so-called “reverse deficiency payment” that would be based on a reverse equation that’s used to establish the deficiency payments. In a sense, pay these bushels at market gain because when you end up with a short crop naturally prices go higher and you’ve got nothing to benefit from it. All current disaster programs have done is to cover all your entire production when in fact all you need to do is cover the uninsured portion.
The third item here would be to mandate and fully fund an RMA, an FSA initiative to implement data sharing to administer the above-mentioned activity. I’m talking about one-stop-shop to report acreages and yields. The present course of special interest groups is to stall the progress of data sharing. FSA does an excellent job of collecting data and managing GIS information. However, RMA is not able to use the data in its current format. Many producers have long stated they have several types of yields, the yield that reports to FSA for price support and LDP, the yield that they tell the bank, and the yield they report to RMA.
I believe the only way to achieve complete program integrity is to mandate a single report with a uniform deadline.
MODERATOR: You are going to have to wrap up.
MR. GREG STUDEMAN: One quick thing here. The other thing would be to eliminate the two market system used to determine the posted county prices. Many counties are forced to use a market that’s inconceivable to be used that establishes local cash prices. An example is just simply using a west coast market for counties that are located on the Mississippi River.
MODERATOR: All right. Thank you very much.
MR. GREG STUDEMAN: Thanks.
MODERATOR: You got a three-minute deal out of that. Okay. Right over here.
MR. STEVE NELSON: (sp) I’ll keep mine to a minute and a half. Good afternoon. My name is Steve Nelson, I’m the administrator at Saint Luke’s Lutheran Care Center in Blue Earth, MN. I am pleased to be here today to support the rural development authority’s inclusion in the U.S. Department of Ag’s Farm Bill. For the past two years we have been working closely with the Rural Development Authority Office in Austin on two different direct loans. We are unable to secure conventional financing for our projects and we then turned to the Rural Development Authority. We have secured a $3 million low-interest loan for life safety improvements in our nursing home. We are currently working on another $3 million low-interest, direct loan to build an assisted living building.
As a rural health care facility, we are closely linked to the family farm residents in our county because many of them either work at our place or come to live here when they need our services. We are a vital part in our community. We provide over 230 jobs. Our annual payroll is over $4 million a year. We spend over $500,000 locally. We have 137 skilled nursing beds. We have 14 assisted living beds, 12 adult daycare clients, 48 apartments both market rate and HUD subsidized and we have 40 plus children in the attached daycare on campus. We will continue to be a vital part of our community with the help of affordable financing programs offered by the USDA’s Rural Development