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Senate Ag Committee farm bill presents challenges for Texas
The Corn Producers Association of Texas is appreciative of the efforts of the Senate Committee on Agriculture, Nutrition and Forestry on the 2012 Farm Bill by passing legislation from the committee yesterday; however, the current bill poses some serious concerns for Texas producers.
During the markup session, Senator Saxby Chambliss (R-Ga.) spoke on the disproportionate impact the presented Commodity Title of the bill has to varying regions across the nation. CPAT concurs with Sen. Chambliss’ sentiments in this regard, as do Chairman of the House Ag Committee Frank Lucas (R-Okla.) and Rep. Michael Conaway (R-Texas) in statements released in response to the Senate committee’s passing yesterday.
As the bill is written, the state of Texas could see a significant reduction in the baseline. Texas would face a 42 percent reduction in baseline based on the committee’s originally presented bill. While this percentage has likely changed due to some of yesterday’s adopted amendments; the state still faces a substantial reduction.
CPAT Executive Director David Gibson said the organization had the Agricultural and Food Policy Center at Texas A&M University analyze the bill presented by the Senate committee prior to the markup, which show Texas corn producers would not have an adequate safety net if prices for corn, during the life of the 2012 Farm Bill, were to fall below CBO projected prices.
“A safety net reference price for corn and other grains could be added to the bill at levels close to the cost of production for corn farmers at no additional CBO score to bill,” Gibson said. “We hope the committee will reconsider this option as the bill moves forward."
Additionally, the Senate committee’s proposed farm bill has loan rates at the 2002 level, which is significantly below the cost of production for corn producers. CPAT urges this to be revisited in further discussions during the farm bill process.
Crop insurance is very important to corn producers in Texas, but as the key focus of the Agriculture Risk Coverage (ARC) plan adopted by the Senate committee yesterday, many producers in the state will be at a disadvantage. Some Texas producers cannot buy the higher levels of insurance their counterparts in other states can buy, and currently pay a higher premium for the lower levels they do have the option to purchase. This leaves a larger risk margin for our state’s producers to deal with than the ARC plans was designed for.
Further, the proposed payment limit is a tremendous setback for producers, as it is not equitable based on the cost of production for both large and small family farms. This bill set the limit lower than that in the Agricultural Act of 1970, which established the first payment limit.
“Our nation’s producers have enhanced their operations – developing new technologies and management practices to better utilize resources to grow crops and raise livestock, providing food for the world’s growing population,” Gibson said.
These innovations enable each farmer to now feed approximately 155 people per year, compared to the mere 73 people per year in 1970. However, these factors combined with increased input costs such as energy, transportation, implements and fertilizer have driven up the cost of production – further emphasizing the need for an equitable payment limit than one set more than 40 years ago.
As with any legislative proceeding, CPAT understands there are both pros and cons; however, this piece of legislation is a disappointment for producers who were hopeful of having a farm bill passed through Congress this year.
“This bill was specially designed for a crop or two grown in one region of the country and it will not become law,” Rep. Conaway stated following the Senate committee’s passing of the bill. “Today was a big step backward in completing a farm bill this year.”
The organization is grateful of the work to progress this legislation, and looks forward to working with the state’s congressional members on working toward a farm bill which equitably protects producers and our nation’s food, fiber and energy supply.
Corn checkoff referendum passes, five directors elected to TCPB
The referendum held by the Texas Corn Producers Board in January to increase the statewide assessment amounts of corn and silage passed by more than the required two-thirds vote. Additionally, in the tenth statewide election since TCPB became a statewide entity in 1990, five board members were elected or re-elected in the organization’s biennial elections held in conjunction with the referendum. Each person elected will serve a six year term, or until the year 2018.
Corn producers voted in favor of a checkoff assessment of up to $0.074 per ton of silage and $0.01 per bushel of corn, which is produced and sold in Texas, to be collected and submitted to TCPB, effective June 1, 2012.
“This is an encouraging step for producers,” TCPB Chairman Scott Averhoff said. “This assessment will allow the board to continue serving the industry with research, education and promotion that is essential to corn producer profitability, while compensating for reduced acreage and higher operating costs from when the original assessment was determined in 1980.”
David Ford of Dumas and Bart Thoreson of Gruver were re-elected to their seats in Voting Region One, which encompasses the Northern Panhandle. Scott Averhoff of Waxahachie was re-elected to his seat in Voting Region Three that reaches from northeast Texas to El Paso. Additionally, Jay Beckhusen of Buckholts was elected to serve his first term as a TCPB director from Voting Region Three. Charles Ring of Sinton was re-elected to his seat in Voting Region Four, which covers the Coastal Bend.
Prior to the elections, TCPB divided the state into five separate "voting regions" so board members would more closely represent the corn interests of a particular region of the state. Likewise, all Texas corn producers would have representation on the board. As there are 15 board seats on TCPB, the voting regions are designed for each seat to represent 1/15th of the total corn production in Texas as reported by the Texas Crop Reporting Service.
The Texas Department of Agriculture ratified the results of the referendum and elections.
The five board members will be sworn in on April 3, 2012 during TCPB's quarterly board meeting in Lubbock by Lance Williams, Texas Department of Agriculture.
News releases and legal notices on the referendum and elections were sent to all major newspapers in the state. The voting period was from Jan. 9-23, 2012.
The next election will be in 2014 with five seats up for election.
Advantages of drip irrigation seen in 2011 drought
It’s no secret that Texas’ driest year on record dealt a tough hand for producers. Agricultural producers across the state saw yields cut in half (or worse) due to Mother Nature’s extreme heat, high winds and lack of moisture. However, David Carthel, a Parmer County agricultural producer, found success in using a newly installed drip irrigation system on his 70-acre corn field. Texas Corn Producers followed Carthel’s corn field on drip irrigation from planting to harvest, and has documented it in a series of videos, which are now available online at www.watergrowsjobs.org/drip.html.
Carthel realized the need to conserve resources well before tackling the drought-stricken year in order to ensure resources for future crops, while still maintaining or increasing yield. Carthel said drip irrigation was the key to making that happen for his operation.
Carthel knew the greatest hurdle in growing corn with drip irrigation is getting moisture to the seed to initiate growth. With this challenge in mind, he watered his corn field in three separate sections, fully utilizing his water resources in each section to ensure adequate moisture reached the seed. While this created three separate growth stages, it gave Carthel’s field the start it needed, and the best chance for survival during the drought through the growing season.
Carthel’s corn progressed at a normal pace, while producers with neighboring fields were forced to divert water off crops to concentrate resources elsewhere. Carthel observed this field fared significantly better than his other fields on sprinklers or other irrigation methods. He attributes its success to the drip irrigation’s ability to apply moisture directly to where the plant needs it – its root zone, reducing moisture loss to evaporation.
At harvest, Carthel’s drip irrigated corn yielded 30 percent better than his fields using alternative irrigation methods.
“I can tell by this year, there won’t be a year worse, harder and more challenging than this year to get a crop up,” Carthel said, “and my drip proves that you can do it.”
Carthel said his success with the drip system on this field initiated him to work with the USDA-Natural Resources Conservation Service to further expand his drip irrigation in his operation. NRCS offers technical assistance to producers in developing conservation plans and helping producers implement irrigation water management practices for the purposes of conserving ground water and improving water quality. Carthel utilized NRCS’ Environmental Quality Incentives Program (EQIP) to install his drip irrigation system in 2011.
As a continuation of their Water Grows Jobs campaign, the Texas Corn Producers produced a series of four brief videos following Carthel’s drip irrigated corn field from its beginning to harvest. Follow the journey online through the 2011 growing season, where Carthel’s corn crop benefited from drip irrigation during the worst drought year on record. To view the videos, and to learn more about drip irrigation, visit www.watergrowsjobs.org/drip.html or go to the Water Grows Jobs YouTube channel.
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