By Jim Wiesemeyer
via a special arrangement with Informa Economics, Inc.
Tentative details of some new farm bill
provisions
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The following is a farm bill title
summary of provisions agreed to as of May 7, 2008 -- while the summary
is detailed, it is not totally inclusive of a massive farm bill. Thus,
some of the information provided could change and/or additional information
could be added as it becomes available.
COMMODITIES
-- New revenue-based counter-cyclical program called Average Crop Revenue
Election (ACRE), beginning in 2009.
* Summary: In exchange for a 20 percent reduction in direct payments
and a 30 percent reduction in loan rates, producers will be able to
enroll in this state level revenue counter-cyclical program. ACRE will
provide participating farmers beginning in 2009 a state revenue guarantee
on acres planted equal to 90 percent of the product of a state average
yield factor times the national season average price for the previous
two years for the commodity.
-- Farmers with adjusted gross FARM income (AGI) income over $750,000
would be denied direct payments while non-farmers with an AGI over $500,000
would be barred from ANY FARM program eligibility. Establishes direct
attribution of payments and eliminates the 3-entity rule. A husband and
wife would be able to qualify for their own payment limit. The bill also
includes some expansion of what is defined as farm income. On conservation
programs, there is a $1 million limit on AGI, but for those with more
than two-thirds of their income from farming there would be no conservation
program limit.
-- Prevents deceased farmers from receiving payments.
-- Reduces payment base acres on a farm for land that has been subdivided
and developed into non-farming uses.
-- No payments to farmers with less than 10 base acres; limited resource
and socially disadvantaged farmers exempted.
-- Leaves direct payment rates the same as those in the 2002 Farm Bill
but cuts the direct payment amount by $313 million by reducing the percentage
of base on which a producer can receive the payment from 85 percent of
base acres to 83.3 percent of base acres -- but only for the 2009-11 crop
years (goes back to 85 in 2012 crop year).The $313 million direct
payment cut is for 2009, 2010 and 2011 only, so the budget baseline can
be restored.
-- For the counter-cyclical program in crop year:
* 2008: Target prices are unchanged for all commodities except cotton
target price is reduced from $0.7240 per pound to $0.7125 per pound.
* 2009: Target prices are unchanged for all commodities except cotton
target price is $0.7125 and target prices are established for dry peas
($8.32/cwt), lentils ($12.81/cwt), small chick peas ($10.36/cwt) and
large chick peas ($12.81/cwt).
* 2010: Target prices are increased for wheat ($3.92 to $4.17/bu.),
unchanged for corn ($2.63/bu.), increased for grain sorghum ($2.57 to
$2.63), increased for barley ($2.24 to $2.63), increased for oats ($1.44
to $1.79), increased for soybeans ($5.80 to $6.00). Dry peas, lentils,
small and large chickpea will remain at 2009 levels; cotton remains
at $0.7125; and long grain and medium grain rice at $10.50/cwt.
-- Loan rates for the following crop years:
* 2008: 2007 rates apply
* 2009: Dry peas are reduced to $5.40/cwt from $6.22; lentils are reduced
from $11.72/cwt to $11.28/cwt; and a loan program for large chickpeas
is created at $11.28/cwt
* 2010-2012: Wheat is increased from $2.75 to $2.94/bu.; barley is
increased from $1.85 to $1.95/bu.; oats is increased from $1.33 to $1.39/bu.;
other oilseeds are increased from $9.30/cwt to $10.09/cwt; graded wool
is increased from $1/lb to $1.15/lb; honey is increased from $0.60/lb
to $0.69/lb
* No loan rate changes occur for other commodities for the duration
of the farm bill including: corn, grain sorghum, upland cotton, extra
long staple cotton, rice, and soybeans.
-- Planting flexibility pilot program expanded to 75,000 acres allocated
among seven states.
-- Establishes 30-day rolling average as the basis for calculating repayment
rates for marketing loans FOR GRAINS (not cotton, rice, or peanuts)
and provides authority to the Ag Secretary to adjust repayment rate in
the event of major market disruptions.
-- Clarifies that CCC loans and certificates are subject to 1099 reporting
-- The Department of Agriculture had taken the positions that CCC loans/generic
certificates were actually a “barter” transaction. Because
of that, they were outside of the reporting requirements. Treasury and
IRS did not agree (much like the ongoing concern over the Conservation
Reserve Program, USDA calls it rent, but IRS-Treasury and the courts says
that it is a substitution for farming income and then therefore subject
to self-employment tax). The legislative language clarifies that the loans/certificates
are subject to 1099 reporting.
-- Reduces storage payments for cotton by 10 percent in 2008, 2009, 2010
and 2011 and by 20 percent in 2012. Establishes payment to domestic cotton
mills for usage of cotton at a rate of 4 cents per pound in 2008, 2009,
2010, and 2011 and at 3 cents per pound beginning in 2012.
-- Sugar: There is a three-quarter cent loan rate increase that begins
in 2010, the inclusion of an 85 percent domestic market allocation system
and the sugar-to-ethanol program. Raises the loan rate for sugar a quarter
cent a year for three years (to 18.75 cents for cane sugar and 24 cents
for beet sugar)
Note: The bill also contains
a permanent ag disaster assistance program that would receive $3.8 billion
in funding. This is contained in the tax-related package of the
farm bill, details of which have not been released by the Finance and
Ways and Means panels. The following is from the Senate Finance Committee:
2008 FARM BILL TAX
PACKAGE
The final farm bill conference report will include an important new
incentive for the development of cellulosic biofuels, offset by a
gradual reduction of the current-law ethanol credit. The biofuel incentives
will also help to grow good-paying jobs here at home, by supporting
innovation in green-collar technologies.
Ø
Cellulosic Biofuels: Cellulosic biofuels can be produced
from agricultural waste, wood chips, switch grass and other non-food
feedstocks. With an abundant and diverse source of feedstocks available,
cellulosic biofuels hold tremendous promise as a home-grown alternative
to fossil-based fuels. But because cellulosic biofuels are very expensive
to make, government assistance is needed to spur these fuels to commercial
viability. This package includes a new, temporary production tax credit
for up to $1.01 per gallon, available through December 31, 2012, with
an estimated cost of $403 million over the ten-year budget window.
Ø Biofuels Study: Increasing use of alternative
fuels, while vital to our energy future, can put pressure on other
sectors of the economy. To determine the effect of advancing biofuels
technology, the bill will require a multi-agency study to analyze
current and future biofuels production, and their impact on factors
such as land use, fuel prices, the price of grains and forest products,
etc. The study is intended to be a far-reaching analysis of the impact
of biofuels production.
Ø Ethanol Credit Modification:
The U.S. ethanol industry has grown dramatically in recent
years, far exceeding Congress’ goals for biofuel production.
Now that the ethanol industry has matured, it is appropriate to curb
the tax subsidy provided to ethanol. This package reduces
the 51¢/gallon credit for ethanol by 6 cents in the year after
which the 7.5 billion-gallon threshold established by the 2005 Energy
Policy Act is reached. This proposal is similar to a provision
in the December 2007 Clean Renewable Energy and Conservation Tax Act,
and is estimated to raise $1.203 billion over the next 10 years –
enabling tax incentives for additional renewable energy strategies.
Other energy-related measures in the tax package are reforms
to offset costs. They include an extension of the tariff on
imported ethanol through 2010, the exclusion of denaturant
from the alcohol fuels credit, and a duty drawback on certain imported
ethanol.
A number of the tax relief provisions include
are outlined below. In addition to those listed here, additional provisions
promote homegrown energy independence, endangered species recovery,
and land conservation.
Ø Help for Farmers Starting Out: “Aggie
Bonds” are tax-exempt bonds that provide low-interest loans
for first-time ranchers and farmers. The Aggie Bond program has not
been updated in 26 years – in which time farm costs have risen
exponentially. The bill will increase the loan limit for an individual
beginning farmer from $250,000 to $450,000, and index the limit amount
for inflation. The proposal also allows more beginning farmers –
including those with a previous stake in family farm land –
to qualify for Aggie Bonds. This provision costs $20 million over
ten years.
Ø Tax Relief for Retired and Disabled
Farmers: Retired and disabled farmers frequently live on
small incomes. Many participate in conservation programs to preserve
their land while they live there, and the Conservation Reserve Program
provides payments to landowners who rest environmentally sensitive
land and engage in certain conservation practices. The bill will keep
CRP payments to retired or disabled individuals from reducing Social
Security or disability payments, and also exempt the income from self-employment
taxes. The cost is $192 million over ten years.
Ø Support for Agricultural Businesses: Agricultural
chemicals and pesticides purchased for legitimate uses are increasingly
vulnerable to theft because of the drug trade and national security
threats. Some agricultural businesses may pay tens of thousands of
dollars on new measures to secure their storage sites. This proposal
will help agricultural businesses afford the increasing expenses of
protecting agricultural chemicals and pesticides. The bill will provide
a credit for 30 percent of costs for the protection of agricultural
chemicals or pesticides, with a $2 million annual limit and a per
facility limitation of $100,000. The cost is $14 million over ten
years.
Ø Equal tax treatment for equine livestock:
The current depreciation schedule for the cost of a race
horse does not recognize that most horses held for sporting purposes
end their sporting careers by age four. Right now, a sporting horse
bought at less than two years old and trained for racing must be depreciated
over seven years. Racing horses bought at more than two years old
can be depreciated over three years. The bill creates a uniform depreciation
period of three years for all race horses. The provision costs an
estimated $126 million over ten years.
Ø Flexibility
for Landowners with Water Rights: Some state water rules
keep farmers and ranchers from selling their land when they need or
want to. The bill will allow the tax-free exchange of stock that represents
a holding of water rights, just as allowed for real property under
Section 1031 of the tax code. The cost is $2 million over ten years.
Ø Kansas Tornado Disaster Relief: Farm
country is often tornado country, and this proposal provides timely,
temporary tax relief to the victims of tornados and storms that hit
the Greensburg, Kansas area. Temporary assistance including increased
ability to deduct personal losses, increased business expense deductions,
and help for affected businesses that continued to pay their employees
after the disaster struck are available only to individuals and businesses
in the presidential disaster declaration area. The cost is $60 million
over ten years.
The final farm bill conference report will include important
reforms in the tax package as well as in spending provisions.
Along with a slight decrease in the ethanol tax credit, these tax
reforms add up to almost $2 billion and fully offset a package of
vital tax relief for American agriculture. They will reduce the
ability to abuse farming businesses to generate losses, help farmers
ensure their own retirement security, and ensure that agricultural
producers and other taxpayers properly report income and pay their
fair share. These reforms are right for farm country – and
right for the farm bill. Key tax reforms include:
Ø Preventing the use of farm losses as a tax shelter:
Some taxpayers can use complex farming operations to reduce
income subject to tax. This proposal addresses this problem by limiting
the amount of farming losses that a taxpayer may use to reduce other
non-farming business income to the greater of $300,000 or the net
farm income for the previous five years if the taxpayer receives
Farm Bill commodity payments. This can save $479 million over the
next ten years.
Ø Allowing farmers to pay additional self-employment
taxes to qualify for Social Security: Qualifying for Social
Security benefits can be difficult for self-employed farmers and
ranchers because they do not always have a steady income stream.
When there are no earnings, no Social Security taxes are paid and
no quarters are accrued. Through farm optional methods, farmers
and ranchers may voluntarily pay Social Security taxes in order
to earn quarters so that they can receive Social Security benefits.
However, the payment thresholds are outdated and no longer allow
farmers and ranchers to earn enough Social Security credits per
year. This proposal modifies the farm optional method so that farmers
and ranchers may pay more in optional self-employment taxes so they
may be eligible to secure Social Security benefits. This can raise
$105 million over the next ten years.
Ø Ensuring that farmers know their tax obligations:
Income that is subject to information reporting is less
likely to be underreported to the IRS, a problem that frequently
leaves legally owed taxes unpaid. This provision requires the Commodity
Credit Corporation to always provide the IRS and the farmer with
information returns showing the amount of market gain the farmer
realizes when he or she repays a CCC market assistance loan.
Additional reforms offsetting farm tax relief include an exclusion
of denaturant from eligibility for the alcohol fuel credit, an extended
tariff on imported ethanol, and a duty drawback on certain imported
ethanol. |
DAIRY
-- Modifies the milk price support program to directly establish the
purchase prices for butter, powder and cheese (inventory control provisions
included). This new mechanism has the potential to reduce the contribution
of this program to amber box limitations under the World Trade Organization
(WTO) agreements (savings of $14 million over 10 years).
* Extends authorization for forward-contracting by dairy processors,
extends and expands the subsidy via the Milk Income Loss Contract Program
(cost over baseline is $410 million over 10 years), and increases the
frequency of dairy price reporting through the development of an electronic
reporting system. The MILC program details, according to sources: the
trigger price is $16.94/cwt and it looks like the maximum number of cows
qualifying for the program would increase from 120 to about 165; the percentage
that payments are based on is increased from 34 percent to 45 percent
-- FSA determines the per hundredweight payment rate for the applicable
month by subtracting the Boston Class I price for that month from the
$16.94/cwt baseline, and multiplying the difference by 45 percent under
the new farm bill language (it has been 34 percent); the feed stock increase
is based on hay, corn and soybeans.
* The Dairy Promotion and Research Program will be amended to include
Alaska, Hawaii and Puerto Rico within the domestic program to allow for
implementation of the import assessment authorized in the 2002 Farm Bill.
The assessment for imported dairy products will be reduced from $0.15
to $0.75/cwt.
CONSERVATION
-- Conservation Reserve Program (CRP)
* Acreage is reduced from a maximum of 39.2 million acres to a maximum
of 32 million acres. CRP acreage reduction begins in FY10 and is not
immediate
* Wetland Pilot Program is modified to allow catfish ponds; and flooded
farmland are now allowed in the prairie pothole region.
* Land enrolled in the CREP and Continuous Enrollment can be exempted
from county acreage caps if the country government concurs.
* New cost-share payments for improving wildlife benefits on CRP lands
with trees.
* New transition assistance to beginning and socially disadvantaged
farmers.
-- Wetland Reserve Program
* $1.3 billion authorized to enroll new acreage
* Language to clarify eligibility to producers
* Clarified treatment of pay outs
-- Environmental Quality Incentives Program (EQIP)
* $2.4 billion in additional funds to help producers meet regulatory
burdens.
* Non-industrial private forest land clarified as eligible land.
-- Conservation Stewardship Program (CSP)
* $1.1 billion in additional funds to run a completely revamped CSP.
* Complete revamp of program including changes in land eligibility,
producer eligibility, and practices eligible for payments.
-- Chesapeake Bay Program for Sediment Control
* Almost $400 million to aid producers in reducing run-off into the
Bay, improve water quality, and restore wildlife in the Chesapeake Bay.
-- Farmland Protection Program
* Over $500 million in additional money (doubles current funding) to
provide matching funds to help buy the development rights to keep farm
land in agriculture uses.
* Complete change in program to make it more flexible for participants.
-- Agriculture Water Enhancement Program
* Authorizes this new program to deal with water quantity and quality
issues on a regional basis.
* Allows producers to come together with partners to leverage funds
and attack problems on a regional basis.
-- Grassland Reserve Program
* Improves and adds $300 million (1.2 million acres) to help preserve
grasslands.
-- Wildlife Habitat Incentives Program
* Clarifies program eligibility to producers. Eligibility is clarified
for private agricultural and forestlands, not ag producers
-- Adjusted Gross Income (AGI) and Payment Limits
* New AGI and payment limits for programs.
TRADE
-- Establishes a consultative group to combat child and labor in the
production of U.S. commodity imports.
-- Establishes Softwood Lumber Importer Declaration Program to require
importers of softwood lumber to "declare" they are importing
lumber consistent with international agreements, primarily the Softwood
Lumber Agreement between the U.S. and Canada. Applies civil penalties
to importers for knowingly violating the law.
-- Repeals the Export Enhancement Program.
-- Repeals the GSM-103 export credit guarantee program as well as the
1 percent fee cap on the GSM-102 program. Funding for GSM-102 set at $40
million in mandatory spending and authorized to make at least $4 billion
in credit guarantees available each year.
-- Market Access Program funding is kept at $200 million in mandatory
spending per year.
-- Technical assistance for specialty crop funding is ramped up to $9
million in 2012 (total funding: $37 million over 5 years).
-- Makes a minor change to the "buy American" provision in
the Emerging Markets and Facilities Loan Guarantee Program to allow a
waiver of that provision if such goods are not available.
-- Authorizes $60 million in appropriations for Germplasm Conservation.
FOOD AID
-- Sets aside no less than $450 million of food aid funding for development
programs; contains a limited exception allowing the president to use less
than $450 million in dire emergencies.
-- Establishes a pilot program for purchasing food aid in developing
countries, using $60 million in mandatory spending (until expended).
-- Increases the amount of food aid funding which can be used for administrative
costs from 10 percent to 13 percent of the food aid budget.
-- Expands the authorization for appropriations to $2.5 billion per year;
previously authorized as "such sums as necessary."
-- Modifies the management and trigger mechanism for the Bill Emerson
Humanitarian Trust to encourage its use in food aid emergencies and to
increase the Trust's value when practicable.
-- The McGovern-Dole International Food for Education Program will get
a one time infusion of $84 million.
-- Expands and funds ($22 million of the food aid budget per year) reporting
requirements by USAID to provide greater oversight of food aid programs.
-- Expands funding to $10 million per year for pre-positioning of U.S.
food aid overseas and for developing fortified commodities for food aid.
-- Removes market development for U.S. products as an objective of food
aid programs in PL-480.
NUTRITION
-- Food Stamps
* Standard Deduction-frozen since 1996, this income deduction for families
of 3 or fewer (more than half the beneficiaries) will increase from
$134 to $144 in FY09 and then index. $5.42 billion
* Minimum Benefit-unchanged since 1979, the minimum benefit will now
be tied to the cost of food, allowing it to move from static $10 to
approximately $14 in FY09. $290 million
* Dependent care deduction -- Administration's request to deduct child
care from income for eligibility. $500 million
* Asset Limits--frozen at the current level since 1986, will now be
indexed. $168 million
* Retirement accounts -- Administration's request to exclude retirement
accounts from assets for eligibility. $991 million
* Education accounts -- Administration's request to exclude approved
education accounts from assets for eligibility. $17 million
* Simplified reporting—the 2002 farm bill gave states the option
of requiring updating of only income data changes during a given 6 month
period for families, simplifying the otherwise-monthly paperwork. However,
this provision was not extended to certain other categories of households,
notably the elderly and disabled. This provision will lessen the paperwork
for states and make sensible simplifications to households with fixed
incomes. $285 million
* Transitional food stamps -- The 2002 farm bill supported families
moving from federally funded cash assistance programs by permitting
up to 5 extra months of food stamp benefits. This state option has been
highly successful. This provision permits similar benefits for those
transitioning from state cash assistance programs. $138 million
-- The Emergency Food Assistance Program (TEFAP): the increase to TEFAP
is significant, from $140M per year to $250M per year beginning in FY2009
to support food banks nationwide. However, food banks and pantries are
critically short of foodstuffs now. This bill will provide an immediate
infusion of $50M in 2008. $1.25 billion
-- Fresh Fruit and Vegetable SNACK Program: This program will focus
on elementary schools with the largest number of low income students.
$1.02 billion
-- Total Spending: $10.361 billion above baseline.
CREDIT
-- Creates a conservation loan guarantee program allowing the Secretary
to guarantee up to 75 percent of a qualified conservation project that
addresses soil, water and other related resources.
-- Increases the ownership loan and operating loan limit from $200,000
to $300,000 each. Also increases the authorization levels for FSA loan
programs and increases the set-aside of loan funds for beginning farmers
and ranchers.
-- Down Payment Loan Program and expands the beginning farmer and rancher
land sales pilot program and makes eligible socially disadvantaged farmers.
-- Establishes a Beginning Farmer and Rancher Development Account pilot
program to assist eligible producers in establishing a pattern of savings
with a matching savings account.
-- Suspends the 15-year limitation on borrower eligibility for operating
loans until December 31, 2010. Requires the Secretary to establish regulations
that would assist borrowers in transitioning to other sources of credit.
-- Prohibits the Secretary from competitive source activity, including
USDA support personnel, relating to rural development or farm loan programs.
-- Allows equine ranchers, who produce horses for agriculture purposes,
to be eligible for FSA emergency loans. Producers must be primarily engaged
in agriculture, have an operation no larger than a family farm, and cannot
be eligible for credit from another lender.
-- Amends the FCA by authorizing the board of a bank for cooperatives
to determine the terms and conditions for the issuance and transfer of
bank voting stock, allows rural utility loans (loans, or interest in a
loan, for electric and telephone facilities) to be considered "qualified
loans" and equalizes lending authorities among FCS associations in
Alabama, Mississippi, and Louisiana.
RURAL DEVELOPMENT
-- Changes the definition of "rural" to ensure dollars go to
the rural areas with the greatest need while reauthorizing successful
programs that provide vital utility, healthcare, and emergency service
needs.
-- Reforms the Rural Broadband Program by creating incentives to increase
access to high-speed internet in rural, unserved areas. Changes to this
program were made to address concerns that loans were being made to companies
to enter markets already receiving service or were not considered rural
by nature.
-- Increases the authorization of the Rural Water and Wastewater Circuit
Rider Program to $25 million for each of the fiscal years 2008 through
2012.
-- Provides for an extension of the authorization of grants to finance
water well systems in rural areas and increases the cap on the amount
that can be expended on each well from $8,000 to $11,000.
-- Rural Cooperative Development Grants
* Provides for the establishment of a national Appropriate Technology
Transfer for Rural Areas (ATTRA) program to assist agricultural producers
seeking information to reduce their input costs; conserve energy costs;
diversify operations through new energy crops and energy generation
facilities; and expand markets for their agricultural commodities through
the use of sustainable farming practices.
-- Rural Entrepreneur and Microloan Assistance Program
* Provides $15 million in mandatory funding for the establishment of
a rural entrepreneurship and microenterprise grant and loan program.
Grants may be made to qualified organizations to provide training, operations
support or rural capacity-building services to qualified organizations
to assist them in developing microenterprise training, technical assistance,
market development assistance, and other related services.
-- Extends the authorization for Historic Barn Preservation for each
of the fiscal years 2008 through 2012 and provides that the Secretary,
in making grants, is to give the highest priority to funding projects
that identify, document, and conduct research on historic barns and develop
and evaluate appropriate techniques or best practices for protecting historic
barns.
-- Reauthorizes the Delta Regional Authority and Northern Great Plains
* Provides funding for programs and projects designed to serve the
needs of distressed counties and isolated areas of distress.
-- Regional Rural Collaborative Investment Program to provide rural regions
with a flexible investment vehicle to develop and implement locally prioritized,
comprehensive strategies for achieving regional competitiveness, innovation
and prosperity.
-- Extends the Rural Business Investment Program authorization through
2012.
-- Provides $120 million in mandatory funds for applications that are
pending for water systems, waste disposal systems and emergency community
water assistance grants.
-- Reauthorizes the expansion of 911 areas which authorizes the Secretary
to make telephone loans to state or local governments, Indian tribes,
or other public entities for the expansion of rural 911 access and integrated
emergency communication in rural areas.
-- Amends the Rural Electrification Act by broadening the definition
of rural for rural electrification cooperative loans; authorizes the Secretary
to extend loans to energy efficiency programs; allows borrowers to defer
payment of principal and interest on any direct loan to enable the borrower
to make loans to residential, commercial, and industrial consumers to
install energy efficient equipment; and directs the Secretary to conduct
a study on the capacity, availability, and cost of electricity in rural
areas.
-- Reauthorizes telemedicine and distance learning services in rural
areas.
-- Amends Interest Rates for Water and Waste Disposal to ensure that
interest rates for intermediate and poverty rate loans are tied to the
current market rate.
-- Authorizes the Secretary of Housing and Urban Development to provide
financial assistance to the Housing Assistance Council for the purpose
of supporting community-based housing development organizations' community
development and affordable housing projects and programs in rural areas.
RESEARCH
-- Combines resources and staff from various research agencies into a
single office within the office of the Undersecretary. This new office
will provide an oversight and coordination mechanism intended to streamline
administration, avoid unnecessary duplication, and improve accountability
and constituent input.
-- Provision replaces the existing Cooperative State Research, Education,
and Extension Service with a new National Institute of Food and Agriculture.
The new institute will be charged with managing USDA's portfolio of extramural
research, extension, and education programs and will seek to expand the
emphasis on competitively awarded, scientifically meritorious research
grants.
-- Includes the specialty Crops Research Initiative ($230 million over
5 years) and the Organic Research and Extension Initiative ($78 million
over 5 years).
-- Reauthorizes Sun Grants to promote research, extension, and education
related to biobased energy and product technologies and extends current
authorization for appropriations at a level of $75 million through 2012.
-- $75 million for the Beginning Farmer and Rancher Development Program.
FORESTRY
-- Healthy Forests Reserve Program (working forests easement program)
* Adds permanent easements as an option and provides mandatory funding
at $9.75 million/year for FY09-12.
-- Emergency Forest Restoration Program
* Creates new program to help family forest owners with restoration
following disasters, authorizes "such sums as necessary."
Continues the success of a similar program following Hurricane Rita
-- Illegal Logging Controls
* Amends the Lacey Act (currently applies to endangered fish, wildlife,
and plants) to prohibit the trade of illegally harvested forest products.
* Applies criminal and civil penalties to individuals who possess or
sell forest products that were taken illegally, under either domestic
or international laws, and allows seizure of illegally harvested forest
products.
-- U.S. Forest Service Timber Contracts
* Allows the U.S. Forest Service to extend, modify, or cancel certain
timber contracts on National Forests in poor timber market conditions.
Score of $6 million over 10 years.
-- Tribal Access to National Forests
* Gives U.S. Forest Service new authorities to grant tribes access
to National Forests for reburying remains or for cultural ceremonies.
-- Community Forest Program
* New program to provide funds to communities to acquire forest land
for community purposes. Authorizes "such sums as necessary."
-- National Forest Boundary Adjustments and Land Conveyances
* Adjusts boundary and authorizes a 680 acre land sale or exchange
in the Green Mountain National Forest in Vermont.
* Conveys 1,000 acres in an Experimental Range in New Mexico and a
6 acre cemetery in a National Forest in Virginia.
ENERGY
-- Reauthorizes the federal procurement of biobased products program.
-- $320 million in mandatory funding for loan guarantees to assist in
the development and construction of commercial, advanced biofuel production
plants.
-- Reauthorizes and provides $250 million in mandatory funds for the
Rural Energy for America Program (REAP) which provides loans, loan guarantees
and grants for producers to purchase and install on-the-farm renewable
energy systems.
-- $118 million in mandatory funding for continued research of cellulosic
ethanol by extending the Biomass Research and Development Act. Also establishes
a Forest Bioenergy Program to address the use of woody biomass for energy
production.
-- Makes adjustments to the CCC Bioenergy Program to provide incentives
for increased use of agriculture commodities (except corn) and agriculture
and forestry waste for biofuels. Provides $300 million in mandatory funding
over the life of the bill.
-- Creates a Biomass Crop Assistance Program (BCAP) which provides incentives
for producers to establish and grow cellulosic energy crops. The program
has $70 million in mandatory money for 2009-12. $70 million is the CBO
score for the program – not a set amount of funding for the program
-- The Feedstock Flexibility Program for Bioenergy Producers requires
the Secretary to purchase sugar for bioenergy production to avoid forfeitures
of sugar to the Commodity Credit Corporation, and to ensure that the sugar
loan program is operated at not cost to the federal government.
-- $5 million in mandatory funding for the reauthorization of the biodiesel
fuel education program.
HORTICULTURE AND ORGANIC AGRICULTURE
-- New investment of mandatory funding: $1.308 billion over 10 years.
The allocation of funds under this title is as follows:
* Specialty Crop block Grants: $466 million
* Pest and Disease Detection & Control: $377 million
* Technical Assistance for Specialty Crops: $59 million
* Farmers Market Promotion Program: $33 million
* Organic Certification Cost Share: $22 million
* National Clean Plant Network: $20 million
* Assistance for asparagus producers: $15 million
* Organic Agriculture Market Data Initiative: $5 million
* Healthy Urban Food Enterprise Development: $3 million
-- The remaining balance of the funding is allocated in the research
title to provide funding for the Specialty Crops Research Initiative ($230
million over 5 years) and the Organic Research and Extension Initiative
($78 million over 5 years).
LIVESTOCK
-- Allows for interstate shipment of state inspection meat products.
-- Establishes mandatory, continuous USDA inspection for domestic and
imported catfish and a voluntary fee-based grading program for catfish.
-- Technical corrections to he mandatory country-of-origin labeling law
that is set to be implemented on Sept. 30, 20089.
* Language reduces the law's adverse impact and will smooth transition
for producers, packers, processors and retailers. For meat, it creates
four labeling categories that more closely represent industry processing
practices, reduces regulatory burdens, and establishes a grandfather
date of July 15, 2008 to reduce disruptions during transition to the
mandatory labeling program.
-- Creates a reporting requirement for the Grain Inspection Packers and
Stockyards Administration's investigation and enforcement activities.
While a recent Office of Inspector General report has led to significant
improvements in this agency, this report will assist congressional oversight
and improve public confidence
-- Addresses the use of mandatory arbitration in poultry and livestock
production contracts by allowing producers, prior to entering into the
contract, to decline to be bound by such a clause.
-- Directs the Secretary to promulgate regulations to establish criteria
to determine violations of the Packers and Stockyards Act with respect
to undue or unreasonable preferences of advantages, contract suspension
notification, additional capital investments, and remedy of breach of
contract.
-- Creates a new authority under the Federal Meat Inspection Act and
the Poultry Products Inspection Act requiring that inspected establishments
immediately notify the Secretary if they believe, or have reason to believe,
that any misbranded or adulterated meat or food product has entered commerce.
-- Requires federally inspected establishments to prepare and maintain
a recall plan.
-- Animal welfare provisions include:
* To increase protection of pets, the Secretary shall review a report
required of the National Institutes of Health and make a recommendation
on the disposition of Class B dealers.
* In addition to increases in penalties under the Animal Welfare Act,
the agreement also specifically amends the Act to strengthen penalties
for animal fighting, including dogs.
* No dogs shall be imported into the U.S. for purposes of resale unless
the Secretary of Agriculture determines the dog is in good health; has
received all necessary vaccinations; and is at least 6 months of age.
CROP INSURANCE
-- Reduces the administrative and operating (A&O) reimbursement
by 2.3 percentage points with a 50 percent "snapback" provision
if a state's loss ratio exceeds 1.2.
-- Reduces statutory loss ratio to 1.0.
-- Raises catastrophic administrative fee to $300 per crop per county.
-- Establishes the billing date for crop insurance as August 15 beginning
in 2012.
-- Establishes the payment date for A&O expenses as Oct. 1 in 2012.
-- Requires USDA to renegotiate the Standard Reinsurance Agreement by
the beginning of the 2011 reinsurance year and every five years thereafter.
-- Prohibits, at the discretion of the governor, crop insurance on native
sod for five years in states that are part of the Prairie Pothole National
Priority Area.
COMMODITY FUTURES
-- Establishes CFTC jurisdiction over agreements, contracts and transactions
in retail foreign currency to address the results of the "Zelner"
case which limited CFTC's jurisdiction when the court found the instruments
in question were not futures contracts. The bill addresses this by declaring
the CFTC has jurisdiction over these instruments without declaring them
futures contracts.
-- Establishes a $20 million capital requirement for dealers engaging
in retail forex transactions, subject to a one-year phase-in period.
-- Establishes a new category of registrant: a Retail Foreign Exchange
Dealer.
-- Re-establishes CFTC anti-fraud authority over principal-to-principal
transactions.
-- Requires the CFTC and SEC to take action of portfolio margining for
security options and security futures products by June 30, 2009.
-- Establishes a framework for the CFTC to make a determination that
an otherwise exempt contract could be determined to perform significant
price discovery and therefore become subject to additional regulatory
requirements.
MISCELLANEOUS
-- Creates the Northern border Economic Development Commission, the Southeast
Crescent Regional Commission, and the Southwest Border Regional Commission.
* Provides funding for programs and projects designed to serve the
needs of distressed counties.
SOCIALLY DISADVANTAGED FARMERS AND RANCHERS
-- Amends section 2501 of the Food, Agriculture, Conservation, and Trade
Act (FACT Act) to specify that the 2501 technical and outreach assistance
program is to be used to enhance the coordination, outreach, technical
assistance, and education efforts authorized under USDA programs. Mandatory
funding: $75 million total.
-- Requires the Secretary to annually compile, for each county and state
in the United States, program application and participation rate data
regarding socially disadvantaged farmers and ranchers.
-- The conference agreement establishes a new Office of Advocacy and
Outreach, the purpose of which is to improve the viability and profitability
of small farms and ranches, beginning farmers or ranchers, and socially
disadvantaged farmers and ranchers, as well as to improve access to programs
of the Department of Agriculture.
-- Creates a program to make grants to nonprofit organizations to assist
agricultural employers and farm workers with services that help improve
the quality of the agricultural labor force through job training, short-term
housing, workplace literacy and ESL training, and health and safety instruction
to farm workers who are citizens or otherwise legally present in the U.S
-- Provides that Pigford claimants late filers who have not had their
cases determined on the merits may, in a civil action, obtain such a determination.
Mandatory funding: $100 million total.
AG SECURITY
-- Authorizes appropriations for biosecurity capacity building, communications,
planning, preparedness and response.
-- Creates an Office of Homeland Security within USDA to integrate and
coordinate inter-agency emergency response plans.
-- Authorizes creation of a veterinary stockpile, plant disease recovery
system, and research and development of agricultural countermeasures.
-- Mandates regular activity reports and financial audits of agricultural
port inspection activities -- does not transfer agricultural inspectors
back to USDA.
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