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Groups Urge Early Out for CRP Contract Holders

2/20/2007
Jim Wiesemeyer,

via a special arrangement with Informa Economics, Inc.

Groups urge ability to get out of CRP without penalty

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National Grain and Feed Association (NGFA) and other grain trade groups want USDA to act on CRP acres. The National Grain and Feed Association (NGFA) and 29 other national and state trade associations are calling on USDA Secretary Mike Johanns to provide flexibility to producers with land currently enrolled in the Conservation Reserve Program (CRP) to respond to the current strong demand for corn and other grains.

At a minimum, the groups said in a letter to Johanns, that he should allow producers the flexibility to remove certain classes of land from the CRP, without penalty. The called the requested action "critical" and called on Johanns to make the decision "as soon as possible" to allow farmers to react to market prices.

The groups in part said they based their decision on the Bush administration's 2007 farm bill proposal that noted that 27 million of the 39 million acres currently enrolled in the CRP were suitable for crop production.

"We support the goal of reducing reliance on fossil fuels and imports of foreign oil, but the market faces significant challenges in producing adequate quantities of corn and other grains before cellulose becomes proven as an economically viable feedstock," the groups said in the letter. "Realistically, harvesting biomass from CRP land does absolutely nothing to relieve potential economic pressures in corn (and other grain) markets in coming years." The groups were referring to the Bush administration proposal to allow harvesting of biomass crops on CRP ground for the production of ethanol.

Given that cellulosic ethanol is not yet commercially viable, the groups said that to based proposals "strictly on the hope that a technological breakthrough will occur at some future unknown point in time, in particular when so many sectors' economic health" are riding on the outcome.

In addition to the NGFA, the letter was signed by the following:

the Agricultural Retailers Association
American Beverage Association
American Feed Industry Association,
American Meat Institute,
Biscuit and Cracker Manufacturers Association,
National Cattlemen's Beef Association,
National Chicken Council,
National Oilseed Processors Association,
National Pork Producers Council,
National Turkey Federation,
North American Export Grain Association,
North American Millers Association and
The Fertilizer Institute.
California Grain and Feed Association,
Grain and Feed Association of Illinois,
Indiana Grain and Feed Association,
Kansas Grain and Feed Association,
Michigan Agribusiness Association,
Michigan Bean Shippers Association,
Mid-South Grain Association,
Minnesota Grain and Feed Association,
Missouri Ag Industries Council,
Nebraska Grain and Feed Association,
North Dakota Grain Dealers Association,
Oklahoma Grain and Feed Association,
Pacific Northwest Grain and Feed Association,
Rocky Mountain Agribusiness Association,
Texas Grain and Feed Association
Wisconsin Grain and Feed Association.


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 

 


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