2013 Senate & House Farm Bill Comparison

6/12/2013 10:42:40 AM



CURRENT LAW

SENATE AG COMMITTEE 
(S. 954)

HOUSE AG COMMITTEE 
(HR 1947)

 

Passed by a vote of 15-5 

(Johanns (R-NE), Thune (R-SD), Roberts (R-KS), McConnell (R-KY), and Gillibrand (D-NY) voted “No.”

Passed by a vote of 36-10

Overall Budget/Savings

Cost $979.7 billion over the 10 years before sequester reductions of $6.4 billion.

  • Costs $955 Billion over 10 years
  • Saves $23 Billion over 10 years 
  • $4B in SNAP
  • $17B in commodities 
  • $4B in conservation
  • $6.4 billion savings claimed from sequester 
  • Crop insurance increases $5B (but $2.3 billion for SCO and $3.7 billion for cotton STAX)
  • Before any Committee amendments costs $940 billion 
  • Saves $39.7B over 10 years 
  • $20B in SNAP
  • $4.8B in conservation
  • $18.6B in commodities and crop insurance
  • $6.4B credit claimed from sequestration
  • Crop Insurance spends $8.9 billion over baseline (but $3.8 billion for SCO and $3.7 billion for cotton STAX)

Commodity Programs

Contains Direct and Counter-Cyclical Payments and ACRE as part of as the safety net for program commodities.

Eliminates Direct and Counter-Cyclical Payments (although CCP’s are essentially renamed as AMP payments) and ACRE.

Eliminates Direct and Counter-Cyclical Payments (although CCP’s are essentially renamed as RLC payments) and ACRE.
See special cotton provisions below.

Counter-cyclical (CCP)s are part of the safety net for program commodities.

Current target prices:
  • Corn, $2.63 per bushel
  • Soybeans, $6.00 per bushel
  • Wheat, $4.17 per bushel
  • Grain sorghum, $2.63 per bushel
  • Rice, $10.50 per hundredweight
  • Peanuts, $495
  • Lentils, $12.81 per hundredweight
  • Small chickpeas, $10.36 per hundredweight
  • Large chickpeas, $12.81 per hundredweight
  • CCPs are eliminated but target prices are essentially renamed Adverse Market Program (AMP) payments.
  • Rates are set at 55% of a 5-year Olympic average for all commodities except peanuts and rice. 
  • Those prices are locked in for the life of the farm bill.
  • Peanuts, $523.77/ton ($28.77 Increase)
  • Rice $13.30/cwt ($2.8 Increase)

CCPs are eliminated but target prices are essentially renamed Price Loss Coverage (PLC) payments.
  • Corn, $3.70 per bushel
  • Soybeans, $8.40 per bushel
  • Wheat, $5.50 per bushel
  • Grain sorghum, $3.95 per bushel
  • Rice, $14.00 per hundredweight ($3.50 Increase)
  • Peanuts $535.00 per ton ($40 Increase)
  • Lentils, $19.97 per hundredweight
  • Small chickpeas, $19.04 per hundredweight
  • Large chickpeas, $21.54 per hundredweight

 

Revenue Program (ACRE)


Establishes the Agricultural Risk Coverage (ARC) program.
  • Payments are made on losses between 78 and 88%.
  • Producer can select coverage at the farm level or the county level.
  • Payments are made on 80% of planted eligible acres for county option
  • Payments are made on 65% for farm level coverage 45% of prevented planting acres.

Establishes the Revenue Loss Coverage (RLC) program.
  • Producers can select coverage at the county level, but not the farm level.
  • Payments are made on planted acres up to total base acres on the farm.
  • Payments are made on 85% of total acres planted up to base
  • 30% of total acres prevented planted up to base.

Program Participation Timeline

 

Producers make a one-time irrevocable election whether to be covered at the individual or county ARC program levels for the life of the bill.

Producers make a one-time irrevocable decision whether to participate in RLC or PLC for the life of the bill.

Marketing Loans (ML) are part of the safety net for program commodities at the following levels:

  • Wheat $2.94/bu.
  • Corn $1.95/bu.
  • Cotton $.52/lb.
  • Rice $6.50/cwt
  • Soybeans $5.00/bu.
  • Peanuts $355/ton

MLs same as current law for all commodities except cotton which is set at a rolling average, but in no case less than $.45/pound or more than $.52/pound. This is due to $.52/lb due to the Brazil cotton case.

MLs same as current law for all commodities except cotton which is set at a rolling average, but in no case less than $.47/pound or more than $.52/pound.

N/A

No updating of bases or yields

Rice producers may update their yields and peanut producers may update their bases and yields.

Eligibility for DPs, ACRE or CCPs requires producers to comply with conservation compliance requirements (sodbuster, swampbuster)

As DPs and ACRE is eliminated, conservation compliance requirements are added for ML’s and ARC

As DPs and ACRE is eliminated, conservation compliance requirements are added for ML’s and ARC

$65,000 payment limit for CCPs

 

ARC payment limit for all commodities except peanuts is $50,000/person and ARC payments for peanuts is $50,000/person

Payment cap of $125,000/person for all commodity program payments except peanuts has a separate $125,000 limit and the direct payments for cotton in 2014 and 2015 are subject to a $40,000 limit.

Cotton and peanut storage payments are available.

Cotton and peanut storage payments are available, but cotton storage payments are reduced by 20% from current law levels.

Cotton and peanut storage payments are available.

If 3-year non-farm AGI exceeds $500,000, program benefits are not allowed.

If 3-year on-farm AGI exceeds $750,000, program benefits are not allowed.

If 3-year AGI for either on-farm or off-farm income exceeds $750,000, program benefits are not allowed.

If 3-year AGI for either on-farm or off-farm income exceeds $950,000, program benefits are not allowed.

If 3-year AGI exceeds $1 million, the individual is not eligible for conservation programs. An exception is made for those having more than 66% of their AGI from on-farm income.

No Change

No Change

No payment limits or means testing on crop insurance

No Change

No Change

Livestock Disaster Programs

Livestock Indemnity Program (LIP) expired in 2011 but did compensate ranchers at a rate of 75% of market value for livestock mortality caused by a disaster.

Reauthorized with mandatory funding for the life of the bill. LIP payment rate reduced from 75 to 65% of the market value of livestock. Payments also made for 2012 and 2013.

Reauthorized with mandatory funding for the life of the bill. LIP payment rate reduced at 75% of the market value of livestock. Payments also made for 2012 and 2013.

Livestock Forage Program (LFP) expired in 2011 but did provide funding for grazing losses due to droughts or fires.

Reauthorized with mandatory funding for the life of the bill. Payments also made for 2012 and 2013.

Reauthorized with mandatory funding for the life of the bill. Payments also made for 2012 and 2013.

Emergency Livestock Assistance Program (ELAP) expired in 2011 but did provide up to $50 million annually to compensate producers for disaster losses not covered under other disaster programs.

Reauthorized with mandatory funding for the life of the bill, but maximum funding is $10 million annually. Payments also made for 2012 and 2013.

Reauthorized with mandatory funding for the life of the bill, but maximum funding is $20 million annually. Payments also made for 2012 and 2013.

Tree Assistance Program (TAP) expired in 2011 but did provide payments to cover 70% of the cost of replanting trees or nursery stock and 50% of the cost of pruning/removal following a natural disaster.

Reauthorized with mandatory funding for the life of the bill, but the payment rate for replanting is reduced from 70 to 65%. Payments also made for 2012 and 2013.

Reauthorized with mandatory funding for the life of the bill, but the payment rate for replanting is reduced from 70 to 65%. Payments also made for 2012 and 2013.

Combined $100,000 per person payment limit for LIP, LFP and ELAP. $100,000 separate payment limit for TAP.

No Change to current law.

Combined $125,000 per person payment limit for LIP, LFP and ELAP. TAP payment cap increased to $125,000 per person.

Dairy Programs

Dairy producers are supported via a price support program, the Milk Income Loss Contract Program and the Dairy Export Incentive Program.

The three current programs are eliminated and replaced by a gross margin insurance program to protect producers between the price of milk and the cost of feed. There is a supply management provision requirement if producers choose to participate in this program.

House concepts identical to Senate provisions on the margin program and supply management provisions.

Conservation Programs

The acreage eligible to be enrolled in the Conservation Reserve Program is capped at 32 million acres.

The acreage eligible to be enrolled in the Conservation Reserve Program is capped at 25 million acres.

The acreage eligible to be enrolled in the Conservation Reserve Program is capped at 24 million acres.

Conservation Stewardship Program

The Conservation Stewardship Program (CSP) is capped at an acreage enrollment of 10.3 million acres per year and a national average rate of $18/acre.

The Conservation Stewardship Program (CSP) is capped at an acreage enrollment of 8.7 million acres per year and a national average rate of $18/acre.

No sod saver provision

On land which has never been tilled, the crop insurance premium subsidy is reduced by 50% for the first four years of planting.

On land which has never been tilled, the crop insurance premium subsidy is reduced by 50% for the first four years of planting.

N/A

Producers wishing to purchase crop insurance with the Federal government subsidies must comply with new conservation compliance provisions (sodbuster/swampbuster). If a producer does not comply, he is still able to purchase crop insurance, but without subsidies. In return, no payment limit, means testing or reductions in crop insurance premium subsidies were included in the bill.

No Change to current law.

Federal Crop Insurance Program

Higher subsidies for enterprise crop insurance coverage is done, but only on a pilot basis.

The authority to subsidize enterprise units is made permanent.

The authority to subsidize enterprise units is made permanent.

No ability to insure separately irrigated and non-irrigated land under an enterprise policy.

Requires enterprise units to be made available by practice (irrigated or non-irrigated).

Requires enterprise units to be made available by practice (irrigated or non-irrigated).

If there are missing yields, the transitional yield (T-yield) is set at 60% of the T yield.

T yields are increased from 60 to 65%.

T yields are increased from 60 to 70%.

Supplemental Coverage Option
(New Program for 2013 Farm Bill)

The Supplemental Coverage Option (SCO) program is established for all program crops except cotton. The program allows producers to purchase a area triggered revenue or yield insurance product to cover the deductible associated with the underlying individual/area insurance policy. An indemnity covers up to 100% of the deductible under a producer’s underlying policy. Coverage cannot exceed 85% of individual yield or 90% of county yield. The premium is subsidized at 65%.

The Supplemental Coverage Option (SCO) program is established for all program crops except cotton. The program allows producers to purchase an area triggered revenue or yield insurance product to cover the deductible associated with the underlying individual/area insurance policy. An indemnity covers up to 90% of the producers expected revenue. Coverage cannot exceed 85% of individual yield or 90% of county yield. The premium is subsidized at 65%.

Federal Cotton Program

Stacked Income Protection Program for Cotton (New Program for 2013 Farm Bill)

The Stacked Income Protection Program (STAX) is established for cotton. The concepts of the program are very much like SCO. Exceptions are (a) the policy is available only on county revenue; (b) a producer may insure 120% of his county revenue rather than 100% under SCO; (c) 80 percent of the premium is subsidized; (d) a harvest price revenue option is available; and (e) the program operates at 70-90% of expected county revenue. No reference price is included.

The Stacked Income Protection Program (STAX) is established for cotton. The concepts of the program are very much like SCO. Exceptions are (a) the policy is available only on county revenue; (b) a producer may insure 120% of his county revenue rather than 100% under SCO; (c) 80 percent of the premium is subsidized; (d) a harvest price revenue option is available; and (e) the program operates at 70-90% of expected county revenue. No reference price is included.

Special Cotton Direct Payment Provision.

N/A

The Committee believes USDA cannot implement the STAX program in a timely manner and therefore continues to provide direct payments to cotton producers --- at 70% of cotton base acres in 2014 and 60% of cotton base acres in 2015. No provision is made to eliminate the direct payments if USDA can indeed implement the STAX program earlier.

 


NEBRASKA FARM BUREAU
5225 South 16th Street, Lincoln, NE 68512
P.O. Box 80299, Lincoln, NE 68501-0299
Telephone
: (800) 742-4016 or (402) 421-4400
Fax
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