House Ag Committee Releases Draft Farm Bill; Mark Up Set for Next Week
On Thursday, House Agriculture Committee Chairman Frank Lucas (R-Okla.) and ranking member Collin Peterson (D-Minn.) released a draft of the 2012 farm bill, titled the Federal Agriculture Reform and Risk Management Act (FARRM). The House Agriculture Committee will meet next Wednesday, July 11th, to consider the legislation; amendments to the bill must be filed by COB Monday, July 9.
FARRM would cut more than $35 billion in spending over the next decade, which is $12 billion or so above the cuts contained in the Senate-passed farm bill. Like the Senate bill, FARRM would end direct payments, the countercyclical program and ACRE; these would be replaced by two new programs, Price Loss Coverage and Revenue Loss Coverage. FARRM also includes provisions from the Dairy Security Act (DSA)—a carefully crafted and comprehensive approach to reforming dairy policy.
FARRM also consolidates or repeals more than 100 programs, and consolidates 23 conservation programs to 13. Changes were also made to the Supplemental Nutrition Assistance Program (SNAP) that would cut about $16 billion from the program over the next decade.
On issues and programs of special interest to farmer cooperatives, the Market Access Program (MAP) was funded at the same levels as the current farm bill, $200 million annually. The Value Added Producer Grant Program was given $50 million in mandatory funding to be spent until expended. Finally, current funding of the Fresh Fruit & Vegetable Program in schools remains in place, but the program has been changed to allow schools to purchase all forms of fruits and vegetables (including frozen, canned and dried), not just fresh.
Finally, included in FARRM is H.R. 872, legislation that would clarify pesticide permitting requirements to put an end to the burdensome regulations caused by the Sixth Circuit Court of Appeals decision in National Cotton Council v. EPA.
A number of amendments are expected to be filed on the bill before the Monday deadline. NCFC will continue to monitor amendments as they are offered.
Representative Bob Goodlatte (R-Va.) is expected to offer an amendment that would dramatically alter the dairy reform provisions. While the amendment has not been officially filed, the goal is to unravel the DSA program.
Another amendment likely to be introduced by Representative Goodlatte would make changes detrimental to the sugar program. In a statement Thursday, NCFC expressed our strong opposition to the potential sugar amendment:
“Any House amendment similar to the Toomey amendment that we saw in the Senate would undermine a program that costs taxpayers nothing and would threaten the jobs thousands of Americans across the country,” said Chuck Conner, president & CEO of NCFC. “The benefits of ending the sugar program would not go to U.S. consumers but rather to our foreign competitors, who are heavily subsidized.”
Two-year Highway Bill Passed, Includes Agriculture Hours of Service Exemption
Late last week, both the House and Senate approved the conference report on conference report on the Moving Ahead for Progress in the 21st Century Act (MAP–21). The 2-year reauthorization of the Surface Transportation bill includes a clarification of regulations critical to the agriculture industry’s ability to distribute farm supplies in a timely manner, especially during the busy planting and harvest seasons.
The provisions included will resolve questions regarding the applicability of the agricultural hours of service (HOS) exemption to all farm supplies, including movements from distribution point to retailers as well as across state lines where both states have adopted the exemption.
The HOS exemption had come into question in 2009 when the Federal Motor Carrier Safety Administration (FMCSA) issued an interpretation of the regulations that resulted in transportation restrictions for certain farm supplies. The legislation amends aspects of the Motor Carrier Safety Improvement Act, which served as the basis for FMCSA’s 2009 interpretation, to clarify the applicability of exemptions for agricultural products.
CoBank Announces Charitable Matching Fund for Co-ops to Celebrate IYC
Last week, CoBank announced the creation of a new, $3 million charitable fund to help magnify the charitable contributions that co-ops across the country will make in the next six months. Under CoBank’s new “Sharing Success” program, the bank will match contributions by its cooperative customers to nonprofit organizations of their choice. Contributions made during the remainder of 2012 will be matched dollar-for-dollar, from a minimum of $1,000 to a maximum of $5,000.
The program is meant to coincide with the United Nations’ celebration of 2012 as the International Year of Cooperatives. Additional information can be found online at www.cobank.com/sharingsuccess.
Upcoming Events:
NCFC Meetings
- September 25-26, 2012—NCFC Executive Council Meeting—Liaison Hotel, Washington, D.C.
- October 4-5, 2012—NCFC LTA Subcommittee Chair & Vice Chair Meeting—Hyatt Regency Mission Bay, San Diego, Calif.
- November 14-16, 2012—NCFC Government Affairs Committee Meeting—Vintner’s Inn, Santa Rosa, Calif.
- February 6-8, 2013—NCFC 84th Annual Meeting—Westin Kierland, Scottsdale, Ariz.