DES MOINES (DTN) -- Congress should eliminate direct payments, and the Average Crop Revenue Election program should be based on county, rather than state, yields and revenue, Iowa Farm Bureau delegates stated Friday.

The group's two-day policy meeting ended with members backing a resolution that the farm bill should "provide a dependable, fiscally responsible safety net for farmers." But the group took the major step of proposing the elimination of the $5.2 billion direct payment program. "Direct payments should be replaced by using this money for an improved revenue insurance program and risk management and fair trade," the resolution stated.

Further, the group's policy stated that the risk management program needs to be better coordinated to avoid gaps and reduce redundancy. In particular, the group stated that the ACRE program would work better if it were based on county yields and revenue triggers rather than the current state yield and revenue triggers.

Voting delegates from 89 Iowa counties also repeatedly rejected resolution language to end farm programs, saying that they need wording to take to the American Farm Bureau Federation meeting next January that reflected the views of Iowa's general membership.

Tony Allen of Diagonal, Iowa, proposed the failed resolutions to eliminate commodity payments altogether and privatize crop insurance. Allen also wanted to move food-aid programs out of the farm bill. He said farmers need to make a statement on a shift in federal spending.

"The point that we're going to have a farm bill is that we're standing there with our hand out to get our senators to vote for it," Allen said. "If we go up and say we don't want a farm bill anymore, and take the money and put the food-stamp program where it should be. The food-stamp program and aid to dependent children doesn't belong in the farm bill. That's what we get counted on is how much is in the farm bill, but it doesn't go to the farm bill."

About 75 percent of USDA's budget goes to various food-aid programs. Urban lawmakers often are swayed to back the farm bill because of boosts in spending for such programs. Some Iowa Farm Bureau members highlighted thepoint that there is a tie between food-aid and farm programs. Further, some suggested, those food programs carry the farm programs.

"Without the food stamps and welfare program, we will not have a secretary of agriculture in the cabinet," said Carol Messer of Yarmouth, Iowa.

But Allen wasn't alone in seeking to eliminate farm subsidies. Clark BreDahl of Greenfield, Iowa, pointed out that New Zealand took the step of eliminating farm payments and has become one of the world's strongest exporters in some livestock sectors.

"Their farm economy has not only survived, but thrived since eliminating subsidies," BreDahl said. He added that it's time for farmers to "put our money where our mouths are."

Others said Iowa Farm Bureau is already taking an aggressive step calling for the elimination of $5.2 billion in direct payments. But a safety net is needed to cope with factors outside of farmers' control, such as a collapse in exports that drives down prices.

"We at least need a floor under our commodities at some point," said Dave Denne of Griswold, Iowa.

Crop insurance also is a public-private partnership with USDA paying half the farmer premium and overhead costs for companies. Dave Miller, director of research and commodity services for the Iowa Farm Bureau, said eliminating the USDA subsidies would likely raise farmer premiums to more than twice their current cost.

Eliminating all language backing a farm bill also opens up conservation concerns. In a survey, only about 18 percent of Iowa Farm Bureau members said they would put in place the best conservation practices without USDA support. David Jones of Hedrick, Iowa, said taking the language out suggests IAFB doesn't support conservation, which then opens the group up to criticism from environmentalists.

"We take this out, we're kind of setting up the precedent that we're not in favor of conservation, and I don't think we want to do that," Jones said.

The Iowans also recognized that they face battles in regional differences over the farm bill with Southern farmers who grow cotton and rice that will surely arise at the AFBF annual meeting. So the group added language that they want programs that improve the safety net for all farmers.

COOPERATIVES

Delegates rejected language from Thursday suggesting an end to antitrust exemptions for farmer-owned cooperatives, but there clearly was a sentiment that cooperatives are becoming too large and competing directly in some cases against the farmers or livestock producers the cooperatives are supposed to represent.

Language adopted reaffirmed IAFB's support for the Capper-Volstead Act, a law that exempts farm cooperatives from some federal anti-trust laws.

"I do think the intent of this group yesterday was to send a message that we're a little disappointed with our co-ops," said Jeff Berkland of Cylinder, Iowa. "They need to understand their farmer-owners are not happy with them."

ETHANOL

Though Iowa is the nation's largest producer of ethanol, the state doesn't have a mandate to blend the fuel in all vehicles such as neighboring Minnesota does. Right now, E-10 is in about 70 percent of gasoline sold in Iowa.

Delegates adopted a resolution supporting "requiring all gasoline sold in Iowa to be blended at the maximum rate allowed," implying the Environmental Protection Agency could potentially raise the blend level to E-15 for standard vehicles.

YOUNG FARMERS

Wording was added that USDA's beginning and young farmer programs should focus on increasing income rather than purchasing assets.

Brandon Vorthmann of Treynor, Iowa, said the programs are geared too much toward trying to buy land or assets, yet young farmers are geared toward renting land rather than trying to buy it. Vorthmann noted that because of the strong agricultural economy, more young people such as himself are trying to get into farming than over the past decade or two.

"A lot of the program is tied to buying assets, specifically buying land," Vorthmann said. "With young farmers, it's more about renting land or renting cows, ways to produce more income rather than buying assets."

Chris Clayton can be reached at chris.clayton@telventdtn.com

(AG/KM)

© Copyright 2010 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.