programs to address hunger in America, healthy diets programs to encourage consumption of fruits and vegetables, rural development programs to encourage entrepreneurship, and conservation programs to reward stewardship.

“We can put together a better package of policies and programs that will strengthen the future of American agriculture and expand benefits to the public,” said Grossi. “Such a package must include a new market oriented safety net for commodity producers and increased funding to meet the needs of nutrition, conservation, healthy diets, local food systems and renewable energy. We challenge the Democratic leadership and the Republicans not to let this opportunity pass. Don't take the easy way out. Work to develop a better policy for America's farmers, consumers and taxpayers—they deserve it." Grossi concluded.

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Visit American Farmland Trust’s farm and food policy campaign Web site for more information on how we’re working to strengthen the future of American agriculture and ensure fresh, healthy, local food for generations to come.