The Key Changes of Interest to Farmers and Ranchers

Authorizes virtually every USDA program. Farmers, ranchers farm programs (16%; $24.8 billion), conservation/forestry

(6%; $9.3 b), trade, research, crop insurance (included in farm program costs); Nutrition programs SNAP, WIC, School Lunch, senior programs, nutrition standards over 70 ($111.6 b) percent of USDA budget. Conservation and Forestry programs, both voluntary and regulatory. Rural Development has broadest mission authorities build a town from the ground up. Research, Education, Extension Land Grant University System (1862s; 1890s; 1994s, HSIs). Food Safety. Animal and Plant Health and Safety.

 Today, 97 percent of all U.S. farms are family owned.

Ag Census data counts over 2 million farmers but

roughly 200,000 farmers raise nearly 80 percent of food, feed and fiber. Farming is capital intensive business bankers want certainty; farmers need strong risk management tools. Conserving natural resources and caring for livestock essential to sustained economic return. Farm Bureau is a general farm organization we represent farms of all sizes, all crops and all methods of production.

 Typically Reauthorized every 5 years. Current farm bill expires September 30 (some exceptions). New vs. Extension vs. Permanent Law. Agricultures defense weakened by robust farm economy

reformers sense opportunity. Farm program reforms contribute most of Senate bills savings -- $15 billion of the $23.6 billion over 10 years. House poised to markup July 11 savings expected to top Senate with larger cuts to conservation and nutrition. Farm and commodity groups still differ on Title I approach. Is there time?

 Farm Program Changes:

Eliminates Direct payments, ACRE & SURE; Replaced with ARC, STAX & SCO; Program based on actual production plant for market; SCO option could strengthen risk management for specialty crops; Dairy programs eliminated; replaced with insurance approach; Means testing expanded; limits lowered; House likely to take different approach on row crops.

Senate bill consistent with Farm Bureau core principles not our

preferred approach, but moves process forward. Bipartisan vote appreciated amendment votes highlighted interesting political alignments. Expect similar bipartisan approach in House Committee.

 Conservation Programs consolidated:

Voluntary working lands programs streamlined; Conservation compliance re-linked to crop insurance; Not new to program commodities (corn, cotton, feed grains, soy and other oilseeds, wheat, barley, oats, pulse crops) ; Specialty crop growers in for new experience.

Nutrition reforms aimed at waste, fraud and abuse.

Savings scored at $4 billion; Some eligibility criteria tightened to prevent double

accounting of household expenses; Tough debate expected in House due to much higher savings targets.

 Committee Markup July 11. May see draft bill late next week. House Ag Appropriations on hold. Floor time a precious commodity. Maybe during lame duck? And, again, we need a farm bill completed to provide

certainty.

Dale W. Moore Deputy Executive Director Public Policy Division American Farm Bureau Federation dalem@fb.org 202-406-3668