Proposed Senate Amendments Will Help Meet Conservation Priorities

The Farm Bill debate is through the Senate, where the Farm Bill passed on December 14, 2007.  The Senate bill provides $5.1 billion in new conservation funding, a step in the right direction, but still not enough to meet farmer demand and environmental need.  The Senate also failed to make reasonable reforms to farm subsidy programs, despite many reform amendments offered on the Senate floor during debate. 

Several Senators offered amendments to the Farm Bill which would have reduced the amount the bill spends on subsidies and used the savings to help fund conservation and other priorities, bringing us closer to meeting farmer demand for conservation funding.  A clear majority of Senators voted in favor of reforms to impose a reasonable payment limit for subsidy recipients and to prevent already wealthy individuals from receiving subsidy checks.  However, a deal struck by Senate Leadership requiring a 60-vote supermajority to pass these amendments thwarted reform efforts.  As a result, the farm bill passed by the Senate will continue to allow millionaires to collect unlimited subsidies while leaving conservation programs and other critical programs underfunded. 

The FRESH Act Amendment

Offered by Senators Richard Lugar (R-IN) and Frank Lautenberg (D-NJ): This amendment replaces the complex, antiquated mix of trade and market distorting price-based farm subsidies to producers of a handful of crops with an insurance-based farmer safety net that helps all farmers weather the ups and downs of agriculture. This new safety net is provided at no cost to the farmer. Savings from these reforms would be redirected to conservation, healthy-food, anti-hunger, fruit and vegetable, and renewable energy programs.  Vote results.

Subsidy Payment Limits

Offered by Senators Charles Grassley (R-IA) and Byron Dorgan (D-ND): This amendment closes payment-limit loopholes and reduces ceilings on commodity payments. Under this amendment direct payments are capped at $20,000 a year; counter-cyclical payments at $30,000 a year; and marketing loan gains, loan deficiency payments and commodity certificate gains at $75,000 a year. No entity can receive more than twice the maximum for individuals. Total payments to any individual, entity, or married couple are capped at $250,000. The amendment provides savings of about $513 million over 5 years that would be redirected to conservation, nutrition, rural development, and organics programs and to compensate black farmers who have suffered racial discrimination. This amendment received a clear majority of 56 votes in favor of reform.  However, a 60-vote supermajority was required for passage and so, with a vote of 56-43, the amendment did not pass. 

RESCU (Reduction of Excess Subsidies to Crop Underwriters) Amendment

Offered by Senators Sherrod Brown (D-OH) and John Sununu (R-NH): This amendment reforms the administrative costs and company subsidies that currently consume more than 40 cents of every dollar taxpayers put into crop insurance. It reduces agent fees, which have skyrocketed because fees are tied to rising crop prices even though agent workload remains the same. It requires companies to share profits and loss with the government at a greater level than currently required to rebalance a system that has subsidized record profits to the industry. Savings are invested in nutrition programs and conservation programs that help farmers. Vote results.

Adjusted Gross Income (AGI) Eligibility Limits

Offered by Senators Amy Klobuchar (D-MN), Sherrod Brown (D-OH) and Richard Durbin (D-IL): This amendment would reform the subsidy system to prevent farm couples who clear $750,000 in net farm household income and part-time farm couples (those who earn more than one-third of their income off the farm) who clear $250,000 from receiving subsidies.  Current law allows farm couples who clear more than $2.5 million in net farm household income to collect subsidies if 75% or more of their income comes from farming.  Under the Farm Bill being considered by the Senate, farm couples who derive two-thirds or more of their income from the farm could continue to collect subsidies regardless of farm household income.  The Bush Administration proposed to lower the income eligibility cap to $200,000.  Savings from this reform will be reinvested in conservation and nutrition programs.  This amendment also received a majority of votes for reform, but 60 were required for passage. So, with a vote of 48 to 47, the amendment did not pass.

Posted: 13-Jul-2007; Updated: 13-Jul-2007