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March 2, 2001

Farm policy report issued

When the Commission on 21st Century Production Agriculture released its final report last month, its recommendations were seen as offering a broad framework for the upcoming farm bill debate.

American Farm Bureau Federation President and commission member Bob Stallman said that the report presents broad concepts "that will help agriculture flourish in the future, and provides opportunity for specific proposals that will encourage a healthy farm policy debate."

Included in the commission's report are recommendations on an income safety net, risk management, conservation and the environment, agricultural trade, individual commodity policies, and small and limited resource farms. The report suggested lawmakers continue with fixed Agricultural Market Transition Act (AMTA) payments, loan deficiency payments and marketing loans.

But the report also cited the need for a countercyclical income support program, or "supplemental income support (SIS)." The SIS program could provide a flexible income safety net when producers are faced with depressed market and/or adverse weather conditions.

Commission members expressed support for the implementation of two risk management elements: insurance programs and savings account programs.

The group suggested an insurance program in which the government provides farmers with a voucher to offset the cost of premiums and said lawmakers should offer Farm and Ranch Risk Management (FARRM) accounts without any time restrictions on how long the money may be left in the account.

With regard to trade, the commission suggested Congress grant the president fast-track trade negotiating authority. As for the United States' role in the World Trade Organization, the group said trade reform addressing labor and environmental issues should not be debated in that forum.

In addition to Stallman, Missouri Farm Bureau President Charles Kruse and Indiana Farm Bureau Vice President Don Villwock also served on the commission.

For further information on the commission, visit www.agcommission.org. Copies of the report are available through the Agriculture Department's Web site at www.usda.gov/oce.