1. The Key Changes of Interest to Farmers and Ranchers

2. 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 (1862’s; 1890’s; 1994’s, HSI’s). Food Safety. Animal and Plant Health and Safety.

3. 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.

4. Typically Reauthorized every 5 years. Current farm bill expires September 30 (some exceptions). New vs. Extension vs. Permanent Law. Agriculture’s defense weakened by robust farm economy – reformers sense opportunity. Farm program reforms contribute most of Senate bill’s 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?

5. 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.

6. 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.

7. 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.

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