ALTERNATIVES FOR THE 20012002 FARM BILL

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ALTERNATIVES FOR THE 2001-2002 FARM BILL

• The First Chapter Commission on 21st Century
  Production Agriculture Report

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• The Commission
• 11 Members representing a broad cross section
  of U.S. agriculture

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Commission Members

• Barry Flinchbaugh
• Bruce Brumfield
• John Cambell
• Donald Cook
• Jim Dupree
• Charles Kruse

• William Northey
• Ralph Paige
• Bob Stallman
• Leland Swenson
• Don Villwock

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Government Will Remain Active

• Ag is important
• It is inherently volatile
• It relies on markets that transcend national
  boundaries
• Individuals have no control over supply and demand

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Farm Policy Goals

• Abundant food supplies at reasonable prices
• Prosperous economic climate for farmers
• Maintenance of family farms as a dominant part
  of the system
• High quality of life for all individuals living
  in rural areas

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Appropriate Roles

• Insure Competitiveness (Structure)
• Encourage Efficiency (Competitiveness)
• Base all Policy on Sound Science
• Enhance Food Safety Environment
• Animal and Plant Safety
• Research Extension
• Risk Management
• Special Programs for Small Farms
• Adequate Safety Net with Minimal Market Distortion

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The Safety Net
Fixed AMTA plus counter-cyclical income Support
(SIS) program
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SIS Payments
Triggered when aggregate program crop gross
income falls below some historic reference
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Retain LDPs, Adjust rates
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Remove All Payment Limits
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Risk Management

• Study of feasibility of actuarially sound
  crop/rev. insurance by private companies
  vouchers to farmers
• Tax Deferred FARRM Accounts

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Conservation

• Continue CRP
• Continue EQIP

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Trade

• Endorses WTO position put forward by U.S. in 2000
• Endorses Comprehensive Negotiation
• Endorses Fast Track
• Omit Labor and Environment

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Sugar

• Adopt Marketing Loan
• Domestic Market and Production Controls
• Direct Payments

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Peanuts

• Phased Reduction of Quotas, with Compensation
• Quota Movement Across State Lines
• Subsidies to Manufacturers for U.S. Peanuts
• Marketing Loan/Direct Payments

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Tobacco

• Transfer Quotas Across State and County Lines
• Buyout Program
• Marketing Loan

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Small Farms

• Create Agency Within USDA

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Dairy

• Marketing Loan
• Direct Payments
• Mandatory Supply Control
• Forward Contracting Options
• Expand Dairy Compacts
• Revenue/Gross Margin Insurances