May 22, 2013
www.gfb.org
Vol. 31 No. 21
HOUSE AG COMMITTEE PASSES FARM BILL The House Agriculture Committee approved its version of the 2013 farm bill by a 36-10 vote on May 16. Overall, the Federal Agriculture Reform and Risk Management (FARRM) Act of 2013 cuts farm bill spending by nearly $40 billion over 10 years. Ranking Member Collin Peterson (D-Minn.) said he anticipates the bill will reach the House floor in June and could be in place before Congress takes its August recess. The Senate began deliberations on that chamber’s version of the farm bill on May 20. According to a committee summary, the FARRM Act (H.R. 1947) repeals direct payments, counter-cyclical payments, the Average Crop Revenue Election (ACRE) program and Supplemental Revenue Assistance Payments (SURE). The bill provides farmers with a choice of riskmanagement tools. Producers may choose between Price Loss Coverage (PLC), which addresses deep multiple-year price declines, and Revenue Loss Coverage (RLC), which addresses drops in revenue. PLC is designed to complement federal crop insurance and uses modern yields and an index of cost-of-production prices. RLC requires a producer to experience at least a 15-percent loss in revenue and offers coverage based on county-wide losses. Cotton producers would not be eligible for PLC or RLC but would be allowed to purchase group-risk crop insurance under the stacked income protection plan (STAX) program. While STAX is being implemented, cotton growers would be eligible for transitional direct payments based on 70 percent of base acres in 2014 and 60 percent of base acres in 2015. The FARRM Act repeals 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. It replaces them with the Dairy Producer Margin Protection Program (DPMPP). Under the DPMPP, milk producers agree to manage supply of dairy products by participating in the Dairy Market Stabilization Program. Revenue generated by the stabilization program will be used by the USDA to purchase surplus dairy products for donation to food banks and school meals. FARRM reauthorizes Dairy Forward Pricing, the Dairy Indemnity Program and promotion and research. Under the bill’s livestock provisions, Supplemental Agricultural Disaster Assistance is reauthorized, as are the Livestock Indemnity Program (LIP), the Livestock Forage Program (LFP), Emergency Assistance for Livestock, Honey Bees and Farm-raised Fish (ELAP) and the Tree Assistance Program (TAP).