The Texas Wheat Producers Association (TWPA) strongly supports the efforts led by Chairman Frank Lucas and Ranking Member Collin Peterson in crafting the Federal Agriculture Reform and Risk Management Act (FARRM). FARRM is a strong, bipartisan bill that establishes equitable farm policy, reduces the national debt and provides a sustainable and fiscally responsible safety net to farmers in Texas and across the U.S.
The following outlines supportive measures of the TWPA as they relate to FARRM.
Title I of FARRM:
Under Title I of FARRM, the Direct, Counter-Cyclical, Average Crop Revenue Election (ACRE) and Supplemental Revenue Assistance Payments (SURE) programs are repealed and growers will now choose between a Price Loss Coverage (PLC) program and a Revenue Loss Coverage (RLC) program.
As established under Title I, a producer would be given an option to choose between the PLC program, which works to address deep, systemic price declines and the RLC program which addresses a shallow band of revenue losses. RLC is similar to the Agriculture Risk Coverage (ARC) program established under S.3240. In addition, producers who elect to participate in the PLC program may also purchase newly established supplemental crop insurance to help reduce some portion of their risk exposure.
The TWPA is strongly supportive of the farm programs system established within Title I of FARRM as it works to address the diversified risk management needs of all farming operations. The language also minimizes interaction or duplication of Federal Crop Insurance, and achieves over $14 billion in savings to taxpayers.
In addition, we are extremely pleased that the bill does not reopen actively engaged rules. We believe the commodity title as written under FARRM is equitable, market-oriented, deferential of crop insurance, and fulfills the core principle of a commodity title – to protect our nation’s agriculturalists when they need it most.
Title XI of FARRM:
As it relates to Federal Crop Insurance, we strongly commend the Chairman and Ranking Member for heeding producer requests of “doing no harm” to the current federal crop insurance program and making improvements to what has become the cornerstone of U.S. farm policy.
As mentioned previously, the TWPA is supportive of the Supplemental Coverage Option (SCO) established under the crop insurance title. SCO allows a producer to purchase additional buy-up coverage on an area-wide group risk policy to address losses not covered by individual policies.
As a climatically-diversified row crop production state we support the continuation of insuring by permanent enterprise units and are strongly supportive of the ability to segregate between non-irrigated and irrigated units. We are also supportive of the enhancements made to actual production history (APH) in order to maintain sustainability for Texas growers.
We are encouraged to see that within FARRM there is meaningful outreach to address the risk-management needs of underserved crops and producers; including beginning farmers. FARRM also requires the Farm Service Agency (FSA) and the Risk Management Agency (RMA) to share information which will eliminate errors and ensure the accuracy of reported information.
With respect to the other titles of the farm bill we commend the Chairman and Ranking Member’s work in consolidating and streamlining conservation programs in order to provide a more effective delivery mechanism. In addition, we are greatly supportive of the reauthorization of the Market Access Program and the Foreign Market Development Program. More than 50 percent of U.S. wheat is exported annually and these programs allow growers to be competitive in a global market. Finally, we are supportive of a number of regulatory reforms, including H.R. 872 to repeal duplicative pesticide permitting requirements that are already covered by FIFRA.
In conclusion, the Texas Wheat Producers Association strongly supports the Federal Agriculture Reform and Risk Management Act (FARRM) as crafted by Chairman Lucas and Ranking Member Peterson. We fully support the consideration and adoption of FARRM by the House Agriculture Committee.
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