Washington, DC – Congressman Randy Neugebauer announced that the House Subcommittee on General Farm Commodities and Risk Management approved several 2007 Farm Bill provisions that continue farm program policy from the 2002 Farm Bill.  The Subcommittee also voted to include Neugebauer’s proposal to provide a better crop insurance tool for producers in the bill.  These provisions, which passed on Tuesday, will now be considered in the full Agriculture Committee.

   “This crop insurance proposal takes disaster assistance out of the unpredictable political process and provides producers with a dependable risk management tool that will help them rebound from the effects of natural disasters such as drought,” said Neugebauer.  “I will work to ensure that this needed crop insurance reform continues to be a part of the 2007 Farm Bill.”

   Under current law, farmers can buy either an individual yield or revenue policy that provides coverage based on their Actual Production History (APH) and actual yield.  Another option currently available to farmers is to purchase a Group Risk Plan (GRP) policy based on expected county yields and actual county yields.  Neugebauer’s proposal would combine these two existing risk management tools and allow farmers to buy a portion of a GRP policy in addition to their base APH yield or revenue policy.  This combination functions as a disaster policy, giving farmers more protection when there is a county loss which is likely to occur during a drought, flood, or large storm situation.  

   Neugebauer was also pleased that his efforts to keep in place many of the successful and cost-effective policies of the current Farm Bill paid off.

   “The Chairman’s original draft was moving away from the successful policies of the 2002 Farm Bill,” said Neugebauer. “Because the current Farm Bill has worked so well for producers while coming in billions of dollars under budget, I want to thank Chairman Etheridge and my colleagues on the Subcommittee for their cooperation in working to keeping these good policies in place and forwarding them to the full Committee.”

   Following the July 4th holiday, the full Agriculture Committee will begin debate on all the parts of the 2007 Farm Bill that were approved by each of the subcommittees.