Grainnet

Grain Journal Q & A Podcast With NGFA President Kendell Keith on the CRP Program

Kendell Keith is president of the National Grain and Feed Association (NGFA), an association of 935 grain, feed, processing, exporting, and other grain-related companies that operate about 6,000 facilities handling more than 70% of U.S. grains and oilseeds.

The NGFA has long advocated reform of the U.S. Conservation Reserve Program (CRP) to restore to production acreage that can be farmed in an environmentally sound manner.

Most recently, the NGFA joined with more than 130 organizations and companies to urge Agriculture Secretary Edward Schafer to immediately allow penalty-free early releases from the CRP for the least environmentally-sensitive land to meet growing demand for grain for food, feed, exports, and biofuels production.

Following are excerpts from Grainnet's July 2 podcast interview with Keith.

What has changed for the CRP with the newly-enacted Farm Bill?

Under the new bill, the CRP now is capped at 32 million acres, which is down from 39 million.

Most of the reason for that was for budget savings, but there was also an understanding in Congress about the need to not lock up too many acres at a time of growing demand.

What are the chances of Congress enacting legislation to allow more flexibility for producers participating in the CRP?

There is not likely to be any legislation, unless the administration refuses to provide flexbility.

We have been working to build demand for U.S. grains in the areas of feed, exports, and the Renewable Fuels Standard.

That has been a remarkable success story, but we have to be able to feed that demand, or we're going to lose that demand.

How necessary is it for U.S. agriculture to reform the CRP?

It's absolutely necessary.

We've pulled grain and oilseed stocks down for six out of the last seven years.

This can't go on.

Over the longer term, we may be able pick up supplies through yield growth, but that won't cover the next two to three years.

That's where the biggest challenge is, meeting the short-term demand.