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Ag leader asks: Cut conservation acres?
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</st1:City>Washington, <st1:State w:st="on">D.C.</st1:State>The next chairman of the House Agriculture Committee thinks the government should consider releasing idled land for crop production if the acreage is needed to stabilize supplies of corn and other commodities.
Rep. Frank Lucas, R-Okla., who will take over the committee next month, said the next farm bill, due in 2012, could include a provision allowing the Agriculture Department to reduce the size of the Conservation Reserve Program in case of crop shortages.
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That would give the USDA the "flexibility to allow at least enough acres to come out to maintain some kind of equilibrium" between the competing uses of corn for livestock feed, food and biofuels, he said in an interview with The Des Moines Register.
About 30.7 million acres of environmentally sensitive former cropland is currently idled in the conservation program, including 1.7 million acres in <ST1<st1:State w:st="on">Iowa</st1:State></ST1lace. The acreage is planted to grass or trees, and landowners receive an annual payment that averages $55 an acre nationwide and $127 an acre.
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Converting some of that acreage to food production would be better than "encouraging our competitors around the world to plow up more rain forest" or grasslands to grow crops, Lucas said.
Land could be added back to the program when the acreage isn't needed, he said.
The proposal reflects concerns in the food and livestock industries that the increased use of corn for ethanol is driving up the cost of producing meat, milk and other products.
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Environmental groups and hunting interests have fought efforts to shrink the conservation program in the past because the acreage provides wildlife habitat and prevents soil from eroding. That protects streams, ponds and lakes from runoff of farm chemicals.
"We are concerned that we don't sacrifice CRP to ethanol," said Don Carr, a spokesman for the Environmental Working Group, a research and advocacy organization.
"This is pretty clear evidence, if any one needed it, that corn ethanol has an impact on land use and the cost of food," he said of Lucas' idea.
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Lucas is considering hearings on the adequacy of <st1:country-region w:st="on">U.S. </st1:country-region>acreage and crop supplies. If a shortage of cropland "causes our competitors to expand their production, that's not in our long-term best interest," he said.
Lucas said many farm programs could face cuts in the next farm bill, including the $5 billion in fixed, annual payments that go to <st1:country-region w:st="on">U.S.</st1:country-region> grain and cotton growers.
"Let's face it. Even direct payments along with everything else is going to be on the table," he said.
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Farm programs faced budget problems even before Republicans won control of the House in the November election with pledges to address the federal deficit. Dozens of farm programs, including an agricultural disaster plan, have no funding after 2012 and could die unless lawmakers pare other parts of the farm bill.
The Iowa Farm Bureau Federation has proposed shifting money from direct payments into a program that would protect farmers against revenue losses. Critics say the direct payments have inflated land values and are difficult to defend politically because growers and landowners receive the subsidies even when farm income is soaring, as it has in recent years. <st1:State w:st="on"><ST1Iowa</st1:State> receives about $500 million in direct payments annually, about 10 percent of the national total.
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Lucas is reluctant to shift money away from direct payments into programs that might be more difficult to defend under international trade rules. The direct payments are considered to have less effect on production and prices than other types of subsidies.
He said direct payments aren't the only type of government assistance that figures into land values.
Lucas said the committee won't start work on the new bill until 2012, in part because he thinks the budget situation will be better then.
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In the meantime, the committee will conduct oversight hearings next year on several Obama administration initiatives that have drawn concern from agribusiness interests, he said. Those issues include possible new regulations on rural dust and proposed livestock marketing regulations.
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Rep. Frank Lucas, R-Okla., who will take over the committee next month, said the next farm bill, due in 2012, could include a provision allowing the Agriculture Department to reduce the size of the Conservation Reserve Program in case of crop shortages.
<O</O
That would give the USDA the "flexibility to allow at least enough acres to come out to maintain some kind of equilibrium" between the competing uses of corn for livestock feed, food and biofuels, he said in an interview with The Des Moines Register.
About 30.7 million acres of environmentally sensitive former cropland is currently idled in the conservation program, including 1.7 million acres in <ST1<st1:State w:st="on">Iowa</st1:State></ST1lace. The acreage is planted to grass or trees, and landowners receive an annual payment that averages $55 an acre nationwide and $127 an acre.
<O</O
Converting some of that acreage to food production would be better than "encouraging our competitors around the world to plow up more rain forest" or grasslands to grow crops, Lucas said.
Land could be added back to the program when the acreage isn't needed, he said.
The proposal reflects concerns in the food and livestock industries that the increased use of corn for ethanol is driving up the cost of producing meat, milk and other products.
<O</O
Environmental groups and hunting interests have fought efforts to shrink the conservation program in the past because the acreage provides wildlife habitat and prevents soil from eroding. That protects streams, ponds and lakes from runoff of farm chemicals.
"We are concerned that we don't sacrifice CRP to ethanol," said Don Carr, a spokesman for the Environmental Working Group, a research and advocacy organization.
"This is pretty clear evidence, if any one needed it, that corn ethanol has an impact on land use and the cost of food," he said of Lucas' idea.
<O</O
Lucas is considering hearings on the adequacy of <st1:country-region w:st="on">U.S. </st1:country-region>acreage and crop supplies. If a shortage of cropland "causes our competitors to expand their production, that's not in our long-term best interest," he said.
Lucas said many farm programs could face cuts in the next farm bill, including the $5 billion in fixed, annual payments that go to <st1:country-region w:st="on">U.S.</st1:country-region> grain and cotton growers.
"Let's face it. Even direct payments along with everything else is going to be on the table," he said.
<O</O
Farm programs faced budget problems even before Republicans won control of the House in the November election with pledges to address the federal deficit. Dozens of farm programs, including an agricultural disaster plan, have no funding after 2012 and could die unless lawmakers pare other parts of the farm bill.
The Iowa Farm Bureau Federation has proposed shifting money from direct payments into a program that would protect farmers against revenue losses. Critics say the direct payments have inflated land values and are difficult to defend politically because growers and landowners receive the subsidies even when farm income is soaring, as it has in recent years. <st1:State w:st="on"><ST1Iowa</st1:State> receives about $500 million in direct payments annually, about 10 percent of the national total.
<O
Lucas is reluctant to shift money away from direct payments into programs that might be more difficult to defend under international trade rules. The direct payments are considered to have less effect on production and prices than other types of subsidies.
He said direct payments aren't the only type of government assistance that figures into land values.
Lucas said the committee won't start work on the new bill until 2012, in part because he thinks the budget situation will be better then.
<O</O
In the meantime, the committee will conduct oversight hearings next year on several Obama administration initiatives that have drawn concern from agribusiness interests, he said. Those issues include possible new regulations on rural dust and proposed livestock marketing regulations.
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