Associate Professor/Crop Markets Specialist The Farm Bill Process USDA Ukraine Program Ames, Iowa May 5, 2015 Chad Hart Associate Professor/Crop Markets Specialist chart@iastate.edu 515-294-9911 1 1

What is a Farm Bill? The farm bill is the primary agricultural and food policy legislation set by the U.S. federal government. It governs commodity programs, trade, food and nutrition programs, rural development, farm credit, conservation, agricultural research, and other programs related to agriculture. Some programs within the farm bill are permanent legislation, whereas other programs have expiration dates.

Farm Bill History Congress passed the 1st farm bill in 1933, the Agriculture Adjustment Act. The 1938 farm bill established a base set of agricultural policies as permanent and set a timeline for updates every 5-7 years. There have been numerous updates to agricultural policy since then, with the latest in 2014.

Farm Bill Targeting Early farm bills were influenced by the Great Depression and the Dust Bowl. Policy targets were to ensure an adequate food supply for the U.S. and to assist farmers in low price scenarios. Since then, farm bills have been used to: control supplies, manage trade, provide farm income support, increase environmental awareness

Farm Bill Process While each farm bill is different, in general, the process is: The executive branch (President, U.S. Department of Agriculture) proposes agricultural policies. The legislative branch (Congress) can adopt, modify, and/or ignore these proposals as they craft the next farm bill.

Farm Bill Process Within Congress, separate policy proposals can arise from the House of Representatives and the Senate. Both the House and the Senate have Agriculture Committees that start the legislative process for the farm bill. Proposed bills move from the Committees to the full House and/or Senate.

Farm Bill Process Once the House and Senate have voted on their farm bill proposals, a conference committee is formed to blend the proposals together. The conference committee’s version is then voted on by the full House and Senate. Once both the House and Senate pass the same farm bill, it is sent to the President to either sign into law or veto (and possibly restart the process).

Farm Bill Titles Commodities IX. Energy Conservation X. Hort. & Organic Ag. Trade XI. Crop Insurance Nutrition XII. Miscellaneous Credit Rural Development Research Forestry

Programs by Title Commodity Income and price support programs for producers Conservation Environmental/conservation programs Trade Trade promotion programs Nutrition Income and price support programs for consumers

Programs by Title Credit Farm loan/Ag credit programs Rural Development Rural infrastructure programs Research Research funding for USDA and higher education Forestry Forestry management programs

Programs by Title Energy Biofuel programs Horticulture and Organic Agriculture Farmers markets Crop Insurance Modifications to crop insurance Miscellaneous Livestock disaster programs and price reporting

Farm Bill Projected Spending 2014-2018 $489 Billion

Expected Spending Source: CBO

Changes in Expected Spending Source: CBO

Thank you for your time. Any questions. My web site: http://www. econ Thank you for your time! Any questions? My web site: http://www.econ.iastate.edu/~chart/ Iowa Farm Outlook: http://www.econ.iastate.edu/ifo/ Ag Decision Maker: http://www.extension.iastate.edu/agdm/