WASHINGTON, DC – U.S. Senator Pat Roberts today released the following statement regarding the Senate Committee on Agriculture, Nutrition and Forestry’s consideration of the Agriculture Reform, Food and Jobs Act of 2013 (the 2013 Farm Bill):

“For the last two years, we all worked very hard to sign a reform oriented Farm Bill into law. Unfortunately, we were unable to accomplish this in 2012 and we are back around this table once again today.

“Last year, I was proud to say that we put together a bipartisan bill that strengthened and preserved the safety net, i.e. crop insurance, for our farmers and ranchers and rural America, while providing close to $24 billion in deficit reduction.

“And, guess what? We even passed a bill through the Senate with regular order!

“However, at the end of the year we had to pass an extension of the 2008 Farm Bill to provide some certainty to producers and prevent reverting back to the distributive and outdated permanent law. 

“This time a year ago, I believed that the Farm Bill we passed in the Senate was the best bill possible.

“Even though many pieces of this bill look similar – there have been major changes to the approach of this Farm Bill.

“Let me be clear - I still want to pass a Farm Bill and provide long-term certainty to farmers, ranchers, and their families in Kansas and across the country.

“However, as it stands at this point today, this is not a reform bill. This is a rearview mirror bill.

“Target prices – under any name, whether ‘Counter-Cyclical Payments’ or ‘Adverse Market Payments’ –are government subsidies - which are proven to be trade and market distorting.

“It is beyond frustrating that a year ago we passed a bill with no counter-cyclical program – real reform – and today we are asked to support the new Adverse Market Payments program – that just AMPs up (aptly named) subsidies and continues target prices for all commodities.

“This mark not only sets target prices, it raises the guaranteed price level for rice by $2.80 to $13.30 and peanuts jump from their $495 target price per hundredweight to $523.

“These prices are set so high that they may cover a producer’s full cost of production, essentially guaranteeing that a farmer profits if yields are average or above average.           

“In this budget environment and at a time when we are looking to make smart cuts to farm programs, I simply don’t know how to justify a program that pays producers more than the cost of production and essentially becomes nothing more than another income transfer program, not a risk management tool.

“Take the target price of $13.30 per hundredweight for rice included in this mark.  According to USDA, in 2012 the full cost of production for rice in the Mississippi Delta was $10.90 per hundredweight.

“Keep in mind that the full cost of production includes everything from seed and fertilizer to land to the opportunity cost of a producer’s unpaid labor.  A target price at $13.30 per hundredweight is simply guaranteeing a profit. 

“To be specific, it’s guaranteeing a producer in the Mississippi Delta $2.40 per hundredweight in profit.  At an average yield of 79 hundredweight per acre, this amendment would guarantee your average Mississippi Delta farmer a profit of $189.60 per acre. 

“Of course, the real problem with farmers planting for a government program and not for the market is that these programs then only serve to extend the period of low prices.

“We all know this is not a good policy direction and is bound to have unintended consequences, like impacting planting decisions. 

“I understand that rice and peanut farmers will no longer have direct payments, but Kansas wheat, corn, soybean, milo, canola, and even cotton growers are giving up theirs too.

“When base acres were established over 25 years ago, Kansas farmers planted 2.8 million acres of corn, 4.2 million acres of sorghum, 1.6 million acres of soybeans, and 12.1 million acres of wheat.

“In the most recent three year period Kansas farmers planted 4.6 million acres of corn, 2.6 million acres of sorghum, 4 million acres of soybeans, and 8.8 million acres of wheat.

“That is 4.9 million fewer acres of wheat and sorghum and 4.2 million more acres of corn and soybeans.

“Madame Chairwoman, those acreage shifts occurred because farmers made those decisions – not Washington. Our producers have planted for the domestic and international markets.

“I also have longstanding WTO concerns.  The United States lost the cotton WTO case to Brazil in part because of the decoupled target price program.

“It simply isn’t right to force that same risk onto other commodities when we already know the potential pitfalls. The WTO stove is hot. We should not reach out to touch it again.

“Madame Chairwoman, I hope that we can improve upon this bill today to more resemble the risk-oriented and market based approach this committee has previously taken.”

Barring major changes to the Chairwoman’s mark during consideration today, Senator Roberts intends to vote against reporting the bill out of Committee. Among other amendments to attempt to improve the bill, Roberts will offer amendments to restore integrity to the Supplemental Nutrition Assistance Program while saving billions in taxpayer dollars.

Senator Roberts is senior member and former Ranking Member of the Senate Agriculture Committee. He is the first member of Congress in history to serve as both Chairman of the House Agriculture Committee and Ranking of the Senate Agriculture  Committee. Last year, Roberts and Chairwoman Stabenow’s Farm Bill was passed by the Senate with strong bipartisan support.

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