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
N/A
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.
1
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.
AFBF Comparison of Senate and House Committee-passed Farm Bills
May 16, 2013
Oats, $1.79 per bushel.
Upland cotton, $0.7125 per pound.
Long grain rice, $10.50 per
hundredweight.
Medium grain rice, $10.50 per
hundredweight.
Soybeans, $6.00 per bushel.
Other oilseeds, $12.68 per
hundredweight.
Dry peas, $8.32 per hundredweight.
Lentils, $12.81 per hundredweight.
Small chickpeas, $10.36 per
hundredweight.
Large chickpeas, $12.81 per
hundredweight
Long grain rice, $14.00 per
hundredweight.
Medium grain rice, $14.00 per
hundredweight.
Soybeans, $8.40 per bushel.
Other oilseeds, $20.15 per
hundredweight.
Peanuts $535.00 per ton.
Dry peas, $11.00 per hundredweight.
Lentils, $19.97 per hundredweight.
Small chickpeas, $19.04 per
hundredweight.
Large chickpeas, $21.54 per
hundredweight.
N/A
No updating of bases or yields
Eligibility for DPs, ACRE or CCPs
requires producers to comply with
conservation compliance
requirements (sodbuster,
swampbuster)
$65,000 payment limit for CCPs
As DPs and ACRE is eliminated,
conservation compliance
requirements are added for ML’s and
ARC
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.
If 3-year AGI for either on-farm or offfarm income exceeds $750,000,
program benefits are not allowed .
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 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 onfarm income.
No payment limits or means testing
ARC payment limit for all commodities
except peanuts is $50,000/person and
ARC payments for peanuts is
$50,000/person
Rice producers may update their yields
and peanut producers may update their
bases and yields.
As DPs and ACRE is eliminated,
conservation compliance requirements
are added for ML’s and ARC
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.
If 3-year AGI for either on-farm or offfarm income exceeds $950,000, program
benefits are not allowed
No Change
No Change
No Change
No Change
2
AFBF Comparison of Senate and House Committee-passed Farm Bills
May 16, 2013
on crop insurance
No payment limit on MLs
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
Livestock Forage Program (LFP)
expired in 2011 but did provide
funding for grazing losses due to
droughts or fires
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.
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.
Combined $100,000 per person
payment limit for LIP, LFP and ELAP.
$100,000 separate payment limit for
TAP.
Dairy producers are supported via a
price support program, the Milk
Income Loss Contract Program and
the Dairy Export Incentive Program.
The sugar program is no net cost
program.
The acreage eligible to be enrolled in
the Conservation Reserve Program is
capped at 32 million acres.
No sodsaver provision
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. 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.
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, 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.
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.
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.
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.
No change to current law except a
date change for USDA to make
decisions on imports.
The acreage eligible to be enrolled in
the Conservation Reserve Program is
capped at 25 million acres.
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.
On land which has never been tilled,
House concepts identical to Senate
provisions on the margin program and
supply management provisions.
3
No changes to current law except a date
change for USDA to make decisions on
imports.
The acreage eligible to be enrolled in the
Conservation Reserve Program is capped
at 24 million acres.
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.
On land which has never been tilled, the
AFBF Comparison of Senate and House Committee-passed Farm Bills
May 16, 2013
N/A
the crop insurance premium subsidy is
reduced by 50% for the first four years
of planting.
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.
crop insurance premium subsidy is
reduced by 50% for the first four years of
planting.
No Change to current law.
Makes $72.5 million in mandatory
funding for the Specialty Crop Block Grant
program for FY14-FY17 and $85 million
for FY18.
Higher subsidies for enterprise crop
insurance coverage is done, but only
on a pilot basis.
No ability to insure separately
irrigated and non-irrigated land
under an enterprise policy.
If there are missing yields, the
transitional yield (T-yield) is set at
60% of the T yield.
N/A
N/A
The authority to subsidize enterprise
units is made permanent.
The authority to subsidize enterprise
units is made permanent.
Requires enterprise units to be made
available by practice (irrigated or nonirrigated).
T yields are increased from 60 to 65%.
Requires enterprise units to be made
available by practice (irrigated or nonirrigated).
T yields are increased from 60 to 70%.
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 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
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%.
4
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
AFBF Comparison of Senate and House Committee-passed Farm Bills
May 16, 2013
Special Cotton Direct Payment
Provision.
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.
N/A
N/A
N/A
N/A
USDA and the Food and Drug
Administration are both required to
inspect catfish.
N/A
N/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 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.
Prohibits unscientific state barriers to
interstate commerce when those barriers
are based solely on production practices.
This would not impact a state’s right to
set its own production standards. It
simply says a state can’t force those
standards on imports from other states.
USDA’s authority to inspect catfish is
repealed.
Authorizes USDA to establish an
industry-funded checkoff for organic
products.
N/A
Authorizes USDA to establish an industryfunded checkoff for organic products.
Makes it a federal offense to attend an
animal fighting venue.
5