AFBF Comparison of Senate and House Committee‐passed Farm Bills May 16, 2013 CURRENT LAW Cost $979.7 billion over the 10 years before sequester reductions of $6.4 billion
Contains Direct and Counter‐Cyclical Payments and ACRE as part of as the safety net for program commodities 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 N/A
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Counter‐cyclical (CCP)s are part of the safety net for program commodities. (Target prices) Current target prices: Wheat, $4.17 per bushel. Corn, $2.63 per bushel. Grain sorghum, $2.63 per bushel. Barley, $2.63 per bushel.
SENATE AG COMMITTEE (S. 954) Reported out of Committee 15‐5 Costs $955 Billion over 10 years
HOUSE AG COMMITTEE (HR 1947) Reported out of Committee 36‐10 Before any Committee amendments costs $940 billion
Saves $23 Billion over 10 years which is $4B in SNAP, $17B in commodities and $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) Eliminates Direct and Counter‐Cyclical Payments (although CCP’s are essentially renamed as AMP payments) and ACRE 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.
Saves $39.7B over 10 years which is $20B in SNAP, $4.8B in conservation, and $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) Eliminates Direct and Counter‐Cyclical Payments (although CCP’s are essentially renamed as RLC payments) and ACRE. See special cotton provisions below. 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.
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, 65% for individual election and 45% of prevented planting acres. 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. 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. The peanut rate is fixed at $523.77/ton and rice at $13.30/cwt for the life of the bill.
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 and 30% of total acres prevented planted up to base.
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Producers make a one‐time irrevocable decision whether to participate in RLC or PLC for the life of the bill.
CCPs are eliminated but target prices are essentially renamed Price Loss Coverage (PLC) payments. Wheat, $5.50 per bushel. Corn, $3.70 per bushel. Grain sorghum, $3.95 per bushel. Barley, $4.95 per bushel. Oats, $2.40 per bushel.