NASDA Farm Bill Conference Committee Overview
Overview of the Agricultural Act of 2014 NASDA Farm Bill Priorities Specialty Crop Block Grant Program
$270 Million Funding Increase**
Invasive Species Programs
193 Million Funding Increase**
Conservation Programs
MAP & Trade Development Cooperative Programs Research Programs Dairy Safety Net
Adopts House funding increase to $85m over 5 years ($72.5m in FY14-17, $85m in FY18) Uses same grant allocation formula proposed in both bills (considers acreage based off most recent Census of Agriculture) Provides that a portion of the funding be used for multistate projects ($1m the first year, increasing a million per year to $5m) Includes House and Senate’s 8% cap for state administrative costs Increases the funding for the combined programs from $50 million to $62.5m in fiscal years 2014 through 2017 and to $75m in FY 2018 and following Includes a requirement that $5 million be spent for the Clean Plant Network each year Includes new language limiting indirect costs for certain cooperative agreements (limits to the lesser of 15% of the total fed funds provided by the agreement and the indirect cost rate applicable to the recipient as otherwise established by law) Spending reduced $3.97 billion below baseline** Easement programs consolidated in new Agriculture Conservation Easement Program (ACEP) The new Regional Conservation Partnership Program (RCPP) consolidates existing regional programs into a new competitive grant program for improving soil quality, water quality or wildlife habitat in specific areas/regions. Partnership agreements with state or local governments, tribes, farm groups, and conservation organizations leverage federal dollars to address regional or watershed-based conservation concerns. Allows the secretary to designate Critical Conservation Areas, bringing funding to projects in areas with particularly significant regulatory pressures. Receives mandatory funding of $100m a year and sets aside 7% of funds/acres of covered programs (EQIP, CSP and ACEP) for projects under the RCPP. CRP: Cap gradually reduced to 24 million acres EQIP: Funded at $1.35bil in FY14, 1.6bil in FY15, 1.65bil in FY16-17, and 1.75bil in FY18. WHIP is folded into EQIP, with a 5% set aside for wildlife habitat programs. Payment limitation increases to $450,000 a year. CSP: Enrollment is capped at 10 mil. new acres per year. Includes conservation compliance provisions MAP reauthorized at current levels ($200 million/year) FMD reauthorized at current levels (See SCBG and Invasives programs above) • Spending increased $1.14 billion over baseline** Provides support for veterinarians in rural agricultural areas, including veterinary education and rural recruitment $125 million for Citrus Greening research ($25m/yr) Dairy Producer Margin Protection Program: The program will provide producers with indemnity payments when actual dairy margins are below the margin coverage levels the producer chooses on an annual basis. The “Margin” will be the all-milk price minus the average feed. Supply management provisions are not included. Payment rates will fluctuate to discourage overproduction.
Title-by-Title Highlights Bill Highlights Commodities Title I
Spending reduced $16.5 billion** Spending reduced $14.3 billion below baseline** Eliminates direct payments. Subsidies triggered by ARC and PLC will take effect in FY2016 (October 2015).
Title IV
Farmers in need of cash flow assistance with will be eligible for a 9-month loan from USDA. Any crop insurance indemnities for the 2014 crop will be paid out next winter. Commodity Programs: Mirrors House-passed version except payments will be made on 86% of base acres (rather than acres in current production). This essentially combines the Agricultural Risk Coverage (ARC) program and the Price Loss Coverage (PLC). Farmers who elect PLC can buy a new Supplemental Coverage Option insurance policy, which would provide similar coverage to ARC. Payment Limits: Aggregate limit at $125,000 per individual and $250,000 per married couple. There are no “hard caps” on individual programs and no restriction on crop insurance indemnity payments. Actively Engaged: Secretary will have discretion in determination of “family farmer” for payment limitations. Landowners will automatically be considered “actively engaged.” Sugar: Sugar program remains unchanged from 2008 Farm Bill Cotton: Changes are made to the Marketing Loan program to comply with WTO requirements. Cotton is no longer considered a “program commodity” and is covered instead by a new crop insurance product, the Stacked Income Protection Plan (STAX). Because the STAX policy will not be finalized until the 2015 crop there will be one more round of direct payments (cotton transition payments). CBO estimates cotton transition payments will total $559 million. Dairy: The new Dairy Producer Margin Protection Program will provide producers with indemnity payments when actual dairy margins are below the margin coverage levels the producer chooses on an annual basis. The “Margin” will be the all-milk price minus the average feed. Supply management provisions are not included. Payment rates will fluctuate to discourage overproduction. Livestock and Supplemental Disaster Assistance: Livestock Indemnity Program (LIP), Livestock Forage Program (LFP), Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish (ELAP), and the Tree Assistance Program (TAP) are authorized for FY12-18. (Note retroactive authorization for FY12) Spending reduced $3.97 billion below baseline** Easement programs consolidated in new Agriculture Conservation Easement Program (ACEP) The new Regional Conservation Partnership Program (RCPP) consolidates existing regional programs into a new competitive grant program for improving soil quality, water quality or wildlife habitat in specific areas/regions. Partnership agreements with state or local governments, tribes, farm groups, and conservation organizations leverage federal dollars to address regional or watershed-based conservation concerns. Allows the secretary to designate Critical Conservation Areas, bringing funding to projects in areas with particularly significant regulatory pressures. Receives mandatory funding of $100m a year and sets aside 7% of funds/acres of covered programs (EQIP, CSP and ACEP) for projects under the RCPP. CRP: Cap gradually reduced to 24 million acres EQIP: Funded at $1.35bil in FY14, 1.6bil in FY15, 1.65bil in FY16-17, and 1.75bil in FY18. WHIP is folded into EQIP, with a 5% set aside for wildlife habitat programs. Payment limitation increases to $450,000 a year. CSP: Enrollment is capped at 10 mil. new acres per year. Includes conservation compliance provisions Spending increased $139 million over baseline** MAP reauthorized at current levels ($200 million/year) FMD reauthorized at current levels Spending reduced $8.0 billion below baseline** Eliminates so-called LIHEAP loophole
Credit
Extends USDA’s State Agricultural Mediation Program until 2018
Conservation Title II
Trade Title III
Nutrition
Title V
Rural Development Title VI
• Spending increased $228 million** Value-Added Agricultural Market Development Program Grants: reauthorized with $63 million in mandatory funding. Adopts Senate version with amendment authorizing priority to small and medium sized farms and ranches, beginning farmers and ranchers, socially disadvantaged
Research Title VII
Forestry Title VIII
Energy Title IX
Specialty Crops & Horticulture Title X
Crop Insurance Title XI
farmers and ranchers, and veterans. Business and Industry Direct and Guaranteed Loan Program reauthorized • Spending increased $1.14 billion over baseline** Provides support for veterinarians in rural agricultural areas, including veterinary education and rural recruitment $125 million for Citrus Greening research ($25m/yr) Spending increased $10 million** Reauthorizes the Healthy Forest Reserve Program Includes the Forest Legacy Program and Forest Stewardship Program (Senate language) Includes language enhancing the Forest Inventory Analysis program • Spending increased $879 million** Rural Energy for America (REAP): Mandatory funding of $50,000,000 is provided for fiscal year 2014 and each fiscal year thereafter. Biomass Crop Assistance Program (BCAP): Mandatory funding of $25,000,000 for each of fiscal years 2014 through 2018. BioPreferred Program: Clarifies that all forest products are eligible for inclusion. $3 million in mandatory funding each fiscal year (total of $15 million mandatory funding). Biorefinary Assistance Program: adopts the Senate provision with an amendment eliminating grant funding, directs the Secretary to ensure there is diversity in the types of projects approved, and caps the amount of funds used for loan guarantees to promote biobased product manufacturing at 15% of the total available mandatory funds. Mandatory funding of $100,000,000 is provided for FY2014, $50,000,000 for each of FY2015 and FY2016 and an authorization of $75,000,000 is provided for each of fiscal years 2014 through 2018. Biomass Research and Development Initiative (BRDI): Mandatory funding of $3,000,000 for each of fiscal years 2014 through 2017 and discretionary funding of $20,000,000 for each of fiscal years 2014 through 2018. • Spending increased $694 million over baseline** Specialty Crop Block Grant Program: Funding increases to $85m over 5 years ($72.5m in first 4 years, $85m in final year) Uses same grant allocation formula proposed in both bills (considers acreage based off most recent Census of Agriculture) Provides that a portion of the funding be used for multistate projects ($1m the first year, increasing a million per year to $5m) Includes House and Senate’s 8% cap for state administrative costs (See Section 10010) Invasive Species Programs: Consolidates the National Clean Plant Network and the Pest and Disease Management and Disaster Prevention Program Increases the funding for the combined programs from $50 million to $62.5m in fiscal years 2014 through 2017 and to $75m in FY 2018 and following Includes a requirement that $5 million be spent for the Clean Plant Network each year Includes new language limiting indirect costs for cooperative agreements (limits to the lesser of 15% of the total fed funds provided by the agreement and the indirect cost rate applicable to the recipient as otherwise established by law) Other Title X Programs: Specialty Crop Research Initiative: Funds the program at $50m in FY14-15, $55m in FY16-17, and $65m in FY18 and thereafter Farmers Market and Local Food Promotion Program: Funded at $30m per year mandatory funds and authorizes an additional $10m per year of appropriated funds National Organic Program: Program reauthorized, $15 million/year mandatory funding, onetime mandatory funds for technology upgrades. The National Organic Certification Cost Share Program is reauthorized with $11.5m per year. Spending increased $5.72 billion** Creates new Supplemental Coverage Option. AGI limits not included.
Conservation compliance required for Crop Insurance participants
Miscellaneous Title XII
Spending increased $953 million over baseline** House NPDES Language not included House SPCC Language not included House COOL Language not included; requires an economic analysis instead House GIPSA Language not included House King Amendment not included Includes FSMA Study: FDA’s final ‘‘Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption’’ rule must include a scientific and economic analysis Includes exemption from Clean Water Act NPDES permit requirements for Silvicultural activities Requires that the Secretary of State report to Congress on efforts by Mexico to meeting treaty deliveries of water to the Rio Grande Feral Swine Eradication language included as a “Sense of Congress.” (Note: FY2014 Omnibus included funding)
**Change in outlays over 10 years relative to CBO’s January 28 2014 score.
$270 Million Funding Increase**
Invasive Species Programs
193 Million Funding Increase**
Conservation Programs
MAP & Trade Development Cooperative Programs Research Programs Dairy Safety Net
Adopts House funding increase to $85m over 5 years ($72.5m in FY14-17, $85m in FY18) Uses same grant allocation formula proposed in both bills (considers acreage based off most recent Census of Agriculture) Provides that a portion of the funding be used for multistate projects ($1m the first year, increasing a million per year to $5m) Includes House and Senate’s 8% cap for state administrative costs Increases the funding for the combined programs from $50 million to $62.5m in fiscal years 2014 through 2017 and to $75m in FY 2018 and following Includes a requirement that $5 million be spent for the Clean Plant Network each year Includes new language limiting indirect costs for certain cooperative agreements (limits to the lesser of 15% of the total fed funds provided by the agreement and the indirect cost rate applicable to the recipient as otherwise established by law) Spending reduced $3.97 billion below baseline** Easement programs consolidated in new Agriculture Conservation Easement Program (ACEP) The new Regional Conservation Partnership Program (RCPP) consolidates existing regional programs into a new competitive grant program for improving soil quality, water quality or wildlife habitat in specific areas/regions. Partnership agreements with state or local governments, tribes, farm groups, and conservation organizations leverage federal dollars to address regional or watershed-based conservation concerns. Allows the secretary to designate Critical Conservation Areas, bringing funding to projects in areas with particularly significant regulatory pressures. Receives mandatory funding of $100m a year and sets aside 7% of funds/acres of covered programs (EQIP, CSP and ACEP) for projects under the RCPP. CRP: Cap gradually reduced to 24 million acres EQIP: Funded at $1.35bil in FY14, 1.6bil in FY15, 1.65bil in FY16-17, and 1.75bil in FY18. WHIP is folded into EQIP, with a 5% set aside for wildlife habitat programs. Payment limitation increases to $450,000 a year. CSP: Enrollment is capped at 10 mil. new acres per year. Includes conservation compliance provisions MAP reauthorized at current levels ($200 million/year) FMD reauthorized at current levels (See SCBG and Invasives programs above) • Spending increased $1.14 billion over baseline** Provides support for veterinarians in rural agricultural areas, including veterinary education and rural recruitment $125 million for Citrus Greening research ($25m/yr) Dairy Producer Margin Protection Program: The program will provide producers with indemnity payments when actual dairy margins are below the margin coverage levels the producer chooses on an annual basis. The “Margin” will be the all-milk price minus the average feed. Supply management provisions are not included. Payment rates will fluctuate to discourage overproduction.
Title-by-Title Highlights Bill Highlights Commodities Title I
Spending reduced $16.5 billion** Spending reduced $14.3 billion below baseline** Eliminates direct payments. Subsidies triggered by ARC and PLC will take effect in FY2016 (October 2015).
Title IV
Farmers in need of cash flow assistance with will be eligible for a 9-month loan from USDA. Any crop insurance indemnities for the 2014 crop will be paid out next winter. Commodity Programs: Mirrors House-passed version except payments will be made on 86% of base acres (rather than acres in current production). This essentially combines the Agricultural Risk Coverage (ARC) program and the Price Loss Coverage (PLC). Farmers who elect PLC can buy a new Supplemental Coverage Option insurance policy, which would provide similar coverage to ARC. Payment Limits: Aggregate limit at $125,000 per individual and $250,000 per married couple. There are no “hard caps” on individual programs and no restriction on crop insurance indemnity payments. Actively Engaged: Secretary will have discretion in determination of “family farmer” for payment limitations. Landowners will automatically be considered “actively engaged.” Sugar: Sugar program remains unchanged from 2008 Farm Bill Cotton: Changes are made to the Marketing Loan program to comply with WTO requirements. Cotton is no longer considered a “program commodity” and is covered instead by a new crop insurance product, the Stacked Income Protection Plan (STAX). Because the STAX policy will not be finalized until the 2015 crop there will be one more round of direct payments (cotton transition payments). CBO estimates cotton transition payments will total $559 million. Dairy: The new Dairy Producer Margin Protection Program will provide producers with indemnity payments when actual dairy margins are below the margin coverage levels the producer chooses on an annual basis. The “Margin” will be the all-milk price minus the average feed. Supply management provisions are not included. Payment rates will fluctuate to discourage overproduction. Livestock and Supplemental Disaster Assistance: Livestock Indemnity Program (LIP), Livestock Forage Program (LFP), Emergency Assistance for Livestock, Honey Bees, and Farm-raised Fish (ELAP), and the Tree Assistance Program (TAP) are authorized for FY12-18. (Note retroactive authorization for FY12) Spending reduced $3.97 billion below baseline** Easement programs consolidated in new Agriculture Conservation Easement Program (ACEP) The new Regional Conservation Partnership Program (RCPP) consolidates existing regional programs into a new competitive grant program for improving soil quality, water quality or wildlife habitat in specific areas/regions. Partnership agreements with state or local governments, tribes, farm groups, and conservation organizations leverage federal dollars to address regional or watershed-based conservation concerns. Allows the secretary to designate Critical Conservation Areas, bringing funding to projects in areas with particularly significant regulatory pressures. Receives mandatory funding of $100m a year and sets aside 7% of funds/acres of covered programs (EQIP, CSP and ACEP) for projects under the RCPP. CRP: Cap gradually reduced to 24 million acres EQIP: Funded at $1.35bil in FY14, 1.6bil in FY15, 1.65bil in FY16-17, and 1.75bil in FY18. WHIP is folded into EQIP, with a 5% set aside for wildlife habitat programs. Payment limitation increases to $450,000 a year. CSP: Enrollment is capped at 10 mil. new acres per year. Includes conservation compliance provisions Spending increased $139 million over baseline** MAP reauthorized at current levels ($200 million/year) FMD reauthorized at current levels Spending reduced $8.0 billion below baseline** Eliminates so-called LIHEAP loophole
Credit
Extends USDA’s State Agricultural Mediation Program until 2018
Conservation Title II
Trade Title III
Nutrition
Title V
Rural Development Title VI
• Spending increased $228 million** Value-Added Agricultural Market Development Program Grants: reauthorized with $63 million in mandatory funding. Adopts Senate version with amendment authorizing priority to small and medium sized farms and ranches, beginning farmers and ranchers, socially disadvantaged
Research Title VII
Forestry Title VIII
Energy Title IX
Specialty Crops & Horticulture Title X
Crop Insurance Title XI
farmers and ranchers, and veterans. Business and Industry Direct and Guaranteed Loan Program reauthorized • Spending increased $1.14 billion over baseline** Provides support for veterinarians in rural agricultural areas, including veterinary education and rural recruitment $125 million for Citrus Greening research ($25m/yr) Spending increased $10 million** Reauthorizes the Healthy Forest Reserve Program Includes the Forest Legacy Program and Forest Stewardship Program (Senate language) Includes language enhancing the Forest Inventory Analysis program • Spending increased $879 million** Rural Energy for America (REAP): Mandatory funding of $50,000,000 is provided for fiscal year 2014 and each fiscal year thereafter. Biomass Crop Assistance Program (BCAP): Mandatory funding of $25,000,000 for each of fiscal years 2014 through 2018. BioPreferred Program: Clarifies that all forest products are eligible for inclusion. $3 million in mandatory funding each fiscal year (total of $15 million mandatory funding). Biorefinary Assistance Program: adopts the Senate provision with an amendment eliminating grant funding, directs the Secretary to ensure there is diversity in the types of projects approved, and caps the amount of funds used for loan guarantees to promote biobased product manufacturing at 15% of the total available mandatory funds. Mandatory funding of $100,000,000 is provided for FY2014, $50,000,000 for each of FY2015 and FY2016 and an authorization of $75,000,000 is provided for each of fiscal years 2014 through 2018. Biomass Research and Development Initiative (BRDI): Mandatory funding of $3,000,000 for each of fiscal years 2014 through 2017 and discretionary funding of $20,000,000 for each of fiscal years 2014 through 2018. • Spending increased $694 million over baseline** Specialty Crop Block Grant Program: Funding increases to $85m over 5 years ($72.5m in first 4 years, $85m in final year) Uses same grant allocation formula proposed in both bills (considers acreage based off most recent Census of Agriculture) Provides that a portion of the funding be used for multistate projects ($1m the first year, increasing a million per year to $5m) Includes House and Senate’s 8% cap for state administrative costs (See Section 10010) Invasive Species Programs: Consolidates the National Clean Plant Network and the Pest and Disease Management and Disaster Prevention Program Increases the funding for the combined programs from $50 million to $62.5m in fiscal years 2014 through 2017 and to $75m in FY 2018 and following Includes a requirement that $5 million be spent for the Clean Plant Network each year Includes new language limiting indirect costs for cooperative agreements (limits to the lesser of 15% of the total fed funds provided by the agreement and the indirect cost rate applicable to the recipient as otherwise established by law) Other Title X Programs: Specialty Crop Research Initiative: Funds the program at $50m in FY14-15, $55m in FY16-17, and $65m in FY18 and thereafter Farmers Market and Local Food Promotion Program: Funded at $30m per year mandatory funds and authorizes an additional $10m per year of appropriated funds National Organic Program: Program reauthorized, $15 million/year mandatory funding, onetime mandatory funds for technology upgrades. The National Organic Certification Cost Share Program is reauthorized with $11.5m per year. Spending increased $5.72 billion** Creates new Supplemental Coverage Option. AGI limits not included.
Conservation compliance required for Crop Insurance participants
Miscellaneous Title XII
Spending increased $953 million over baseline** House NPDES Language not included House SPCC Language not included House COOL Language not included; requires an economic analysis instead House GIPSA Language not included House King Amendment not included Includes FSMA Study: FDA’s final ‘‘Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption’’ rule must include a scientific and economic analysis Includes exemption from Clean Water Act NPDES permit requirements for Silvicultural activities Requires that the Secretary of State report to Congress on efforts by Mexico to meeting treaty deliveries of water to the Rio Grande Feral Swine Eradication language included as a “Sense of Congress.” (Note: FY2014 Omnibus included funding)
**Change in outlays over 10 years relative to CBO’s January 28 2014 score.
