Senate Farm Bill

Two questions loom large in the Senate’s consideration of the Farm Bill: When will the Senate pass a bill? And which Farm Bill proposal will they pass?

When Will the Senate Pass A Farm Bill?

The first issue under consideration is whether the Senate will pass a Farm Bill before it recesses for the holidays. One key issue is the amount of money available for new spending. The House of Representatives followed last spring’s budget resolution and devoteed $170 billion to farm spending over the next ten years. However, with projected revenues declining and unforeseen expenditures on national security and economic stimulus measures, it is uncertain how much money will actually be available for farm spending. Several farm groups, including National Farmers Union, are urging the Senate to move quickly to pass a farm bill, so that the spending allowable under the bill will be dictated by last spring’s spending limits rather than new budget projections.

National Farmers Union Statement on Passage of Farm Bill

On the other hand, nine commodity groups have written a letter to Senator Daschle seeking a slower Farm Bill process.

Commodity Groups Letter

The Administration is assuring that the money will be available to fund farm spending even if a bill is not passed till next year, providing that it conforms with the Administration’s principles.

Which Farm Bill Will the Senate Pass?

Right now, the Senate appears to have three Farm Bill options:

1) Pass the House version of the Bill. Senator Daschle has indicated that he might bring the House bill directly to the floor, bypassing the Agriculture Committee entirely. Many environmentalists and family farm advocates consider this to be a worst-case scenario.

More on H.R. 2646, the House "Texas Tornado" Farm Bill

2) Pass a bill introduced by Senator Lugar, H.R. 1571.

Summary of Senator Lugar’s Farm And Ranch Equity Act of 2001

This bill radically alters the payment structure within the Commodities Title, which phases out crop subsidies and replaces them with an insurance voucher system that would apply to grains, cotton, fruit, vegetables and livestock. Senator Lugar’s bill, as introduced, also reinstates food stamps for legal immigrants and contains modest conservation funding gains over the House Farm Bill.

National Association of Conservation Districts Compares Lugar Bill to Combest Bill

However, Lugar’s bill maintains some of the bad conservation policies of the House Bill – most notably, it would open EQIP funding to large Confined Animal Feeding Operations.

Why Large CAFOs shouldn’t receive EQIP funds

Despite these problems, a few environmental groups have given the Lugar bill tentative approval:

Environmental Working Group

Environmental Defense

The Bush Administration also expressed support for Senator Lugar’s bill on the grounds that the bill would be compatible with the Administration’s trade goals.

White House Position on Lugar Bill

However, Lugar’s bill is not supported by any farm or commodity group.

National Farmers Union Position on Lugar Bill

3) Pass a bill released by Senate Agriculture Committee Chairman Harkin on November 1. Senator Harkin’s just-released bill includes marketing assistance loans, counter-cyclical payments and non-recourse loans; balances expansion of existing conservation programs with enactment of a working lands stewardship program based on the Conservation Security Act; expands credit and nutrition programs; and includes new titles to enhance market competition and promote on-farm development of renewable energy resources.

Outline of Senator Harkin’s Farm Bill Proposal

The Harkin Bill contains a number of good conservation provisions, including strengthening compliance, maintaining a cap on the size of animal feeding operation that can receive EQIP, and creating a stewardship incentives program based on the Conservation Security Act.

Several environmental groups praised these advances, though some cautioned that the bill could be further improved by investing more money in conservation.

Other groups, however, contend that Harkin’s bill falls short of what is needed to adequately invest in conservation.

Several commodity, farm and nutrition groups have responded favorably to Senator Harkin’s proposal:

In addition to these three proposals for the full House Farm Bill, Senators Leahy and Reid are planning to offer an amendment to the conservation title. This amendment, we understand, will resemble the Boehlert/Kind Amendment that was narrowly defeated in the House.

Comparison of Conservation Provisions

Dollars and Policy: Choosing Among A Suite of Conservation Titles