The American Soybean Association has released its proposal for the 2012 Farm Bill, “Risk Management for America’s Farmers,” which aims to help farmers manage the risks they face from adverse weather, crop disease and volatile commodity markets.
The RMAF program would partially protect revenue losses by farmers of soybeans and other program commodities that result from low prices or reduced yields for their crops. It would establish commodity-specific revenue benchmarks for individual farmers based on historical yields and prices, and compensate them for part of the difference when current-year revenue for a commodity on their farm falls below a percentage of the benchmark. “The ASA believes the current farm program safety net can be made more effective, efficient and defensible by reallocating baseline funding to this revenue-based program that improves risk management and complements crop insurance,” said ASA President Alan Kemper. Because the proposal would replace current farm programs, this proposal would also result in savings that help agriculture contribute its fair share to deficit reduction.
All planted and prevented planted acres would be covered under the plan. The program would complement the existing crop insurance program used by most farmers, which the ASA strongly supports and believes should be continued.