ISSUE 5
January 1997

Sharpest curve in new farm bill complete

By Tracy Sayler
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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.

 You’ll hear more about crop risk management, including a new tool called crop revenue coverage. There’ll be debate on bringing back the farmer-owned reserve program. You’ll be introduced to another CRP signup under tighter rules, and new farmer-friendly conservation provisions. There might be tinkering on loan programs and attention to landlord/tenant issues. Expect another run at fixing a miscalculation of the first-year barley payment.

But generally, 1997 will be a quieter year for farm legislation, says Bruce Randy Weber, associate administrator of the USDA’s Farm Service Agency, Washington, D.C.

As it should be, considering the 1996 Farm Bill, only the largest body slam of U.S. farm policy in over half a century.

The acreage transition last year will likely be the sharpest curve on the road of the new seven-year farm program. Comparing crop plantings in 1996 to 1995, Weber says the total U.S. acreage change of 18.5 million acres is the largest year to year increase in a decade, and possibly the largest in history.

Further, there was an 80% increase in U.S. farm program enrollment in 1996, compared to the average participation of farms from 1991-95. Still, he says the transition went smoothly, considering the remarkable changes made is such a short time period.

Looking into the future, Weber says USDA estimates that the wheat price will average $4.25 per bushel, and barley, $2.38, from crop years 1997-2005 (see chart).

However, projections are prefaced by a Conservation Reserve Program pegged at 36.4 million acres, says Weber. New rules for CRP are being finalized, and another signup should come before next spring, possibly as soon as February.
Copyright Prairie
Grains Magazine

January 1997