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May 6, 2008
The New Farm Bill: What Do We Really Know About It?
The new Farm Bill has not exactly been written in a vacuum, but very little has escaped the Congressional Committee room doors. Even Monday, when the leadership said the document is complete for all practical purposes, they only offered crumbs from the huge cake that has been in the mixing, baking, and decorating process for the last three years. With little else to go on, we’ll look at the crumbs, which do indicate the flavor of the cake.
Senator Tom Harkin, Chair of the Senate Agriculture Committee, said he hopes the proposed legislation will pass muster at the White House and be signed into law. His Committee statement Monday provided few details about the Farm Bill.
Commodities: Some of the features of the 2002 Farm Bill, such as direct payments have been retained, but funding levels were cut. Two years into the plan, producers will be given the option to sign up for a new type of safety net, entitled the Average Crop Revenue program. Senator Harkin indicated it was similar to the Durbin-Brown plan which offered revenue support calculated from state yields and prices.
Conservation: The interest in conservation of Senator Harkin can be seen in the substantial expansion of Farm Bill conservation programs. His new Conservation Stewardship Program is funded with $12 billion over 10 years to enroll 115 million acres into the program. It is a working land program, compared to the Conservation Reserve Program which retires land.
Energy: The primary focus is on biofuels production, and is designed to promote cellulosic ethanol from agricultural biomass. Loan and grant programs would assist new refinery construction and new research on renewable fuels.
Livestock: A new element in the Farm Bill, it addresses some elements of contract production and provides more producer protections dealing with arbitration clauses, and location of court filings. It also modifies the Country of Origin Labeling provisions.
Nutrition: This section received the largest funding increase (reportedly $10.4 billion) and creates a variety of programs to assist children and families improve their access to food.
Research: $78 million in funding is set aside to help producers promote organic food products, and $230 million is appropriated for research on specialty crops.
Rural Development: Funding is appropriated for rural water and wastewater programs, for producers to process their own products and increase the value, and loans for beginning entrepreneurs.
Fresh Fruits and Vegetables: More funding is provided for organic foods, funding for promoting local markets, and $400 million for a 10 year program to improve pest and disease detection.
Summary:
While details are absent and full program descriptions are unavailable, the summary of Farm Bill elements released Monday by the Senate Agriculture Committee gives a hint of changes that have occurred from the 2002 Farm Bill. The contentious and private negotiations primarily involved funding more than policy, and spending has been the reason for veto threats from the White House. Although many producers have already finalized 2008 production plans without knowing how any farm program details will impact the marketing of the crop, most producers probably will sail through 2008 without thinking much about the need for a revenue safety net.
Posted by Stu Ellis at May 6, 2008 12:34 AM | Permalink