New Farm Bill on way to Senate for approval

The last farm bill was passed by Congress in 2008.The new legislation continues the tradition of combining the nation's agricultural policy with funds for the federal food stamp program, which usually accounts for about 80 percent of the measure's funding.

Passage of the new farm bill will cap more than three years of negotiations. The bill authorizes the end of direct government payments made to farmers, revamps and consolidates dozens of federal conservation programs, tweaks several subsidy programs for the nation's crops and cuts billions of dollars in federal food stamp money. The measure is expected to cut federal spending by $16 billion over the next decade, according to official government estimates by the Congressional Budget Office.

House Agriculture Committee Chairman Frank Lucas said in a statement, "I am pleased a majority of my House colleagues joined me in supporting a five-year, comprehensive farmbill. I appreciate the efforts of everyone who helped get us here. This is legislation we can all be proud of because it fulfills the expectations the American people have of us. They expect us to work together to find ways to reduce the cost of the federal government. The Agricultural Act contributes major savings to deficit reduction, significant reforms to policy, and yet still provides a safety net not only for the production of American food and fiber, but also to ensure our fellow citizens have enough food to eat. I am hopeful this legislation will enjoy the same success when the Senate considers it, and I encourage the President to sign it quickly into law."

“At home in Indiana, Hoosier farmers have been waiting for Congress to pass a comprehensive farm bill since 2012, and I am pleased the House has approved this agreement to provide certainty in the agriculture community," said Congresswoman Jackie Walorski (R-IN2).

“Like most Washington legislation, there is still much work to be done to continue reforms in future farm bills, but I am pleased this agreement contains important provisions to end direct payments, strengthen crop insurance for family farmers and producers, and consolidate and streamline more than 100 programs at the U.S. Department of Agriculture,” she added.

“Finally, after years of negotiations, we have a farm bill,” said Sen. Joe Donnelly (D-IN). “While the bill is not perfect, it represents a bipartisan agreement that will give the Hoosier ag community the certainty it needs to continue feeding our country and being a vital part of Indiana’s economy. I call on my colleagues to quickly pass this bill and for the president to sign it into law.”

Included in the bill is Donnelly’s amendment to the Senate farm bill that he introduced with Senator Pat Roberts (R-KS). Their amendment would amend the Noninsured Crop Disaster Assistance Program to offer coverage for crops producing feedstock for energy purposes. The amendment would also direct USDA to research and develop risk management tools promising new sorghum crops.

Donnelly said of his amendment, “Many of Indiana’s farmers continue to contribute to our domestic energy security, so I am pleased that the final agreement included my amendment to give the next generation of bioenergy crops access to base levels of risk management.”

Before the House vote, Sen. Dan Coats (R-IN) had said, “I am pleased that an agreement has been reached because Hoosier farmers and agricultural producers have waited long enough for a new farm bill. I supported the bipartisan Senate version of the farm bill last year and will review this compromise when it becomes available. My hope is that it contains significant cost savings while ensuring our farmers have a broad safety net in the event of a natural disaster.”

Farm Policy Reforms

The Agricultural Act of 2014 includes the most significant reduction to farm policy spending in history by improving agricultural programs.

Repeals Direct Payments and limits producers to risk management tools that offer protection when they suffer significant losses.
Limits on payments are reduced, eligibility rules are tightened, and means tests are streamlined to make farm programs more accountable.
Strengthens crop insurance, a successful public/private partnership that ensures farmers invest in their own risk management.
Provides historic reforms to dairy policy by repealing outdated and ineffective dairy programs. Offers producers a new, voluntary, margin protection program without imposing government-mandated supply controls.
Supports small businesses and beginning farmers and ranchers with training and access to capital.

Food Stamp Reforms

The Agricultural Act of 2014 makes the first reforms to the food stamp program since the welfare reforms of 1996 while maintaining critical food assistance to families in need.

Closes the “heat-and-eat” loophole that artificially increases benefit levels when states provide nominal LIHEAP assistance.
Establishes a 10-state pilot to empower states to engage able-bodied adults in mandatory work programs.
Prohibits USDA from engaging in SNAP recruitment activities, and advertising SNAP on TV, radio, billboards and through foreign governments.
Ensures illegal immigrants, lottery winners, traditional college students, and the deceased do not receive benefits.
Ensures SNAP recipients are not receiving benefits in multiple states.
Prevents abuses such as water dumping to exchange bottles for cash.
Demands outcomes from existing employment and training programs.
Prohibits states from manipulating SNAP benefit levels by eliminating medical marijuana as an allowable medical expense.
Allows states to pursue retailer fraud through a pilot investigation program and crack down on trafficking through data mining, terminal ID, and other measures.
Increases assistance for food banks.

Additional Reforms & Regulatory Relief

The Agricultural Act of 2014 includes multiple regulatory relief provisions benefitting agricultural and forestry industries.

Consolidates 23 duplicative and overlapping conservation programs into 13.
Provides one year of full funding for the Payment In Lieu of Taxes (PILT) program, which provides funding for vital services in communities containing federal lands.
Provides certainty to the forest products industry by clarifying that forest roads and related silvicultural activities should not be treated as a point source under the Clean Water Act.
Creates a permanent subcommittee within the EPA Science Advisory Board to conduct peer review of EPA actions that would negatively impact agriculture.
Enhances coordination between USDA, EPA, U.S. Fish and Wildlife Service (FWS) and the National Oceanic and Atmospheric Administration (NOAA) regarding the conflict between laws governing pesticide use and the Endangered Species Act.
Enhances coordination between USDA and the U.S. FWS regarding actions taken to manage the lesser prairie chicken.
Eliminates duplicative reporting requirements for seed importers; requires improved economic analysis of FDA regulations.