Dairy producers testify about their needs
By Jean Caspers-Simmet
simmet@agrinews.com
Date Modified: 05/13/2010 8:57 AM
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DES MOINES — Farmers told the House Agriculture Committee to fix dairy policy, make the ACRE program more workable and adequately fund conservation at last week's field hearing on the Iowa State fairgrounds.
Dane Lang, a dairy farmer from Brooklyn, said the days of milk being produced for $9 or $10 per hundredweight are over and not coming back.
"In 2008 and 2009 reduced demand for exports, excess milk supply and high feed and energy costs created a perfect storm driving prices so low that the very survival of dairy farmers was and still is threatened," Lang said.
He urged national implementation of California standards for solids-non-fat in fluid milk.
"This would reduce supply and improve quality," Lang said.
Adequate incentives are needed to secure a reliable future for dairy producers.
"Dairy farmers are asking for market stabilization," Lang said. "We need a market system that sends accurate signals."
Anita farmer Varel Bailey said policy should increase emphasis on farmland protection and place more emphasis on new soil conservation technologies. New emphasis on site-specific research is also needed. The government-subsidized crop insurance program needs to be redesigned, and the Average Crop Revenue Election Program needs added support and must be simplified and made workable for more farmers.
"Broad-band communications, a modernized electric transmission network, a quality Global Position System signal, a unified cellular phone system, and a modernized USDA computer system are some infrastructure rural America needs," Bailey said.
Richard Bayliss, who farms 2,000 acres in Wapello and Keokuk counties with his wife and two sons, said that production agriculture has become a risky, high-input, high-tech industry.
His operation chose the traditional Direct and Counter-cyclical Payment Program, which coupled with revenue assurance provides a reasonable safety net.
He didn't use ACRE because he found it difficult to apply to his operation. He said ACRE, which sets yields on a statewide basis, puts southern Iowa counties at a disadvantage. ACRE is discounted below the DCP program by 20 percent, which is difficult to explain to landlords.
"ACRE requires a four-year commitment with no opt-out provision," Bayliss said. "This significantly prevents an operation from reacting to changes."
He proposes raising the loan price on corn to a realistic level and designing a straight-forward, streamlined price support program that the producer can sell to his lender.
The new farm bill must evolve but not be a complete 180 degree turn.
"The new farm program needs to be flexible enough to allow for the growth and evolution of the business of farming," Bayliss said.
House Agriculture Committee Chairman Collin Peterson's response to Bayliss' request to raise the loan rate was, "It ain't gonna happen. We don't have the money."
Nick Volz, an Elkhart farmer who raises corn and soybeans, said he has always participated in farm programs, but decided not to enroll in ACRE.
"With the lack of price protection and smaller DCP payments, we didn't believe there were any benefits for our operations," Volz said. "Instead of decreasing prices in ACRE, the support prices should be raised to offset high production costs."
"Perhaps it is time to offer better farm program incentives for pasture/forage/small grain production than for row crop productivity," said Darrell Weems, interim executive director of the Conservation Districts of Iowa.
Funds must be targeted to the most sensitive areas , and in many cases that will be with a watershed approach, Weems said.
"It is important to keep water quality improvement programs local and voluntary," Weems said.