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Johnson's plan for farm bill would provide counter-cyclical payments 

By Jeff Zent, the Forum
September 18, 2000
 
It would cost the federal government less money to support farmers than it has spent trying to distance itself from agriculture, North Dakota Agriculture Commissioner Roger Johnson said Thursday.

Congress' 1996 Farm Bill mandated a continued reduction in farm subsidies, forcing farmers to depend more on market prices.

But because of low commodity prices and natural disasters, the government has spent more than $20 billion a year, for the last three years, to bail out farmers, Johnson said.

For less money, Congress can pass a new farm bill that would provide farmers with counter-cyclical payments - high subsidies when crop prices are low and lower payments when prices rise, he said.

Johnson, a Democrat seeking re-election, held a press conference Thursday to issue his version of a successful farm bill.

The press conference was held at the Northern Crops Institute on the North Dakota State University Campus in Fargo.

Freedom to Farm, the current farm bill, expires in 2002.

"Our current farm policy has created greater uncertainty and less hope for our farmers," Johnson said. "The federal government is now even more involved in agriculture as a result of Freedom to Farm, but there is no coherent, logical public policy served by this involvement."

Johnson's plan for a new farm policy includes:

- Implementing a crop insurance program that protects 90 percent of farmers' cost of production.

- Government payments or higher loans to farmers who participate in a voluntary acreage reduction program.

- Developing farmer-owned commodity reserves (pools) to take crops out of the market when prices are low.

- Developing export programs for new and emerging markets.

- Payments to farmers who voluntarily incorporate conservation management practices.

Johnson's Republican challenger, Clare Carlson, said help must come sooner than the next farm bill.

"There's no doubt that farmers need a stable, long-term program that meets their needs, but we need something sooner than that," said Carlson, who serves as Gov. Ed Schafer's agriculture advisor.