The American Soybean Association (ASA) has shared its views on key issues affecting U.S. soybean farmers with Senator John McCain in advance of the Republican convention September 1-4, in Minneapolis-St. Paul. These issues include farm policy, international trade, tax, energy and environmental policies.

"We are concerned by statements that attack the 2008 Farm Bill that leave one to believe that most funding in the farm bill is for government payments to farmers when this is not the case," said ASA President John Hoffman, a soybean producer from Waterloo, Iowa. "Over two-thirds of the funding authorized in the farm bill is for the food stamp program and other nutrition initiatives. Another 9 percent is reserved for conservation initiatives, 14 percent to provide a safety net for farmers, with the remaining 10 percent spent on energy initiatives, rural development, research, trade promotion, international food assistance, crop insurance, and other priorities. In fact, spending for commodity support programs actually decreased $1.7 billion, and the commodity program share of the annual federal budget fell threefold – from 0.75 percent to 0.25 percent – when compared to the previous farm bill."

ASA strongly supported enactment of the 2008 Farm Bill and is working with other farm organizations and the U.S. Department of Agriculture to ensure that the Average Crop Revenue Election (ACRE) program offers the best farm income safety net possible as an alternative to the traditional farm program.

"We know that farmers want to receive their income from the market, as they currently do," Hoffman said. "We also know that markets are cyclical, and that a responsible safety net is essential in times of low prices or low yields."

The benefits of good policies for agriculture do not stop at the door of farm families, but support both rural and urban economies with the food and fiber industry creating 25 million jobs, producing $3.5 trillion in output, and accounting for 15 percent of U.S. Gross Domestic Product – larger than the construction, transportation, and utilities industries combined.

On environmental policy, ASA believes farmers have a strong interest in applying responsible conservation practices on their working lands. Farmers have responded well to voluntary, incentive-based approaches to conservation.

"We do believe that, with the current strain on current production areas to meet food, feed and fuel needs, it is appropriate for those acres in the Conservation Reserve Program (CRP) that are not environmentally-sensitive to be returned to production as their contracts expire," Hoffman stated.

On climate change issues, the United States must ensure that U.S. agriculture remains economically viable and that U.S. soybean producers can compete with foreign production. It is imperative that a voluntary, non-regulatory approach be maintained toward agriculture. In addition, increased fuel, natural gas, and fertilizer costs that could result from enactment of a cap and trade program could be significant. While there is great potential for agriculture to benefit under an offset allowance program, it is critical these gains not be negated by rising energy and input costs.

"The United States sells nearly one-half of its annual soybean crop abroad in the form of soybeans, soybean oil, soybean meal, and livestock products," Hoffman said. "Accordingly, ASA has historically supported trade agreements as the best way to open global markets to exports of U.S. products. U.S. agricultural exports contributed nearly $90 billion to total U.S. exports in 2007, and soybeans and soy products accounted for more than $12 billion of those exports."

Regarding Free Trade Agreements (FTAs), ASA strongly supports the FTAs that have been completed for Congressional consideration. ASA also supports renewal of Trade Promotion Authority (TPA) to enable the next Administration to continue to negotiate FTAs and regional trade agreements, which are all the more important in the absence of a multilateral agreement under the WTO.

"We are prepared to see trade-distorting farm support programs reduced to enhance trade liberalization," Hoffman said. "However, importing nations with high tariffs on agricultural products, particularly developing countries, must take comparable steps to opening their markets to U.S. exports. In this regard, ASA was not satisfied with the status of the Doha trade negotiations at the time they were suspended earlier this month, and supports the United States’ refusal to accept an unbalanced outcome."

ASA supports tax policies that will allow farms to be passed on the next generation of family farmers. These policies include exemptions from estate taxes of $5 million for each spouse, and accelerated depreciation of farm assets.

"ASA also strongly supports tax policy that promotes the growth of renewable and biobased industries," Hoffman said. "Extension of the biodiesel tax incentive is essential in order to increase home-grown diesel fuel supplies and refining capacity. This is ASA’s top legislative priority during the remainder of the 110th Congress."

Biofuels, such as ethanol from corn and biodiesel from soybeans, are making a contribution to the world’s fuel supply, which is holding gasoline and diesel prices lower at the pump for consumers and reducing dependence on imported petroleum.

"We very much hope that agriculture and other issues of importance to rural Americans plays a prominent role in the forthcoming national policy debate," Hoffman added. "ASA looks forward to participating in this process, and we offer our services as a resource during the Presidential campaign over the coming months."