Senate committee passes new Farm Bill

Washington — The Senate Agriculture Committee passed a five-year, half trillion-dollar farm bill April 26 that would cut spending by $23-$25 billion, eliminate some $5 billion per year direct payments to farmers, and rely on new crop insurance programs for a farm safety net. Conservation programs would also be consolidated under the bill, saving some $6.5 billion, and another $4 billion in savings would be gleaned from closing loopholes in public nutrition programs. The bill drew favorable comments from farm groups, but not from environmental organizations such as the Environmental Working Group, which said the bill would “provide unprecedented revenue guarantees on top of unlimited insurance guarantees.” The Agricultural Retailers Association (ARA) sent a letter on April 11 to House and Senate Ag Committee leaders asking them to consider several changes while drafting the new farm bill, including preserving the crop insurance program but extending the preventable planting date to reflect advances in improved technologies; including the “Reducing Regulatory Burdens Act of 2011” (H.R. 872) to protect pesticide applicators who are in compliance with FIFRA from Clean Water Act liability; and reducing the authorized acreage in the Conservation Reserve Program (CRP) by requiring the majority tract offered to be designated as highly erosive land. ARA also requested a number of tax provisions in the new farm bill, including the continuation of a 30 percent tax credit established in 2008 available to those agricultural businesses that invest in chemical security measures, and setting the agricultural equipment depreciation schedule to five instead of the current seven years. “Considering the budgetary constraints our country currently faces, you will undoubtedly have difficult items to consider in putting this legislation together and ARA greatly appreciates your efforts,” the letter said. “However, it is with a strong level of concern that we urge you to pass a Farm Bill in 2012 that will last through 2017 in order to provide certainty to those involved in feeding, fueling, and clothing the nation.” The House has not yet established a timeline for when it might act on its version of the bill, but has bandied about proposals that would cut as much as $33 billion, including a large reduction in spending for food stamps.