July 11, 2012
www.gfb.org
Vol. 30 No. 28
HOUSE AG COMMITTEE RELEASES INITIAL DRAFT OF FARM BILL On July 5 the House Agriculture Committee released its initial version of the 2012 farm bill, titled the Federal Agriculture Reform and Risk Management (FARRM) Act. The committee was to begin consideration of the bill on July 11 in preparation for introducing it to the full House of Representatives. According to a committee press release, the bill cuts more than $35 billion in mandatory spending over 10 years while repealing or consolidating more than 100 programs. The bill also cuts discretionary spending authority. FARRM repeals direct payments, countercyclical payments, Average Crop Revenue Election (ACRE) and the Supplemental Revenue Assistance Program (SURE), offering instead a choice between two risk-management options: Price Loss Coverage (PLC) and Revenue Loss Coverage. PLC is designed to address deep multiple-year price declines and will complement federal crop insurance. RLC addresses revenue losses of 15 percent or greater. Cotton growers would be ineligble for PLC and RLC, but would have the option of the Stacked Income Protection Plan (STAX) or the new Supplemental Coverage Option included in the crop insurance portion of the bill. Georgia Farm Bureau President Zippy Duvall wrote to House Ag Committee Members from Georgia, Rep. Austin Scott (R-8th District) and Rep. David Scott (D-13th District), asking them to support passage of the bill as introduced in the discussion draft. “Passage of the proposal would be an important step forward in providing farmers with some degree of certainty regarding farm programs. It also strengthens farmers’ confidence to maintain the long-term investments on farms,” Duvall wrote. Duvall emphasized that the bill recognizes the diversity of Georgia agriculture and provides farmers with choices that give them a balanced safety net that covers a variety of commodities and and accounts for regional differences in agriculture. He asked Reps. Scott and Scott to oppose any amendments that would reduce the commodity reference prices for the PLC and RLC programs, as well as any amendments that would reduce payment limits established in the draft proposal. The bill reauthorizes the Dairy Forward Pricing Program, the Dairy Indemnity Program and the Dairy Promotion and Research Program while eliminating the Dairy Product Price Support Program, the Milk Income Loss Contract (MILC) program, the Dairy Export Incentive Program and the Federal Milk Marketing Order Review Commission. FARRM combines 23 conservation programs into 13 and makes changes to the Supplemental Nutrition Assistance Program, the current version of the federal food stamp program, taking steps to address fraud, waste and abuse in the program, according to the committee release.