September 26, 2007

 

American corn growers urge USDA to focus on land reservation

 

 

The American Corn Growers Association (ACGA) will oppose any actions by US Department of Agriculture (USDA) to allow an early exit from the Conservation Reserve Program (CRP).

 

According to ACGA president Keith Bolin says his organisation will urge "USDA to stay the course on the CRP." He adds ACGA opposes any actions that threaten the integrity of the CRP.

 

He said the USDA's suggestion to allow farmers to exit the programme early is "short-sighted and ill-advised."

 

The CRP was established in 1985 as a voluntary program that allows farmers to retire highly corroding land from production and also ensure a secure income during times of low commodity pricing.

 

In the course of the programme, farmers were able to retire land to reduce degradation of environmentally sensitive areas.

 

Some of these environmental aspects include wetland acreage, runoff into waterways, and wildlife habitat.

 

Currently, the USDA pays US$1.6 billion in annual CRP rental payments to land owners and operators.

 

During their 5 to 10 year contracts, CRP participants practice a number of conservation methods including grass and tree planting and wildlife cover.

 

The continuation of the CRP program is at risk due to budgetary pressures as well as those in the agribusiness sector who want more corn planted next year in order to suppress corn prices.

 

An analysis by the University of Tennessee's Agriculture Policy Analysis Centre (APAC) last year revealed that federal spending on other farm programs would increase exponentially if the CRP was reduced or eliminated, Bolin said.

 

The argument of needing more corn acres is problematic as well, since all CRP acres are highly erodible and very little of it is suitable for corn production, he said.

 

As current USDA projections for next year's corn crop and carryover shows there will be more than sufficient production to cover all needs, Bolin concludes jeopardising lands by removing it from the reservation programme for livestock farmers to buy cheaper corn is "unacceptable".