“USDA missed another opportunity to relieve American families from spiraling food costs,” said ABA President and CEO Robb MacKie. “ABA is extremely disappointed by Secretary Schafer’s decision to not release even a modest amount of land from the Conservation Reserve Program (CRP). Once again, government inertia prevails at the expense of American families.”
On Tuesday, July 29, Agriculture Secretary Ed Schafer announced that USDA will not allow penalty-free release of CRP acreage at this time. ABA believes non-environmentally sensitive CRP acreage should be released and allowed penalty-free into production; releasing this land will allow farmers more flexibility to meet growing food demands.
Input costs for bakers have jumped significantly since the American Bakers Association made its initial request to the United States Department of Agriculture (USDA) in June 2007 to release productive lands in the CRP. While off the all-time high prices reached in February 2008, baking input costs have still outpaced the rise in gasoline and diesel prices. Specifically, from June 2007 to June 2008:
• Wheat is 66 percent higher
• Flour is 58 percent higher
• Sweeteners are 64 percent higher
• Oils are 57 percent higher
• Eggs are 23 percent higher
• Bread & Rolls are 15 percent higher
• Gasoline is 32 percent higher
“While there are many contributing factors that are out of the control of government, the amount of productive acres is fully within the control of USDA,” said Mr. MacKie. “It is outrageous for USDA to continue to ignore the plight of consumers, bakers and even farmers by refusing to take action to help alleviate the food price crisis. How expensive does bread have to get for action be taken - $5 or $6 a loaf?”
“This is another failure by Washington to address a significant challenge to our country,” added Mr. MacKie. “Congress and the Administration are racing for the exits to begin the five week August break without taking action on this pressing issue. By the time they return in September it will be too late for farmers to plant wheat.”
“We are months past due when action should have been taken to avoid the current food price crisis,” said Mr. MacKie. “We encourage consumers to contact USDA and Congress to demand that immediate action be taken to bring down record-high food prices.”
