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Klobuchar Payment Reform, Renewable Energy Efforts Leave Mark on Final Farm Bill

Farm Bill also includes historic disaster assistance and strong safety net Klobuchar pressed for during negotiations

May 15, 2008

Washington, D.C. – U.S. Senator Amy Klobuchar’s efforts to include reform of federal farm payments and groundbreaking investments in cellulosic biofuels in the 2008 Farm Bill passed as part of the final bill today by a vote of 81-15 in the Senate.  The final reform language is close to the eligibility caps that Klobuchar authored last year and represents an important step toward payment reform.  Klobuchar also helped to strengthen the safety net for Minnesota farmers and provide the first ever permanent disaster assistance that passed in the final bill.

“This bill not only takes a significant step toward payment reform, but makes critical investments in nutrition, conservation, and renewable energy that are vital to all Americans,” said Klobuchar. “This is a good bill for Minnesota farmers and ranchers, and I want to thank our Committee Chairmen, Representative Collin Peterson and Senator Tom Harkin, for their leadership in negotiating a strong and bipartisan bill.”

Agriculture Committee Chairman Harkin (D-IA) recognized Sen. Klobuchar’s work on the historic energy provisions in the Farm Bill stating:

“Senator Klobuchar from the beginning advocated strong new incentives for farmers to produce energy crops and support for rural energy facilities and biorefineries, in addition to common-sense reform of farm payments.  It was obvious she was listening to Minnesotans and carrying their message to the Senate.”

Klobuchar’s groundbreaking provision to invest in cellulosic biofuels was modeled after her “Farm-to-Fuel Investment Act,” which aims to reduce American dependence on foreign oil by providing incentives for farmers to grow dedicated energy crops, such as switchgrass, which can be grown on marginal land solely for the purpose of producing energy.

“This is a forward-looking farm bill that will foster advances in cellulosic biofuels that will fuel the future,” said Klobuchar. “This is a significant investment in the next generation of renewable, home grown energy that will help create jobs and new economies in Minnesota and across America.”

Klobuchar was also a leading voice for reform in the Senate bill.  Her reform proposal received a majority vote in the Senate last year, but procedural rules required 60 votes for the amendment to become a part of the overall Farm Bill.  The final legislation makes anyone with non-farm income exceeding $500,000 ineligible for all federal commodity payments, a measure designed to make sure that federal support goes to working farmers. It also will make individuals with farm income exceeding $750,000, after expenses, ineligible for direct payments.

“This has been an uphill struggle,’’ Klobuchar said. “But it was worth the effort to make sure that we are spending the public’s money wisely and that federal support is going to the nation’s hardworking farmers and not to urban millionaires.’’

Klobuchar also worked to strengthen the safety net for Minnesota farmers.  The final legislation made crucial improvements to the Milk Income Loss Contract (MILC) Program and increased the loan rates for the successful sugar program which Klobuchar has advocated for.  The final legislation will increase the payment rate in the MILC program back to 45% from the current 34% and raise the sugar loan rate by over ¾ cent per pound in the sugar program.

“These are critical programs for Minnesota’s dairy farmers and sugar producers,” said Klobuchar.  “These improvements will help Minnesota’s dairy and sugar producers continue to deliver reliable products and support these industries that contribute billions of dollars to the state’s economy.”

The legislation passed today includes long overdue permanent disaster assistance, which Klobuchar was successful in helping include in the final legislation.  This provision is particularly important to Minnesota and neighboring states that have seen droughts, flooding and other disasters in years.  The provision will help family farmers with the financial fallout of natural disasters and bad weather.
“The permanent disaster program means a great deal to our farmers and ranchers in the Midwest facing financial hardships,” said Klobuchar.  “Our hardworking families shouldn’t have to come to Congress with a tin cup when they are struggling to stay in business during severe cycles of drought and flooding.”

Klobuchar also was pleased to see that the final funding for conservation programs was increased by more than $ 4 billion in the final bill.  The conservation title is vital to improve the effectiveness of programs that help Minnesota’s environment while ensuring that Minnesota farmers and ranchers will continue to have rich and productive farmland.

“I’m very proud that we have provided the necessary resources to increase the effectiveness of our conservation programs to protect our water quality and provide habitat for wildlife,” said Klobuchar.

To see video of Senator Klobuchar’s statement click here.

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