Thursday December 11, 2008
2008 Farm Bill
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See also:Agriculture, a more than $5 billion industry in Idaho, is an integral part of Idaho’s economy. Idaho leads or is ranked among top states in the production of potatoes, peas, lentils, mint, sugarbeets, onions, hops, dairy products, wheat, wool, cherries and other commodities. Also, livestock outnumber people in Idaho. Federal farm policy must ensure that farmers and ranchers in Idaho and across the United States are able to continue to be successful and feed the world’s hungry. As a Member of both the U.S. Senate Committee on Agriculture, Nutrition, and Forestry and the Senate Committee on Finance, tasked with writing the new Farm Bill, I was fortunate to have the opportunity to once again assist with shaping this legislation that touches so many lives. The Farm Bill affects our nation’s food security, global competitiveness, and the condition of our air, water, and land.
Due to the importance and far reach of this legislation, substantial time and preparation went into the new Farm Bill. Numerous hearings were held in Congress and across the country. In 2006, I held 23 Farm Bill listening session throughout Idaho to obtain suggestions as to how to create the strongest bill for Idaho. I utilized that input in working with my fellow members of the Committees and Congress on the legislation.
The final Farm Bill is a strong piece of legislation that will build upon the 2002 Farm Bill provide some long-term certainty for farm families and consumers. The information below touches on only some of the many programs continued and created through this legislation and provides contact information for additional information and signup. Use the links below to navigate to summaries of various Farm Bill programs:
Specialty Crops and Organics Programs
Commodity Programs
Idaho ranks among the top 10 producing states for barley, peas, cheese, lentils, milk, wool, sugarbeets, wheat, and other important staples. The 2008 Farm Bill enables Idaho producers to continue to feed the world’s hungry. The new Farm Bill makes pulse crops eligible for the first time for Counter-Cyclical Program assistance, which helps producers when prices are low. The rates for this program and others are provided below.
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Direct |
Loan Rate |
Target Price |
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Crop Years |
2008-2012 |
2008 |
2009 |
2010-2012 |
2008 |
2009 |
2010-2012 |
|
Barley |
$0.24 |
$1.85 |
$1.85 |
$1.95 |
$2.24 |
$2.24 |
$2.63 |
|
Chickpeas(L) |
N/A |
N/A |
$11.28 |
$11.28 |
N/A |
$12.81 |
$12.81 |
|
Chickpeas(S) |
N/A |
$7.43 |
$7.43 |
$7.43 |
N/A |
$10.36 |
$10.36 |
|
Corn |
$0.28 |
$1.95 |
$1.95 |
$1.95 |
$2.63 |
$2.63 |
$2.63 |
|
Dry Peas |
N/A |
$6.22 |
$5.40 |
$5.40 |
N/A |
$8.32 |
$8.32 |
|
Lentils |
N/A |
$11.72 |
$11.28 |
$11.28 |
N/A |
$12.81 |
$12.81 |
|
Minor Oilseeds |
$0.80 |
$9.30 |
$9.30 |
$10.09 |
$10.10 |
$10.10 |
$12.68 |
|
Oats |
$0.024 |
$1.33 |
$1.33 |
$1.39 |
$1.44 |
$1.44 |
$1.79 |
|
Grain Sorghum |
$0.35 |
$1.95 |
$1.95 |
$1.95 |
$2.57 |
$2.57 |
$2.63 |
|
Wheat |
$0.52 |
$2.75 |
$2.75 |
$2.94 |
$3.92 |
$3.92 |
$4.17 |
|
Wool (Graded) |
N/A |
$1.00 |
$1.00 |
$1.15 |
N/A |
N/A |
N/A |
|
Wool(Nongraded) |
N/A |
$0.40 |
$0.40 |
$0.40 |
N/A |
N/A |
N/A |
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* Direct payment rates are maintained throughout the life of the 2008 Farm Bill, with a reduction in the payment acres to 83.3 percent for crop years 2009-2011.
Average Crop Revenue Election (ACRE) Program – Starting with the 2009 crop year, producers would have the option to agree to a 20 percent reduction in direct payments and a 30 percent reduction in loan rates to participate in a new state-level revenue protection program.
Dairy – Forward contracts between dairy producers and handlers who use milk for manufacturing purposes would be authorized. A Federal Milk Marketing Order Review Commission would be established to conduct a comprehensive review of milk marketing order systems. The Milk Income Loss Contract (MILC) program would be extended with an increase in the coverage percentage to 45 percent. Separate cheddar cheese, butter, and nonfat dry milk support prices would replace the current milk price support.
Sugar – The loan rate for beet sugar would be increased over three years to 24 cents per pound. The sugar marketing allotment quota program would be extended with the minimum allotment quota changed to 85 percent of domestic consumption.
Conservation Programs
No federal policy has contributed more to enhancing our environment than the Farm Bill conservation programs. Incentives, like those offered through the conservation programs, rather than mandates provide the best way to achieve environmental results on private land. More than $4 billion in new spending would be provided for conservation programs, which enable landowners to meet environmental goals that benefit everyone.
Endangered Species Recovery Deduction – The 2008 Farm Bill includes language from my Endangered Species Recovery Act that establishes a tax deduction for the cost of actions to implement site-specific management measures included in recovery plans under the Endangered Species Act. This provision is effective for expenditures paid or incurred after December 31, 2008 and is estimated to cost $72 million over five years and $283 million over ten years.
Agricultural Water Enhancement Program (AWEP) – AWEP, which will receive a total of $40 million in additional funding through 2012, was created to address water conservation and water quality issues. To enable collaboration in addressing water issues and the leveraging of funding, local and tribal governments, and other groups will be eligible participants. The Eastern Snake Plain Aquifer region is included as an important area for the program.
Idaho agriculture is highly dependent on water. More than 60 percent of Idaho farms have irrigation. With increased demand on water resources, programs such as the new AWEP will enable more efficient water use to better ensure there is enough of the limited water to meet the needs of Idahoans.
Conservation Reserve Program (CRP) – CRP provides an average annual rental payment of $41.79 for the more than 700,000 acres of Idaho land enrolled in the program to assist with the establishment of conservation covers that reduces erosion and protects natural resources. CRP would be reauthorized with a reduction in the acreage cap to 32 million acres in fiscal year 2010. Conservation Reserve Enhancement Program (CREP) and continuous CRP would be exempt from CRP county acreage caps if county governments agree. This change would better enable enrollment in Idaho and other States’ CREPs.
Environmental Quality Incentives Program (EQIP) – EQIP would be provided with $3.393 billion to continue assisting producers with addressing conservation issues. In Idaho EQIP projects have included projects to protect salmon, steelhead and bull trout through a number of animal feeding operation projects, and used to increase forest health and reduce wildfire through projects with the Nez Perce Tribe and landowners in the Lewiston area.
Specialty Crops and Organics Programs
There are more than 140 commodities produced in Idaho, many of which are specialty crops. Additionally, organic agriculture is a growing sector of the agricultural economy. Ensuring the success of these industries is essential for Idaho communities and economy. The 2008 Farm Bill would invest more than $2 billion toward this effort.
Farmers Markets – The bill would provide $33 million in mandatory funding for the development and expansion of farmers markets.
National Clean Plant Network – The Farm Bill provides $ 5 million per year in mandatory funding ($20 million over life of Farm Bill) for the establishment of the National Clean Plant Network for the production of clean plant material.
Organic Data – An organic data collection initiative, funded with $5 million, would assist with providing national organic production and market data.
Organic Transition – The bill provides $22 million in mandatory funding to assist producers with challenges with transitioning to organic production.
Pest and Disease Program – This new program would receive $377 million over 10 years for state departments of agriculture for coordinated efforts to combat invasive species and other plant health threats.
Specialty Crop Block Grants – Over the next 10 years, $466 million would be provided for the Specialty Crop Block Grants program to provide grants to state departments of agriculture to assist with marketing, promotion, education, research, trade, and nutrition efforts to increase the competitiveness of specialty crops.
Organics – The Organic Research and Extension Initiative would receive $78 million in mandatory funds to assist organic producers with growing and marketing organic crops.
Specialty Crop Research Initiative – The new Specialty Crop Research Initiative would be created with $230 million in mandatory funding to assist with meeting the research needs of specialty crop producers and processors.
Rural Development and Trade Programs
An estimated 95 percent of the world’s consumers live beyond our borders, and the bill would assist with reaching those consumers by expanding foreign market opportunities and rural business development. U.S. producers have world renowned products and there are continual value-added developments through packaging and marketing that advance appeal to ever-changing consumer lifestyles and help with competing in the domestic and global marketplace. The 2008 would help foster these efforts.
Broadband Access – Broadband access is key to the growth and economic development of rural area, and this Farm Bill simplifies the applications process for broadband assistance and ensures that broadband assistance is targeted at communities with the least amount of access.
National Rural Development Partnerships – The Farm Bill includes the reauthorization of the National Rural Development Partnerships to enable individual state partnerships like the Idaho Rural Partnership to continue working to strengthen and improve life in rural America.
Rural Businesses – Improving the economic position of rural areas by stimulating the growth of rural businesses is accomplished through the reauthorization of important programs such as Rural Business Opportunity Grants and Rural Cooperative Development Grants, which will ensure the continuation of technical assistance and training to our nation’s rural businesses and cooperatives.
SEARCH Grants – Across the U.S., rural communities struggle to access the funds necessary to comply with federal, state, and local environmental regulations. Through changes to SEARCH grants, small rural communities with populations of 2500 or less will have greater, more streamlined access to funding to assist with water and wastewater infrastructure projects. The bill also provides $120 million in mandatory spending to be directed at pending applications for water and waste disposal grants and loans.
Value-Added Producer Grants – Value-Added Producer Grants will continue to provide producers with the means to improve upon the value of their products through planning activities and marketing.
Foreign Market Development Program (FMDP) – FMDP, which assists with trade technical assistance, market research, and promotions, would be reauthorized.
Market Access Program (MAP) – MAP, which assists with the expansion of foreign market opportunities, would be reauthorized with $200 million per year.
Softwood Lumber – A softwood lumber importer declaration program would be established to ensure compliance with international agreements.
Technical Assistance for Specialty Crops (TASC) – Funding for TASC would be increased from $2 million per year to $9 million per year by 2011 to assist with the removal of specialty crop trade barriers.
Energy and Forestry Programs
As all Americans grapple with rising energy costs, the agricultural community offers renewable and other energy alternatives to diversify our energy sources. The 2008 Farm Bill provides significant investments in energy programs that would assist producers with efforts that support energy independence. Additionally, forest resources contribute significantly to many of Idaho’s rural communities, and this legislation provides measures to assist with the protection, conservation, restoration, and renewable energy development of forest lands.
Biodiesel – The Farm Bill incorporates language from the Biodiesel Education and Expansion Act of 2007, S. 1791, which I introduced with Senator Amy Klobuchar (D-MN), to reauthorize the Biodiesel Education Program at $5 million per year in mandatory funding. This is five times the funding provided in the last Farm bill. The University of Idaho has received about 20 percent of those funds through a competitive grants process to help educate government and private owners of vehicle fleets about the benefits and technical aspects of biodiesel.
Bioenergy – The Farm Bill funds the Bioenergy Program at $300 million. This program provides incentives for expanding production of advanced biofuels made from agricultural and forestry crops and associated waste materials, including animal manure and livestock/food processing waste.
Biofuels Study - The bill directs the Secretary of the Treasury, in consultation with the Secretary of Agriculture and the Secretary of Energy and the Administrator of the Environmental Protection Agency, to request that the National Academy of Sciences produce an analysis of current scientific findings relating to the future production of biofuels and the domestic effects of an increase in the production of biofuels.
Biomass Crop Assistance – The Farm Bill includes the creation of a Biomass Crop Assistance Program to develop the next generation of feedstocks for renewable energy.
Biomass Research – The Farm Bill provides $120 million for the Biomass Research and Development Program, which would coordinate research and development activities, including improvements in feedstock development and the efficiency of biofuel production.
Biorefineries – The Farm Bill includes $320 million in loan guarantees for biorefineries producing advanced biofuels.
Renewable Energy – The bill provides an overall $1 billion to fund programs in the energy title that will leverage renewable energy industry investments in new technologies and new feedstocks.
Rural Energy – The legislation creates the Rural Energy for America Program (REAP) to provide $250 million in grants and loan guarantees for agricultural producers and rural small businesses to purchase renewable energy systems and make energy efficiency improvements.
Sugar to Ethanol – The bill would establish a sugar-to-ethanol program, which would provide sugar to biofuel producers at competitive prices and specifies that sugar would be provided for biofuel production only during times of excess sugar supply.
National Priorities for Private Forest Conservation – The Forestry Title of the Farm Bill would identify three priorities for private forest conservation:
Conserving and managing working forests;
Protecting forests from threats, including catastrophic wildfires;
Enhancing public benefits from private forests, including air and water quality, soil conservation, carbon storage, forest products, forestry-related jobs, production of renewable energy, habitat and recreation.
Community Forest and Open Space Program – A new provision of the Farm Bill would establish a community forestry program that would provide matching funds to county and local governments, Indian tribes, and nonprofit organizations to purchase private forests that are threatened by conversion to non-forest uses.
This differs from other introduced bills in that rural areas and States with more than twenty-five percent federally-managed public lands are not excluded. Public access for recreation would be provided on the lands acquired.
Tribal-Forest Service Cooperative Regulations – The bill would recognize the traditional and cultural needs of Indian tribes for reburial of human remains and artifacts and to ensure access to National Forest System lands to Indians and Indian tribes for traditional and cultural purposes.
Healthy Forest Reserve Program – The bill would provide $39 million over 10 years for the Healthy Forest Reserve Program, which will help private forestland owners protect endangered species.
Nutrition
The 2008 Farm Bill provides a more than $10 billion increase in funding for nutrition programs, which can be particularly helpful to those pressured by the higher costs of energy prices and other living expensive. The bulk of the Farm Bill funding does not go to commodity programs. Two-thirds of the Farm Bill funding goes toward nutrition programs.
Food Banks – The bill strengthens assistance for America’s food banks by providing $1.256 billion over the next ten years for commodity purchasing (nearly double the current funding level). Access to food banks is particularly important given the difficult economic times and high gas prices.
Fresh Fruit and Vegetable Program (FFVP) – The legislation provides $1 billion for the expansion of FFVP to every state, enabling it to serve as many as 3 million low-income children.
Potatoes – To address the exclusion of white potatoes from the Women, Infants, and Children (WIC) program, Senator Crapo worked with the Idaho delegation and other Members of Congress to obtain the inclusion of language in the Joint Statement of Managers that accompanies the Farm Bill conference report regarding the need for the inclusion of all fruits and vegetables in the federal nutrition programs where supported by science.
Contacts
Farm Bill programs are administered by various agencies within the U.S. Department of Agriculture. For further information or to sign up for these programs, you may want to contact local USDA offices.
The following link can be used to obtain information regarding local USDA offices: http://offices.sc.egov.usda.gov/locator/app?state=id&agency=fsa
Idaho State Farm Service Agency (FSA)
9173 West Barnes Drive
Boise, Idaho 83709-1573
(208) 378-5650
(208) 378-5678 Fax
Natural Resources Conservation Service
9173 West Barnes Drive, Suite C
Boise, ID 83709-1574
(208) 378-5700
(208) 378-5735 fax
USDA Rural Development Idaho
9173 West Barnes Drive, Suite A1
Boise, ID 83709
(208) 378-5600
(208) 378-5643
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