NAWG: Direct Payment needed for wheat

By NATIONAL ASSOCIATION OF WHEAT GROWERS
Friday, May 25, 2007 11:57 AM MDT

WASHINGTON, D.C. - NAWG Do-mestic and Trade Policy Committee Chair-man Dusty Tallman emphasized the benefits of direct payments to Senators in testimony he delivered to that chamber's Committee on Agriculture, Nutrition and Forestry. Tallman, a wheat producer from Bran-don, Colo., reminded the Committee that of the three Farm Bill safety net programs, wheat growers have only received direct payments since the enactment of the 2002 Farm Bill.

He also joined a number of other witnesses in encouraging Senators to take cost of production, rather than just commodity price, into serious consideration.

“Over the term of the 2002 Farm Bill, wheat growers, like many farmers, have seen some price increases for their commodities. While this is good news for growers, it does not alleviate one of the biggest challenges in the farming sector today are skyrocketing production costs,” Tallman said.

Wheat producers have received no loan deficiency or counter cyclical payments over the term of the 2002 Farm Bill because many growers have been repeatedly hit by natural disasters and because the wheat target price was not set according to the market.

NAWG recommends a direct payment for wheat of $1.19 per bushel and a target price for wheat of $5.29 per bushel for the 2007 Farm Bill, while maintaining the marketing loan program as currently structured. NAWG supports a higher direct payment because it is the least market distorting and most World Trade Organization friendly program of the current farm policy programs. It is also the only safety net growers, their bankers and their communities can depend on in times of drought or total crop loss.

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