May 24, 2013

Senate passes Farm Bill in 64-35 vote

The Senate has passed, in a 64-35 vote, a new five-year farm bill to overhaul the way the government subsidizes agricultural production in the U.S. The bill contains about $23.6 billion dollars in spending cuts over a 10 year period on crop subsidies and other government programs. The bill cuts farm subsidies and land conservation spending by about $2 billion a year.Source: CornCommentary.com

If signed into law, the Senate version of the bill would expand government crop insurance, but take down a 20-year-old direct-payment subsidy program that pays roughly $5 billion a year to farmland owners even if they aren’t planting crops. Crop subsidies are projected to be cut by about $19.5 billion over 10 years under the legislation, but government payments to help farmers pay for insurance premiums and subsidize crop-insurance companies would increase by about $3.2 billion, according to the Congressional Budget Office.

The Senate’s version of the Farm Bill also makes about $4.5 billion dollars in food-stamp cuts. The bill contains about $80 billion of spending per year for food stamps and other nutrition programs. Senator Debbie Stabenow has made it clear that most of the proposed cut of $4.5 billion comes from eliminating a loophole in which households that receive state assistance to cover heating bills become eligible to receive additional food-stamp aid.

The Senate’s action paves the way for the House of Representatives to take up the House Agriculture Committee’s own version of the legislation.

 

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Senate processing 250+ amendments to farm bill

The Senate 2012 Farm Bill draft is still being negotiated, as leaders hope to gain approval to move forward with the bill very soon. More than 250 amendments have been filed for the bill to date, and Chairwoman Debbie Stabenow and Ag Committee Ranking Member Pat Roberts feel the pressure to find a way to process the amendments in a timely fashion.

Senate Majority Leader Harry Reid allowed Senators this week to begin debate on several controversial amendments, including on the sugar program, SNAP funding and conservation programs.

Meanwhile, agriculture, conservation and environmental groups have been keeping a close eye on the bill and its amendments, weighing in with their thoughts on each.

An amendment from Sen. Jim DeMint would convert all mandatory agricultural spending to discretionary spending subject to annual appropriations, which would have broad effects on crop insurance, conservation and food stamp programs.

An amendment from Sens. Tom Coburn and Dick Durbin threatens to weaken the crop insurance program by instituting the first-ever means test for participation through an adjusted gross income (AGI) limit.

A separate amendment, from Sens. Jeanne Shaheen and Patrick Toomey would limit crop insurance subsidy premiums to $40,000 per producer, which would dramatically reduce the number of row crop acres covered under the crop insurance program.

Some ag groups wrote Senators Thursday opposing any amendment that will limit producers’ participation in crop insurance, including efforts to impose means testing and limit premium support, as well as those that threaten efficient and effective private sector delivery.Source: CornCommentary.com

The groups said the proposed changes would threaten the program’s actuarial soundness and could render it ineffective as the primary safety net for most crop producers.

A separate amendment has been filed by Coburn to dramatically reduce funding and restrict activities under the Market Access Program (MAP), which is a farmer-government cost share program used by the wheat industry and other commodity groups to promote their products overseas.

A group of ag organizations also wrote Senators on Thursday to urge their opposition to any such amendment, noting that MAP supports U.S. ag exports, one of few areas of the economy that has shown growth in recent years. Studies show the program has repeatedly delivered strong returns on investment of up to 35 to 1.

The National Association of Wheat Growers is actively supporting an amendment, from Sens. Kay Hagan and Mike Crapo, to add the provisions of H.R. 872 to the Senate farm bill legislation. That amendment would clarify pesticide permitting requirements under the Clean Water Act, which were muddied by a 2009 Supreme Court ruling.

Two additional amendments that would directly and significantly affect the safety net portions of the Senate’s farm bill were filed late Thursday.

The first, from Sen. Kent Conrad, would continue the countercyclical program with updated pricing and payment structures, with offsets from modifying the T-yield used in crop insurance calculations as outlined in the farm bill draft passed by the Senate Agriculture Committee.

A second, from Conrad and Sen. Max Baucus, would limit the speed at which the price portion of the revenue calculation in the Senate bill’s Ag Risk Coverage (ARC) program could decline.

Source: NAWG

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