Alan Simpson: “Mr. Chairman, I can assure the gentleman from Michigan that the average size farm in Idaho is larger than 500 acres…”

“Mr. Chairman, I can assure the gentleman from Michigan that the average size farm in Idaho is larger than 500 acres, substantially larger than 500 acres. The Smith amendment seeks to include marketing certificates under established payment limits on the farm program benefits, but would effectively limit the use of marketing certificates and inhibit the following benefits: Marketing certificates enhance competitiveness of U.S. commodities. Marketing certificates enable the marketing loan program to work effectively when commodity prices are low, thereby making U.S. commodities available at market clearing prices. This enhances demand and market share and maintains the entire agricultural infrastructure. Marketing certificates prevent stock overhang. Without certificates there will be a larger stock overhang going into next year, weakening next year's prices, making it more difficult for farmers to secure operating loans. Large farmers will hold stocks depressing prices for small and medium farmers. Marketing certificates prevent loan forfeitures. Without marketing certificates, producers would place their crops into the commodity credit corporation loan and would likely forfeit the commodity, tying up storage and leaving the government to market commodities almost certainly at a substantial loss and at competition with the private sector during the following year's harvest.”