| The Farm Bill is a U.S. law renewed every five years that governs federal farm, food
and conservation policies. First created during the depression era when farmers
comprised 20% of the population and agriculture made up 8% of our nation’s GDP, the
bill was designed as a safety net in the event of calamities such as drought, bad
weather, and fluctuating commodity prices that would threaten the livelihoods of our
nation’s foods suppliers. Today however, much has changed in the realm of farming,
and as a result, in addition to providing economic support for our farmers the bill now
addresses topics such as food stamps, public agricultural research, economic
development in rural areas, and conservation of soils and cropland. As such, the bill
shapes and influences U.S. environmental policy and national funding for health and
nutrition programs, as well as dictates what types of foods can be grown and made
affordable to the public within the U.S. and throughout the world. The major criticism of
the bill is that the majority of its funding (over 70%) and programs are tailored to benefit
farmers who make up a tiny minority of the farming population (less than 10%) and are
not in a position of finical need or hardship. In fact, most of the existing farmer subsidy
programs including about $5.2 billion a year in “direct payments” are expected to
continue in the new bill, despite the fact that net farm income is projected to hit a
“historic high” in 2008. |
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| The expiration date of the latest farm bill of 2002 came to a head in September of 2007
and with it, a promising opportunity for Congress to revise its legislation. The hope was
that Congress and the President would take this chance to create new programs to
replace the outdated titles, which benefit the wealthy farmers of our nation and show
little promise of recognizing the bill’s many other intents. As Oxfam America stated last
year, the 2007 Farm Bill has the potential to do what it’s creation intended; “protect the
livelihoods of U.S. farmers, effectively help conserve the nation’s natural resources,
feed low-income households, promote rural development, encourage the search for
sustainable sources of energy, and create a fair market place for agricultural
communities around the world.” |
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| April 14, 2008- Budget Battles and Little Program Change |
| Word of recent farm bill activity indicates that there have been no significant changes
made to date. While Congress has been debating and in fact altering a few programs, it
seems that the more significant stall in the bill’s release revolves not around
programming, but instead House and Senate battles over budgeting—more specifically
how to justify the projected $10 billion increase in spending. For instance, one such
program that has created a particular amount of trouble is Disaster Relief. As the
Washington Post exposed in their yearlong 2006 study of agriculture in the U.S. the
Disaster Relief Program is known to be one of the most lenient and corrupt of all farm
bill title programs. Having been so abused by some farmers (used for anything other
than disasters), it is known as the “cry wolf” component to the bill.
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| April 25, 2008- Budget and Tax Breaks |
By April 23, when it once again became apparent to legislators that no resolution could
be reached on how to fund billions of dollars of proposed over-budget spending,
Congress asked the President for a fifth short-term extension. Bush once again heeded
their request, yet did so reluctantly as he feels the bill merely “raises taxes, uses budget
gimmicks to disguise $16 billion in additional spending and fails to reform farm
programs.” As Agriculture Secretary Ed Schafer put it, the frustration within the White
House administration lies in the fact that “The House and Senate can’t agree on funding
levels, can’t agree on the method of funding and can’t agree on the reforms - the three
basic building blocks of the farm bill.”
In fact, rather than continue in their requests for week-long extensions, the President
suggests lawmakers “admit defeat” and extend the bill for another year, placing U.S.
farm and food programs in the hands of a new president and a new session of
Congress. However, Congress remains hopeful that they can resolve matters within a
few weeks without having to face the reality of a future un-granted extension, which
would revert farm programs to they way they were in 1949, essentially doubling or
tripling subsidy rates and allowing heavy land controls. |
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| April 28, 2008 – Global Food Crisis and Nutrition |
| Another issue that was raised by the administration was the need to increase nutritional
spending in light of the pending Global Food Crisis. As the Washington Post highlights
in their front-page series, national protectionism around agriculture (in the form of
subsidies) in countries such as the US, are having disproportionate affects upon soaring
food prices worldwide. According to America’s Second Harvest, a food bank group,
food prices have risen about 5.5 percent in the past six months. Stacy Dean, Director of
Food Assistance Policy for the Center on Budget and Policy Priorities, points out the
need to bring Congress’s attention to the fact that USDA programs such as Food
Stamps do not adequately address the increase in food costs; a household’s food
benefits are now worth 95 percent of what they were in October. In response to the
crisis, Senate and House Agriculture Committee Chairmen have announced a modest
decrease in both the direct payment subsidy program, and a new disaster aid program,
making way for a $10.2 billion increase for nutrition programs, including food stamps,
which will supersede an earlier target of $500 million. |
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| April 30, 2008- Overdue Subsidy Reform |
| In an April 29 press conference regarding our slowing economy, President Bush
restated his concern over the farm bill, food prices and investment in biofuels. He
criticized Congress’ inability to reform New Deal payment structures that put more
money into the hands of wealthy U.S. farmers, rather than supporting those in need
such as food stamp recipients and those who are solely dependent on farm income.
The five-year, nearly $300 billion farm bill emerging on Capitol Hill appears to fall short
of Bush’s goal of making big cuts in subsidies to affluent farmers. At a press
conference on April 28, the President announced the following regarding the farm bill:
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"Americans are concerned about rising food prices. Unfortunately, Congress is
considering a massive, bloated farm bill that would do little to solve the problem.
The bill Congress is now considering would fail to eliminate subsidy payments to
multi-millionaire farmers. America’s farm economy is thriving, the value of
farmland is skyrocketing, and this is the right time to reform our nation’s farm
policies by reducing unnecessary subsidies. It’s not the time to ask American
families who are already paying more in the checkout line to pay more in
subsidies for wealthy farmers. Congress can reform our farm programs, and
should, by passing a fiscally responsible bill that treats our farmers fairly, and
does not impose new burdens on American taxpayers." |
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In responding to the President’s concerns, Congressional leaders have stated a
willingness to address limiting farmers’ ability to collect multiple subsidy payments, and
to eliminate payments to wealthy individuals not directly involved in farming. As of April
29, the new bill will exclude payments to individuals who earn more than $500,000 in
off-farm income, such as salaries and stock. Still, the administration reports that these
are only “modest changes,” as the income exclusion amount is to begin at $750,000 in
2009 and $650,000 in 2010, before reaching the new exclusion rate in 2011.
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| May 2, 2008- Breaking Farm Bill News, Yet Another Extension |
| The 2007 Farm Bill has once again been extended for two more weeks. Over the week,
House and Senate Agricultural Committee Members are reported to have held private
meetings with the President in efforts to weaken Bush’s opposition to the bill. As a
result, Bush is said to be “open to discussion” and has granted Congress another
extension of the bill, which will expire on May 16th. |
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| Support Geographic Preference |
| Legislators can do something right now. Since the Farm Bill is still in flux, it is
important to show your support for geographic preference language that will allow
School Nutrition Programs to prefer locally grown foods during purchasing process. Call
the Capitol Switchboard at 202.224.3121 and let your legislators (especially the
Republicans, since they are more likely to listen to the President) know that they should
support House language in the Farm Bill that allows schools flexibility to purchase from
local farmers. |
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Tell President Bush : Call the White House comment line TODAY, 202-456-1111,
and let President Bush know that you support "buying local from local farmers"
domestically as well as internationally!
*President Bush also made reference to his position on international food assistance in
his State of the Union address (1/28/2008), during which he suggested, “to provide food
assistance by purchasing crops directly from farmers in the developing world, so we can
build up local agriculture and help break the cycle of famine.” This is agriculture policy
we can support abroad and should encourage at home! |
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| Three Items that need to be changed in the 2007 Farm Bill |
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Set tighter and more enforceable payment limits on subsidies, eliminating
loopholes that allow large operations to receive millions, and crop overproduction.
to flood international markets
Provide funding for community oriented projects related to increasing the access
of fresh, local, and healthy food for people of all income levels and backgrounds.
Focus conservation efforts on promoting good stewardship of the land rather
than channeling funds to clean up environmental hazards and mistakes, by
placing a greater emphasis on working lands, communities and fostering a new
generation of conservation-minded farmers and ranchers. |
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-Kristin Kvernland |
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