The American Soybean Association (ASA) expressed support for and urged early House passage of the Farm Bill completed by the House Agriculture Committee last night. ASA indicated that it will strongly oppose any amendments that would weaken commodity supports or other key provisions in the bill on the House floor.

Key provisions of interest to soybean producers are included in the Commodity, Energy, Conservation and Trade Titles of the omnibus five-year legislation. The Commodity Title includes a soybean target price of $6.10/bu., up from the current level of $5.80/bu., and continues the $5.00/bu. soybean loan rate and $0.44/bu. direct payment.

"Although ASA’s Farm Bill proposal call for a soybean target price of $6.85, $6.10 is a step in the right direction toward rebalancing the support provided to oilseeds in relation to other program commodities," said ASA President John Hoffman, a soybean farmer from Waterloo, Iowa.

During markup of the bill, the Committee adopted an ASA-backed amendment by Rep. Nick Lampson (D-TX) that authorizes a program to encourage production of oilseed varieties with high-stability oils that can replace trans fats in foods. Soybeans with high-stability oils offer healthy alternatives, but can have higher initial production costs.

Included in the Energy Title of the Farm Bill reauthorization passed by the Committee is a $1.5 billion bioenergy program, supported by ASA, under which the Commodity Credit Corporation would support production of biodiesel and other bio-based renewable fuels using domestic feedstocks. The bill also reauthorizes the Biodiesel Fuel Education Program, and increases funding from $5 million to $10 million over five years.

"ASA supports these energy initiatives which help expand markets for soybean producers," Hoffman said. "As the measure moves forward, ASA will be working to ensure that the proposed funding levels for the bioenergy and biodiesel education programs are secured, and that the bioenergy program is structured for maximum effectiveness."

The bill continues and expands on a strong commitment to conservation. It continues the Conservation Security Program (CSP) with some proposed restructuring, and funding for the Environmental Quality Incentive Program (EQIP) is increased by $1.4 billion.

"ASA supports a robust Conservation Title that emphasizes programs on working lands, including restoring funding for the Conservation Security Program and increasing funding for the Environmental Quality Incentives Program," Hoffman said.

The Trade Title will increase Funding for the Market Access Program to $225 million from $200 million. It reauthorizes Foreign Market Development (FMD), P.L. 480 Title I, Title II, Food for Progress and the McGovern-Dole Food for Education.

"ASA supports increased funding for the Market Access Program and the reauthorizations of the Foreign Market Development Program and the Food Aid Programs," Hoffman said.

ASA’s 2007 Farm Bill proposals are available here.