Farm Bill Basics
Farm Bill Primer1
What is the “Farm Bill”?
Every four to seven years Congress reauthorizes a variety of farm and food laws through a multi-year, omnibus farm bill. Each such omnibus bill is given a formal name, such as the Food and Agriculture Act of 1977 or the Food, Agriculture, Conservation and Trade Act of 1990, but more often people refer to each such act as simply “the farm bill.”
Food assistance, conservation, agriculture trade, credit, rural development, research, and other farm, food, and rural policies are actually governed by a variety of separate laws, which can be and sometimes are, renewed or modified as stand alone bills. Increasingly, though, Congress finds it advantageous to combine many of these laws into a single, large-scale reauthorization at the same time they renew the farm commodity programs.
This omnibus approach has the potential advantage of affording an opportunity to a more comprehensive look at food, agriculture, and rural policy and also increases prospects for broader-based coalitions of support.
Policy vs. Spending
In thinking about the content of a farm bill, it is helpful to separate policy from funding. Lots of topics and programs can be included in a farm bill, but actual farm bill funding is attached to only some of them. That’s because as an authorizing body, the House and Senate Agriculture Committees have general policy authority over a wide range of laws, agencies, and issues. The bulk of those authorities, however, establish (authorize) programs or set policy which often times must be funded separately by the House and Senate Appropriations Committees in their annual bill covering discretionary funding for USDA programs and agencies.
The farm bill programs that are classified as direct or mandatory spending, rather than discretionary, are the center stage of the farm bill process and under the jurisdiction of the Agriculture Committees. In this case the authorizing bill itself determines the total annual cost based on the eligibility conditions, benefit levels, and other provisions stipulated in the legislation. Examples of mandatory farm bill programs include the commodity payments, food stamps, and certain conservation programs. The spending for mandatory programs can vary widely from year to year, depending on crop and weather conditions, program participation rates, and other economic variables.
A Closer Look: Mandatory vs. Discretionary Spending
Discretionary spending requires an annual appropriations bill. All discretionary spending is determined by the House and Senate Appropriations Committees and their sub-committees. Since the spending is usually for a fixed period (usually one year), it is said to be under the discretion of the Congress.
Mandatory spending refers to spending enacted by law, but no dependent on an annual or periodic appropriations bill. “Mandatory” programs usually refer to certain entitlement programs that do not require annual appropriations. Non-farm bill mandatory programs include Social Security benefits, Medicare, and Medicaid, which entitle eligible individuals to Federal government payments through legislation authorized in the past. The cost of spending for these benefits is estimated every year, but is not subject to periodic congressional approval. The Congress may, however, change mandatory programs or spending through subsequent legislation. Farm Bill Mandatory Spending
The largest of the mandatory spending programs is the food stamp program, which can total between $30 billion and $40 billion depending on economic swings and other factors. Next in size are the farm commodity programs, which recently have averaged between $15 billion and $20 billion, though can swing higher or lower than that depending on weather, crop size, and other factors. Crop insurance and conservation both weigh in at close to $4 billion a year. Mandatory funding of much smaller amounts has been made available for agricultural research, rural development, and a few other items.
By date, mandatory spending for commodity programs is the oldest (dating back to the 1930s), followed by food stamps (late 1960s), conservation (late 1980s), rural development and research (late 1990s), and crop insurance (2000). Prior to receiving mandatory funding, programs in these areas were funded through annual appropriations. Without new legislation passed when a current farm bill expires, permanent statutes will take effect. That means laws governing the area of farm income and commodity price support, for instance, would revert to a statute from 1949.
How Farm Legislation Becomes Law
- A bill is introduced on the House or Senate floor by a member of Congress
- A bill can be jointly sponsored when it is introduced or members can endorse a bill by co-sponsoring it after it has been introduced
- Bills are prefixed with HR in the House and S in the Senate
- With few exceptions, a bill is referred to the appropriate standing committee within the House or Senate
- Bills may be referred to more than one committee and may be split apart so that different pieces are sent to different committees
- Failure of a committee to act on a bill is equivalent to killing it (most bills fall by the legislative roadside)
- The bill may be assigned to a subcommittee by the committee chairman for study and hearings.
- Hearings may be public, closed (executive session), or both
- The subcommittee reports to the full committee its recommendations for action and any proposed amendments.
- The full committee votes on the bill’s recommendation to the House or Senate. This is called “ordering a bill reported.”
- After the bill is reported, the committee staff prepares a written report explaining the purpose and scope of the bill, why the committee favors the bill, explaining any revisions
- If there are committee members that oppose a measure, their dissenting minority statements are included in the report.
- The bill is considered on the House or Senate floor
- The Speaker of the House and the Majority Leader decide what will reach the floor and when.
- In the Senate, a bill can be brought to the floor whenever a majority chooses.
- The bill is debated in the House or Senate floor
- In the House the sponsoring committee guides limited debate and time is divided equally between proponents and opponents.
- In the Senate, debate is unlimited. Members can speak as long as they want – this can only be halted by unanimous consent by “cloture,” which requires three-fifths majority of the entire Senate.
- After a bill is passed in the House and the Senate it goes to conference committee
- A conference works out conflicting House and Senate versions of a legislative bill.
- When conferees have reached agreement, they prepare a conference report embodying their recommendations. This must be approved by each house.
Useful Websites for Information on the Farm Bill:
The National Agricultural Law Center (University of Arkansas)
- Full text and resources for all US Farm Bills 1933-present
- Legal perspectives on current issues, summaries of recent cases, Federal Register notices and Rules, USDA Judicial officer decisions
- Links to agricultural law on the Hill
USDA 2007 Farm Bill Proposals
- Includes full proposal, USDA 2007 Farm Bill Forum Comment Summaries, and fact sheets
The “Farm Bill” in Brief, Geoffrey S. Becker, Congressional Research Service
Updated February 2, 2007
Farm Bill Proposals and Legislative Action in the 110th Congress, Coordinated by Renee Johnson, Congressional Research Service
Updated March 22, 2007
Useful Websites for Information on The Legislative Branch
Thomas – Legislative Information on the Internet
- Search for bills in the current Congress (110th)
- Click on “Search Bills and Resolutions” to find bills in past Congresses
- Access Committee Reports for present and past Congresses
U.S. Senate Committee on Agriculture
U.S. House of Representatives Committee on Agriculture
For Information on the Budget
Office of Management and Budget (budgeting arm of executive branch)
- Learn about the President’s FY08 Budget and priorities
- Access “budget overview” or the President’s budget message
Congressional Budget Office (budgeting arm of legislative branch)
- Provides a “Budget and Economic Outlook” for FY06-FY15
- Historical budget data
- Glossary of economic and budgetary terms
U.S. Senate Committee on Appropriations
- Describes the difference between authorizations and appropriations
- Charts where budget money is allocated (discretionary, entitlement, interest)
- Defines general appropriations bills
- Lists committee and subcommittee members
U.S. House of Representatives Committee on Appropriations
- Subcommittee and committee members
- Calendar schedule of House Appropriations Committee activities
For More Information on the Executive Branch
Federal Register Online
- Official daily publication for rules, proposed rules, and notices of Federal agencies and organizations, as well as executive orders and other presidential documents.
- Searchable for rules, proposed rules, etc. 1994-present
Regulations.gov “Your one-stop site to comment on federal regulations”
- Find, review, and submit comments on Federal documents that are open for comment and published in the Federal Register, the Government’s legal newspaper.
- Browse regulations published for comment today
- Search for regulations by topic
- Check which regulations have comments due today
Why The Farm Bill Matters
We all have a stake in the kinds of farm and food policies that are authorized every five to seven years in the federal farm bill. In setting the farm, food, and rural policy goals and priorities for our country, the farm bill has a tremendous impact on how food is grown, what kinds of foods are grown, who is able to participate in growing them, and who is able to eat them. In short, the outcome of the farm bill debate is of great environmental and social justice significance, not to mention being vital to our current and future nutrition and public health as a nation. These are some pretty hefty reasons to become involved!
The Sustainable Agriculture Coalition believes reauthorization of the farm bill in 2007 presents a critical opportunity to shape the health, equity, and long-term economic and environmental sustainability of the U.S. food system. The time to act is now. We should embrace reform and construct policies and programs that truly support our small and mid-sized farms, protect and conserve our natural resources and environment, and breathe new life into our rural communities. In our view, all sections of the farm bill hold significant opportunities for crafting cost-effective, high-impact policies that can increase farm profitability and improve the health of individuals, communities, and the environment. Our goals are to increase farming opportunities, revitalize family farming, restore competition, reward stewardship, stimulate new markets, promote rural entrepreneurship, and spur innovation. For a full description of our proposed policy options, please visit our farm bill page.
The Sustainable Agriculture Coalition’s “Top Ten” Farm Bill Policy Priorities
1. Encourage and support a new generation of farmers and ranchers. With consumer demand for locally-grown, organic produce and grass-fed meats outstripping domestic supply, new farmers and ranchers face incredible market opportunities. This new crop of growers is more diverse than previous generations and represents varied experiences and exposure to sustainable farming methods. We need public policy that supports their entry into sustainable farming and ranching livelihoods through training, technical assistance, and access to credit and land. This kind of support represents a wise investment into the future economic, environmental, and public health of our country. For more information about the Beginning Farmer and Rancher Initiative, please click here.
2. Reinvigorate regional agricultural economies and local food systems. In light of the relationship between people and their food becoming distant, farmers seeing less and less of the food dollar, and local economies being undermined as their agricultural base continues to disappear, it is imperative that the 2007 Farm Bill emphasize the purchase of locally-produced agricultural goods, farmer direct marketing, and institutional buying of local products. In conjunction with these market-based programs, policies alleviating domestic food insecurity and increasing public awareness about the health benefits of the consumption of local foods will aid in the development of viable local and regional food systems. For more information about policies that encourage New Markets, Local Food Systems, and Value-Added production, please click here.
3. Reward superior conservation systems on land in agricultural production. An effective federal farm policy would advance the widely-supported goals of fostering family farms, healthy rural communities, and environmental enhancement. It makes little public policy sense to reward overproduction of specific crops with attendant negative impacts on family farms, rural communities, and the land itself. A comprehensive stewardship incentives system that includes at its heart an expanded and streamlined Conservation Security Program will support family farms and rural communities in a manner that promotes resource conservation and environmental enhancement. For more information about the Conservation Security Program please click here.
4. Assist farmers’ and ranchers’ transition to organic production. In addition to the obvious resource conservation benefits of organic production methods, the premium paid for organically produced food offers extremely promising economic opportunities for small and mid-sized farmers and ranchers. The U.S. is currently experiencing an increasing domestic shortfall of organically produced foods, leaving companies to rely on foreign imports to meet consumer demand. Existing and new entry farmers and ranchers should be supported in their conversion to organic agriculture to meet consumer demand and support a healthier environment and food supply. For more information about the 2007 Farm Bill Organic Provisions supported by SAC, please click here.
5. Ensure fair and competitive agricultural markets. Large segments of the nation’s food supply are dominated by a handful of corporations. Family farmers and ranchers are facing markets for the sale of their products that are increasingly concentrated in fewer and fewer firms. This is especially true in the livestock and poultry sectors. In an attempt to gain market access, farmers and ranchers enter into production or marketing contracts with these corporations that have far greater bargaining and market power. A Competition Title in the next farm bill would ensure that agricultural markets are more open and competitive and contracts more fair. The Sustainable Agriculture Coalition believes more market channels will allow producers to provide consumers with a greater diversity of higher quality and fairly priced goods. For more information about a Competition Title in the 2007 Farm Bill, please click here.
6. Support entrepreneurship as a rural development strategy. There is a developing broad agreement among researchers, policy advocates, and grassroots workers that the traditional economic development models of industrial and business recruitment simply do not meet the needs of rural communities. A package of Rural Development and Micro-Enterprise Programs in the 2007 Farm Bill will provide the resources necessary for rural people and rural communities to leverage the spirit, creativity, and opportunities entrepreneurship creates. For more information about Rural Development policies in the next farm bill, please click here.
7. Increase research resources that support and foster sustainable agriculture systems. The nation’s investments in agricultural research profoundly affect the future of our food and farming system. Agriculture research should address economic and social needs of rural America as well as support and foster organic and other ecologically-based production systems. These systems can help restore balance to a U.S. food system that is increasingly concentrated and focused on a narrowing base of crops and livestock breeds. For more information about the Sustainable and Organic Research programs supported by SAC, please click here.
8. Encourage a new, primary role for conservation in federal farm policy. In light of a confluence of factors that include soaring unmet farmer demand for conservation programs, the destructive economic pressures of traditional production subsidies, international trade rules, and the building urgency of an agro-ecosystem out of balance, Conservation Title programs must enter a new phase. This phase will include substantially increasing total conservation funding, protecting and strengthening the current land retirement and resource easement programs, and accelerating the shift to increased working lands stewardship assistance. For more information about the Conservation Title please click here.
9. Include sustainability criteria that guides all conservation and energy title programs seeking to promote renewable energy. It is critical that renewable energy production be pursued in a manner that enhances rural communities and the environment. The 2007 Farm Bill should tailor incentives to ensure that the emerging renewable energy industries benefit U.S. family farmers and rural communities while safeguarding soil, water, and biodiversity. For more information about the Renewable Energy provisions supported by SAC, please click here.
10. Reform the commodity payment programs. In recent years, many of the original goals of commodity programs have been abandoned and replaced with outright production subsidies that encourage overproduction, low prices, and an export expansion orientation. Some of the negative consequences of these policies include farm consolidation and the disappearance of mid-sized family farms, land prices rising well beyond market levels, reduced farming opportunities for a new generation of farmers, and the growth of industrial animal feeding facilities. While a variety of reforms are needed to reduce or eliminate the negative impacts of current commodity programs, the single most effective first step Congress could take in the 2007 Farm Bill is to cap subsidies to mega farms through Payment Limitation Reform. For more information about Payment Limitations and Commodity Reform, please click here.
1Ferd Hoefner, Sustainable Agriculture Coalition, “Farm Bill Primer” power point
presentation, September 2005.
Jasper Womach, Coordinator, “Previewing a 2007 Farm Bill,” Congressional Research
Service, Order Code RL33037. Updated January 3, 2007.
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