Post on 16-Dec-2015
Election did not significantly change politics or players
One change in Agriculture Committee leadership – Senator Cochran ranking member instead of Senator Roberts
American Taxpayer Relief Act of 2012 extended farm bill through crop/fiscal year 2013
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March 1 – Sequester kicks inMarch ? – President releases budgetMarch 27 – Continuing Resolution
expiresApril 15 – Congressional budget
deadlineMay 19 – Debt ceiling reachedFarm Bill -- ???
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A result of 2011 Budget Agreement to raise the debt ceiling
Applies to most Federal Programs with some exceptions including Social Security, Medicaid, Medicare and food stamps
Roughly a 7.3% reduction in defense and 5.2% reduction in non-defense spending
Applies to DCP, ACRE, Conservation programs except CRP and existing contracts
Does not impact crop insurance4
The pain of the sequester results in Congress pursuing a global budget agreement to cut spending
Congressional Budget due in April is an opportunity to reach an agreement to cut spending
The possible debt ceiling breach in May acts as an additional incentive to reach an agreement
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Chairwoman Stabenow and Chairman Lucas are saying they will wait on the farm bill until budget picture becomes clearer
Farm bill or significant parts of a farm bill could be part of a deficit reduction package in the context of raising the debt ceiling/ or voiding the sequester
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112th Congress failed to complete farm bill
Election did not significantly change politics or leaders
Farm bill completion as a stand-alone bill unlikely without some clarity on budget cuts, especially regarding food stamps
Supplemental Nutrition Assistance Program (food stamps) cut and dairy policy remain key sticking points.
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If completed in 2013, farm bill policy will likely be very similar to Senate passed and House Agriculture Committee reported bills.
If completed in context of deficit reduction, cut could be larger than Senate passed $23 billion.
Commodity policy will include some version of higher target prices
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Past is prologue Committees do not anticipate holding
many, if any, hearing before going into a mark-up
Neither Committee is likely to want to change much, if anything
With Senator Cochran as new ranking member, Senate Agriculture Committee will be forced to change its commodity title somewhat to better accommodate southern commodities
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$ in billions FY 2013 – 2022 Total
Percent of Total
Total $994.6
Nutrition $771.8 78%Crop Insurance $89.8 9%
Conservation $65.2 7%Commodity
Programs$62.9
6%All Other $4.9 0%
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House Senate
Commodity Title -$23.6 billion -19.4 billion
Conservation -$6.1 billion -$6.4 billion
Nutrition -$16.1 billion -$4 billion
Research $546 million $681million
Energy $0 million $780 million
Specialty Crops $428 million $359 million
Crop Insurance $9.5 billion $5.0 billion
Total -$35.1 billion -$23.1 billion
10 Year Savings, CBO Scoring of Senate Bill and House Chairman’s Mark
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Senate Bill House Bill
Eliminates direct, counter cyclical, ACRE programs
Continues loan programs with change for cotton to make WTO compliant
Continues Sugar Program, Reforms Dairy Program
New Agricultural Risk Coverage (ARC)
Price Loss Coverage (PLC) or Revenue Loss Coverage (RLC)
AGI Test at $750,000 per entity AGI Test at $950,000 per entity
$50,000 payment limit per person per year, plus peanuts
$125,000 limit per person per year, plus peanuts
Changes “Actively Engaged” rules
No change to “Actively Engaged”
Conservation Compliance Applies
Wheat, corn, grain sorghum, barley, oats, long grain rice, medium grain rice, pulse crops, soybeans, other oilseeds, and peanuts.
Note cotton is not a covered commodity
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Reference Price
Unit 2008 Farm Bill
2012 House Committee
Bill
Percent Change
Wheat $/bu 4.17 5.50 31.9%
Rice $/cwt 10.50 14.00 33.3%
Corn $/bu 2.63 3.70 40.7%
Oats $/bu 1.79 2.40 34.1%
Barley $/bu 2.63 4.95 88.2%
Sorghum $/bu 2.63 3.95 50.2%
Cotton $/lb .7125 n/a n/a
Peanuts $/ton 495 535 8.1%
Soybeans $/bu 6.00 8.40 40.0%
Other Oilseeds
$/cwt 12.68 20.1558.9%
Dry Peas $/cwt 8.32 11.00 32.2%
Lentils $/cwt 12.81 19.97 55.9%
Small Chickpeas
$/cwt 10.36 19.0483.8%
Large Chickpeas
$/cwt 12.81 21.5468.1%
The barley reference price for the 2008 Farm Bill used the USDA Feed Barley Price. The 2012 House Committee bill uses the USDA all-barley price.
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Senate Bill House Bill
Creates new Supplemental Coverage Option (SCO)
Creates new Stacked Income Protection for Cotton (STAX)
Creates new Peanut Revenue Insurance Coverage
Nationwide Sod-saver provision Prairie-Pothole Sod-saver provision
Plug 70% 2013 and subsequent Plug 70% anytime
Conservation Compliance Attached
No Conservation Compliance
AGI test, 15% point less subsidy if AGI exceeds 750,000
No AGI test
Separate irrigated – non-irrigated coverage at EU
Separate irrigated – non-irrigated coverage at all unit
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House Senate
SCO $3.998 billion $3.001 billion
Yield Plug at 70% $1.127 billion $.855 billion
STAX $3.851 billion $3.224 billion
Interaction Effect -$.639 billion -$2.469 billion
Coverage Level by Practice
$.672 billion $.506 billion
Specialty Crop A&O $.205 billion $0
Total $9.524 billion $5.036 billion
10 Year Savings, CBO Scoring of Senate Bill and House Chairman’s Mark
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Area (county) coverage wrapped around individual coverage to cover deductible
Pays based on relationship between county yield guarantee and actual county yield
Underlying individual coverage impacts payment
County must have 10% loss If enrolled in ARC, 21% deductible; not
available if enrolled in STAX or RLC16
Cotton onlyAdditional area coverage either as
stand-alone or on top of individual coverage
Up to 30% coverage or amount of deductible of individual policy, whichever is less
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Senate Bill House Bill
Reduce CRP to 25 million acres by 2017 from 32 million current level
Wildlife Habitat program with Environmental Quality Incentives Program
Creates one Easement Program with two legs – Agricultural Land Easements and Wetland Reserve Program Easements
Create new Regional Partnership Program
Limit CSP enrollment to 10.4 million acres annually
Limit CSP enrollment to 9 million acres annually
Fund EQIP at $1.455 B in FY13, $1.645 B in FY14 and $1.65 B in FY15
Fund EQIP at $1.75 billion annually
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Democrats Republicans
Stabenow (MI) Cochran (MS)
Leahy (VT)) Roberts (KS)
Harkin (IA) Chambliss (GA)
Baucus (MT) McConnell (KY)
Brown (OH) Johanns (NE)
Casey (PA) Boozman (AR)
Klobuchar (MN) Grassley (IA)
Bennet (CO) Thune (SD)
Gillibrand (NY) Hoeven (ND)
Donnelly (IN)
Heitkamp (ND)
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Frank Lucas (OK)
Bob Goodlatte (VA) Scott DesJarlais (TN)
Steve King (IA) Chris Gibson (NY)
Randy Neugebauer (TX) Vicky Hartzler (MO)
Mike Rogers (AL) Reid Ribble (WI)
Mike Conaway (TX) Christy Noem (SD)
Glenn Thompson (PA) Dan Benishek (MI)
Bob Gibbs (OH) Chris Collins (NY)
Austin Scott (GA) Rodney Davis (IL)
Scott Tipton (CO) Jeff Denham (CA)
Steve Southerland (FL) Richard Hudson (NC)
Rick Crawford (AR) Doug LaMalfa (CA)
Martha Roby (AL) Ted Yoho (FL)20
Collin Peterson (MN)
Mike McIntyre (NC) Filemon Vela (TX)
David Scott (GA) Michelle Lujan Grisham (NM)
Jim Costa (CA) Ann Kuster (NH)
Tim Walz (MN) Richard Nolan (MN)
Kurt Schrader (OR) Pete Gallego (TX)
Marcia Fudge (OH) William Enyart (IL)
Jim McGovern (MA) Juan Vargas (CA)
Suzan DelBene (WA) Cheri Bustos (IL)
Gloria McLeod (CA) Sean Patrick Maloney (NY)
Joe Courtney (CT21