The American Soybean Association (ASA) today applauded approval by the Senate Agriculture Committee of its proposal for the 2007 Farm Bill. ASA President John Hoffman, a soybean farmer from Waterloo, Iowa, said that "ASA appreciates action by the Senate Agriculture Committee in reporting a bill, and urges its early consideration by the full Senate, so we can complete omnibus farm legislation this year." Hoffman added that "while the bill passed by Committee does not fully reflect ASA’s priorities on support for soybean producer income and biodiesel production, ASA will work with both Senate and House Conferees to address these issues and reach an agreement that will meet with needs of U.S. soybean farmers."

Hoffman’s comments followed a two-day mark-up by the Senate Committee during which draft legislation introduced by Chairman Tom Harkin (D-IA) was debated and several amendments were considered. The bill would establish two farm program options, including the current "three legged stool" of marketing loan, direct payment, and counter-cyclical program or an Average Crop Revenue program. The latter would include a fixed payment of $15 per base acre and a payment equal to the shortfall between a state’s target revenue and actual state revenue for a commodity at the time of harvest. ASA has supported offering an optional revenue-based program to producers.

Amendments adopted included one by Senator John Thune (R-SD) that restores a producer’s option to take a Loan Deficiency Payment (LDP) in lieu of a marketing loan when prices are below loan level at the time of harvest. ASA had written a letter to the Committee urging restoration of the LDP option, and was advised by Senator Thune’s office that the amendment was offered as a result of ASA’s initiative.

Responding to the Senate bill as reported by the Committee, ASA President Hoffman commented that "the Senate legislation still includes provisions that ASA will work to address as it moves to the Senate floor and to Conference with the House farm bill." According to Hoffman, "these provisions include increasing the soybean target price from $6.00 to a minimum of $6.30 per bushel, and increasing funding for the Bioenergy Program for Advanced Biofuels."

Hoffman stated that "ASA strongly opposes introduction of the recourse loan under the proposed ACR program, and we will continue to work to eliminate it in Conference." Hoffman concluded that "ASA would like to ensure funding for the Quality Incentive Program to promote production of soybeans with high-stability oils, to enable U.S. food companies to eliminate trans fats without increasing use of unhealthy saturated fats."

The Senate farm bill is expected to move to the Senate floor in the next two weeks, and Conference with the House Agriculture Committee is anticipated in December. Provisions of the 2002 Farm Bill will begin to expire in early 2008.