Wednesday, 04 April 2012 14:35

US should consider subsidy shift

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THE ERA of direct payments is over for US farmers and farm policy should focus on risk management that helps producers who suffer losses on crops actually grown.

That's the word from Senate agriculture, nutrition and forestry committee chairwoman Debbie Stabenow, who says strengthening and expanding crop insurance programmes will be one of her priorities in the next farm bill.

"It is absolutely imperative that we get these policies right," the Michigan Democrat says.

"Every planting season, America's farmers take a huge gamble that their investment will pay off – that the sun, the rain, and the markets will come together in just the right combination so they can make a living and support their families."

Stabenow's comments were made during the final Farm Bill hearing on commodity programmes and risk management.

"We cannot forget that high commodity prices are of absolutely no use to a farmer whose crop was lost in a drought or flood. One storm can wipe out an entire crop and jeopardise a farm in a matter of minutes – whether that crop is cherries in Michigan or wheat in Kansas.

"I have heard again and again from farmers and ranchers across the country that crop insurance is the most important risk management tool."

Stabenow says 16 million people in the US have a job because of agriculture.

"The Farm Bill is a jobs bill, and no farmer in America should lose their job, lose their farm, because of bad weather or market conditions beyond their control."

Stabenow notes locally grown foods are helping to create new market opportunities for farmers and agriculture producers across the country, while also helping to provide families greater access to healthy and nutritious foods.

Regional food hubs and local food systems are helping to create jobs and re-introduce agriculture to a younger generation of up-and-coming farmers and ranchers.

"In Michigan we know that if every household spent just $10 on locally-grown food, we could put $40 million back into the economy...

"When we buy local, we support local jobs."

Growing demand for local food has also created great opportunities for young and beginning farmers, she adds.

"Through farmers markets and food hubs, new farmers are getting help marketing, aggregating and processing their products."

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