10/09/06 NAWG board okays farm bill proposal

Farm and Ranch October 9, 2006 The Board of Directors of the National Association of Wheat Growers unanimously approved a resolution last week that calls for a higher target price and an increased direct payment within the structure of the 2002 Farm Bill, in new farm legislation to be written next year. NAWG President Dale Schuler of Montana explains what they are asking for. Schuler: "We decided to request an increase in the direct payment from the current level of 52 cents up to $1.19. And also we are requesting that the target price that the counter cyclical payments are calculated on be increased from $392 level up to $5.29 a bushel. And the reason we have asked for those levels is through all the research of the economic conditions our producers are facing, those are the levels needed for us to remain profitable." Schuler says while many wheat growers support the structure of the 2002 Farm Bill, both the counter cyclical and marketing loan programs have provided little if any benefit for them, in part because of recurring disasters in many wheat growing regions and in part because the target price for wheat was set too low for the current market conditions. The NAWG board is not suggesting any changes for loan rate, LDPs, or marketing loans. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.