Campaign for a New Farm Bill

Campaign for a New
Farm & Food Policy

New Farm Bill: "Food, Conservation and Energy Act of 2008"

The House and Senate voted overwhelmingly to approve a five-year, $307 billion farm bill, despite a veto threat from President Bush for budget reasons.

The 81-to-15 Senate vote and 318-to-106 House vote clearly indicated broad bipartisan support and received far more than the two-thirds that would be needed to override Bush’s veto, should he keep his pledge to do so.

President Bush has said he wants to sharply limit government subsidies to farmers at a time of near-record commodity prices and soaring global demand for grain. Most legislators were not swayed by Bush’s description of the bill as bloated and …

The bill – officially titled "Food, Conservation and Energy Act of 2008" – includes a $10.3 billion increase in spending on nutrition programs for low-income families as well as increases for rural development and conservation programs.

But the new farm bill also extends many existing federal subsidies that critics say are difficult to justify in such flush times for agricultural producers. Proponents counter that flush times rarely last and therefore a "farm safety net" needs to remain in place. The more critical debate, however, is one not yet fully addressed by Congress in farm bill deliberations: the ultimate beneficiaries of commodity support programs being large agribusiness corporations, not rural America and farm families.

[To learn more about the U.S. agri-food system and structures of corporate control, visit www.agribusinessaccountability.org]

So while President Bush has called for spending cuts, the various programs in the farm bill are viewed as vital legislation both for rural America and in impoverished communities needing food assistance.

Agriculture Committee chairman, Rep. Collin Peterson (D-MN), said he expected the bill to reach the president’s desk by Tuesday, May 20th, and assuming a veto, an immediate override to be approved before Congress leaves for a Memorial Day recess.

Positive Aspects of the Food, Conservation & Energy Act of 2008

During final statements before voting in the House and Senate, legislators on both sides of the aisle said this was not a perfect bill, nor could be given its omnibus nature and competing demands. It is worth noting, however, that a fair amount of positive aspects are included in the new legislation, compared to the 2002 Farm Bill:

Nutrition Assistance: The new farm bill includes a total $10.3 billion increase for nutrition assistance, including food stamps (vital especially at a time of rapidly escalating food costs) and fresh fruits and vegetables for schools.

Local & Regional Food Systems: More than ever before, the 2008 farm bill provides support for local and regional food systems. Communities that want to start a farmers’ market stand a better chance because the new bill includes a seven-fold increase in funding to improve and expand farmers markets, roadside stands, and other direct producer-to-consumer marketing opportunities.
The bill includes a new loan guarantee program for food enterprises that help rebuild a local and regional food infrastructure. The Value-Added Producer Grants program is also expanded to include mid-tier value chains and local and regional food businesses.

Conservation: The new farm bill provides $4 billion in much-needed additional funding for conservation programs, including $2 billion new dollars for the Conservation Stewardship Program, an innovative program that supports farming livelihoods through payments to farmers and ranchers for environmental enhancements and long-term stewardship.

Renewable Energy: The new legislation includes a major new energy transition program to assist farmers who want to move into biomass production for cellulosic ethanol.

Beginning Farmers and Ranchers: The new farm bill contains a substantial package of policies aimed at supporting the next generation of farmers. A new grants program will target farm bill funds to training, mentoring and land link programs. Interest rates for down payment loans will be as low as 1%, while 5% of funding in each conservation program is set aside for beginning and socially disadvantaged farmers (equating to tens of millions of dollars each year).
In order to ensure oversight and coordination between all programs that address the needs of these farmers, the new farm bill creates a new Office on Small Farms and Beginning and Socially Disadvantaged Farmers at USDA reporting directly to the Secretary of Agriculture.

Livestock Title: This new title in farm bill legislation is meant to address the lack of fair and competitive markets in the livestock and poultry industries. Producers will be able opt out of arbitration clauses in their livestock or poultry production contracts; a contract grower will be able to have any dispute settled in the federal judicial district where he lives rather than where the company headquarters are located. Contract growers will have three days to cancel a contract after signing and the initial contract must disclose whether large capital investments will be required over the life of the contract.
The Livestock title also directs USDA to define "undue pricing preference" to protect small and independent livestock producers from unjustified pricing practices that favor larger producers. The bill includes a Country of Origin Labeling provision requiring retailers to label the country of origin of meat, fish, fruits and vegetables by September 30, 2008. This provision retains the prohibition on the use of a mandatory National Animal Identification System, which is seen by many small producers as a way to knock them out of the market.

Rural Development: The new Rural Microenterprise Assistance Program was given $15 million in mandatory funding over four years. This program will provide loans and technical assistance to rural entrepreneurs with low and moderate incomes to establish small businesses in rural areas.

Organic Production and Research: The new farm bill provides much-needed additional funding to help organic farmers with their organic certification costs and the transition costs associated with three-year conversion from conventional to organic. The new farm bill also increases funding for organic research to five times the current level. It also takes significant steps toward improving crop insurance policies. This is a solid and important start to helping farmers keep up with demand for food that is produced organically.

Commodity Title becomes "Producer Income Protection"

The 2008 farm bill begins with the "Producer Income Protection" title in lieu of the former Commodity Title, but this new name still continues the basic "safety net" features of the 2002 bill. Most farmers would say this has worked well for them, especially when prices were below cost of production. The new title allows producers, beginning with the 2010 crop year, to choose to participate in a state-level revenue protection system.

The "Average Crop Revenue Election" program (ACRE), modeled after legislation proposed by farmers and introduced by Senators Durbin and Brown, offers producers better options for managing risk of both yield and price declines on their farms in today’s uncertain, rapidly changing farm environment.

But Religious Groups disappointed in lack of reform

Despite nods to reform in the 2008 farm bill, faith-based groups expressed deep disappointed that the current agreement did not include critical reforms to the inequities in farm supports. In an appeal to Congress during their negotiations, U.S. Conference of Catholic Bishops wrote:
"We urge you to craft legislation that more justly structures farm price supports, reflects basic moral principles, and responds to the real needs of the most vulnerable farmers and families in the United States and around the world. We urge you to address the issue of farm support payments which often go to the most affluent. Removing incentives that can lead to misuses of the subsidy system and mandating effective income caps for eligibility will result in a more equitable and effective Farm Bill.
"Meaningful reforms within Title I can help address the inequities of the current system and create savings that can be used for urgent priorities such as feeding the hungry at home and abroad. Reform is needed to ensure that limited resources are targeted to those who need them most.
"Modest efforts to cap farm price supports are needed so that limited resources can be appropriately redistributed to farmers and ranchers with smaller and moderate-sized operations. All-time high returns in some parts of the agriculture sector require an end to the unjust and wasteful concentration of supports to the largest and wealthiest operations."

Catholic Relief Services remarks on International Food Aid provisions in the new farm bill

CRS issued a press release stating that Congress passed a Farm Bill that included important provisions for international food aid programs. But while they are pleased with these provisions, they also state that the new bill did not include several critical reforms that Catholic groups have been advocating for, including much needed reforms in the domestic price support system.

Here is how the new farm bill will improve efforts to assist hungry people around the world:

1. The "safebox" for development programs will ensure that part of food aid funding will be strictly reserved for non-emergency long-term developmental food aid programs that are currently being raided to respond to emergency food needs. Long-term developmental food aid programs address chronic hunger so that future food emergencies can be averted. For example, CRS uses food aid to promote education by offering food incentives for children, especially girls, to go to school.

2. A strengthened Bill Emerson Humanitarian Trust (BEHT) will mandate that the BEHT be used first during unforeseen emergency food needs. Until now, the U.S. government has continually raided regular food aid resources intended for long-term development use to respond to food emergencies during natural disasters or wars. The new Farm Bill_s _use first_ provision will help protect long-term development food aid programs from being continually raided for use in emergencies.

3. More cash resources for Title II Food Aid will allow greater flexibility so more funds can cover costs necessary to maximizing the effectiveness of Title II commodities and more effectively address the root causes of hunger. For example, funding can be used to pay for staff to transport food that is needed in programs.

4. Local or regional purchase will allow greater flexibility in addressing hunger needs, especially in times of crisis. Purchasing food closer to where it is needed makes food aid more effective and builds the capacity of local agriculture. Although CRS has advocated for a much larger local purchase program, they are pleased that the Congress has included this important policy change.

5. An authorization of $2.5 billion for the overall P.L. 480 Title II food aid program will allow more U.S. food aid to reach more people who suffer from hunger.

What does the farm bill have to do with Christian faith?

As Catholics, our Church’s social teaching is rooted in the sacredness and fundamental dignity of every human life. As the U.S. Catholic Bishops have stated, the right to food is a basic right because it is required to sustain life and to live a truly human existence. Therefore, we are called to ensure that we do everything we can to meet the basic food needs of our brothers and sisters around the world as well as here at home.

Visit the www.crs.org to learn more about how Catholic Relief Services fight global hunger.

The Farm Bill contains many important provisions that affect the way our government provides food to people who need it around the world and in the United States. USCCB and CRS have been advocating for provisions in the Farm Bill that would help poor farmers improve their lives and that would improve the delivery of food aid to those people who need it most in some of the poorest countries in the world.