12.2 Farm Income and Production Stability
Modern, comprehensive risk management programs are vital to maintaining an affordable, reliable food supply. Risk management encompasses commodity programs, marketing, and crop insurance programs. U.S. farm policy must balance the cost of agricultural production and need for a market-driven safety net, while finding innovative ways to support producers and provide a consistent, affordable food supply. NASDA encourages Congress and USDA to work with state departments of agriculture in the development and implementation of new products and programs.
- NASDA believes federal policies should support and ensure farm profit viability and production stability.
- NASDA believes financial tools that assist beginning and financially distressed producers should be developed and enhanced through federal, state, and private resources.
Farm Service Agency
- NASDA encourages adequate funding for all FSA loan programs. NASDA supports wide access to FSA programs and encourages FSA to develop materials to help producers graduate to commercial credit.
- NASDA believes the FSA beginning farmer down payment program should be improved by extending the program's current loan amortization to 30 years. NASDA recommends removing "Aggie Bonds" from the individual state limits on bond volumes.
- NASDA believes risk management tools must be flexible, comprehensive, and readily available to producers. Programs should allow for frequent updating of production data and utilize sound actuarial practices.
- Crop and livestock insurance and disaster programs must complement one another to ensure adequate coverage for producers, while working with risk management programs.
- In addition, the federal government should provide a commodity safety net in a manner that minimizes production distortion.