Conservation Reserve Program
Since 1986 the Conservation Reserve Program (CRP) has idled as much as 36.9 million acres, concentrated in traditional wheat and oat growing regions. Much of the CRP land could be farmed without sacrificing environmental goals. CRP is partly responsible for the decline in wheat and oat acreage. Also responsible are US farm programs from the 2002 Farm Bill. The programs are causing massive distortions in producer planting decisions. Current farm programs essentially pick which crops will be winners and losers.
Ironically, demand for whole grain products is rising while wheat and oat production is declining. Conditions for the wheat and oat industry, from grower through end consumer, can improve by reforming both the farm program and CRP and by investing in research.
Market-neutral farm programs and equalized loan rates in the 2007 Farm Bill will improve conditions for the wheat and oat industry. With crop prices at historically high levels, now is the time to reform the U.S. farm program to reduce government-caused distortions of production decisions.
A major share of the CRP could be farmed in environmentally sustainable ways, especially with modern low or no till practices. However, environmentally sensitive land should stay in a conservation program. Landowners with acres enrolled in the CRP should be able to opt out of the program without penalty to pursue whatever the current market conditions may reflect. New CRP enrollments should be limited to targeted situations with the highest environmental value.
June 19, 2008
Read:
Back to Top