Wednesday is when the US Senate Agriculture Committee will be debating the proposal for the 2007 Farm Bill offered by Chairman Tom Harkin. The farm gate yesterday examined his proposals for commodity programs, crop insurance, and conservation. Today the spotlight turns to Livestock, Energy, and Trade, then this three part series concludes Wednesday.

A summary of the Harkin proposal is available on the website of the Senate Agriculture Committee.

Concerned about competition among the relatively small number of packers, Senator Harkin wants to create a Special Counsel at USDA to enforce the Packers and Stockyards and Agricultural Fair Practices Acts as well as conduct investigations and prosecutions. Additionally, the application of the Fair Practices Act would be extended to members of marketing associations and cooperatives. Under the Packers and Stockyards Act, producers would not have to submit to mandatory arbitration on livestock contracts, but arbitration would be voluntary. On the issue of contracts, if a producer had made a capital expenditure of $100,000 or more to secure the contract, any termination could not be made in less than 90 days.

Under the provisions of the Livestock Mandatory Reporting Act, Senator Harkin wants USDA to conduct a study of wholesale pork reporting.

Senator Harkin proposes restrictions against the use of certain information obtained under the National Animal ID program and restricts the Secretary of Agriculture in the handling and use of the information.

Other proposals:
1) benefit sheep and goat production and research,
2) express concern about the impact of feral swine on domestic pork production
3) authorize a voluntary program for trichinae testing
4) and includes live poultry production under the Packers and Stockyards Act

On the issue of energy, the Harkin proposal strongly supports the production of energy from commodities. Many of the initiatives are federal appropriations for research and program expansion. Among them are:
1) $197 mil. to spur biomass crop production through incentive payments to farmers
2) $422 mil. for grants and loans for bio-refineries and to power them with renewable fuel.
3) $245 mil. to help bio-refineries purchase feedstocks for advance biofuel production.
4) $270 mil. in grants and loans for plants converting animal waste into energy
5) $75 mil. in research for bio-mass research and development.
6) $45 mil for 10 universities to create comparative bio-energy experiments.
7) Funds or policy support for biodiesel education, energy evaluation programs for farmers, and renewable production of nitrogen.

The trade provisions of the Harkin proposal focus on program renewal and creation to enhance agricultural trade. They include:
1) An additional $116 mil. in matching funds for groups promoting commodities or specialty crops over the 5 year term of the Farm Bill.
2) Cleaning up or reforming export promotion programs that are in conflict with the World Trade Organization, and saving $23 mil. over 5 years.
3) Reform of the Food Aid program to address changes recommended by the General Accounting Office.
4) Establishment of a minimum of $600 mil. for the Food for Peace program and an additional $25 mil. for the potential purchase of local foods to be distributed in emergencies.
5) A $78 mil. appropriation to help pay for transportation of commodities being donated in the Food for Progress program.

Summary:
The Harkin proposal for the Farm Bill strengthens the authority of USDA over livestock packers and provides various protections for individual producers. On energy issues, the Harkin plan calls for many grant programs to enhance the production of bio-fuels in rural communities, helping both farmers and bio-refineries. On trade, the Harkin proposal seeks to bring USDA programs into compliance with WTO regulations, but keep many of the appropriations that will fund food donation programs abroad.