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Texas Agriculture Archive

April 7, 2006

TFB: Rethink disaster 'safety net'

While expressing support for and urging Congress to extend the 2002 Farm Bill, Texas Farm Bureau President Kenneth Dierschke voiced several concerns over the shortfalls of current crop insurance disaster programs discovered by Texas producers affected by drought, wildfire and Hurricane Rita over the past year.

Dierschke presented his statement in Lubbock on March 23 to a Senate listening session on new farm legislation headed by Sen. Saxby Chambliss (R-Georgia), chair of the Agriculture, Nutrition and Forestry Committee.

"The current crop insurance program does an inadequate job of providing a safety net for producers in these situations," Dierschke said. "We encourage Congress to look at ways to improve the crop insurance program, especially pertaining to disasters. The uncertainty of disaster relief programs, the slow process to receive assistance and the scarce dollars to go around do little to give comfort and peace of mind."

Topping disasters in Texas this year is the drought. "It leaves crops in ruin, depletes the soils, dampens spirits, and as we have seen so clearly in Texas wildfires this year, can destroy lives and property," Dierschke said.

Agriculture's importance to our nation's economy and citizens is too great to be left to chance," Dierschke said. "We must continue to provide the world's safest, most abundant and affordable food supply, and the Texas Farm Bureau stands ready to assist your efforts."

Dierschke stressed that Texas Farm Bureau continues to be a strong supporter of the 2002 Farm Bill. "At this time, Texas Farm Bureau and American Farm Bureau policy support an extension of the current Farm Bill, at least until further WTO agreements are finalized," he said.

"Several components of the bill have made it quite effective over the last few years," Dierschke said. Producers and their lending partners rely on the assurances provided by direct payments in planning yearly financing packages. Counter-cyclical payments allow producers to enjoy the benefits of a strong market, but at the same time protect against unexpected plunges in market prices. And loan deficiency payments protect producers against market volatility.

"While payment caps may make great political fodder for some, the practical application is harmful—and potentially devastating, especially to producers in high-input crop situations," he added.