MITCHELL, S.D. (AP) ” South Dakota’s agriculture organizations are starting to develop their plans for congressional work next year on a farm bill.
Some groups want to keep the current version instead of drafting another when it expires in 2007. Others say changes are needed in things like crop insurance, loan deficiency payments and timeliness of congressional aid.
The Loan Deficiency Payment Program, which guarantees the price of commodities before the growing season begins, helps farmers know what to expect at harvest time, said Curt Fox, Farm Service Agency executive director for Davison and Hanson counties.
But in a year like this, when drought and extreme temperatures cut deeply into yields, a program guaranteeing price doesn’t help as much. If a farmer expects the same corn yield that he harvested last year, then sees that cut in half by the fall, the loan deficiency payments only guaranteed to make up price on bushels that came in, so his income could be half of what he hoped for in the spring.
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