farmgate: The Senate Ag Committee Debates The Farm Bill: Part 1
The US House of Representatives approved its version of the 2007 Farm Bill in July, and chapter 2 begins Wednesday when the US Senate Agriculture Committee debates the proposal of Chairman Tom Harkin of Iowa. After the Committee and the Senate vote, a conference committee will reconcile the differences. But in preparation for the long-awaited Senate Ag Committee debate, let’s explore what is on the table in a 3 part series. The first segment examines Sen. Harkin’s proposals for farm programs and conservation.
A summary of the Harkin proposal is found on the website for the Senate Agriculture Committee.
The proposal for the farm safety net indicates it will be extended through the 2012 crop year, which confirms the legislation is a 5 year plan, although other time frames had been mentioned. The summary says the proposal:
1. Retains current base acres and creates base acres for newly-eligible crops
2. Rebalances target prices for crops
3. Maintains direct payments
However, it does not provide details on the level of target prices nor the amount of direct payments. The latter had been an unfunded issue late last week. It also maintains planting restrictions for fruit and vegetables, apparently on program crop acreage but that is not specified.
Loan rates will also be rebalanced, but levels are not specified, and it makes an administrative change in the loan deficiency payment to set the rate when beneficial interest is lost.
The proposal also establishes an average crop revenue option, which includes fixed payment rates, recourse loans and a state level revenue program. This would be similar to the National Corn Growers Association plan, which was included in the House, along with the Durbin-Brown plan. The Harkin proposal indicates planting flexibility provisions are under discussion and crop insurance premiums would be re-calculated based on new ratings.
Responding to calls for more support for specialty crop producers, the Harkin proposal establishes $365 million in grants for specialty crops, and a variety of other funding for specific crops, nursery crop protection, and organic crops.
Payment limitation would be reformed to ensure payments go only to payment beneficiaries, but details are not specified, and the three entity rule would be eliminated as it was in the House. Details on cash levels are not revealed.
Other issues in the Harkin plan include a sugar program, extension of the MILC program with increased payments, and a peanut program.
The Crop Insurance program would see the loss ratio reset at 1.0 which means premiums paid by farmers would equal indemnity checks paid to farmers. There would also be many administrative changes including:
1) Farmers who are also agents could not sell to their family operation and get a commission.
2) Organic crops would be rated the same as non-organic crops
3) The fee for CAT insurance would rise from $100 to $200 per crop per county
4) Allows producers with livestock production contracts to obtain crop insurance.
5) Creates crop insurance for crops dedicated to energy production.
The Conservation elements of the Harkin plan call for considerable expansion of those programs as expected, since he was quite critical of the level of conservation program support in the House version of the Farm Bill. Among the programs:
1) Expands the Comprehensive Stewardship Program (CSP) to annually add 13.2 million acres with the help of an additional $1.28 billion above the current 10 year baseline funding, which adds 80 million acres to conservation programs.
2) Better coordination of CSP and EQIP programs.
3) Continue the EQIP at current levels.
4) Maintain the Conservation Reserve (CRP) at 39.2 million acres.
5) Reauthorizes the WRP and enrolls 250,000 acres annually through 2012.
6) Earmarks 10% of conservation funds for beginning or disadvantaged farmers.
7) Calls for a new program to reduce greenhouse gases
Summary:
The Harkin proposal for the 2007 Farm Bill will be debated in his committee beginning Wednesday, but some details have not yet been revealed, such as levels of target and loan rates and direct payments. His proposal does provide for creative programs, such as those proposed by the National Corn Growers Association and Senators Durbin and Brown. Payment limitation will be apparently restricted, but levels were not revealed. Conservation funding will get a large boost with 80 million more acres in the CSP program, an enlarged wetlands program, and maintenance of the CRP program. Other details of the Harkin proposal for the Senate’s version of the Farm Bill will be explored Tuesday and Wednesday.
Posted by Stu Ellis on October 22, 2007 12:43 AM to farmgate