Amid dwindling corn stockpiles and surging corn prices, a national farm group is urging re-enactment of a farmer-owned grain reserve.
National Farmers Organization asserts that with less than a four-day supply of corn projected to be on hand by Sept. according to Farm Futures analysts. NFO believes establishment of a grain reserve should be a top food security priority.
"When you consider that the U.S. had the third largest corn harvest on record last year, but is still experiencing soaring world demand pressure and inventories projected at 15-year lows by August, the time has certainly come for a farmer-owned grain reserve," said National Farmers Ag Policy Analyst Gene Paul.
Paul said the federal government could facilitate farmers isolating a corn supply of last resort, with provisions of grain release at price levels of 120 percent of production costs.
National Farmers reaffirmed its position on four other farming issues concerning producers this spring. The organization applauded President Barack Obama's announcement last week to cut America's oil imports by one third in the next 10 years.
"Renewable fuel production that includes cellulosic biofuels will help the nation secure its energy future, while protecting the environment," Paul said.
Organization leaders also called for swift publication of the final GIPSA rule by USDA. Rapid consolidation and vertical integration of livestock markets in the last two decades has caused economic harm to both producers and rural America. The organization said fairness and competition in the nation's livestock and poultry markets are critical.
Federal budget pressures notwithstanding, the organization advocated continued funding levels for crop insurance. "Agriculture and the farm safety net were already cut by $4 billion in 2010, as a result of the Standard Reinsurance Agreement for federal crop insurance programs," Paul emphasized. "Therefore, we believe this important risk management tool should remain in place at current funding levels."
And, National Farmers supports continued funding for Livestock Gross Margin Insurance for dairy producers. A federal risk management program for dairy farmers, it provides producer protection against the loss of gross margin (market value versus feed costs).
National Farmers is a group marketing, price negotiating and risk management organization for the nation's farmers and ranchers.
Source: Argentine Beef Packers S.A.
Back to News Headlines