Legislation Includes Key ASA Priorities on Income Support, Biodiesel and More

The American Soybean Association today applauded passage of the Farm, Nutrition, and Bioenergy Act by the U.S. House of Representatives. "This important legislation improves on the 2002 Farm Bill by increasing the income safety net for soybean producers, encouraging domestic production of soy-based biodiesel, authorizing a new program to promote healthy oilseeds, and increasing funding for the McGovern-Dole Food for Education Program," said ASA President John Hoffman. "ASA appreciates the bipartisan efforts of Members of the Committee on Agriculture, and looks forward to working with their counterparts in the Senate to further strengthen programs that benefit U.S. soybean farmers."

The remarks by Hoffman, a soybean producer from Waterloo, Iowa, followed final passage of the House version of omnibus five-year legislation, often referred to as the 2007 Farm Bill, on a 231 to 191 vote after two days of consideration on the House floor. Key provisions affecting soybean producers and the U.S. soybean industry include:

• The soybean target price is increased to $6.10 per bushel, up from $5.80 per bushel in the 2002 Farm Bill. Hoffman stated that "Improving soybean income support is a top ASA priority. The House bill is a step in the right direction, which we hope to improve on in the Senate version."
• An alternative revenue counter-cyclical program is authorized as an alternative to the existing price-based program. "Soybean farmers in different parts of the country will have the option to sign up for either program," the ASA President noted. "This will give us a chance to see which approach works best."
• A new CCC Bioenergy Program is authorized and funded at $1.4 billion to support domestic production of biodiesel, cellulosic ethanol, and biomass-based energy. Hoffman said that "Strengthening the Federal commitment to support biodiesel is critical to the competitiveness of this new industry in the face of imports of biodiesel and biodiesel feedstocks from countries which subsidize their producers."
• A new "Commodity Quality Incentive Program for Healthy Oilseeds" is authorized to encourage increased production of oilseed varieties that do not require partial hydrogenation, which creates unhealthy trans fats. "ASA worked closely with the American Heart Association to include this program in the bill," the ASA President stated. "Increasing production of healthy oilseeds will allow food companies to eliminate trans fats in their products without raising the level of unhealthy saturated fats."
• Mandatory funding of $840 million over five years is provided for the McGovern-Dole Food for Education Program, under which meals are provided to school children in developing countries. "ASA has long supported food assistance programs that bring more nutritious soy-based products to the diets of needy people around the world," Hoffman said. "The McGovern-Dole Program complements ASA’s efforts to promote soy protein through the World Initiative for Soy in Human Health (WISHH) program."