For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34696 ------------------------------------------------------------------------------ Order Code RL34696 The 2008 Farm Bill: Major Provisions and Legislative Action Updated November 6, 2008 Renée Johnson, Coordinator, Geoffrey S. Becker, Tom Capehart, Ralph M. Chite, Tadlock Cowan, Ross W. Gorte, Charles E. Hanrahan, Remy Jurenas, Jim Monke, Jean M. Rawson, Randy Schnepf Resources, Science, and Industry Division Joe Richardson Domestic Social Policy Division Donald J. Marples, Mark Jickling, and N. Eric Weiss Government and Finance Division The 2008 Farm Bill: Major Provisions and Legislative Action Summary The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, "2008 farm bill") was enacted into law on June 18, 2008. It contains 15 titles covering support for commodity crops, horticulture and livestock production, conservation, nutrition, trade and food aid, agricultural research, farm credit, rural development, energy, forestry, and other related programs. It also includes provisions that make certain changes to tax laws, in order to offset some new spending initiatives in the final bill. The enacted bill succeeds the most recent 2002 farm bill (P.L. 107-171) and is to guide most federal farm and food policies through 2012. Many provisions of the 2002 farm bill expired in September 2007, but were extended under a series of temporary extensions prior to final enactment of the 2008 bill. The enacted 2008 farm bill continues and/or modifies most existing farm and commodity programs, and also creates new programs and provisions. For farm commodities, the bill generally continues the framework of the 2002 farm bill, revises payment limitations (tightening certain limits and relaxing others), adjusts support prices for some commodities, and creates a new revenue support program, in addition to the traditional direct, counter-cyclical, and marketing loan programs for major supported crops. The bill also adds new stand-alone titles containing provisions to address horticulture and livestock issues, including new mandatory funding for specialty crop block grants and to support organic production; and provisions to address meat and poultry inspection, country-of-origin labeling, and livestock competition. Other provisions include changes to the current crop insurance program, a new provision for ongoing disaster assistance, and expanded borrowing opportunities for beginning and socially disadvantaged farmers. The bill's nutrition title increases food stamp benefits and sets new standards that will make more households eligible, and also raises funding for fresh fruits and vegetables in most domestic food programs. For research, the bill requires the reorganization of USDA's research, extension, and economic agencies. For most other titles -- conservation, international trade and food aid, rural development, forestry, and energy -- the enacted law reauthorizes, expands, and/or modifies many of the existing programs, creates new programs and initiatives, and allows some programs to expire. The Congressional Budget Office (CBO) estimates the total cost of the 2008 farm bill (i.e., baseline plus new spending, using its March 2007 baseline) at just under $284 billion in total budget authority over five years (FY2008-FY2012). About $42 billion (15%) in projected spending will support commodity crops, $189 billion (67%) will support the cost of domestic nutrition programs, $24 billion (9%) will support conservation programs, and $22 billion (8%) will support crop insurance. Another $14 billion is expected to be spent on supplemental disaster assistance, trade, horticulture and livestock production, rural development, research, forestry and energy, and other programs. Offsets from tax provisions and proceeds from the credit, crop insurance, and commodity program titles are estimated at $10 billion (FY2008-FY2012). Key CRS Policy Staff Area of Expertise Name Telephone Report Coordinator/Overview Renée Johnson 7-9588 Food and Feed Grain Support Jim Monke 7-9664 Ralph M. Chite (dairy) 7-7296 Other Commodity Support Programs Remy Jurenas (sugar) 7-7281 Randy Schnepf (cotton) 7-4277 Payment Limits Planting Flexibility Jim Monke 7-9664 Farm Credit Crop Insurance; Disaster Assistance Ralph M. Chite 7-7296 Renée Johnson 7-9588 Conservation Tadlock Cowan 7-7600 Energy Tom Capehart 7-2425 Agricultural Trade and Food Aid Charles E. Hanrahan 7-7235 Specialty Crops; also Agricultural Jean M. Rawson 7-7283 Research, Extension, & Economics Meat and Poultry Inspection; Marketing Geoffrey S. Becker 7-7287 and Regulatory Programs; Food Safety Rural Development Tadlock Cowan 7-7600 Forestry Ross Gorte 7-7266 Domestic Food Assistance and Nutrition Joe Richardson 7-7325 Programs Revenue-Raising Tax Provisions Donald J. Marples 7-3739 Small Business Disaster Response N. Eric Weiss 7-6209 Commodity Futures Trading Commission Mark Jickling 7-7784 (CFTC) reauthorization Acknowledgments Portions of this report were originally written by retired CRS specialists Jasper Womach, Jeffrey Zinn, and David Brumbaugh. Contents Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2008 Farm Bill Policy Setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Budgetary Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Trade Negotiations and Commitments . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Administration's Policy Recommendations . . . . . . . . . . . . . . . . . . 3 Other Recommendations/Proposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Legislative Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Brief Overview of Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Projected Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2008 Farm Bill Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Summary of the 2008 Farm Bill Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Title I: Commodity Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Grains, Oilseeds, and Cotton Support . . . . . . . . . . . . . . . . . . . . . . . . . 11 Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Title II: Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Land Retirement/Easement Programs . . . . . . . . . . . . . . . . . . . . . . . . . 17 Working Lands Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 New Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Title III: Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Food Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Title IV: Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Supplemental Nutrition Assistance Program . . . . . . . . . . . . . . . . . . . . 23 The Emergency Food Assistance Program . . . . . . . . . . . . . . . . . . . . . 23 Other Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Title V: Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Farm Service Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Farm Credit System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Title VI: Rural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Title VII: Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Research Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Title VIII: Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Title IX: Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Title X: Horticulture and Organic Agriculture . . . . . . . . . . . . . . . . . . . . . . . 31 Title XI: Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Competition and Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Country-of-Origin Labeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Inspection, Registries, and Grading . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Title XII: Crop Insurance and Disaster Assistance Programs . . . . . . . . . . . 36 Crop Insurance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Other Disaster Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Title XIII: Commodity Futures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Title XIV: Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Socially Disadvantaged and Limited Resource Producers . . . . . . . . . . 39 Agricultural Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Title XV: Trade and Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Supplemental Agricultural Disaster Assistance . . . . . . . . . . . . . . . . . . 40 Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Major Provisions of the Enacted 2008 Farm Bill (P.L. 110-246) Compared with Previous Law and the House- and Senate-Passed Bills (H.R. 2419) . . 43 Title I: Commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Grains, Cotton, Peanuts, and Minor Commodities . . . . . . . . . . . . . . . . . . . 43 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Base Acres and Program Yields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Prohibition on Small Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Producer Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Planting Flexibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Direct Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Counter-cyclical Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Revenue-based Counter-cyclical Payments . . . . . . . . . . . . . . . . . . . . . 53 Nonrecourse Marketing Loans and Other Recourse Loans . . . . . . . . . 56 Payment Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Adjusted Gross Income Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Administrative Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Dairy Price Support Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Dairy Forward Pricing Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Dairy Export Incentive Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Dairy Indemnity Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Dairy Promotion and Research Program . . . . . . . . . . . . . . . . . . . . . . . 73 Federal Milk Marketing Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Mandatory Dairy Commodity Price Reporting . . . . . . . . . . . . . . . . . . 74 Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 No Net Cost Directive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Price Support Levels, Loans and Payments . . . . . . . . . . . . . . . . . . . . . 74 Marketing Allotments and Allocations . . . . . . . . . . . . . . . . . . . . . . . . 75 Trade-Related Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Title II: Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Program Definitions and Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Highly Erodible and Wetland Conservation . . . . . . . . . . . . . . . . . . . . 77 Comprehensive Conservation Enhancement Program . . . . . . . . . . . . . 78 Conservation Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Wetlands Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Conservation Security Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Environmental Quality Incentives Program . . . . . . . . . . . . . . . . . . . . . 84 Farmland Protection Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Grassland Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Wildlife Habitat Incentives Program . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Other Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 New Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Title III: Agricultural Trade and Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 P.L. 480 Food Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 Other Food Aid Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Export Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 Other Trade Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Provision Regarding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Title IV: Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Reauthorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Food Stamp Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Fruits and Vegetables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 The Emergency Food Assistance Program . . . . . . . . . . . . . . . . . . . . 114 Commodity Supplemental Food Program . . . . . . . . . . . . . . . . . . . . . 115 Food Distribution Program on Indian Reservations . . . . . . . . . . . . . 115 Senior Farmers' Market Nutrition Program . . . . . . . . . . . . . . . . . . . . 115 Community Food Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Geographic Preference (Purchase of Locally Produced Foods) . . . . . 116 Special Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Title V: Agricultural Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 USDA Farm Ownership Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 USDA Farm Operating Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Administrative Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 Farm Credit System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 Title VI: Rural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Defining Rural Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126 Rural Infrastructure: Water and Waste Disposal . . . . . . . . . . . . . . . . 126 Rural Broadband and Telecommunications Development . . . . . . . . 128 Agricultural-Based Rural Economic Development . . . . . . . . . . . . . . 130 Regional Economic Development and Planning . . . . . . . . . . . . . . . . 131 Rural Entrepreneurship and Business Investment Programs . . . . . . . 132 Community Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . 133 Other Rural Development Provisions . . . . . . . . . . . . . . . . . . . . . . . . 135 Title VII: Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Structure and Funding of Research, Education, and Extension . . . . . 136 Provisions Affecting Certain Research Institutions . . . . . . . . . . . . . 139 Organic Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Specialty Crops Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Bioenergy Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Other Research Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Extended Program Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Repeal of Program Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Title VIII: Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 Cooperative Forestry Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 Other Forestry Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Title IX: Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Farm and Community Energy Systems . . . . . . . . . . . . . . . . . . . . . . . 155 Biofuel Feedstocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Biofuel Research and Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159 Other Renewable Energy Provisions . . . . . . . . . . . . . . . . . . . . . . . . . 162 Title X: Horticulture and Organic Production . . . . . . . . . . . . . . . . . . . . . . 162 Marketing and Trade Promotion, Consumer Access . . . . . . . . . . . . . 162 Organic Agriculture Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Pest and Disease Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 Food Safety Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Disaster Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 Specialty Crop Sector Data Collection . . . . . . . . . . . . . . . . . . . . . . . 167 Other Commodity-Specific Provisions . . . . . . . . . . . . . . . . . . . . . . . 168 Title XI: Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Livestock Mandatory Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Meat and Poultry Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Seafood Grading and Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Country of Origin Labeling (COOL) . . . . . . . . . . . . . . . . . . . . . . . . . 170 Agricultural Fair Practices Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Packers and Stockyards Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 Animal Pest and Disease Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 172 National Animal Identification System . . . . . . . . . . . . . . . . . . . . . . . 173 Other Commodity-Specific Provisions . . . . . . . . . . . . . . . . . . . . . . . 174 Title XII: Crop Insurance & Disaster Assistance Programs . . . . . . . . . . . 174 Timing of Crop Insurance Payments and Receipts . . . . . . . . . . . . . . 174 Reimbursement of Administrative and Operating Expenses . . . . . . . 175 Premiums and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Standard Reinsurance Agreement and Risk-Sharing . . . . . . . . . . . . . 176 Program Integrity (Waste, Fraud, and Abuse) . . . . . . . . . . . . . . . . . . 177 Risk Management Research and Development . . . . . . . . . . . . . . . . . 177 Small Business Disaster Loan Program . . . . . . . . . . . . . . . . . . . . . . . 178 Title XIII: Commodity Futures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Title XIV: Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Section 32 Funding for Nutrition Programs . . . . . . . . . . . . . . . . . . . . 179 Socially Disadvantaged and Limited Resource Producers . . . . . . . . . 180 Pigford Discrimination Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Agricultural Biosecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Food Safety Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 Foods from Cloned Animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Invasive Species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Animal Welfare Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 Other APHIS-Related Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 187 Miscellaneous Rural Development Provisions . . . . . . . . . . . . . . . . . 188 Other Miscellaneous Title Provisions . . . . . . . . . . . . . . . . . . . . . . . . 189 Title XV: Revenue & Offsetting Cost Provisions . . . . . . . . . . . . . . . . . . . 191 Supplemental Agriculture Disaster Assistance . . . . . . . . . . . . . . . . . 191 Customs User Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Other Revenue and Tax-Related Provisions . . . . . . . . . . . . . . . . . . . 192 Tax-Related Conservation Provisions . . . . . . . . . . . . . . . . . . . . . . . . 194 Tax-Related Energy Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 Agricultural Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 Appendix: 2007-2008 Farm Bill Debate Timeline . . . . . . . . . . . . . . . . . . . . . . 204 List of Tables Table 1. 2002 Farm Bill Actual Spending (FY2002-FY2007 est.) and the March 2007 CBO Baseline (FY2008-FY2013) . . . . . . . . . . . . . . . . . . . . . . . 2 Table 2. CBO Estimated Costs for the 2008 Conference Agreement on the Farm Bill (FY2008-FY2012) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 The 2008 Farm Bill: Major Provisions and Legislative Action Overview Roughly every five years, Congress debates legislation governing federal farm and food policy. The 2002 farm bill (P.L. 107-171) covered a wide range of programs including commodity price and income support, farm credit, agricultural conservation, research, rural development, and foreign and domestic food programs, among others. In 2007, both the House and Senate completed committee and floor action on their respective versions of the new farm bill. However, conference negotiations were initially delayed because of differences between committee leadership and the Administration's position, largely over tax-related provisions needed to offset new spending in the bill. Many provisions of the 2002 farm bill expired in September 2007, but were continued under a series of temporary extensions to allow more time to resolve differences between the House- and Senate- passed bills. On May 8, 2008, House and Senate farm bill conferees announced the details of a completed conference agreement (H.R. 2419, the Food, Conservation, and Energy Act of 2008). The following week, both chambers completed floor action and approved the final conference agreement on the 2008 farm bill. The Bush Administration vetoed the legislation, but both the House and Senate voted to override the veto. On May 22, the 2008 farm bill was enacted into law (P.L. 110- 234). However, the newly enacted law contained only 14 of the 15 farm bill titles because an enrolling error resulted in one title of the bill being omitted from the version that was sent to the White House. To resolve this issue, both the House and Senate passed a version of the 2008 farm bill with all 15 original bill titles (H.R. 6124). The President vetoed H.R. 6124 on June 18. That same day, both the House and Senate voted to override the veto and the bill became law (P.L. 110-246), replacing P.L. 110-234. Congressional Action 2008 Farm Bill Policy Setting The 2007/2008 farm bill debate differed from the 2002 debate in some important ways. First, the 2008 farm bill faced potentially significant budgetary and spending constraints, while the 2002 farm bill was crafted during a period of budget surplus. Second, the 2008 farm bill debate was set against a backdrop of an ongoing multilateral negotiation, which targeted farm subsidies and challenged U.S. support and legal programs under existing trade rules. Third, the Bush Administration submitted its own detailed proposal for the new farm bill, whereas for other recent CRS-2 farm bills the Administration had not issued specific recommendations. Fourth, many other groups, including both traditional and non-agricultural interests, also submitted specific recommendations that ranged from maintaining the status quo to making dramatic policy changes. Budgetary Considerations. As with all federal programs, the farm bill debate was influenced by budgetary constraints imposed by Congress. Recent federal deficits raised concerns with respect to reauthorization or expansion of current farm programs. Prior to congressional consideration of a new farm bill, budget projections showed a lower baseline budget for agriculture programs, mainly because high commodity prices had caused projections of future farm program spending to fall sharply below previous projections. The Congressional Budget Office's (CBO's) March 2007 baseline budget served as the official benchmark for the FY2008 budget resolution and for scoring the budgetary impacts of the new farm bill. The CBO baseline assumed continuation of current farm bill policies under expected economic conditions. The budget resolution set the actual spending constraints for the agriculture committees as they drafted a new farm bill. In May 2007, Congress approved the FY2008 budget resolution, which adopted the baseline budget as the fiscal parameter for the next farm bill. It also included a $20 billion reserve fund (above baseline) for new farm bill spending over five years.1 However, any new spending was required to be deficit-neutral, meaning that it would have to be offset with equivalent reductions in other federal spending for existing mandatory programs, or by raising revenues. Large increases in the market prices of corn and other commodities since the summer of 2006 contributed to a lower March 2007 baseline for farm program spending. For example, the March 2007 baseline projected spending for commodity support payments under current law to be $42.4 billion for the FY2008-FY2013 period, about $30 billion lower than actual spending in the previous six years (Table 1). Baseline estimates for mandatory conservation and nutrition programs for the next six years were higher compared to the previous six years. Table 1. 2002 Farm Bill Actual Spending (FY2002-FY2007 est.) and the March 2007 CBO Baseline (FY2008-FY2013) (outlays in $ millions) Commodity Food Conservation Exports Total Support Stamps Baseline (FY08-FY13) 42,446 26,496 2,005 225,845 296,792 Actual (FY02-FY07) 72,934 18,323 1,648 178,158 271,063 Baseline vs. Actual -30,488 +8,173 +357 +47,687 +25,729 Source: Compiled by CRS from various Congressional Budget Office (CBO) baselines for 2007. The FY2008-2013 baseline is as of March 2007 and does not include the cost of the 2008 farm bill. The report section titled "Projected Cost" provides cost estimates of the 2008 farm bill. 1 Concurrent Resolution on the Budget for Fiscal Year 2008, Deficit-Neutral Reserve Fund for the Farm Bill (H.Rept. 110-153, conference report, Section 307). CRS-3 Trade Negotiations and Commitments. The farm bill debate was also influenced by obligations concerning the design and size of farm subsidies under the World Trade Organization (WTO) Agreement on Agriculture, as well as by the U.S. position in the Doha Round of multilateral negotiations. Agreement in the Doha Round was expected to converge in 2007 with the expiration of the 2002 farm bill, and to occur well before the June 30, 2007, expiration of Trade Promotion Authority (TPA), which provides for expedited congressional consideration of trade agreements. Some policymakers wanted a Doha Round agreement so that the next farm bill could be made consistent with new farm trade rules; others argued that the United States should not unilaterally change its own subsidy programs ahead of any multilateral trade agreement. Progress on the Doha Round stalled in 2006 and again in 2008, and criticisms and legal challenges by some WTO member countries of current U.S. farm programs have continued.2 The Administration's Policy Recommendations. In January 2007, the Bush Administration released its own detailed recommendations for the farm bill that aimed to substantially alter many aspects of the current commodity support system and other existing farm bill programs.3 The Administration's stated approach for designing its 2007 farm bill recommendations was to take a "reform-minded and fiscally responsible approach to making farm policy more equitable, predictable and protected from challenge."4 In part, this referred to the perceived need to more evenly distribute federal program spending and benefits across a larger share of the U.S. farm community, as well as the perceived need to modify current farm programs to better comply with WTO obligations and limit future legal challenges from other countries. Some of these same concerns were voiced in recommendations and proposals by other organizations and interest groups. The Administration's proposed changes would have also faced potential funding obstacles, given budget constraints for the 2008 farm bill. Nevertheless, President Bush repeatedly threatened to veto any legislation that included certain revenue and tax-related provisions being considered by Congress, as well as legislation that failed to implement certain policy changes, including cuts in farm income subsidies, among other policy issues and concerns.5 Also during the debate, the Administration 2 For more information, see CRS Report RL33144, WTO Doha Round: The Agricultural Negotiations; CRS Report RL33697, Potential Challenges to U.S. Farm Subsidies in the WTO; and CRS Report RL33853, Canada's WTO Case Against U.S. Agricultural Support. 3 USDA, USDA's 2007 Farm Bill Proposals, January 31, 2007, at [http://www.usda.gov/ documents/07finalfbp.pdf]. Reports and other related materials are at [http://www.usda. gov/wps/portal/!ut/p/_s.7_0_A/7_0_1UH?navid=FARM_BILL_FORUMS]. Also see CRS Report RL33916, The USDA 2007 Farm Bill Proposal: Possible Questions. 4 USDA, "Johanns Unveils 2007 Farm Bill Proposals," Release No. 0020.07, January 31, 2007, at [http://www.usda.gov/wps/portal/usdahome]. 5 Office of Management and Budget (OMB), Statement of Administration Policy, H.R. 2419, at [http://www.whitehouse.gov/omb/legislative/sap/110-1/hr2419sap-r.pdf] (House, May 25, 2007) and [http://www.whitehouse.gov/omb/legislative/sap/110-1/hr2419sap-s.pdf] (Senate, Nov. 6, 2007). CRS-4 recommended that Congress consider a one- or two-year extension of the current farm bill and take up a new farm bill in the next session.6 On May 21, President Bush vetoed the conference agreement on H.R. 2419. A second bill containing all 15 original farm bill titles, H.R. 6124, was again vetoed on June 18. Among the reasons cited by the Administration for the veto were Congress' inclusion of certain revenue and tax-related provisions in both bills. The Administration was also concerned that the legislation did not include certain policy reforms in farm income subsidies, and was concerned about possible incompatibility with U.S. obligations under the WTO, among other policy issues. Doha Round negotiations are continuing, however. If agreement is reached, then implementing legislation could require changes in some farm bill programs and limit spending on farm support. Other Recommendations/Proposals. The 2007/2008 farm bill debate differed from the 2002 debate in the number and scope of proposals seeking a range of changes to existing programs, as well as the addition of new ones. Many of these recommendations gained support within and outside Congress. In addition to the Administration proposal, several organizations and interest groups released their own farm bill recommendations. These included state organizations, national farm groups, commodity associations, conservation and rural development organizations, nutrition program advocates, and several non-traditional interest groups. These policy recommendations represented diverse interests seeking objectives ranging from maintaining current programs to substantially altering or eliminating them. Some recommendations were incorporated into bills introduced by some Members of Congress during the debate, who sought to directly challenge the existing farm legislation and programs through comprehensive and broad-based proposed legislative changes. Others in Congress were reluctant to change current programs because they are strongly supported by the long-time beneficiaries. Legislative Development In anticipation of the 2007 farm bill, both the House and Senate Agriculture Committees conducted hearings in Washington DC and across the country during 2006, and continued to hold hearings early in 2007.7 Early in 2007, the chairmen of both the House and Senate Agriculture Committees indicated their intention to complete work on a new farm bill prior to the August 2007 recess, with full congressional action by September. The House Agriculture Committee conducted its markup of its version of the farm bill (H.R. 2419) in mid-July, and completed House floor action on July 27, 2007. The Senate Agriculture Committee approved its version (S. 2302) in October and, on December 14, the Senate completed floor action on its bill, which was offered as a substitute amendment to the House bill (H.R. 2419). 6 For information about what could have happened if a new farm bill was not enacted and various provisions of the 2002 farm bill were to expire, see CRS Report RL34154, Possible Expiration of the 2002 Farm Bill. 7 Information on House and Senate Agriculture Committee hearings is at [http://agriculture. house.gov/hearings/index.html] and [http://agriculture.senate.gov/Hearings/hearings.cfm]. CRS-5 Conference negotiations were initially delayed because of differences between committee leadership and the Administration, and also differences between the House and Senate on how to resolve approaches to finance new spending above baseline using tax provisions not usually associated with farm bills. During this time, many provisions in the 2002 farm bill were set to expire in September 2007. Certain provisions were extended until March 15, 2008, under the Consolidated Appropriations Act for FY2008 (P.L. 110-161). Following this extension, Congress approved a series of additional temporary extensions, including a one-month extension and four consecutive short-term extensions lasting through May 23, 2008.8 Conferees began official meetings in April 2008. On May 8, 2008, House and Senate farm bill conferees announced the details of a completed conference agreement (H.R. 2419, the Food, Conservation, and Energy Act of 2008). On May 14, 2008, the House passed the conference agreement on the 2008 farm bill by a vote of 318-106. On May 15, the Senate passed the same bill by a vote of 81-15. Concurrently, on May 14, both the House and Senate passed, by voice vote, the final temporary extension of current law lasting until the earlier of May 23, 2008, or the date the 2008 farm bill was signed into law. On May 21, 2008, the Bush Administration vetoed the legislation. The House voted to override the veto by a vote of 316-108 also on May 21, followed by a Senate veto override by a vote of 82-13 the next day. On May 22, the 2008 farm bill was enacted into law (P.L. 110-234). However, an enrolling error resulted in one title of the bill (Title III, Trade) being omitted from the version that was sent to the White House. The newly enacted law contained 14 of 15 farm bill titles. To resolve this issue, both the House and Senate passed a version of the 2008 farm bill with all 15 original bill titles (H.R. 6124). The President vetoed H.R. 6124 on June 18, 2008. That same day both the House (80-14) and the Senate (317-109) voted to override the veto and the bill became law (P.L. 110-246), replacing P.L. 110-234. A timeline showing a chronology of major events is provided at the end of this report. Brief Overview of Provisions The enacted 2008 farm bill contains 15 titles covering support for commodity crops, horticulture and livestock production, conservation, nutrition, trade and food aid, agricultural research, farm credit, rural development, energy, forestry, and other related programs. It also includes tax-related provisions that make certain changes to tax laws in order to offset new spending initiatives in the rest of the bill. The 2008 farm bill replaces many of the provisions of the 2002 farm bill (P.L. 107-171) and guides most federal farm and food policies through 2012. The 2008 farm bill includes five new titles that were not in the 2002 farm bill, covering horticulture and livestock products, crop insurance and disaster assistance, commodity futures, and various tax and trade provisions. The text box shows the titles of the 2008 farm bill and briefly describes some title provisions. 8 March 12 (P.L. 110-196), April 17 (P.L. 110-200), April 24 (P.L. 110-205), May 1 (P.L. 110-208), and May 14 (P.L. 110-231). Information about what could have happened if the new farm bill was not enacted and provisions of the 2002 farm bill had expired is discussed in CRS Report RL34154, Possible Expiration (or Extension) of the 2002 Farm Bill. CRS-6 The 2008 Farm Bill: Titles and Respective Programs and Policies ! Title I, Commodities: Income support to growers of selected commodities, including wheat, feed grains, cotton, rice, oilseeds, peanuts, sugar, and dairy. Support is largely through direct payments, counter-cyclical payments, and marketing loans. Other support mechanisms include government purchases for dairy, and marketing quotas and import barriers for sugar. ! Title II, Conservation: Environmental stewardship of farmlands and improved management practices through land retirement and working lands programs, among other programs geared to farmland conservation, preservation, and resource protection. ! Title III, Agricultural Trade and Food Aid: U.S. agriculture export and international food assistance programs, and various World Trade Organization (WTO) obligations. ! Title IV, Nutrition: Domestic food and nutrition and commodity distribution programs, such as food stamps and supplemental nutrition assistance. ! Title V, Farm Credit: Federal direct and guaranteed farm loan programs. Also specifies loan eligibility rules and other policies. ! Title VI, Rural Development: Business and community programs for planning, feasibility assessments, and coordination activities with other local, state, and federal programs, including rural broadband access. ! Title VII, Research: Agricultural research and extension programs, including biosecurity and response, biotechnology, and organic production. ! Title VIII, Forestry: USDA Forest Service programs, including forestry management, enhancement, and agroforestry programs. ! Title IX, Energy: Bioenergy programs and grants for procurement of biobased products to support development of biorefineries and assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems, as well as user education programs. ! Title X, Horticulture and Organic Agriculture: A new farm bill title covering fruits, vegetables, and specialty crops and organic agriculture. ! Title XI, Livestock: A new farm bill title covering livestock and poultry production, including provisions that amend existing laws governing livestock and poultry marketing and competition, country-of-origin labeling requirements for retailers, and meat and poultry state inspections, among other provisions. ! Title XII, Crop Insurance and Disaster Assistance: A new farm bill title covering crop insurance and assistance previously included in the miscellaneous title (not including the supplemental disaster assistance provisions in the Trade and Tax title). ! Title XIII, Commodity Futures: A new farm bill title covering reauthorization of the Commodity Futures Trading Commission (CFTC) and other changes to current law. ! Title XIV, Miscellaneous: Other types of farm programs and assistance not covered in other bill titles, including provisions to assist limited-resource and socially disadvantaged farmers, agricultural security, and other provisions. ! Title XV, Trade and Tax Provisions: A new title covering tax-related provisions intended to offset spending initiatives for some programs, including those in the nutrition, conservation, and energy titles. The title also contains other provisions, including the new supplemental disaster assistance and disaster relief trust fund. CRS-7 For commodities (Title I), the enacted 2008 farm bill generally continues the framework of the 2002 farm bill, but with changes to program eligibility criteria and payment limitations, and adjustments to target prices and loan rates for some commodities, covering the 2008 through 2012 crop years. The bill creates a new Average Crop Revenue Election (ACRE) program beginning in crop year 2009. It also adds new provisions to address horticulture and livestock issues, and creates two new titles to address these sectors (Title X and Title XI). The bill provides mandatory funding for specialty crop block grants and adds new provisions supporting pest and disease programs, new funding for growth of farmers' markets and for transitioning producers to organic production, and price reporting and organic data collection, among other provisions. New animal agriculture provisions include changes to existing laws governing livestock and poultry marketing and competition, and changes in country-of-origin labeling requirements and meat and poultry inspections. The nutrition title (Title IV) reauthorizes and increases funding for most farm bill authorized programs. It increases benefits and makes more households eligible under in the Food Stamp program, which the farm bill conferees have renamed the Supplemental Nutrition Assistance program. The 2008 farm bill also provides new spending to increase purchases of commodities for The Emergency Food Assistance Program (TEFAP), expands the Fresh Fruit and Vegetable program, and adds funding for the Senior Farmers' Market Nutrition program (SFMNP). The bills' international food aid and trade provisions (Title III) reauthorize funding for USDA's international food aid export market development, export credits, and export guarantees, and also address barriers to U.S. agriculture exports. Under the conservation (Title II), energy (Title IX), rural development (Title VI), and forestry titles (Title VIII), the 2008 farm bill reauthorizes, expands, and modifies many existing programs, creates new programs and initiatives, and allows some programs to expire. The bill also reauthorizes, expands, and modifies many of the existing provisions under the research title (Title VII) by requiring the reorganization of USDA's research, extension, and economic agencies. The 2008 farm bill expands borrowing opportunities under USDA's Farm Service Agency loan program (Title V). It also creates a new farm bill title to modify crop insurance (Title XII), which provides significant savings to offset the cost of new spending in other parts of the bill. Provisions in the bill also provide ongoing disaster assistance (Title XV) and address agricultural security and animal quarantine inspections (Title XIV). The bill includes revenue and offsetting cost provisions that are outside the jurisdiction of the agriculture committees. These provisions make certain changes to tax laws that are intended to offset additional spending in the farm bill, and were added by both chambers to comply with current pay-go budget rules (Title XV). The 2008 farm bill also includes the reauthorization of and modifications to the Commodity Futures Trading Commission (CFTC). The report section titled "Summary of the 2008 Farm Bill Provisions" provides more detailed discussions of the major provisions in the final conference agreement and in the House and Senate versions of the farm bill. CRS-8 Projected Cost The Congressional Budget Office (CBO) estimates the total cost of the 2008 bill (i.e., baseline plus new funding, using the March 2007 baseline) at $284 billion over FY2008-FY2012 and $604 billion over FY2008-FY2017 (Table 2).9 The costs discussed in this report are mandatory outlays that do not require appropriations actions. The farm bill also authorizes discretionary programs that require appropriators to allocate funds and thus are not reflected in the table. Table 2 provides a title-by-title breakdown of CBO spending estimates for the enacted 2008 farm bill, covering both FY2008-FY2012 and FY2008-FY2017. The overwhelming share (more than 95%) of estimated total net outlays for programs included in the farm bill is anticipated to be spent on programs and activities covered by the nutrition (67%), the commodities (15%), the conservation (9%), and crop insurance titles (8%). Of the $284 billion in projected total five-year net outlays for programs under the farm bill -- including revenue and cost-offset provisions in the bill -- about $42 billion in projected spending will support commodity crops, $189 billion will support the cost of food stamps and commodity assistance, $24 billion will support conservation programs, and $22 billion will support crop insurance. For FY2008-FY2012, the enacted bill also includes nearly $4 billion in new spending for supplemental disaster assistance (included under Title XV). Another $10 billion is expected to be spent on trade, horticulture and livestock production, rural development, research, forestry and energy, and other programs. Tax-related provisions -- particularly from customs user fees and corporate estimated tax payments in the bill -- along with cost savings from some farm bill programs, are expected to generate additional funding to offset any new spending. CBO estimates that offsets in the bill total more than $10 billion over five years (FY2008-2012) (Table 2), which includes tax-related provisions, and proceeds from the credit, crop insurance, and commodity program titles. Disaster assistance and programs under the nutrition and conservation titles account for the majority of the new spending in the bill. 2008 Farm Bill Implementation Many of the program changes included in the 2008 farm bill will require action by USDA to develop regulations and guidelines. How USDA interprets these changes and follows through with modifications at the program level will likely be subject to additional scrutiny over the coming year, especially since many of these legislative changes must be made by dates specified in the farm bill. 9 Estimates reflect the cost of the bills' mandatory programs only. The bills also include authorization of appropriations for discretionary programs not included in these estimates. The March 2007 baseline is used because the House, the Senate, and the conferees structured their provisions in relation to this baseline. If the March 2008 baseline were used, the bill's cost would be at least $4 billion over FY2008-FY2017. CRS-9 Table 2. CBO Estimated Costs for the 2008 Conference Agreement on the Farm Bill (FY2008-FY2012) (outlays in million $) FY2008-FY2012 FY2008-FY2017 Baseline CBO Score Total Baseline CBO Score Total (change) (change) Commodities (Title I) 43,354 (1,726) 41,628 87,179 (1,658) 85,521 Conservation (Title II) 21,392 2,720 24,112 50,699 4,000 54,699 Trade/Food Aid (Title III) 1,823 30 1,853 3,715 (78) 3,637 a Nutrition (Title IV) 186,005 2,897 188,902 397,131 9,218 406,349 Credit (Title V) (1,046) (378) (1,424) (2,321) (306) (2,627) Rural Development (Title VI) 72 122 194 72 149 221 Research (Title VII) 290 31 321 1,290 (907) 383 Forestry (Title VIII) 0 38 38 0 45 45 Energy (Title IX) 41 602 643 43 836 879 Horticulture/Organic (Title X) -- 402 402 -- 938 938 Livestock (Title XI) -- 1 1 -- 1 1 Crop Insurance (Title XII) 25,718 (3,860) 21,858 52,743 (5,591) 47,152 Commodity Futures (Title XIII) -- 0 0 -- 0 0 Miscellaneous (Title XIV)b 6,338 44 6,382 13,668 (138) 13,530 Disaster Assistance (Title XV) -- 3,807 3,807 -- 3,807 3,807 Tax/Other (Title XV) -- (4,798) (4,798) -- (10,429) (10,429) 283,987 (66) 283,921 604,218 (107) 604,111 Source: Compiled by CRS using the Congressional Budget Office (CBO) March 2007 baseline and CBO score of the conference agreement for H.R. 2419, the Food, Conservation, and Energy Act of 2008; also Senate Finance Committee, Estimated Revenue Effects of the Conference Agreement for Title XV of H.R. 2419, Fiscal Years 2008-2018, 08-2 068 R10 (Preliminary), May 13, 2008. May not add due to rounding. a. New outlays for the expanded Fresh Fruit and Vegetable program required in the nutrition title, $274 million (FY2008-FY2012) and $1.020 billion (FY2008-FY2017), are not reflected in this table because they are effectively offset with money from permanent appropriations under Section 32, mandated in Title XIV. b. Excludes estimates for crop insurance provisions previously included as part of the farm bill's miscellaneous provisions. Requirements and/or regulatory guidelines will be needed to implement various newly enacted or modified program provisions. For example, these include the new revenue-based counter-cyclical program and new requirements on producer payment limits (Title I); new mandatory country-of-origin labeling for certain livestock, and poultry, and other products, as well as new state meat and seafood inspections (Title XI); and new mandatory provisions for fruit and vegetable crops and organic agriculture (Title X). The farm bill's new Supplemental Agricultural Assistance programs (Title XV) will require regulations to implement, with the biggest implementation issue involving the timeliness of payments under the crop disaster assistance portion of the programs. In addition, the farm bill's research title (Title VII) takes major step in consolidating programs and planning in USDA's agricultural research, education, and economics mission area, which will merge three existing USDA agencies. The farm bill's nutrition title (Title IV) makes changes to several existing nutrition programs but requires little or no federal guidance as to their implementation because they are "self-executing" (e.g., change or remove a specific dollar amount specified in law), call for minimal revisions to existing rules, or are CRS-10 state/local options. However, some initiatives, like the fresh fruit and vegetable program, may be revisited in the 111th Congress when it takes up a scheduled reauthorization of child nutrition laws. Other programs and provisions throughout the farm bill -- covering conservation, forestry, energy, and rural development, among others -- will also require new requirements and regulatory guidelines to implement. In June, 2008, USDA announced its plans for developing implementation structures and procedures for the 2008 farm bill.10 As part of this plan, USDA began working on a timeline for various priority items and regulatory development, identifying responsible implementing agencies and also cross-cutting issues, working with the Office of Management and Budget (OMB) on the rulemaking process, and identifying action items for immediate action, among other steps. Earlier media reports, however, have USDA asserting it might need more money beyond the $50 million that Congress provided to implement the new farm bill;11 other reports suggest that technology needs at USDA could slow delivery of these enacted program changes.12 In October 2008, USDA representatives told key congressional committee staff that implementation of the 2008 farm bill would involve the development of more than 150 individual regulations.13 An estimated 40 regulations are will be developed by USDA's Farm Service Agency (FSA); an estimated 24 regulations would be required within a short turnaround, given that Congress had specified that regulations be developed within 90 days of bill enactment. USDA representatives indicated that there could be delays in the rulemaking process because of the "massive workload" required and possible backlog in Federal Register publications.14 Summary of the 2008 Farm Bill Provisions The following is a discussion of the major provisions in the 2008 farm bill. As with any omnibus bill covering many issues and laws, the 2008 farm bill may contain technical inconsistencies that are likely to be rectified in a later law. The effects of these inconsistencies are not reflected in the following side-by-side. Following the discussion is a detailed side-by-side comparison summarizing the major provisions in the 2008 farm bill and comparing the enacted bill provisions with 10 USDA, "USDA Implementation of the 2008 Farm Bill (as of June 17, 2008)." Information provided to House Agriculture Committee staff. 11 J. Hagstrom, "USDA Says It Needs More Cash to Implement Farm Bill," National Journal, June 26, 2008. 12 S. Wyant, "USDA Forges Ahead with Farm Bill Implementation," High Plains Journal, June 5, 2008, at [http://hpj.com/archives/2008/jun08/jun9/USDAforgesaheadwithfarmbill. cfm]. 13 USDA, "Farm Bill Implementation Status report for Congressional Staff," October 3, 2008. Information provided to House Agriculture Committee staff. 14 Statements during a briefing to House Agriculture Committee staff, October 3, 2008. CRS-11 previous law and provisions in the House- and Senate-passed bills. USDA's Economic Research Service (ERS) also has published a side-by-side comparison of the 2008 and the 2002 farm bills, as enacted.15 Title I: Commodity Programs Grains, Oilseeds, and Cotton Support. The enacted 2008 farm bill generally continues the farm commodity price and income support framework of the 2002 farm bill. It revises payment limitations by tightening some limits and relaxing others, and adjusts target prices and loan rates for some commodities. It continues the direct payment, counter-cyclical payment, and marketing loan programs for the 2008 through 2012 crop years. The enacted bill also creates a pilot revenue-based counter-cyclical program beginning with the 2009 crop year. It also has a pilot program for planting flexibility, restrictions on base acres developed for residential use, and a new provision that eliminates benefits to farms with fewer than 10 acres. For direct payments, the payment rates per commodity remain the same as under the 2002 farm bill, but the overall formula contains a 2% reduction in direct payments for crop years 2009-2011. This is accomplished by changing the ratio of base acres on which direct payments are made from 85% to 83.3% of base acres. The 85% ratio is restored for the 2012 crop year to maintain baseline for the next farm bill at a higher level. The reduction to 83.3% does not affect the counter-cyclical payment formula. The final bill also adopts House and Senate provisions that eliminate making advance direct payments in the 2012 crop year and thereafter. This provision delays payment of 22% of the direct payment amount from December to the following October, thus into a new fiscal year and allowing the farm bill to score budget savings of about $1.1 billion in FY2012. Farmers will have to wait longer, but will receive their full payment. Support levels for counter-cyclical payments and marketing loans are adjusted with many crops receiving notable increases, and support for cotton being reduced slightly. Several commodity groups felt that their support levels were not high enough relative to other commodities in the 2002 farm bill, and did not receive counter cyclical support ever or as often (e.g., wheat, soybeans). For counter-cyclical payments, six out of 10 commodities have an increase in their target price (wheat, sorghum, barley, oats, soybeans and minor oilseeds), one has a small decrease (cotton), and four are new in 2009 (dry peas, lentils, small chickpeas, large chickpeas). For marketing loans, eight out of 20 commodities have an increase in their loan rate (wheat, barley, oats, minor oilseeds, graded wool, honey, cane sugar, beet sugar), two have a decrease (dry peas, lentils), and one is new in 2009 (large chickpeas). The 2008 farm bill does not change the "beneficial interest" rules, and thus continues to allow farmers to lock in their loan deficiency payments (LDP) when market prices are low, continue to own the commodity, and sell it at a future and possibly higher market price. Policy makers want farmers to continue to have the 15 USDA, ERS, The 2008 Farm Bill Side-By-Side Comparison, at [http://www.ers.usda.gov/ FarmBill/2008/]. CRS-12 flexibility to market their commodities in response to market signals and benefit from the program, but advocates for change point out that if farmers can sell their crop for more than the support price, then government support should be unnecessary. The Bush Administration had identified this as one of its priorities for commodity title reform. For the new revenue counter-cyclical option -- the Average Crop Revenue Election (ACRE) program -- the final bill adopted the Senate approach, but with significant modifications. Compared to the Senate-passed bill, the ACRE program starts a year earlier in 2009 with less change to its interaction with direct payments and marketing loans. The House-passed farm bill offered a pilot revenue counter-cyclical program based on national-level revenues, while the Senate-passed bill offered a state-level revenue counter-cyclical pilot program beginning in 2010 that replaced direct payments with a "fixed payment" and offered only recourse loans. Farmers will choose either the traditional price-triggered counter-cyclical program or the new revenue-based ACRE option. Participants in the ACRE program will continue to receive direct payments, but at a 20% reduced rate. Participants will also continue to be eligible for nonrecourse marketing loans, but with a 30% lower loan rate. To receive an ACRE payment, two triggers need to be met. First, the actual state revenue for a supported crop during the crop year must be less than the state-level revenue guarantee amount. Second, an individual farm's actual revenue for a supported crop during the crop year must be less than the farm's benchmark revenue. Benchmark yields at the state and farm levels are Olympic averages (dropping the highest and lowest price) of the most recent five years. Price guarantees are averages of the marketing year price (or the marketing loan rate reduced by 30%, if greater) for the most recent two years. If both triggers are met, an individual farm will receive an ACRE payment that is based on the state-level difference between actual revenue and the ACRE guarantee per acre multiplied by a percentage (83.3% or 85% depending on the crop year) of the farm's planted acreage, but pro-rated based on the individual farm's yield history compared to the state's yield history. The White House has criticized the ACRE program because its two-year price guarantee feature will incorporate the historically high recent market prices into the guarantee, and consequently possibly require large payments to farmers if market prices decline from their currently record high levels in 2007 and 2008. The White House has argued that the CBO score does not reflect the magnitude of this possibility because market prices in the baseline are assumed to remain high. The 2008 farm bill also includes a pilot planting flexibility program for fruits and vegetables for processing, while continuing the overall restriction on planting fruits and vegetables on base acreage. The pilot program begins in 2009, and allows farmers in seven midwestern states to plant base acres to cucumbers, green peas, lima beans, pumpkins, snap beans, sweet corn, and tomatoes grown for processing. Their base acres are temporarily reduced for the year (resulting in lower direct and counter-cyclical payments), but restored for the next crop year. The states include Minnesota (34,000 acres), Wisconsin (9,000 acres), Michigan (9,000 acres), Illinois (9,000 acres), Indiana (9,000 acres), Ohio (4,000 acres), and Iowa (1,000 acres). CRS-13 The farm bill includes a Senate provision that eliminates base acres on land that had been subdivided into multiple residential units or other non-farming uses. Prior rules have eliminated base only for land developed for nonagricultural commercial or industrial use. The farm bill also eliminates payments to farms with fewer than 10 base acres of all crops, except for farms owned by socially disadvantaged or limited-resource farmers and ranchers. The acreage approach is different than a House provision which set a minimum threshold of $25 per type of payment. The Senate had no similar provision. The bill requires USDA to reconcile social security numbers of program recipients with a Social Security database twice a year to assure program beneficiaries are alive, and to issue regulations describing how long a deceased person's estate may continue to qualify for program benefits. This is less specific than the Senate provision, which specified a two-year period. This provision is in response to a 2007 GAO report showing that farm commodity payments continue to be paid to deceased farmers or their estates beyond the two-year regulation. Payment Limits. Two types of payment limits exist. One sets the maximum amount of farm program payments that a person can receive per year. The other sets the maximum amount of income that an individual can earn and still remain eligible for program benefits (a means test). Regarding the limit on the amount of payments, the enacted 2008 farm bill continues the $40,000 limit on direct payments and $65,000 limit on counter-cyclical payments. The counter-cyclical limit will apply to both traditional and revenue counter-cyclical payments. The final bill does not place any limit on marketing loan benefits, and thus they are now unlimited. In the 2002 farm bill, marketing loan benefits were limited to $75,000 per farm per year, but use of commodity certificates and forfeiture were unlimited, thus creating equity issues. The 2008 farm bill still allows doubling of those limits by having a spouse, but eliminates the "three-entity rule" that formerly allowed an alternative means of doubling by having multiple farms with different ownership arrangements. Along with elimination of the three-entity rule, the conference agreement requires "direct attribution" of program benefits to a living person. If a program payment cannot be traced to a living person within four levels of ownership, the payment to the original entity owning the farm is reduced proportionately. Under the 2002 farm bill, the limit on payments was commonly regarded as $360,000 per farm per year.16 Given the elimination of limits on the marketing loan program, an equivalent comparison to the 2008 farm bill is difficult. The limit on direct and counter-cyclical payments continues to be $210,000 per farmer couple per year.17 16 Calculated as follows: $40,000 + $65,000 + $75,000 = $180,000 (doubled to $360,000). 17 Calculated as follows: $40,000 + $65,000 = $105,000 (doubled to $210,000). CRS-14 Regarding the adjusted gross income (AGI) limit, the 2008 farm bill adopts a slightly different approach than the 2002 farm bill or the House or Senate bills. Formerly, the AGI limit had an exception if a certain proportion of AGI (e.g., 75%) was earned from farming sources. The 2008 farm bill eliminates the exception and creates two new measures of AGI: adjusted gross nonfarm income, and adjusted gross farm income. First, if a three-year average of nonfarm AGI exceeds $500,000, then no program benefits are allowed (direct, counter-cyclical and marketing loan). Second, if a three-year average of farm AGI exceeds $750,000, then no direct payments are allowed (but counter-cyclical and marketing loan benefits are allowed for these higher-income farmers). Program participants can have income from both sources, but the caps for each type are "hard" caps (that is, there are no exceptions to the cap as with "soft" caps, except that the cap on farm AGI applies only to direct payments). For example, if a full-time farmer has nonfarm AGI over $500,000, their program payments are eliminated regardless of their farm income. A taxpayer's AGI may also be between $750,000 and $1.25 million and still receive program benefits if the income is split in such a way to remain below the caps on farm and nonfarm income. Moreover, the 2008 farm bill adopts a Senate provision that allows AGI of a married couple to be divided as if separate tax returns were filed. While in principle this provision could allow doubling of the AGI limits, the income needs to be legitimately allocated between the spouses, likely by Social Security numbers or equivalent identifiers. For more information on the commodity programs above and payment limits, see CRS Report RL34594, Farm Commodity Programs in the 2008 Farm Bill. Dairy. Two federal programs that support milk prices and dairy farm income were among the farm bill programs set to expire in 2007 -- the dairy price support program (DPSP) and the Milk Income Loss Contract (MILC) program. In the past under the DPSP, USDA had been required to indirectly support the farm price of milk, most recently at $9.90 per cwt. (100 pounds), which it has done by purchasing surplus butter, nonfat dry milk, and cheese at specified minimum prices. The 2008 farm bill continues the DPSP through December 2012, but modifies the program by specifying, in the law itself, the minimum purchase prices for these manufactured dairy products. If net removals (essentially, USDA's surplus purchases) for 12 consecutive months exceed statutory limits, USDA may reduce product purchase prices, under the final law. Under expiring law, the MILC program had paid participating farmers 34% of the difference between a target price of $16.94 per cwt. and the monthly market price for farm fluid milk in New England, when the market price is below the target. Per farm payments had been limited to the first 2.4 million lbs. of annual milk production. The enacted 2008 farm bill extends the program, but generally increases the payment factor to 45% of the price differential for the period from October 1, 2008, through August 31, 2012, as proposed by the Senate. Conferees also increased the production limit for payments to 2.985 million pounds, compared with a Senate proposal that would have raised the limit to 4.15 million pounds. Furthermore, the $16.94 per cwt. payment rate must be adjusted to reflect feed cost increases above CRS-15 trigger levels specified in the enacted farm bill. CBO has estimated the total net five-year increase in outlays for the bill's key dairy provisions at $386 million. A third ongoing federal dairy policy tool, federal milk marketing orders, require dairy processors to pay a minimum price for farm milk depending on its end use (i.e., the type of product produced). Federal orders are permanently authorized, but a number of issues were brought to the attention of Congress for the farm bill debate. Dairy processors had been seeking a change in statute to exempt them from paying the federal milk marketing order minimum price whenever they forward contract prices with dairy farmers. The 2008 farm bill authorizes farmers to voluntarily enter into forward price contracts until September 30, 2012, with none to extend beyond September 30, 2015. The legislation contains safeguards designed to ensure that dairy farmers are not compelled by processors to participate in the program. The final bill also establishes, subject to the availability of appropriations, a commission to review and evaluate federal milk marketing order policies and procedures, and in the meantime revises the formal hearing procedures used to consider amendments to the orders. Other dairy-related provisions in the enacted bill bring Alaska, Hawaii, the District of Columbia, and Puerto Rico into the dairy research and promotion (check- off) program; lower the promotion program's assessment rate for imported products to 7.5 cents per cwt.; extend the dairy indemnity program; and provide for new USDA directives related to dairy product price reporting. For more information, see CRS Report RL34036, Dairy Policy and the 2008 Farm Bill. Sugar. The sugar program is designed to guarantee the price received by growers and processors of sugar beets and sugarcane, but at no cost to the U.S. Treasury. To accomplish this, USDA limits the amount of sugar that processors can sell domestically under "marketing allotments" and restricts imports, in order to keep market prices above support levels. This way, the incentive exists for sugar cane processors and beet refiners to repay nonrecourse price support loans18 extended by USDA rather than hand over processed sugar as payment (commonly referred to as loan forfeitures). To address the potential for a U.S. sugar surplus caused by unrestricted imports from Mexico under the North American Free Trade Agreement (NAFTA) and from other countries under other free trade agreements, and the resulting loan forfeitures, the 2008 farm bill mandates a sugar-for-ethanol program. USDA is now required to purchase U.S.-produced sugar roughly equal to excess imports, if necessary to maintain market prices above support levels. The sugar purchased must then be sold to bioenergy producers for processing into ethanol. USDA's Commodity Credit Corporation will provide open-ended funding for this program. Other provisions 18 A type of loan where farmers or processors pledge a commodity as collateral to obtain a loan from the Commodity Credit Corporation (CCC) at a commodity-specific, per-unit loan rate. The borrower may repay the loan, with interest, within a specified period and regain control of the commodity. Alternatively, the commodity can be forfeited to the CCC with no penalty if market prices fall below the loan rate at the end of the term. The government takes no recourse beyond accepting the commodity as full settlement of the loan. CRS-16 increase the raw sugar and refined beet loan rates by 4%-5% by FY2012, mandate an 85% domestic market share for the U.S. sugar producing sector, and remove some of the discretionary authority that USDA exercises to administer import quotas. Though CBO scored some savings for the ethanol program, it projects the sugar program will cost about $650 million over five years. The Bush Administration opposed the program, arguing that instead of reform, its provisions "actually increase government intervention to drive up sugar prices." It asserted that the sugar-for- ethanol component will operate at a "huge loss" as excess sugar supply is auctioned off to ethanol processors.19 For more background, see CRS Report RL34103, Sugar Policy and the 2008 Farm Bill. Title II: Conservation The 2008 farm bill reauthorizes almost all 2002 farm bill conservation programs, modifies several programs, and creates several new conservation programs. CBO-estimated new spending on the conservation title -- not including estimated conservation-related revenue and cost-offset provisions in the bill -- is projected to increase by $2.7 billion over 5 years and $4.0 billion over 10 years. Total mandatory spending (new spending plus baseline) for the conservation title is projected at $24.3 billion over 5 years (FY2008-FY2012) and $55.2 billion over 10 years (FY2008-FY2017). Conservation programs administered by USDA can be broadly grouped into land retirement programs and so-called "working lands" programs. In general, land retirement and easement programs take land out of crop production and provide for program rental payments and cost-sharing to establish longer term conservation coverage, in order to convert the land back into forests, grasslands, or wetlands. Working lands programs provide technical and financial assistance to assist farmers to improve land management practices. Major land retirement and easement programs include the Conservation Reserve Program (CRP) and the Conservation Reserve Enhancement Program (CREP), the Wetlands Reserve Program (WRP), the Grasslands Reserve Program (GRP), and the Farmland Protection Program (FPP), among other programs. Major working lands programs include the Environmental Quality Incentives Program (EQIP), the (renamed) Conservation Stewardship Program (CSP), the Agricultural Management Assistance (AMA) program, and the Wildlife Habitat Incentives Program (WHIP), among others. Changes to existing programs address eligibility requirements, program definitions, enrollment and payment limits, contract terms, evaluation and ranking criteria, and other administrative issues. In general, the conservation title includes certain changes that expand eligibility and the delivery of technical assistance under most programs to cover more broadly, for example, forested and managed lands, pollinator habitat and protection, and identified natural resource areas, among other 19 White House, Office of the Press Secretary, "Fact Sheet: Congress' Farm Bill Is Bad for American Taxpayers," May 9, 2008, available at [http://www.whitehouse.gov/news/releases/ 2008/05/print/20080509.html]. CRS-17 expansions. Producer coverage across most programs is also expanded to include beginning, limited resource, and socially disadvantaged producers; speciality crop producers; and producers transitioning to organic production. The enacted bill also creates new conservation programs to address emerging issues and priority resource areas, and also new subprograms under existing programs. The majority of the agriculture and farmland conservation groups have responded favorably to the expanded provisions and increased funding for programs in the conservation title of the 2008 farm bill. However, a few wildlife groups have expressed concern about changes that were made to some provisions during the conference negotiations, which they perceive as providing fewer benefits for the protection of wildlife and wildlife habitat. Among the concerns expressed by these groups are the reduction in the CRP acreage enrollment cap, easing of the requirements under the so-called sodsaver provision, limitations on the types of lands eligible under WHIP, and the new permanent disaster fund, which could encourage marginal land plantings, among other concerns. Land Retirement/Easement Programs. The largest conservation program in terms of total annual funding is the CRP. The enacted bill caps CRP enrollment at 32 million acres, down from its previous cap of 39.2 million acres. The managers report on the conference agreement states this reduction is "not ... an indicator of declining or reduced support for CRP;" however, in other sections of the report USDA is encouraged to assist producers who are transitioning from land retirement to working lands conservation. The bill makes certain program changes, including allowing for USDA to address state, regional, and national conservation initiatives; expanding the program to cover beginning and socially disadvantaged farmers/ ranchers; allowing for certain types of managed grazing and installation of wind turbines on enrolled lands (but at reduced rates); requiring that program participants manage lands according to a conservation plan; requiring USDA to survey annually the per-acre estimates of county cash rents paid to CRP contract holders; clarifying the status of alfalfa grown as part of a rotation practice; and establishing cost-sharing rates for certain types of conservation structures. The bill also modifies the pilot program that allows for wetland and buffer acreage to enroll in CRP, subject to state acreage and maximum size limitations.20 The bill increases the WRP maximum enrollment cap to over 3.014 million acres (up from a previous cap of 2.275 million acres), and expands eligible lands to include certain types of private and tribal wetlands, croplands, and grasslands, as well as lands that meet the habitat needs of specific wildlife species. The 2008 farm bill authorizes a new Wetlands Reserve Enhancement Program, to establish agreements with states similar to that for CREP, which includes a Reserved Rights Pilot program to explore whether reserving grazing rights is compatible with WRP. The bill makes certain program changes, including changing the payment schedule for easements; specifying criteria for ranking program applications; requiring that USDA conduct an annual survey starting with FY2008 of the Prairie Pothole Region in the northern 20 Acreage in CREP -- a subprogram within CRP -- would be excluded from the CRP county acreage cap in order to encourage greater program participation. CRS-18 Great Plains area; and requiring USDA to submit a report to Congress on long-term conservation easements under the program. For GRP, the enacted bill adopts a new acreage enrollment goal of an additional 1.2 million acres by 2012, with 40% of funds for rental contracts (10-, 15-, and 20- year duration) and 60% for permanent easements. The bill modifies terms and conditions of GRP contracts and easements to permit fire presuppression and addition of grazing-related activities, such as fencing and livestock watering. It does not include a Grassland Reserve Enhancement provision, as proposed in the House. For FPP, the bill makes several technical changes to the program, covering the program's administrative requirements, appraisal methodology, and terms and conditions, among other issues. The farm bill conferees did not to rename FPP as the "Farm and Ranchland Protection Program," as the program is often referred to by USDA. The bill provides additional budget authority for FPP of $773 million (FY2008-2012). Working Lands Programs. EQIP and CSP are the two largest USDA working lands programs, and received additional budget authority under the 2008 farm bill. The enacted bill did not adopt a Senate proposal that would have closely coordinated CSP and EQIP under the so-called Comprehensive Stewardship Incentives Program. For EQIP, the enacted bill expands the program to cover practices that enhance soil, surface and ground water, and air quality, and conserve energy; it also covers grazing land, forestland, wetland, and other types of land and natural resources that support wildlife. The bill sets aside 5% of EQIP spending for beginning farmers and ranchers and 5% for socially disadvantaged farmers and ranchers, providing up to 90% of the costs of implementing an EQIP plan for these farmers. It also provides payments to assist tribal or native corporation members, and producers transitioning to organic production. The bill lowers the EQIP payment limit to $300,000 (down from $450,000) in any six-year period per entity, except in cases of special environmental significance, including projects involving methane digesters, as determined by USDA. Projects with organic production benefits are capped at $20,000 annually or $80,000 in any six-year period. The enacted bill retains the requirement that 60% of funds be made available for cost-sharing to livestock producers, including incentive payments for producers who develop a comprehensive nutrient management plan. The bill modifies EQIP's Conservation Innovation Grants program to cover air quality concerns associated with agriculture (including greenhouse gas emissions). It also replaces the Ground and Surface Water Conservation Program within EQIP with a new Agricultural Water Enhancement Program (AWEP) to address water quality and quantity concerns on agricultural land, highlighting certain priority areas and providing additional mandatory funds for the program. The bill provides additional budget authority for EQIP of $3.4 billion (FY2008-2012). CRS-19 For CSP, the enacted bill replaces the Conservation Security Program with a new and renamed Conservation Stewardship Program (CSP).21 The new CSP, beginning in 2009, will continue to encourage conservation practices on working lands, but will be different than the former program in that it eliminates the three-tier approach, removes 10-year contracts, and requires direct attribution of payments, among other changes, thus requiring that USDA promulgate new rules for the program. The bill sets a target of enrolling more than 13 million acres annually in the new program, with individual producer payments limited to $200,000 per entity in any five-year period. The types of eligible lands are expanded to include priority resource concerns, as identified by states; certain private agricultural and forested lands; and also some nonindustrial private forest lands (limited to not more than 10% of total annual acres under the program). Technical assistance will also be provided to specialty crop and organic producers, along with pilot testing of producers who engage in innovative new technologies. Supplemental payments may be available to producers who engage in certain types of crop rotations. Program payments may not be used for the design, construction, or maintenance of animal waste storage or treatment facilities or associated waste transport or transfer devices. Among other programs, the 2008 farm bill reauthorizes WHIP at current funding levels, but limits program eligibility to focus on lands "for the development of wildlife habitat on private agricultural land, nonindustrial private forest land, and tribal lands," thus potentially excluding some previously covered areas. It also allows USDA to provide priority to projects that address issues raised by state, regional, and national conservation initiatives. The bill raises the limit on cost-share payments to 25% for long-term projects under WHIP and limits total payments to $50,000 per year. The bill also authorizes increased funding for several programs, including the Grassroots Source Water Protection Program and the Small Watershed Rehabilitation Program; it also provides additional mandatory funding for AMA and includes Hawaii as an eligible state under that program. New Conservation Programs. The 2008 farm bill expands the range of USDA conservation activities and creates several new programs, including a program expanding conservation activities in the Chesapeake Bay region, a new state grants program, a provision to limit production on native sod, and provisions promoting market-based approaches to conservation. The new Chesapeake Bay Watershed Program applies to all tributaries, backwaters, and side channels, including watersheds, draining into the Chesapeake Bay, but gives priority to the Susquehanna, Shenandoah, Potomac, and Patuxent Rivers. The bill authorizes $438 million in total mandatory funding for FY2009- FY2012. The Voluntary Public Access and Habitat Incentives Program (also referred to as the "Open Fields" program) authorizes state grants to encourage landowners to provide public access for wildlife-dependent recreation, subject to a 25% reduction for the total grant amount if the opening dates for migratory bird hunting in the state are not consistent for residents and non-residents. The bill provides $50 million in mandatory funds for FY2009-FY2012 for the program. The so-called sodsaver provision makes producers that plant an insurable crop (over 5 acres) on native sod 21 Funding is made available for contract under the former CSP program. CRS-20 ineligible for crop insurance and the noninsured crop disaster assistance program for the first five years of planting. The enacted 2008 farm bill states that this provision may apply to virgin prairie converted to cropland in the Prairie Pothole National Priority Area, if elected by the state. Finally, the bill includes a provision intended to facilitate the participation of farmers and landowners in emerging environmental services markets, such as water and air quality, habitat protection, and carbon storage. The farm bill directs USDA to establish a framework for developing consistent standards and processes for quantifying environmental services from the agriculture and forestry sectors, but does not authorize funding for this effort. For more detailed information, see CRS Report RL34557, Conservation Provisions of the 2008 Farm Bill. For more information on individual conservation programs and past conservation funding, see CRS Report RL33556, Soil and Water Conservation: An Overview. For more information on conservation programs and funding, see CRS Report RL32940, Agricultural Conservation Programs: A Scorecard. Title III: Trade The 2008 farm bill reauthorizes, in Title III of the farm bill, programs that provide international food aid and that promote U.S. commercial agricultural exports. A relatively few export programs are terminated, while selected others receive increased funding. Food Aid. The United States is the world's largest provider of food aid, accounting for about 60% of total global food aid over the last decade. The bill extends P.L. 480 food aid programs through 2012 and changes the title of the underlying act from Agricultural Trade Development and Assistance Act to Food for Peace Act. The bill also removes export market development as an objective of the programs under the statute. P.L. 480 Title II is the largest U.S. food aid program. The bill authorizes $2.5 billion to be appropriated annually for P.L. 480 Title II, which provides U.S. commodities for emergency relief and non-emergency (development) projects overseas. Were Congress to make the full appropriation, that amount would represent a substantial increase over the average annual appropriation of $1.2 billion in recent years. Although authorized in the farm bill, P.L. 480 Title II is administered by the U.S. Agency for International Development (USAID). The 2008 farm bill increases the amounts of P.L. 480 funds that can be allocated to various food aid program activities. It increases the amount available for administrative and distribution expenses of food aid project implementing organizations from between 5% to 10% to between 7.5% and 13% of the funds available for Title III. The bill also provides $4.5 million for FY2009-2001 to study and improve food aid quality issues. The limit on funding available for pre- positioning of commodities overseas to help expedite delivery is increased from its 2002 farm bill level of $2 million to $10 million each fiscal year. The bill also reauthorizes a program of assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable, prepackaged foods and increases the program's funding from $3 million to $8 million each fiscal year. For monitoring and evaluation of Title II non-emergency programs, the bill provides up to $22 CRS-21 million annually, not more than $8 million of which could be used for USAID's Famine Early Warning System (FEWS). Both the House- and Senate-passed versions of the farm bill had contained hard earmarks for non-emergency or development food aid. The farm bill retains an earmark for development food aid (termed a "safe box") beginning at $375 million in FY2009 and ending at $450 million in FY2012. The safe box designation can only be waived if the President determines that an extraordinary food emergency exists and that resources available from the Bill Emerson Humanitarian Trust (see below) have been exhausted, and if the President has submitted a request to Congress for additional appropriations equal to the reduction in safe box and Emerson Trust levels. Private voluntary organizations (PVOs) argued for the safe box, maintaining that it would give them assurances of supply of the commodities they rely on to carry out development projects. The Administration opposed the safe box concept, saying that it would deprive it of the flexibility needed to respond to emergency food aid needs. The 2008 farm bill reauthorizes other smaller programs that provide food aid to countries promoting the development of market-oriented agricultural sectors (Food for Progress, FFP) or for school feeding and nutrition programs (the McGovern-Dole International School Feeding and Child Nutrition Program). USDA administers these smaller food aid programs. The bill reauthorizes FFP without lifting the cap on CCC-funded transportation of commodities (an action that the Senate farm bill had recommended), which effectively determines the volume of commodities that can be provided. For the McGovern-Dole program, the bill provides an additional $84 million of CCC funds to remain available until expended. The House-passed bill, however, had proposed changing the funding basis of McGovern-Dole from discretionary to mandatory and increasing spending from $140 million in FY2009 to $300 million in FY2012. The final enacted bill also reauthorizes the Bill Emerson Humanitarian Trust, providing a reserve of commodities and cash that can be used to provide food aid in the event of unanticipated emergency food needs. The final bill authorizes $60 million of CCC funds to carry out a pilot program for local or regional purchase of agricultural commodities for food aid programs for FY2009-2012. Under current law, the United States can use P.L. 480 funds only to purchase U.S. commodities. The Administration's proposal for local/regional purchase, its only farm bill food aid proposal, would have provided for up to 25% of the funds available for P.L. 480 Title II to be allocated to this purpose. In FY2007, that would have amounted to up to $447 million. Local or regional purchases, the Administration argued, would make the U.S. response to emergencies more timely and cost-effective. Opponents of the proposal, however, maintained that it would undermine the coalition of producers, shippers, and charitable organizations that support U.S. food aid and would result in less U.S. food aid being provided. Congress's rejection of the local/regional purchase proposal is one of the reasons listed by the Administration for its veto of the farm bill. Trade. The 2008 farm bill extends USDA's export market development programs through FY2012. Although both the House- and Senate-passed farm bills had proposed increased funding for the Market Access Program (MAP), the bill maintains funding at the FY2007 level -- $200 million annually. Similarly, the bill maintains funding for the Foreign Market Development Program (FMDP) -- $34.5 CRS-22 million annually -- over the life of the bill. MAP promotes mainly high value farm exports, while FMDP promotes mainly bulk or generic commodity exports. The bill revises the export credit guarantee programs to bring them into compliance with a WTO dispute settlement decision in the U.S.-Brazil cotton case that the United States lost. Changes include elimination of the 1% cap on origination fees for export credit guarantees and repeal of legislative authority for the supplier credit program (a short- term credit guarantee) and the intermediate export credit guarantee program (3-10 years). The 2008 farm bill repeals authority for the Export Enhancement Program (EEP), a direct export subsidy. The Administration requested repeal of EEP because, it argued, the program had been inactive since 1995 and repealing it would be in line with the U.S. effort to eliminate all export subsidies in ongoing multilateral trade negotiations. Additional funding is provided for the Technical Assistance for Specialty Crops (TASC) program, which focuses on eliminating sanitary and phytosanitary (food safety) barriers to U.S. agricultural exports. Finally, the 2008 farm bill includes a provision requiring USDA to establish a softwood lumber importer declaration program. Importers will report their lumber imports, allowing data to be collected, verified, and reconciled, to assure implementation of the U.S.-Canada Softwood Lumber Agreement. The Senate had included a sense-of-the-Senate resolution encouraging the President to ensure lumber imports consistent with that bilateral agreement. For background information on farm bill trade and food aid programs, see CRS Report RL33553, Agricultural Export and Food Aid Programs; for a discussion of food aid and the farm bill, see CRS Report RL34145, International Food Aid and the 2008 Farm Bill; for a discussion of export programs and the farm bill, see CRS Report RL34227, Agricultural Exports and the 2008 Farm Bill. Title IV: Nutrition The farm bill's nutrition title accounts for well over half of all spending on programs and activities covered by the bill, with the overwhelming majority financing the Food Stamp program. The most significant issues in (and provisions of) this title address the administration of, eligibility for, and benefits under the Food Stamp program, funding for The Emergency Food Assistance Program (TEFAP), and support for a program of making free fresh fruits and vegetables available in schools. The enacted 2008 farm bill includes provisions that extend expiring authorities in covered programs (generally, through FY2012) and increase spending for most programs above what would be expected under prior law (above the "baseline"). The nutrition title covers the Food Stamp program, TEFAP, the fresh fruit and vegetable program in schools, the Senior Farmers' Market Nutrition program, programs in lieu of food stamps in Puerto Rico and American Samoa and on Indian reservations, rules governing procurement of food for school meal programs, and various special nutrition projects. Under previous law, these programs would cost nearly $40 billion a year and be expected to grow to almost $50 billion in FY2017. Total spending on these and other nutrition programs (including amounts offset by other savings) is boosted by an estimated $3.2 billion (outlays) over 5 years (FY2008-FY2012) and $10.2 billion over 10 years (FY2008-FY2017). CRS-23 CRS-24 Supplemental Nutrition Assistance Program. The largest share of the new spending mandated by the nutrition title results from changes that increase food stamp benefits and establish new standards to make more households eligible under the Food Stamp program. The farm bill also renames the existing program as the Supplemental Nutrition Assistance Program (SNAP). Added food stamp spending is estimated to total $2.3 billion over 5 years and $7.82 billion over 10 years -- 73% and 77%, respectively -- of the title's total new spending. The major food stamp revisions: ! boost the minimum amount of income that is disregarded when benefits are calculated by increasing and then indexing the "standard deduction,"resulting in a small, but growing, general benefit increase in addition to regular increases for food-price inflation (around $4 a month in FY2009); ! increase and then index the minimum monthly benefit guarantee, setting at it at 8% of the indexed maximum benefit for one person (raising it from the current $10 to at least $14 in FY2009); ! disregard all income spent on dependent care when calculating benefits (removing existing caps on this disregard); and ! substantially loosen eligibility rules relating to assets by indexing the dollar limits on allowable liquid assets and disregarding all retirement savings/plans and education savings. Other provisions (1) continue inflation-indexed funding for nutrition assistance grants (in lieu of food stamps) to Puerto Rico and American Samoa, (2) extend the authority to operate a Food Distribution Program on Indian reservations, (3) simplify some administrative processes (like reporting requirements), (4) expand the availability of "transitional" benefits for those leaving public assistance programs, (5) give the federal government a great deal more flexibility in imposing penalties on retail food stores that violate food stamp rules, (6) add disqualification penalties for those selling food bought with food stamp benefits and those using benefits to obtain cash for container deposits, and (7) require greater federal scrutiny and oversight of state efforts to "privatize" and expand the use of computers in their administration of food stamps. The overwhelming majority of food stamp provisions represent policy changes that were included in both the House and Senate bills (although budget limits forced changes), or that were non-controversial. However, a number of significant initiatives were not adopted, generally for policy rather than cost reasons. These notably included a House proposal to place major limits on state privatization of food stamp administration, and the Senate's provisions loosening eligibility rules for able-bodied adults without dependents and eventually permitting the use of food stamp benefits to buy dietary supplements. The Emergency Food Assistance Program. The nutrition title's second- largest share of new spending is for TEFAP, with estimated additional outlays of $526 million over FY2008-FY2012 and $1.26 billion over FY2008-FY2017 (17% and 12%, respectively, of the title's total estimated cost). Closely following the provisions of both the House and Senate bills, this provision in the final law greatly increases mandatory funding of food purchases for the program to levels well above the current requirement to acquire $140 million a year. Required commodity buys are expanded by (1) an immediate infusion of $50 million in FY2008 and (2) raising CRS-25 annual mandatory purchases to $250 million in FY2009 (indexed annually for food- price inflation in later years). Other Programs. Another major initiative in the nutrition title is a dramatic increase in funding for the fresh fruit and vegetable program in schools. In FY2008, approximately $20 million is available for this effort. The bill boosts mandatory outlays by $274 million (FY2008-FY2012) and $1 billion (FY2008-FY2017), representing some 10% of total new spending. In addition to the changes in major programs noted above, the 2008 farm bill (1) includes limited authority for schools in school meal programs to use geographic preference for locally grown and raised agricultural products when procuring food, (2) increases mandatory funding for the Senior Farmers' Market Nutrition program (from $15 million a year to $20.6 million a year), (3) continues and expands support for community food projects, (4) provides money for an initiative to use the (renamed) Food Stamp program to promote health and nutrition, and (5) authorizes (and, in some cases, funds) several projects related to food distribution efforts, school gardens, "hunger-free community" initiatives, provision of whole grain products to schools, and an urban food enterprise center. In all but a very few cases (e.g., privatization and dietary supplement provisions), there were no important policy differences between the House- and Senate-passed versions of the farm bill. However, the bills diverged greatly in the amount of new spending they proposed. For example, the FY2008-FY2012 estimated cost (outlays) of the House bill's nutrition title was $4.2 billion versus the Senate's $5.3 billion. The bills also differed in funding priorities. The House devoted 78% of new funding to new food stamp spending, 14% to extra funding for TEFAP, and 7% to expanding the fresh fruit and vegetable program. In contrast, the Senate bill provided 66% of its projected funding to new food stamp spending, along with 10% for TEFAP and 21% for the fruit and vegetable initiative. The House and Senate measures further differed in another matter. The House would have made its policy amendments part of permanent law, producing a 10-year (through FY2017) cost estimate of $11.5 billion. On the other hand, most of the Senate's significant revisions (e.g., increased food stamp benefits) were scheduled to terminate after FY2012, resulting in a much lower 10-year cost estimate than the House or than would have been the case with permanent changes (outlays totaling $6.7 billion). Finally, the House and Senate bills provided for different extensions of expiring authorities (like the authorization of appropriations for food stamps). The House extended these authorities through FY2012, while the Senate opted for indefinite extension in most cases. The final 2008 farm bill deals with funding level issues and issues of allocation among programs as discussed earlier in this section, makes all policy changes permanent law (as in the House version), and generally extends expiring authorities through FY2012 (as in the House version). For more information, see CRS Report RL33829, Domestic Food Assistance: The Farm Bill and Other Legislation in the 110th Congress. CRS-26 Title V: Credit Farm bills usually contain provisions that modify the permanent statutes for two government-related farm lenders. First, the USDA Farm Service Agency (FSA) is a federal government lender of last resort that makes direct loans or guarantees loans made by commercial lenders to farmers who cannot qualify for commercial loans. Second, the Farm Credit System (FCS) is a private lender with a statutory requirement, and limitation, to lend to farmers and certain farm-related businesses. For more information, see CRS Report RS21977, Agricultural Credit: Institutions and Issues. Farm Service Agency. The 2008 farm bill (1) further prioritizes and subsidizes Farm Service Agency lending for beginning and socially disadvantaged farmers, (2) increases lending limits per individual to $300,000 (up from $200,000) for each of the direct farm ownership and direct operating loan programs, and (3) extends and expands the guarantee program for seller-financed land loans. It creates a conservation loan guarantee program for conservation projects. Regarding "term limits" on guaranteed operating loans, which require farmers to graduate from FSA credit to commercial lenders, the enacted 2008 farm bill extends the suspension of the enforcement of "term limits" until December 31, 2010. It also creates a pilot program of "individual development accounts" for beginning farmers and ranchers. The Pigford Decision. The 2008 farm bill adopts a Senate provision that would permit any claimant in the Pigford decision (a 1999 suit based on past discrimination against minority farmers applying for USDA loans) who has not received compensation to petition in civil court to obtain such compensation. The total amount of payment and debt relief would be limited to $100 million. USDA would be restricted from beginning a foreclosure if the borrower can show foreclosure is related to a Pigford claim. A similar provision is also included in the House-passed bill. See CRS Report RS20430, The Pigford Case: USDA Settlement of a Discrimination Suit by Black Farmers. Farm Credit System. In recent years, FCS has sought to expand its lending authority beyond traditional farm loans and into more rural housing and non-farm businesses. Commercial banks oppose expanding FCS lending authority, saying that the availability of commercial credit in rural areas is not constrained, and that FCS's government-sponsored enterprise (GSE) status provides an unfair competitive advantage. The enacted bill, like the House and Senate bills, does not allow any expansion of Farm Credit System lending authority. It does address technical changes in the payment of insurance premiums by FCS banks to the FCS Insurance Corporation, and expands the list of borrowers eligible to own Bank for Cooperatives voting stock. For more information, see CRS Report RS21977, Agricultural Credit: Institutions and Issues. CRS-27 Title VI: Rural Development More than 88 programs administered by 16 different federal agencies target rural economic development. The Rural Development Policy Act of 1980 (P.L. 96-355) named USDA the lead federal agency for rural development. USDA administers most of the existing rural development programs and has the highest average of program funds going directly to rural counties (approximately 50%). Three mission agencies, Rural Housing Service, Rural Business-Cooperative Service, and Rural Utilities Service, administer the various loan and grant programs. More information on these programs is in CRS Report RL31837, An Overview of USDA Rural Development Programs. The enacted 2008 farm bill reauthorizes and/or amends rural development loan and grant programs and authorizes several new provisions. The bill adopts the Senate measure to redefine "rural" with certain modifications, most notably, striking the housing density criterion; however, it also directs USDA to conduct rulemaking to develop restrictions on areas where housing density is greater than 200 units per square mile. The bill does not change current law with respect to rural eligibility for water and waste water disposal loans and grants and the community facility program. The bill requires USDA to prepare a report assessing the various definitions of "rural" and the effect these various definitions have on programs administered by USDA Rural Development. Although both the House and Senate farm bills included mandatory funding for several programs, the enacted 2008 farm bill reduced that spending, while in some cases adding discretionary authorization. The enacted bill provides $194 million (FY2008-FY2012) in mandatory spending for rural development programs. This is a reduction from up to $550 million proposed in the House- and Senate-passed bills. The bill provides mandatory spending for a one-time funding of backlogged water and wastewater applications ($120 million); a Rural Microentrepreneur Assistance program ($13 million in mandatory and $40 million annually in discretionary spending); and Value-Added Product Grants ($15 million in mandatory spending). The bill provides no mandatory funding for rural health care facilities or the construction of child care facilities, although such funds were proposed by the Senate. Other provisions authorized in the enacted bill include support for locally produced agricultural food products22 and grants for assisting employment opportunities for disabled individuals in rural areas. The enacted bill also establishes a new Rural Collaborative Investment Program and provides support for several water and wastewater programs, and adopts the Senate proposed measure to authorize a new interest rate structure for water and wastewater projects based on an index of outstanding municipal obligations. The bill also adopts other Senate provisions that authorize assistance to the Housing Assistance Council and reauthorize the Rural Business Investment Program, as well as the appropriate technology transfer to rural areas program (ATTRA). The bill deletes the House 22 A provision in the Senate bill to authorize artisanal cheese centers was deleted in conference. CRS-28 measure reauthorizing the Rural Strategic Investment Program, and deletes both House and Senate proposals providing guaranteed loans and grants to improve rural health care facilities. The enacted bill adopted several House and Senate provisions to assist rural broadband development. The bill reauthorizes the Access to Broadband Telecommunications Services in Rural Areas and grants to broadcasting systems; directs the Secretary to develop a comprehensive national broadband strategy for rural areas; and authorizes a new National Center for Telecommunications Assessment. The bill also reauthorizes the Distance Learning and Telemedicine program and includes a provision to make library connectivity a feature of the program. However, the farm bill deleted various House- and Senate-passed proposals and grant programs targeting broadband service. The 2008 farm bill reauthorizes several rural development and grant programs, including the Rural Economic Area Partnership; the National Rural Development Partnership; SEARCH grants; and Rural Business Opportunity Grants. The bill also reauthorizes the Delta Regional Authority and the Northern Great Plains Regional Authority. In addition to these two reauthorized commissions, the bill creates three new regional development authorities: the Southeast Crescent Regional Commission, the Southwest Border Regional Commission, and the Northern Borders Economic Development Commission (included under the Title XIV, Miscellaneous). The bill also includes a provision directing USDA to conduct studies on rural transportation issues and on rural electric power generation. For more information, see CRS Report RL34126, Rural Development and Provisions of the 2008 Farm Bill. Title VII: Agricultural Research Under the mission area called Research, Extension, and Economics (REE), the USDA is responsible for conducting agricultural research at the federal level, and for providing partial support for cooperative research, extension, and post-secondary agricultural education programs in the states. The USDA's intramural activities are carried out by the Agricultural Research Service (ARS), Economic Research Service (ERS), National Agricultural Statistics Service (NASS), and National Agriculture Library (NAL). The federally funded extramural activities are managed by the Cooperative State Research, Education, and Extension Service (CSREES). For more information on these agencies' activities, see CRS Report RL33327, Agricultural Research, Education, and Extension: Issues and Background. The issues confronting Congress concerning federal agricultural research can be generally categorized under two topics: the structure of the management organization and the level of research funding, both of which are long-standing issues. Congress addressed the management issue in the 2002 farm bill by directing USDA to examine and report on the structure of Agricultural Research Service (ARS) management and the merits of establishing a National Institute of Food and Agriculture (possibly modeled after the National Institutes of Health). With respect to funding, there has long been a struggle under persistent budget constraints to obtain increased appropriations even sufficient to keep up with inflation. With farm CRS-29 commodity support as a model, the research community has attempted to obtain a portion of its money in mandatory funds, with less reliance on discretionary appropriations. The USDA task force report, National Institute for Food and Agriculture: A Proposal, was issued July 2004.23 The proposal was presented to Congress in USDA's 2007 Farm Bill Proposals.24 While the USDA task force was conducting its review, the National Association of State Universities and Land-Grant Colleges (NASULGC) developed a proposal called Create Research, Extension, and Teaching Excellence for the 21st Century (CREATE-21).25 CREATE-21 was presented to Congress as H.R. 2398 and S. 1094. The research provisions in the individual House and Senate farm bills drew heavily on the recommendations of the USDA and NASULGC.26 Research Management. The enacted 2008 farm bill represents an amalgam of the research reorganization provisions in the House and Senate bills. The bill creates an umbrella coordinating entity known as the Research, Extension, and Education Office (REEO) in Office of the Under Secretary for Research, Education, and Economics, and designates the Under Secretary as the Chief Scientist of USDA. The new REEO will contain six divisions, each with its own director, representing the broad range of subject areas addressed by agricultural research, extension, and education programs. The division directors are expected to work with the National Agricultural Research, Extension, Education, and Economics Advisory Board to coordinate all of the mission area's activities across the Department, including intramural research (ARS, ERS, NASS) and extramural research. CSREES, which currently is responsible for managing extramural research, will be eliminated as an agency and will become the National Institute of Food and Agriculture (NIFA). The conferees intend NIFA to be an independent, scientific, policy-setting agency for the food and agricultural sciences whose primary role is to administer competitive grants. The enacted bill ends the National Research Initiative (NRI) and the Initiative for Future Agriculture and Food Systems (IFAFS) as distinct competitive grant programs, and establishes within NIFA an Agriculture and Food Research Initiative (AFRI) to award competitive grants for fundamental and applied research, extension, and education. The farm bill authorizes annual appropriations of $700 million for AFRI, representing the combined level of authorized and mandatory funding that the 23 National Institute for Food and Agriculture: A Proposal, report of the Research, Education, and Economics Task Force of USDA, July 2004. The report is available at [http://www.ars.usda.gov/Research/Research.htm]. 24 A link to the USDA farm bill research proposal is at [http://www.usda.gov/wps/portal/ !ut/p/_s.7_0_A/7_0_1UH?contentidonly=true&contentid=2007_Farm_Bill_Title7.xml]. 25 Available at [http://www.create-21.org/]. 26 A more complete examination of the issues and legislative proposal is in CRS Report RS22693, Agricultural Research, Education, and Extension in the 2007 Farm Bill. CRS-30 NRI and IFAFS were authorized to receive in previous years (appropriators have prohibited the use of mandatory funds for IFAFS since 2002). The Under Secretary (chief scientist) is required to submit a unified annual budget covering all activities of the REEO and NIFA. The budget is to represent the balance of several factors, including fundamental and applied research, funding for research capacity and infrastructure, and increased support for Hispanic-serving agricultural colleges and universities, for non-land grant colleges of agriculture, and for the University of the District of Columbia. Funding. Apart from mandatory funding of $230 million over five years for a Specialty Crop Research Initiative, and $78 million in mandatory funding for the Organic Research and Extension Initiative (included in the Horticulture and Organic Agriculture title), the 2008 farm bill authorizes annual appropriation of such sums as necessary for research, extension, and education programs, much the same as in the previous farm bill. The House bill would have preserved mandatory funding of $200 million for competitive grants under a merged NRI/IFAFS program for FY2010-FY2012. For more information, see CRS Report RL34352, Agricultural Research, Extension, and Education: Farm Bill Issues. Title VIII: Forestry Farm bills typically deal with forestry both directly (usually in a forestry title) and indirectly (for example, by including forests and forestry practices in more general conservation programs). For a description of existing programs, see CRS Report RL31065, Forestry Assistance Programs. The enacted 2008 farm bill includes a forestry title (Title VIII) with several sections addressing statewide forest resource planning. One section establishes "national private forest conservation priorities" as (1) conserving and managing working forest landscapes for multiple values and uses; (2) protecting forests from threats and restoring appropriate forest types; and (3) enhancing public benefits from private forests. Other sections require statewide assessments and strategies for forest resources (with periodic revision). The bill creates a new Forest Resource Coordinating Committee, requires the competitive allocation of a portion of state assistance funding (based on how the statewide assessments and strategies fulfill the national priorities), and allows up to 5% of state assistance funding for competitively allocated innovative projects to address the national priorities. The bill also creates a new community forest and open space conservation grant program for local entities to protect forests threatened with conversion to non-forest uses, and creates an Emergency Forest Restoration Program to provide assistance for restoration efforts for forests damaged by natural disaster. The 2008 farm bill extends, through 2012, the authorizations for the Office of International Forestry, the Rural Revitalization Technologies Program, the Renewable Resources Extension Act, and the Healthy Forest Reserves Program (with minor changes) under the Healthy Forests Restoration Act of 2003 (P.L. 108-148, 16 U.S.C. Sec. 501, et seq.). The bill also amends existing law to restrict imports of illegally logged wood. A separate subtitle -- Cultural and Heritage Cooperation CRS-31 Authority -- provides for tribal-Forest Service cooperative relations and assistance. The bill authorizes a competitive grant program to Hispanic-serving institutions to increase diversity in forestry and related fields, and allows contract modification options for certain Forest Service timber sales. The enacted bill includes forestry-related provisions other than in the forestry title. In Title II (Conservation), numerous programs were modified to include forestry among approved conservation activities. In Title III (Trade), it requires USDA to required to establish a softwood lumber importer declaration program, for import data to be collected, verified, and reconciled to assure implementation of the U.S.-Canada Softwood Lumber Agreement. In Title IX (Energy), two programs were created to use woody biomass for energy production. In Title XV (Tax Provisions), the agreement authorizes a new type of tax-exempt private bond whose proceeds are used to finance forest conservation. It also modifies income tax deductions for qualified timber gains, and includes several provisions to modernize and clarify the tax treatment of timber real estate investment trusts (REITs). See also CRS Report RL33917, Forestry in the 2008 Farm Bill. Title IX: Energy Interest in renewable energy has grown rapidly since late 2005 due, in large part, to a strong rise in domestic and international fuel prices and a dramatic acceleration in domestic biofuel production (mostly ethanol). Many policymakers view agriculture-based biofuels as both a catalyst for rural economic development and a response to growing energy import dependence. Renewable energy's role in the 2002 farm bill was contained in the farm bill's energy title (Title IX), which concentrated on grants, loan, and loan guarantees to foster research on agriculture-based renewable energy, to share development risk, and to promote the adoption of renewable energy systems. USDA's Bioenergy Program (Sec. 9006 of P.L. 107-171) -- funding for which expired in FY2006 -- had been the primary exception in that it provided incentives to expand actual production of bioenergy. The enacted 2008 farm bill expands and extends the provisions in the energy section of the 2002 farm bill, and provides additional funding. The bill makes numerous changes to the programs in the energy title. For example, the bill combines the so-called Section 9006 program with the Energy Audit and Renewable Energy Development Program under the new Renewable Energy for America Program. The bill also creates new programs, including a Biomass Crop Assistance Program to provide financial assistance to producers for growing biomass crops and developing conversion facilities, and the Agricultural Bioenergy Feedstock and Energy Efficiency Research and Extension Initiative to provide for competitive grants to fund projects with a focus on supporting on-farm biomass crop research and extension. This latter initiative is under the bill's research title (Title VII) and includes other bioenergy research programs. The enacted bill continues programs for federal purchase of biobased products under the Biobased Markets Program. The bill includes a Senate-proposed provision, Biorefinery Assistance, which provides grants and loan guarantees for construction and retrofitting of biorefineries for the production of advanced biofuels. The bill also CRS-32 provides for grants for constructing demonstration-scale biorefineries, and loan guarantees for the development and construction of commercial-scale biorefineries that use technologies that are either pre-commercial or commercially available. The bill provides for the repowering of existing biorefineries. It incorporates the Biomass Research and Development Act of 2000 as part of the bill's energy title and will fund projects that address the critical need for integrated research and technology development in the area of biofuels. It continues the Biodiesel Fuel Education Program with an expanded list of entities targeted. Also, among the miscellaneous provisions (Title XV), the ethanol production tax credit is lowered from 51 to 46 cents per gallon beginning in the first year following that in which ethanol production of 7.5 billion gallons is achieved. Finally, the 2008 farm bill establishes the cellulosic biofuel producer credit of $1.01 per gallon with special provisions for small cellulosic ethanol producers. Mandatory spending for the enacted bill's agriculture-based energy programs are projected at about $600 million (FY2008-FY2012) and $900 million (FY2008- FY2017). This reflects a reduction compared to funding levels proposed in the House- and Senate-passed bills. The House bill had authorized more than $3 billion in new mandatory funding and more than $1 billion in discretionary funding for provisions of the energy title; the Senate bill authorized more than $1 billion in new mandatory funding and more than $2 billion in discretionary funding. Both the House and the Senate sought to fund these provisions through various revenue and cost offset provisions in both bills, although in very different ways. For more information on agriculture and bioenergy, see CRS Report RL34130, Renewable Energy Policy in the 2008 Farm Bill; CRS Report RL32712, Agriculture- based Renewable Energy Production; CRS Report RL33290, Fuel Ethanol: Background and Public Policy Issues; and CRS Report RL33572, Biofuels Incentives: A Summary of Federal Programs. Many of the federal programs that currently support renewable energy production in general, and agriculture-based energy production in particular, are outside the purview of USDA and have legislative origins outside of the farm bill. For example, the energy act signed into law in December 2007 (P.L. 110-140) covers a wide range of topics with extensive attention to biofuels. In particular, it includes a dramatic expansion of the renewable fuels mandate to 36 billion gallons by 2022 with carve-outs for biodiesel (1 billion gallons by 2012), cellulosic ethanol (16 billion gallons by 2022), and corn-starch ethanol (15 billion gallons by 2015). Legislative proposals focused on renewable energy are summarized in CRS Report RL33831, Energy Efficiency and Renewable Energy Legislation in the 110th Congress. Title X: Horticulture and Organic Agriculture Sales of specialty crops, such as fruits, vegetables, and tree nuts, account for nearly one-third of U.S. crop cash receipts and one-fifth of U.S. agricultural exports, according to USDA. When floriculture, greenhouse, and nursery crop sales are included, total specialty crops account for nearly 50% of all U.S. farm crop cash receipts. However, specialty crop producers are not eligible for commodity income support programs; also, few provisions in the farm bill's 2002 conservation, trade, CRS-33 research, and nutrition titles specifically addressed the specialty crop industry. For more information, see CRS Report RL33520, Specialty Crops: 2008 Farm Bill Issues. The enacted 2008 farm bill contains a new Horticulture and Organic Agriculture title (Title X). Among the key provisions is reauthorization of the specialty crop block grant program established by the Specialty Crops Competitiveness Act of 2004 (P.L. 108-465). Under this program, each state receives a grant to support marketing research and promotion to enhance the competitiveness of specialty crops grown in the state. The 2004 act authorized appropriations to support the program (it received $7 million in each of FY2006-FY2008). The enacted 2008 farm bill provides mandatory funding in the amounts of $10 million for FY2008, $49 million for FY2009, and $55 million annually in FY2010 through FY2012. Another key provision affecting specialty crops includes mandatory funding of $207 million through FY2012 to (1) establish cooperative agreements with state departments of agriculture for early plant pest detection activities; (2) establish a threat identification and mitigation program for foreign pests and diseases; and (3) provide funds and technical assistance to specialty crop producers to develop audit- based certification systems to lessen the risks of pest emergence and movement. The 2008 farm bill also provides $20 million over four years to establish centers where the specialty crop industry can obtain pest- and disease-free plant source material, and authorizes appropriations to establish a Pest and Disease Revolving Loan Fund to help local governments purchase equipment for the speedy removal of trees that must be destroyed to stop the spread of a pest or disease infestation. The enacted bill also contains several provisions to encourage the consumption of fresh fruits and vegetables. One provides $33 million through FY2012 to expand the existing Farmers' Market Promotion Program, with a requirement that 10% of the funds be used to make it possible for beneficiaries of federal nutrition programs to use their electronic benefits cards at farmers' markets. Another provides $5 million to establish a Healthy Urban Food Enterprise Development Center designed to help make affordable, nutritious fresh foods more readily available in low-income communities and neighborhoods. Finally, the bill contains provisions to increase the amount of fresh fruits and vegetables to be purchased for USDA nutrition programs (see Title IV, Nutrition programs). Another major component of Title X of the 2008 farm bill includes provisions supporting organic agriculture. The bill reauthorizes the National Organic Cost-share Program27 and provides a one-time transfer of $22 million in FY2008 (available until expended) to help defray farmers' costs for obtaining certification under the National Organic Program; the amount that an individual farmer can receive in cost-share assistance is raised from $500 to $750. The conference report also includes $5 million in mandatory funding for data collection on organically grown crops, authorizes the appropriation of an additional $25 million over five years for that purpose, and requires USDA to spend $3.5 million of the total to collect and 27 In the 2002 farm bill, Congress established this program and provided a one-time transfer of $5 million in mandatory funds to help transition farmers to organic production. CRS-34 distribute up-to-date price data for the organic market. Another provision authorizes increased appropriations to support the administrative work of the National Organic Program office. Title II (Conservation) contains a provision making producers who want to convert from conventional to organic farming eligible for cost-share and technical assistance under the Environmental Quality Incentives Program. See also CRS Report RL31595, Organic Agriculture in the United States: Program and Policy Issues. Title XI: Livestock Competition and Marketing. Rapid changes have occurred in recent decades in the structure and business methods of agriculture in general and of animal agriculture in particular. Production and marketing have been moving toward fewer and larger operations (sometimes referred to as consolidation or concentration), and toward vertical integration, although the pace of these changes has varied widely across the sectors. Debate has revolved around the impact of such changes on farm prices, on the traditional system of independent, family-based agriculture, on consumers, and on global competitiveness. Inherent in these questions is the role government should play in monitoring and regulating agricultural markets. For more information see CRS Report RL33958, Animal Agriculture: 2008 Farm Bill Issues. The enacted 2008 farm bill contains a new title on Livestock (Title XI) that scales back much of the language in the Senate-passed bill aimed at more closely regulating livestock and poultry markets. For example, conferees deleted Senate language that would have prohibited most major packers from owning, feeding, or controlling livestock except within 14 days of slaughter. Also deleted was a Senate provision to establish at USDA a new Special Counsel for Agricultural Competition to investigate and prosecute violations of competition laws. Title XI of the enacted 2008 farm bill changes the Agricultural Fair Practices Act to alter the definitions of associations and handlers. Not included in the enacted bill were various Senate provisions intended to strengthen USDA's oversight and enforcement of the act. Also not included in the enacted bill were Senate provisions to give USDA stronger enforcement authorities over live poultry dealers, among other provisions, under the Packers and Stockyards Act (P&SA), which governs market competition in the meat packing sectors. In their place, conferees added language requiring an annual report detailing investigations into possible violations of the P&SA. Also narrowed was Senate language governing contractual arrangements between producers and integrators. Under the final farm bill, a poultry or swine grower -- a more limited definition of a contract producer than in the original Senate bill -- has the right to cancel a production contract within 3 business days of execution, unless a later date is specified in the contract. In lieu of Senate language limiting the conditions under which a contractor could require a producer to make additional capital investments, the 2008 farm bill stipulates that the possibility of such an investment be conspicuously stated in the contract. Several other provisions retained, in somewhat modified form, in the enacted bill are intended to give producers additional protections when disputing contract terms. CRS-35 The enacted bill contains provisions intended to improve electronic reporting under the Livestock Mandatory Price Reporting program administered by USDA's Agricultural Marketing Service (AMS), and to study the effects of requiring pork processing plants to report wholesale pork price information. Country-of-Origin Labeling. The 2002 farm bill (Sec. 10816 of P.L. 107-171) required retailers to provide country-of-origin labeling (COOL) for fresh produce, red meats, peanuts, and seafood by September 30, 2004. Congress twice postponed implementation for all but seafood; COOL now must be implemented by September 30, 2008. Exempted from COOL are COOL-processed versions of these products, and dining-out establishments. There has been vigorous debate over whether this new program is desirable and necessary, its purposes, and its likely impacts on farmers, processors, retailers, and consumers. Opponents of mandatory COOL prefer a voluntary or market-driven program or at least some relaxation of the COOL law's compliance language. Supporters have continued to seek Congress's and USDA's assurance that the mandatory program will be implemented expeditiously. For a more detailed description of current law, requirements and issues see CRS Report RS22955, Country-of-Origin Labeling for Foods. The 2008 farm bill implements the mandatory program on its current schedule, and adds goat meat, chicken (which competes with red meats in the market and which, unlike red meats, primarily are domestically produced), ginseng, pecans, and macadamia nuts as covered commodities. However, for red meats, it creates several new types of label categories that are intended to facilitate and simplify compliance in specifying the country or countries of the products. For all covered commodities, the bill also seeks to ease recordkeeping and verification requirements, and lower noncompliance penalties. Inspection, Registries, and Grading. The 2008 farm bill includes provisions covering state-inspected meat and poultry, reportable meat and poultry registries, and catfish grading and inspection, among other provisions. Federal law has prohibited state-inspected meat and poultry plants from shipping their products across state lines, a ban that many states and small plants have long sought to overturn. Limiting state-inspected products to intrastate commerce is unfair, many state agencies and state-inspected plants have argued, because the 27 current state-operated programs by law already must be, and are, "at least equal" to the federal system. Those who have opposed allowing state-inspected products in interstate commerce argued that state programs are not required to have, and do not have, the same level of safety oversight as the federal, or even the foreign, plants. Both the House and Senate farm bills contained language to enable state- inspected plants to sell products in interstate commerce, but under divergent policy approaches. Conferees adopted the Senate's version, whereby state-inspected plants with 25 employees or fewer may opt into a new program that subjects them to federal laws and oversight, for which they may gain the federal mark of inspection and the ability to ship interstate. They would still be inspected by state employees, but these employees would be under the supervision of a federal official who will oversee training, inspection, compliance, and other activities. States would receive at least CRS-36 60% reimbursement of their costs (compared with 50% under the existing federal- state program provisions, which also continues). The Senate language was a compromise package acceptable to both supporters and opponents of the House- passed language, which among other things could have enabled many plants currently under federal inspection to apply for state inspection and continue to ship interstate. Opponents of the House option feared that many would seek to leave the federal system if they believed they could receive more lenient oversight by the states. (For background, see CRS Report RL34202, State-Inspected Meat and Poultry: Issues for Congress.) Conferees modified a provision in the Senate but not the House bill to require USDA to establish "reportable food registries" for meat and poultry and their products, whereby establishments would have to report whenever there is a probability of such foods causing adverse health consequences. (The FDA amendments legislation passed in 2007 (P.L. 110-85) establishes a similar registry for FDA-regulated foods.) The enacted farm bill amends the meat and poultry laws to require an establishment to promptly notify USDA if it has reason to believe that an adulterated or misbranded product has entered commerce. Another adopted provision requires meat and poultry establishments to prepare and maintain written recall plans. Conferees modified Senate bill language to provide for two new USDA initiatives affecting farm-raised domestic catfish: a voluntary grading program administered through the Agricultural Marketing Service (AMS), and mandated safety inspection of such products by Food Safety and Inspection Service (i.e., making catfish an amenable species along with the major meat and poultry species). The House bill lacked this language. The final version provides for catfish grading as a voluntary fee-based program, with producers of other seafood species eligible to petition USDA for a similar service. Conferees agreed to extend mandatory inspection to catfish processors, further authorizing FSIS to take into account the conditions under which catfish are raised and transported. Although other fish and shellfish are not covered by the final amendment, conferees noted in their accompanying report that the Secretary of Agriculture has standing authority to add species if appropriate. The conference report states the intent of Congress "that catfish be subject to continuous inspection and that imported catfish inspection programs be found to be equivalent under USDA regulations before foreign catfish may be imported into the United States." Language in the bill itself instructs the Secretary to define the term "catfish." However, the 2002 farm bill (P.L. 107-171, Sec. 10806) had amended the Federal Food, Drug, and Cosmetic Act to limit the acceptable definition to one family of catfish ("Ictaluridae"), effectively prohibiting the labeling of certain Asian-grown fish as catfish. So, the scope of the regulatory definition developed by the Secretary of Agriculture could be of some interest. Other Provisions. Conferees deleted two provisions in the Senate bill. One provision would have established a Congressional Bipartisan Food Safety Commission that would have been required to report, within one year, on recommendations for modernizing food programs. The provision was intended to be in response to recent food safety incidents linked to both imported and domestic CRS-37 foods, which have brought into focus the question of whether there is a need for changes in federal food safety oversight. At issue is whether the current system has the statutory authorities, resources, and structural organization to protect consumers from unsafe food. The second deleted provision would have prohibited FDA from issuing a final risk assessment or from lifting the voluntary moratorium until completion of newly mandated studies on the safety and market impacts of introducing products from cloned animals. The provision was intended to be in response to FDA's request issued in late 2008 that companies refrain voluntarily from marketing meat and milk from cloned animals or their progeny until it can complete a final assessment of their safety (see CRS Report RL33334, Biotechnology in Animal Agriculture: Status and Current Issues). See also CRS Report RL33958, Animal Agriculture: 2008 Farm Bill Issues. Title XII: Crop Insurance and Disaster Assistance Programs The enacted 2008 farm bill contains a new title covering crop insurance and disaster assistance programs (Title X). In addition, the enacted bill contains other provisions authorizing "Supplemental Agricultural Disaster Assistance," provided for under the bill's Title XV (Trade and Tax Provisions). Crop Insurance Program. The federal crop insurance program is designed to protect crop producers from unavoidable risks associated with adverse weather, weather-related plant diseases, and insect infestations. Although the scope of the crop insurance program has widened significantly over the past 25 years, the anticipated goal that it would replace ad hoc disaster payments has not been achieved. The crop insurance program is permanently authorized and hence does not require consideration in the farm bill. Some policymakers expressed interest in expanding the crop insurance program in the context of the farm bill and/or complementing it with a permanent disaster payment program. However, many viewed the crop insurance program as a potential target for program cost reductions, where savings could be used to fund new initiatives in various titles of the farm bill. The Administration and others contend that the private companies should be required to absorb more of the program losses, and that the reimbursement rate for their operating expenses needs to be reduced as a means of reducing federal costs. The insurance companies and many farm groups are concerned that significant reductions in federal support will negatively impact the financial health of the crop insurance industry and possibly jeopardize the delivery of crop insurance, particularly in high- risk areas. Like the House- and Senate passed farm bills, the enacted 2008 farm bill contains several revisions to the crop insurance program, many of which are designed to reduce program costs. For the enacted crop insurance title, CBO has estimated net savings of $3.9 billion over five years (FY2008-2012), compared with estimated savings of $4.0 billion in the House bill and $3.7 billion in the Senate bill. Approximately $2.8 billion of the estimated savings in the enacted bill (as in the House and Senate bills) is achieved through changes in the timing of premium receipts from farmers, and payments to the companies, which has no effect on overall CRS-38 subsidies to participating farmers or insurance companies. A portion of the five-year savings is realized by requiring insurance companies and farmers to share more in program costs. The enacted bill increases the administrative fees paid by farmers for catastrophic crop insurance coverage (and for participation in the separate noninsured assistance program) to new levels that are higher than both the House and Senate bills. The bill also reduces reimbursement rates to private companies for their administrative and operating expenses by 2.3 percentage points. Conferees did not include a House provision that would have required the insurance companies to share more of their underwriting gains with the federal government. Among its other provisions, the crop insurance title of the 2008 farm bill also (1) requires USDA to ensure that premiums are established at a level so that total premiums equal total indemnity payments over time; (2) allows USDA to periodically renegotiate its standard reinsurance agreement, which contains the obligations and financial terms of the relationship between the government and the participating private crop insurance companies; (3) reduces available mandatory funding for reimbursing private initiatives for the research and development of new crop insurance products, and revises the manner in which reimbursements are provided; and (4) provides $36 million in mandatory funding over 10 years for USDA to enhance its activities to reduce waste, fraud, and abuse within the crop insurance program. For more background information on crop insurance, see CRS Report RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm Bill. Other Disaster Assistance Programs. Title XII includes other disaster assistance provisions, including the addition of the Small Business Disaster Response and Loan Improvements Act of 2008 (Subtitle B). This subtitle makes significant changes to the Small Business Administration's (SBA) response to disaster. SBA has responsibility for making disaster loans to individuals and non-agricultural businesses (15 U.S.C. 636(b)). Hurricane Katrina, and the SBA response, which was widely viewed as slow and flawed, prompted may suggestions from Members and others on how to improve the disaster loan system. In general, this act requires SBA to implement new planning, management oversight, and reporting procedures and authorizes private lending to supplement the disaster loans that SBA makes directly. SBA will continue to make six types of disaster loans for damages that were not covered by insurance: ! Personal property disaster loans (maximum $40,000) are made to individuals to replace or repair personal property such as cars and furniture. Home owners and renters may apply. ! Real property disaster loans (maximum $200,000) are made to home owners to repair or replace primary residences. ! Physical disaster loans (maximum $1.5 million) are made to businesses and nonprofits, regardless of size, to repair or replace real property, inventory, machinery, equipment, fixtures, etc. not covered by insurance. ! Economic injury disaster loans (maximum $1.5 million) are made to businesses to provide operating funds following a disaster. The act CRS-39 makes nonprofits eligible for these economic injury disaster loans and adds ice storms and blizzards to the list of disasters that can trigger these loans. ! Military reservist economic injury disaster loans (maximum $1.5 million) are made to businesses to help them overcome problems caused by a key employee being called to active military duty. ! GO Loans (Gulf Opportunity Pilot Loans, maximum $150,000), which were made to certain small businesses affected by Hurricane Katrina. The act provides for SBA-guaranteed private disaster loans to supplement the current system of direct SBA disaster loans. Lenders in the SBA's Preferred Lender Program would be eligible to participate. The SBA would guarantee 85% of loans, subject to a maximum loan size of $2 million. Following a major disaster, the SBA can also hire private contractors to assist in processing disaster loan applications. In the event of a major disaster with extraordinary levels of damage or disruption (such as Hurricane Katrina), SBA may make economic injury disaster loans to small businesses affected by the disaster regardless of location, but priority may be given to small businesses within the disaster area. Usually, only businesses within a disaster area are eligible. The enacted farm bill also requires SBA to create an Immediate Disaster Assistance Program, providing loans to small businesses affected by a disaster with a maximum amount of $25,000 and an 85% SBA guarantee. SBA may defer payments on existing disaster loans for up to four years for those taking out new disaster loans. SBA is also required to assign at least 800 employees to the Office of Disaster Assistance and 1,000 employees to the Disaster Cadre. In FY2007, the SBA had 2,300 employees working on disaster loans; the Administration requested 921 employees for these functions for FY2009. Title XIII: Commodity Futures Title XIII of the enacted 2008 farm bill includes provisions that reauthorize appropriations for the Commodity Futures Trading Commission (CFTC) for FY2008-FY2013. The bill also makes several amendments to the Commodity Exchange Act to (1) clarify CFTC jurisdiction over retail financial contracts based on foreign currencies, (2) make the CFTC's anti-fraud authority applicable to certain off-exchange or over-the-counter derivatives contracts, (3) increase civil monetary and criminal penalties for violations, (4) permit cross-margining of accounts in security futures and options, and (5) establish CFTC regulation over certain exchange-like trading facilities that are currently exempt from most regulation. The last section is the most controversial, and deals with an issue -- sometimes referred to as the "Enron loophole" -- that Congress has addressed several times since 2000.28 These provisions of the bill would apply to electronic markets, other 28 For more information, see CRS Report RL34555, Speculation and Energy Prices: (continued...) CRS-40 than regulated futures exchanges, where contracts based on energy commodities, metals, and other non-agricultural and non-financial commodities are traded. Under current law, such markets (or electronic trading facilities) are required to notify the CFTC of their operations, but are generally exempt from substantive regulation provided that small public investors are not permitted to trade there. Under the enacted bill, if the CFTC determined (according to criteria set forth in the bill) that such an electronic market played a significant role in the price-setting process (that is, if market participants looked to prices generated there as a guide to their own transactions in the underlying commodities), the market would become subject to a set of regulatory "core principles." These principles amount to a regulatory regime roughly comparable to (but somewhat less extensive than) CFTC regulation of futures exchanges. Markets where "significant price discovery" contracts are traded will be required to prevent price manipulation, monitor trading, report daily figures on price and trade volume, guard against conflicts of interest, and disclose large positions held by individual traders. Failure to comply with these principles would give the CFTC grounds to suspend or revoke the market's registration. Title XIV: Miscellaneous The miscellaneous provisions in the 2008 farm bill cover various provisions that are discussed in other sections of this report, including in the research, energy, and rural development title sections. Below is a discussion of the first two subtitles, covering socially disadvantaged and limited resource producers (Subtitle A) and agricultural security (Subtitle B). The title also includes other miscellaneous provisions (Subtitle C), some of which are not separately detailed in this report. Socially Disadvantaged and Limited Resource Producers. Several provisions in the enacted bill address outreach and assistance for socially disadvantaged farmers and ranchers and limited-resource farmers and ranchers, producers targeted by Section 2501 of the 1990 farm bill. Both the House- and Senate-passed farm bills contained this provision. Other farm bill titles in the bill contain similar provisions for the Section 2501 program, including conservation (Title II), farm credit (Title V), rural development (Title VI), agricultural research (Title VII), and crop insurance and disaster assistance (Title XII). The enacted bill specifies that the Technical and Outreach Assistance Program is to be used to enhance the coordination, outreach, education, and assistance authorized under various USDA programs, and provides $75 million in mandatory funding through FY2012. The bill requires USDA to document the number, location, and economic contributions of socially disadvantaged and limited-resource farmers and ranchers. As part of the efforts to address the needs of socially disadvantaged and limited-resource farmers and ranchers, the bill also authorizes a new USDA Office of Advocacy and Outreach to carry out the Section 2501 program, and also to oversee the Minority Farmer Advisory Committee and carry out the functions of the 28 (...continued) Legislative Responses, and CRS Report RS22912, The Enron Loophole. CRS-41 Office of Outreach and Diversity previously handled by the Office of Assistant Secretary for Civil Rights. The bill also authorizes a new Office of Small Farms and Beginning Farmers and Ranchers, to be subsumed into the Office of Advocacy and Outreach. The bill also addresses the so-called Pigford decision regarding the 1999 class action discrimination suit against USDA. Both the House- and Senate-passed farm bills contained this provision. The bill provides that Pigford claimants who have not had their cases determined on the merits may, in a civil action, obtain such a determination. The enacted bill further specifies steps USDA must take with regard to settling the claim and provides mandatory funding of $100 million for FY2008 to pay for successful claims. Agricultural Security. The 2008 farm bill creates an Office of Homeland Security within USDA to coordinate the department's agroterrorism and agricultural disease efforts and to be a liaison with other federal agencies. It also creates an agricultural biosecurity communications center, and a competitive grant program for agricultural biosecurity and countermeasures development. Regarding foreign animal diseases, the enacted bill adopts the Senate provision that would compel USDA to issue a permit to Department of Homeland Secutiry (DHS) to possess and work with live foot and mouth disease (FMD) virus at the proposed and yet-to-be-built National Bio- and Agro-Defense Facility, subject to compliance with USDA rules for handling "select agents." For more information, see CRS Report RL34160, The National Bio- and Agro-Defense Facility: Issues for Congress. Title XV: Trade and Tax Provisions Supplemental Agricultural Disaster Assistance. During the congressional debate on the omnibus farm bill, some policymakers wanted to make permanent in the farm bill some level of disaster payments to supplement the crop insurance program. Consequently, Title XV authorizes a new $3.8 billion trust fund to cover the estimated cost of making agricultural disaster assistance available on an ongoing basis over the next four years (FY2008-FY2011) through five new programs. The largest of the new farm disaster assistance programs authorized through the 2008 farm bill is a supplemental revenue assistance payment program for crop producers. The program is designed to compensate eligible producers for a portion of crop losses that are not eligible for an indemnity payment under the crop insurance program (i.e., the portion of losses that is part of the deductible on the policy). An eligible producer can receive a payment equal to 60% of the difference between a target level of revenue and the actual total farm revenue for the entire farm. The target level of revenue will be based on the level of crop insurance coverage selected by the farmer, thus increasing if a farmer opts for higher levels of coverage. To be eligible for a payment, a producer must be in or contiguous to a county that has been declared a disaster area by either the President or the Secretary of Agriculture. CRS-42 Payments are limited so that the disaster program guarantee level cannot exceed 90% of what income likely would have been in the absence of a natural disaster.29 The producer also must have at least the minimum level of crop insurance (CAT) coverage for insurable crops and participate in the NAP program for non-insurable crops. The statute makes an exception for the 2008 crop year by allowing producers who did not purchase crop insurance or NAP coverage in advance to be eligible for the program, as long as they pay the equivalent administrative fee for coverage within 90 days of enactment (September 16, 2008). Final payments for 2008 crop losses cannot be determined until late 2009, since a portion of the disaster payment formula is based on the national average market price of the commodity, which is determined at the end of the marketing year. For example, the 2008 marketing year for corn and soybeans ends September 30, 2009. In addition to the supplemental crop revenue assistance payment program described above, the 2008 farm bill also authorizes and funds four smaller disaster programs also through FY2011: (1) Livestock Indemnity Payments, which compensate ranchers at a rate of 75% of market value for livestock mortality caused by a disaster; (2) Livestock Forage Disaster Program, to assist ranchers who graze livestock on drought-affected pastureland or grazing land; (3) Emergency Assistance for Livestock, Honey Bess and Farm Raised Fish, which will provide up to $50 million to compensate these producers for disaster losses not covered under other disaster programs; and (4) the Tree Assistance Program, for orchardists and nursery growers who can receive a payment to cover 70% of the cost of replanting trees or nursery stock following a disaster (up to $100,000 per year per producer). For more information on crop insurance and disaster assistance, see CRS Report RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm Bill, and CRS Report RS21212, Agricultural Disaster Assistance. Tax Provisions. The tax portions (Title XV) of the 2008 farm bill differ markedly from those in either the House- or the Senate-passed versions of the bill. The enacted bill's tax cuts consist of six groups, respectively containing provisions for revenue, an agriculture disaster reserve fund, conservation, energy, agriculture, and other provisions. The single largest revenue-raising provision in the 2008 farm bill involves a change in the estimated tax payment of corporations. This provision increases the estimated tax payments of corporations due in the July through September 2012 by a factor of 7.75 percentage points, and raises approximately $4.5 billion in revenue through 2012. Other revenue-raising provisions limit the excess farming losses of certain taxpayers and modify the incentives related to alcohol fuels. The single largest revenue-losing provision in the 2008 farm bill pertains to the agriculture disaster reserve fund, discussed above. Other revenue-losing provisions 29 For a more detailed description of the authorized payment formula, see the full page text box in CRS Report RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm Bill. CRS-43 reduce the depreciable life of race horses 2 years or younger (from seven years to two years), increase the credit for cellulosic biofuel (to $1.01 per gallon less the amount of small-producer ethanol credit claimed and the alcohol mixture credit claimed for ethanol), and create a qualified forest conservation bond pilot program. The enacted farm bill contains tax-related and revenue provisions related to conservation, energy, and agricultural provisions, among other revenue provisions. For example, among the conservation provisions, the bill authorizes a new type of tax-exempt private bond whose proceeds are used to finance $500 million in forest conservation; it also modifies income tax deductions for qualified timber gains. The farm bill also includes several provisions which loosen the rules associated with the tax treatment of timber real estate investment trusts (REITs). For example, the allowable size of a REIT's taxable REIT subsidiary was expanded to 25% of REIT assets; the treatment of mineral royalty income as REIT qualified income; the reduction in the excise tax safe-harbor holding period from 4 years to 2 years for timber property sold to a qualified organization exclusively for conservation purposes. Although the enacted farm bill contains many of the provisions from the Senate- passed bill and one of the two tax provisions in the House-passed bill, it does not include the largest single revenue-raising provision from either bill. The Senate bill included a provision designed to curtail the use of tax shelters, involving the codification of the judicial "economic substance" doctrine that has developed in court cases related to tax shelters.30 In general terms, the doctrine denies the use of tax- reducing items, such as tax deductions and credits, generated by transactions that do not result in a meaningful change in the taxpayer's economic position. The House bill included a provision designed to curb what is sometimes termed "treaty shopping" -- situations where a foreign firm with a U.S. subsidiary routes payments from its U.S. subsidiary through a subsidiary in another country so as to take advantage of tax-treaty benefits. These provisions were not included as part of the enacted 2008 farm bill. 30 For additional information on the tax provisions of the House and Senate farm bills, see CRS Report RS22759, Farm Legislation and Taxes in the 110th Congress. CRS-44 Major Provisions of the Enacted 2008 Farm Bill (P.L. 110-246) Compared with Previous Law and the House- and Senate-Passed Bills (H.R. 2419) SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) "Farm Security and Rural Investment Act "Farm, Nutrition, and Bioenergy Act of "Food and Energy Security Act of 2007" "Food, Conservation, and Energy Act of of 2002" [7 U.S.C. 7901 note] 2007" [Sec. 1] [Sec. 1] 2008" [P.L. 110-246] TITLE I: COMMODITIES GRAINS, COTTON, PEANUTS, AND MINOR COMMODITIES (TITLE I) Definitions Agricultural Act of 1949: 7 U.S.C. 1421 Agricultural Act of 1949: same as prior No comparable definition. No comparable definition. et seq. as in effect before the suspensions law, with the addition of reference to under the 1996 farm bill (Federal suspensions under the 2002 farm bill and Agricultural Improvement and Reform Sec. 1502(b) of this act. [Sec. 1001(1)] Act, P.L. 104-127). [7 U.S.C. 7901(1)] No comparable definition. No comparable definition. Average Crop Revenue Payment: A Average Crop Revenue Election payment made to producers under Payment: Adopts Senate definition, with average crop revenue payment change of name. [Sec. 1001(1)] provisions. [Sec. 1001(1)] Base acres: the number of base acres Base acres: the number of base acres of Base acres: same as House definition, Base acres: Adopts House provision, established by the owner of the farm a covered commodity on a farm except covered commodity does not with special mention of peanuts. [Sec. under base acre provisions. [7 U.S.C. established under the 2002 farm bill (7 include peanuts. [Sec. 1001(2)] Same 1001(2)] Same definition for peanuts. 7901 (2)] Same definition for peanuts. [7 U.S.C. 7911, 7952), as in effect the day definition for peanuts. [Sec. 1301(1)] [Sec. 1301(1)] U.S.C. 7951(1)] before enactment of this act, subject to adjustment. [Sec. 1001(2)] No comparable definition. Comparable United States Quality: No comparable definition. No comparable definition. upland cotton classified as Middling 1 3/32-inch cotton, micronaire of 3.7 to 4.2, strength 30 grams per tex, uniformity of 83. [Sec. 1001(3)] Counter-cyclical payment: a payment to Counter-cyclical payment: a payment to Counter-cyclical payment: a payment to Counter-cyclical payment: Adopts producers on a farm under counter- producers on a farm under traditional or producers on a farm under traditional Senate provision. [Sec. 1001(3)] Same cyclical payment provisions. [7 U.S.C. revenue-based counter-cyclical payment counter-cyclical payment provisions. definition for peanuts. [Sec. 1301(2)] 7001(3)] Same definition for peanuts. [7 provisions. [Sec. 1001(4)] [Sec. 1001(3)] Same definition for U.S.C. 7951(2)] peanuts. [Sec. 1301(2)] CRS-45 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Covered commodity: wheat, corn, grain Covered commodity: same as prior law, Covered commodity: same as prior law, Covered commodity: Adopts Senate sorghum, barley, oats, upland cotton, except adds peanuts. [Sec. 1001(5)] except differentiates between long and definition. Includes wheat, corn, grain rice, soybeans, and other oilseeds. [7 medium grain rice, and adds pulse crops. sorghum, barley, oats, upland cotton, U.S.C. 7901(4)] [Sec. 1001(4)] long grain rice, medium grain rice, pulse crops, soybeans, and other oilseeds. [Sec. 1001(4)] Direct payment: a payment made to Direct payment: same as prior law. [Sec. Direct payment: same as prior law. [Sec. Direct payment: Adopts Senate producers on a farm under direct 1001(6)] 1001(5)] Same definition for peanuts. definition. [Sec. 1001(5)] Same payment provisions. [7 U.S.C. 7901(5)] [Sec. 1301(3)] definition for peanuts. [Sec. 1301(3)] Effective price: for a covered Effective price: same as prior law. [Sec. Effective price: same as prior law. [Sec. Effective price: Adopts Senate commodity for a crop year, the price 1001(7)] 1001(6)] Same definition for peanuts. definition. [Sec. 1001(6)] Same calculated by USDA under counter- [Sec. 1301(4)] definition for peanuts. [Sec. 1301(4)] cyclical payment provisions to determine whether payments are required for that crop year. [7 U.S.C. 7901(6)] Extra long staple cotton: cotton that (A) Extra long staple cotton: same as prior Extra long staple cotton: same as prior Extra long staple cotton: Adopts House is produced from pure strain varieties of law. [Sec. 1001(8)] law. [Sec. 1001(7)] provision. [Sec. 1001(7)] the Barbadense species or any hybrid of the species, or other similar types of extra long staple cotton having characteristics needed for various end uses for which U.S. upland cotton is not suitable, and grown in irrigated or other designated U.S. cotton-growing regions; and (B) is ginned on a roller-type gin or, other authorized gin for experimental purposes. [7 U.S.C. 7901(7)] No comparable definition. Far East Price: the Friday through No comparable definition. No comparable definition. Thursday average price quotation for the three lowest-priced growths of upland cotton, as quoted for Middling (M) 1 3/32-inch cotton, delivered C/F Far East. [Sec. 1001(9)] Loan commodity: wheat, corn, grain Loan commodity: same as prior law, Loan commodity: same as House Loan commodity: Adopts Senate sorghum, barley, oats, upland cotton, except differentiates feed barley and malt definition, except does not differentiate definition, but differentiates graded wool extra long staple cotton, rice, soybeans, barley; differentiates long, medium, and types of barley; does not include small and nongraded wool. Includes wheat, CRS-46 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) other oilseeds, wool, mohair, honey, dry short grain rice; and includes peanuts. grain rice directly (although included in corn, grain sorghum, barley, oats, upland peas, lentils, and small chickpeas. [Sec. 1001(10)] definition of medium grain rice); cotton, extra long staple cotton, long [7 U.S.C. 7901(8)] excludes peanuts which are treated grain rice, medium grain rice, soybeans, separately; and includes large chickpeas. other oilseeds, graded wool, nongraded [Sec. 1001(8)] wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas. [Sec. 1001(8)] No comparable definition. No comparable definition. Medium grain rice: includes short grain Medium grain rice: Adopts Senate rice. [Sec. 1001(9)] definition. [Sec. 1001(9)] Other oilseed: sunflower seed, rapeseed, Other oilseed: sunflower seed, rapeseed, Other oilseed: same as House definition, Other oilseed: Adopts House definition. canola, safflower, flaxseed, mustard seed, canola, safflower, flaxseed, mustard seed, except adds camelina. [Sec. 1001(10)] [Sec. 1001(10)] or, if designated by the Secretary, another crambe, sesame seed, or, if designated by oilseed. Crambe and sesame seed were the Secretary, another oilseed. [Sec. added by P.L. 108-7, Division A, Sec. 1001(11)] 763. [7 U.S.C. 7901(9)] Payment acres: 85% of the base acres Payment acres: same as prior law. [Sec. Payment acres: same as prior law. [Sec. Payment acres: Generally, 85% of base for the covered commodity on which 1001(12)] 1001(11)] Same definition for peanuts. acres for the covered commodity for direct payments and counter-cyclical [Sec. 1301(5)] direct and counter-cyclical payments. payments are made. [7 U.S.C. 7901(10)] Exception: 83.3% of base acres for direct Same definition for peanuts. [7 U.S.C. payments only for crop years 2009-2011. 7951(6)] [Sec. 1001(11)] Same definition for peanuts. [Sec. 1301(5)] Payment yield: in general, the yield Payment yield: the yield established for Payment yield: same as House Payment yield: Adopts Senate established under Sec. 1102 for a covered direct payments and counter-cyclical definition, except does not include definition, and includes yields established commodity. "Updated payment yield" payments for a farm for a covered peanuts. [Sec. 1001(12)] Same definition for new commodities in Sec. 1102. [Sec. means the yield established to calculate commodity and peanuts under the 2002 for peanuts. [Sec. 1301(6)] 1001(12)] Same definition for peanuts. counter-cyclical payments. [7 U.S.C. farm bill as in effect on the day before [Sec. 1301(6)] 7901(11) Same definition for peanuts. [7 the date of the enactment of this act. U.S.C. 7951(7)] [Sec. 1001(13)] Producer: generally, an owner, operator, Producer: same as prior law. [Sec. Producer: same as prior law. [Sec. Producer: Adopts Senate definition. landlord, tenant, or sharecropper that 1001(14)] 1001(13)] Same definition for peanuts. [Sec. 1001(13)] Same definition for shares in the risk of producing a crop and [Sec. 1001(7)] peanuts. [Sec. 1301(7)] is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced. For a grower of hybrid seed, the CRS-47 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) existence of a hybrid seed contract and other program rules shall not adversely affect the ability to receive a payment. [7 U.S.C. 7901(12)] Same definition for peanuts. [7 U.S.C. 7951(8)] No comparable definition. No comparable definition. Pulse crop: dry peas, lentils, small Pulse crop: Adopts Senate definition. chickpeas, and large chickpeas. [Sec. [Sec. 1001(14)] 1001(14)] Secretary: the Secretary of Agriculture. Secretary: same as prior law. [Sec. No comparable definition. No comparable definition. [7 U.S.C. 7901(13)] Same definition for 1001(15)] peanuts. [7 U.S.C. 7951(9)] State: each of the U.S. States, the District State: same as prior law. [Sec. 1001(16)] State: same as prior law. [Sec. 1001(15)] State: Adopts Senate definition. [Sec. of Columbia, the Commonwealth of Same definition for peanuts. [Sec. 1001(15)] Same definition for peanuts. Puerto Rico, or U.S. territory/possession. 1301(8)] [Sec. 1301(8)] [7 U.S.C. 7901(14)] Same definition for peanuts. [7 U.S.C. 7951(10)] Target price: the price per unit of a Target price: same as prior law. [Sec. Target price: same as prior law. [Sec. Target price: Adopts Senate definition. covered commodity used to determine 1001(17)] 1001(16)] Same definition for peanuts. [Sec. 1001(16)] Same definition for the payment rate for counter-cyclical [Sec. 1301(9)] peanuts. [Sec. 1301(9)] payments. [7 U.S.C. 7901(15)] Same definition for peanuts. [7 U.S.C. 7951(11)] United States: when used in a United States: same as prior law. [Sec. United States: same as prior law. [Sec. United States: Adopts Senate definition. geographical sense, all of the States. [7 1001(18)] 1001(17)] Same definition for peanuts. [Sec. 1001(17)] Same definition for U.S.C. 7901(16)] Same definition for [Sec. 1301(10)] peanuts. [Sec. 1301(10)] peanuts. [7 U.S.C. 7951(12)] No comparable definition. United States Premium Factor: the No comparable definition. United States Premium Factor: Adopts percentage by which the difference in the the House definition. [Sec. 1001(18)] U.S. loan schedule premiums for Strict Middling (SM) 1 1/8-inch cotton and for M 1 3/32-inch exceeds the difference in the applicable premiums for comparable international qualities delivered C/F Far East. [Sec. 1001(19)] CRS-48 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Base Acres and Program Yields Base acres: for each covered commodity Base acres: no choice of updating base Base acres: same as House bill, except Base acres: Adopts Senate provision. on a farm, base acres are established by acres or payment yields, except requires provides for adjustment to include pulse [Sec. 1101(a)-(c)(1)] Same provision for the owner's choice of (1) average of USDA to provide base acre adjustments crops, camelina, or newly designated peanuts. [Sec. 1302(a)-(c)(1)] 1998-2001 plantings, or (2) the sum of when a CRP contract ends. [Sec. 1101] oilseed acreage. [Sec. 1101(a)-(c)(1)] production flexibility contract acreage Same provision for peanuts. [Sec. under 1996 farm bill plus average oilseed 1302(a)-(c)(1)] acreage from 1998-2001. Accommodation for peanut acres, double cropping, and CRP acres. Base cannot exceed total crop land. Payment acres = 85% of base acres. [7 U.S.C. 7911] Base acres for peanuts also based on the 1998-2001 period. [7 U.S.C. 7952] No comparable provision. No comparable provision. Required reduction of base acres: Adopts Senate provision, with suspend direct, counter-cyclical, and modification. Reduction in base acres is average crop revenue payments and required for land that is "subdivided and reduce base acres for land that is no developed for multiple residential units longer used for farming. Specifically, or other nonfarming uses" unless the land that has been developed for producers "demonstrate that the land "commercial or industrial use or has been remains devoted to commercial subdivided and developed for multiple agriculture production or is likely to be residential units or other nonfarming returned to agricultural use." [Sec. uses" unless producer demonstrates the 1101(c)(2)] Same provision for peanuts. land is devoted exclusively to agricultural [Sec. 1302(c)(2)] production. [Sec. 1101(c)(2)] Same provision for peanuts. [Sec. 1302(c)(2)] No comparable provision. No comparable provision. Requires USDA to track reconstitutions Adopts Senate provision. [Sec. of land and report to Congress to ensure 1101(c)(3)] Same provision for peanuts. that commercial or residential land is not [Sec. 1302(c)(3)] eligible for payments. [Sec. 1101(c)(3)] Same provision for peanuts. [Sec. 1302(c)(3)] Direct payment yield: for each covered No provision to change payment yield; Payment yields: Establishes payment Payment yields: Adopts Senate commodity on a farm, a direct payment payment yields are continued from prior yields for designated oilseeds, camelina, provision. [Sec. 1102] yield is the yield established for the 1995 law by definition. or pulse crops using 1998-2001 farm crop; the yield for oilseeds is the average yields, adjusted back to the national CRS-49 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) from 1998-2001, adjusted back to the average from 1981-85. [Sec. 1102] national average from 1981-85. Counter-cyclical payment yield may be an updated yield using specified formulas. [7 U.S.C. 7912] Payment yields for peanuts are established using the 1998-2001 period. [7 U.S.C. 7952] No comparable provision. No comparable provision. Apportion base acres for long grain and Adopts the Senate provision. [Sec. 1108] medium grain rice based on average acreage planted to each type of rice in the applicable state during the 2003-2006 crop years to make counter-cyclical payments. Producers may elect to use farm-level planting history. Established totals of base acres, payment acres, and yields are maintained. [Sec. 1107] Prohibition on Small Payments No comparable provision. No payments under $25: no payment No comparable provision. No direct, counter-cyclical, or average will be made if the total direct payment crop revenue election payments will be to a producer on a farm for all covered made on farms with less than a total of 10 commodities is less than $25. [Sec. bases acres, except for limited resource 1102(e)] Same provision is made for or socially disadvantaged farms. counter-cyclical payments [Sec. 1102(e)], Requires USDA to report on the effect of and revenue-based counter-cyclical the provision. [Sec. 1101(d)] Same payments. [Sec. 1104(i)] provision for peanuts. [Sec. 1302(d)] Report language instructs USDA to allow for aggregation of farms when implementing the 10-acre requirement. Producer Agreement Eligibility for payments requires Same as prior law. [Sec. 1105(a)] Same as prior law, except adds provision Adopts House provision, except adds a producers to comply with conservation, that land cannot be used for a residential provision that land cannot be used for a wetland, and planting flexibility use (including land subdivided and residential use, and requires farmers in requirements; use base acres for developed into residential units or other the ACRE program to report production. agricultural or conserving use, and not nonfarming uses, or that is otherwise no [Sec. 1106(a)] Same provision for for nonagricultural commercial or longer intended to be used in conjunction peanuts. [Sec. 1305(a)] industrial use; control noxious weeds and with farming (like Sec. 1101(c)(2)). CRS-50 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) maintain sound agricultural practices. [7 [Sec. 1105(a)] Same provision for U.S.C. 7915(a)] Same provision for peanuts. [Sec. 1305(a)] Same provision peanuts. [7 U.S.C. 7955(a)] for Average Crop Revenue (ACR) program, except does not require compliance with planting flexibility provisions since ACR has its own planting flexibility rules. Requires USDA to certify entities receiving payments are producers. [Sec. 1402(a)] Sets requirements for transfer of interest Same as prior law. [Sec. 1105(b)-(e)] Same as prior law, except adds that no Adopts Senate provision, and applies to in base acres. Requires acreage reports. penalty shall be assessed for inaccurate ACRE program. [Sec. 1106(b)-(e)] Same Protects interests of tenants and acreage report unless producers provision for peanuts. [Sec. 1305(b)-(e)] sharecroppers and provides for sharing of knowingly and willfully falsified the payments on a farm on an equitable report. [Sec. 1105(b)-(e)] Same basis. [7 U.S.C. 7915(b)-(e)] Same provision for peanuts. [Sec. 1305(b)-(e)] provision for peanuts. [7 U.S.C. 7955(b)- Same provision for Average Crop (e)] Revenue program. [Sec. 1402(b)-(e)] Planting Flexibility Any crop may be planted on base acres, Same as prior law, and incorporates Same as prior law, but the exception Adopts Senate provision. [Sec. 1107(a)- except restrictions are placed on planting peanuts as a covered commodity. [Sec. allows planting mung beans and pulse (c)] Same provision for peanuts. [Sec. of fruits, vegetables, and wild rice on 1106(a)-(c)] crops. [Sec. 1106(a)-(c)] Same provision 1306] base acres. Penalties apply if the fruit for peanuts. [Sec. 1306(a)-(c)] Same and vegetable restriction is violated. provision for Average Crop Revenue Provides an exception for lentils, mung program. [Sec. 1403(a)-c)] beans, and dry peas. Exceptions provided for farms and producers with a history of double-cropping or history of growing fruits and vegetables (except that direct and counter-cyclical payments are reduced acre for acre for the year). [7 U.S.C. 7916] Same provision for peanuts. [7 U.S.C. 7956] No comparable provision. Establishes a pilot Farm Flex project for Same as House provision for traditional Creates a pilot program beginning in planting tomatoes for processing on up to direct and counter-cyclical program 2009 in seven midwestern states to allow 10,000 base acres in Indiana during the participants, except applies only to 2008 planting of fruits and vegetables for 2008-2012 crop years. Base acres and 2009 crop years. [Sec. 1106(d)] processing on base acres. Limited to temporarily reduced for each acre of No comparable provision for peanut base cucumbers, green peas, lima beans, CRS-51 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) tomatoes, and are protected for future acres in Sec. 1306. pumpkins, snap beans, sweet corn, and use. [Sec. 1106(d)] tomatoes grown for processing. States For participants in the ACR program, include Minnesota (34,000 acres), establishes pilot Farm Flex project for Wisconsin (9,000 acres), Michigan planting any fruit or vegetable for (9,000 acres), Illinois (9,000 acres), processing on up to 10,000 acres in Indiana (9,000 acres), Ohio (4,000 acres), certain states (IL, IN, IA, MI, MN, OH, and Iowa (1,000 acres). Base acres are WI). Available for the 2010-2012 crop temporarily reduced for the year, but are years. Base acres temporarily reduced restored for the next crop year and for each acre of fruit and vegetables, and "considered planted" for any future base protected for future use. [Sec. 1403(d)] calculations. [Sec. 1107(d)] Direct Payments Direct payments: available to producers Direct payments: continues prior law to Direct payments: continues prior law to Direct payments: Continues prior law to on farms with payment yields and base cover 2008-2012 crop years. [Sec. cover 2008-2012 crop years. Excludes cover 2008-2012 crop years. acres. Covers 2002-2007 crop years. [7 1102(a)] participants in the ACR program under [Sec.1103(a)] Direct payment for peanuts U.S.C. 7913(a)] Direct payments for Sec. 1401. [Sec. 1103(a)] Direct continued separately [Sec. 1303(a)] peanuts authorized separately. [7 U.S.C. payments for peanuts authorized 7953(a)] separately. [Sec. 1303(a)] Direct payment rates: Same as prior law; incorporates peanuts Same as prior law, except differentiates Adopts Senate provision. [Sec. 1103(b)] Wheat, bushel (bu.), $0.52 into same section. [Sec. 1102(b)] between long grain rice and medium Separate provision for peanuts. [Sec. Corn, bu., $0.28 grain rice (both at $2.35 per cwt.). [Sec. 1303(b)] Grain sorghum, bu., $0.35 1103(b)] Peanuts, ton, $36 [Sec. Barley, bu., $0.24 1303(b)] Oats, bu., $0.024 Upland cotton, lb., $0.0667 Rice, cwt., $2.35 Soybeans, bu., $0.44 Other oilseeds, lb., $0.0080 [7 U.S.C. 7913(b)] Peanuts, ton, $36 [7 U.S.C. 7953(b)] Payment amount = Payment rate, times Same as prior law. [Sec. 1102(c)] Same as House provision. [Sec. 1103(c)] Same as prior law, except a ratio of 85% of base acres, times direct payment Separate provision for peanuts [Sec. 83.3% of base acres is used for crop yield. [7 U.S.C. 7913(c)] Same formula 1303(c)] years 2009-2011. [Sec. 1103(c)] Separate for peanuts. [7 U.S.C. 7953(d)] provision for peanuts. [Sec. 1303(c)] Timing: Generally paid after October 1 Timing: Same as prior law, except (1) Same as House provision. [Sec. 1103(d)] Adopts Senate provision. [Sec. 1103(d)] of the calendar year of the year of applies to peanuts in the same section, Separate provision for peanuts [Sec. Separate provision for peanuts [Sec. CRS-52 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) harvest. Advance payments up to 50% and (2) the 22% advance payment option 1303(d)] 1303(d)] (later reduced to 22% by P.L. 109-171) applies only to crop years 2008-2011. No beginning as early as December 1 of the advance payment for crop year 2012 and calendar year before harvest, at the thereafter. [Sec. 1102(d)] option of the producer. [7 U.S.C. 7913(d)] For peanuts: generally, before October 1 of the year of harvest. Similar advance payments. [7 U.S.C. 7953(e)] Counter-cyclical Payments Counter-cyclical payments: if the Counter-cyclical payments: same as Counter-cyclical payments: same as Counter-cyclical payments: continues effective price for a covered commodity prior law, except it covers 2008-2012 prior law, except it covers 2008-2012 prior law to cover 2008-2012 crop years. is less than the target price, a payment is crop years. [Sec. 1103(a)] crop years. Excludes participants in the [Sec.1104(a)] Counter-cyclical payments available to producers on farms with ACR program. [Sec. 1104(a)] Counter- for peanuts continued separately [Sec. payment yields and base acres. Covers cyclical payments for peanuts authorized 1304(a)] 2002-2007 crop years. [7 U.S.C. separately. [Sec.1304(a)] 7914(a)] Counter-cyclical payments for peanuts authorized separately. [7 U.S.C. 7954(a)] Effective price: the higher of (1) the Same as prior law, except applies to Same as prior law, except computed for Adopts Senate provision. [Sec. 1104(b)] national season average market price or peanuts and clarifies that effective price rice using prices by type of rice. [Sec. Adopts Senate provision for peanuts. (2) national average loan rate plus the for rice and barley are to be computed 1104(b)] Same as prior law for peanuts. [Sec. 1304(b)] direct payment rate. [7 U.S.C. 7914(b)] notwithstanding separate loan rates by [Sec. 1304(b)] Same provision for peanuts. [7 U.S.C. type of rice or barley. [Sec. 1103(b)] 7954(b)] Target prices for 2004-2007 crop years: Target prices: Target prices: Target prices: Wheat, bu., $3.92 Wheat, bu., $4.15 Wheat, bu., $4.20 2008 crop year (same as prior law, Corn, bu., $2.63 Corn, bu., $2.63 Corn, bu., $2.63 except cotton lower) [Sec. 1104(c)(1)] Grain sorghum, bu., $2.57 Grain sorghum, bu., $2.57 Grain sorghum, bu., $2.63 Wheat, bu., $3.92 Barley, bu., $2.24 Barley, bu., $2.73 Barley, bu., $2.63 Corn, bu., $2.63 Oats, bu., $1.44 Oats, bu., $1.50 Oats, bu., $1.83 Grain sorghum, bu., $2.57 Upland cotton, lb., $0.7240 Upland cotton, lb., $0.70 Upland cotton, lb., $0.7225 Barley, bu., $2.24 Rice, cwt., $10.50 Rice, cwt., $10.50 Long grain rice, cwt., $10.50 Oats, bu., $1.44 Medium grain rice, cwt., $10.50 Upland cotton, lb., $0.7125 Soybeans, bu., $5.80 Soybeans, bu., $6.10 Soybeans, bu., $6.00 Long grain rice, cwt., $10.50 Other oilseeds, lb., $0.1010 Other oilseeds, lb., $0.1150 Other oilseeds, cwt., $12.74 Medium grain rice, cwt., $10.50 Peanuts, ton, $495 [Sec. 1103(c)] Dry peas, cwt., $8.33 Soybeans, bu., $5.80 Lentils, cwt., $12.82 Other oilseeds, cwt., $10.10 CRS-53 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) (Different target prices applied to 2002- Small chickpeas, cwt., $10.36 Peanuts, ton, $495 [Sec. 1304(c)] 2003 crop years). [7 U.S.C. 7914(c)] Large chickpeas, cwt., $12.82 Peanuts, ton, $495 [7 U.S.C. 7954(c)] [Sec. 1104(c)] 2009 crop year (same as 2008, except Peanuts, ton, $495 [Sec. 1304(c)] four new crops: dry peas, lentils, small and large chickpeas) [Sec. 1104(c)(2)] Wheat, bu., $3.92 Corn, bu., $2.63 Grain sorghum, bu., $2.57 Barley, bu., $2.24 Oats, bu., $1.44 Upland cotton, lb., $0.7125 Long grain rice, cwt., $10.50 Medium grain rice, cwt., $10.50 Soybeans, bu., $5.80 Other oilseeds, cwt., $10.10 Dry peas, cwt., $8.32 Lentils, cwt., $12.81 Small chickpeas, cwt., $10.36 Large chickpeas, cwt., $12.81 Peanuts, ton, $495 [Sec. 1304(c)] 2010-2012 crop years (increases for wheat, sorghum, barley, oats, soybeans, and minor oilseeds) [Sec. 1104(c)(3)] Wheat, bu., $4.17 Corn, bu., $2.63 Grain sorghum, bu., $2.63 Barley, bu., $2.63 Oats, bu., $1.79 Upland cotton, lb., $0.7125 Long grain rice, cwt., $10.50 Medium grain rice, cwt., $10.50 Soybeans, bu., $6.00 Other oilseeds, cwt., $12.68 Dry peas, cwt., $8.32 Lentils, cwt., $12.81 Small chickpeas, cwt., $10.36 Large chickpeas, cwt., $12.81 Peanuts, ton, $495 [Sec. 1304(c)] CRS-54 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Payment amount = target price minus Same as prior law. [Sec. 1103(d)-(e)] Same as prior law. [Sec. 1104(d)-(e)] Adopts Senate provision. [Sec. 1104(d)- effective price (if the difference is greater Same formula for peanuts. [Sec. 1304(d)- (e)] Adopts Senate provision for peanuts. than 0), times 85% of base acres, times (e)] [Sec. 1304(d)-(e)] counter-cyclical payment yield. [7 U.S.C. 7913(d)-(e)] Same formula for peanuts. [7 U.S.C. 7954(d)-(f)] Timing: generally, after the end of the Timing: generally, the later of (1) the Timing: generally, beginning October 1 Adopts Senate provision, with 12-month marketing year. Advance end of the 12-month marketing year, or after the end of the marketing year. modification. [Sec. 1104(f)] Same payments are available; for the 2007 crop (2) October 1 of the same calendar year Advance payments same as in House bill. provision for peanuts. [Sec. 1304(f)] year, one advance payment of 40% of as the end of the marketing year. [Sec. 1104(f)] Same provision for expected payment after first 6 months of Advance payments for 2008-2010 crop peanuts. [Sec. 1304(f)] marketing year (for 2002-2006, two years: one advance payment of 40% after advance payments, each 35% of the first 6 months of marketing year. No expected payment, in October of harvest advance payments after 2010 crop year. year, and after February 1 of the next [Sec. 1103(f)] calendar year). [7 U.S.C. 7914(f)] Same provision for peanuts. [7 U.S.C. 7954(g)] Revenue-based Counter-cyclical Payments No comparable provision. Revenue-based Counter-Cyclical Average Crop Revenue (ACR) Average Crop Revenue Election Payments (RCCP): an alternative to program: an alternative to traditional (ACRE) program: Adopts Senate traditional counter-cyclical payments. direct payments, counter-cyclical approach, with significant modifications. Covers crop years 2008-2012. Producers payments, and nonrecourse marketing An alternative to traditional counter- have one opportunity to elect RCCP loans for covered commodities and cyclical payments for covered option soon after enactment. Traditional peanuts. Producers have one opportunity commodities and peanuts, with a counter-cyclical payments remain the to elect ACR option: for 2010-12 crop reduction in direct payments and default if no election is made. [Sec. years, 2011-12. or 2012. Traditional marketing loan rates for participants. 1104(a)] programs remain the default if no Producers can enter any year of the 2009- election is made. [Sec. 1401(a)] 2012 crop years, but cannot return to the traditional counter-cyclical program. [Sec. 1105(a)] -- No comparable provision. (Continue -- Fixed payment component = $15 -- Continue traditional direct payments, using traditional direct payments.) per acre times 100% of base acres. [Sec. but reduce them by 20% for ACRE 1401(b)(2)] participants. [Sec. 1105(a)(1)] -- Revenue-based payment if national -- Revenue-based component if actual -- Revenue-based payment based on a actual revenue per acre is less than the state revenue is less than a guaranteed two-part trigger: (1) if actual state national target revenue per acre for the level for the covered commodity. [Sec. revenue is less than a guaranteed state CRS-55 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) covered commodity. [Sec. 1104(b)] 1401(b)(3)] level for the covered commodity, and (2) if actual farm revenue is less than a farm ACRE benchmark for the covered commodity. [Sec. 1105(b)] -- No comparable provision. (Continue -- Recourse loans available on actual -- Continue using nonrecourse using traditional marketing loan production of a covered commodity. marketing loan program, but reduce loan program.) Loans must be repaid in full; traditional rates by 30% for ACRE participants. nonrecourse loans, loan deficiency [Sec. 1105(a)(1)] payments, and marketing loan gains unavailable. [Sec. 1401(f)] National actual revenue per acre = Actual state revenue per acre = actual Actual state revenue per acre = actual national average yield for the year times state yield, times the ACR harvest price. state yield, times the national average the higher of (1) national season average Actual state yield is the actual quantity market price. Actual state yield is the market price, or (2) loan rate. An all-rice produced in the state during the crop actual quantity produced in the state and all-barley loan rate will be used for year, divided by planted acres. ACR during the crop year, divided by planted those commodities. [Sec. 1104(c)] harvest price is the harvest price used to acres. National average market price is calculate revenue under Federal Crop the greater of the national average price Insurance program. [Sec. 1401(c)] received during the 12-month marketing year, or the marketing loan rate after being reduced by 30%. [Sec. 1105(c)] National target revenue per acre: Average crop revenue guarantee per ACRE program guarantee per acre = Wheat, $149.92/acre acre = 90% times the expected state yield 90% times the benchmark state yield, Corn, $344.12/acre per planted acre, times the average of the times the ACRE program guarantee Grain Sorghum, $131.28/acre pre-planting price for the crop year and price. The benchmark state yield is a 5- Barley, $153.30/acre the preceding 2 crop years. The expected year Olympic average state yield. The Oats, $92.10/acre state yield for a crop year is projected ACRE program guarantee price is a 2- Upland cotton, $496.93/acre from a trend using 1980-2006 data. The year average of the national average Rice, $548.06/acre pre-planting price is the price used to market price, as defined above. The Soybeans, $231.87/acre calculate revenue under the Federal Crop ACRE program guarantee cannot change Other oilseeds, $129.18/acre Insurance program, and cannot decrease more than 10% from the previous year. Peanuts, $683.83/acre or increase more than 15% from the If more than 25% of a state's acreage is [Sec. 1104(d)] preceding year. [Sec. 1401(d)] irrigated and 25% is non-irrigated, separate guarantees shall apply. [Sec. National payment yield: 1105(d)] Wheat, 36.1 bu./acre Corn, 114.4 bu./acre Actual farm revenue per acre = actual Grain Sorghum, 58.2 bu./acre farm yield, times the greater of the Barley, 48.6 bu./acre national average price received during CRS-56 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Oats, 49.8 bu./acre the 12-month marketing year or the Upland cotton, 634 lb./acre marketing loan rate after being reduced Rice, 51.28 cwt./acre by 30%. [Sec. 1105(e)] Soybeans, 34.1 bu./acre Other oilseeds, 1167.6 lb./acre Farm ACRE benchmark revenue per Peanuts, 1.496 ton/acre acre = the 5-year Olympic average farm [Sec. 1104(e)] yield, times the ACRE program guarantee price; plus the crop insurance National payment rate = National target premium per acre. [Sec. 1105(f)] revenue per acre minus national actual revenue per acre (if difference greater than 0), divided by national payment yield. [Sec. 1104(f)] Payment amount = National payment Revenue-based payment amount = the Payment amount = the product of (1) rate, times 85% of base acres, times average crop revenue program guarantee the lesser of (a) the ACRE program payment yield. [Sec. 1104(g)] minus the actual state revenue (if the guarantee minus actual state revenue or difference is greater than 0), times 85% (b) 25% of the ACRE program guarantee, of the base acres on the farm for the times (2) 83.3% (2009-2011) or 85% covered commodity, times the ratio of the (2012) of the acreage planted of the actual production history (APH) on the covered commodity (not to exceed base farm divided by the expected state yield, acres of the commodity), times (3) the 5- times 90%. This formula multiplies a year Olympic average farm yield divided state-level payment rate per acre times by the 5-year Olympic average state 85% of base acres, then pro-rates the yield. This formula multiplies a state- payment based on the farm's yield level payment rate per acre (up to a history compared to the expected state maximum of 25% of the guarantee level) yield; the payment is then reduced by times a percentage of planted acreage, 10%. [Sec. 1401(e)] then pro-rates the payment based on the farm's yield history compared to the state's yield history. [Sec. 1105(g)] Timing: Generally, later of (1) end of the Timing: Beginning October 1 after the Timing: Beginning October 1 after the 12-month marketing year, or (2) October end of the marketing year for both the end of the marketing year. No advance 1 of the same calendar year as the end of fixed payment and the revenue-based payments. [Sec. 1105(b)(3)] the marketing year. Advance payments component. No advance payments. This for 2008-2010 crop years: 40% of delays the ACR direct payment expected payment after the first 6 months component one year compared to of marketing year. No advance payments traditional direct payments. [Sec. after 2010 crop year. [Sec. 1104(h)] 1401(b)(4)] CRS-57 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Nonrecourse Marketing Loans and Other Recourse Loans Nonrecourse marketing loans: available Same as prior law, except it covers 2008- Same as prior law, except it covers 2008- Generally continues prior law to cover for any amount of a loan commodity 2012 crop years, and includes peanuts. 2012 crop years, and excludes 2008-2012 crop years. [Sec.1201] produced in crop years 2002-2007. [Sec. 1201(a)-(d)] participants in the ACR program. [Sec. Nonrecourse marketing loans for peanuts Addresses commingled commodities, and 1201] Nonrecourse marketing loans for continued separately [Sec. 1307(a)(1)- requires compliance with conservation peanuts authorized separately. [Sec. (3)] Deletes House and Senate provisions and wetlands requirements. [7 U.S.C. 1303(a)(1)-(4)] for commingled commodities and 7931] Nonrecourse marketing loans for peanuts. peanuts authorized separately. [7 U.S.C. 7957(a)(1)-(3)] For peanuts, nonrecourse marketing loans Same as prior law, except it covers 2008- For peanuts, same as House provision For peanuts, adopts Senate provisions, available in crop years 2002-2007. May 2012 crop years, and payment for peanut [Sec. 1307(a)(5)-(6), (8)], except it including payments for peanut storage, be obtained through marketing storage costs is not authorized. [Sec. authorizes payment of storage, handling, except storage payments begin with 2008 cooperative or association approved by 1201(e)] and associated costs, and does so in such crop year. [Sec. 1307(a)(4)-(7)] USDA. Storage to be provided on a non- a way that handling and associated costs discriminatory basis and under any are not deducted from a producer's loan, additional requirements. Payment of but instead advanced when peanuts are peanut storage costs authorized for 2002- placed under loan and repaid when 2006 crops. [7 U.S.C. 7957(a)(4)-(7)] peanuts are redeemed. [Sec. 1307(a)(7)] Loan rates for 2004-2007 crop years: Loan rates: Loan rates: Loan rates: Wheat, bu., $2.75 Wheat, bu., $2.94 Wheat, bu., $2.94 2008 crop year (same as prior law) Corn, bu., $1.95 Corn, bu., $1.95 Corn, bu., $1.95 Wheat, bu., $2.75 Grain sorghum, bu., $1.95 Grain sorghum, bu., $1.95 Grain sorghum, bu., $1.95 Corn, bu., $1.95 Barley, bu., $1.85 Malt barley, bu., $2.50 Barley, bu., $1.95 Grain sorghum, bu., $1.95 Feed barley, bu., $1.90 Barley, bu., $1.85 Oats, bu., $1.33 Oats, bu., $1.46 Oats, bu., $1.39 Oats, bu., $1.33 Upland cotton, lb., $0.52 Base quality upland cotton, lb., $0.52 Base quality upland cotton, lb., $0.52 Base quality upland cotton, lb., $0.52 Extra long staple cotton, lb., $0.7977 Extra long staple cotton, lb., $0.7977 Extra long staple cotton, lb., $0.7977 Extra long staple cotton, lb., $0.7977 Rice, cwt., $6.50 Long grain rice, cwt., $6.50 Long grain rice, cwt., $6.50 Long grain rice, cwt., $6.50 Medium & short grain rice, cwt., $6.50 Medium grain rice, cwt., $6.50 Medium grain rice, cwt., $6.50 Soybeans, bu., $5.00 Soybeans, bu., $5.00 Soybeans, bu., $5.00 Soybeans, bu., $5.00 Other oilseeds, lb., $0.0930 Other oilseeds, lb., $0.1070 Other oilseeds, cwt., $10.09 Other oilseeds, cwt., $9.30 Dry peas, cwt., $6.22 Dry peas, cwt., $5.40 Dry peas, cwt., $5.40 Dry peas, cwt., $6.22 Lentils, cwt., $11.72 Lentils, cwt., $11.28 Lentils, cwt., $11.28 Lentils, cwt., $11.72 Small chickpeas, cwt., $7.43 Small chickpeas, cwt., $8.54 Small chickpeas, cwt., $7.43 Small chickpeas, cwt., $7.43 Large chickpeas, cwt., $11.28 Graded wool, lb., $1.00 Graded wool, lb., $1.00 Graded wool, lb., $1.10 Graded wool, lb., $1.20 Nongraded wool, lb., $0.40 Nongraded wool, lb., $0.40 Nongraded wool, lb., $0.40 Nongraded wool, lb., $0.40 Mohair, lb., $4.20 CRS-58 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Mohair, lb., $4.20 Mohair, lb., $4.20 Mohair, lb., $4.20 Honey, lb., $0.60 [Sec. 1202(a)] Honey, lb., $0.60 Honey, lb., $0.60 Honey, lb., $0.72 [Sec. 1202(a)] Peanuts, ton, $355 [Sec. 1307(b)] (Different loan rates applied to 2002- Peanuts, ton, $355.00 [Sec. 1202(a)] Peanuts, ton, $355 [Sec. 1307(b)] 2003 crop years.) [7 U.S.C. 7932(b)] 2009 crop year (same as 2008, except Peanuts, ton, $355 [7 U.S.C. 7957(b)] one new crop (large chickpeas) and decreases for dry peas and lentils. Wheat, bu., $2.75 Corn, bu., $1.95 Grain sorghum, bu., $1.95 Barley, bu., $1.85 Oats, bu., $1.33 Base quality upland cotton, lb., $0.52 Extra long staple cotton, lb., $0.7977 Long grain rice, cwt., $6.50 Medium grain rice, cwt., $6.50 Soybeans, bu., $5.00 Other oilseeds, cwt., $9.30 Dry peas, cwt., $5.40 Lentils, cwt., $11.28 Small chickpeas, cwt., $7.43 Large chickpeas, cwt., $11.28 Graded wool, lb., $1.00 Nongraded wool, lb., $0.40 Mohair, lb., $4.20 Honey, lb., $0.60 [Sec. 1202(b)] Peanuts, ton, $355 [Sec. 1307(b)] 2010-2012 crop years (increases for wheat, barley, oats, minor oilseeds, graded wool, and honey) Wheat, bu., $2.94 Corn, bu., $1.95 Grain sorghum, bu., $1.95 Barley, bu., $1.95 Oats, bu., $1.39 Base quality upland cotton, lb., $0.52 Extra long staple cotton, lb., $0.7977 Long grain rice, cwt., $6.50 Medium grain rice, cwt., $6.50 Soybeans, bu., $5.00 CRS-59 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Other oilseeds, cwt., $10.09 Dry peas, cwt., $5.40 Lentils, cwt., $11.28 Small chickpeas, cwt., $7.43 Large chickpeas, cwt., $11.28 Graded wool, lb., $1.15 Nongraded wool, lb., $0.40 Mohair, lb., $4.20 Honey, lb., $0.69 [Sec. 1202(c)] Peanuts, ton, $355 [Sec. 1307(b)] Adjustment of loans: establish a single Same as prior law. [Sec. 1202(b)] Same as prior law. [Sec. 1202(b)] Same as prior law. [Sec. 1202(d)] loan rate in each county for each kind of "other oilseeds" [7 U.S.C. 7932(c)] No comparable provision. Establish a single county loan rate for Same as House provision [Sec. 1202(d)] No comparable provision. corn and grain sorghum in each county; establish a single national average loan rate for corn and grain sorghum. [Sec. 1202(c)(1)] No comparable provision. Administer the applicable loan, Same as House provision, except does No comparable provision. marketing loan, counter-cyclical and not specifically apply to counter-cyclical related programs using a single loan rate program. [Sec. 1210(e)] for corn and grain sorghum that is identical in each individual county. Any adjustment for location based on transportation shall be the same for corn and grain sorghum in each individual county. Allows adjustments for grade, type, and quality. [Sec. 1202(c)(2)] Authorizes adjustments in the loan rates Amends prior law by excepting cotton Same as House provision, except the Adopts the Senate provision, with for any commodity based on differences and rice from the general provision for exception applies only to cotton, removes modifications to composition of private in grade, type, quality, location, and other adjustment, with separate adjustment warehouse location differentials, and sector consultative committee. [Sec. factors. Allows county loan rates as low rules for cotton and rice. Encourages requires private sector consultation for 1210] Same basic provision for peanuts. as 95% of the U.S. average, if it does not private sector consultation for cotton. cotton. [Sec. 1210(a)-(d), (f)] Same as [Sec. 1308] increase outlays; prohibits adjustment of For rice, prohibits adjustments except for prior law for peanuts. [Sec. 1308] U.S. average loan rate. [7 U.S.C. 7282] grade and quality. [Sec. 1505] CRS-60 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Establish quality grades for dry peas as No comparable provision. Establishes grading basis for pulse crops No comparable provision; however the U.S. feed peas; for lentils as U.S. number based on a grade not less than grade statement of managers calls for USDA 3 lentils; and for small chickpeas as U.S. number 2 or other factors, including fair regulations that reflect number 2 quality. number 3 small chickpeas that drop and average crop quality (adjusted to below a 20/64 screen. [7 U.S.C. 7932(d)] reflect normal discounts for less than number 2 quality). [Sec. 1202(c)] Term of loans: 9 months after the day Same as prior law. [Sec. 1203] Same as prior law. [Sec. 1203] Same Adopts the Senate provision. [Sec. 1203] the loan is made; no extensions. [7 provision for peanuts. [Sec. 1307(c)] Same provision for peanuts. [Sec. U.S.C. 7933] Same term for peanuts. [7 1307(c)] U.S.C. 7957(c)] Loan repayment: loans may be repaid at Same as prior law, except delineates Same as prior law, except delineates long Adopts Senate provision, except adds an the lesser of (1) the loan rate plus long, medium, and short grain rice. [Sec. and medium grain rice. [Sec. 1204(a)] option that the repayment rate is based on interest, or (2) a rate determined by 1204(a)] Same provision for peanuts. [Sec. a 30-day average. [Sec. 1204(a)] Adopts USDA that will minimize forfeitures, 1307(d)] Senate provision for peanuts. [Sec. accumulation of stocks, storage costs, 1307(d)(1)] market impediments, and discrepancies in benefits across States and counties. Excludes upland cotton, rice, ELS cotton, confectionery and each other kind of sunflower seed (other than oil sunflower seed). [7 U.S.C. 7934(a)] Same provision for peanuts. [7 U.S.C. 7957(d)] For upland cotton and rice, repayment Same as prior law, except delineates Same as prior law, except delineates long Adopts Senate provision. [Sec. 1204(b)] may be at the lesser of the loan rate plus long, medium, and short grain rice. [Sec. and medium grain rice. [Sec. 1204(b)] interest, or the prevailing world price for 1204(b)] the commodity adjusted to U.S. quality and location. [7 U.S.C. 7934(b)] For ELS cotton, repayment must be at the Same as prior law. [Sec. 1204(c)] Same as prior law. [Sec. 1204(c)] Same as prior law. [Sec. 1204(c)] loan rate plus interest. [7 U.S.C. 7934(c)] Prevailing world market prices for cotton Same as prior law, except specifies that Same as prior law, except delineates long Adopts the Senate provision. [Sec. and rice are determined and announced the Far East price be used to determine and medium grain rice. [Sec. 1204(d)] 1204(d)] under USDA regulations, adjusted to the prevailing world market price. U.S. quality and location. [7 U.S.C. [Sec.1204(d)] 7934(d)] CRS-61 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Prevailing world market price for upland Provides for adjustment to prevailing No comparable provision. Adopts the House provision, without cotton adjusted if (a) it is less than 115% world market prices for rice and upland reference to Comparable United States of the loan rate; and (b) the Friday cotton. For rice, for U.S. quality and Quality. [Sec. 1204(e)(1)-(2)(A)] through Thursday average price for the condition. For upland cotton, for U.S. lowest priced U.S. growth for Middling quality and location (premiums for (M) 1 3/32-inch cotton delivered C.I.F. Comparable United States Quality and Northern Europe is greater than the reduction to United States Premium Friday through Thursday average price of Factor higher than Middling 1 3/32-inch; five lowest-priced growths of upland and costs to market the commodity. [Sec. cotton, as quoted for Middling (M) 1 1204(e)] 3/32-inch cotton delivered C.I.F. Northern Europe. [7 U.S.C. 7934(e)(1)] Prevailing world market price for upland Adjusts prevailing world market price for Same as House provision, except the Adopts the Senate provision. cotton further adjusted based on data upland cotton further to minimize loan further adjustment is to U.S. quality and [Sec.1204(e)(2)(B)] including U.S. share of world exports, forfeitures and accumulation of stocks, location. With respect to transition, uses level of export sales and shipment, and improve marketing, and ensure the term "insufficient" current-crop price other data USDA determines relevant. [7 competitiveness and transition between quotations, rather than "less than three" U.S.C. 7934(e)(2)] current-crop and future-crop price current-crop price quotations in the quotations. [Sec. 1204(f)] House bill. [Sec. 1204(e)] For confectionary and other kinds of Same as prior law. [Sec. 1204(g)] Same as prior law. [Sec.1204(f)] Same as prior law. [Sec. 1204(f)] sunflower seeds (other than oil sunflower seed), loans may be repaid at the lesser of (1) the loan rate plus interest, or (2) the repayment rate for oil sunflower seed. [7 U.S.C. 7934(f)] For dry peas, lentils, and small chickpeas, Same as prior law. [Sec. 1204(h)] For pulse crops, loans shall be repaid at No comparable provision. loans shall be repaid at the quality grades the quality grades for the applicable for the applicable commodity specified in commodity as specified in Sec. 1202(c). 7 U.S.C. 7932(d). [7 U.S.C. 7934(g)] [Sec. 1204(g)] Provide payment of storage for upland Ends the practice of paying for upland Requires payment of cotton storage costs Adopts Senate provision to pay cotton cotton, as allowed under general cotton storage, handling and other costs in same manner and at same rates as was storage costs, except a 10% reduction authorities of the CCC. [7 C.F.R. starting with the 2011 crop. [Sec. 1510] provided for the 2006 crop, effective for applies to 2008-2011 crop years, and a 1427.19(h)] 2008-12 crop years. [Sec. 1204(h)] 20% reduction in the 2012 crop year. [Sec. 1204(g)] No comparable provision. No comparable provision. No comparable provision. Provides USDA authority to temporarily, an on a short-term basis only, adjust the CRS-62 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) repayment rates in the event of a severe disruption to marketing, transportation or related infrastructure. [Sec. 1204(h)] Same for peanuts. [Sec. 1307(d)(2)] Loan deficiency payments (LDP): Same as prior law, except for 2008-2012 Same as House provision, except that for Adopts House provision. [Sec. 1205] available to producers who agree to crop years. [Sec. 1205] the 2008 crop year the payment rate is Same provision for peanuts. [Sec. forego marketing loans. LDP computed established as of the date that producers 1307(e)] by multiplying the payment rate (the lose beneficial interest. [Sec. 1205] amount that the loan rate exceeds the rate Same provision for peanuts. [Sec. at which a marketing loan may be repaid) 1307(e)] for the commodity times the quantity of the commodity produced. Loan deficiency payments available for unshorn pelts or hay and silage, even though they are not eligible for marketing loans. ELS cotton is not eligible. Payment rate determined using the rate in effect as of the date that producers request payment (producers do not need to lose beneficial interest). [7 U.S.C. 7935 ] Same provision for peanuts. [7 U.S.C. 7957(e)] Payments in lieu of LDP for grazed Same as prior law. [Sec. 1206] Same as prior law. [Sec. 1206] Same as prior law. [Sec. 1206] acreage of wheat, barley, oats, or triticale. [7 U.S.C. 7936] Special Marketing Loan Provisions for Same as prior law, except uses Far East Same as House provision, except Adopts the Senate provision. [Sec. Upland Cotton: imposes a special import price. Special import quota defined. specifies the price of American cotton 1207(a)] quota on upland cotton when U.S. prices Limits imports under quota to 10 weeks "delivered to a definable and significant exceed Northern European prices by of consumption by domestic mills. [Sec. international market." [Sec. 1207(a)] more than 1.25¢ for 4 weeks. [7 U.S.C. 1207(a)] 7937(b)] Limited global import quota is imposed Same as prior law. [Sec. 1207(b)] Same as prior law. [Sec. 1207(b)] Same as prior law. [Sec. 1307(b)] on upland cotton when U.S. prices average 130% of the previous 3-year average of U.S. prices [7 U.S.C. 7937(c)] CRS-63 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. Provides Economic Adjustment Provides Economic Adjustment Adopts the Senate provision, with Assistance to Users of Upland Cotton via Assistance to Users of Upland Cotton via modification. Effective August 1, 2008, marketing certificates or cash payments assistance of 4¢/lb. to domestic users of through July 31, 2012 at 4¢/lb.; payment of 4¢/lb. to domestic upland cotton users upland cotton for uses of all cotton rate drops to 3¢ on August 1, 2012. [Sec. for all cotton uses regardless of origin for regardless of origin for the same 1207(c)] acquisition, construction, installation, purposes as the House provision. modernization, development, conversion, Effective August 1, 2008, through June or expansion of land, plant, buildings, 30, 2013; payment rate drops to 0¢ on equipment, facilities, or machinery. July 1, 2013, which terminates future Effective through July 31, 2013. [Sec. funding. [Sec. 1207(c)] 1207(c)] Special competitiveness program for ELS Same as prior law. [Sec. 1208] Same as prior law, except it does not Adopts the Senate provision. [Sec. 1208] cotton provides marketing certificates or specify form of payment (cash or cash payments available to domestic certificates). [Sec. 1208] users and exporters whenever the world market price for the lowest priced ELS cotton is below the prevailing U.S. price for a competing growth of ELS cotton for a 4-week period; and the lowest priced competing growth of ELS cotton is less than 134% of the loan rate for ELS cotton. Effective May 13, 2002, through July 31, 2008. [7 U.S.C. 7938] Recourse loans for high moisture feed Same as prior law. [Sec. 1209] Same as prior law. [Sec. 1209] Same as prior law. [Sec. 1209] grains and seed cotton: for farms that normally harvest corn or sorghum in a high moisture condition, recourse loans are available at rates set by the USDA. Recourse loans for seed cotton. Repayment at loan rate plus interest. [7 U.S.C. 7939] No comparable provision. Requires a deadline for peanut loan No comparable provision. No comparable provision. repayment no later than June 30 of the year subsequent to the year in which the peanuts were harvested. Loan not redeemed by the deadline are deemed forfeited. [Sec. 1210] CRS-64 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. Authorizes quality incentive payments Similar to House provision, except it has Adopts the Senate provision, with for healthy oilseeds with special traits to fewer requirements for proposals, does modifications, and adds compliance and enhance human health. Provides for not specify multi-year contracts, and penalty provisions. Authorization of discretionary appropriations of such sums provides for protection of proprietary such sums as necessary for FY2009- as necessary. Crop years 2009-2013. information. Does not specify crop 2012. [Sec. 1605] USDA to solicit proposals; successful years, but authorizes discretionary applicants enter contracts with producers appropriations of $400 million for the and are reimbursed after premiums paid period FY2008-12. [Sec. 1705] to producers. [Sec. 1211] Payment Limits Establishes payment limits on direct Continues limits for direct payments and Continues limits for direct payments and Continues prior law limits for direct payments, counter-cyclical payments, counter-cyclical payments, as amended counter-cyclical payments, as amended payments and counter-cyclical payments. and certain marketing loan benefits under below. Deletes payment limit for below. Deletes payment limit for Deletes payment limit for marketing loan the Food Security Act of 1985, as marketing loan program. Establishes marketing loan program. Establishes program. Establishes direct attribution to amended, to a "person" as broadly direct attribution to natural person; direct attribution to natural person; natural person; eliminates 3 entity rule. defined below [7 U.S.C. 1308-1308-3(a)] eliminates 3 entity rule. [Sec. 1503] eliminates 3 entity rule. [Sec. 1703(a)] [Sec. 1603(a)] Person: defined as an individual, partner Person: "a natural person, and does not Person: same as House definition. [Sec. Person: adopts the House definition. in a general partnership or joint venture, include a legal entity." [Sec. 1503(b)(1)] 1703(b)(2)] [Sec. 1603(b)(1)] trust, corporation, joint stock company, limited partnership, association, charitable organization, State agency, or political subdivision (except cooperative producer associations). [7 U.S.C. 1308(e)] No comparable definition. Legal entity: an entity created under Legal entity: same as House definition. Legal entity: adopts the House federal or state law that (1) owns land or [Sec. 1703(b)(2)] definition. [Sec. 1603(b)(1)] an agricultural commodity, or (2) produces an agricultural commodity. No comparable definition. No comparable definition. Family member: "an individual to Family member: "a person to whom a whom a member in the farming operation member in the farming operation is is related as lineal ancestor, lineal related as lineal ancestor, lineal descendant, sibling, or spouse." [Sec. descendant, sibling, spouse, or otherwise 1703(b)(1)] by marriage." [Sec. 1603(b)(1)] Maximum amount of payments per Maximum amount of payments per Maximum amount of payments per Maximum amount of payments per year to a person for the sum of all year to a person or legal entity for the year to a person or legal entity for the year to a person or legal entity for the CRS-65 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) covered commodities (except peanuts, sum of all covered commodities, except sum of all covered commodities, except sum of all covered commodities, except wool, mohair, and honey): peanuts: peanuts: peanuts: -- Direct payments: $40,000 -- Direct payments: $60,000 -- Direct payments and fixed ACR -- Direct payments: $40,000 payment: $40,000 -- Direct payments under ACRE: $40,000 minus the reduction required of an ACRE participant in Sec. 1105(a)(1). -- Counter-cyclical payments: $65,000 -- Counter-cyclical payments: $65,000 -- Counter-cyclical payments and -- Counter-cyclical payments: $65,000 [Sec. 1503(a)(1)-(2)] revenue-based ACR payment: $60,000 -- ACRE payments: $65,000 plus the reduction in the direct payment limit. -- Marketing loan gains/LDP: $75,000 -- Marketing loan gains/LDP: no limit. -- Marketing loan gains/LDP: no limit -- Marketing loan gains/LDP: no limit [7 U.S.C. 1308(b)(1), (c)(1), (d)(1)] [Sec. 1503(b)(2)] [Sec. 1703(b)(2)] [Sec. 1603(b)(2)] Maximum payment amount per year to Maximum payment amount per year to Maximum payment amount per year to Maximum payment amount per year to a person for the sum of peanuts, wool, a person or legal entity for peanuts: a person or legal entity for peanuts: a person or legal entity for peanuts: mohair, and honey: -- Direct payments: $40,000 -- Direct payments: $60,000 -- Direct payments and fixed ACR -- Direct payments: $40,000 payment: $40,000 -- Direct payments under ACRE: $40,000 minus the reduction required of an ACRE participant in Sec. 1105(a)(1). -- Counter-cyclical payments: $65,000 -- Counter-cyclical payments: $65,000 -- Counter-cyclical payments, and -- Counter-cyclical payments: $65,000 [Sec. 1503(a)(1)-(2) revenue-based ACR payment: $60,000 -- ACRE payments: $65,000 plus the reduction in the direct payment limit. -- Marketing loan gains/LDP: $75,000 -- Marketing loan gains/LDP: no limit -- Marketing loan gains/LDP: no limit -- Marketing loan gains/LDP: no limit [7 U.S.C. 1308(b)(2), (c)(2), (d)(2)] [Sec. 1503(b)(2)] [Sec. 1703(b)(2)] [Sec. 1603(b)(2)] No comparable provision. Direct attribution: the total amount of Direct attribution: same as House Direct attribution: Adopts the Senate direct and counter-cyclical payments are provision, except payments to a legal provision. [Sec. 1603(b)(3)] attributed to a person by taking into entity are reduced proportionately based account direct and indirect ownership in on the ownership shares of a person or a legal entity. Payments made directly to entity that exceeds the limit. a person will be combined with the [Sec. 1703(b)(3)] person's pro rata share of payments to a legal entity. Payments to a legal entity shall not exceed the limits above, and shall be attributed to persons with an CRS-66 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) ownership interest. Attribution of payments to legal entities shall be traced through four levels of ownership (ownership of an entity by a person or another entity). If after four levels of ownership, the payment has not been allocated to a natural person, the payment to the first-level entity shall be reduced on a pro-rata basis. For joint ventures and general partnerships, payments shall not exceed the multiple of the limits for the number of persons and legal entities comprising the joint venture or general partnership. [Sec. 1503(b)(2)] Payments to minor children generally are Continue prior law rules for minor Same as House provision. Adopts House provision. [Sec. attributed to parents; marketing coops are children, marketing cooperatives, trusts [Sec. 1703(b)(3)] 1603(b)(3)] not subject to the limits; trusts and estates and estates, and cash rent tenants. [Sec. qualify under certain rules; cash rent 1503(b)(2)] tenants that make a significant contribution of management but not of labor and equipment are ineligible; spouses are treated together except under certain conditions. [7 U.S.C. 1308(e)] States and political subdivisions are Makes federal agencies, states and Same as House provision, except has no Same as House provision, except replaces allowed to receive payments under the political subdivisions ineligible for new exception for state and local 7 U.S.C. 1308(f) with new paragraph (g) definition of person. Payment limits do payments, but tenants on such governments to receive payments to that allows states and political not apply to land owned by a public government-owned land may receive maintain a public school. Such an subdivisions to receive payments to entity to maintain a public school. payments. An exception allows states and exemption remains in prior law provision maintain a public school. A separate [7 U.S.C. 1308(f)] political subdivisions to receive payments (7 U.S.C. 1308(f)), which is redesignated payment limit of $500,000 on total direct, to maintain a public school, but payment as subparagraph (g). [Sec. 1703(b)(3)] counter cyclical, and ACRE payments limits apply [Sec. 1503(b)(2)]. However, applies to each state, except for states existing law (7 U.S.C. 1308(f)) remains with less than 1.5 million population. in effect, which exempts states and [Sec. 1603(b)(3)] political subdivisions from payment limits to maintain a public school. 3-entity rule: no person may receive Repeals the 3-entity rule. Requires Same as House provision. [Sec. 1703(c)] Adopts House provision. [Sec. 1603(c)] payments from more than three entities in notification to USDA, including names which the person holds substantial and social security number or tax CRS-67 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) beneficial interest. [7 U.S.C. 1308-1(a)] identification number. [Sec. 1503(c)] Requires a person or entity to be actively Continues prior law provisions and adds Same as House provision. [Sec. 1703(d)] Adopts House provision. [Sec. 1603(d) engaged in farming based on an exception that if one spouse is contributions of land, labor, equipment, determined to be actively engaged, the and management, and requires profits be other spouse shall be determined to meet commensurate and at risk. [7 U.S.C. requirements of personal labor or active 1308-1(b)] personal management. [Sec. 1503(d)] Disqualifies a person from payments in Disqualifies a person or entity for a 2-5 Same as House provision, except adds Adopts Senate provision. [Sec. 1603(e)] the crop year if the person adopted a year period for evasion of payment limit joint and several liability for members of scheme or device to evade payment rules. Benefits denied on a pro-rata basis an entity regarding amounts payable to limits. [7 U.S.C. 1308-2] according to ownership. USDA, and authority for USDA to [Sec. 1503(b)(2)] release a person from liability if they cooperate. [Sec. 1703(e)] No comparable provision. Prior law shall apply to payments made Same as House provision. [Sec. 1703(g)] Prior law shall apply to payments made for the 2007 crop year. [Sec. 1503(e)] for the 2007 and 2008 crop years. [Sec. 1603(h)] Adjusted Gross Income Limitation No firm cap (a cap without exceptions). Sets a firm AGI cap of $1 million (no No firm cap. Divides AGI into two parts: farm AGI exceptions) to be eligible to receive and non-farm AGI; both are averages direct and counter-cyclical payments, over a 3 year period. marketing loan gains or LDPs, and -- Sets a firm cap of $500,000 non- conservation benefits. Applies through farm AGI to receive any the 2012 crop year. [Sec. 1504(b)(1)] commodity program benefits, MILC, noninsured crop assistance, or disaster payments. -- Sets a firm cap of $750,000 farm AGI to receive direct payments (but counter-cyclical, ACRE and marketing loan benefits may continue if farm AGI exceeds $750,000). [Sec. 1604(a)] Sets a soft cap of $2.5 million Adjusted Sets a soft AGI cap of $500,000, unless Sets a gradually-declining soft AGI cap No comparable provision. Gross Income Limitation (AGI) over a 3- 66.66% of the 3-year average AGI is for direct payments, counter-cyclical year average for individuals or entities to derived from farming, ranching, or payments, and marketing loan gains or be eligible to receive program payments. forestry operations. Applies through the LDPs, unless 66.66% of the 3-year CRS-68 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Limit may be exceeded if at least 75% of 2012 crop year. [Sec. 1504(b)(1)] average AGI is derived from farming, the AGI is derived from farming, ranching, or forestry operations: ranching, or forestry operations. Applies -- $2.5 million in crop year 2008, to direct payments, counter-cyclical -- $1 million in 2009, and payments, marketing loan benefits, and -- $750,000 in 2010-2012 conservation program payments for the [Sec. 1704(c)] 2003-07 crop years. [7 U.S.C. 1308-3a] AGI cap for conservation programs same AGI cap for conservation programs same For conservation programs, continues For conservation programs, sets a soft as for commodity programs. as for commodity programs. prior law level of $2.5 million AGI, with cap of $1 million non-farm AGI, unless exception for 75% of AGI derived from more than 66.66% of AGI is farm AGI. farming, ranching or forestry. [Sec. Provides USDA discretion to waive the 1704(c)] limit for "environmentally sensitive land of special significance." [Sec. 1604(a)] USDA determines types of income as Defines certain types of income as Same as House provision, except does Adopts Senate provision, with additional derived from farming, ranching or farming, ranching or forestry. Includes not limit sale of equipment to non-dealers and expansion for the inclusion of forestry income. [7 U.S.C. 1308- production of crops, livestock or raw and does not reference depreciable livestock, insurance indemnities. 3a(b)(1)] forestry products; sale of land or rights; equipment; includes income from water Specifies that sale of inputs to farmers sale of equipment but not as a dealer; or hunting rights; includes packing and can be included if more than 66.66% of rental of land; supplying inputs and shedding in processing and storing; and income is from farming. Generally, not services to farmers; processing, storing includes government payments from to exclude anything reported on IRS and transporting agricultural products. commodity and conservation programs. Schedule F. [Sec. 1604(a)] [Sec. 1503(b)(3)] [Sec. 1704(c)] No comparable provision. No comparable provision. Allows the allocation of AGI among the Adopts the Senate provision. [Sec. individuals filing a joint tax return, under 1604(a)] certain conditions. [Sec. 1704(b)] Administrative Provisions Authorizes use of funds, facilities, and Same as prior law. [Sec. 1501] Same as prior law. [Sec. 1701(a)-(d)] Same as prior law. [Sec. 1601(a)-(d)] authorities of the Commodity Credit Corporation (CCC) to carry out Title I. Determinations by USDA shall be final. Allows promulgation of regulations, and adjusting expenditures if they will exceed allowable support levels under the Uruguay Round Agreements. [7 U.S.C. 7991(a)-(c),(e)] CRS-69 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Advanced direct and counter-cyclical No comparable provision. Same as prior law, applied to the 2008 Adopts Senate provision. [Sec. 1601(e)] payments are taxable in the year received farm bill. [Sec. 1701(e)] (rather than when producer has option to receive payment). [7 U.S.C. 7991(d)] Suspends the permanent price support Same as prior law, except applies to Same as House provision, except does Adopts House provision. [Sec. 1602] authority of the Agricultural Adjustment 2008-2012 crop years, and milk through not mention peanuts in paragraph (a). Act of 1938 and the Agricultural December 31, 2012. [Sec. 1502] [Sec. 1702] Adjustment Act of 1949 for the 2002-07 crops (covered commodities, peanuts, and sugar), and for milk through December 31, 2007. [7 U.S.C. 7992] Exempts producers from liability for Same as prior law. [Sec. 1506] Same as prior law. [Sec. 1709] Same as prior law. [Sec. 1606] certain deficiencies in collateral to secure any nonrecourse loan. [7 U.S.C. 7284] Authorizes the use of commodity Same as prior law. [Sec. 1507] Same as prior law. [Sec. 1710] Same as prior law, except terminates certificates, including to repay marketing authority to use commodity certificates to loans. [7 U.S.C. 7286] repay loans after the 2009 crop year. [Sec. 1607] Requires that assignment of payments Same as prior law. [Sec. 1508] Same as prior law. [Sec. 1711] Same as prior law. [Sec. 1608] must be done in accordance with USDA regulations. [7 U.S.C. 7995] Requires tracking of program benefits Same as prior law. [Sec. 1509] No comparable provision. Same as prior law. [Sec. 1609] under commodity and conservation titles that are made directly or indirectly to individuals and entities. [7 U.S.C. 7997] Prohibits publication of cotton price Strikes the prior law prohibition on the Same as House provision. [Sec. 1714] Adopts House and Senate provision. forecasts in any governmental report, or publication of cotton price forecasts. [Sec. 1610] bulletin. [12 U.S.C. 1141j] [Sec. 1511] Allows payments to estates of deceased Requires reports to Congress of deceased Prohibits any agricultural payment to any Generally adopts the House approach. farmers [7 U.S.C. 1308(e)(2)(B)(ii)], but persons that received payments for more deceased individual or estate after two Requires regulations that describe the without reference to a time period. than two crop years following death. program years after the date of death. circumstances allowing payments to a USDA regulations establish a 2-year Establishes deadlines for notification of Require annual reports to Congress on deceased person to settle and estate, and period for estates to qualify. [7 C.F.R. death, and denies payments and recoup the number and amount of payments to to stop payments for those ineligible. 1400.206] losses for failure to comply. Reconcile deceased individuals and the length of Reconcile tax identification numbers with CRS-70 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) tax identification numbers with Internal time the estate has been open. [Sec. IRS data twice a year to determine living Revenue Service (IRS) data twice a year 11073] status. [Sec. 1611] to determine living status. [Sec. 1512] Provide incentive payments to producers No comparable provision. Provides incentive payments to producers Adopts Senate provision, except of hard white wheat on up to 2 million of hard white wheat of at least $20¢/bu. authorizes discretionary appropriations acres. Total mandatory funding of $20 and at least $2/acre on up to 2.9 million rather mandatory funding. [Sec. 1612] million for the 2003-2005 crop years. acres. Mandatory funding of $35 million [7 U.S.C. 7999] for the 2008-12 crop years. [Sec. 1706] No comparable provision. No comparable provision. Authorizes compensation up to 50% of Adopts Senate provision. [Sec. 1613] the cost of fungicides to control wheat scab in durum wheat. Authorize $10 million per year for FY2008-12, subject to appropriation. [Sec. 1707] Provides farm storage facility loans under No comparable provision. Establishes a storage facility loan Adopts Senate provision, with USDA regulations via the general program for producers of grains, modification to security and lien authorities of the CCC. For commodities oilseeds, pulse crops, hay, renewable requirements. [Sec. 1614] other than sugar, maximum term of loan biomass, and other storable commodities is 7 years and $100,000 per borrower. [7 (other than sugar) to construct or upgrade C.F.R. 1436] storage and handling facilities. Provides for 12-year terms and $500,000 maximum loans, as well as security and eligibility requirements. [Sec. 1708] Authorizes cotton classification services Revises the authorization for cotton Revises the authorization for cotton Adopts the Senate provision, with be available to producers of cotton, and classification services through FY2012 to classification services for an indefinite modification. [Sec. 14201] for the collection of fees and include leasing of property exceeding 5 time period, including consultation with appropriations to pay for such services. years. [Sec. 11302] the cotton industry, investment of funds, [7 U.S.C. 473a] and long term lease of property. Provides authorization for appropriations. [Sec. 1712] Defines cotton-producing state, for Revises definition of cotton-producing Same as House provision. [Sec. 1713] Adopts the House provision. [Sec. purposes of a cotton research and state to explicitly include Kansas, 14202] promotion, using a historical measure of Virginia, and Florida beginning with the production. [7 U.S.C. 2116(f)] 2008 crop. [Sec. 11301] Instructs USDA to appoint committees of No comparable provision. For combined or consolidated area Adopts the Senate provision, with farmers in a fair and representative committees, requires 3-11 members that modification for USDA to develop CRS-71 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) manner. [16 U.S.C. 590h(b)(5)(B)(ii)] are representative of the area and elected, procedures to main representation of and ensures representation of socially socially disadvantaged farmers. [Sec. disadvantaged farmers. [Sec. 1715] 1615] Authorizes USDA to collect commodity No comparable provision. Prohibits USDA from charging fees for Adopts Senate provision. [Sec. 1616] assessments from proceeds of marketing the collection of commodity assessments assistance loans, if assessment is required in its agreement with the State. [Sec. under state law. [7 U.S.C. 7416a] 1716] No comparable provision. No comparable provision. Requires that, if USDA approves a Adopts the Senate provision, with document containing signatures of modification. [Sec. 1617] applicants, it shall not subsequently determine the document to be inadequate or invalid. [Sec. 1717] No comparable provision. No comparable provision. Requires USDA to modernize the Farm Requires a report by an outside party that Service Agency information technology describes USDA's technology problems systems to ensure timely and efficient and a plan to improve service. [Sec. program delivery. [Sec. 1718] 1618] No comparable provision. No comparable provision. Requires USDA to consolidate geospatial Adopts the Senate provision, with database systems into a single system that modification to limit disclosure of is readily available to all agencies within information. [Sec. 1619] two years of enactment. [Sec. 1719] No comparable provision. No comparable provision. Allows the CCC to lease space for USDA Requires a report on the cost of leasing agencies if the space is jointly occupied procedures of the General Services by the agencies. [Sec. 1720] Administration compared to USDA. [Sec. 1620] No comparable provision. No comparable provision. Provides payments to "geographically Adopts the Senate provision, with disadvantaged farmers" in insular areas, modification. [Sec. 1621] Alaska, and Hawaii for transporting a commodity or input more than 30 miles. Reimbursement based on federal salary differentials defined elsewhere, with maximum of 25% transportation cost. Authorizes $15 million of discretionary appropriations annually. [Sec. 6021] CRS-72 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. No comparable provision. Provides $50 million of mandatory funds from the CCC to implement Title I. [Sec. 1622] Establishes a "Commission on the No comparable provision. Repeals the authorization for the payment Adopts the Senate amendment to repeal Application of Payment Limitations for limits commission. [Sec. 1721(a)] the commission. [Sec. 1623(a)] Agriculture." [7 U.S.C. 7993] Authorizes market loss assistance and No comparable provision. Repeals market loss assistance and other Adopts the Senate amendment to repeal other emergency assistance to persons emergency assistance to persons that the continued assistance. [Sec. 1623(b)] that were eligible to receive assistance failed to receive assistance under earlier but did not receive assistance before a authorities. [Sec. 1721(b)] certain date. [7 U.S.C. 8000] DAIRY (TITLE I) Dairy Price Support Program Mandatory support for farm price of milk Mandates the direct support of cheese, Similar to the House bill. Adopts House provision. [Sec. 1501(b)] at $9.90 per hundredweight (cwt.). nonfat dry milk, and butter at specified [Secs. 1601(a)-(b)] Program authority expired on December prices for five years (through December 31, 2007, but was extended until March 31, 2012). This is a change from 15, 2008 by P.L. 110-161. [7 U.S.C. supporting the farm price of milk. [Secs. 7981a-c] 1401(a)-(b)] Farm support price of $9.90 indirectly Specifies minimum purchase prices of: Similar to the House bill. Adopts House provision. [Sec. 1501(c)] maintained by USDA offer to purchase block cheese, $1.13/lb.; barrel cheese, [Secs. 1601(b)-(c)] butter, cheese, and nonfat dry milk from $1.10/lb.; butter, $1.05/lb.; and nonfat processors at prices determined by dry milk, $0.80/lb (same levels currently USDA that allow buyers to pay farmers used to support the farm price at $9.90 at least the support price. [7 U.S.C. per cwt.) Allows USDA sale of acquired 7981a-c] products when market prices rise to 110% of purchase price. [Sec. 1401(b)] No more than twice annually, USDA can Allows reduction of mandated purchase No comparable provision. Adopts House provision. [Sec. 1501(d)] adjust the purchase prices of butter and prices when USDA acquisitions exceed nonfat dry milk (reduce one and raise the specified levels. [Sec. 1401(c)] other) in order to minimize acquisitions. [7 U.S.C. 7981d] CRS-73 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Milk Income Loss Contract Payments The 2002 farm bill mandated a new Extends the MILC program for five Increases, through August 31, 2012, the For the period October 1, 2008 through counter-cyclical payment program, the years, through September 30, 2012, at the payment rate to 45%, and raises the cap August 31, 2012,increases the payment Milk Income Loss Contract (MILC) current target price of $16.94/cwt. on eligible annual production to 4.15 mil. factor to 45%, and the annual eligible program. When the monthly fluid milk Payment rate remains at 34% of any lbs. per farm. Payment rate and payment quantity to 2.985 million price falls below $16.94/cwt., all dairy deficiency between the market price and production cap would return to 34% and pounds. After that, payment factor and farmers are paid an amount equal to 34% the target price, and eligible production 2.4 mil. lbs. for the last month of payment quantity revert to 34% and 2.4 of the difference between $16.94 and the continues to be capped at 2.4 mil. lbs. per program authority in September 2012. million pounds, respectively. The $16.94 lower market price. Payments per farm farm per year. [Sec. 1406] [Sec. 1602] per cwt. payment rate must be adjusted to are limited to 2.4 million lbs. of annual reflect feed cost increases above trigger production. MILC authority expired levels, as specified in the final law. Sept. 30, 2005, but several subsequent [Sec. 1506] extensions continue it through March 15, 2008. [7 U.S.C. 7982] Dairy Forward Pricing Program The FY2000 omnibus appropriations act Authorizes a dairy forward pricing Similar (but not identical) to the House Adopts House provision. [Sec. 1502] authorized a pilot dairy forward pricing program similar to the pilot program of bill. [Sec. 1606] program implemented from mid-2000 2000-2004. Price paid by milk handlers until its required expiration date of under the contracts are deemed to satisfy December 31, 2004. It exempted the minimum price requirements of handlers from having to pay farmers the federal milk marketing orders. Applies federal order price when the forward only to milk purchased for manufactured contract price turns out to be lower. products (Classes II, III, and IV), and [7 U.S.C. 627] excludes milk purchased for fluid consumption (Class I). Allows for new contracts until September 30, 2012, but no contract can extend beyond September 30, 2015. [Sec. 1402] Dairy Export Incentive Program Provides cash bonus payments to U.S. Extends DEIP through December 31, Extends DEIP through December 31, Adopts House provision. [Sec. 1503] dairy exporters, subject to World Trade 2012, with a reference to the Uruguay 2012. [Sec. 1603(a)] Organization obligations to limit export Round Agreements Act. [Sec. 1403] subsidies. No DEIP bonuses have been awarded since FY2004. Legislative authority expires March 15, 2008. Intended to counter foreign (mostly EU) CRS-74 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) dairy subsidies. [15 U.S.C. 713a-14(a)] Dairy Indemnity Program Authorizes payments to dairy farmers Extends the Dairy Indemnity Program Similar to the House bill. [Sec. 1603(b)] Adopts House provision. [Sec. 1505] when a public regulatory agency directs fthrough December 31, 2012. [Sec. 1405] removal of their raw milk from the market because of contamination by pesticides, nuclear radiation or fallout, or toxic substances and other chemical residues. Expires March 15, 2008. [7 U.S.C. 450l] Dairy Promotion and Research Program The Dairy Producer Stabilization Act of Extends promotion and research program Extends program authority through Sep. Adopts House provision with changes to 1983 authorized a generic dairy product authority through Sep. 30, 2012. Amends 30, 2012. Does not address the issue reduce the assessment rate on imported promotion, research, and nutrition the 1983 Act to require producers in all involving the import assessment. products to 7.5¢/cwt. Authorizes USDA education program, funded by a 50 states, the District of Columbia, and [Sec. 1604] to issue regulations on time and method mandatory 15¢/cwt assessment on milk Puerto Rico to pay the 15¢/cwt. [Sec. of importer payments. [Sec. 1507] produced/marketed in the 48 contiguous 1407] states. Assessment extended to imports by Sec. 1505 of 2002 farm bill. Import assessment never collected because the exclusion of some states was considered inconsistent with WTO rules. Expires March 15, 2008. [7 U.S.C. 4501-4514] Federal Milk Marketing Orders Federal milk marketing order rules issued Creates a Federal Milk Marketing Order Creates a Federal Milk Marketing Order Creates a Federal Milk Marketing Order by USDA place requirements on the first Review Commission to review and Review Commission, with same overall Review Commission with 14 members buyers or handlers of milk, including evaluate the current federal and similar functions and purposes as the House bill, appointed by USDA; objectives of the paying at least minimum prices for the state order systems. The 18-member but with some differences in the commission are similar to but modified milk depending on its end use. Perm- Commission is to consider legislative and appointment of members and issues to be from the House version. [Sec. 1509] anent federal authority to regulate the administrative options for: ensuring the studied. [Sec. 1608] handling of milk was first provided in the competitiveness of farmers and Agricultural Adjustment Act of 1933, processors, and simplifying and and subsequently revised by the Agri- streamlining the federal order system. cultural Marketing Agreement Act of Report is due within two years of the first 1937, as amended. [7 U.S.C. 601 et seq.] meeting. [Sec. 1409] CRS-75 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) When USDA amends federal orders, it Revises order amendment procedures by Also revises amendment procedures by Includes elements of both bills with must issue a notice of a hearing at least placing time constraints on USDA at establishing a timetable for certain regard to the time constraint provisions, three days prior to the hearing. various steps of the amendment process. actions, but with some differences. avoidance of duplication, and use of feed [7 U.S.C. 608c(17)] [Sec. 1404] [Sec. 1605] and fuel costs for hearings involving adjustments to make allowances. [Sec. 1504] In late April 2007, USDA announced an Requires USDA, within 90 days of Similar to the House bill, except that the Adopts Senate provision. [Sec. 1508] error in nonfat dry milk prices reported to enactment, to submit a report to Congress report is to be filed with the House and them by manufacturers over the previous on price reporting procedures for nonfat Senate Agriculture Committees. [Sec. 12 months. The error contributed to dry milk, and the effect these procedures 1607) lower farm milk prices than would have had on marketing order pricing otherwise have been the case. since July 1, 2006. [Sec. 1408] Mandatory Dairy Commodity Price Reporting Dairy Market Enhancement Act of 2000 No comparable provisions. Requires manufacturers to report sales Authorizes USDA to establish an requires manufacturers to report to transactions daily. Requires USDA to electronic reporting system (subject to USDA the price, quantity, and moisture publish the data each reporting day and available funds), after which increased content of dairy products sold. [7 U.S.C. compare it with other dairy market frequency in mandatory reporting of 1637b] statistics on a quarterly basis. dairy product sales would be required. [Secs. 1609 and 1610] Provides for quarterly audits of submitted information and comparison with related dairy market statistics. [Sec. 1510] SUGAR (TITLE I) No Net Cost Directive Requires USDA to the maximum extent Retains current no-net-cost requirement. Similar to the House bill. [Secs. 1501 Continues no-cost requirement found in practicable to operate the sugar [Secs. 1301 and 1303(b)] and 1504(b)] prior law. [Secs. 1401, 1403] Requires nonrecourse loan program at no net cost USDA to operate sugar-for-ethanol by avoiding sugar forfeitures to the CCC. program (in Energy title) to ensure this [7 U.S.C. 7272 (g), 7 U.S.C. 1359bb (b), no-cost directive is met. [Sec. 9001] 7 U.S.C. 1359cc (b)(2)] Price Support Levels, Loans and Payments Sets raw cane and refined beet sugar loan Increases raw cane sugar and refined beet Increases raw cane sugar loan rate to Increases raw cane sugar loan rate to rates at 18.0¢ and 22.9¢/lb through sugar loan rates to 18.5¢/lb. and 23.5¢/lb 19.0¢/lb. by FY2013, in 1/4¢ increments 18.75¢/lb. in FY2012 and FY2013, in FY2008. Expands loan eligibility to in- for FY2009 through FY2013. [Sec. 1301] beginning in FY2010. Increases beet 1/4¢ increments beginning in FY2010. process sugars and syrups at 80% of the sugar loan rate, to be set at 128.5% of the Sets refined beet sugar loan rate at CRS-76 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) applicable loan rates. Makes raw cane rate in effect each year (e.g., 22.9¢/lb. in FY2009. Starting in nonrecourse loans available to processors reaching 24.42¢/lb. in FY2013). [Sec. FY2010, sets beet sugar rate equal to under certain conditions. Sets 9-month 1501] 128.5% of the raw cane rate in effect, repayment term for such loans. [7 U.S.C. (e.g., rising to 24.1¢/lb. in FY2012 and 7272 (a, b, d, e, f)] FY2013). Continues other provisions found in prior law. [Sec. 1401] Authorizes CCC to accept bids from Continues in-kind authority. Stipulates Similar to the House bill. [Sec. 1501] Continues in-kind authority and adds sugar processors to purchase USDA- that planted beets or cane diverted from House/Senate provision. [Sec. 1401] owned sugar in conjunction with reduced production can only be used as bioenergy production of new sugar crops. [7 U.S.C. feedstock. [Sec. 1301] 7272 (g)] USDA now pays storage rates of 8¢/cwt. No comparable provision. Requires (only through crop year 2011) Adopts Senate provision. [Sec. 1405] for raw cane and 10¢ per cwt. for refined USDA minimum storage payment rates beet sugar that has been forfeited under of 10¢/cwt. and 15¢/cwt. on forfeited raw the nonrecourse loan program. [15 cane and refined beet sugar. [Sec. 1503] U.S.C. 714b & 714c; 7 CFR Part 1423] Authorizes CCC to provide financing to No comparable provision. Retains authority, but stipulates that loans Continues prior law and adds Senate processors of domestic sugar to construct shall not require any prepayment penalty. provision. [Sec. 1404] or upgrade storage and handling [Sec. 1502] facilities. [Sec. 1402] Marketing Allotments and Allocations To avert loan forfeitures, USDA limits Continues purpose and structure of Similar to the House bill. Continues marketing allotment authority the amount of sugar processors can sell marketing allotments and allocations, but [Sec. 1504(a)-(d)] and adopts House/Senate provisions each year (according to a national changes some key provisions. Changes requiring USDA to set OAQ at not less "overall allotment quantity" (OAQ) formula to require USDA to set OAQ at than 85% of estimated U.S. human divided between cane and beet sectors, not less than 85% of estimated human consumption, and eliminating allotment then allocated to individual processors). food and beverage sugar use. Eliminates suspension trigger. [Sec. 1403(a)-(d)] The OAQ must accommodate WTO and allotment suspension provision. NAFTA import commitments (1.532 [Sec. 1303(a)-(d)] million short tons). If imports are larger, USDA's authority to implement allotments is suspended. [7 U.S.C. 1359aa, 1359bb, 1359cc, and 1359dd] Directs USDA to reassign unused raw Requires that any reassignment of unused Similar to the House bill. [Sec. 1504(e)] Adopts House/Senate change to prior cane and beet sugar marketing allocations cane and beet allocations to imports [in law. [Sec. 1403(e)] CRS-77 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) first to other cane states and beet the fourth step] must be met by imports processors, respectively; second to cane "of raw cane sugar." [Sec. 1303(e)] processors within each state; third to sales of sugar in CCC's inventory; and fourth to imports. [7 U.S.C. 1359ee] Sugar Provision Related to Bioenergy Programs -- see section on Energy Programs (below) Trade-Related Provisions In accord with a 1994 trade commitment, Makes no changes to import quota Makes no changes to import quota Makes no change to current U.S. trade USDA sets an annual global sugar import commitments found in various trade commitments. commitments. quota of not less than 1.256 mil. short agreements and laws. tons. USTR allocates the quota among eligible countries, and also administers preferential sugar import quotas for free trade agreement partner countries. Effective January 1, 2008, Mexico can ship duty free an unlimited amount of sugar to the U.S. market. Requires USTR in 2002-07 to reallocate Repeals requirement for reallocating Similar to the House bill. Adopts House/Senate repeal provision. unused country quota allocations to other sugar import quota shortfalls. [Sec. 1504(i)] [Sec. 1403(i)] quota-holding countries with sugar to [Sec. 1303(i)] sell. [7 U.S.C. 1359kk] USDA has discretion to increase the size Requires USDA to set quotas for raw Similar to the House bill. Adopts House/Senate provision on of global raw cane and refined sugar cane and refined sugar at the minimum [Sec. 1504(j)] setting initial import quotas at minimum import quotas when domestic sugar level necessary to comply with U.S. trade levels and laying out steps to be followed supplies are inadequate to meet U.S. agreement obligations. In cases of sugar to increase imports in the event of a sugar demand at reasonable prices. [Chapter shortages, supplies are to be increased shortage. [Sec. 1403(j)] 17, additional note 5, of the U.S. first by reassigning allotment deficits to Harmonized Tariff Schedule; 19 CFR imports of raw cane sugar, second by Part 2001, Subpart A] increasing the refined sugar quota, and third by increasing raw cane sugar quota. [Sec. 1303(i)] To protect domestic sugar prices, USDA Requires USDA to establish "orderly No comparable provision. Deletes House "shipping patterns" regulated the flow of sugar imports from shipping patterns" for major suppliers of provision. large quota holders (through 2005). sugar to the U.S. market. [Sec. 1303(i)] CRS-78 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The U.S.-Mexican agreement on bilateral No comparable provision. Expresses sense of Senate that U.S. & Deletes Senate provision. market access for sugar and high-fructose Mexican governments should coordinate corn syrup created an industry and their sugar policies to be consistent with government task force to address U.S. international commitments, to avoid problems that might arise after the disruptions of each country's sweetener elimination of tariffs on sweeteners on markets (sugar and high-fructose corn January 1, 2008. [Exchange of Letters syrup). [Sec. 1505] between USTR and Mexico's Secretariat of Economy, July 27, 2006] The U.S. withdrew from the International Requires the Secretary of Agriculture to Similar to the House bill. Adopts House provision. [Sec. 1402] Sugar Organization (ISO) in 1992 work with the Secretary of State to [Sec. 1504] because of opposition to the allocation of restore U.S. membership in the ISO country contributions to ISO's budget. within one year. [Sec. 1302] TITLE II: CONSERVATION Program Definitions and Funding Sec. 1201 of the Food Security Act of No provisions. Adds definitions of beginning farmer or Adopts Senate provision with changes. 1985 (FSA) (P.L. 99-198, or the 1985 rancher, Indian tribe, nonindustrial Removes the test of net worth. Adopts farm bill), as amended, defines 18 terms. (Note: some terms added by the Senate private forest land, socially the 1990 farm bill definition of a socially [16 U.S.C. 3801] bill in this section are defined for specific disadvantaged farmer or rancher, and disadvantaged farmer or rancher, with conservation programs, as noted below.) technical assistance. Authorizes USDA changes to define farm, integrated pest to employ a test of net worth or other management, person and legal entity, and measure to qualify. [Sec. 2001] livestock. [Sec. 2001] Sec. 1241(a) of the FSA, as amended, Extends reauthorization through FY2012 Extends reauthorization through FY2012 Extends reauthorization through FY2012 authorizes mandatory funding through with funding specified for CSP, FPP, with funding specified for CSP, FPP, with the following in additional new FY2007 to carry out various conservation EQIP, and WHIP. [Sec. 2401(a)] EQIP, WHIP, GRP, and the Voluntary budget authority: CSP ($1.1 billion); programs. [16 U.S.C. 3841] Public Access and Habitat Incentives EQIP ($3,393 million); and FPP ($773 Program. [Sec. 2401(a)] million). [Sec. 2701] Note: Authorized funding levels for various programs is provided in individual program sections below. Highly Erodible and Wetland Conservation Secs. 1211-1212 of the FSA, as amended, No comparable provision. Adds a second level of review by the Adopts Senate provision, providing for makes violators of the conservation state or district director, with technical review of good faith determinations compliance program ineligible for certain concurrence from USDA's Natural related to highly erodible land program benefits, with some exceptions Resources Conservation Service (NRCS) conservation. [Sec. 2002] CRS-79 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) from full loss of eligibility. [16 U.S.C. if the Secretary has determined that this 3811-3812a and 3812f] exception should apply. [Sec. 2101] Secs. 1221-1222 of the FSA, as amended, No comparable provision. Add a second level of review by the state Adopts Senate provision, providing for makes swampbuster ineligible for certain or district director, with technical review of good faith determinations program benefits, with some exceptions concurrence from NRCS if the Secretary related to wetland conservation. from full loss of eligibility. [16 U.S.C. has determined that this exemption [Sec. 2003] 3821-3824, and 3822h] should apply. [Sec. 2201] Comprehensive Conservation Enhancement Program The 1990 farm bill amended Sec. 1230 of No comparable provision. (Note: Deletes Section 1243 in prior law, and Does not reauthorize the CCEP. The the FSA to establish a program later Amendments to Sec. 1243 described moves some provisions, amended, into Healthy Forest Reserve Program is renamed the Comprehensive below in the "other conservation this (and other) sections. Extends CCEP retained in the forestry title [Sec. 8205]; Conservation Enhancement Program programs" subsection .) through FY2012. Makes changes that the county acreage cap is addressed (CCEP). The CCEP, which includes the reduce administrative burdens, streamline elsewhere [Sec. 2708]. The agreement Conservation Reserve Program (CRP), the application process, and promote adopts a provision to exclude CREP Wetlands Reserve Program (WRP), and partnerships. Deletes EQIP from CCEP acreage and continuous CRP acreage the Environmental Quality Incentives and adds the Healthy Forests Reserve from the 25% cap if the county Program (EQIP), promotes long-term Program. Adds a new exception whereby government concurs, and further protection for environmentally sensitive USDA may exceed the enrollment specifies this provision is separate and lands through easements and technical/ limitation when a state or local regulation distinct from the existing waiver financial assistance. [16 U.S.C. 3830] prohibits agricultural water use, requiring authority. [Sec. 2106] Additional USDA to enroll the land within 180 days guidance is provided in the Managers Note: Administration of CCEP, the of receiving a request and pay a rental statement. subject of Sec. 1243, is described below. rate that reflects the rate prior to implementing the regulation. [Sec. 2301] The 1990 farm bill amended Sec. 1243 of Amends administration provisions by Amends to streamline application Adopts House provision with changes the FSA to authorize administration of moving sections on acreage enrollment process, add new endangered species and names the initiative the Cooperative CCEP. Provisions include avoiding limits, tenant protection, and obtaining provisions, and establish new Conservation Partnership Initiative duplication of required conservation technical assistance. Establishes a new partnerships and cooperation projects for (CCPI). [Sec. 2707] Allows USDA to plans, limiting enrollment under CRP and Cooperative Conservation Partnership special projects (up to 5 years) with make consider local circumstances, goals, WRP to 25% of the cropland in a county, Initiative to carry out projects/initiatives multiple producers and eligible partners and objectives, and provides for protecting the interests of share croppers using competitive (2-5 years) grants. to address state conservation adjustments to provide producers and tenants, allowing approved sources Specifies 14 criteria to be used in recommendations. Specifies five project preferential enrollment in the applicable to provide technical assistance, and using reviewing applications and 9 project purposes, lists application contents, and program as part of the special project. up to 5% of the funds from the priorities. Specifies duties of participant identifies USDA's duties and priorities Applies to all USDA conservation mandatory funded conservation programs and USDA. Specifies program will be when selecting projects (including 14 programs except CRP, WRP, FPP and to foster cooperation through funded with 10% of funds for CSP, priority water project areas); also requires GRP. The stated intent is to provide for partnerships. [16 U.S.C. 3844] EQIP, and WHIP. The federal share for monitoring and evaluation. Specifies applications that include innovative CRS-80 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) each project will be at least 75% of costs; funding of 10% of the mandatory funds combinations of covered initiative 90% of the funds will be allocated at the allocated to each state (except CRP, CSP, programs, and applications that might state level (incentives and bonus WRP, and the new Conservation work in tandem with the enhancement payments may be used for specified Stewardship Program), with 75% of programs under CRP or WRP. Additional purposes). Limits administrative costs to funds for intra-state and 25% for multi- guidance is provided in the Managers 5% of any grant. [Sec. 2403] state projects. [Sec. 2405] statement. Conservation Reserve Program Sec. 1231(a-d) of the 1985 farm bill Extends authorization through CY2012; Extends authorization through CY2012. Extends authorization through CY2012, (FSA) authorizes the CRP; the program is retains current acreage enrollment limit Retains current acreage enrollment limit. and allows USDA to address issues under currently authorized through CY2007 at (39.2 million acres). [Sec. 2101(a-b)] Adds pollinator habitat to the general State, regional, and national conservation 39.2 million acres. [16 U.S.C. 3831(a-d)] purposes. Expands eligible land to initiatives. Caps enrollment at 32 million include some types of marginal pasture- acres [Sec. 2103]. Clarifies that alfalfa land and land enrolled in a new flooded grown as part of a rotation practice is a farmland program. [Sec. 2311(a-c)] commodity for crop history purposes. [Secs. 2101-2102, 2105] Provides for pollinator habitats. [Secs. 2706, 2708] Sec. 1231(f) of the FSA, as amended, Deletes states but retains Chesapeake Bay Similar to the House bill; also adds to the Adopts House provision to include all lists priority areas as the Chesapeake Bay region. [Sec. 2101(b)] list the prairie pothole region, the Grand States that make up the Chesapeake Bay region (PA, MD, VA) , the Great Lakes Lake St Mary's Watershed, and the Region as the Conservation Priority Area. Region, and Long Island Sound. [16 Eastern Snake Plain Aquifer. [Sec. [Sec. 2104] U.S.C. 3831f] 2311(d)] Sec. 1231(h) of the FSA, as amended, Extends program through CY2012. [Sec. Extends program through CY2012; Adopts Senate provision with changes. authorizes a one million acre pilot 2101(e)] expands eligibility to include certain amendment. Enrollment is capped at program within the CRP for wetlands and shallow water areas and certain 100,000 acres in any State and 1 million buffer areas. [16 U.S.C. 3831h] agricultural drainage water treatment acres total. Adds conforming changes to collection areas, and expands the eligible the Emergency Forestry Conservation buffer acreage. Directs USDA to Reserve Program. Expands enrollment establish the maximum size of the buffer of wetland and buffer acreage to include acreage to be enrolled along with eligible land that had been cropped during 3 of lands. Increases the maximum wetland 10 crop years prior to 2002 and after size to 40 contiguous acres and makes all 1990 and is subject to a natural overflow acres eligible for payment. [Sec. 2311(e)] of a prairie wetland. [Sec. 2106] Sec. 1232(a)(7) of the FSA, as amended, Allows managed haying and grazing to Allows managed haying and grazing to Adopts House provision with changes, specifies a duty of participants is limiting control invasive species, and adds detail control invasive species and permits allowing for routine grazing, including commercial uses, including haying and on allowed uses, enrolled lands, and managed haying and grazing that is a part grazing to control invasive species. grazing on enrolled lands; allows adjustments to annual contract payments. of a conservation plan. [Sec. 2311(h)] Additional guidance is provided in the CRS-81 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) managed haying/grazing under certain [Sec. 2101(f)] Managers statement. [Sec. 2108] Grants circumstances. [16 U.S.C. 3832a(7)] "management on land" should not result in a reduced payment, if done in accordance with the contract. [Sec. 2107] Sec. 1234(c) of the FSA, as amended, Requires USDA to conduct and make Similar to the House bill; also requires Requires USDA to survey annually the establishes a framework for calculating available an annual survey of dryland and USDA to give preference to local owners per acre estimates of county cash rents annual rental payments. [16 U.S.C. irrigated cropland cash rental rates in all or operators when considering competing paid to contract holders, and requires that 3834c] counties with more than 20,000 acres of offers providing equivalent benefits. USDA give priority to offers from local crop and pasture land. [Sec. 2101(g)] [Sec. 2311(j)] residents if conservation benefits are equivalent among offers. [Sec. 2110 ] Sec. 1235(e) of the FSA, as amended, Allows USDA to terminate any contract Allow USDA to terminate a contract if a Adopts House provision. [Sec. 2111] allows USDA to terminate CRP contracts after 5 years, but prohibits terminating retired or disabled producer has endured after 5 years if contract was in effect contracts for land enrolled under a financial hardship because of taxes on before 1/1/95. [16 U.S.C. 3835e] continuous signup. [Sec. 2101(i) and (j)] rental payments. [Sec. 2311(k)] No comparable provision. No comparable provision. No comparable provision. Specifies a 50% federal share of cost sharing payments relating to trees, windbreaks, shelterbelts, and wildlife corridors. [Sec. 2109] The 2002 farm bill amended Sec. 1244(a) Facilitates the transfer of CRP land from No comparable provision. Adopts House provision with of the FSA to authorize USDA to provide a retiring owner to a beginning / socially- modifications. [Sec. 2111] incentives to beginning farmers/ranchers disadvantaged producer to return land to (Note: Support for socially disadvantaged and Indian tribes to participate in con- production, and allows new owner to and limited resource farmers/ranchers are servation programs. [16 U.S.C. 3844(a)] begin land improvements or start organic in other bill sections.) certification process one year before CRP contract expires. [Sec. 2101(h)] No comparable provision. No comparable provision. Creates new Flooded Farmland Program Deletes this section and modifies CRP for the Prairie Pothole region within the and WRP to accomplish the intent of the CRP. Allows continuous enrollment. Senate amendment, including expanding Eligible land parcels must exceed 5 acres, eligible lands under the CRP pilot been incapable of production preceding 3 program for wetlands and buffer areas crop years, have a cropping history, and [Sec. 2106] and expands eligible lands have no natural outlet. [Sec. 2312] under WRP. [Sec. 2201] No comparable provision. No comparable provision. Creates new Wildlife Habitat Program Deletes this section and modifies CRP to for CRP participants with established accommodate the intent of the Senate softwood pine stands using management amendment. Additional guidance is CRS-82 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) practices that benefit wildlife (contracts provided in the Managers statement. up to 5 years). Program ends September 30, 2011. [Sec. 2313] Wetlands Reserve Program The 1996 farm bill amended Sec. 1237(a) Adds to the purposes to create and to No comparable provision. Amends purposes to restore, protect, or of the FSA to authorize WRP, stating its enhance wetlands, and to purchase enhance wetlands on private or tribal purpose to restore and protect wetlands. floodplain easements. [Sec. 2102(a)] lands. [Sec. 2201] [16 U.S.C. 3837a] Sec. 1237(b) of the FSA, as amended, Sets maximum enrollment at 3.605 Sets annual fiscal year enrollment goal of Sets maximum enrollment at 3.041 sets maximum enrollment at 2.275 million acres. Sets an annual fiscal year 250,000 acres, with no enrollment after million acres. Sets annual fiscal year million acres, with an annual calendar enrollment goal of 250,000 acres, of FY2012. [Sec. 2321] enrollment goal of 250,000 acres through year enrollment goal of 250,000 acres. which not more than 10,000 acres may be FY2012. [Sec. 2202-2203] [16 U.S.C. 3837b] flood plain easements. [Sec. 2102(b)] New section adds language authorizing WRP from FY2008-12. [Sec. 2402(h)] Sec. 1237(c) of the FSA, as amended, Adds riparian areas to eligible wetlands, Expands eligible lands under WRP to establishes requirements for eligible and makes eligible floodplain land include cropland or grassland that was lands through 2007. [16 U.S.C. 3837c] flooded in the past calendar year or at used for agricultural production prior to least twice in the past 10 years, and land flooding from the natural overflow of a that contributes to flood water storage, closed basin lake or pothole. [Sec. 2203] flow, or erosion control. [Sec. 2102(c)] Adds terms to "meet habitat needs of specific wildlife species." [Sec. 2204] Sec. 1237(e) of the FSA, as amended, Expands ineligible lands to include No comparable provision. Expands ineligible lands to include identifies ineligible land to include lands floodplains where restoration practices farmed wetland or converted wetland, already planted to timber in the CRP. [16 would not be productive or the land is together with the adjacent land that is U.S.C. 3837e] already protected. [Sec. 2102(d)] functionally dependent on the wetlands, except wetlands converted before December 23, 1985. [Sec. 2203] Sec. 1237A(f) of the FSA, as amended, Limits compensation to lowest of 4 Limits compensation to lowest of 3 Adopts House provision with changes, states compensation to be paid in cash (in options: percentage of the fair market options: an amount necessary to revising the process for determining the 5 to 30 payments) and not to exceed the value; percentage of market value encourage enrollment; a limit for a value of easements and contracts by fair market value, as reduced by the determined by a survey; a geographic geographic area; or a landowner's offer. requiring USDA to provide the lowest easement. [16 U.S.C. 3837a(f)] cap; or a landowner's offer. Allows Compensation may be in 1 to 30 amount of compensation based on a USDA to use non-federal contributions to payments. [Sec. 2322(b)(3-4)] comparison of the fair market value of administer program [Sec. 2102(e)] the land, a geographic cap, or an offer CRS-83 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) made by the landowner. Provides that easements with values less than $500,000 be paid out over 1-30 years; easements with values greater than $500,000 are to be paid out over 5-30 years. [Sec. 2208] Provides for the repeal of payment limitations (exception for State agreements for new Wetlands Reserve Enhancement Program. [Sec. 2209] Sec.1237C(c) of the FSA, as amended, Adds new additional criteria for ranking No comparable provision. Adopts House provision. [Sec. 2207] lists three considerations USDA is to use offers (conservation benefits; cost- when considering offers for WRP effectiveness; and offer of a financial contracts. [16 U.S.C. 3837c(c)] contribution) and conservation benefits of floodplain lands. [Sec. 2102(f)] Sec. 1237D(c)(4) of the FSA, as Replaces provision with a new language Authorizes a Wetlands Reserve Adopts Senate provision authorizing amended, waives limits for public entities on Wetland Reserve Enhancement Enhancement Program (WREP). Makes WREP for agreements with States similar receiving payments through the wetland program, where states contribute funds so a conforming change to allow payments to CREP. Authorizes a Reserved Rights and environmental enhancement as to increase payments. [Sec. 2102(g)] for 30-year contracts. [Sec. 2322(c)] Pilot program. [Sec. 2205-2206] programs. [16 U.S.C. d(c)(4)] No comparable provision. No comparable provision. Requires a report to House and Senate Adopts Senate provision. [Sec. 2210] Agriculture Committees by 1/1/2010 on the implications of long-term easements on USDA resources. [Sec. 2322(d)] Conservation Security Program The 2002 farm bill amended the FSA to Establishes a new CSP for FY2012-2017. Authorizes through FY2012 a new CSP Defines program terms for the new CSP. establish the Conservation Security Eligible producers must submit an offer as a conforming amendment, and Adopts elements of the Senate provision. Program (CSP) for FY2003-11. Defines addressing "at least one priority resource reauthorizes current CSP for existing Expands eligible lands to include eligible producers and eligible lands and of concern to a minimum level of contracts only. Future CSP contracts nonindustrial private forest land (limited excluded lands (land enrolled in management intensity." Eligible land would be replaced by a Comprehensive to not more than 10% of total annual multiyear land retirement programs and excludes incidental forest land. Limits Stewardship Incentives Program acres under the program). Permits 5-year land not in crop production at least 4 of program to one type of contract of 5 consisting of a Conservation Stewardship extension of contracts. Excludes under the preceding 6 years). Specifies terms years; describes five elements to be in all Program with similar provisions of the the program, land used for cropland that for 3 tiers of conservation contracts. contracts, but eliminates list of topics to existing CSP and EQIP. Eligible land had not been planted, considered to be Identifies topics that may be addressed in be addressed. Prohibits termination of must have been planted to crops 4 of planted, or devoted to crop production contracts. Contracts are 5 years under tier contracts, without penalty, by a producer preceding 6 years. Specifies contract are for 4 of the 6 years prior to the date of 1, and 5 to 10 years under tiers 2 and 3. who is required to modify a contract. for 5 years, with renewal under certain enactment of the act (unless the land had CRS-84 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Specifies circumstances and requirements Allows contracts to be renewed for one conditions. Allows for terminating and previously been enrolled in CRP; had for modifying, terminating, and renewing additional 5 year period. Adds new changing contracts. Specifies how to been maintained in a long term crop contracts. Contracts may be renewed for provisions on evaluating offers from evaluate contract offers, producer duties, rotation; or was incidental land needed 5 to 10 years. Defines 15 terms organic producers. Defines twelve terms enhancement terms, and supple-mental for efficient operation). [Sec. 2301] pertaining to the program. that are new terms or differ from prior payments. Defines 15 terms. [Secs. [16 U.S.C. 3838] law. [Sec. 2103(a)] 2391 and 2341] Secs 1238A(d-3) of the FSA, as Limits program to 1 type of contract of 5 Defines eligible land and eligible Adopts Senate provision with amended, specifies terms for 3 tiers of years and describes 5 elements to be in producers; land must have been planted modifications. Authorizes supplemental conservation contracts. Identifies topics all contracts, but eliminates list of topics to crops 4 of preceding 6 years. Contents payments for producers who adopt a that may be addressed in contracts. to be addressed. Contracts could no of contracts are specified and are for 5 beneficial crop rotation that provide Contracts are 5 years under tier 1, and 5 longer be terminated, without penalty, by years, with renewal if certain conditions significant conservation benefits and are to 10 years under tiers 2 and 3. Specifies a producer who is required to modify a are met. Specifies considerations in not limited to a particular crop, cropping circumstances and requirements for contract. Contracts may be renewed for evaluating contract offers, producer system, or region of the country. Allows modifying, terminating, and renewing 1 additional 5 year period. New duties, enhancement terms, and for on-farm conservation research and contracts. Contracts may be renewed for provisions on evaluation of offers and supplemental payments. Adds provisions demonstration activities and pilot-testing 5 to 10 years [16 U.S.C. 3838a(d-e)] coordination with organic certification on terminating and changing contracts. as part of contract offers. Allows for are added. [Sec. 2103(a)] [Sec. 2341] contract modification. [Sec 2301] Sec. 1238C of the FSA, as amended, Alters duties of the Secretary to include Alters duties of the Secretary to allow for Provides that state acreage allocations be specifies that duties of the Secretary identification of priority resources of continuous enrollment (allowing a based on each state's proportion of include making payments early in each concern at the state level (limited to 5 producer to apply at any time during the eligible acres to the total eligible acres fiscal year, the components of payments concerns in any geographic area of a year), providing assistance to producers, nationwide (available to all producers, for each tier, annual payment limits for state). Limits total payments under a and maintaining contract and payment not only specific watersheds/geographic each tier ($20,000 for tier 1, $35,000 for contract to $150,000 (5 years); allows information that will support program regions), allowing for input from USDA. tier 2, and $45,000 for tier 3), minimum for the environmental needs associated monitoring and evaluation, and enabling Directs USDA to adopt continuous requirements for practices, and with agriculture to be considered in state specialty crop producers to participate. enrollment, but allows for USDA to requirements for implementing allocations; requires USDA to compile Specifies an acreage allocation, limiting determine when to rank applications. regulations [16 U.S.C. 3838c] data of specified program contract and payments to $240,000 (6-year). Directs USDA to provide technical payment topics. [Sec. 2103 (a)] [Secs. 2391 and 2341] assistance to specialty crop and organic producers. Directs USDA to encourage producers who are transitioning from land retirement programs to enroll in CSP and other working lands programs. Limits payments to $200,000 in any 5- year period. [Sec. 2301] No comparable provision. No comparable provision. Provides for enrollment of up to 79.628 Deletes Senate provision. Enrolls an million acres and attempted annual additional 12.8 million acres annually enrollment of 13.273 million acres, FY2008-2017. [Sec. 2301] nationwide and at a average annual cost CRS-85 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) of $19 per acre. Provides for small farm participation, and allocates to each state each year the lesser of 20,000 acres or 2.2% of the eligible land. [Sec. 2341] No comparable provision. No comparable provision. Requires regulations to be issued within Deletes Senate provision. Directs USDA 180 days of enactment. [Sec. 2341] to promulgate regulations. [Sec. 2301] Sec. 1241(a)(3) of the FSA, as amended, Prohibits any new contracts under the Prohibits any new contracts under the Adopts Senate provision. The Manager's authorizes mandatory funding for the terms of the 2002 CSP, such that no new terms of the 2002 CSP, such that no new report states that the bill provides for a CSP at $1.954 billion for FY2006-10 and CSP contracts may be entered into after CSP contracts may be entered into after $1.1 billion increase in budget authority $5.65 billion from FY2006-15. [16 October 1, 2007 (although payments may October 1, 2007 (although payments may above current baseline (FY2008-2017). U.S.C. 3841(a)(3)] be continued until contracts expire). For be continued until contracts expire). Provides such sums as necessary to carry contracts signed before 10/1/07, provides Authorizes $2.3 billion in mandatory out existing CSP contracts. [Sec. 2701] a total of $1.5 billion in mandatory funding for contracts entered into before funding for FY2007-12, and $1.9 billion the date of enactment, (available until for FY2012-17. For contract signed after spent) and an unspecified amount for the 10/1/11, provides $0.5 billion for new CSP (enrollment in the new program FY2012 and $4.6 billion for FY2012-17. is measured in acres rather than dollars). [Sec. 2401(b)] [Sec. 2401(a)(3-4)] Environmental Quality Incentives Program The 1996 farm bill amended Sec. 1240 of Adds forest management and organic Adds forest management to the statement Adds forest management to purposes, the FSA to authorize EQIP, stating its transition to the program purposes. of program purposes, and recognizes and adds language regarding forest lands purpose as promoting production and Revises the descriptions of 2 of the 5 pollinators and fuels management in the on EQIP program plan and duplication. environmental quality as compatible purposes to recognize energy amplifying statements. [Secs. 2351, [Secs. 2505-2506] Adopts the Senate goals, and optimizing environmental conservation and conservation on forest 2352, and 2354] Adds aquaculture to the provisions with an amendment to modify benefits by working in 5 specified areas. lands. [Sec. 2105(a)] Adds forestry, "eligible land" definition; forestry is eligible land. [Sec. 2502] Allows for [16 U.S.C. 3839aa] Defines 6 terms: forest management practices, and added to the "land management technical assistance to farmers that beginning farmer or rancher, eligible coordinated implementation to the "land practice" definition; adds conservation promote pollinator habitats, and farmers land, land management practice, management practice" definition. Adds planning practices to "practices;" defines transitioning to organic farming, among livestock, practice, and structural alpacas and bison to the "livestock" "producer" to include custom feeding activities. [Sec. 2501] Further clarifies practice. definition. Adds definitions of businesses and contract growers; and duties of the Secretary. [Sec. 2507] "integrated pest management" and adds firebreaks to "structural practice." "socially disadvantaged farmer or [Sec. 2352] rancher." [Sec. 2105(b)] Sec. 1240B(a-c) of the FSA, as amended, Reauthorizes through FY2012. Expands Reauthorizes through FY2012. Expands Reauthorizes through FY2012. Limits authorizes EQIP through FY2010. types of eligible practices to include permitted practices to include payments to 75% of costs. [Sec. 2503] Eligible practices are defined. Contracts organic certification using technical conservation planning. Limits contracts Lowers individual payment limits from CRS-86 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) are 1 to 10 years. [16 U.S.C. 3839aa- services from approved providers, and to a maximum of 5 years. Removes $450,000 to $300,000 during any 6-year 2(a-c)] improved energy efficiency, renewable prohibitions on bidding down. [Sec. period , except in cases of special energy systems. [Sec. 2105(c)] 2353(a-c)] environmental significance (including projects involving methane digesters), allowing USDA to raise the limit to not more than $450,000. [Sec. 2508] Directs USDA to develop criteria for evaluating applications to address national, State, and local conservation priorities, allowing for prioritization and grouping of applications based on cost- effectiveness, how address the designated resource concern(s), how best fulfills the purpose of EQIP, and if improves conser- vation practices or systems. [Sec. 2504] Sec. 1240B(d)(2) of the FSA, as Sets the federal cost share at 90% for Sets the federal cost share at 90% for Adopts Senate proposal. [Sec. 2503] amended, allows limited resource and socially disadvantaged producers. socially disadvantaged producers. beginning producers to receive not more Provides increased federal cost-share of Allows for advanced payments to than a 90% federal cost share. [16 U.S.C. 90% for using gasifier technology for purchase materials and contracting. [Sec. 3839aa-2(d)] certain purposes. [Sec. 2105(d-e)] 2353(c)] Sec. 1240B(e) of the FSA, as amended, Expands purposes for incentive Expands purposes receiving special Adopts House provision. [Secs. 2503. provides incentive payments to perform payments: (1) receiving technical emphasis to include predator species 2706 and 2708] Includes special rule land management practices, with special services from approved third party protected under the Endangered Species that USDA may accord significance to emphasis given to practices that promote providers, (2) developing a Act, gray wolves, grizzly bears, and practices promoting residue, nutrient, air specified goals. [16 U.S.C. 3839aa-2(e)] comprehensive nutrient management black bears. [Sec. 2353(c)(3)] quality, pest, and invasive species plan, and (3) implementing energy management; pollinator habitat; and efficiency and renewable energy animal carcass management technology. projects. Pollinator habitats will receive The conference report recognizes as special emphasis. [Sec. 2105(f)] consistent with the purposes of EQIP options to deter predators protected by the Endangered Species Act, and also delisted populations. Sec. 1240B(g) of the FSA, as amended, Extends through FY2012 the 60% of Similar to the House bill. Extends through FY2012 the 60% of requires that 60% of payments go to payments to livestock production [Sec. 2353] payments to livestock production practices related to livestock production requirement. [Sec. 2105(g)(2)] requirement. [Sec. 2503] requirement. [16 U.S.C. 3839aa-2(g)] CRS-87 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. Requires USDA to reserve at least 5% of Amends the cost-share rate exception for Adopts Senate provision for advance program funds for beginning and socially beginning and socially disadvantaged payments for beginning, socially disadvantaged producers for at least 90 farmers or ranchers to allow variable disadvantaged and limited resource days after the program funds have been payment, not to exceed 90%, and farmers or ranchers and deletes made available. [Sec. 2105(g)] authority to provide advance payments Senate provision for guaranteed loan up to 30% for the purchase of materials eligibility. Adopts Senate provision with or contracting. [Sec. 2353] an amendment for cost-share rates and advance payments for beginning, socially disadvantaged, and limited resource farmers or ranchers. [Sec. 2503] No comparable provision. No comparable provision. Gives priority to improving water Deletes Senate provision. conservation and air quality, under certain conditions. Requires participants to have/expect at least $15,000 in gross sales from farming. [Sec. 2353(c)(6)] No comparable provision. Expands eligibility to market agencies Expands `producer' eligibility to include Adopts Senate provision with an and custom feeders. [Sec. 2105(h)] a custom feeding business and a contract amendment to modify eligible land. grower or finisher. [Sec. 2352] [Sec. 2502] Sec. 1240C of the FSA, as amended, Identifies 5 priorities for program Adds a higher priority for improving Adopts House provision with changes to gives higher priority for participation in applications. Specifies a streamlined conservation practices or systems in prioritize State, regional, or local EQIP to producers using cost-effective evaluation process for operations with place at the time of the contract offer. resource concerns, and to allow for the conservation practices and practices that substantial and sound environmental [Sec. 2354] grouping of applications of similar address national conservation priorities. management systems involving a limited agriculture operations. [Sec. 2502] [16 U.S.C. 3839aa-3] number of practices. [Sec. 2105(i)] Sec. 1240E of the FSA, as amended, Adds to the planning requirements the Includes forestry language similar to Adopts House forestry provision [Sec. defines the general contents of a need to be consistent with forest plans, House bill, but also allows a producer 2502], but strikes Senate provision on producer's EQIP plan, and calls on and allows as an acceptable plan organization to act on behalf of its producer organizations. USDA to avoid duplication with other consideration of an air or water quality membership in submitting applications or conservation plans. [16 U.S.C. 3839aa-5] permit that meet regulatory requirements conducting similar activities to facilitate as an acceptable plan. [Sec. 2105(k)] program participation. [Sec. 2356] Also establishes a Chesapeake Bay Watershed Conservation Program under EQIP to assist producers in applying conservation practices on agricultural/nonindustrial private forestland in the Bay watershed to address natural resource concerns related to agriculture, funded at $165 million for CRS-88 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) FY2008-12. [Sec. 2361] Sec. 1240F of the FSA, as amended, Lists 3 criteria that must be met before No comparable provision. Deletes House provision. provides for USDA funding, information, USDA can provide assistance for and training to develop and implement practices with a primary purpose of water conservation plans. [16 U.S.C. 3839aa-6] conservation. [Sec. 2105 (l)] Sec. 1240H of the FSA, as amended by Adds to the Conservation Innovation Adds to the Conservation Innovation Adopts House provisions related to forest the 2002 farm bill, provides for a Grants provisions under EQIP. Adds Grants provisions under EQIP. Adds resource management and air quality. competitive grants program within EQIP, detail on qualities of eligible projects, nonindustrial private forest lands to the Provides $37.5 million annually on a matching basis, to implement establishes a pilot program for list of potential recipients of innovative (FY2009-2012) to implement air quality innovative conservation practices; conservation planning in the Chesapeake technologies. Adds two items to the list plans. [Sec. 2509] The conference examples listed are using market systems Bay watershed, and adds a new of examples: (1) transfers of innovative report states conservation programs in pollution reduction, and using subsection to assist producers who are technologies to nonindustrial private should recognize the use of innovative innovative practices, such as storing meeting state and local regulatory air forest land in production, and (2) technology such as enhanced efficiency carbon in soil; no funding is specified. quality requirements. Provides funding assistance for specialty crop production. fertilizers. [16 U.S.C. 3839aa-8] from EQIP: $30 million (FY2008) rising [Sec. 2358] to $75 million (FY2012), with specified funds for air quality and for organic and specialty crop producers. [Sec. 2105(m)] Sec. 1240I of the FSA, as amended by Replaces GSWCP with a Regional Water Maintains GSWCP and provides an Replaces GSWCP with the Agricultural the 2002 farm bill, creates a Ground and Enhancement Program to address water increase in funding from $60million to Water Enhancement Program (AWEP) Surface Water Conservation Program quality, make eligible governmental $65 million annually. Provides funding under EQIP. Provides mandatory (GSWCP) within EQIP for activities that entities (including irrigation and water for each state that received funding under funding: $73 million annually (FY2009- will result in a net savings of ground or districts) and Indian tribes, and to the program in previous years (simple 2010), $74 million (FY2011), and $60 surface water; lists 6 types of eligible implement program on a regional scale average of funds provided for FY2002- million annually (FY2012 and each year activities (improve irrigation systems, for through cooperative agreements. 2007 or the amount provided in 2007, thereafter). Recognizes the purpose as example), and provides mandatory Expands the list of eligible activities and whichever is greater), except for states addressing water quality/quantity funding of $25 million in FY2002, requires the Secretary to identify priority over the Ogallala Aquifer, which will concerns on agricultural land, with the growing to $60 million annually in areas. Lists 5 priority areas, which receive not less than the greater of $3 role of AWEP partners as leveraging FY2004-07. [16 U.S.C. 3839-aa-9] together may receive no more than 50% million or the average of funds provided federal funds and encouraging producers of the available funds. Establishes a for FY2002-2007. Provides at least $20 to address these concerns. The Managers process for soliciting/selecting proposals million for the Eastern Snake Plain report emphasizes the importance of and developing implementation Aquifer. [Sec. 2359] addressing groundwater management in agreements. Provides mandatory funds the Ogallala region, promoting water use of $60 million annually through FY2012 efficiency projects, converting irrigated (limits administrative expenses to no farming operations to a dryland farming; more than 3% of the total). [Sec. 2106] and providing assistance to construct onfarm reservoirs/irrigation ponds in drought-stricken areas. Identifies six CRS-89 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) priority areas: The Eastern Snake Plain Aquifer region, Puget Sound, the Ogallala Aquifer, the Sacramento River watershed, Upper Mississippi River Basin, the Red River of the North Basin, and the Everglades. [Sec. 2510] Follows same payment limits as under EQIP. [Sec. 2508] Provides for a transition period for the existing GSWCP through September 30, 2008. [Sec. 2903] Sec. 1240I(c)(2) of the FSA, as amended Lists the Klamath River basin as one of No comparable provision. Deletes House provision. by the 2002 farm bill, provides $50 the 5 listed priority areas under the million to carry out water conservation Regional Water Enhancement Program. (Note: The Klamath Basin is listed as 1 of activities in the Klamath River basin [Sec. 2106 (b)(2)] 14 priority areas in the Partnerships and (OR, CA) [16 U.S.C. 3839aa-9(c)(2)] Cooperation Program; see above.) No comparable provision. No comparable provision. Adds program at end of EQIP to assist Adopts Senate provision. Includes farmers who are converting to organic organic practices as eligible management production (with contracts of 3-4 years). systems and limits payment to an Payments are limited to $20,000 per year. aggregate of $80,000 in any 6-year [Sec. 2360] period. [Secs. 2501 and 2503] Sec. 1241(a)(6) of the FSA, as amended, Authorizes EQIP funding: $1.25 billion Authorizes EQIP funding: $1.27 billion Provides additional budget authority. authorizes EQIP funding, rising from (FY2008), $1.6 billion (FY2009), $1.7 annually (FY2008-09), $1.3 billion each Authorizes EQIP funding: $1.2 billion $0.4 billion in FY2002 to $1.3 billion in billion (FY2010), $1.8 billion (FY2011), (FY2010-FY2012). [Sec. 2401(a)(7)] (FY2008); $1.337 billion (FY2009); FY2010. [16 U.S.C. 3841(a)(6)] and $2 billion (FY2012). [Sec. 2401(d)] $1.45 billion (FY2012); $1.588 billion (FY2011); and $1.75 billion (FY2012). [Sec. 2701] Farmland Protection Program The 1996 farm bill amended Sec. 1238H Reauthorizes program, and renames to Reauthorizes the program. Modifies Reauthorizes the program through 2012, of the FSA to authorize the Farmland Farm and Ranchland Protection Program definition of eligible forest land, and but does not rename program. Changes Protection Program (FPP), defining (FRPP). Expands eligible land definition makes eligible other land that is needed administrative requirements, appraisal eligible entity, land, Indian tribes, and to include historic and archaeological for efficient administration of an methodology, and terms and conditions programs. [16 U.S.C. 3838h-i] The resources. States will be certified easement. Changes purpose of program of cooperative agreements. Adopts program, as amended, provides for the (reviewed every 3 years) to participate from protecting topsoil to "protecting terms/conditions for cooperative purchase of conservation easements to and receive program funds based on 4 agricultural use and related conservation agreements similar to Senate provision. protect topsoil by limiting the land's listed requirements. States may spend up values." Adds new requirements for Clarifies the purpose of the program as nonagricultural uses subject to a pending to 10% of funds for administrative costs. cooperative agreements with participants, protecting land for agricultural use by CRS-90 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) offer. The federal cost may not exceed Lists terms and conditions for agreements cost-sharing, and protection of the federal limiting nonagri-cultural uses. Adopts 50% of the value of the easement; the with eligible entities (reviewed every 3 investment. Allows USDA to enter into Senate provision to modify the definition value of a charitable donation by the years). Provides that USDA may require cooperative agreements with eligible of eligible land to include forestland and seller may not exceed 25% of the value a contingent right to enforce easement, entities under certain circumstances, and other land that contributes to the econo- of the easement. If multiple applications and requires the use of a conservation requires the protection of federal invest- mic viability of an operation. Establishes are comparable, USDA may not use cost plan for highly erodible cropland. ment through an executory limitation. a certification process similar to the alone to determine which ones will be Retains a federal contingent right of Limits the amount USDA can share in House bill for all eligible entities. To funded. enforcement or executory limitation in an the costs of purchasing the easement to become certified, entities must have the easement to ensure its enforcement. 50% of the appraised fair market value authority and resources to enforce Provides cost-share assistance for and establishes minimum amounts easements, polices in place that are purchasing an easement, but assistance entities pay based on the amount of consistent with the purposes of the may not exceed 50% of the appraised fair landowner contributions. Requires program, and clear procedures to protect market value of the easement. The fair appraisals based on uniform standards of the integrity of the program. Includes a market value is determined by an professional appraisal practice or any limit on impervious surfaces consistent appraisal using an industry-approved other industry- approved standard. with agricultural activities, and clarifies method. [Sec. 2110] [Sec. 2371] agreement terms for certified and non- certified entities. [Sec. 2401-2402] Sec. 1241(a)(4) of the FSA, as amended, Mandatory funding for the renamed Farm Mandatory funding for the FPP is Provides additional budget authority. authorizes mandatory funding for the and Ranchland Protection Program is authorized at $97 million annually from Authorizes FPP funding: $97 million FPP at; $50 million in FY2002, $100 authorized at; $125 million in FY2008, FY2008 through FY2012. [Sec. (FY2008); $121 million (FY2009); million in FY2003, $125 million in $150 million in FY2009, $200 million in 2401(a)(5)] $150 million (FY2010); $175 million FY2004 and FY2005, $100 million in FY2010, $240 million in FY2011, and (FY2011); and $200 million (FY2012). FY2006, and $97 million in FY2007. $280 million in FY2012. [Sec. 2401(c)] [Sec. 2701] [16 U.S.C. 3841(a)(4)] Grassland Reserve Program The 2002 farm bill amended Sec. 1238N Sets the GRP enrollment ceiling at an Adds definitions: eligible entity, eligible Adopts an acreage enrollment goal of an of the FSA to authorize the Grasslands additional 1.34 million acres, with at least land, and permanent conservation additional 1.22 million acres by 2012. Reserve Program (GRP), setting 60% of these acres to be enrolled using easement. Eligible entity and authority Includes 10-, 15-, and 20-year rental maximum enrollment for at 2.0 million 30 year rental agreements and easements. would allow for USDA to enter contracts and permanent easements. acres (all enrolled parcels in at least 40 [Sec. 2104(a) and (b)] cooperative agreements with entities to Deletes House priority for 60% of contiguous acres). Requires 40% of land purchase easements. Provides for GRP acreage in long term contracts; retains enrolled in 10-20 year, and 60% in 30 enrollment options through a 30 year law that 60% of funds would be year agreements. [16 U.S.C. 3838n] contract, 30 year easement, and dedicated to easements, while 40% of permanent easement. [Sec. 2381] funds would be dedicated to short term contracts. Adopts Senate definition of eligible entity, authority, and eligible land (with technical corrections). Adopts a priority for enrollment of CRP land CRS-91 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) with a modification to clarify that the priority applies upon expiration of the CRP contract. [Sec. 2403] No comparable provision. Allows USDA to transfer certain land Allows USDA to transfer certain land Adopts House provision regarding the currently in the CRP into the GRP, but currently in the CRP to be transferred to method for determining fair market value limits the total in any calendar year to no a permanent easement under GRP, but with a technical correction. [Sec. 2403] more than 10% of GRP acres enrolled. limits the total transferred in any calendar Requires USDA pay the lowest of four year to 10% of the total funding available specified ways to calculate fair market for the GRP in that year. [Sec. 2381] value. [Sec. 2104(c)] Sec. 1238O of the FSA, as amended, No comparable provision. Specifies landowner duties and USDA Adopts Senate provisions with changes. specifies the duties and requirements of considerations in evaluating offers. [Sec. 2403] landowners in the GRP, terms of Specifies how to determine compensation easements and agreements, and how levels and technical assistance. Specifies applications are to be evaluated. [16 terms/conditions that apply to GRP U.S.C. 3838o] contracts/easements, such as permitted and prohibited uses, minimum require- ments for cooperative agreements, and other considerations. [Sec. 2381] No comparable provision. Authorizes a Grasslands Reserve No comparable provision. Deletes House provision. Enhancement Program. [Sec. 2104 (d)] Sec. 1238Q(a) of the FSA, as amended, Requires USDA to transfer the title of an Provides authority for USDA to enter Adopts the Senate amendment provision allows USDA to transfer the title of an easement to a private organizations or a into cooperative agreements with eligible for cooperative agreements between easement in the GRP to a state or private state. [Sec. 2104 (e)] entities for those entities to purchase, USDA and eligible entities with a organization. [16 U.S.C. 3838q(a)] own, enforce, and monitor easements. modification to the language specifying [Sec. 2381] that eligible entities shall assume costs of administering and enforcing easements. Adopts a requirement for a contingent right of enforcement. [Sec. 2403] Sec. 1241(a)(5) of the FSA, as amended, No comparable provision. Total GRP funding limited to $240 Deletes Senate provision. limits funding for the GRP to a total of million for FY2008-12, with no acreage $254 million from FY2003-07. [16 (Note: Sets acreage enrollment limit in enrollment limit. [Sec. 2401(a)(6] U.S.C. 3841(a)(5)] GRP provisions, but no funding limit.) CRS-92 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Wildlife Habitat Incentives Program The 1996 farm bill amended Sec. 1240N Reauthorizes WHIP through FY2012; Reauthorizes WHIP through FY2012; Limits program eligibility to focus on of the FSA to authorize Wildlife Habitat allows additional funds to be used to increases portion of funds for long-term lands `'for the development of wildlife Incentives Program (WHIP), providing meet regulatory requirements that agreements from 15% to 25% of funding; habitat on private agricultural land, cost-sharing to landowners who improve "reduces the economic scope of the requires USDA to give priority to nonindustrial private forest land, and habitat, with up to 15% of the total made producer's operation;" increases portion projects that foster the goals of state, tribal lands." Raises limit on cost-share available in any years for agreements that of funds for long-term agreements from regional, and national fish and wildlife payments for long-term projects to 25% are longer than 15 years. 15% to 25% of funding. [Sec. 2112] conservation plans. [Sec. 2393] and limits total payments to $50,000 per [16 U.S.C. 3839bb-1] year. Allows USDA to provide priority to projects that address issues raised by State, regional, and national conservation initiatives. [Sec. 2602] Sec. 1241(a)(7) of the FSA, as amended, Mandatory funding for WHIP is Similar to the House bill. Reauthorizes program through FY2012 at authorizes mandatory funding raising authorized at $85 million annually [Sec. 2401(a)(8)] current levels. [Sec. 2701] from $15 million to $60 million between through FY2012. [Sec. 2401(e)] FY2002-04, and $85 million annually (FY2005-07). [16 U.S.C. 3841(a)(7)] Other Conservation Programs The 2002 farm bill amended the FSA to Reauthorizes discretionary funding for Reauthorizes discretionary funding for Reauthorizes the program through 2012. provide grants to implement a Farm program through FY2012. [Sec. 2111] program through FY2012. [Sec. 2396] [Sec. 2402] Viability Program. Authorizes appropriations "such sums as are necessary" through FY2007. [16 U.S.C. 3838j] The 1996 farm bill amended Sec. Extends authorization of appropriations Extends authorization of appropriations Extends authorization of appropriations 1240M(e) of the FSA to authorize the through FY2012. [Sec. 2108] through FY2012. [Sec. 2392] through FY2012. [Sec. 2601] Conservation of Private Grazing Land Program. Authorizes appropriations of $60 million annually through FY2007. [16 U.S.C, 3839bb(e)] The 2002 farm bill amended Sec. 1240O Authorizes $20 million annually in Authorizes $20 million annually in Adopts Senate provision. [Sec. 2603] of the FSA to authorize a Grassroots discretionary funds (FY2008-12) and discretionary funding (FY2008-12). Source Water Protection Program to one-time funding of $10 million in [Sec. 2394] assist state rural water associations that mandatory funding to remain available operate wellhead and groundwater until spent. [Sec. 2107] CRS-93 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) protection programs. Authorizes appropriations of $5 million annually through FY2007. [16 U.S.C. 3839bb-2] The 2002 farm bill amended Sec. 1240P Extends authorization of appropriations Extends authorization of appropriations Reauthorizes program, and authorizes $5 of the FSA to authorize a Great Lakes through FY2012. [Sec. 2109] through FY2012; specifies program will million annually FY2008-2012. Program for Soil Erosion and Sediment help implement recommendations of a [Sec. 2604] Control, and provides $5 million collaborative restoration strategy, giving annually through FY2007. [16 U.S.C. priority to certain projects. [Sec. 2395]. 3839bb-3] Sec. 524(b)(1) of the Federal Crop Adds Hawaii and Virginia to the list of Reauthorizes the program through Adopts House provision with changes to Insurance Act authorizes an Agricultural eligible states. Allocates 50% of funds to FY2012; adds Idaho to the list of eligible include Hawaii as an eligible State. Management Assistance (AMA) program USDA's NRCS; 10% to Agricultural states. [Sec. 2601] Provides an additional $25million in for listed states that have historic low Marketing Service (for organic mandatory funding (FY2008-2012). participation rates in the Federal Crop certification assistance); and 40% to the [Sec. 2801] Insurance Program. [7 U.S.C. 1524(b)] Risk Management Agency. [Sec. 2201] Secs. 1528-1537 of the 1981 farm bill Amends RC&D program to provide a Similar to House provision, clarifying Adopts Senate provision. [Sec. 2805] (Agriculture and Food Act of 1981, P.L. designated coordinator to assist each that an area plan must be developed 108-7) authorizes the Resource approved area. Eliminates requirement through a locally led process, and that the Conservation and Development Program to submit a program evaluation to the planning process, and that the planning (RC&D) to develop and implement a House and Senate Agriculture process must be conducted by a local regional plan to address conservation, Committees before June 30, 2005. council. Provides for a coordinator to water/land management, or community [Sec. 2202] improve technical assistance to councils, development. [16 U.S.C. 1528-1527] as designated by USDA. [Sec. 2605] Sec. 14(h) of the Watershed Protection Authorizes $50 million annually in Authorizes such sums as necessary in Adopts House provision and provides and Flood Prevention Act (P.L. 106-472) mandatory funding (FY2009-12); discretionary funding annually (FY2008- $100 million in mandatory funding for authorizes discretionary and mandatory extends FY2007 discretionary funding 12). [Sec. 2604] FY2009 to remain available until funding for a Small Watershed level through FY2012. [Sec. 2203] expended. [Sec. 2803] Rehabilitation Program. [16 U.S.C. 1012] The 2002 farm bill amended Sec. Annual funding for regional equity is Annual funding for regional equity is Adopts Senate provision with changes. 1241(d) of the FSA to authorize a raised to at least $15 million [Sec. 2404] raised to at least $15 million, and crop [Sec. 2703] program to promote regional equity, insurance payments are added to this giving each state a total of at least $12 calculation. Directs USDA to update million annually from certain mandatory state allocation formulas. [Sec. 2402] programs. [16 U.S.C. 3841d] CRS-94 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The 2002 farm bill amended Sec. 1242 of Expands use of third party providers Expands use of third party providers Adopts Senate provision with changes the FSA to authorize delivery of using contracts. Specifies providers using contracts. Directs USDA to regarding the delivery of technical technical assistance directly or using a should get at least prevailing market develop national certification criteria and assistance. [Sec. 2706] third party provider and specifies how rates, calls for a review/update of all approve established state standards. providers are to be approved by USDA. technical assistance specifications, Provides funding through each Authorizes cooperative agreements with including the needs of specialty crop conservation program, specifies non-federal entities to provide technical producers. [Sec. 2402] minimum and maximum contract terms, assistance. [16 U.S.C. 3842] among other considerations. Includes similar provisions for specialty crop producers as the House bill. [Sec. 2404] The 2002 farm bill amended Sec. 1244(a) Expands access to program incentives to Requires USDA to develop a streamlined Adopts House provision with changes to of the FSA to authorize USDA to provide include socially disadvantaged and application process for conservation include certain acreage limitations and incentives to beginning farmers/ranchers limited resource farmers and ranchers. programs. Provides for Safe Harbor exemptions, and also a pollinator and Indian tribes to participate in Requires USDA to develop a streamlined assurances to the landowner under the protection provision. Requires USDA conservation programs. [16 U.S.C. application process. [Sec. 2405] Endangered Species Act. Allows report to Congress on the completion of 3844(a)] producers to apply for programs through the requirements not later than 1 year a producer organization. [Sec. 2405] after enactment. [Sec. 2708] The 1990 farm bill amended Sec. 1261 Specifies STC have at least 12 producers Adds non-industrial private forest land Adopts House provision with changes to of the FSA to authorize state technical representing agriculture. Removes owners to the list of groups represented require USDA to develop standard committees (STC), including members requirement for persons knowledgeable on the STC. Requires USDA to develop committee operating procedures, updates and interests to be represented, outlining about conservation. Adds new provisions standard operating procedures to be used the names of participating agencies, and duties, and specifying that committees creating subcommittees issue areas. by the State technical committee in the deletes the requirement for establishing are advisory with no implementation or Describes responsibilities in more general development of technical guidelines for specific issue-area subcommittees. enforcement authority. [16 U.S.C. 3861- terms. [Sec. 2408] the implementation of the conservation Requires that public notice be given for 3862] provisions of this title. Makes local work meetings of the State technical committee groups subcommittees of the State and adds local working groups as technical committee. [Sec. 2501] subcommittees. Deletes the requirement for establishing specific issue-area subcommittees. [Sec. 2711] The 1996 farm bill amended Sec. 351 of No comparable provision. Amends numerous provisions authorizing Deletes Senate provision. the FSA to authorize a National Natural the Foundation. [Sec. 2606] Resources Conservation Foundation to raise private funds that will be used to promote conservation. Program has never been implemented. [16 U.S.C. 5801-5809] CRS-95 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The 2002 farm bill amended Sec. 2507 of No comparable provision. Amends the desert terminal lakes Adopts Senate provision with changes. the FSA to authorize USDA to transfer provision to allow funds to be used to Provides $175 million in mandatory $200 million of CCC funds to the Bureau lease water or to purchase land and funding. [Sec. 2807] of Reclamation for water to at-risk related interests in the Walker River natural desert terminal lakes. [43 U.S.C. Basin. [2607] 2211note] New Conservation Programs No comparable provision. Authorizes a new Chesapeake Bay No comparable provision. Adopts House provision with changes. Program for Nutrient Reduction and Renames program Chesapeake Bay Sediment Control to carry out restoration, (Note: The Chesapeake Bay program is Watershed Program. Applies to all enhancement, and preservation projects. authorized as a part of EQIP.) tributaries, backwaters, and side Identifies four specified watersheds. The channels, including watersheds, draining non-federal cost share for each project into the Chesapeake Bay, but gives will be at least 35%, but will not exceed priority to the Susquehanna, Shenandoah, $5 million. Sets mandatory funding at Potomac, and Patuxent Rivers. Provides $10 million (FY2008), rising to $55 mandatory funds of $23 million million (FY2012). [Sec. 2301] (FY2009); $43 million (FY2010); $72 million (FY2011); and $50 million (FY2012). [Sec. 2605] No comparable provision. The so-called "Open Fields" provision Similar to the House bill, and includes a Adopts Senate provision with an authorizes state grants through a new priority to States where the location of amendment, providing $50 million in Voluntary Public Access and Habitat participating lands would be available to mandatory funds for the period FY2009- Incentive Program to encourage land- the public and provides $20 million per 2012. Includes a 25% reduction for the owners to provide public access for year in mandatory funding annually total grant amount if the opening dates wildlife-dependent recreation. Sets (FY2008-2012). [Sec. 2399 and Sec. for migratory bird hunting in the State application contents and award priorities. 2401(a)(9)] are not consistent for residents and Authorizes discretionary funding of $20 non-residents. [Sec. 2606] million annually through FY2012. [Sec. 2303] No comparable provision. No comparable provision. Creates a new Conservation Access Adopts Senate provision with changes. program, requiring 10% of the funds (or Provides that 5% of CSP acres and 5% of acres in the cases of WRP and CRP) be EQIP funds be used to assist beginning used to assist beginning and socially farmers or ranchers, and an additional 5% disadvantaged farmers and ranchers with of each to assist socially disadvantaged annual gross sales of $15,000 or more. farmers or ranchers. [Sec. 2704] [Sec. 2403] CRS-96 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. Authorizes a new Muck Soils Conser- No comparable provision. Deletes provision. vation Program for eligible land, defined by five characteristics. Authorizes appropriations of $50 million annually through FY2012, with payments between $300-$500 per acre. [Sec. 2303] No comparable provision. Authorizes new payment limits, deleting No comparable provision. Deletes provision. Places payment limits existing conservation payment limit within each section of the bill and deletes (Note: The 2002 farm bill limited CRP language. Limits annual payments to this section. payments to $50,000 per year, set $60,000 for any single program; limits payment limits for each of 3 tiers in the total payments to $125,000 under all CSP, and limited EQIP payments to conservation (except WRP, FRPP, GRP). $450,000 for all contracts in any 6-year Defines how payments should be period. [16 U.S.C. 3834, 3838c, and attributed to individuals. [Sec. 2409] 3839aa-7] No comparable provision. Requires USDA to submit an annual No comparable provision. Deletes provision. The managers report report on specialty crop producer states it has modified the compliance and participation in conservation programs, performance provisions of Section 1244 including how to improve producer of FSA to accommodate the intent of the program access. [Sec. 2406] House bill. No comparable provision. Authorizes a new provision to develop Authorizes a new provision to develop Adopts House provision with changes. agriculture and forestry based agriculture and forestry based Directs USDA to work in consultation environmental services to promote environmental service markets, giving with other federal and state government market-based conservation. Specifies use priority to developing carbon storage. agencies, nongovernmental interests and of USDA-funded research, contracts, and Directs USDA to use a collaborative other interested persons, as determined award grants. Establishes a USDA-led process with specified government and by USDA, to establish technical guide- Environmental Services Standards Board non-government interests to develop a lines for measuring environmental of senior federal officials to facilitate the framework and identifies relevant services and to establish a verification development of credit markets and framework components (quantification, process (allowing for consideration of disseminate performance standards to accounting, and verification). Requires third party verifiers). Directs USDA to federal agencies. Authorizes $50 million three reports to Congress. Authorizes focus initially on carbon markets. Does in discretionary funding, with discretionary funding of "such sums as not authorize funds, expecting USDA to appropriated amounts to remain available are necessary." [Sec. 2406] use available resources. [Sec. 2709] until spent. [Sec. 2407] No comparable provision. Adds income from affiliated packing and No comparable provision. Deletes provision. handling operations to definition of farm income when calculating adjusted gross CRS-97 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) income limitation to determine eligibility for conservation programs. [Sec. 2501] No comparable provision. Allows USDA to encourage development No comparable provision. Deletes provision. of voluntary sustainable practices for specialty crops. [Sec. 2502] No comparable provision. Requires USDA to develop information No comparable provision. Deletes provision. on the importance of productive farmland and designate at least one farmland information center to distribute this and related information. Specifies federal matching funds of at least $400,000 (not exceeding 0.5% of the amount provided to implement the FRPP). [Sec. 2503] No comparable provision. Requires USDA to contract with a peanut Similar to House provision, but provided Adopts Senate provision. [Sec. 2301] producer for a 4 year crop rotation; within CSP, directing USDA to provide authorizes appropriations up to $10 additional payments to producers who million annually (FY2008-FY2012). agree to adopt resource-conserving crop [Sec. 2504] rotations to achieve optimal crop rotations. [Sec. 2341] No comparable provision. See Section 2103 on the Conservation Authorizes a new Comprehensive Deletes Senate provision. Renames CSP Security Program (described above), for Stewardship Incentives Program to the Conservation Stewardship Program. (Note: See the Conservation Security some related changes. For example, the coordinate administration of a new [Sec. 2301] Program, above, in existing programs.) House bill defines "priority resources of Conservation Stewardship Program (see concern;" however, the House bill does above) and EQIP. Addresses defined not create a new program. resource concerns, meets regulatory demands, encourages conservation, and promotes conservation and production as compatible goals. [Sec. 2341] No comparable provision. No comparable provision. Authorizes a Discovery Watershed Deletes provision. Demonstration Program to reduce loss of nutrients into surface waters in 30 small watersheds in the Upper Mississippi River basin. Authorizes discretionary funds as are necessary. [Sec. 2397] CRS-98 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. Authorizes an Emergency Landscape Deletes provision. Restoration Program to repair landscapes damaged by natural events. Replaces two others emergency conservation and watershed programs. [Sec. 2398] No comparable provision. No comparable provision. Directs USDA to assist producers who Deletes provision. Places payment limits apply for programs indirectly through within each section of the bill and deletes certain organizations, if this will increase this section. participation and program benefits; payment limits apply to each producer, not the organization. [Sec. 2405] No comparable provision. No comparable provision. Authorizes a new Agriculture Adopts Senate provision, but limits Conservation Experienced Service individuals employed under this authority Program, such that USDA can enter into to providing only technical assistance agreements with organizations to provide (excluding administrative tasks). technical assistance using qualified [Sec. 2710] individuals 55 years or older. [Sec. 2602] No comparable provision. No comparable provision. Amends the Soil Conservation and Adopts Senate provision. [Sec. 2802] Domestic Allotment Act of 1935 by providing definitions and creates new technical assistance provisions. Reauthorizes the Soil and Water Resources Conservation Act of 1977 through 2028; requires a national appraisal of soil, water and related resources to be issued every 10 years. [Sec. 2603] No comparable provision. The "sodsaver" provision noncropland Makes native sods planted to an insurable Makes native sods planted to an insurable (including native grassland and crop (over 5 acres) ineligible for crop crop (over 5 acres) ineligible for crop pastureland) planted to an insurable crop insurance and the noninsured crop insurance and the noninsured crop ineligible for crop insurance for the first disaster assistance program. Directs disaster assistance program for the first 5 4 years of planting. [Sec. 11007] USDA to report within 180 days of years of planting. May apply to virgin enactment, and annually thereafter, on prairie converted to cropland in the changes in cropland acreage, by county, Prairie Pothole National Priority Area, if since 1995. [Sec. 2608] elected by the state. [Sec. 12020] CRS-99 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. Requires that no producers in Texas lose Adopts Senate provision. [Sec. 2901] program benefits as a result of participating in a study of the Ogallala Aquifer's recharge potential. [Sec. 2609] No comparable provision. No comparable provision. Amends the Federal Insecticide, Adopts the Senate provision on payment Fungicide, and Rodenticide Act (FIFRA) of expenses. [Sec. 14209] Deletes Senate [7 U.S.C. 136o(d)] to require the State provision making technical corrections to Department to pay expenses incurred by pesticide registration, but includes a EPA employees associated with certain container recycling provision. international activities. [Sec. 2610] [Sec. 14109] Amends Sec. 33 of FIFRA [7 U.S.C. 136w-8] to allow the EPA Administrator to waive a portion of the pesticide registration service fee under certain circumstances. [Sec. 2612] Sec. 202(a) of the Colorado River No comparable provision. Amends the act to create a basin states Adopts Senate provision. The Mangers Salinity Control Act of 1974 authorizes program implementing specified salinity report states this provision to be fiscally DOI to construct, operate, and maintain control activities. Requires DOI to neutral both as to appropriations and as to the specific salinity control units as the consult with the Colorado River Basin draws on the basin funds. States there initial stage of the Colorado River Salinity Control Advisory Council related are no changes to the cost share ratios Basin salinity control program. [43 to assistance in the form of grants, grant already established in the act; the U.S.C. 1592(a)] commitments, or the advancement of percentage split between the two funds; funds to federal or non-federal entities. or the 15% cap requirement on the basin Requires a planning report to Congress states cost share derived from the Upper describing the proposed program Colorado River Basin Fund. [Sec. 2806] implementation; stipulates that no funds may be expended until 30 days after the report is submitted. [Sec. 2611] No comparable provision. No comparable provision. No comparable provision. Authorizes USDA to accept contributions to support conservation programs to establish a sub-account for each USDA conservation program to accept contri- butions of non-Federal funds. Provides that contributions of non- Federal funds received for a conservation program be deposited and shall be available to USDA, without further appropriation and until expended. [Sec. 2702] CRS-100 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. No comparable provision. Direct USDA to submit to Congress an annual report regarding enrollments and assistance under conservation programs, including (1) WRP, FPP, and GRP payments valued at $250,000 or greater; (2) EQIP payments for land determined to have special environmental signifi- cance; and (3) AWEP payments subject to the waiver of adjusted gross income limitations. Allows for waivers granted by USDA to protect environmentally sensitive land of special significance. [Sec. 2705] No comparable provision. No comparable provision. No comparable provision. Amends the Soil and Water Resources Conservation Act of 1977 to require USDA to conduct two comprehensive appraisals and inventory of soil, water, and related natural resource conservation (completed by year-end 2010 and 2015). Requires a report in early 2012 on the types of improvements to appraisals and programs. [Sec. 2804] No comparable provision. No comparable provision. No comparable provision. Other miscellaneous provisions: -- Names the National Plant Materials Center at Beltsville, MD, in honor of Norman A. Berg. [Sec. 2902] -- Directs USDA, in consultation with the CCC, to promulgate regulations not later than 90 days after the date of enactment, necessary to implement title II. [Sec. 2904] TITLE III: AGRICULTURAL TRADE AND AID P.L. 480 Food Aid The Agricultural Trade Development and No comparable provision. Renames the law the "Food for Peace Adopts Senate provisions. Assistance Act of 1954 [7 U.S.C. 1691a], Act." Deletes language making [Secs. 3001-3003] as amended, authorizes the use of U.S. expansion of U.S. agricultural exports an CRS-101 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) agricultural commodities and local objective of the program. Replaces the currencies to combat world hunger and Sense of Congress with language stating malnutrition; promote sustainable that, in negotiations, the President shall development; expand international trade; seek higher levels of food aid to meet develop and expand markets for U.S. legitimate needs of developing countries; agricultural exports; foster development ensure that nongovernmental of private enterprise and democratic organizations, recipient governments, and participation in developing countries; and international organizations continue to be prevent conflicts. Declares the Sense of eligible to receive food aid resources and Congress that the President should to implement programs; and options for initiate consultations with other food aid providing food aid shall not be subject to donors to consider appropriate food aid limitation with respect to in-kind levels to meet needs of developing commodities, funds for commodity countries, and that the U.S. should procurement, and monetization, under increase its food aid contribution. certain conditions. [Secs. 3001-3003] Trade and Development Assistance (P.L. Makes no changes in P.L. 480 Title I. Renames Title I "Economic Assistance Adopts Senate provision. 480 Title I) provides for concessional and Food Security." [Sec. 3004] Makes [Sec. 3004] financing , i.e., long-term, low-interest improving trade capacity of the recipient loans to developing countries to purchase country an activity that can be supported U.S. agricultural commodities. [7 U.S.C. by local currency payments for P.L. 480 1701] Title I loans. Emergency and Private Assistance Reauthorizes through FY2012, with Reauthorizes through FY2012, with Reauthorizes through FY2012, with Programs (P.L. 480 Title II) provide U.S. changes as outlined below. changes as outlined below. changes as outlined below. agricultural commodities for emergency and nonemergency assistance. Provides that private voluntary Provides that not less than 7% and not Provides not less than 7.5% of total funds Provides that the share of Title funds that organizations and cooperatives that carry more than 12% of funds available for be available from all sources to support can be used for administrative and out Title II programs may receive not less Title II for support of eligible eligible organizations. Inserts language distribution expenses will be from 7.5% than 5% nor more than 10% of available organizations. Funds may also be used on "meeting specific administrative, to 13%. [Sec. 3008] funds (for establishing new programs or for "developing, implementing and management, personnel, programmatic, meeting other administrative directives). improving monitoring systems of and operational activities, and internal [7 U.S.C. 1722(e)(1)] program receiving funds" under Title II. transportation and distribution costs" for [Secs. 3001(b)(1)and (b)(4)] new and existing programs in foreign countries. [Sec. 3008(2)(A)(ii)] No comparable provision. No comparable provision. Authorizes the USAID Administrator to Authorizes $4.5 million for fiscal years use funds to assess the types and quality 2009-2011 to be used to study and of agricultural commodities used for food improve food aid quality. [Sec. 3008] CRS-102 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) aid, and to adust products and formulations to meet nutrient needs of target populations. [Sec. 3008 (3)(h)] Provisions regarding Private Voluntary No comparable provision. Provides for the inclusion of activities Maintains monetization uses as Organizations (PVOs) and cooperatives involving micro-enterprise and village prescribed in 7 U.S.C.1723. [Sec. 3009] allow for the sale or barter of Title II banking as an authorized use of Title II commodities by PVOs and coops. Sec. monetization (sales) proceeds. 203 allows for the monetization (sale) of [Sec. 3009] not less than 15% of the total of all commodities distributed each fiscal year under non-emergency programs. Proceeds can be used for certain specified purposes. [7 U.S.C. 1723] USDA make 2.5 mmt of commodities Extends authorized levels of assistance Similar to the House bill. [Sec. 3010] Adopts House bill. [Sec. 3010] available annually through FY2007. Of through FY2012. [Sec. 3001(d)] that amount, a minimum of 1.875 mmt of commodities is available for non- emergency programs annually through FY2007 (and may be waived under certain circumstances only). [7 U.S.C. 1724] The Food Aid Consultative Group (FAC) Extends FAC through FY2012 and Extends FAC through FY2012. Adds Extends the FAC through FY2012 and is composed of the Administrator of requires USAID, in close consultation representatives of the maritime requires that a representative of the USAID, the Secretary of Agriculture, and with the FAC, to submit a report to transportation sector involved in overseas maritime transportation sector be representatives of PVOs, coops, certain congressional committees on shipping of commodities to the member included in the Group. [Sec. 3011] indigenous NGOs in recipient countries, efforts to achieve an integrated and list. Requires biannual consultations and U.S. producer groups, who review effective food assistance program. [Sec. between USAID and the FAC, and overall program effectiveness. 3001(f)] requires FAC consultations on issuing [7 U.S.C. 1725] draft regulations. [Sec. 3011] Title II program administration provides Provides for program oversight, Adds language allowing for payment to Adopts the House language to require for various administrative procedures monitoring, and evaluation, and requires the World Food Program for indirect specific oversight, monitoring and including identification of developing that systems be established to accomplish support costs of donated commodities, assessment activities and provides up to country recipients, deadlines for USAID these tasks. Requires an implementation along with a report to the relevant $22 million of Title II funds for acceptance (or rejection) of a proposal, report be prepared, to be reviewed by congressional committees on such monitoring and assessment activities for specifying reasons for denial of GAO, along with annual reporting. payments. Clarifies the authority to pay non-emergency programs. No more than proposals, issuance of regulations, and Authorizes appropriations up to $15 indirect costs associated with funds $8 million of these funds may be used for deadlines for submission of commodity million of funds be made available received or generated for programs to the Famine Early Warning System CRS-103 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) orders. Requires the Administrator to annually (FY2008-12). Requires PVOs and coops, and requires that Network. Provides $2.5 million (of the report by December 1 each year to procedures be developed for providing project reports be submitted in a form $22 million) to upgrade information relevant committees on program, commodities overseas in a timely manner that can be readily displayed for public technology systems in FY2009 to countries, and commodities approved to and according to delivery schedules. use on the USAID website. [Sec. 3012] enhance monitoring of Title II non- date and on the total amount of funds Changes the date of the required program emergency programs. [Sec. 3012] approved for transportation and reports, among other changes. administrative costs. [7 U.S.C. 1726a] [Sec. 3001 (g)] Provisions on assistance for stockpiling Reauthorizes program and increases Reauthorizes program and increases Adopts Senate provision, increasing the and rapid transportation, delivery, and appropriations authority from $3 million appropriations authority from $3 million level that can be appropriated to assist in distribution of shelf-stable prepackaged to $7 million annually for FY2008-12. to $8 million annually (FY2008-12). developing shelf-stable, pre-packaged foods. Authorizes appropriated grants at [Sec. 3001(h)] [Sec. 3013] foods for food aid programs to $8 million $3 million annually. [7 U.S.C. 1726b] annually. [Sec. 3013] No comparable provision. Authorizes to be appropriated not less Establishes a pilot program for local and Establishes a pilot program for local and than $40 million to carry out Sec. 491 of regional purchase of commodities for regional purchase of commodities for the Foreign Assistance Act of 1961 (22 emergency food aid. Authorizes famine prevention to be conducted by U.S.C.2292) to provide for famine appropriations of $25 million annually USDA with $60 million in mandatory prevention and relief. [Sec. 3016] for FY2009-12. [Sec. 3014] funding (FY2009-2012). [Sec. 3206] Provisions on commodity determinations No comparable provision. Strikes the requirement that a USDA Adopts Senate provision. [Sec. 3014] [7 U.S.C. 1731] establish criteria for determination of domestic supply needs eligibility of commodities for disposition. be made before a commodity is available for food aid. [Sec. 3015] Provisions on the use of the CCC lists the No comparable provision. Adds costs incurred to improve food aid Adopts Senate provision. [Sec. 3016] expenses that may be covered by the quality to the list of expenses that can be CCC in carrying out food aid programs. covered by CCC through advanced [7 U.S.C. 1736] appropriations acts. [Sec. 3016] Provisions regarding prepositioning Extends authorization for prepositioning Extends authorization for prepositioning Adopts Senate provision, but increases authorize USAID to use Title II (and through FY2012. Increases the limit that through FY2012. Increases cap on funds funding to $10 million and adds House Title III) funds to procure transport, and may be used to preposition commodities available for prepositioning from $2 language on studying additional store commodities for prepositioning from $2 million to $8 million. Authorizes million to $4 million, among other prepositioning sites. [Sec. 3017 and Sec. (limited to $2 million). [7 U.S.C. assessment and possible establishment of requirements for non-emergency 3018(a)] 18736(c)] additional prepositioning sites. [Sec. assistance agreements. [Sec. 3017(1)] 3001 (I)] Annual reporting requirements specify Changes the annual report submission Changes the date of report submission The conference report consolidates a that an annual report on P.L. 480 food aid date from January 15 to March 1. from January 15 to April 1 each year, and number of reporting requirements and programs be submitted by January 15 of Requires an assessment on the progress requires its distribution to the public by date changes from both House and CRS-104 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) each year to the relevant congressional to reduce food insecurity in countries electronic and other means. Senate bills. [Sec. 3018] committees. receiving U.S. assistance. [Sec. 3001(j)] [Sec. 3017(2)] Authority to enter into new P.L. 480 Extends the authority to enter into P.L. Similar to the House bill. [Sec. 3018] Adopts House provision. [Sec. 3020] agreements provided through December 480 agreements to December 31, 2012. 31, 2007. [Sec. 408, 7 U.S.C. 1736b] [Sec. 3001(k)] Authorizes to be appropriated such sums Authorizes appropriations of such sums Reauthorizes discretionary appropriations Adopts House provision. [Sec. 3020] as may be necessary to carry out P.L. 480 as may be necessary for Title I and III for P.L. 480 programs and strikes food aid programs. [7 U.S.C. 1736f] programs, and appropriations of $2.5 authority to transfer funds between P.L. billion for Title II emergency and non- 480 Titles. [Sec. 3019] emergency programs. [Sec. 3001(l)] No comparable provision. Requires that non-emergency food Provides that not less than $600 million Specifies funds for non-emergency food assistance of not less than $450 million be available annually for FY2008-12 to aid: $375 million (FY2009), $400 million be available for non-emergency for Title II non-emergency programs. (FY2010), $425 million (FY2011), and programs. [Sec. 3013] [Sec. 3019(b)] $450 million (FY2012). Authority can be waived only if the President determines that an extraordinary food emergency exists, that resources from the Bill Emerson Trust have been exhausted, and the President has submitted a request for additional appropriations to Congress needed. [Sec. 3022] The Micronutrient Fortification Program Extends authorization for the program Reauthorizes the program through Adopts Senate provision. establishes a micro-nutrient fortification through December 31, 2012, and amends December 31, 2012. Adds new authority [Sec. 3023] program in food aid recipient countries purposes. [Sec. 3001(m)] to improve food quality, safety, and other through year-end 2007. [7 U.S.C. 1736g- aspects. Eliminates limitation to five 2] countries. [Sec. 3020] The John Ogonowski and Doug Berueter Provides minimum program funding of Extends program through 2012. Farmer-to-Farmer Program authorizes $10 million. Authorizes appropriations [Sec. 3022]Adopts House provision. voluntary technical assistance to raise of $10 million to carry out the program in [Sec. 3024] farm production/incomes in developing Sub-Saharan African and Caribbean and middle income countries, emerging Basin countries, and $5 million for all markets, and in Sub-Saharan Africa and other countries. [Sec. 3001(n)] the Caribbean Basin. [7 U.S.C. 1737] CRS-105 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Other Food Aid Programs The Food for Progress Act provides Extends program through 2012. Extends program through 2012. Raises Adopts House provision and requires the commodities to support countries that [Sec. 3004] the cap on coverage of costs of USDA to establish a project in Malawi have made commitments to expand free transporting commodities to $48 million under this program. [Sec. 3105] enterprise in their agricultural economies. annually (FY2009-10). [Sec. 3106] [7 U.S.C. 1736o] The McGovern-Dole International Food Extends program through 2012. Extends program through 2012. Adopts Senate provision, except that it for Education and Child Nutrition Authorizes USDA to carry out the [Sec. 3107] provides $84 million in mandatory funds Program makes available U.S. program, providing mandatory (CCC) for this program for FY2009, to be agricultural commodities, financial and funding as follows: $0 (FY2008); $140 available until expended. [Sec. 3106] technical assistance to carry out food for million (FY2009); $170 million education and child nutrition programs in (FY2010); $230 million (FY2011); $300 foreign countries. Authorizes CCC million (FY2012); and $0 (FY2013). funding of $100 million in FY2003 and [Sec. 3005] such sums as may be necessary in FY2004-07. [7 U.S.C. 1736o-1] The Bill Emerson Humanitarian Trust Reauthorizes through 2012. [Sec. 3006] Reauthorizes through 2012 [Sec. Adopts Senate provision with the establishes a reserve of up to 4 million 3201(6)], with some changes including following modifications: removes the 4 metric tons (mmt) of wheat, rice, corn (1) provides that the Trust can be held as million metric ton cap; does not allow for and sorghum to meet emergency food a combination of cash and commodities the exchange of funds available under needs in developing countries when there (not to exceed 4 mmt.) [Sec. 3201(1)]; Title II or the McGovern-Dole program; are unanticipated needs or when U.S. (2) allows the commodities in the Trust and does not require the transfer of domestic supplies are short. The Trust to be exchanged for funds available foregone storage charges into the Trust. can also hold cash. [7 U.S.C. 1736f-1 under Title II or the McGovern-Dole [Sec. 3201] note] Program, or for sale in the market (in some cases) [Sec. 3201(2)]; (3) allows the funds in the Trust to be invested in low-risk short-term securities or instruments; and (4) lists the rules for the release of commodities or funds from the Trust; defines emergency in cases of release [Sec. 3201(3), (4)]. Export Programs Export Credit Guarantees provide for the Repeals the supplier credit guarantee Similar to the House bill; also clarifies Adopts Senate provision, but in lieu of repayment of credit made available to program and the intermediate credit how USDA should evaluate the reducing the term for short-term (GSM- finance commercial sales of U.S. guarantee program. Lifts the 1% creditworthiness of participating 102) guarantees beginning in FY2012, it CRS-106 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) agricultural commodities. [7 U.S.C. origination fee cap. Reduces the term of countries. Reduces the minimum volume includes a $40 million annual cap on the 5622] short term credit guarantees to six of guarantees annually from $5.5 billion credit subsidy for the program, and months starting in FY2008. [Sec. 3002] to $5 billion. [Sec. 3101] requires the CCC to make available each year guarantees not more than the lesser of $5.5 billion or the sum of guarantees supported by $40 million in budget authority plus the amount of guarantees that the CCC can make available from unobligated prior fiscal year balances. [Sec. 3101] The Market Access Program (MAP) Makes organic agricultural commodities Makes organic agricultural products Adopts Senate provision, but maintains provides for CCC funding of export eligible for MAP promotions. Increases eligible for CCC funds. Increases funding at the level of $200 million market development for U.S. agricultural annual MAP funding from $200 million funding above baseline level of $200 annually. [Sec. 3102] commodities by eligible trade organiza- (FY2007) to $225 million (FY2008-12). million by raising it $10 million annually tions. Authorizes CCC funding of $200 [Sec. 3003] until FY2011, with $200 million for million annually. [7 U.S.C. 5623] FY2012. [Sec. 3102]. Technical Assistance for Specialty Crops Extends authority for CCC funding of Extends authority to use CCC funds for Adopts House provision with annual (TASC) authorizes USDA to address TASC through FY2012. Increases TASC through FY20012 and increases funding ramped up to $9 million in barriers prohibiting or threatening funding from $2 million annually to $4 funding by $19 million over the baseline FY2011 and FY2012. [Sec. 3203] exports of U.S. specialty crops. million in FY2008, and rising to $10 level. [Sec. 1835] Authorizes CCC funds of $2 million million in FY2011-12. [Sec. 3007] annually (FY2002-07). [7 U.S.C. 5680] No comparable provision. Authorizes USDA to enhance U.S. No comparable provision. Deletes House provision. participation in international standard- setting bodies (e.g., Codex Alimentarius Commission; International Plant Protection Convention; and the World Animal Health Organization). Authorizes appropriations as necessary for FY2007-12. [Sec. 3009] Foreign Market Development Cooperator Extends through FY2012. [Sec. Adopts House provision. [Sec. 3104] Program (FMDP) requires USDA to 3010]Increases mandatory funding for establish and carry out a program to FMDP from its current annual level of maintain and develop foreign markets for $34.5 million for FY2007 by $5 million U.S. agricultural commodities and annually for FY2008-09, by $10 million products. [7 U.S.C. 5721] in FY2010. Reverts to baseline levels in 2011 and thereafter. CRS-107 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The Emerging Markets Program (EMP) Reauthorizes through FY2012. Reauthorizes through FY2012. Adopts Senate provision. [Sec. 3201] [7 U.S.C. 5622 note] promotes U.S. [Sec. 3011] [Sec. 3202 (1)] Permits waiving the agricultural exports in emerging markets. requirement that U.S. goods be used in Authorizes direct credits or export credit the construction of a facility, if such guarantees of not less that $1 billion for goods are not available or their use is not exports to emerging markets. Requires a practicable. Provides for a guarantee that portion of export credit guarantees be the term of the depreciation schedule for made available to establish or improve the facility will not exceed 20 years. facilities and services for U.S. products. [Sec. 3202(2)] The Export Enhancement Program (EEP) Extends through FY2012. [Sec. 3012] Repeals authority for EEP. [Sec. 3103] Adopts Senate provision. [Sec. 3103] (Section 301, Agricultural Trade Act of 1978) authorizes the CCC to encourage the sale of U.S. agricultural exports in world markets at competitive prices. The CCC may pay a bonus to exporters in markets where the competition is subsidized. [7 U.S.C. 5651] Other Trade Provisions No comparable provision. Requires USAID to contribute to the Similar to the House bill. [Sec. 3021] Adopts House provision. [Sec. 3202] Global Crop Diversity Trust for germ plasm conservation (up to $60 million over 5 years, but may not exceed one- fourth of the total of funds contributed to the Trust from all sources). [Sec. 3014] No comparable provision. Directs USAID and USDA to submit a No comparable provision. Adopts House provision. [Sec. 3022] report on efforts to improve planning for food and transportation procurement, including efforts to eliminate bunching of food purchases. [Sec. 3015] No comparable provision. No comparable provision. Requires USDA, in cooperation with the Adopts Senate provision, modified to Depart. of Labor, to develop standards to establish a consultative group of certify that U.S. agricultural importers interested stakeholders changed with were not produced with the use of developing recommendations and abusive forms of child labor. [Sec. 3104] guidelines for monitoring and verifying whether food products were made with child labor. [Sec. 3104] CRS-108 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The Biotechnology and Agricultural No comparable provision Extends authority through FY2012. Deletes provision. Trade Program [7 U.S.C. 5679] provides [Sec. 3203] for a biotechnology and agricultural trade program to remove, resolve, or mitigate nontariff barriers on U.S. agricultural commodities produced through biotechnology. Authorizes appropriations of $6 million annually (FY2002-07). No comparable provision. Authorizes USDA to provide technical Similar to the House bill. [Sec. 3204] Deletes House and Senate provision. assistance to limited resource persons that are involved in trade disputes. Authorizes appropriations as necessary. [Sec. 3008] No comparable provision. No comparable provision Requires the Secretary of Health and Deletes Senate provision. Human Services to report to Congress on the importation and use of high protein food ingredients. [Sec. 3206] Provision Regarding U.S.-Canada Softwood Lumber Agreement -- see section on Forestry Programs (below) TITLE IV: NUTRITION Reauthorization Authorities in the Food Stamp Act and Extends all expired authorities in the Extends all significant expired authorities With some exceptions, extends expired other laws covered by the nutrition title Food Stamp Act and other laws covered in the (renamed) Food Stamp Act and authorities in the (renamed) Food Stamp generally expired in FY2007. [7 U.S.C. by the nutrition title through FY2012. other laws covered by the nutrition title Act and other laws covered by the 612c note, 1431e(2), 2020(t), 2025(h), [Sec. 4016, 4019-4021, 4025, 4027, indefinitely, with the exception of nutrition title through FY2012. Includes 2025(k), 2026(b), 2028(a), 2034, 2036, 4028, 4201, 4202, 4203] Policy funding for community food projects those governing required funding or 3007(a), 3171 note, 7508(a)] amendments made in the House bill (extended through FY2012). [Sec. 4110, appropriations authorizations for the generally are part of permanent law. 4701, 4801-4803] Policy amendments Food Stamp program (including grants generally terminate with FY2012. for simplified application projects), nutrition assistance block grants for Puerto Rico and American Samoa, The Emergency Food Assistance Program (TEFAP), the Food Distribution Program on Indian Reservations (FDPIR), the Commodity Supplemental Food Program (CSFP), and the Senior Farmers' Market Nutrition Program (SFMNP). Extends CRS-109 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) other expired authorities indefinitely: community food project grants, authority to reduce federal payments for state food stamp administrative costs, cash-payment food stamp pilot projects, and grants for employment/training programs for food stamp recipients. [Sec. 4406] Policy amendments generally are part of permanent law, as in the House bill. Food Stamp Program The Food Stamp program is established Renames the Food Stamp program: the Renames the Food Stamp program: the Renames the Food Stamp program the under the Food Stamp Act. [7 U.S.C. "Secure Supplemental Nutrition Assis- "Food and Nutrition Program." Renames Supplemental Nutrition Assistance 2011 et seq] tance Program" (SSNAP). [Sec. 4001] the Food Stamp Act: "The Food and Program (SNAP). Renames the Food Nutrition Act." [Sec. 4001] Stamp Act "The Food and Nutrition Act." [Sec. 4001] Sec. 5(e)(1) of the Food Stamp Act Increases the minimum standard Increases the minimum standard Increases the minimum standard specifies that when determining benefits deduction to $145 per month, annually deduction to $140 per month, annually deduction to $144 per month in FY2009, and, in some cases, judging income indexed to inflation beginning with indexed to inflation beginning with annually indexed to inflation beginning eligibility, a standard portion of house- FY2009. Provides comparable increases FY2009. Provides comparable increases with FY2010. Provides comparable holds' monthly income be disregarded for Alaska, Hawaii, the Virgin Islands, for Alaska, Hawaii, the Virgin Islands, increases for Alaska, Hawaii, the Virgin (deducted), as a "standard deduction." and Guam. [Sec. 4006] and Guam. [Sec. 4102] Islands, and Guam. [Sec. 4102] The minimum standard deduction is $134 per month per household (with differing amounts for Alaska, Hawaii, the Virgin Islands, and Guam). [7 U.S.C. 2014(e)(1)] Sec. 5(e)(3) of the Food Stamp Act Removes the caps on dependent care Same as the House bill. [Sec. 4103] Removes the caps on dependent care specifies that when determining benefits deductions. [Sec. 4007] deductions, as in the House bill and and, in some cases, judging income Senate amendment. [Sec. 4103] eligibility, dependent care expenses related to employment, training, or education be disregarded (deducted) from household monthly income. This deduction is capped at $200 per month for each dependent under age 2 and $175 per month for all other dependents. [7 U.S.C. 2014(e)(3)] CRS-110 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Sec. 8(a) of the Food Stamp Act sets the Increases the minimum benefit to 10% of Same as the House bill. [Sec. 4109] Increases the minimum benefit to 8% of minimum benefit for households of one the inflation-indexed cost of the "Thrifty the inflation-indexed cost of the "Thrifty and two persons at $10 per month. [7 Food Plan" (the maximum benefit) for a Food Plan" (the maximum benefit) for a U.S.C. 2017(a)] one -- person household. [Sec. 4013] one-person household. [Sec. 4107] Under terms stipulated in USDA Places into law an exclusion for combat- Same as the House bill. [Sec. 4101] Places into law an exclusion for combat- appropriations acts since FY2005, related military pay. [Sec. 4005] related military pay, as in the House bill combat-related military pay is excluded and Senate amendment. [Sec. 4101] from household income when determining eligibility and benefits. (Most recently, the Consolidated Appropriations Act, 2008, P.L. 110-161.) Sec. 5(g) of the Food Stamp Act Indexes to inflation the dollar limits on Increases the dollar limits on assets to Indexes to inflation the dollar limits on specifies that eligible households' liquid assets annually (adjusted to the nearest $3,500 ($4,500 for households with an assets annually (adjusted down to the assets may not be more than $2,000 (or $100). [Sec. 4008] elderly/disabled member) and indexes to nearest $250) beginning with FY2009. $3,000 for a household with an elderly or inflation these dollar limits annually [Sec. 4104(a)] disabled member). [7 U.S.C. 2014(g)] (adjusted down to the nearest $250). [Sec. 4104] Sec. 5(g) of the Food Stamp Act specifies Excludes all tax-qualified retirement Same as the House bill. [Sec. 4104] Adopts House and Senate provision to differing rules as to which types of plans/accounts/savings and all tax- exclude all tax-qualified retirement retirement plans/accounts/savings are qualified education savings from plans/accounts/savings and education excluded from countable liquid assets in countable liquid assets in judging savings from countable liquid assets in judging eligibility. No provision is made eligibility. [Sec. 4009 & 4010.] judging eligibility. [Sec. 4104 (b) & (c)] for excluding education savings. [7 U.S.C. 2014(g)] Sec. 6(o) of the Food Stamp Act limits No comparable provision. Lengthens the basic eligibility period for Deletes Senate provision. the eligibility of able-bodied adults ABAWDs to 6 months in every 36- without dependents (ABAWDs) -- who month period. Eliminates the current are (1) not working (20+ hours a week), provision extending eligibility for (2) in an employment/training program, ABAWDs who subsequently fail to meet or (3) in a workfare program -- to 3 work/training tests. [Sec. 4107] months in every 36-month period. ABAWDs who gain eligibility by meeting one of the three above tests, but later fail to meet these tests, may remain eligible for an additional 3 consecutive months. [7 U.S.C. 2015(o)] Sec. 11(s) of the Food Stamp Act allows No comparable provision. Adds permission for states to provide Adopts Senate provision to expand states to provide eligibility for up to 5 eligibility for up to 5 months' transitional permission for states to provide CRS-111 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) months of transitional food assistance food assistance benefits to households transitional benefits. [Sec. 4106] benefits to households that stop receiving with children that cease to receive cash federally funded cash aid under the aid under a state-funded public assistance Temporary Assistance for Needy program. [Sec. 4108] Families (TANF) program. [7 U.S.C. 2020(s)] No comparable provision. No comparable provision. Disqualifies persons found by a court or Adds new program disqualification rules, administrative agency to have as in the Senate amendment. [Sec. 4131] intentionally (1) obtained cash by misusing program benefits to obtain money for the return of deposits on containers or (2) sold food purchased with program benefits. [Sec. 4305] No comparable provision. Bars those disqualified from the Food Same as the House bill. [Sec. 4501] Adopts House and Senate provision to Distribution Program on Indian bar those disqualified from the FDPIR Reservations (the FDPIR) from the from the (renamed) food stamp program. (renamed) food stamp program. [Sec. 4211] [Sec. 4004] Sec. 6(c) of the Food Stamp Act specifies No comparable provision. Allows states to require periodic report- Adopts Senate provision to change that states may require households ing of changes in household circum- household reporting rules. [Sec. 4105] (except for migrant/seasonal stances (versus reporting changes when farmworkers, the homeless, and they occur) by migrant/ seasonal farm elderly/disabled households with no workers, the homeless, and elderly/ earned income) to file periodic reports of disabled households with no earned household circumstances. Households income. Limits the frequency that these not required to file periodic reports must households must report changes (except report any changes in circumstances changes whereby they exceed monthly when they occur. [7 U.S.C. 2015(c)] income eligibility limits). [Sec. 4105] Sec. 11(e) of the Food Stamp Act Limits states' ability to "privatize" No comparable provision. Deletes House provision. specifies that state "merit system" administrative functions. Specifies only employees must certify households' state agency merit system employees are program eligibility. [7 U.S.C. 2020(e)(6)] authorized to make eligibility certifications or: (1) represent the state in communications with client households about their application/participation, (2) participate in making any determinations regarding a household's substantive or procedural compliance with program CRS-112 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) requirements, or (3) make any other required program determinations. Exemptions include nonprofit agencies assisting in outreach and contracts with automated systems, benefit issuance services, and program information activities. Prohibits federal funds for any contract that does not comply with these requirements, and bars waivers of rules that do not comply with requirements. Allows use of employees not in compliance with these requirements in cases of disasters. [Sec. 4015] No comparable provision. No comparable provision. Requires that USDA develop standards Adopts Senate provision adding for identifying major changes in state requirements with regard to major agency administrative operations (e.g., changes in state agency administrative substantial increases in reliance on operations. [Sec. 4116] automated systems or potential increases in administrative burdens on applicant/ recipient households). If a state implements a major change in operations, it must notify USDA and collect any information needed to identify/correct any adverse effects on program integrity or access. [Sec. 4211] No comparable provision. No comparable provision. Requires that computerized systems for Adopts Senate provision adding state program operations must (1) be requirements for computerized state tested adequately before and after systems. [Sec. 4121] implementation, and (2) be operated under a plan for continuous updating (to reflect changed policies/circumstances) and testing (for effects on households and payment accuracy). [Sec. 4212] Sec. 13(b) of the Food Stamp Act Permits USDA to make a determination Same as the House bill. [Sec.4301] Adopts House and Senate provision specifies that states must attempt to that a state agency has over-issued permitting USDA to determine that a collect all over-issued benefits from benefits to a substantial number of state has over-issued benefits because of recipients, unless the state agency households because of a "major systemic major systemic error, to then prohibit the demonstrates that collection is not cost- error" by the state. If this determination state from collecting resulting over- effective. [7 U.S.C. 2022(b)] There is is made, USDA may (1) prohibit the state issuances from recipients, and also to CRS-113 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) no specific provision for collection of the agency from collecting any resulting collect the cost of over-issuances from cost of erroneously issued benefits from over-issuances from recipients, and (2) the state. [Sec. 4133] state coffers. collect the cost of the over-issuances from the state. [Sec. 4018] Sec. 12 of the Food Stamp Act specifies Increases the maximum money penalty to Same as the House bill. Also eases Adopts Senate provision that changes that participating retailers may be $100,000 per violation. Removes the conditions under which bonds are money penalty and bonding rules for disqualified for violation of program provision that limits the imposition of required of a participating retailer who retailers and bars interchange fees on rules (or, in cases where disqualification money penalties in lieu of has violated food stamp rules and wishes retailers. [Sec. 4132 & Sec. 4115] would cause hardship to food stamp disqualification to cases where it would to be re-approved for participation. The households, receive a money penalty of cause hardship to recipient households. provision limits the period of time for up to $10,000 per violation). Permits the imposition of both a which bonding is required. [Sec. 4303] Disqualification is: (1) 6 months to 5 disqualification and a money penalty. years (first violation), (2) 10 months to Removes the 6-month and 10-month Bars charging retailers "interchange fees" 10 years (second violation), and (3) minimum disqualification requirements. in connection with implementation of permanent on a third violation, a Requires the establishment of procedures electronic benefit transfer (EBT) systems. disqualification based on trafficking in whereby participating retailers may be [Sec. 4202] benefits, or a finding of the sale of immediately suspended for "flagrant firearms, ammunition, explosives, or violations," pending appeal. [Sec. 4017] controlled substances. [7 U.S.C. 2021] No comparable provision. No comparable provision. Requires USDA to issue regulations Deletes Senate provision. defining dietary supplements: multi- vitamin-mineral supplements providing prescribed minimum amounts of essential vitamins, minerals and certain prescribed amounts of folic acid and calcium. Requires proposed regulations within 1 year of enactment, and final regulations within 2 years of enactment. No dietary supplements may be purchased with program benefits until final regulations have been issued or a voluntary system of labeling for the identification of eligible dietary supplements is certified by USDA. [Sec. 4402] Sec. 7(h) of the Food Stamp Act provides No comparable provision. Limits "split issuance" of benefits by Adopts Senate provision limiting split that state agencies may stagger the requiring that no staggered issuance issuance of benefits. [Sec. 4113] issuance of benefits over the course of procedure may provide for more than 1 each month and specifies that any issuance during a month -- except in the staggered issuance procedure must case of a benefit correction. [Sec. 4203] CRS-114 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) ensure that no household experiences an interval between issuances longer than 40 days. Staggered issuance procedures may include splitting monthly benefits into more than one "issuance." [7 U.S.C. 2016(h)] Fruits and Vegetables Sec. 18(g) of the Richard B. Russell Expands the existing fresh fruit and Replaces the existing fresh fruit and Replaces existing fresh fruit/ vegetable National School Lunch Act requires a vegetable program in elementary and vegetable program. The new program program, beginning with the 2008-2009 fresh fruit and vegetable program. Most secondary schools. Increases annual provides mandatory funding of $225 school year. Similar to Senate provision, recently, this program was funded at a mandatory funding to $70 million and million in the first year (indexed for the new program is to operate in elemen- total of $18.9 million for FY2008 ($9 makes the program available nationwide inflation in later years) to make free fresh tary schools selected by states and has million of which is mandatory), and $9.9 in (1) 35 elementary and secondary fruits and vegetables available in selected mandatory Section 32 funding (see Sec. million of which was provided by the schools in each state and (2) additional (by states) elementary schools. Allocates 14222): $40 million on October 1, 2008; Consolidated Appropriations Act of 2008 schools in each state in proportion to the funding among states under a formula $65 million on July 1, 2009; $101 million (P.L. 110-161). This program makes state's student population. No new distributing about half the money equally on July 1, 2010; and $150 million on July fresh fruits and vegetables available in Indian reservations would be added among states and apportioning the 2011. Available money each succeeding selected elementary and secondary specifically. Up to 1% of funds may be remainder based on population. Priority July 1 is indexed for inflation. Allocates schools in a limited number of states and reserved for federal administration, and is to be given to schools with high funds by the formula proposed by the on three Indian reservations. [42 U.S.C. states may use up to 5% of their proportions of lower-income students, Senate provision, but includes no special 1769(g)] allocation for administrative expenses. and at least 100 schools chosen to set-aside for Indian reservation schools. [Sec. 4303] participate must be on Indian As in the Senate provision, gives priority reservations. Annual per-student grants to schools with high proportions of low- would be determined by states, but must income students, requires that annual per- be between $50 and $75. Requires an student costs be between $50-$75, and evaluation, providing $3 million in mandates a $3 million evaluation. funding. [Sec. 4904] Authorizes limited set-asides for federal and state administrative costs, and discretionary appropriations (in addition to mandatory Section 32 funds). [Secs. 4304 & 14222] Sec. 10603 of the 2002 farm bill states Increases the set-aside for the Provides that, in lieu of purchases Provides that, in addition to the minimum that USDA is required to use not less Department of Defense Fresh program required under Sec. 10603, USDA ($200 million-a-year) acquisitions than $200 million a year in Section 32 ("DoD Fresh") to $75 million a year. purchase fruits, vegetables, and nuts for required by the 2002 farm bill, USDA funding to purchase fruits, vegetables, [Sec. 4301] use in domestic food assistance programs will purchase fruits, vegetables, and nuts and certain other specialty food crops. using Section 32 funds. Minimum for use in domestic nutrition assistance Of this amount, at least $50 million a purchase amounts are $390 million for programs using Section 32 funds. The year must be used to acquire fresh fruits FY2008, rising to $406 million in added purchases required are: $190 and vegetables for schools through the FY2012 and for each year thereafter. million (FY2008), $193 million CRS-115 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) "DoD Fresh" program (using the Defense [Sec. 4907] (FY2009), $199 million (FY2010), $203 Department as the procurement agent). million (FY2011), and $206 million [7 U.S.C. 612c-4] (FY2012 and each year thereafter). Deletes direct mention of the use of the DoD Fresh program as a procurement agent for fresh fruits and vegetables for schools, but retains a $50 million-a-year requirement for USDA-sponsored fresh fruit and vegetable acquisitions for schools. [Sec. 4404] The Emergency Food Assistance Program (TEFAP) Sec. 27 of the Food Stamp Act to use Increases required funding for TEFAP Increases required annual funding for Increases required funding for TEFAP $140 million of annual appropriations commodities to $250 million for TEFAP commodities to $250 million. commodities. For FY2008, an immediate under the Food Stamp Act to purchase FY2008; for later years, this amount is [Sec. 4110] Also increases the annual infusion of $50 million is directed. For food commodities for distribution indexed annually for food-price inflation. authorization of appropriations for FY2009, $250 million in TEFAP through TEFAP emergency feeding [Sec. 4028] Increases the annual TEFAP administrative and distribution commodities is mandated. For FY2010 organizations. Sec. 204(a) of the Emer- authorization of appropriations for costs to $100 million. [Sec. 4802] through FY2012, the $250 million gency Food Assistance Act authorizes TEFAP administrative and distribution Authorizes competitive grants totaling provided for FY2009 is to be adjusted for annual appropriations of $60 million for costs to $100 million. [Sec. 4201] $10 million annually to expand the food-price inflation. Increases the annual TEFAP administrative and distribution capacity and infrastructure of food banks authorization of appropriations for costs. [7 U.S.C. 2036 and 7508(a)] so as to improve their ability to handle TEFAP administrative and distribution "time-sensitive" (perishable) food costs to $100 million. [Sec. 4201] products, their identification of potential Authorizes appropriations ($15 million a food donors, and procurement of locally year through FY2012) for "infrastructure produced foods. [Sec. 4915] grants." Grants are to be made to emergency feeding organizations (emphasizing those serving mostly rural communities) for projects that improve the availability of perishable "time- sensitive" foods, improve the security/ diversity of emergency food distribution and recovery systems, make available recovered foods to emergency food providers, improve identifying potential providers of donated food, and support construction, expansion, or repair hunger relief facilities/equipment. [Sec. 4202] CRS-116 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Commodity Supplemental Food Program (CSFP) Income eligibility limits for the CSFP are Requires USDA to establish income Permits the CSFP to serve low-income Bars USDA from requiring that CSFP set at 130% of the federal income poverty eligibility limits for the CSFP that are the elderly persons with income up to 185% projects prioritize assistance to either (1) guidelines for elderly applicants and same for all applicants. The limits may of the poverty guidelines, if USDA the elderly or (2) women, infants, and 185% of the guidelines for households not exceed 185% of the poverty determines that appropriations have children, but does not change eligibility with women, infants, and children. [7 guidelines. [Sec. 4203] enabled every state seeking to participate rules. [Sec. 4221] U.S.C. 612c note; regulations under Sec. in the CSFP to participate. [Sec. 4802] 5 of the 1973 Agriculture and Consumer Protection Act] Food Distribution Program on Indian Reservations (FDPIR) Sec. 4 of the Food Stamp Act states that, Authorizes annual appropriations of $5 Similar to the House bill, but: (1) Combines elements of both the House at the request of Indian tribal million for a fund to purchase "traditional provides authority for the purchase of and Senate bills. Adopts House organizations, a FDPIR may be operated and locally grown" foods for the FDPIR. bison meat for the FDPIR (subject to provisions authorizing appropriations for on Indian reservations in lieu of food At least 50% of these foods are to from appropriations), (2) requires a survey of a traditional and locally grown food fund, stamps. [7 U.S.C. 2013] Native American farmers, ranchers, and participants to determine which mandating a minimum purchases from producers. Requires a report reviewing traditional foods are most desired, and (3) Native American producers, and the procedures for determining the does not include a House requirement requiring a report on FDPIR food contents of FDPIR food packages, the that at least 50% of distributed foods be packages. Adopts Senate provisions for adequacy of the packages, and any plans produced by Native American farmers, bison meat purchases and a survey of to revise them to conform with dietary ranchers, and producers. [Sec. 4501] FDPIR participants as to their preference guidelines. [Sec. 4004] among traditional foods. [Sec. 4211] Senior Farmers' Market Nutrition Program (SFMNP) Sec. 4402 of the Farm Security and Rural Authorizes additional appropriations of Provides added mandatory funding of Increases total mandatory funding to Investment Act of 2002 established the $20 million for FY2008, rising to $75 $10 million a year. The value of SFMNP $20.6 million a year and, as in the House SFMNP to provide low-income seniors million by FY2012. Adds honey to the benefits cannot be considered income or bill, adds honey to items that may be with vouchers for fresh, locally grown list of items that may be purchased. resources for any purposes under any purchased. Adopts House and Senate fruits, vegetables and herbs usable at Provides that the value of benefits not be federal, state, or local law. States and provisions barring consideration of farmers' markets, roadside stands, and considered income or resources for any localities also are prohibited from SFMNP benefits as income/resources and community-supported agriculture purposes under any federal, state, or local collecting sales taxes on food purchased the collection of sales taxes on SFMNP programs. Provides annual mandatory law. Prohibits states and localities from with SFMNP vouchers. purchases. [Sec. 4231 & Sec. 4406(c)] funding of $15 million. [7 U.S.C. 3007] collecting sales taxes on SFMNP food- [Sec. 4701& 4702] voucher purchases. [Sec. 4401] Community Food Projects Sec. 25 of the Food Stamp Act Expands the list of projects to be given Provides $10 million in annual Requires USDA to provide a grant to a authorizes USDA to make grants to non- preference to include emergency food mandatory funding. [Sec. 4801] nonprofit organization to establish and CRS-117 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) profit agencies for community food infrastructure initiatives, those dealing support a "healthy urban food enterprise projects that require a one-time infusion with retail access in under-served development center" for activities that of assistance to become self-sustaining. markets, those integrating urban and increase access to healthy affordable Certain types of projects are to be given metro-area food production, and those foods (including locally produced food) preference. The term of a grant may not providing assistance for youth, socially in "underserved communities." The exceed 3 years. Not more than $5 disadvantaged individuals, and groups center is to provide technical assistance million of annual appropriations under with limited resources. Increases the and information to small and medium- the Food Stamp Act may be used for maximum term for grants to 5 years. sized agricultural producers, food community food project grants. Of Authorizes annual appropriations of $30 wholesalers and retailers, schools, and available funds, $200,000 must be million and increases the set-aside for the other entities regarding "best practices" allocated to a special project grant for grant for common community food and the availability of assistance for addressing common community food problems to $500,000. Raises the federal aggregating, storing, processing, and problems. Federal cost-sharing is not to cost-sharing limit to 75%. [Sec. 4027] marketing locally produced food and exceed 50%. [7 U.S.C. 2034] increasing availability in underserved communities. Provides mandatory funding of $1 million a year (FY2009- 2011); authorizes appropriations of $2 million (FY2012). [Sec. 4402] No comparable provision. No comparable provision. Requires USDA give priority to projects Adopts Senate provision with an promoting healthy food education be amendment to strike the authorization of replicated in schools. Authorizes a new appropriations to carry out the provision. pilot project ($10 million) in not more [Sec. 4303] than 5 States to provide grants to "high-poverty" schools for initiatives with hands-on gardening. No cost-sharing is required. [Sec. 4903] Geographic Preference (Purchase of Locally Produced Foods) Sec. 9(j) of the Richard B. Russell Removes provisions for start-up grant Same as the House bill, except that Adopts House and Senate provision National School Lunch Act requires funding to help carry out the locally geographic preference would be allowed removing provisions for start-up grant USDA to encourage schools to purchase produced food purchase policy. Requires only for locally grown fruits and funding. Requires USDA to allow locally produced foods to the maximum USDA to allow schools and other vegetables. [Sec. 4902] schools and other institutions receiving extent practicable and appropriate. institutions receiving funds under the funds under the National School Lunch Authorizes appropriations of $400,000 a National School Lunch and Child and Child Nutrition Acts (and the year (including for start-up grants for Nutrition Acts to use geographic Defense Department acting as a fresh equipment and incurred costs). preference for the procurement of locally fruit and vegetable buying agent) to use [42 U.S.C. 1758(j)] By regulation, any produced foods. The Defense geographic preference for the procurement under USDA entitlement Department, acting as a fresh fruit and procurement of "unprocessed agricultural programs, including school meal and vegetable procurement agent for schools, products, both locally grown and locally other child nutrition programs, must be also is covered by this rule. [Sec. 4304] raised." [Sec. 4302] CRS-118 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) conducted in a manner that prohibits the use of statutorily or administratively imposed in-state or local geographic preferences (except in cases where federal statute expressly mandates or encourages geographic preference). [7 CFR 3016.60(c) and 3016.36(c)(2)] Special Initiatives No comparable provision. Authorizes annual appropriations of $10 Provides total mandatory funding of $50 Combines House and Senate provisions million for a demonstration competitive million for pilot projects to develop and to authorize pilot projects that develop grant program ("Initiative to Address test methods of using the (renamed) Food and test methods of using the (renamed) Obesity Among Low-Income Stamp program to improve the dietary Food Stamp program to improve the Americans") to develop and implement and health status of participants and dietary and health status of participants strategies to reduce obesity in the low- reduce overweight, obesity, and diet- and reduce overweight, obesity, and diet- income population. Project proposals related diseases. Project initiatives are to related diseases. Specifies that project would be evaluated against criteria increase the availability and purchase of proposals will be evaluated against the including identification of a low-income healthy foods and may include expanded criteria laid out in the House bill, and target audience, incorporation of program benefits, greater access to specifies projects may not limit the use of scientifically based strategies to improve farmers' markets, incentives to benefits. Project initiatives may include diet quality, commitment to a rigorous participating food concerns, new those listed in the Senate provision, and evaluation, and inclusion of strategies for approval requirements for participating independent project evaluations are after-school food service and improve- food concerns, point-of-purchase required. Authorizes annual appropria- ment of children's health. Prohibits the incentives for program recipients to buy tions (set at "such sums as are necessary" use of demonstration funds for projects healthy foods, and education programs. annually through FY2012) to carry out that limit the use of benefits. [Sec. 4023] Independent evaluations of the projects these health and nutrition promotion pilot are mandated, and up to 50% of the projects. Provides mandatory funding (a funding must be used for point-of- one-time $20 million) for point-of- purchase incentive projects. [Sec. 4403] purchase incentive projects. [Sec. 4141] No comparable provision. Directs a comprehensive study of Same as the House bill, but also provides Adopts Senate provision to direct a study Note: Puerto Rico receives an annual extending the regular (renamed) Food $1 million in mandatory funding for the of extending the (renamed) Food Stamp (indexed) nutrition assistance block grant Stamp program to Puerto Rico. [Sec. study. [Sec. 4206] program to Puerto Rico and provide in lieu of operating a regular Food Stamp 4026] mandatory funding of $1 million. program. [Sec. 4142] No comparable provision. No comparable provision. Provides mandatory funding ($5 million) Deletes Senate provision. for grants to projects for expanding the number of farmers' markets that accept Note: Sec. 10106 effectively adopts electronic benefit transfer (EBT) cards Senate provision to provide funding for used in the (renamed) Food Stamp similar programs. CRS-119 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) program. [Sec. 4210] No comparable provision. No comparable provision. Requires a periodically updated study of Similar to the Senate provision, hunger in the U.S., assessing data and authorizes appropriations ("such sums as hunger-reduction measures and making are necessary" through FY2012) for policy recommendations. Authorizes matching grants (1) to food program matching grants (1) to food program service providers and nonprofits for service providers and nonprofits for collaborative efforts to assess community collaborative efforts to assess community hunger problems and to achieve "hunger- hunger problems and to achieve "hunger- free communities" and (2) to emergency free communities" and (2) to emergency feeding organizations for infrastructure feeding organizations for infrastructure development. Any available funding is development. Authorizes $50 million a to be divided equally between these to year for these studies and grants. grant initiatives, and the federal matching [Sec. 4405] percentage is limited to 80%. [Sec. 4405] No comparable provision. No comparable provision. Requires periodic USDA surveys of Similar to Senate provision, requires a foods purchased by schools in the School USDA survey of foods purchased by Lunch program and provides mandatory schools in the School Lunch program and funding of $3 million for each survey. provides mandatory one-time funding of [Sec. 4901] $3 million. [Sec. 4307] Sec. 19 of the Child Nutrition Act No comparable provision. Provides annual mandatory funding of $3 Deletes Senate provision. authorizes appropriations for "Team million for Team Nutrition Network Nutrition Network" grants to states and grants. [Sec. 4905] local education agencies to carry out nutrition education activities for schoolchildren. [42 U.S.C. 1788] No comparable provision. No comparable provision. Establishes a pilot project to provide Similar to Senate provision, requires whole grain products as meal USDA to purchase whole grains and supplements (snacks) in after-school whole grain products for use in school programs operated by a limited number meal programs and an evaluation of this of elementary and secondary schools in 6 initiative. From mandatory Section 32 states and on one Indian reservation. funding made available under Sec. Provides mandatory funding of $4 14222, provides $4 million (in FY2009) million to carry out and evaluate project. to carry out the whole grain project. [Sec. Funds are to be derived equally from 4305 & Sec. 14222(d)] money otherwise available for the Senior Farmers' Market Nutrition program and community food projects. [Sec. 4912] CRS-120 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. Authorizes a "food employment Deletes Senate provision. empowerment and development" (FEED) program with USDA providing grants to public and private nonprofit agencies to encourage the use of community resources to combat hunger through projects that recover unused food and provide job training related to food recovery and preparation. [Sec. 4914] Section 4404 of the Farm Security and Restates Sec. 4404 with provisions Same as the House bill, except that the Adopts Senate provision restating and Rural Investment Act of 2002 authorizes similar to those contained in prior law. Senate amendment (1) authorizes revising Sec. 4404. [Sec. 4401] a Congressional Hunger Fellows program Provisions differ primarily by authorizing issuance of "grants" to the Hunger Center to encourage future U.S. leaders to annual appropriations of $3 million and (as opposed to "contracts") and pursue careers in humanitarian and public by specifically naming the Congressional authorizes appropriations at "such sums service and provide aid to people in need. Hunger Center as the administering entity as are necessary." [Sec. 4404] Two types of fellowships are authorized: for Emerson and Leland fellowships. (1) Bill Emerson fellowships relating to [Sec. 4402] domestic hunger and humanitarian needs and (2) Mickey Leland fellowships that address international hunger and other humanitarian needs. Establishment of a trust fund is authorized to support these fellowships through an agreement with the Congressional Hunger Center (which administers the fellowships). Note: The trust fund has not been funded. Instead, the Congressional Hunger Center typically receives $2.5 million as part of the annual USDA appropriations. TITLE V: AGRICULTURAL CREDIT USDA Farm Ownership Loans Requires borrowers for USDA direct No comparable provision. Expands and clarifies the qualification Adopts Senate provision. [Sec. 5001] farm ownership loans to have training, or criteria to allow USDA to take "into farming and ranching experience, that "is consideration all farming sufficient to assure reasonable prospects experience...without regard to any lapse of success in the proposed farming between farming experiences." [Sec. operations." [7 U.S.C. 1922(a)(2)] Same 5001] Same provision for farm operating CRS-121 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) provision for farm operating loans. loans Sec. 5101(1)-(2)] [7 U.S.C. 1941(a)(2)] Allows direct farm ownership loans to be No comparable provision. Adds another loan purpose to allow Deletes Senate provision. used for buying a farm or ranch, capital beginning farmers and ranchers to use a improvements, closing costs, soil/water direct farm ownership loan to refinance a conservation projects, and refinancing guaranteed farm ownership loan. bridge loans. [7 U.S.C. 1923(a)(1)] [Sec. 5002] Allows direct and guaranteed loans for Replaces prior law provision with a new Adds additional purposes for the Adopts House provision, with soil and water conservation projects. conservation loan guarantee program. conservation loan to include (1) modification. Allows USDA to make Gives priority to conservation structures Provides loan guarantees or interest rate conversion to organic production and (2) loans or issue loan guarantees. Does not or practices that comply with 16 U.S.C. subsidies for qualified conservation certain environmental quality practices. specify a maximum amount or duration, 3812. Maximum loan size is $50,000. projects to farmers, ranchers or other Gives priority to beginning farmers or but says that guarantees should be 75% [7 U.S.C. 1924] entities primarily engaged in farming. ranchers, socially disadvantaged farmers of the loan principal. Does not include Gives priority to beginning farmers and or ranchers, and management practices interest subsidies. Managers statement ranchers, socially disadvantaged farmers that comply with 16 U.S.C. 3812. says loan limits for other Farm Service or ranchers, conversion to sustainable or Eliminates the maximum loan size Agency operating loans should apply. organic production, or structures or provision. [Sec. 5003] [Sec. 5002] practices that comply with 16 U.S.C. 3812. Maximum loan size is $1 billion, for up to 10 years. Allows guarantees up to $1 million on between 80% to 90% of the loan amount. Interest rate subsidies range from 3-5%, depending on loan. Authorizes appropriations of such sums as necessary (FY2008-12). [Sec. 5001] Sets a maximum per borrower of Raises to $300,000 the maximum loan Similar to House provision, except does Adopts Senate provision. [Sec. 5003] $200,000 for direct farm ownership per borrower. Requires USDA to not have clause about graduation to other loans. [7 U.S.C. 1925] establish plans to encourage borrowers to sources of credit. [Sec. 5004] graduate to private or commercial credit. [Sec. 5002] Authorizes down payment loans on farm Expands eligibility to include socially Similar to House provision, except Adopts House provision, with real estate to beginning farmers and disadvantaged farmers and ranchers. interest rate equals the greater of 2% or modification. The interest rate equals the ranchers up to 40% of the purchase price Raises loan limit to 45% of the lowest of the regular direct farm ownership interest greater of 1.5% or the regular direct farm or appraised value. Maximum property the purchase price, appraised value, or rate minus 4%. [Sec. 5005] ownership interest rate minus 4%. [Sec. value is $250,000. Loan duration up to $500,000. Removes limit on property 5004] 15 years. Interest rate equals 4%. value. Extends loan duration up to 20 Requires borrower down payment of years. Interest rate equals the greater of CRS-122 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) 10%. [7 U.S.C. 1935] 1% or the regular direct farm ownership interest rate minus 4%. Reduces borrower down payment requirement to 5%. Requires USDA to establish annual performance goals. [Sec. 5003] Creates a pilot program to guarantee Makes permanent and nationwide the Similar to House provision, except does Adopts House provision, with loans made by a private seller of a farm guarantee program for privately financed not include socially disadvantaged modification. Provides a transition or ranch to a beginning farmer or rancher contract land sales. Expands eligibility to farmers and ranchers, and does not period until 2011. [Sec. 5005] on a contract land sales basis. Available socially disadvantaged farmers/ranchers. include seller's choice for guaranteed in 5 States, up to 5 loans per state in Requires a 5% down payment. Sets payment of 90% of outstanding principal. each of fiscal years 2003-07. [7 U.S.C. maximum purchase price at $500,000 [Sec. 5006] 1936] and a 10-year maximum guarantee. Seller chooses a guarantee plan of either 3 amortized annual installments, or 90% of the outstanding principal. [Sec. 5004] Authorizes USDA loans to any Indian Authorizes loans to purchasers of highly Similar to House provision. [Sec. 5401] Adopts Senate provision. [Sec. 5501] Tribe or tribal corporation to acquire fractioned land. [Sec. 5005] lands within the tribe's reservation or a community in Alaska. [25 U.S.C. 488] USDA Farm Operating Loans Limits direct farm operating loans to (1) No comparable provision. Clarifies that USDA may consider all Adopts Senate provision, but does not beginning farmers or ranchers, or (2) farming experience for eligibility. extend the duration of eligibility. [Sec. farmers or ranchers who have received Extends by one year (to 7 years) the 5101] direct operating loans for 6 or fewer eligibility for a direct operating loan. years. [7 U.S.C. 1941(c)(1)] [Sec. 5101(3)] Sets a maximum per borrower of Raises to $300,000 the maximum per Same as House provision. [Sec. 5102] Adopts House provision. [Sec. 5102] $200,000 for direct farm operating loans. borrower. [Sec. 5011] [7 U.S.C. 1943] Limits eligibility for guaranteed Extends the suspension of term limits for Repeals the term limits provision on Adopts House provision, except extends operating loans to 15 years (a.k.a., term guaranteed operating loans through Jan. guaranteed operating loans. [Sec. 5103] the suspension of term limits through limits). The 2002 farm bill and 1, 2008. [Sec. 5012] Dec. 31, 2010. [Sec. 5103] successive legislation suspended application of this limit. [7 U.S.C. 1949(b)(1)] CRS-123 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) USDA Emergency Loans Authorizes Farm Service Agency No comparable provision. Adds eligibility for emergency loans to Adopts Senate provision. Managers' emergency disaster loans for farmers, equine farmers and ranchers. [Sec. 5404] statement notes horses for racing, ranchers, and aquaculture operations showing, recreation, or pleasure are not under certain conditions. eligible. [Sec. 5201] [7 U.S.C. 1961(a)] Administrative Provisions No comparable provision. No comparable provision. Creates a pilot program of individual Adopts Senate provision, with development accounts for beginning modification. Reduces matching deposit farmers and ranchers in at least 15 States. to between 2 to 1 per dollar deposited Producers make deposits into savings (maximum $6,000 matching per year), accounts and receive a matching deposit reduces grants to $250,000 maximum, ranging between 3 to 1 per dollar increases non-federal matching to 50%, deposited (maximum $9,000 matching limits administrative cost to 10%, reduces per year). Withdrawals allowed to buy authorization for appropriation to $5 farmland; make mortgage payments; buy million annually. [Sec. 5301] equipment, breeding stock, or trees; harvest timber; or pay for training. Withdrawals must be made within 2 years after the last match. Program delivered through private entities that apply for grants up to $300,000; requires non-federal matching of 25%. Duration is 5 years, plus 2 years for withdrawals. Authorizes appropriations of $10 million annually in FY2008-12. [Sec. 5201] Requires USDA to include beginning Gives first priority to socially Similar to House provision, except does Adopts Senate provision. [Sec. 5302(a)] farmers and ranchers in the process when disadvantaged farmers and ranchers not give priority to socially selling or leasing USDA-acquired when USDA sells or leases property. disadvantaged farmers over beginning property. [7 U.S.C. 1985(c)] Adds socially disadvantaged farmers to farmers. [Sec. 5202(a)] beginning farmers when discussing steps in the process. [Sec. 5021] Reserves loan amounts for beginning Increase the reservation for beginning Same reservations as the House Adopts Senate provision. [Sec. 5302(b)] farmers and ranchers: 70% of direct farm farmers and ranchers: 75% of direct farm provision, except refers to "joint ownership loans, and of this amount, ownership loans, and of this amount b financing arrangements" instead of 60% for down payment loans. Reserves for the down payment and participation "participation loans." [Sec. 5202(b)] CRS-124 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) 35% of direct operating loans in FY2003- loans. Reserves 50% of direct operating 07. Reserves 25% of guaranteed farm loans in FY2008-12. Reserves 40% of ownership loans, and 40% of guaranteed guaranteed farm ownership loans. operating loans. [7 U.S.C. 1994(b)(2)] [Sec. 5022] Sets loan authorization levels totaling No comparable provision. Raises loan authorization levels to $4.226 Adopts Senate provision. [Sec. 5303] $3.796 billion for each of FY2003-07, billion for each of FY2008-12, including including $770 million for direct loans $1.2 billion for direct loans ($350 million ($205 million for farm ownership loans, for farm ownership loans and $850 and $565 million for operating loans), million for operating loans). No and $3.026 billion for guaranteed loans increases for guaranteed loans. [Sec. ($1 billion farm ownership loans, and 5204] $2.026 billion for operating loans). [7 U.S.C. 1994(b)(1)] No comparable provision. Requires USDA to promote the goal of Same as House provision. [Sec. 5203] Adopts House provision. [Sec. 5304] moving borrowers to commercial or other sources of credit when writing regulations. [Sec. 5023] Allows a borrower-owner who is Extends the right of first refusal to No comparable provision. Adopts House provision. [Sec. 5305] occupying a homestead that is in the reacquire homestead property during the possession of USDA because of occupancy period to members of the foreclosure or bankruptcy to have the immediate family of a borrower-owner right of first refusal to reacquire the who is a socially disadvantaged farmer or homestead property at any time during rancher. [Sec. 5024] occupancy. [7 U.S.C. 2000(c)(4)(B)] Requires an interest rate reduction No comparable provision. Clarifies that the interest rate reduction Deletes Senate provision. program for guaranteed loans. [7 U.S.C. program be available for new guaranteed 1999(a)] operating loans or restructured guaranteed operating loans. [Sec. 5205] Allows re-amortization of the repayment No comparable provision. Clarifies that deferral is an available loan Deletes Senate provision. of a shared appreciation agreement that is servicing tool and that deferral may not delinquent. [7 U.S.C. 2001(e)(7)(D)] exceed 1 year. [Sec. 5206] No comparable provision. Prohibits USDA from studying or Similar to House provision. [Sec. 5207] Adopts House provision. [Sec. 5306] entering into a contract for competitive sourcing in the rural development or farm loan programs. [Sec. 5025] CRS-125 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Defines "farmer" and "farming" to No comparable provision. Adds commercial fishing to the definition Deletes Senate provision. include fish farming. [7 U.S.C. of farmer and farming. [Sec. 6020(c)] 1991(a)(1)-(2)] Farm Credit System (FCS) Allows voting stock in Banks for Allows other categories of persons and No comparable provision. Adopts House provision. [Sec. 5403] Cooperatives to be held only by (1) entities who are eligible to borrow from cooperative associations that are eligible Banks for Cooperatives to hold voting to borrow from the banks; and (2) other stock, as determined by the board of banks for cooperatives. [12 U.S.C. directors. [Sec. 5031] 2124(c); 12 U.S.C. 2154a(c)(1)(D)] Sets the par value of capital stock in the No comparable provision. Makes a technical correction to refer to Adopts Senate provision. [Sec. 5402] Bank for Cooperatives. [12 U.S.C. par value. [Sec. 5302] 2124(b)] Requires that members of the Farm No comparable provision. Requires Senate confirmation of the Deletes Senate provision. Credit Administration Board be President's choice of chairman. [Sec. appointed by the President and confirmed 5303] by the Senate. The President designates one as chairman. [12 U.S.C. 2242(a)] Defines what types of loans are eligible Allows rural utility (electric or telephone Similar to House provision, except (1) it Adopts Senate provision. for the agricultural mortgage secondary facility) loans to qualify for the recasts loan standards in terms of [Sec. 5406(a)-(c)] market (Farmer Mac). [12 U.S.C. agricultural mortgage secondary market agricultural mortgages, and (2) removes 2279aa(9)] (Farmer Mac). Does not apply certain congressional review of standards (in 12 requirements for guarantees and U.S.C. 2279aa-8). [Sec.5306(a)-(c)] standards to rural utility loans. [Sec. 5032] Establishes a risk-based capital test for Provides for separate consideration of Similar to House provision. [Sec. Adopts Senate provision. [Sec. 5406(d)] the Federal Agricultural Mortgage rural utility (electric and telephone) loans 5306(d)] Corporation (Farmer Mac) to determine a when determining credit risk. [Sec. 5034] sufficient level of capitalization. [12 U.S.C. 2279bb-1(a)] Allows any Farm Credit System bank to Replaces the formula for computing Similar to House provision, except it Adopts Senate provision. [Sec. 5401(a)] charge associations in its district for the assessments with a requirement that the specifies that the equitable manner be cost of premiums due to the Farm Credit assessment be computed in an equitable determined by the FCS Insurance System Insurance Corporation (FCSIC) manner. [Sec. 5033(a)] Corporation. [Sec. 5301(a)] CRS-126 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) by using a specified formula based on accrual status and various government guarantees. [12 U.S.C. 2020(b)] Gives the FCSIC Board of Directors Gives rule-making authority for Same as House provision. [Sec. 5301(b)] Adopts House provision. [Sec. 5401(b)] power to issue rules and regulations. [12 "authority to pass along cost of insurance U.S.C. 2277a-7(10)] premiums" to FCSIC Board of Directors. [Sec. 5033(h)] Allows the FCSIC to collect premiums Removes specification of "annual" when Similar to House provision. [Sec. 5304] Adopts Senate provision. [Sec. 5404] annually. When the Insurance Fund does referring to FCSIC premiums. Changes not exceed the secure base amount, formula for premiums by using different premiums equal different rates multiplied rates and classes of assets: insured by outstanding principal of accrual obligations after deducting 90% of (0.0015), non-accrual (0.0025), and federally-insured accrual loans and various government-guaranteed investments and 80% of state-insured (0.00015-0.0003) loans. Allows reduced accrual loans and investments (0.002), premiums when the Fund exceeds the non-accrual loans (0.001), and other than secure base amount. The base amount is temporarily-impaired investments 2% of outstanding insured obligations of (0.001). Revises the secure base amount all insured System banks reduced by 90% definition to include federal- and state- of federally-insured loans and 80% of guaranteed investments. Calculate state-insured loans. Excess premiums outstanding principal to include collected in the Fund over the secure base investments. Calculate excess funds amount are allocated to insurance reserve using year-end balances and simplify accounts for each bank and the Financial formula to allocate among banks. Assistance Corporation using average Terminates reserve fund for Financial daily balances. [12 U.S.C. 2277a-4] Assistance Corp. [Sec. 5033(b)-(f)] Requires annual certification, reporting Gives discretion to FCSIC for timing of Similar to House provision. [Sec. 5305] Adopts Senate provision. [Sec. 5405] of loan balances, and payment of certification. Premiums are not to be premiums by FCS banks to the FCSIC. collected more than quarterly. [Sec. [12 U.S.C. 2277a-5] 5033(g)] No comparable provision. No comparable provision. Changes lending authorities of FCS Adopts Senate provision. [Sec. 5407] associations (in AL, MS, and LA) by allowing Federal Land Bank Associations to make short-and intermediate-term loans, and Production Credit Associations to make long-term loans. Requires board of directors and CRS-127 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) stockholder approval. Effective Jan. 1, 2010. [Sec. 5307] TITLE VI: RURAL DEVELOPMENT Defining Rural Eligibility Sec. 343(a) of the Consolidated Farm and Directs USDA to submit a report to the Creates a standard definition of rural area Adopts the Senate provision but deletes Rural Development Act (Con Act), as Agriculture Committees: (1) assessing that excludes (1) cities of 50,000 or more, the housing density criterion from the amended, defines rural as any area other the varying definitions of rural used by (2) any urbanized area contiguous and definition of "rural." Permits USDA to than a city or town with a population USDA; (2) describing the effect of adjacent to a city of 50,000 or more, and include "areas rural in character" if they greater than 50,000 and the urbanized varying definitions on USDA's (3) any collection of contiguous census meet certain non-urban criteria area contiguous and adjacent to such a programs; and (3) recommending blocks with a specific housing density, or (excluding Honolulu, HI, and San Juan, city or town. [7 U.S.C. 1991(a)] changes to better target funds through adjacent to a city of 50,000 or urban area. PR). Does not change eligibility for water rural development programs. [Sec. 6001] [Sec. 6020] and waste water funding. [Sec. 6018] No comparable provision. Authorizes USDA to review socio- No comparable provision. Deletes the House provision. economic variables as factors in awarding rural development loans and grants, and issue regulations. [Sec. 6014] Rural Infrastructure: Water and Waste Disposal The 2002 farm bill amended the Con Act Reauthorizes through 2012. [Sec. 6002] Reauthorizes through 2012. [Sec. 6001] Reauthorizes through 2012. [Sec. 6001] to authorize USDA to make water and wastewater grants for development projects for the storage, treatment, purification, or distribution of water or the collection, treatment, or disposal of waste in rural areas. Authorizes $30 million in annual appropriations for FY2002-07.[7 U.S.C. 1926(a)(2)(B)(vii)] The Con Act, as amended, sets interest No comparable provision Senate provision establishes interest rates Adopts the Senate provision. [Sec. 6011] rate levels not to exceed current market for water and waste water loans based on yields for outstanding municipal a market index of loans to ensure that obligations. Low-income rural residents interest rates for intermediate and poverty receive interest rates below this rate loans are tied to the current market maximum level. [7 U.S.C. 1927 (a)(3) rate. The poverty rate is set at 60% of the (A)] market rate and the intermediate rate is set at 80% of market rate. [Sec. 12602] CRS-128 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The 2002 farm bill amended the Con Act Reauthorizes through 2012, authorizing Reauthorizes through 2012, authorizing Adopts the House provision. [Sec. 6006] to authorize appropriations for a $25 million for FY2008. [Sec. 6004] $20 million for FY2008. [Sec. 6004] water/wastewater circuit rider program, providing technical assistance based on a National Rural Water Association program. [7 U.S.C. 1926(a)(22)(C)] Authorizes appropriations of $15 million for FY2003 and each year thereafter. The 2002 farm bill amended the Con Act Reauthorizes through FY2012. Reauthorizes through FY2012. Reauthorizes through FY2012. to authorize USDA to provide [Sec. 6006] [Sec. 6011] [Sec. 6008] Emergency and Imminent Community Water Assistance Grants to rural areas and small communities comply with the Water Pollution Control Act or Safe Drinking Water Act. [7 U.S.C. 1926a(i)(2)] Authorizes an appropriation of $35 million annually for FY2003-07. No comparable provision. No comparable provision. Provides $135 million in mandatory Adopts the Senate provision. Provides spending for pending water/wastewater $120 million in mandatory spending. loans, grants and emergency community [Sec.6029] assistance grants, to be available until expended. [Sec. 6033] The Con Act, as amended, authorizes Reauthorizes through FY2012. Reauthorizes through FY2013. Amends Adopts House provision with an USDA to make grants for water systems [Sec. 6007] program to provide grants to the Denali amendment to provide $1.5 million for rural and native villages in Alaska. Commission for solid waste management annually FY2008-2012 to the Denali Authorizes appropriations of $30 million and for rural drinking water sites in Commission for solid waste annually for FY2001-07. [7 U.S.C. Alaska (not more than 5% of total management. [Sec. 6009] 1926d(d)(1)] program funding). [Sec. 6012] The 2002 farm bill amended the Con Act Reauthorizes through FY2012. Amends Reauthorizes through FY2012. Adopts House provision with changes, to authorize USDA to make grants to program to authorize USDA to make [Sec. 6013] striking consideration of matching funds private nonprofits for loans to eligible grants to private non-profits for loans to and increasing the assistance limit for low-income individuals to construct, eligible low-income individuals. each well from $8,000 to $11,000. [Sec. refurbish, and service household water [Sec. 6008] 6010] well systems in rural areas (giving priority to certain applicants). Authorizes appropriations of $10 million annually for FY2003-07. [7 U.S.C. 1926e(d)] CRS-129 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision Amends the ConAct to authorize grants Deletes Senate provision. to develop wells in isolated rural areas. Provides $10 million annually FY2008- 2012. [Sec. 6013] The 2002 farm bill amended the Con Act No comparable provision. Reauthorizes SEARCH grants and Adopts Senate provision. [Sec. 6002] to establish a SEARCH grant program, amends program. Provides up to 4% of providing technical assistance for water funds available for water, waste disposal, and waste disposal facilities. [7 U.S.C. and essential community facilities to 2009ee] financially distressed communities. Directs USDA to develop a simplified application for applicants. [Sec. 6010] Rural Broadband and Telecommunications Development The 2002 farm bill amended the Con Act Reauthorizes grants through FY2012. Reauthorizes grants through FY2012. Reauthorizes grants through FY2012. to authorize grants to acquire radio [Sec. 6018] [Sec. 6026] [Sec. 6021] transmitters to increase rural coverage by all-hazards weather radio broadcasts of the National Oceanic and Atmospheric Administration. Authorizes appropriation of such sums as needed for FY2002-07. [7 U.S.C. 2008p] The 2002 farm bill amended the Rural Reauthorizes through FY2012. Redefines Reauthorizes through FY2012. Redefines Adopts Senate provision with changes. Electrification Act (REA) of 1936 [7 eligibility and prioritizes loan eligibility and prioritizes loan Permits assistance to areas with more U.S.C. 901 et seq.] by authorizing USDA applications to areas based on number of applications. Prohibits loans to areas than 3 providers under certain conditions. to provide loans and loan guarantees for service providers. Amends definition of served by 3 or more providers. Gives highest priority to applicants the costs of providing broadband service rural area. Limits loan terms to 35 years. Authorizes $25 million annually serving the most rural residents. Prohibits to rural areas, as part of the Enhancement Extends authority to provide loans to (FY2008-12). Authorizes a National eligibility to providers res serving more of Access to Broadband Service in Rural FY2012. Authorizes a National Center Center for Rural Telecommunications than 20% of the market. Permits USDA Areas provisions. [7 U.S.C. 950bb] for Rural Telecommunications Assessment and authorizes $1 million in to require cost-share funding. [Sec. 6110] Assessment and authorizes $1 million in appropriations annually. [Sec. 6110] Adopts House and Senate measure to appropriations annually. [Sec. 6023] Establishes which areas are eligible for authorizes National Center for Rural REA assistance. [Sec. 6105] Telecommunications. [Sec. 6111]. Adopts Senate provision defining REA eligibility. Eligible rural areas exclude town of 20,000 or more. [Sec. 6104] Sec. 601(a) et seq. of the REA, as Authorizes the Community Connect Authorizes the Connect the Nation Act No change to current law. amended, authorizes USDA to provide Grant Program to provide broadband and creates a competitive matching grant CRS-130 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) loans and loan guarantees to electric service for education, public safety, and program to encourage state initiatives for utilities to serve customers in rural areas. health care in rural areas. Authorizes public-private partnerships [Sec. 6201] [7 U.S.C. 950bb(b)] appropriations of $25 million annually and authorizes grants to encourage state (FY2008-12). [Sec. 6024] initiatives [Sec. 6202] to provide broad- band service to rural areas. Authorizes appropriations of $40 million annually (FY2008-12). Sec. 2333 of the 1990 farm bill (Food, Reauthorizes the grant program to assist Reauthorizes appropriations through Adopts Senate provision with changes Agriculture, Conservation, and Trade rural public television stations in making FY2012. Amends provision: (1) adds that only libraries are added as eligible Act, P.L. 101-624) provides grants to the transition from analog to digital library connectivity and public television entities. Makes public television stations non-commercial television that serve broadcast equipment. [Sec. 6028] station digital conversion into the eligible for funding for high-speed rural areas. [7 U.S.C. 950aaa-2] Also, Reauthorizes Telemedicine and Distance notification; (2) species requirements on telecommunications for educational Sec. 2335A authorizes Telemedicine and Learning Services in Rural Areas how financial assistance is to be used and programming in rural areas. [Sec. 6201] Distance Learning Services in Rural through FY2012. [Sec. 6029] criteria for prioritizing; (3) requires Areas by providing loans/grants to USDA to notice the amount of financial schools and medical facilities for telecom assistance available to applicants, among technologies. [7 U.S.C. 950aaa5] other provisions. Renames program the Telemedicine, Library Connectivity, Public Television, and Distance Learning in Rural Areas, and reauthorizes through FY2012. [Sec. 6302] The Con Act, as amended, authorizes No comparable provision. Reauthorizes through FY2012. [Sec. Reauthorizes through FY2012 appropriations for grants for broadcasting 6016] [Sec. 6014] systems, funded at $5 million annually (FY2002-07). [7 U.S.C. 1932(f)] No comparable provision. Directs USDA to prepare a report that Directs the Federal Communications Adopts Senate provision. Requires an develops a comprehensive national Commission, in coordination with update of the report in the third year broadband strategy. [Sec. 6031] USDA, to submit a report to Congress following enactment. [Sec. 6112] Adopts describing a comprehensive rural Senate provision striking an obsolete broadband strategy. [Sec. 6111] reference to dial-up Internet and place the Instructs the U.S. Comptroller General of provision in a separate section. [Sec. to conduct a study of the Rural Utilities 6005]. Deletes Senate provision for a Service administration and of Federal GAO study. assistance for broadband programs, with recommendations. [Sec. 6113] The 2002 farm bill amended the REA to Reauthorizes through FY2012. [Sec. Reauthorizes through FY2012. Expands Adopts the Senate provision changes to authorize USDA to expand 911 access 6022] eligibility to emergency communication make emergency communication CRS-131 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) and make telephone loans for rural providers. Authorizes USDA to use funds equipment providers eligible for loans. emergency services. [7 U.S.C. 940e] made available for telephone or [Sec. 6107] broadband loans; requires USDA promulgate regulations [Sec. 6107] Agricultural-Based Rural Economic Development The 2002 farm bill amended the Con Act Establishes new criteria for loans and Similar to the House bill, but also: Adopts Senate provision with changes to authorize appropriations for direct and loan guarantees, directing USDA to favor defines "under-served community;" that extend the distance a product can guaranteed loans for rural business projects that support local/regionally establishes priorities for projects that travel and be eligible. Defines development. [7 U.S.C. 1926(a)(11)(D)] produced agricultural products. [Sec. support community development and "underserved community" and gives 6010] marketing, distributing, storing, priority to entities providing products to aggregating, or processing a locally- these communities. produced product; sets a per-facility limit [Sec. 6015] of up to $250,000 in loan/loan guarantees to modify/update facilities; and requires USDA to submit an annual report to Congress. [Sec. 6017] No comparable provision. Authorizes appropriations for Similar to the House bill. [Sec. 6018] Adopts the Senate provision with minor Appropriate Technology Transfer for changes to elaborate on the purpose of Rural Areas at $5 million annually the program. [Sec. 6016] (FY2008-12). [Sec. 6011] No comparable provision. No comparable provision. Establishes Artisanal Cheese Centers to Deletes the provision. provide educational technical assistance to eligible cheese manufacturing and marketing businesses. [Sec. 6023] Sec. 231 of the Agricultural Risk Authorizes $6 million subject to Expands the definition of value-added Adopts the Senate provision with Protection Act of 2000 [7 U.S.C. 1621], appropriations annually (FY2008-12). products. Reduces the maximum grant modification. Reserves 10% of funds for as amended by the 2002 farm bill, [Sec. 6027] amount to $300,000. [Sec. 6401] projects benefitting beginning farmers authorizes USDA to make Value-Added and ranchers and socially disadvantaged Agricultural Product Development farmers and ranchers, and 10% of funds Grants to assist agricultural producers to for projects to develop mid-tier value establish businesses to produce value- chains. Provides $15 million in added agricultural products, and provide mandatory funding. [Sec. 6202] for technical assistance and planning. No comparable provision. No comparable provision. Amends the Con Act to provide Adopts Senate provision with technical reimbursement payments to changes. [Sec. 1621] CRS-132 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) "geographically disadvantaged farmers" (e.g., AK, HI) for costs associated with transporting or producing an agricultural commodity. [Sec. 6021] The 2002 farm bill amended the Con Act Reauthorizes through FY2012 and gives Similar to the House bill; also establishes Adopts House provision with technical authorizing a program to restore historic priority to projects that identify, a grant may be made for projects that changes. [Sec. 6020] barns. [7 U.S.C. 2008o(c)] document, and conduct research on rehabilitate or repair historic barns; historic barns and develop and evaluate preserve historic barns; and identify, appropriate techniques or best practices document, survey, and conduct research for protecting historic barns. [Sec. 6017] on historic barns/structures. [Sec. 6025] The 2002 farm bill authorized an Reauthorizes the program and provides No comparable provision Adopts the House provision. Agricultural Innovation Center $6 million annually (FY2008-12). [Sec. 6203] Demonstration program. [7 U.S.C. 1621] [Sec. 6025] Regional Economic Development and Planning The Con Act, as amended, authorizes a Reauthorizes appropriations through Reauthorizes appropriations through Adopts House provision with changes. Delta Regional Authority, providing FY2012. [Sec. 6019] FY2012; amends program to allow for Adds counties to be eligible. Establishes funds for 240 counties in 8 states in grants for health care facility separate Health Care Services section and Mississippi Delta. [7 U.S.C. 2009aa-1] development. [Sec. 6029] defines eligibility to mean Mississippi River Delta region. [Secs. 6024-6025] The 2002 farm bill amended the Con Act Amends program to eliminate Eliminates requirement for a federal Adopts Senate provision with changes. authorizing the Northern Great Plains prioritization of activities to be funded. commission member, unless appointed. Requires the Commission to coordinate Regional Authority to make grants and Modifies federal share of administrative Broadens list of eligible organizations. with tribal leaders if no federal co-chair loans and implement a regional expenses. Eliminates Isolated Areas of Provides assistance to states in providing is names. Defines organizations that may development plan. [7 U.S.C. 2009bb-1] Distress designation. [Sec. 6020] regional plans for renewable energy and serve in the capacity of federal co-chair. transportation. [Sec. 6030] [Sec. 6026] No comparable provision. No comparable provision. Amends the Con Act to authorize a new Adopts Senate provision. Authorizes 3 Northern Border Economic Development additional regional commissions and Commission (VT, NY, NH, and ME); provides them $30 million each FY2002- authorizes appropriations of $40 million 2012. [See Sec. 14217] annually (FY2008-12). [Sec. 6034] The Con Act, as amended, authorizes No comparable provision. Reauthorizes through FY2012. Deletes Senate provision. grants to multi-jurisdictional regional [Sec. 6005] planning and development organizations; $30 million annually through FY2007. CRS-133 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) [7 U.S.C. 1926(a)(23)] The Con Act, as amended, authorizes No comparable provision. Directs USDA to continue Rural Adopts Senate provision. [Sec. 6017] loans and grants for business and Economic Area Partnership Zones (NY, community development. [7 U.S.C. ND, and VT) with areas of high 1932] unemployment/poverty. [Sec. 6019] No comparable provision. Directs USDA, in coordination with the No comparable provision. Adopts House provision. Includes other Department of Transportation, to prepare transportation systems in addition to rail. a report on railroad issues regarding the [Sec. 6206] movement of agricultural products, renewable fuels, and economic development. [Sec. 6032] Rural Entrepreneurship and Business Investment Programs The 2002 farm bill amended the Con Act Reauthorizes through FY2012. [Sec. Similar to the House bill. [Sec. 6002] Adopts Senate provision. [Sec. 6003] to authorize USDA to make Rural 6003] Business Opportunity Grants for business development or labor training in rural areas. Authorizes appropriations of $15 million annually through FY2007. [7 U.S.C. 1926(a)(11)] The Con Act, as amended, authorizes Authorizes USDA to give preference to Similar to House bill. Allows USDA to Adopts Senate provision with minor appropriations for grants to cooperative grant applications that establish centers award multi-year grants to programs as modifications. [Sec. 6013] development centers. [7 U.S.C. for rural cooperative development that deemed by the Secretary; establishes a 1932(e)(5)] demonstrate specified requirements. cooperative research program; and Authorizes $50 million annually creates a reserve for socially (FY2008-12). [Sec. 6009] disadvantaged communities. [Sec. 6015] No comparable provision. Authorizes a new Rural Entrepreneur and Authorizes a new Rural Microenterprise Adopts House provision with changes. Microenterprise Assistance Program. Assistance Program, with mandatory Provides $15 million in mandatory Authorizes $20 million annually spending of $40 million for FY2008, funding. [Sec. 6022] (FY2008-12). [Sec. 6013] available until expended. [Sec. 6022] The 2002 farm bill amended the Con Act, Limits discretionary funding of not more Authorizes a new Rural Collaborative Adopts Senate provision with changes to authorizing the Rural Strategic than $25 million annually FY2008-2012. Investment Program, with mandatory include adding rural heritage as a goal of Investment Program, providing an equity Adds planning grant eligibility for "rural spending of $135 million for grants and the program. Authorizes $135 million in generating program for rural business heritage sites." [Sec. 6021] administrative activities. [Sec. 6032] discretionary funds for the period development modeled on the Small FY2009-2012. [Sec. 6028] CRS-134 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Business Investment Companies of the Small Business Administration. [7 U.S.C. 2099dd et seq.] The 2002 farm bill amended the Con Act, No comparable provision. Reauthorizes through FY2012, with Adopts the Senate provision with authorizing the Rural Business changes: debentures may be pre-paid at modifications. Removes provision Investment Program to make loans/grants any time; distributions may be made to allowing distributions to cover tax through regional investment boards. cover tax liability; USDA fees are limited liability. Limits on funding from certain [7 U.S.C. 2009cc-5] to an application fee of $500; and USDA financial institutions is raised to 25%. will not be required to operate program [Sec. 6027] with other federal agencies. [Sec. 6031] Community Development Programs The 2002 farm bill authorizes grants for Reauthorizes the Rural Firefighters and No comparable provision. Adopts House provision with minor units of general local government, Indian Emergency Personnel Grant Program, modifications. [Sec. 6204] tribes, to pay the cost of training appropriations up to $30 million annually firefighters and emergency medical (FY2008-12). Expands the types of personnel. [7 U.S.C. 1621] eligible entities. [Sec. 6026] The 2002 farm bill amended the Con Act Reauthorizes through FY2012. Reauthorizes through FY2012. Reauthorizes through FY2012. to authorize the National Rural [Sec. 6016] [Sec. 6024] [Sec. 6019] Development Partnership, a state-federal partnership of community rural development entities. [7 U.S.C. 2008m] The 2002 farm bill amended the Con Act No comparable provision. Authorizes $40 million in mandatory Adopts Senate provision, but specifies to authorize loans and grants for spending for loans, grants, and loan that the program not receive mandatory "essential community facilities" (incl. guarantees to construct child day care funding. [Sec. 6004] child day care). [7 U.S.C. 1926(a)(19)] facility grants. [Sec. 6003] The Con Act, as amended, authorizes the No comparable provision Reserves 0.5% of the funds for Deletes Senate provision. Community Facility Grants Program, community facilities to eligible entities limited to $10 million per fiscal year for located in freely associated states or grants to local governments, nonprofits, outlying areas as defined in the and Indian tribes to provide the federal Elementary and Secondary Education share of the cost of developing specific Act of 1965. [Sec. 6008] essential community facilities authorizes funds for essential community facilities. [7 U.S.C. 1926(a) 19] CRS-135 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The Con Act, as amended, authorizes No comparable provision Amends to give priority for community Deletes Senate provision funds for essential community facilities; facility projects that are carried out with a the maximum amount of a community non-Federal share of funds that is facility grant cannot exceed 75% of the substantially greater than the minimum project costs. [7 U.S.C. 1926(a) 19B] requirement, as determined by USDA regulation. [Sec. 6009] The 2002 farm bill amended the Con Act Reauthorizes through FY2012. Amends Reauthorizes through FY2012. Increases Adopts House provision. [Sec. 6007] to authorize USDA to provide cost-share program to direct USDA to establish a the maximum federal grant tribal colleges grants to tribal colleges and universities maximum percentage of the cost of a and universities receive for the cost of for developing essential community facility covered by a grant. Caps non- developing essential community facilities facilities in rural areas and universities, federal support to no more than 5% of the in rural areas to 95%. [Sec. 6007] as defined in the Higher Education Act of facility's total cost. [Sec. 6005] 1965 for developing essential community facilities in rural areas. Authorizes $10 million in annual appropriation for FY2003-07. [7 U.S.C.1926(a)(25)] No comparable provision. No comparable provision Makes technical changes to address Adopts Senate provision with technical funding for cooperative organizations by changes. [Sec. 6012] allowing for business guarantees of loans. [Sec. 6014] No comparable provision. No comparable provision. Provides grants to expand rural Adopts Senate provision with minor employment opportunities for individuals changes. [Sec. 6023] with disabilities. Authorizes $2 million annually (FY2008-12). [Sec. 6028] The Con Act authorizes grants to train No comparable provision. Reauthorizes through FY2012. [Sec. Deletes Senate provision. farm workers in new technologies and in 6027] specialized skills for higher value crops; authorizes appropriations of $10 million annually through FY2007 [7 U.S.C. 1981q(c)] No comparable provision. Amends the Con Act to authorize grants Authorizes loans and loan guarantees to Deletes both House and Senate to improve the technical infrastructure of improve the technical infrastructure of provisions. rural health care facilities at $30 million rural health care facilities. Provides $50 annually (FY2008-12). Identifies types million in mandatory spending (with at of eligible rural health facilities. [Sec. least $25 million for hospitals with less 6012] than 50 acute care beds). [Sec. 6006] CRS-136 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. Authorizes the Secretary of Housing and Adopts Senate provision with changes to Urban Development to provide financial permit GAO to use private audits for assistance for community-based housing review of the Housing Assistance development entities and affordable Council. [Secs. 6301-6305] housing projects, and other requirements. Authorizes appropriations of $10 million (FY2008); $15 million annually (FY2009-10). [Secs. 6501-6505] Other Rural Development Provisions The REA, as amended, authorizes USDA No comparable provision. Inserts "efficiency and" before Adopts Senate provision authorizing to make loans for rural electrification and "conservation;" makes technical changes energy efficiency program. [Sec. 6101]. telephone services and to assist borrower to loan and grants for electric generation; Deletes provision for loans and grants for in implementing improvements to establishes fees for baseload generation electric generation. [Sec. 6102]. Deletes electrical and telephone service. [7 loan guarantees; defers loan payments for Senate provision on fees for loan U.S.C. 901 et seq.] improved energy efficiency; defines guarantees, but requires a study of "rural" and "farm" for borrowing electric generating needs in rural areas. eligibility; and specifies procedures for [Sec. 6113]. Adopts Senate provision to borrowers. [Secs. 6101-6104; 6109] allow energy audits. [Sec. 6104]. Makes technical changes for certain financing. The REA, as amended, authorizes USDA Reauthorizes through FY2012. [Sec Similar to the House bill, but limits Adopts Senate provision. [Sec. 6106] to issue bonds for rural electrical 6030] guarantees to no more than $1 billion and generation or telephone purposes. [7 establishes technical provisions for bond U.S.C. 940c-1(f)] guarantees. [Sec. 6106] The REA, as amended, authorizes USDA No comparable provision. Defines "qualified energy source" and Adopts Senate provision with to make loans for electrical generation in permits loans for electrical generation modifications. Defines "renewable rural areas. [7 U.S.C. 940f] from renewable sources sold to non-rural energy source." [Sec. 6108] residents at sets loan rates. [Sec. 6108] The REA, as amended, authorizes USDA No comparable provision. Defines "substantially underserved trust Adopts Senate provision with changes. to make exceptions for electrification areas" and to authorize USDA to make [Sec. 6105] borrowers to relieve them of regulatory loan rates as low as 2% to qualified requirements. [7 U.S.C. 936e] utilities serving these areas. [Sec. 6112] Title III of the REA establishes agency No comparable provision Requires the Rural Utility Service (RUS) Adopts Senate provision regarding funding procedures for direct loans and follow new procedures in dealing with bonding requirements and strikes the loan guarantee. [7 U.S.C. 940-c 1] borrowers. Allows USDA to adjust other provisions. [Sec. 6109] population limitations related to digital CRS-137 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) mobile wireless service; requires USDA to review bonding requirements for all programs administered by RUS. [Sec 6109] The 1990 farm bill, as amended, No comparable provision. Reauthorizes through FY2012. Deletes Senate provision. authorizes a rural electronic commerce [Sec. 6301] extension program to provide assistance to rural businesses. [7 U.S.C. 59239e] The Housing Act of 1949, as amended, No comparable provision. Amends program to include aquacultural Adopts Senate provision. authorizes a loan and grant program to workers. [Sec. 6420] [Sec. 6205] provide housing construction and assistance to farm labor. [42 U.S.C. 1484(f)(3)] TITLE VII: AGRICULTURAL RESEARCH Structure and Funding of Research, Education, and Extension Existing policy functionally categorized Formally categorizes each existing Formally categorizes each existing Defines the terms capacity, infrastructure, Cooperative State Research, Education, CSREES program as a "capacity CSREES program as an "infrastructure and competitive programs [Sec. 7511]; and Extension Service (CSREES) program" or "competitive program," and program" (i.e., capacity program) or critical base funding; Hispanic-serving programs for state-level research, designates the current level of funding "competitive program," as in the House institutions; non-land grant colleges of education, or extension activities as for each category as "critical base provision. [Sec. 7401] agriculture [Sec. 7101]; and 1862, 1890, "formula funded" or "competitive." funding." [Sec. 7101] and 1994 institutions for the purposes of restructuring the Research, Extension, and Economics mission area as outlined in this act. [Sec. 7501] The 1994 USDA reorganization act Establishes a National Agricultural Directs the Undersecretary to coordinate Reflects the House provision but changes merged the Extension Service with the Research Program Office (NARPO) the programs under the authority of the the name to the Research, Extension, and Cooperative State Research Service to under the Under Secretary, with six sub- ARS and CSREES national program Education Office (REEO). Establishes a establish CSREES. The Agricultural offices organized by research focus. The leaders, as well as the Director of the National Institute of Food and Research Service (ARS) was established provision integrates the administrative National Institute of Food and Agriculture as of October 1, 2009. The in its current form in 1953. Both functions of ARS's and CSREES's Agriculture. [Sec. 7402] new Institute comprises all the programs agencies are under the jurisdiction of the respective National Program Leaders, but of the former CSREES. [Sec. 7511] Undersecretary for Research, Extension, retains the separate agencies. [Sec. 7104] and Economics. [7 U.S.C. 6971] CRS-138 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The National Research Initiative (NRI) Merges the existing NRI and IFAFS CSREES is terminated as an agency; all Amends the statute authorizing the NRI grant program is an expansion of a 1990 grant programs and groups them with all of its competitive and infrastructure to create a new Agriculture and Food farm bill program initially authorized in other competitive grant programs programs are to be administered under Research Initiative to make competitive 1965, funded by annual appropriations 7 currently administered by CSREES to the National Institute of Food and grants for fundamental and applied U.S.C. 450i). The Initiative for Future become the National Institute of Food Agriculture. [Sec. 7401] research, and for purchasing research Agriculture and Food Systems (IFAFS) is and Agriculture (NIFA). [Sec. 7105] equipment. Repeals 7 U.S.C. 7621 a mandatory-funded grant program, (IFAFS) Authorizes $700 million which was first authorized in the annually from FY2008 through FY2012. Agricultural Research, Extension, and [Sec. 7406] Education Reform Act of 1998 (AREERA, P.L. 105-185), reauthorized in the 2002 farm bill. [7 U.S.C. 7621] Matching funds are not required for NRI Creates two categories of research grants; No comparable provision. Requires 50% matching funds for and IFAFS grants; they may be required fundamental research (to be called NRI equipment grants and 100% matching for certain applied research grants. grants); and applied research (to be called funds for applied research grants on [IFAFS 7 U.S.C. 7621; NRI 7 U.S.C. IFAFS grants). Matching funds are topics that are commodity-specific and 450(b)] required for IFAFS grants, not for NRI not of national scope. [Sec. 7406] grants. Authorizes $500 million in annual appropriations, and transfers mandatory IFAFS funds to support the merged NRI/IFAFS program. [Sec. 7106] Most research and extension programs Requires the President to submit an Directs the Under Secretary for Research, Requires the President to submit an appear as individual line items in the annual budget making a single line item Education, and Economics to submit a annual budget making a single line item President's annual budget request. request for capacity programs and a "roadmap" that, among other things, request for all programs under the single line item request for competitive describes recommended funding for Research, Extension, and Economics programs. [Sec. 7102] competitive programs and infrastructure mission area. Retains Senate language programs as unified categories, with regarding a "roadmap." Recommends some flexibility in implementation. [Sec. that budget emphasis within the request 7402] for capacity/infrastructure base funding be on certain institutions, and within competitive base funding, on emerging problems. [Sec. 7504 and 7506] Sec. 1403 of the National Agricultural Adds integrating and organizing all No comparable provision. Deletes House provision. Research, Extension, and Teaching USDA research, extension, and education Policy Act of 1977 (NARETPA, Title programs; minimizing duplication; and XIV of P.L. 97-98) sets out the purposes maximizing cooperation to the purposes of agricultural research and extension. of the Department's research mission. [7 U.S.C. 3101] [Sec. 7103] CRS-139 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Prior law limited eligibility for formula Expands eligibility for these programs to Requires the "roadmap" to include Adopts Senate provision. [Sec. 7504] funded and other non-competitive public non-land grant institutions consideration of the needs of ASCARR research, extension, and education offering 4-year degrees in agriculture institutions in addition to those of the programs to 1862 and 1890 institutions, (American Association of State Colleges 1862, 1890, 1994, and Hispanic-serving 1994 institutions (tribally controlled of Agriculture and Renewable Resources, institutions. [Sec. 7402] colleges), and Hispanic-serving or ASCARR institutions). [Sec. 7102] institutions. [7 U.S.C. 361a, 343 ] Prior law authorized capacity-building Authorizes the appropriation of such No comparable provision. Authorizes capacity-building grants to grant programs for 1890 and 1994 sums as necessary for a new capacity- ASCARR institutions [Sec. 7138]; and institutions, and Hispanic-serving building grant program for ASCARR changes the term from ASCARR institutions. [7 U.S.C. 3152] institutions. [Sec. 7107] institutions to non-land grant college of agriculture (NLGCA) institutions. [Sec. 7101] Sec. 1417 of NARETPA makes land Expands eligibility for grants/fellowships Similar to the House bill. [Sec. 7007] Adopts House provision. [Sec. 7109] grant and non-land grant, high minority for food and agricultural sciences enrollment, and secondary and post- education to include Agriculture in the secondary institutions eligible for higher K-12 Classroom programs, nonprofit education grants. [7 U.S.C. 3152] organizations, and other institutions of higher education. [Sec. 7206] The Hatch Act and Smith-Lever Acts set Sets 25% as the minimum amount of No comparable provision. Deletes House provision. the minimum amount of federal formula federal formula funds that must be funds spent on multi-state research and expended on multistate research and extension projects at either 25% or twice extension projects. [Sec. 7603] the percentage of state matching funds, whichever is less. [7 U.S.C. 361a, 343 ] Annual work plans are required from Requires USDA to prepare a report for Similar to the House bill. [Sec. 7503] Requires a review of annual plans of states to receive federal funds under Congress on how to streamline the work, but does not require a report on NARETPA, the Hatch Act of 1887 (for submission, reporting requirements, and how to streamline the plan-of-work research), and the Smith-Lever Act (for implementation of plan-of-work process. [Sec. 7505] extension). [7 U.S.C. 3101, 361a, 343 ] requirements. [Sec. 7602] The 1998 reseach act (AREERA) Provides for the continuation, under No comparable provision. Deletes House provision. requires CSREES to conduct merit NIFA, of the mandatory merit and peer reviews of non-competitive research and review processes for non-competitive and extension grants, and peer reviews of competitive grants. [Sec. 7601] grants. [7 U.S.C. 7613] CRS-140 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Sec. 1462(a) of NARETPA limits the Amends Sec. 1462(a) to apply the 19% Raises the limitation on reimbursement Raises the limitation on reimbursement amount of indirect costs that USDA limitation on indirect cost reimbursement of indirect costs from 19% to 30% for of indirect costs from 19% to 22%. reimburses to institutions that are to any grant the institution receives, not competitively awarded research, [Sec. 7132] awarded research, extension, and just competitively awarded grants. extension, and teaching grants. teaching grants to 19%. [7 U.S.C. 3310] [Sec. 7225] [Sec. 7027] Sec. 1408(g)(1) of NARETPA authorizes Increases authorized appropriations for Similar to the House bill. [Sec. 7002] Increases the maximum annual the National Agricultural Research, the Advisory Board from $350,000 to appropriations for the Advisory Board to Extension, Education, and Economics $500,000 annually. [Sec. 7201] $500,000. Reduces the number of Board Advisory Board. [7 U.S.C. 3123] members from 31 to 24. Adds represen- tation from crop, livestock, aquaculture producer organizations. [Sec. 7102] Subtitle K of NARETPA authorizes No comparable provision. Authorizes $19 million annually through Adopts Senate provision. [Sec 7529] miscellaneous programs. [7 U.S.C. 3311] FY2012 for grants to the Consortium for Agricultural and Rural Transportation Research and Education. [Sec. 7051] Sec. 103(a) of AREERA authorizes peer No provision. No provision. Amends AREERA to prohibit and merit review of research and consideration of the availability of extension grant applications. [7 matching funds in reviewing grant U.S.C.7613(a)] proposals. [Sec. 7301] Provisions Affecting Certain Research Institutions Sec. 1417 of NARETPA authorizes Specifies that the University of the Similar to the House bill. [Sec. 7004] Makes UDC eligible to compete for food grants/fellowships to land grant colleges District of Columbia (UDC) be eligible to and agricultural sciences education and universities for food and agricultural receive education grants and fellowships. grants. [Sec. 7106] sciences education. [7 U.S.C. 3152] [Sec. 7204] Sec. 1447 of NARETPA authorizes Extends eligibility to UDC for grants to Similar to the House bill. [Sec. 7020] Authorizes $750,000 in annual grants to upgrade agriculture and food upgrade facilities, and authorizes appropriations to upgrade agriculture and science facilities at the 1890 institutions. appropriations of $750,000 annually food science facilities at UDC. [7 U.S.C. 3222b] through FY2012. [Sec. 7212] [Sec. 7124] The District of Columbia Public Post- Makes UDC eligible to receive funds for Similar to the House bill. [Sec. 7313] Makes UDC eligible for EFNEP grants. secondary Education Reorganization Act the Expanded Food and Nutrition [Sec. 7417] (P.L. 93-471) designates UDC as a land Education Program (EFNEP). [Sec. grant institution, with certain exceptions. 7512] [88 Stat. 1423] CRS-141 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The Hatch Act of 1887 authorizes federal Exempts UDC from the matching funds Requires 50% matching funds from the Adopts Senate provision. [Sec. 7404] funding for agricultural research in the requirement for Hatch Act funds. District of Columbia in order for UDC to states/U.S. territories. [7 U.S.C. 361a] [Sec. 7513] be eligible for Hatch Act funds. [Sec. 7304] The 2002 farm bill amended NARETPA Increases the level of required federal Identical to the House bill. Adopts House and Senate provision. Sec. 1444(a)(2) to require that (1) federal support for (1) extension at the 1890 [Sec. 7017-7018] [Sec. 7121-7122] support for extension at the 1890 institutions to 20% of the amount institutions be at least 15% of the amount appropriated for 1862 extension appropriated for extension at 1862 programs [Sec. 7215], and (2) research at universities [7 U.S.C. 3221], and (2) the 1890 schools to 30% of the amount federal support for research at the 1890 appropriated for research at the 1862 institutions be at least 25% of the amount schools [Sec. 7216] appropriated for research at the 1862 universities. [7 U.S.C. 3222] Sec. 1434(b) of NARETPA defines No comparable provision. Specifies that 1890 institutions are Adopts Senate provision. [Sec. 7120] which institutions are eligible for animal eligible to receive funding for animal health/disease funding. [7 U.S.C. 3196] health and disease research. [Sec. 7016] The 2002 farm bill amended NARETPA Makes permanent the requirement that Similar to the House bill. [Sec. 7022] Extends 100% matching funds require- Sec. 1449 to phase in increasing state states provide a 100% match to federal ment for research and extension at the matching funds for federal formula funds funds for research and extension at the 1890 colleges through FY2012 and for research and extension at the 1890 1890 colleges. [Sec. 7220] amends NARETPA to update permanent institutions, reaching the 100% matching law and clarify current requirement of level in FY2007. [7 U.S.C. 3222d] providing equal matching funds from non-federal sources. [Sec. 7127] Sec. 3 of the Smith-Lever Act (extension) No comparable provision. Makes 1890 institutions eligible for the Adopts Senate provision. Also stipulates authorizes federal funds for cooperative Children, Youth, and Families Education that funds for Smith-Lever 3(d) programs state extension programs. [7 U.S.C. 343] and Research Network funds (of which CYFERNet is one) are (CYFERNet). [Sec. 7303] competitively awarded. [Sec. 7403] The McIntire-Stennis Cooperative No comparable provision. Makes the 1890 institutions eligible for Adopts Senate provision. [Sec. 7412] Forestry Act (P.L. 87-788) authorizes McIntire-Stennis forestry research funds. certain forestry research programs. [16 [Sec. 7310] U.S.C. 582] Sec. 1447 of NARETPA authorizes Authorizes $8 million annually for grants No comparable provision. Amends NARETPA to authorize grants to upgrade facilities at 1890 to land grant institutions in insular areas assistance to insular area land grant institutions. [7 U.S.C. 3222] to upgrade agriculture and food science institutions, and authorizes $8 million in CRS-142 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) facilities. [Sec. 7237] annual appropriations through FY2012. [Sec. 7125] Funding for tropical and subtropical No comparable provision. Within miscellaneous programs, adds Adds Tropical and Subtropical research is provided under the Special authority for a Tropical and Subtropical Agricultural Research to the list of high- Research grant program to the land grant Agricultural Research competitive grant priority research and extension initiatives institutions in U.S. insular areas. [7 program limited to the insular area land under Sec. 1672 of the 1990 farm bill. U.S.C. 450i] grant institutions and divided equally Extends authorization of Sec. 1672 between the Caribbean and Pacific through FY2012. [Sec. 7204] basins. Authorizes appropriations of such sums as necessary. [Sec. 7038] Subtitle K of NARETPA authorizes No comparable provision Establishes a grant program for research, Adds Agricultural Development in the miscellaneous programs. [7 U.S.C. 3311] extension, and education programs at American-Pacific Region to the list of land grant institutions in the American high-priority research and extension Pacific region (AK, HI). [Sec. 7041] initiatives. [Sec. 7204] Sec. 1425(c)(2)(B) of NARETPA sets a Authorizes annual appropriations of $90 Establishes UDC's eligibility to receive UDC is eligible to receive EFNEP funds minimum distribution level and a formula million; sets a minimum $100,000 annual EFNEP funds. [Sec. 7313] The bill does [Sec. 7417]. Amends NARETPA to for distribution of any annual distribution in EFNEP funds to each land not contain other comparable provisions increase the authorization of appropriation for the Expanded Food and grant institution; sets minimum funding in the House bill. appropriations to $90 million annually. Nutrition Education Program (EFNEP) in percentages for the 1890 institutions Authorizes each institution to receive excess of the previous year's level. [7 through FY2013; establishes a formula to $100,000as a base amount. [Sec. 7116] U.S.C. 3175] distribute funds to states after FY2013; and establishes UDC's eligibility to receive EFNEP funds. [Sec. 7604] Sec. 1417(b)(4) of NARETPA authorizes Adds extension capacity-building as one Similar to the House bill. [Sec. 7005] Adopts House provision. [Sec. 7107] capacity-building grants for research and of the purposes for which grants and teaching at high minority-enrollment fellowships may be made to high institutions. [7 U.S.C. 3152] minority-enrollment institutions. [Sec. 7605] Sec. 1455 of NARETPA authorizes Authorizes the grant program through Amends NARETPA to require that Adopts Senate provision. [Sec. 7128] grants to Hispanic-serving institutions to FY2012 at $20 million annually. [Sec. Hispanic-serving institutions compete for strengthen educational capacity, and 7221] strengthening grants; and increases the authorized $20 million annually in authority for appropriations to $40 appropriations through FY2007. million annually through FY2012. [Sec. [7 U.S.C. 3241] 7023] CRS-143 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. Establishes an endowment fund for Similar to the House bill. [Sec. 7024] Amends NARETPA to establish an Hispanic-serving institutions for basic endowment fund, institutional capacity- institutional support. Authorizes building program, and a competitive appropriations through FY2012 for grant grant program to benefit Hispanic- programs and for collaborative extension serving agricultural colleges and projects at 1862 institutions. [Sec. 7222] universities; authorizes necessary funds to be appropriated through FY2012. [Sec. 7129] The definition of "Hispanic-serving Changes the definition of a Hispanic- Similar to the House bill. [Sec. 7001] Adopts House and Senate provision. institution" in NARETPA is based on a serving institution in NARETPA from [Sec. 7101] formula found in Sec. 316(b)(1) of the one based on a formula to one based on Higher Education Act of 1965. [20 the total enrollment of students being at U.S.C. 1059] least 25% Hispanic, as it is in the Higher Education Act of 1965. [Sec. 7234] Sec. 1458 of NARETPA authorizes Extends eligibility for participation in Similar to the House bill. [Sec. 7025] Adopts House and Senate provision and USDA agencies and land grant international research, extension, and adds anti-hunger, nutrition, and food institutions to participate in international teaching programs to Hispanic-serving availability to the purposes of research, extension, and teaching institutions. Gives priority to institutions international programs. [Sec. 7130] programs. [7 U.S.C. 3291] with existing cooperative agreements with federal or state agencies. [Sec. 7223] Organic Agricultural Research Sec. 1672B of the 1990 farm act, as Adds emphasis on the environmental Provides $16 million annually in Reflects the House bill language amended, provides $3 million annually in impact of organic farming and on new mandatory funds through FY2012 to concerning new areas of program mandatory funds to support an organic plant varieties suited to organic farming. support the organic research and emphasis. Provides a total of $78 million agriculture research and extension Authorizes annual appropriations through extension initiative. [Sec. 7104] in mandatory funds in Fiscal Years 2009- initiative. [7 U.S.C. 5925] FY2012 of $25 million; and provides $25 2012. [Sec. 7206] million annually in mandatory funds through FY2012. [Sec. 7310] No comparable provision. Sense of Congress that in -house funding Similar to the House bill. [Sec. 7505] Deletes House and Senate provisions. for ARS research on organic agriculture be at least commensurate with its share of the U.S. food market. [Sec. 7608] Sec. 7405 of the 2002 farm bill No comparable provision. Authorizes annual appropriations of $30 Provides $18 million in mandatory funds established the Beginning Farmer and million through FY2012; permits grants for the program in FY2009, and $19 CRS-144 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Rancher Development program. for farmers/ranchers who convert to million in mandatory funds in FY2010- [7 U.S.C. 3319f] certified organic production. [Sec. 7309] 2012. Authorizes $30 million in annual appropriations (FY2008-12). [Sec. 7410] Specialty Crops Research The Specialty Crop Competitiveness Act Expand information that the specialty No comparable provision. Adopts House provision. [Sec. 7103] of 2004 (P.L. 108-465) established a crop committee provides the Advisory specialty crop committee to inform the Board to include a comprehensive Advisory Board on research needs. analysis of the specialty crop sector. [7 U.S.C. 3123a(c)] [Sec. 7204] Sec. 1672 of the 1990 farm act authorizes Adds new specialty crop research Similar to the House bill, but authorizes Provides $230 million in mandatory research and extension grants on initiative to the 1998 research act $16 million annually in mandatory funds funds over 5 years for a specialty crop specialty crops as a high-priority research (AREERA). Authorizes annual through FY2012. [Sec. 7211] research and extension initiative; area. [7 U.S.C. 5925] appropriations of $100 million through provides $25 million for grants to FY2012; provides $215 million annually research fresh produce food safety; and in mandatory funds. [Sec. 7411] authorizes an additional $100 million in appropriated funds annually. [Sec. 7311] Food safety research is part of USDA's Authorizes USDA to make competitive No comparable provision. Includes a food safety research emphasis research, extension, and education grants to universities/others to design and in Sec. 7311, above. mission area, and is included in both implement programs to improve the intra- and extramural programs. safety of fresh-cut produce; authorizes appropriation as necessary, with $25 million annually in mandatory funds through FY2012. [Sec. 7511] Section 1419A of NARETPA authorizes Requires the Food and Agricultural Amends NARETPA to specify four Adopts Senate provision. [Sec. 7111] the Secretary to enter into a wide variety Policy Research Institute (a university- university-based policy research centers of grants and other collaborative based economic research institute, in part as eligible to receive grants under agreements with private and public supported by federal funds) to establish a existing authority. Adds specialty crops educational institutions, corporations, and corollary institute specializing in policy issues as a priority focus for these individuals to conduct independent specialty crop policy research (drawing centers' activities. [Sec. 7009] research and public policy analysis on on university expertise in states with food and agriculture. [7 U.S.C. 3155] specialty crop production). [Sec. 7235] Bioenergy Research No comparable provision. Establishes a renewable energy No comparable provision. Amends NARETPA to authorize the committee to report to the Advisory establishment of a permanent renewable CRS-145 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Board concerning research needs and energy subcommittee to the Advisory budget recommendations. [Sec. 7203] Board. [Sec. 7104] Sec. 404 of the 1998 research act Extends this authority through 2012. Contains an identical provision. [Sec. Adopts House and Senate provision. (AREERA) authorizes public-private [Sec. 7403] 7204] [Sec. 7304 cooperative agreements to conduct pilot projects to develop biobased products with commercial potential, and authorizes the appropriation of such sums as necessary. [7 U.S.C. 7624] Section 1419 of NARETPA authorizes Establishes a bioenergy and biobased No comparable provision. Repeals the authority under NARETPA grants for research on production and products research initiative, coordinated [Sec. 7110] and amends the 1998 marketing of alcohols and industrial by the National Agricultural Research research act (AREERA) to authorize a hydrocarbons from agricultural Program Office, focused on the bioenergy and biobased products commodities and forest products. [7 conversion of biomass to renewable research initiative as in the House U.S.C. 3154] fuels. Authorizes $50 million annually in provision. Incorporates several appropriations through FY2012. [Sec. additional provisions from House bill and 7410] Senate amendment energy titles authorizing research on: 1) on-farm renewable energy [H. Sec. 9010 and S. Sec. 9011]; 2) using sweet sorghum and switchgrass to supplement corn as an ethanol feedstock [H. Sec. 9020]; 3) regional biomass crop experiments [S. Sec. 9010]; 4) renewable energy at a laboratory in Colorado [S. Sec. 9022]; and 5) farm energy demonstration projects [S. Sec. 9025]. [Sec. 7207] No comparable provision. Establishes a New Era Rural Technology Similar to the House bill. [Sec. 7043] Adopts House provision. [Sec. 7137] Program that makes grants available to rural community colleges and technical centers to support training a workforce in bioenergy, renewable energy, and pulp and paper manufacturing; authorizes appropriation as necessary. [Sec. 7312] CRS-146 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Other Research Provisions Related to Bioenergy Programs -- see section on Energy Programs (below) Other Research Provisions No comparable provision. Authorizes USDA to establish animal Requires USDA to issue a permit to the Adopts Senate provision, but replaces the disease laboratories, conduct research on Department of Homeland Security (DHS) tern National Bio- and Agro-defense Lab diseases that constitute a threat to the for work on live Foot and Mouth Disease with more general language. [Sec. 7524] livestock industry, and gives USDA virus at the National Bio- and Agro- discretion over the importation and defense Lab; clarifies only the Secretary movement of live viruses. [Sec. 7108] of Agriculture has the authority to grant and revoke such permits. [Sec. 11016] Sec. 1433(a) of NARETPA authorizes Requires the Secretary to encourage No comparable provision. Adopts House provision. [Sec. 7118] animal health and disease research. [7 cooperation among institutions eligible to U.S.C. 3195(a)] receive these funds. [Sec. 7213] The ARS National Animal Disease No comparable provision. Authorizes $16 million annually through Deletes Senate provision. Center in Ames, Iowa, is currently the FY2012 to construct a higher-level bio- highest bio-security lab for animal secure ARS animal health and disease disease research. facility in Bozeman, MT. [Sec. 7508] Sec. 1415A of NARETPA authorizes a No comparable provision. Amends program to require USDA to Adopts Senate provision and clarifies that program to defray the school loans of favor large and mixed animal practitioner large and mixed animal practitioner veterinary medical school graduates who shortages in rural areas in initial phases shortages have priority. Requires USDA agree to serve for limited time periods in of program implementation. [Sec. 7003] to return to the Food Safety and under-served areas. [7 U.S.C. 3151] Inspection Service fund that had been transferred to CSREES. [Sec. 7105] Sec. 1672(e) of the 1990 farm bill, as Adds nine new subjects to the list of high Adds 14 subjects to the list of high Adopts House and Senate lists of priority amended, authorizes USDA to make priority research and extension areas. priority research and extension areas. areas to add 23 subjects. Eliminates grants for research and extension projects [Sec. 7305] [Sec. 7102] certain specified areas from the list in a variety of high priority topic areas. enacted in the 1990 farm bill; includes [7 U.S.C. 5925] some of these in the larger priority area categories in the new law. [Sec. 7204] Sec. 410 of the 1998 research act Amends the 1998 act to encourage Reauthorizes appropriations through Adopts House provision. [Sec. 7309] (AREERA) provides a one-time transfer flexibility in making grants to youth FY2012. [Sec. 7209] of $8 million in mandatory funds to make organizations; allows the organizations to grants to four national youth groups to redistribute grant funds among support pilot projects in rural areas; also themselves; authorizes the appropriation provides authority for appropriations of such sums as necessary through CRS-147 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) through FY2007. [7 U.S.C. 7630] FY2012. [Sec. 7408] A number of international agricultural Authorizes appropriations to establish a Similar to the House bill. [Sec. 7042] Adopts Senate provision, which amends research exchange opportunities currently Borlaug International Agricultural NARETPA to authorize the program and are available under several different Science and Technology Fellowship annual appropriations. [Sec. 7139] statutes. Program to promote collaboration between U.S. and foreign agricultural professionals and international research systems. [Sec. 7606] The Act of March 4, 1927, authorizes the Authorizes the construction of a Chinese Also authorizes construction of a Chinese Adopts House provision. [Sec. 7415] establishment of the National Arboretum. garden at the National Arboretum, using garden at the arboretum, but forbids use [20 U.S.C. 191] federal appropriations. [Sec. 7509] of appropriated funds. [Sec. 7312] Subtitle K of NARETPA authorizes No comparable provision. Authorizes appropriations for grants to Adopts Senate provision. [Sec. 7523] miscellaneous programs. [7 U.S.C. 3311] nonprofits to distribute donated vegetable seeds to community food projects in low- income areas. [Sec. 7046] No comparable provision. Authorizes appropriations for grants to Included in Sec. 7204 (high priority support farm safety education/outreach. research and extension areas). [Sec. 7047] No comparable provision. Authorizes appropriations for grants to Included in Sec. 7204 (high priority increase participation of women/under- research and extension areas). represented minorities from rural areas in science, technology, engineering, and math education/careers. [Sec. 7408] No comparable provision. Establishes a National Farm Management Authorizes competitive research and Center to create a public benchmarking extension grants to improve farm database and to improve farm financial management skills and create a financial management training. [Sec. 7037] management database. [Sec. 7208] No comparable provision. Authorizes appropriations for a research Adopts Senate provision. [Sec. 7525] program to develop pharmaceuticals and agrichemicals from plant, marine, and microbial sources. [Sec. 7049] No comparable provision. Authorizes a $1 million annual Adds the purposes of the Senate appropriation to support nonprofit provision to the authorization for CRS-148 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) research on international anti-hunger and international agricultural research, nutrition activities. [Sec. 7050] extension, and education. [Sec. 7130] No comparable provision. Authorizes appropriations for Adds food systems veterinary medicine competitive grants to establish regional to the list of high priority research and centers of excellence in food systems extension areas. [Sec. 7204] veterinary medicine. [Sec. 7052] No comparable provision. Authorizes appropriations for land grant Adds regional centers of excellence to institutions to establish regional centers the list of high priority research and of excellence for agricultural commo- extension areas. [Sec. 7204] dities (incl. poultry sustainability); requires matching funds. [Sec. 7039] No comparable provision. Establishes a farm and ranch stress Adopts Senate provision. [Sec. 7522] assistance network to provide behavioral programs to U.S. producers. [Sec. 7044] No comparable provision. Establishes a grant program focusing on Adopts Senate provision with additional critical rural and agricultural language to give priority to collaborative transportation and logistics issues facing efforts. [Sec. 7529] producers and rural businesses. [Sec. 7051] No comparable provision. Prohibits USDA from disposing of land No comparable provision. Adopts House provisions. [Sec. 7502 and or facilities at the Grazinglands Research 7503] Laboratory in El Reno, OK. [Sec. 7109] Authorizes USDA to lease land at the El Reno facility to the University of Oklahoma. [Sec. 7111] No comparable provision. Requires scientists conducting research No comparable provision Deletes provision. on biotech crops to receive training in USDA's biotech regulatory regime. Authorizes the certification of third-party providers of such training. [Sec. 7110] No comparable provision. Authorizes appropriations for a grant to No comparable provision. Deletes provision. update USDA's Nutrient Composition Handbook for Beef. [Sec. 7112] CRS-149 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. Sense of Congress that there should be No comparable provision. Deletes provision. greater support for USDA human nutrition research. [Sec. 7113] Sec. 1433 of NARETPA authorizes Encourages setting priorities for animal No comparable provision. Contains the House provision. animal health and disease research. health/disease research through regular [Sec. 7119] [7 U.S.C. 3195] regional/national meetings. [Sec. 7213] Sec. 1424(b) of NARETPA authorizes a Adds as a focus of human nutrition No comparable provision. Adopts House provision. [Sec. 7113] human nutrition research initiative. research examination of the efficacy of [7 U.S.C. 3174] current agriculture policies in promoting the health and welfare of economically disadvantaged populations. [Sec. 7236] Sec. 1672(d) of the 1990 farm bill, as Requires USDA to give funding priority No comparable provision. Adopts House provision. [Sec. 7203] amended, encourages USDA to give to collaborative research grants. [Sec. funding priority to high-priority 7303] collaborative research proposals. [7 U.S.C. 5925] The 1990 farm bill authorizes research Changes the focus of aflatoxin research No comparable provision. Adds the House bill language to the and extension on aflatoxin. and extension from controlling aflatoxin authority for high priority research and [7 U.S.C. 5925] to improving and commercializing extension projects on aflatoxin. [Sec. control technologies. [Sec. 7304] 7204] The 1990 farm bill, as amended, Adds dairy cattle waste and regional Establishes a consortium of northeast Adds House bill language to section authorizes a nutrient management concerns to the purposes of the nutrient colleges for research on dairy nutrient reauthorizing the nutrient management research and extension initiative. [7 management research and extension management and energy production. research and extension initiative. U.S.C. 5925] initiative. [Sec. 7307] [Sec. 9023] Establishes a southwest [Sec. 7205] Deletes Senate provisions. regional dairy, environment, and private land research program. [Sec. 11092] Sec. 1417(i) of NARETPA authorizes a No comparable provision. Adds extension and research to the award Adopts Senate provision. [Sec. 7108] National Food and Agricultural Sciences program and requires at least one cash Teaching Awards. [7 U.S.C. 3152] award be made per year. [Sec. 7006] Sec. 604 of AREERA, the 1998 research No comparable provision. Authorizes annual appropriations of $2.5 Adopts Senate provision. [Sec. 7312] act, authorizes the Food Animal Residue million through FY2012. [Sec. 7213] Avoidance Databank. [7 U.S.C. 7642] CRS-150 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) USDA's FY2000 appropriations act (P.L. No comparable provision. Permits the Alaskan consortia of Adds Senate bill language to reauthori- 106-7) authorizes grants for education at institutions to designate fiscal agents for zation of the education grants program at Alaska Native- and Native Hawaiian- each member institution, and to allocate Alaska Native- and Native Hawaiian- serving institutions. [7 U.S.C. 3242] funds among members. [Sec. 7308] serving institutions. [Sec. 7112] In 1994, the Federal Crop Insurance No comparable provision. Gives USDA authority to exchange, sell, Adopts Senate provision. [Sec. 7408] Reform and Department of Agriculture or otherwise dispose of ARS' animals, Reauthorization Act (P.L. 103-354) animal products, plants, and plant reorganized USDA, including the merger products (except for seeds, germplasm). and realignment of certain research [Sec. 7314] Authorizes a pilot program agencies. [7 U.S.C. 6971] to allow property at the ARS research center and the National Agricultural Library to be leased out. [Sec.7316] Research on antibiotic-resistant bacteria No comparable provision. Authorizes a competitive grant program Adopts Senate provision. [Sec. 7521] in livestock is authorized under general for targeted research on antibiotic- statutory authority for federal and state resistant bacteria in livestock. [Sec. 7317] agricultural research. No comparable provision. No comparable provision. Directs USDA to prepare a report, in Adopts Senate provision. [Sec. 7527] coordination with other federal agencies, on the prevalence of areas in the U.S. with limited access to affordable and nutritious food, and to make recommendations. [Sec. 7504] No comparable provision. No comparable provision. Requires USDA to prepare a report on: Deletes provision. (1) domestic and international markets for products from cloned animals; and (2) the safety of foods from cloned animals (particularly milk). [Sec. 7507] No comparable provision. No comparable provision. Provision concerning the recruitment and Adopts Senate provision. [Sec. 7528] hiring processes for ARS and the Forest Service, but does not directly affect research policy. [Sec. 7502] No comparable provision. No comparable provision. Provision concerning the National No comparable provision. Finance Center and National Information Technology Center, but not related to USDA's research mission.[Sec. 7502] CRS-151 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Extended Program Authorizations Program under prior law in some cases. Comparable provision in some cases. Comparable provision in some cases. -- Human nutrition intervention and health promotion research program [Sec. 7114] -- Pilot research program to combine medical/agricultural research [Sec. 7115] -- Continuing animal health and disease research [Sec.7117] -- Grants to upgrade agricultural and food sciences facilities at 1890 land grant colleges, incl. Tuskegee University [Sec. 7123] -- National research and training virtual centers [Sec. 7126] -- Competitive grants for international agricultural science and education [Sec. 7131] -- Equipment grants [Sec. 7133] -- University research [Sec. 7134] -- Extension Service [Sec. 7135] -- Supplemental and alternative crops [Sec. 7136] -- Aquaculture assistance programs [Sec. 7140] -- Rangeland grants [Sec. 7141] -- Authorization for biosecurity planning/response [Sec. 7142] -- Resident instruction & distance education grants program for insular area institutions of higher education [Sec. 7143] -- National genetic resources program [Sec. 7201] -- National Agricultural Weather Information System [Sec. 7202] -- Assistive technology program for farmers with disabilities [Sec. 7210] CRS-152 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) -- National Rural Information Center Clearinghouse [Sec. 7212] -- Integrated research, education, and extension competitive grants program [Sec. 7306] -- Fusarium graminearum grants [Sec. 7307] -- Bovine Johne's disease control program [Sec. 7308] -- Agricultural biotechnology research and development for developing countries [Sec. 7310] -- Office of pest management policy [Sec. 7313] -- Critical Agricultural Materials Act [Sec. 7401] -- Equity in Educational Land-Grant Status Act of 1994 [Sec. 7402] -- Agricultural Experiment Station Research Facilities Act [Sec. 7405] -- Agricultural Risk Protection Act of 2000 [Sec. 7407] -- National Aquaculture Act of 1980 [Sec. 7414] -- National Agricultural Research, Extension, and Teaching Policy Act Amendments of 1985 [Sec. 7416] Repeal of Program Authorizations Program under prior law in some cases. Comparable provision in some cases. Comparable provision in some cases. -- Agricultural telecommuni-cations program [Sec. 7209] -- Research on honey bee diseases [Sec. 7211] -- Partnerships for high value agricultural product quality research [Sec. 7302] -- Precision agriculture [Sec. 7303] -- Biobased products [Sec. 7304] -- Public education regarding the use CRS-153 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) of biotechnology in producing food for human consumption [Sec. 7411] TITLE VIII: FORESTRY Cooperative Forestry Programs The Forest Land Enhancement Program No reauthorization provision, allowing No reauthorization provision, allowing No reauthorization provision, allowing provided financial aid for private forest program to terminate. program to terminate. program to terminate. practices (mandatory spending of $100 million for FY2002-07). Only about half of $100 million was spent; the remainder was borrowed for firefighting or cancelled by Congress. [16 U.S.C. 2103] General authority is provided for under the Cooperative Forestry Assistance Act of 1978 (CFAA, P.L. 95-313), as amended, authorizes USDA to establish a variety of cooperative programs to protect and manage nonfederal forest lands. [16 U.S.C. 2101-2114] No comparable CFAA provision. Adds new priorities: (1) conserving Similar to the House bill, but with subtle Adopts House provision with working forests, (2) protecting forests differences in priorities for protecting and modifications. [Sec. 8001] from natural threats and restoring forests, restoring forests and for enhancing and (3) enhancing public benefits from benefits. [Sec. 8001] private forests. [Sec. 8001] No comparable CFAA provision. No comparable provision. Authorizes new cost-share grants for Adopts Senate provision, creating the local governments, tribes, and non-profits Community Forest and Open Space to acquire lands threatened by conversion Conservation Program. [Sec. 8003] to non-forest uses and provide public benefits. [Sec. 8002] No comparable CFAA provision. Adds requirements for financial Adds new requirements for financial Adopts House provision with assistance: state-wide forest assessment assistance: statewide forest plan to modifications. [Sec. 8002] of conditions, trends, threats, and identify critical areas; address regional priorities and strategies to address threats needs; and plan for managing and moni- and describe resources. [Sec. 8002] toring forests, achieving national priorities. [Sec. 8004] CRS-154 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Sec. 2109(d)(1) of the CFAA defines Replaces "Trust Territory of the Pacific Same as the House bill. [Sec. 8005] Adopts House provision. [Sec. 8004] "State" to include "Trust Territory of the Islands" with "the Federated States of Pacific Islands." [16 U.S.C. 2109] Micronesia, the Republic of the Marshall Islands, the Republic of Palau." [Sec. 8003] Subsections of the CFAA provide for a Replaces USDA Committee with new Exempts projects proposed by Indian Adopts House provision with USDA Coordinating Committee, to Forest Resource Coordinating Com- tribes from State Coordinating Com- modifications. [Sec. 8005 & 8006] coordinate among agencies, and for State mittee, to coordinate among agencies, mittee recommendations. [Sec. 8003] Coordinating Committees, to coordinate state agency representatives, and others. with state foresters and other interested [Sec. 8004] Modifies state committee parties. [16 U.S.C. 2113] duties to include recommendations concerning the new state-wide forest assessment and strategies. [Sec. 8005] No comparable CFAA provision. Requires a Secretary-determined portion No comparable provision. Adopts House provision. [Sec. 8007] of funds to be allocated competitively among states. [Sec. 8006] No comparable CFAA provision. Authorizes up to 5% of funding for cost- No comparable provision. Adopts House provision. [Sec. 8008] shared competitively-allocated innova- tive education, outreach, or technology transfer projects. [Sec. 8006] CFAA permanently authorized an Emer- Authorizes a new Emergency Reforesta- Establishes new emergency landscape Adopts House provision with changes, gency Reforestation program. [16 U.S.C. tion program as part of the Emergency restoration program to rehabilitate creating the Emergency Forest 2106a] It has not been funded since Conservation program (16 U.S.C. 2201- croplands, grasslands, and private non- Restoration Program. Provides FY1993. 2204). [Sec. 8102] industrial forests following natural definitions of disaster; and authorizes disasters. [Sec. 2398] such sums as needed. [Sec. 8203] Other Forestry Provisions No comparable provision. No comparable provision. Includes definitions and makes tribes Deletes provision. eligible for Forest Legacy funding [16 U.S.C. 2103c] and forest management assistance. [Sec. 8101-8112] No comparable provision. No comparable provision. Authorizes Cultural and Heritage Co- Adopts Senate provision. operation, with purposes, definitions, and [Sec. 8101-8107] prohibition on disclosing information, and provides for reburial of human remains and cultural items; for temporary area closures for traditional and cultural CRS-155 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) purposes; and for free use of forest products for traditional and cultural purposes. [Sec. 8121-8127] The Healthy Forests Restoration Act of Extends program with $10 million from Moves section to Title II (Conservation) Adopts House provision with changes. 2003 (P.L. 108-148) authorized the CCC annually through FY2012. [Sec. and authorizes such sums as necessary. Provides $9.75 million annually easements through FY2008 to protect 8101] Expands purposes to support endangered (FY2009-2012). Provides permanent private forests for endangered species species, carbon storage, and biodiversity. easements instead of 99-year easements. and biodiversity. [16 U.S.C. 6578] Replaces 99-year easement option with Encourages tribal participation. permanent easement, and encourages [Sec. 8205] tribes to participate. [Sec. 2331] The Renewable Resources Extension Act Extends the program through FY2012. Extends the program through FY2012. Extends the program through FY2012. of 1978 (P.L. 95-306) authorized educa- [Sec. 7507] [Sec. 8201] [Sec. 7413] tional and technical aid via state exten- sion agencies and eligible universities and colleges. [16 U.S.C. 1671-1676] The Global Climate Change Prevention Extends the program through FY2012. Extends the program through FY2012. Extends the program through FY2012. Act of 1990 within the 1990 farm bill [Sec. 8103] [Sec. 8202] [Sec. 8202] authorized the Forest Service Office of International Forestry through FY2007. [7 U.S.C. 6704(d)] The 1990 farm bill, as amended, Extends the program through FY2012. No comparable provision. Adopts House provision. [Sec. 8201] authorized Rural Revitalization Through [Sec. 8104] Forestry via technology transfer, business assistance, and local training, through FY2008. [7 U.S.C. 6601(d)(2)] No comparable provision. Authorizes competitive forestry grants to No comparable provision. Adopts House provision. [Sec. 8402] Hispanic-serving institutions to recruit, retain, and train "Hispanics and other under-represented groups." [Sec. 8201] No comparable provision. No comparable provision. Amends the Lacey Act Amendments of Adopts Senate provision with changes. 1981 (P.L. 97-79; 16 U.S.C. 3371-78) to Provides definition of plant; excludes expand restrictions on and penalties for recycled materials; clarifies impact on importing wild plants/parts (e.g., lumber, exports; and specifies need for logs) removed in violation of U.S. or regulations to further define plant. foreign laws. [Sec. 8204] [Sec. 8204] No comparable provision. No comparable provision. Expands boundary of Green Mountain Adopts Senate provisions. National Forest (VT) to allow additional [Sec. 8301 & 8303] CRS-156 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) land acquisition. Authorizes exchange/ sale of specific forest lands to Bromley Mountain Ski Resort, with directions on proceeds use. [Sec. 8203 & 8205] No comparable provision. No comparable provision. Authorizes certain land conveyance in Adopts Senate provision, amended to New Mexico. [Sec. 11075] authorize a land conveyance in Virginia. [Sec. 8302] No comparable provision. No comparable provision. For non-salvage timber sale contracts Adopts Senate provision with awarded between 7/1/04 and 12/31/06, modifications. [Sec. 8401] the purchasers may request that the contract be cancelled, the contract payment rate be redetermined, or a sub- stitute Producer Price Index be used. USDA may agree to the contract modification, if the specified terms and limitations are met. [Sec. 8301] No comparable provision. No comparable provision. Sense of Senate that the President should Amends the Tariff Act of 1930 to require act to ensure that imports of softwood a softwood lumber importer declaration lumber from Canada are consistent with program to verify and reconcile data on the U.S.-Canada Softwood Lumber softwood lumber imports, to assure Agreement. [Sec. 11903] implementation of U.S.-Canada Softwood Lumber Agreement. [Sec. 3301] TITLE IX: ENERGY Farm and Community Energy Systems Sec. 9005 of the 2002 farm bill Extends program through FY2012. Extends program through FY2012, but Folds the Energy Audit and Renewable authorizes appropriations for the Energy Funding continues of such sums as folds it into the new Rural Energy for Energy Development Program into the Audit and Renewable Energy necessary for FY2008-12. [Sec. 9004] America Program where mandatory Rural Energy for America Program. Development Program to provide grants funding is available (see next section). Amended section 9007. to state agencies and organizations to [Sec. 9007] [Sec. 9001] assist farmers and rural businesses to be energy efficient. [7 U.S.C. 8105] Sec. 9006 of the 2002 farm bill Renames program "Rural Energy for Renames program similar to House bill. Establishes the Rural Energy for America authorizes the Renewable Energy America Program." Adds production and Implements energy audits for state Program to promote energy efficiency Systems and Energy Efficiency Program sale of electricity by renewable energy agencies, coops, educational institutions and renewable energy development for to assist farmers, ranchers, and rural systems to loan purposes, and assistance and utilities. Provides grants, loan agricultural producers and rural small CRS-157 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) businesses with renewable energy for feasibility studies. Reserves 15% for guarantees and incentive payments for businesses. Provides grants up to 25% of systems and improving energy efficiency. small projects. Mandatory CCC funds: energy efficiency and renewable energy, cost for energy audits, renewable energy $23 million annual mandatory CCC $50 million (FY2008), $75 million and manure-to-energy projects. Reserves development, and financial assistance funding for FY2003-07, but with annual (FY2009), $100 million (FY2010), $125 20% for small projects. Establishes the (20% of funds for grants less than spending, shortfalls lapse. million and $125 million (FY2011- Rural Energy Star program. Mandatory $20,000). Total assistance limited to [7 U.S.C. 8106] FY2012), respectively. [Sec. 9005] funds of $230 million (FY2008), 75% of cost. Provides mandatory funds: available until expended. [Sec. 9007] $55 million (FY2009), $60 million (FY2010), $70 million (FY2011), and $70 million (FY2012). Authorizes $25 million in discretionary funds annually (FY2009-12). Amended section 9007. [Sec. 9001] No comparable provision. Establishes the Farm Energy Production No comparable provision. Deletes provision. The conferees state Pilot Program, with matching grants (up the goals of this provision are addressed to 75% of cost) to demonstrate energy- in Section 7207 of Title VII (Research). neutral farms with existing technologies. Authorizes appropriations of $5 million (FY2008-12). [Sec. 9010] No comparable provision. Establishes Future Farmsteads Program Similar to the House bill. [Sec. 9025] Deletes provision. The conferees state to equip and demonstrate five farms and the goals of this provision are addressed farm households in five regions with in Section 7207 of Title VII (Research). energy efficient/producing technologies. Authorized appropriations of such sums as necessary. [Sec. 9015] No comparable provision. Establishes Community Wood Energy Provides matching grants for use of local, Establishes the Community Wood Program, with matching grants (up to sustainable wood sources for a Energy Program, providing grants of up 50%) for use of local, sustainable wood community wood energy system based to $50,000 for up to 50% of the cost for sources for a community wood energy on a Community Wood Energy Plan. communities to plan and install wood system. Authorizes appropriations of Authorizes appropriations of $5 million energy systems in public buildings. such sums as necessary. [Sec. 9019] annually (FY2008-12). [Sec. 9014] Authorizes $5 million in discretionary funds annually (FY2009-12). Amended section 9013. [Sec. 9001] No comparable provision. No comparable provision. Establishes New Century Farm Project to Deletes provision. The conferees state develop and operate sustainable and the goals of this provision are addressed integrated biomass -- biofuel production in Section 7207 of Title VII (Research). systems. Authorizes one-time funding of $15 million (FY2008-FY2012) until spent. [Sec. 9011] CRS-158 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. Establishes the Rural Energy Self- Establishes the Rural Energy Systems Establishes the Rural Energy Self-Suffi- Sufficiency Initiative, providing grants to Renewal program, with matching grants ciency Initiative, providing cost- share increase community energy self- (up to 50% of project cost) to fund (up to 50%) grants for rural communities sufficiency. Provides discretionary community energy renewal projects. to assess energy systems and to make appropriations of $5 million authorized Authorizes annual appropriations of $5 improvements. Authorizes $5 million in for FY2008 and such sums as necessary million (FY2008-12). [Sec. 9015] discretionary funds annually (FY2009- for FY2009-12). [Sec. 9013] 12). Amended section 9009. [Sec. 9001] No comparable provision. No comparable provision. Establishes program to provide grants to Deletes provision. The conferees state Northeast land-grant universities for that the nutrient management research research, extension, and demonstration and extension initiative are addressed in projects for dairy nutrient management Section 7204 of Title VII (Research). and energy development in the Northeast. Authorizes discretionary funds of such sums as are necessary. [Sec. 9023] No comparable provision. No comparable provision. Establishes Voluntary Renewable Deletes provision. Biomass Certification Program to certify biomass feedstocks meet standards designed to reduce greenhouse emissions and improve soil carbon content while protecting wildlife habitat/environment. No funds authorized. [Sec. 9016] No comparable provision. No comparable provision. Creates Rural Energy Self Sufficiency Deletes provision. The conferees state program (five annual matching grants up the goals of this provision are addressed to 75% of cost) for rural communities in section 7204 of Title VII (Research). with other institutions to increase energy self-sufficiency through integrated renewable energy systems. Authorizes $5 million (FY2008) and such sums as necessary (FY2009-12). [Sec. 9011] Biofuel Feedstocks Sec. 9008 of the 2002 farm bill extended Extends the Biomass Research & Extends the Biomass Research & USDA and DOE shall continue to the Biomass Research and Development Development Act of 2000 from 2007 to Development Act of 2000 from 2007 to coordinate biofuels and biobased Act of 2000 (P.L. 106-224), providing 2012. Mandatory CCC funding of $35 2012, and incorporates it into the farm products research and development grants and financial assistance from the million (FY2008), $60 million (FY2009), bill. Mandatory CCC funding of $15 programs under the Biomass Research & Department of Energy (DOE) and USDA $75 million (FY2010), $100 million million (FY2008), $25 million (FY2009), Development Act of 2000 through the to establish a technical advisory (FY2011), $150 million (FY2012). $35 million (FY2010). Authorizes Biomass Research and Development committee and a Biomass Research and Authorizes appropriations of $200 appropriations of $85 million annually Board. Provides competitive grants, CRS-159 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Development Board. Mandatory funds million annually (FY2006-15). [Sec. (FY2008-12). [Sec. 9008] contracts, and financial assistance for of $5 million (FY2002); $14 million 9008] research, development, and demon- annually (FY2003-07). Authorized stration of biofuels and biobased products additional annual appropriations of $49 Provides mandatory funding: $20 million million (FY2002-07). [7 U.S.C. 8101] (FY2009), $28 million (FY2010), $30 million (FY1022), and $40 million (FY2012). Authorizes $35 million in discretionary funds (FY2009-12). Amended section 9008. [Sec. 9001] No comparable provision. Establishes the Feedstock Flexibility Similar to the House bill. [Sec. 1501] Adopts the House provision with Program, authorizing the use of CCC modifications. Amended section 9010. funds to purchase sugar to be resold as a [Sec. 9001] biomass feedstock to produce bioenergy. [Sec. 9013] No comparable provision. Establishes the Renewable Woody Similar to the House bill. Authorizes $5 Requires the Forest Service to conduct a Biomass for Energy Program, providing million annually (FY2008-12). [Sec. competitive research and development Forest Service grants to encourage the 9013] program to encourage use of forest use of woody renewable biomass for biomass for energy. Adopts the House energy. Mandatory funds of $15 million provision with amendments. Authorizes annually (FY2008-12). [Sec. 9019] $15 million per year for FY2009-12. Amended section 9012. [Sec. 9001] No comparable provision. Establishes the Biomass Energy Reserve Establishes the Biomass Crop Transition Establishes the Biomass Crop Assistance (BER). Provides financial and technical Program, providing technical/financial Program (BCAP). Provides USDA assistance to landowners and operators to assistance to agricultural producers for contracts with producers to promote the grow dedicated energy crops as feedstock production, collection, harvest, storage production of bioenergy feedstock crops for cellulosic ethanol and other energy and transportation of biomass crops for not primarily grown for food or animal production. Incentives cover harvesting, use in a biorefinery. Directs USDA to feed. Also provides payments to eligible storing, and transporting of biomass to collect and disseminate information on entities through contracts for collection, bioenergy facilities. BER projects would production potential, environmental harvest, storage, and transportation of be within a 50-mile radius of a bioenergy impacts, and best practices. Authorizes renewable biomass material for use in a facility. Authorizes mandatory funding mandatory funds: $130 million for biomass conversion facility. Provides of such sums as necessary. [Sec. 9018] FY2008 and $10 million annually for discretionary CCC funding of such sums FY2009- 11, available until expended. as necessary annually for FY2008-12. [Sec. 9004] Amended section 9011. [Sec. 9001] No comparable provision. No comparable provision. Establishes Regional Biomass Crop Establishes a program to award Experiment Grants for regional biomass competitive grants for projects with a production experiments by land grant focus on supporting on-farm biomass institutions. Mandatory CCC funds: $10 crop research and the dissemination of CRS-160 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) million (FY2008), $20 million (FY2009), results to enhance the production of $10 million (FY2010); also authorizes biomass energy crops and the integration appropriations of such sums as necessary of such with the production of bioenergy. (FY2008-12). [Sec. 9010] Moves this provision to Title VII (Research). [Sec. 7207] Sec. 9002 of the 2002 farm bill requires Extends the federal procurement Extends the program and refines federal Adopts Senate provision with changes. federal agencies to purchase biobased program; sets biobased component of procurement rules for biobased products. Extends the federal biobased procure- products and authorizes a voluntary product at 5% minimum; and revises the Requires federal agencies to maximize ment program. Eliminates the 5% biobased labeling program. USDA sets deadline for USDA to set labeling procurement of biobased products and minimum biobased content. Continues procurement regulations. Provides $1 requirements. Authorizes appropriations submit reports to Congress. Continues voluntary labeling. Authorizes million in mandatory CCC annual of $1 million for procurement provisions voluntary labeling. Establishes testing mandatory funding of $1 million for funding (FY2002-07) for testing and $1 million for labeling provisions centers and education grants. Authorizes FY2008 and $2 million annually for biobased products. [7 U.S.C. 8102] (FY2008-13). [Sec. 9002] $3 million in annual mandatory funds FY2009-12. Authorizes discretionary (FY2008-12). [Sec. 9002] appropriations of $2 million annually for FY2009-2012 for testing and labeling. Amended section 9002. [Sec. 9001] Sec. 9003 of the 2002 farm bill provides Renames as "Biorefinery and Renames as "Biorefinery and Provides funds for repowering assistance grants to help finance biorefineries and Repowering Assistance." Provides cost Repowering Assistance." Provides cost to reduce or eliminate their use of fossil biofuel plants for demonstration. No sharing grants; adds loan guarantees for sharing grants (up to 50%) and loan fuels for biorefineries in existence at mandatory funds were authorized; no new and developing technologies for guarantees (up to 80%) to assist new and enactment. Provides mandatory CCC discretionary funds were appropriated. advanced cellulosic bioenergy production developing technologies focusing on funding of $35 million, available until Implementing regulations have been and biorefinery repowering. Mandatory advanced cellulosic bioenergy production expended. Provides discretionary developed. [7 U.S.C. 8103] CCC funds: $75 million (FY2008); $100 and biorefinery repowering. Authorizes funding of $15 million annually for million (FY2009); $125 million mandatory CCC funds of $300 million FY2009-12. Amended section 9004. (FY2010); $200 million (FY2011); and for FY2008 to be made available until [Sec. 9001] $300 million (FY2012). [Sec. 9003] expended. [Sec. 9005] No comparable provision. No comparable provision. Establishes E-85 fuel program, providing Deletes provision. grants for E-85 fuel infrastructure. Authorizes discretionary funding of $20 million (FY2008-12) to be available until expended. [Sec 9021] Biofuel Research and Education The 2002 farm bill amended the Sun Extends program through FY2012, and Similar to the House bill. Provides grants Continues sun grant program. Provides Grant Research Initiative Act of 2003 to adds new center in Hawaii. [Sec. 9008] to other land grant institutions within matching grants to sun grant centers to establish bioenergy research programs each region, in addition to designated develop, distribute, and implement through grants to land grant institutions centers. Authorizes mandatory funds of biobased energy technologies and to and five regional centers. Authorizes $5 million (FY2008) and $10 million promote diversification and sustainability CRS-161 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) appropriations: $25 million (2005), $50 (FY2009-10) until expended, and of agricultural production, and economic million (2006), and $75 million annually discretionary annual appropriations of diversification in rural areas through (FY2007-10). [7 U.S.C. 8109] $70 million (FY2008-15). [Sec. 9009] biobased energy and product technologies. Establishes a Sun Grant Information Analysis Center. Requires annual reports. Discretionary funds of $75 million for FY2008-12 are authorized. [Sec. 7526] Sec. 7134 of the 2002 farm bill provides No comparable provision. The House bill amends Section 1417(j) Adopts Senate provision with research grants on production/marketing of NARETPA by adding agriculture amendment to repeal this section from of alcohols and industrial hydrocarbons programs for grades K-12 to the purposes prior law. [Sec. 7110] from agricultural and forest products. of these grants. [Sec. 7008] Authorized annual appropriations of $20 million (FY1991-2007). [7 U.S.C. 3154] Sec. 9004 of the 2002 farm bill provides Extends the Biodiesel Fuel Education Similar to the House bill. [Sec 9003] Adopts House and Senate provision for the Biodiesel Fuel Education Program Program. Provides annual mandatory except provides mandatory CCC funding with grants to educate fleet operators and funding of $2 million (FY2008-12). [Sec of $1 million annually (FY2008-12). the public on biodiesel benefits. Annual 9017] Amended section 9006. [Sec. 9001] mandatory CCC funding of $1 million (FY2003-07). [7 U.S.C. 8104] Sec. 9009 of the 2002 farm bill provides The House bill extends the section 221of No comparable provision, but authorizes Adopts House provision. [Sec. 7407] for Cooperative Research and Extension the Agricultural Risk Protection Act of USDA to continue to provide for grants projects, encouraging research on carbon 2000 (ARPA) through 2012. (Section to the Consortium for Agricultural Soils sequestration in soils and plants, and the 7506) Mitigation of Greenhouse Gases to role of agriculture in greenhouse gas develop, analyze, and implement carbon emissions. [7 U.S.C. 6711] cycle and greenhouse gas management research through cooperative research at the land grant universities. Authorizes appropriations of $15 million annually (FY2008-12). [Sec. 7315] Sec. 9010 of the 2002 farm bill provides Renews and extends the "Bioenergy Similar to the House bill. Bases payments Establishes the Bioenergy Program for for the Bioenergy Program, continuing Program for Advanced Biofuels" through on: biofuel production; feedstock prices; Advanced Biofuels. Provides payments incentive payments to biofuel producers FY2012. Excludes ethanol produced and net non-renewable energy fuel to producers to support and expand based on year-to-year production from corn starch; expands eligibility for content. Benefits purchasers of production of advanced biofuels. increases. Annual mandatory CCC production incentives for combined heat feedstocks for cellulosic biofuels and Provides mandatory funding of $55 funding of $150 million (FY2002-06), and power production using biomass at biodiesel; excludes those who claim a million (FY2009), $55 million (FY2010), but no funding authorized for FY2007. biofuels plants. Provides mandatory biofuel production tax credit or who $85 million (FY2011), and $105 million [7 U.S.C. 8108] CCC funding of $225 million (FY2008), produce more than 150 million gallons (FY2012). Authorizes additional CRS-162 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) $250 million (FY2009), $275 million per year. One-time mandatory funding of appropriations of $25 million annually (FY2010), $300 million (FY2011), and $245 million (FY2008-12), available (FY2009-12)Amended section 9005. $350 million (FY2012). [Sec. 9007] until expended. [Sec. 9006] [Sec. 9001] No comparable provision. Establishes grants for Biochar Research, No comparable provision. Deletes provision. Includes biochar Development, and Demonstration. research as a high-priority area in Title Annual authorized appropriations of $3 VII (Research). [Sec. 7203]. million (FY2008-12). [Sec. 9012] No comparable provision. Sense of Congress on renewable energy No comparable provision. Deletes provision. production, use, and benefits. [Sec. 9016] No comparable provision. No comparable provision. Sense of Congress on ethanol blends, and Deletes provision. need for inter-agency cooperation to encourage increased production of intermediate ethanol blends between E-10 and E-85. [Sec 9002] No comparable provision. No comparable provision. Sense of Congress regarding research, Deletes provision. The managers extension and education programs on encourage USDA to continue to allow biofuels and bioproducts. [Sec. 9004] and support these activities. No comparable provision. Authorized appropriations for a pilot No comparable provision. Deletes this provision. program for academic internships with government, private, or non-profit institutions. [Sec 9015] No comparable provision. No comparable provision. Directs USDA and other agencies to Requires joint USDA, DOE, EPA submit reports: growth potential for studies: (1) infrastructure needs cellulosic material [Sec. 9024]; biofuels associated with significant expansion in infra-structure [Sec, 9018]; rural nitrogen biofuels production and use [Sec. 9002]; fertilizers [Sec. 9019]; and life-cycle and (2) rural nitrogen fertilizer study, analysis of biofuels [Sec. 9020]. with appropriations authorized at $1 million (FY2009) [Sec. 9003] No comparable provision. No comparable provision. Directs USDA and other agencies on Deletes provision. The conferees state Research and Development of Renewable the goals of this provision are addressed Energy, including farm to fuel research in section 7207 of Title VII (Research). on biofuel production; and research on small scale wind and solar energy production and fuel cells. Annual authorized appropriations of $5 million (FY2008-12), and annual appropriations of $110 million for cellulosic biofuel CRS-163 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) research (USDA) and $110 million for smaller-scale biorefineries and plant research (DOE). [Sec. 9022] Other Renewable Energy Provisions No comparable provision. No comparable provision. Directs USDA report on the potential Adopts Senate provision. [Sec. 11014] economic issues (including costs) associated with animal manure used in normal agricultural operations and as a bioenergy feedstock. [Sec. 10307] Sec. 9001of the 2002 farm bill provides Same as prior law.Keeps prior law Keeps prior law definitions, but adds Adopts Senate provision with changes. for definitions, including biomass, definitions, but adds definitions for definitions for advanced biofuels, Adds definitions for advanced biofuels to biobased product, biomass, renewable advanced biofuels, biofuel, biomass biofuel, biomass conversion facility, include home heating fuels and aviation energy and small rural business conversion facility, biorefinery, biorefinery, feedstock, among others. and jet fuels from cellulosic biomass. [7 U.S.C. 8101] feedstock, among others. Adds ocean and Adds ocean and hydroelectric power to Amended section 9001. [Sec. 9001] hydroelectric to the renewable energy the renewable energy definition. [Sec. definition. [Sec. 9001] 9001] No comparable provision. Establishes the USDA Energy Council to Similar to the House bill, in that it would Deletes the House and Senate provision. coordinate energy related activities establish an entity at USDA to provide The managers express their support of a within USDA and between USDA and oversight and coordination, liaise with single entity at USDA to coordinate other agencies. [Sec. 9017] Establishes other federal departments, evaluate new activities in the Senate bill. an entity at USDA to provide oversight biobased products, and maintain a and coordination, liaison activities, database of biobased research and best biobased product evaluation, and practices. [Sec. 9017] database maintenance. [Sec. 9009] No comparable provision. No comparable provision. No comparable provision. Directs the Secretary of the Treasury, in consultation with other agencies, to request that the National Academy of Sciences produce an analysis of current scientific findings relating to the future production of biofuels and its domestic impacts. [Sec. 15322] TITLE X: HORTICULTURE AND ORGANIC PRODUCTION Marketing and Trade Promotion, Consumer Access No comparable provision. No comparable provision. Sets definitions to apply throughout one Adopts Senate provision with an of the bill's subtitles the terms "specialty amendment to remove the definition of CRS-164 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) crop", "state", and "state department of the term "State." [Sec. 10001] agriculture." [Sec. 1801] No comparable provision. Requires an independent evaluation of No comparable provision. Adopts House provision with changes to the commodity purchasing processes and require the Secretary to arrange to have the importance of increasing purchases of performed an independent evaluation of specialty crops. [Sec. 10104] the purchasing processes used by USDA to implement the requirement that funds available under Section 32 be principally devoted to perishable agricultural commodities. [Sec. 10101] The Specialty Crops Competitiveness Act Reauthorizes the block grant program Contains an identical provision, except Adopts House provision with changes to of 2004 [P.L. 108-465, 7 U.S.C. 1621 through FY2012 and provides mandatory that funding ends after FY2011. specify that any funds made available for note] established a program of block funding starting at $60 million in Specifies that turfgrass sod and herbal a fiscal year under the program that are grants to states to support projects in FY2008, rising to $95 million in crops also are specialty crops. not expended by certain date, to be marketing, research, pest management, FY2012. Increases the number of U.S. [Sec. 1841] determined by USDA, will be reallocated and food safety, among other purposes. insular areas eligible to receive grants. to other States; change the minimum Authorizes $44.5 million annually [Sec. 10102] grant amount to $100,000 or one-third of through FY2009. 1% of the overall funding allocated to the program in a given fiscal year (whichever is higher). Provides mandatory funding: $10 million (FY2008); $49 million (FY2009); and $55 million annually (FY2010-2012). [Sec. 10109] The Farmer-to-Consumer Direct Expands the types of activities that are Reauthorizes the Farmers' Market Adopts Senate provision with an Marketing Act established a Farmers' eligible for funding. Renames program Promotion Program and provides amendment to specify that 10% of the Market Promotion Program promote the Farmer Marketing Assistance mandatory funds of $5 million annually funds available to carry out the program farmers' markets, authorizing annual Program. Provides annual mandatory in FY2008-11, and $10 million in be used to implement electronic benefit appropriations for grants to local funds of $5 million (FY2008-10) and $10 FY2012. [Sec. 1812] transfer systems at farmers' markets; governments, and nonprofit million (FY2011-12). [Sec. 10404] and to specify mandatory funding: organizations. [7 U.S.C. 3005] $3 million (FY2008); $5 million annually (FY2009-2010); $10 million annually (FY2011-2012). [Sec. 10106] No comparable provision. Authorizes grants to a variety of public Similar to the House bill, but with minor Adopts House provision with changes to and private entities to improve technical differences. allow national/state/regional organiza- transporting specialty crops to markets. [Sec. 1842] tions of producers, shippers or carriers to be eligible for grants. [Sec. 10403] CRS-165 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. Requires the Government Accountability Deletes Senate provision. Office (GAO) to investigate the impact on specialty crops of lowering foreign trade barriers and to prepare a strategy for addressing the issue. [Sec. 1831] No comparable provision. No comparable provision. Encourages USDA and the U.S. Trade Deletes Senate provision. Representative to increase attention to sanitary and phytosanitary trade issues, and to develop a strategic risk management framework. [Sec. 1833] No comparable provision. Establishes a grant program entitled the Authorizes a grant program to establish a Adopts Senate provision with changes to Healthy Food Urban Enterprise Program Healthy Food Enterprise Development place language for the Healthy Urban to support feasibility studies on Center, providing information and Food Enterprise Development Center improving the access of underserved technical assistance to entities to make within the Community Food Projects communities to affordable, locally affordable, locally produced, nutritious statute. Clarifies that subgrants may be produced, nutritious food. Authorizes food available in underserved used to establish and facilitate enterprises annual appropriations for this purpose. communities. Provides $1 million in that process, distribute, aggregate, store, [Sec. 10405] mandatory funds (FY2009); $2 million and market healthy affordable foods. annually (FY2010-12). [Sec. 1843] Limits allocations for administrative expenses. Provides $1 million in funding annually (FY2009-2011) and authorizes $2 million (FY2012). [Sec. 4402] Specialty Crop Provisions Related to Nutrition Programs -- see section on Nutrition Programs (below) Organic Agriculture Production The 2002 farm bill established a cost- Provides a one-time transfer (FY2008) of Similar to the House bill, and requires an Adopts Senate provision but deletes the share program to help producers and $22 million in mandatory funds to annual report to the House and Senate cap on the federal cost share. handlers of organic products obtain continue the cost-share program, caps the Agriculture Committees on cost-share [Sec. 10301] certification under the National Organic federal share of certification cost at no expenditures in each state. [Sec. 1823] Program (NOP), and provided a one-time more that 75%, and raises the maximum transfer of $5 million in mandatory crop amount a producer can receive from $500 insurance funds. [7 U.S.C. 1524] to $750. [Sec. 10301] The 2002 farm bill required USDA to Provides $3 million in mandatory CCC Similar to the House bill and provides a Adopts Senate provision with changes to keep segregated data on organic funds to support data collection and one-time transfer of $5 million for clarify USDA's data collection, analysis, production and marketing. [7 U.S.C. analysis on organic production, segregated data collection and analysis. and survey development requirements, 5925c] marketing, pricing, and crop loss risk. [Sec. 1821] and to specify the contents of USDA's CRS-166 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) [Sec. 10302] report to the House/Senate Agriculture Committees. Provides $5 million in mandatory funding, with an additional authorization of appropriations of $25 million (FY2008-2012), further specifying that $3.5 million in funding be allocated to AMS to collect and distribute comprehensive reporting of prices relating to organically produced agricultural products. [Sec. 10302] No comparable provision. Authorizes $50 million subject to Provides for technical assistance and Deletes House provision, but includes appropriations over the life of the farm cost-sharing under the Environmental language addressing the goal of bill to provide technical assistance and Quality Incentives Program (EQIP) to providing technical assistance to farmers cost-sharing grants to producers seeking producers seeking to convert to organic transitioning to organic farming under to convert from conventional to organic production. [Sec. 2361] Authorizes the EQIP program [Sec. 2501] of the production. [Sec. 10303] grants for this purpose under the conservation title. Beginning Farmer and Rancher Development Program. [Sec. 7309] Assessments are exempted under No comparable provision. Allows producers who have part of their Deletes Senate provision. marketing orders for conventionally- farm certified organic under the NOP to grown fruits and vegetables, for receive the exemption. [Sec. 1822] producers whose operations are 100% organic. [7 U.S.C. 7401] The Organic Foods Production Act of No comparable provision. Specifies increased authorized annual Adopts Senate provision with changes to 1990 authorizes appropriations of such funding levels for the NOP, starting at $5 provide such additional sums as are sums as necessary for the National million in FY2008 and rising to $11 necessary. [Sec. 10303] Organic Program. [7 U.S.C. 6522] million in FY2012. [Sec. 1824] No comparable provision. Provides grants using Section 32 funds (7 No comparable provision. Deletes House provision. U.S.C. 612c) to help urban gardening and greenhouse projects to purchase and operate organic fruit and vegetable gardens and greenhouses. [Sec. 10103A] Pest and Disease Control No comparable provision. Establishes a cooperative program with Similar to the House bill, with technical Adopts Senate provision with changes to state agriculture departments to conduct differences. Provides mandatory funds describe the application process; prohibit CRS-167 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) early pest detection and surveillance starting at $10 million (FY2008), rising USDA from considering nonfederal activities and create action plans, among to $64 million (FY2012). [Sec. 12101(f)] funds; direct USDA to consider risk other things. Provides mandatory funds factors when considering an application; starting at $10 million (FY2008), rising and express disapproval of a cost-sharing to $70 million (FY2012). [Sec. 10201] rule for animal and health emergency programs. Specifies mandatory funds: $12 million (FY2009); $45 million (FY2010); $50 million (FY2011); and $50 million (FY2012). [Sec. 10201] No comparable provision. Authorizes the appropriation of $15 No comparable provision. Deletes House provision. million for the construction of a sterile fruit fly rearing facility in Waimanalo, Hawaii, and the appropriation of $1 million annually thereafter. [Sec. 10202] No comparable provision. Authorizes the appropriation of necessary Similar to the House bill, with technical Adopts Senate provision with an funds through FY2012, in addition to $20 differences. [Sec. 1851] amendment to add NLGCA institutions million annually in mandatory funds, to to the list of entities that USDA shall create a National Clean Plant Network consult with to carry out the program. where the specialty crop industry can Specifies mandatory funding: $5 million obtain pest- and disease-free planting annually (FY2009-2012). [Sec. 10202] stock. [Sec. 10404] The Plant Protection Act (PPA) [7 U.S.C. No comparable provision. Modifies penalties in the PPA as Adopts Senate provision with changes to 7701 et seq.] authorizes USDA's Animal follows: $500,000 for each violation strike the change to the statute of and Plant Health Inspection Service adjudicated in a single proceeding; limitations, to expand the penalties to (APHIS) to cooperate with states, $1,000,000 for each violation adjudicated cover any willful violation of the PPA, localities and others to prevent the spread in a single proceeding involving a and to clarify subpoena authorities of of and eradicate invasive pests and genetically modified organism. Requires USDA under the PPA. Modifies the diseases. an action, suit or proceeding regarding a ability of the executive branch to delay violation of the PPA to be considered no the provision of compensation for later than 5 years after the date the economic losses. [Sec. 10203] violation is initially discovered by Identical amendments were made to the USDA. [Sec. 11017] Animal Health Protection Act in the livestock title. [Sec. 11012] The PPA [7 U.S.C. 7701 et seq.] No comparable provision. Requires USDA, no later than 18 months Adopts Senate provision, with authorizes USDA's activities under the after enactment, to take action on each modification. [Sec. 10204] Federal Coordinated Framework for the issue identified in the document "Lessons Regulation of Biotechnology. APHIS Learned and Revisions under Consider- CRS-168 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) regulated the importation, interstate ation for APHIS' Biotechnology Frame- movement, and field testing of work," dated October 4, 2007; and as genetically engineered organisms that USDA considers appropriate, to may pose a plant risk. promulgate regulations to improve the management and oversight of articles regulated under the PPA, among other specified action items. [Sec. 11077] Food Safety Provisions The Agricultural Adjustment Act governs Authorizes the implementation of No comparable provision. Deletes House provision. the terms and conditions of marketing quality-related food safety programs orders applicable to specified under marketing orders for specialty commodities. [7 U.S.C. 608c(6)] crops. [Sec. 10106] No comparable provision. Authorizes appropriation of necessary Similar to the House bill, and authorizes Adopts Senate provision, authorizing sums to implement a program to educate $1 million in annual appropriations for appropriations of $1 million annually fresh produce industry personnel and that purpose. [Sec. 1813] (FY2008-2012) to remain available until consumers about ways to reduce expended. [Sec. 10105] pathogens in fresh produce. [Sec. 10110] Disaster Assistance The 2002 farm bill established the Tree Makes nursery tree growers eligible for Makes nursery tree growers eligible for Adopts Senate provision with changes to Assistance Program to compensate disaster assistance under the program, disaster assistance, increases the limit on modify the reimbursement cost of commercial orchardists for losses due to increases the limitation on annual annual assistance to $100,000, adds replanting trees lost from a natural natural disasters and authorized annual assistance from $75,000 to $150,000, and reimbursement for orchard management disaster; amend the Federal Crop appropriations for the program. [7 U.S.C. continues appropriations authority. to repair losses, and provides necessary Insurance Act with a provision identical 8201] [Sec. 10101] mandatory funding over the life of the to that in the Trade Act of 1974; and to farm bill. [Sec. 1210(e)] make other technical changes. The Manager's report clarifies the insurance requirement for eligibility applies only to insurance on crops and not underlying vines/trees. [Secs. 12033 and 15101] Specialty Crop Sector Data Collection No comparable provision. Authorizes necessary funds through Authorizes $9 million annually in funds Adopts Senate provision with changes to FY2012 to support the collection and to support market news and price authorize appropriations $9 million dissemination of market news for information on specialty crops. annually (FY2008-2012) to remain specialty crops. [Sec. 10402] [Sec. 1811] available until expended, in addition to CRS-169 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) available annual appropriations for market news services. [Sec. 10107] The 1997 Census of Agriculture Act Amends the 1997 law to include a census Allows USDA to include a census of Adopts House provision. [Sec. 10103] (P.L. 105-113) authorizes a Census of of specialty crops as part of the Census of specialty crops in the Census or to Agriculture to be taken every 5 years. Agriculture. [Sec. 10107] conduct a separate census of specialty [7 U.S.C. 2204g(a)] crops not later than the end of FY2008 and every 5 years thereafter. [Sec. 1814] Other Commodity-Specific Provisions No comparable provision. Requires USDA to submit a report on the No comparable provision. Deletes House provision. investigation of honey bee colony collapse disorder and strategies to combat the problem. [Sec. 10001] The Honey Research, Promotion, and No comparable provision. Amends the Honey Research, Promotion, Adopts Senate provision with changes to Consumer Information Act (P. L. and Consumer Information Act with discontinue the current Honey Board 98-590), as amended, provides for provisions regarding the Honey Board after USDA conducts a referendum for coordinated research, promotion, and and referenda on the honey research and honey producers or honey packers, consumer information to expand their promotion order. [Sec. 1854] importers and handlers. Requires USDA markets for honey. [7 U.S.C. 4601 note] to act as a fiduciary in conducting the referenda. [Sec. 10401] No comparable provision. No comparable provision. Amends 7 U.S.C. 1622(h) to require the Adopts Senate provision with changes to USDA grading or inspection mark be specify that violations of the labeling located close to the country of origin requirements of this section, with respect label on packaged honey. [Sec. 1855] to honey, may be deemed by USDA as sufficient cause for debarment from the benefits of the Agricultural Marketing Act of 1946. [Sec 10402] The Agricultural Adjustment Act requires Adds clementines to the list of Similar to the House bill. [Sec. 3207] Adopts the House and Senate provision. that imported commodities that are under commodities to which this requirement [Sec. 10102] marketing orders in the U.S. meet the applies. [Sec. 10105] order's standards. [7 U.S.C. 608e-1(a)] The Agricultural Marketing Act of 1946 Adds a section to the 1946 act to regulate Authorizes USDA to initiate the process Adopts Senate provision. [Sec. 10108] governs research and marketing the minimum maturity of all Hass of establishing a marketing order programs for agricultural products. avocados sold in the United States. regulating the grades and standards of [7 U.S.C. 1641] [Sec. 10108] Hass avocados, if a U.S. organization CRS-170 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) submits such a proposal. [Sec. 1856] A 1990 law contains the terms and Makes changes to the geographic Similar to the House bill, with technical Adopts House provision with changes to conditions of the mushroom marketing composition of the Mushroom Board, differences. [Sec. 1853] clarify that the mushroom council may order. [7 U.S.C. 6104] and other provisions. [Sec. 10109] develop and propose to USDA programs for good agricultural and good handling practices and related activities for mushrooms. [Sec. 10104] No comparable provision. No comparable provision. Establishes a program to compensate Adopts Senate provision. [Sec. 10404] asparagus growers for losses in 2004 -- 2007 due to imports. Provides $15 million in mandatory funds for this purpose. [Sec. 1852] The 2002 farm bill did not include a Creates new farm bill title, Horticulture No new title; includes most horticulture Creates new farm bill title, Horticulture separate title for horticultural products or and Organic Agriculture (Title X). and organic agriculture provisions as part and Organic Agriculture (Title X). organic production. of the Commodity Title I. TITLE XI: LIVESTOCK Livestock Mandatory Reporting The Livestock Mandatory Reporting Act No comparable provision. Changes the time of the afternoon swine Directs USDA to conduct a study of the of 1999 [7 U.S.C. 1635-1636h] report. After an economic study of economic impacts of requiring plants to established a program of mandatory wholesale pork product prices, USDA is report pork product sales, focusing on reporting of information regarding the authorized to establish mandatory packer wholesale pork cuts. Also directs USDA marketing of live cattle, boxed beef, reporting of wholesale pork product to improve electronic reporting and swine, and lambs. Requires packers, sales, specifying that USDA will make publishing under the program. [Sec. processors, and importers to provide this information publicly available. 11001] periodic reporting of price, volume, [Sec. 10001] contract, and demand information to USDA. The information is used to create price reports for livestock producers. Meat and Poultry Inspection The Federal Meat Inspection Act (FMIA) Requires USDA to report to Congress on Provides for a new opt-in program for State inspection provisions generally the [21 U.S.C. 601 et seq.] and the Poultry the effectiveness of each state inspection state-inspected plants with 25 or fewer same as the Senate bill, without the Products Inspection Act (PPIA) [21 program and on the changes necessary to employees, which subjects them to provision to provide 100% U.S.C. 451 et seq.] permit states to ensure enforcement of federal federally-directed inspection using state reimbursement for programs with operate their own meat and poultry requirements. Replaces current federal- employees. During the first 3 years, state pathogen testing that exceed federal inspection programs, if they are at least state cooperative inspection program plants with 26-35 employees may also testing. [Sec. 11015] Amends the FMIA CRS-171 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) "equal to" (but not necessarily identical with a new program whereby USDA apply. Sets federal reimbursement at not and PPIA to require all establishments to to) the federal program. State-inspected would approve the shipment of state- less than 60% for both meat and poultry promptly notify USDA if they have meat and poultry cannot be shipped in inspected meat and poultry from a state programs and permits 100% reason to believe an adulterated or interstate commerce. where key program requirements are reimbursements if pathogen testing misbranded product has entered identical to federal requirements; permits exceeds typical federal testing, among commerce. Requires establishments to many plants currently under federal other provisions. [Sec. 11067] Requires prepare, and maintain in writing, a inspection to shift to state inspection; USDA to establish "reportable food product recall plan. raises the federal reimbursement registries" for meat and poultry and their [Sec. 11017] maximum from 50% to 60% for poultry products. Requires all establishments to programs only; among other things. include recall plans in their safety [Sec. 11103] No comparable provisions prevention (i.e., HACCP) plans, and regarding reportable food registries, requires all beef establishments to have recall plans, E. coli reassessment, or an E. coli reassessment. Directs HHS sanitary food transportation. and USDA to issue sanitary food transportation regulations. [Sec. 11087] Seafood Grading and Inspection The 2002 farm bill identifies the market No comparable provision. Authorizes the establishment of a Makes "catfish," as defined by the and common name for catfish for voluntary USDA grading program for Secretary, an amenable species under the labeling purposes. [21 U.S.C. 321d] catfish. Requires USDA to provide FMIA, thus subjecting catfish products to Sec. 203(c) of the Agricultural Marketing inspection activities for catfish, by mandatory inspection; authorizes USDA Act (AMA) of 1946 [7 U.S.C. 1622] adding catfish to the list of "amenable to take into account the conditions under authorizes USDA to develop standards to species" under the FMIA. Specifies that which catfish are raised and transported. encourage uniformity and consistency in new catfish grading and certification Amends the 1946 AMA to authorize commercial marketing. Sec. 1(w) of programs shall not duplicate, impede, or USDA to establish a voluntary fee-based FMIA [21 U.S.C. 601 et seq.] defines undermine similar activities conducted grading program for catfish and to permit "amenable species" subject to mandatory by the Department of Commerce or by other farm-raised seafood industries to inspection. the Food and Drug Administration. [Sec. apply for such grading. 10002] [Sec. 11016] Country of Origin Labeling (COOL) Sec. 10816 of the 2002 farm bill Continues to require COOL implemen- Similar to the House bill, but further Continues to require COOL implemen- amended the AMA of 1946 by requiring tation by 2008 for red meats and other makes macadamia nuts and chicken tation by Sept. 30, 2008, for covered retailers (excl. restaurants) to provide covered commodities. Adds meat covered commodities. [Sec. 10003] commodities, to which are added goat country of origin labeling (COOL) for produced from goats. Makes changes to Creates a separate program for ginseng meat, chicken, macadamia nuts, pecans, beef, lamb, pork, seafood, peanuts, and the labeling requirements for fresh red for country of harvest labeling. [Sec. and ginseng. Changes the labeling perishable agricultural commodities. meats, by creating a new labeling system 10004] requirements for fresh red meats by Specifies requirements on labeling USA for red meats with new designation creating a new labeling system for red products, on recordkeeping, certification, categories, e.g., defines U.S. origin as a meats with new designation categories, and on enforcement and fines for non- product from an animal exclusively born, e.g., defines U.S. origin as a product CRS-172 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) compliance. Annual appropriations bills raised and slaughtered in the U.S. (or from an animal exclusively born, raised delayed implementation of mandatory present in the U.S. before Jan. 1, 2008). and slaughtered in the U.S. (or present in COOL for all covered commodities until For all covered commodities, eases the U.S. before July 15, 2008). For all Sept. 30, 2008 (except wild and farm- record-keeping, certification covered commodities, eases record- raised fish and shellfish, which went into requirements, and reduces fines for keeping, certification requirements, and effect in 2005.) [7 U.S.C. 1621 et seq.] noncompliance. [Sec. 11104] reduces fines for noncompliance. [Sec. 11002] Agricultural Fair Practices Act The Agricultural Fair Practices Act No provision. Amends AFPA as follows: Amends AFPA to modify the previous (AFPA) of 1967 (P.L. 90-288) allows -- Expands the definition of definition of "association of producers" farmers to file complaints with USDA if "association of producers" to also to include organizations with a processor refuses to deal with them include general livestock, poultry membership exclusively limited to because they are members of a and farm groups. [Sec. 10101] agricultural producers and dedicated to bargaining or marketing association of -- Broadens the types of prohibited promoting their products. Also modifies producers. Makes it unlawful for practices. [Sec. 10102] the definition of "handler." [Sec. 11003] handlers to coerce, intimidate, or -- Amends the enforcement discriminate against producers because provisions; clarifies civil actions they belong to such groups. [7 U.S.C. against handlers, providing for 2301 et seq.] preventive relief, damage, and attorneys fees. [Sec. 10103] -- Directs USDA to promulgate rules/regulations. [Sec. 10104] Packers and Stockyards Act The Packers and Stockyards Act (P&S Amends the P&S Act to direct USDA to Amends the P&S Act as follows: Amends the P&S Act as follows: Act) of 1921 (P.L. 67-51), as amended, establish regulatory standards for -- Creates a new special counsel at -- Requires an annual report from provides USDA with the basic authority arbitration provisions in livestock and USDA to investigate/prosecute USDA on detailed investigations to regulate marketing practices in the poultry contracts. Among other things, violations of competition laws. into possible violations of the P&S livestock, poultry, and meat industries. such regulations are intended to permit a [Sec. 10201] Act; [Sec. 11004] The law is to prevent unfair, deceptive, producer to seek relief in a small claims -- Strengthens USDA enforcement -- Permits poultry and swine and monopolistic trade practices, court, if within the court's jurisdiction, authorities over live poultry producers to cancel their contracts focusing on livestock terminal and regardless of a contract's arbitration dealers. [Sec. 10202] up to 3 business days after signing, auction markets, livestock marketing clause. [Sec. 11102] -- Specifies conditions regarding unless a later date is specified in agencies, dealers, meat packers, and live cancelling and securing contracts. the contract; and requires clear poultry dealers. [7 U.S.C. 181 et seq.] Provides for producer choice of disclosure in contracts of jurisdiction and venue, including cancellation terms; arbitration. [Sec. 10203] -- Requires poultry/swine contracts to -- Allows growers to discuss contract contain a conspicuous statement terms. [Sec. 10204] that additional large capital CRS-173 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) -- Allows producers to seek remedy investments may be required for violations. [Sec. 10205] during the term of the contract; -- Allows USDA to seek outside -- Contains provisions intended to counsel to aid in investigations and assist producers deal with contract civil cases. [Sec. 10206] disputes, including arbitration -- Prohibits major packers from terms, venue for any litigation. owning, feeding, or controlling [Sec. 11005] livestock more than 14 days prior -- Requires USDA to issue rules on to slaughter. [Sec. 10207] such criteria as, for example, the -- Directs USDA to promulgate reasonable period of time a regulations. [Sec. 10208] producer should be given to remedy a breach of contract before it is cancelled. [Sec. 11006] Animal Pest and Disease Programs Sec. 2506(d) of the 1990 farm bill Sense of Congress regarding Similar to the House bill, and also Similar to the House bill, also authorizes appropriations and directs pseudorabies eradication program that recognizing the threat to the entire recognizing the threat to the entire USDA to carry out pseudorabies USDA recognize the threat feral swine livestock industry. [Sec. 10301] livestock industry. [Sec. 11007] eradication in U.S. swine populations. pose to the domestic swine population, Current concerns are that this disease and the need for a surveillance program persists in feral populations and may be for monitoring and eradication. reintroduced. [21 U.S.C. 114i] [Sec. 11101] Sec. 10409 of the Animal Health No comparable provision. Directs USDA to establish and Directs USDA to establish and Protection Act (AHPA), enacted as part implement a trichinae certification implement a voluntary trichinae of the 2002 farm bill, directs USDA to program. Authorizes appropriations of certification program. Requires USDA to carry out operations and measures to $1.25 million annually for FY2008-12. use not less than $6.2 million for the detect, control, or eradicate any livestock [Sec. 10304] program, subject to availability of pest or disease, incl. animals at appropriations. Authorizes annual slaughterhouse, stockyard, or other point appropriations of $1.5 million for of concentration. [7 U.S.C. 8308] FY2008-2012. [Sec. 11010] USDA has authority to cooperate with Sense of Congress regarding the cattle Same as the House bill. [Sec. 10302] Adopts House and Senate provision. states on laws that exclude, eradicate, fever tick eradication program that the [Sec. 11008] and/or control agricultural pests within cattle fever tick and the southern cattle the AHPA [7 U.S.C. 8301 et seq.] and tick are vectors of the causal agent of the Talmadge-Aiken Act [7 U.S.C. 450]. babesiosis, a severe and often fatal Sections of 21 U.S.C., Title 21 (Food and disease of cattle; and that implementing a Drugs) also cover the prevention and national strategic plan for the cattle fever spread of contagion. Current concerns tick eradication program is a high are about pesticide-resistant populations priority, among other things. CRS-174 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) of the southern cattle tick in Mexico. [Sec. 11106] Sec. 10407(d)(2) of APHA specifies Sense of Congress regarding the Amends AHPA to compensate any Amends the AHPA to require the compensation amounts for seizure, voluntary control program for low poultry contract grower or owner Secretary to compensate industry quarantine, and disposal of animals that pathogenic avian influenza program; and participating in the voluntary control participants and state agencies that may carry or have been infected with or that USDA should continue to provide program for low pathogenic avian cooperate in voluntary detection and exposed to pests or diseases, and are compensation payments to poultry influenza under the National Poultry control of diseases with low moved through interstate commerce or owners and cooperating state agencies at Improvement Plan. Specifies payments pathogenicity at 100% of eligible costs. are imported. [7 U.S.C. 8306(d)(2)] 100% of eligible costs. [Sec. 11105] to cooperating state agencies to be 100% [Sec. 11011] of the eligible costs. [Sec. 10306] No comparable provision. No comparable provision. Sense of Senate that USDA should work Deletes provision. with the private insurers to implement an expedited approach for indemnification of livestock producers in cases of cata- strophic disease outbreaks. [Sec. 10308] Sec. 10411 of AHPA authorizes USDA No comparable provision. Establishes an advisory committee on Permits USDA to enter into cooperative cooperative agreements with eligible national aquatic animal health; details agreements to carry out a project under a entities, including other governments and committee membership; requires USDA national aquatic animal health plan under associations, to conduct animal health regulations establishing a national aquatic Sec. 10411 of the AHPA. Requires activities. [7 U.S.C. 8310] animal health improvement program USDA to determine the nonfederal share under AHPA authority; authorizes of costs (to be either cash or in-kind) on a appropriations of $15 million for FY2008 case-by-case basis. Authorizes such and FY2009 for a new producer sums as necessary in each fiscal year, indemnification fund and for FY2008-FY2012. [Sec. 11013] implementation of an animal health task force plan. [Sec. 11086] National Animal Identification System No comparable provision in AHPA. No comparable provision. Requires USDA to issue regulations, Deletes provision. Under this authority, in 2004, USDA subject to public comment, addressing accelerated work on a voluntary "the protection of trade secrets and other National Animal Identification System proprietary and/or confidential business (NAIS) to trace animals from slaughter information that farmers and ranchers through all premises within 48 hours of disclose in the course of participation" in an animal disease outbreak. an animal ID system. [Sec. 10305] CRS-175 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Livestock Provision Related to Bioenergy Programs -- see section on Energy Programs (below) Other Commodity-Specific Provisions Sec. 375 of the Consolidated Farm and Reauthorizes appropriations of $10 Also eliminates statutory requirement to Similar to Senate provision, but does not Rural Development Act (Con Act), as million annually (FY2008-12). eventually privatize the revolving fund. rename the program. [Sec. 11009] amended, established the National Sheep Eliminates statutory requirement to Renames the program as the National Industry Improvement Center to provide eventually privatize the revolving fund. Sheep and Goat Industry Improvement financial assistance for the enhancement [Sec. 6015] Center, and provides for new mandatory and marketing of U.S. sheep or goat funding of $1 million for FY2008, to be products, focusing on infrastructure available until expended. Authorizes development. Funding includes manda- appropriations of $10 million annually tory funds of $28 million for a revolving for FY2008-12. [Sec. 10303] fund, and appropriations authorized at $30 million. [7 U.S.C. 2008j] No comparable provision. No comparable provision. Requires USDA study and report on the Requires USDA study and report on potential economic issues (including animal manure use as agricultural costs) associated with animal manure fertilizer, potential impact on consumers used in normal agricultural operations and agriculture from limitations on its and as a bioenergy feedstock. [Sec. utilization, and effects on agriculture of 10307] increasing its use for bioenergy production. [Sec. 11014] The 2002 farm bill does not include a No new title; includes most animal Creates new farm bill title, Livestock Creates new farm bill title, Livestock separate title for animal agriculture. agriculture provisions as part of the Marketing, Regulatory, and Related (Title XI). Miscellaneous Title XI. Programs (Title X). TITLE XII: CROP INSURANCE & DISASTER ASSISTANCE PROGRAMS Timing of Crop Insurance Payments and Receipts The federal government provides three Changes the timing of crop insurance Similar, but not identical, language as the Adopts the House provision that changes levels of subsidies to the crop insurance receipts (premium collections) and the House bill, which effectively requires the premium billing date to August 15 program: (1) subsidizing a portion of the timing of payments to the insurance premiums to be collected from producers [Sec. 12007], the Senate provisions that farmer-paid premium, (2) reimbursing companies, beginning with the 2012 slightly earlier, and payments to the change the timing of reimbursements to the private crop insurance companies for reinsurance year (which starts July 1, insurance companies to be made slightly the private companies for operating most administrative and operating 2011). Two insurance years of program later, beginning in the 2012 crop year, so expenses to between October 1 and 31 expenses, and (3) absorbing most of the receipts will be received in the same that savings can be scored in the last year [Sec. 12015] and underwriting gains to program losses. [7 USC 1501 et seq.] fiscal year (FY2012) and payments will of the 5-year farm bill (FY2012). [Secs. October 1 [Sec. 12018], thus allowing the be delayed until the next fiscal year, thus 1906 and 1914] scoring of budget savings in FY2012. scoring budget savings in FY2012. [Secs. 11001(c), 11001(e), and 11010] CRS-176 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Reimbursement of Administrative and Operating Expenses Prior law prohibited companies from Beginning in the 2009 reinsurance year, Beginning in the 2009 reinsurance year, Beginning in the 2009 reinsurance year, receiving a reimbursement greater than the reimbursement rate to the insurance the reimbursement rate for additional the reimbursement rate for additional 24.5% of total premiums. The Standard companies for their administrative and coverage policies falls by 2 percentage coverage policies falls by 2.3 percentage Reinsurance Agreement (SRA) operating expenses for all policies points. An exception is any reinsurance points. Restores one-half of the established the reimbursement rate below declines by 2.9 percentage points from year in any state that has a loss ratio reduction in states with a loss ratio the statutory maximum for all insurance the current rate. The range of greater than 1.2 (i.e., when indemnity greater than 1.2. The reimbursement rate plans, ranging from 18.1% to 24.2%. [7 reimbursement rates declines to between payments exceed total premiums by more for policies based on area-wide losses is USC 1508(k)(4)(A)] 15.2% to a maximum of 21.3%. [Sec. than 20%). The reimbursement rate for reduced to 12% of total premiums. [Sec. 11001(d)(1)] policies based on area-wide losses is 12016] reduced to 17% of total premiums. [Sec. 1912] Premiums and Fees For catastrophic (CAT) coverage, Increases the producer-paid fee for Similar to the House bill for raising the Raises the CAT fee to $300 per crop per producers pay no premium, but pay an catastrophic coverage to $200 per crop CAT fee to $200. The NAP fee is county. [Sec.12006] Increases the NAP administrative fee of $100 per crop per per county. For NAP, the fee also is increased to $200 per crop per county, or fee to $250 per crop per county, or $750 county. [7 USC 1508(b)(5)(A)] Growers raised to $200 per crop per county, or $600 per producer per county, not to per producer per county, not to exceed of uninsurable crops are eligible for a $600 per producer per county, not to exceed $1,500 per producer. [Secs. 1905 $1,875 per producer. [Sec. 12028] separate Noninsured Assistance Program exceed $1800 per producer. [Secs. 11002 and 1926] (NAP) and pay a fee of $100 per crop, or and 11009] $300 per producer per county, not to exceed $900 per producer. [7 USC 7333(k)(1)] When permitted by state law, a Limits the ability of associations to pay Revises prior law to clarify that the Adopts the provision in Sec. 1905 of the cooperative or trade association may pay the CAT fee on behalf of a producer. provision applies only to fees for CAT Senate bill which clarifies that coop- on behalf of its members, any or all of [Sec. 11001(b)] Prohibits insurance coverage. [Sec. 1905] eratives and trade associations can pay the administrative fee for CAT coverage. companies from paying or rebating only the fees for catastrophic coverage on [7 USC 1508(b)(5)(B)] . premiums, or making any inducements to behalf of their members. [Sec. 12006] purchase crop insurance. [Sec. 11001(a)] Adopts the provision in Sec. 11001(a) of the House bill that prohibits the rebating of premiums, with certain exceptions for entities that have already been approved for rebating. [Sec. 12004] Authorizes crop insurance companies to Strikes authority for companies to offer a Strikes authority for PRP only, and Strikes authority for the PRP only. offer customers a discount when the Premium Reduction Plan (PRP) or requires USDA to commission a study on [Sec. 12010] insurance companies adopt efficiencies Premium Rate Reduction Pilot program. the feasibility of the PRP within 18 CRS-177 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) that reduce their administrative and [Sec. 1101(f)] months of enactment. [Sec. 1908] operating costs. [7USC 1508(b)(5)(A)] No comparable provision. Reduces the premium subsidy for area No comparable provision. Adopts House provision. risk plans by 4 percentage points. [Sec. [Sec. 12012] 11013] Requires USDA to set premiums so that No comparable provision Reduces the statutory loss ratio to 1.0, Adopts Senate provision. the overall program loss ratio is 1.075. meaning that total premiums should be [Sec. 12003] [7 USC 1506(n)] established to equal expected total indemnity payments. [Sec. 1903] Authorizes an Agricultural Management No comparable provision Allows USDA to use AMA funds to Deletes Senate provision. Assistance (AMA) program to in part match state funds used to provide help certain states make better use of risk additional premium discounts to management tools. [7 USC 1524(b)] underserved states. [Sec. 1923] Standard Reinsurance Agreement and Risk-Sharing The Standard Reinsurance Agreement Requires the private insurance companies No comparable provision. Deletes House provision. (SRA) between the federal government to reinsure at least 22% of their retained and private crop insurance companies premiums with the government, and in determines levels of risk sharing. The return the government will provide a agreement requires companies to reinsure ceding commission of 2% to companies, 5% of their retained premium with the allowing the government to receive some government. underwriting gains that would otherwise accrue to the companies. [Sec. 11014] No comparable provision. USDA can renegotiate the SRA starting Similar to the House bill, except that Allows USDA to renegotiate the SRA with the 2012-13 reinsurance year, and USDA has discretion to renegotiate the beginning with the 2010-11 reinsurance once every 5 years thereafter. Insurance SRA more frequently than every 5 years, year and once every 5 years thereafter. companies can confer with each other with congressional notification of such Adopts the Senate provision to allow during the process. [Sec. 11001(d)(2)] action. Allows crop insurance companies companies to confer with each other and to confer with each other and collectively collectively with USDA during with USDA during the renegotiation renegotiation. SRA can be renegotiated process. [Sec. 1913] more than once in a 5-year period if one of the changes is required by law, and Congress is notified. [Sec. 12017] CRS-178 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Program Integrity (Waste, Fraud, and Abuse) Annual mandatory funds of $23 million Authorizes mandatory funding of $11 Requires USDA to establish a program Provides mandatory funding of up to $4 for data mining and program integrity million in FY2008, and $7 million in whereby crop insurance companies pay million per year beginning in FY2009 for activities expired at the end of FY2005. FY2009 and subsequent years for crop USDA a fee for access to its data mining data mining, and requires periodic [7 USC 1516(k)] Annual appropriations insurance program compliance and system, and USDA uses proceeds for its competition for the funds. Adds a new acts provided $3.6 million in annual integrity activities, including data data system. [Sec. 1915] Prohibits subsection to provide mandatory funds of discretionary funds (FY2006, FY2007). mining. [Sec. 11008] farmers from collecting commissions as up to $15 million per year over 4 years FY2008 appropriations act authorized agents on policies in which their family (FY2009-13) to upgrade USDA's mandatory funds of $11.2 million. has a substantial interest. [Sec. 1904] computer technology for crop insurance. [Sec. 12021] Adopts Senate provision that prohibits farmers from collecting commissions as agents on policies in which their family has an interest, modifying the definitions of "family" and "compensation." [Sec. 12005] Risk Management Research and Development USDA is required to reimburse an Authorizes USDA to use no more than Reduces annual mandatory funding for Adopts Senate provision to reduce applicant for the R&D costs associated $30 million annually in mandatory funds R&D from $15 million to $7.5 million, mandatory funding for R&D to $7.5 with developing a new plan of crop for grants for R&D and education and and for contracting and partnerships from million and for contracting/partnerships insurance that is approved by USDA [7 information programs, of which $5 $25 million to $12.5 million. Prohibits a to $12.5 million. [Sec. 12024] USC 1522] and with developing crop million is for underserved states. surcharge on premiums for organic crops, Applicants with approved concept papers insurance education programs. [7 USC Stipulates criteria for which grants will unless greater loss history is confirmed. for a new policy can receive up to 50% 1524] Annual mandatory funding is $15 be awarded. Requires USDA to enter into Establishes an alternative reimbursement of expenses in advance, and the balance million for R&D reimbursements and contracts to improve coverage for grant process. Requires USDA to enter upon approval. [Sec. 12022] Adopts $25 million for contracting and organic crops, and to address the needs of into contracts to expand coverage for House provision to enter into contracts to partnerships. [7 USC 1522(e)] beginning and minority farmers. [Secs. organic crops, aquaculture, energy crops improve coverage for organic crops, and 11003-11006] such as switchgrass, and to address the Senate provisions for energy crops and needs of beginning and minority farmers. aquaculture, and other new provisions for [Secs. 1917-1919, 1907] poultry, beekeepers, and beginning farmers. [Sec. 12023] Requires USDA to develop risk management education programs for beginning, immigrant, socially disadvantaged, retiring, and transitioning farmers. [Sec. 12026] CRS-179 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Small Business Disaster Loan Program The Small Business Administration No comparable provision. Makes many changes to SBA disaster Adopts Senate provision with changes. offers low interest, fixed-rate loans to loan program authority including raising [Secs. 12051-12086] small businesses to help them recover the loan cap from $1.5 million to $2 from economic injury caused by a natural million; extending assistance to non- disaster. [15 USC 636(b), (c), and (f)] profits; enhancing SBA and FEMA Note: Farmers generally are not eligible coordination of disaster response, among for SBA loans, and instead receive other provisions. [Secs. 11111-11161] assistance through USDA programs. Supplemental Agriculture Disaster Assistance -- see section on Trade and Tax Provisions (Title XV) "Sodsaver" Provisions Related to Farmland Conservation -- see section on Conservation Programs (Title II) Other Crop Insurance Provisions No comparable provision. Establishes a National Drought Council No comparable provision. Deletes House provision. within USDA and national drought preparedness plans, including a Drought Assistance Fund to provide technical and financial assistance to states for mitigating drought risk. [Sec. 11012] Ad-hoc emergency disaster payments are Prohibits USDA from using production Similar to the House bill. Also requires Adopts Senate provision. [Sec. 12029] available to producers who experienced data from the sweet potato crop insurance USDA to extend the disaster application significant losses to a 2005, 2006, or pilot program in determining crop deadline for sweet potato growers, if 2007 crop. (Sec. 9001 of P.L. 110-28, as disaster payments for 2005 and 2006. necessary, to implement this provision. amended by P.L. 110-161). [Sec. 11016] [Sec. 1927] Authorizes USDA to create crop Mandates a sesame insurance pilot Creates pilot programs for sesame [Sec. Authorizes separate insurance pilot insurance pilot programs. [7 USC 1523] program for Texas. [Sec. 11011] 1921], camelina [Sec. 1920], and programs, for sesame, camelina, grass enterprise/whole farm units [Sec. 1909]. seed [Sec. 12025] and for enterprise and whole farm units (with modifications to the Senate provision) [Sec. 12011] No comparable provision. No comparable provision. Makes contract livestock producers No provision addressing the eligibility of eligible for crop insurance, if not covered contract livestock producers. Adopts the by other policies. [Sec. 1916] Requires a requirement that USDA report on USDA report within 180 days of declining yield issues. [Sec. 12030] enactment on issues regarding declining crop insurance yields, especially for perennials. [Sec. 1928] CRS-180 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. Defines an organic crop as any Adopts Senate provision. [Sec. 12001] agricultural commodity organically produced consistent with Section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C. 6502). [Sec. 1901] TITLE XIII: COMMODITY FUTURES Authorization for the Commodity Futures No comparable provision. Reauthorizes the CFTC. [Sec. 13001- Reauthorizes appropriations for the Trading Commission (CFTC), a "sunset" 13204] Clarifies the CFTC's jurisdiction CFTC (FY2008-FY2013). Amends the agency established in 1974, expired on over foreign exchange contracts offered Commodity Exchange Act to (1) clarify Sept. 30, 2005. In the past, Congress has to retail customers. Expands CFTC's CFTC jurisdiction over retail financial used the reauthorization process to authority over non-exchange "electronic contracts based on foreign currencies, (2) consider amendments to the Commodity trading facilities" where contracts based make the CFTC's anti-fraud authority Exchange Act, which provides the basis on metals and energy commodities are applicable to certain off-exchange or for federal regulation of commodity traded. If the CFTC determined that over-the-counter derivatives contracts, futures trading. The last reauthorization trading on such a market played a (3) increase civil monetary and criminal resulted in the enactment of the Commo- significant role in price discovery, the penalties for violations, (4) permit dity Futures Modernization Act of 2000 facility would have to comply with cross-margining of accounts in security (CFMA), the most significant amend- several core regulatory principles, futures and options, and (5) establish ments to the CEA since the CFTC was including maintaining and enforcing CFTC regulation over certain created in 1974. [7 U.S.C. 2(c)(2))] Both rules to prevent price manipulation. Such exchange-like trading facilities that are chambers considered reauthorization bills markets would also have to publish data currently exempt from most regulation. in the 109th Congress; none was enacted. on prices and trading volume. [Sec. 13001- 13204] TITLE XIV: MISCELLANEOUS Section 32 Funding for Nutrition Programs Section 32 of the Act of August 24, 1935, No comparable provision. No comparable provision. Provides explicit instructions on how authorizes a permanent appropriation each year's Section 32 money must be equal to 30% of annual U.S. customs allocated, in order to fund the fresh fruit receipts, to be used by USDA only for: and vegetable program (Sec. 4304 of the (1) encouraging the export of farm nutrition title). Essentially caps Section products through producer payments or 32 "unobligated" funds -- i.e., the other means; (2) encouraging the amount the Secretary (through AMS) is domestic consumption of farm products permitted to spend after transfers for use by diverting surpluses from normal in the child nutrition programs and to channels or increasing their use by Commerce for fisheries activities. The low-income groups; (3) reestablishing program under Sec. 4304 is to be funded farmers' purchasing power. The with a portion of these unobligated funds. Secretary of Agriculture has considerable [Sec. 14222] To fund a new CRS-181 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) discretion in deciding how to achieve requirement (in the nutrition title under these broad objectives. Sec. 4305) to purchase whole grain [7 U.S.C. 612c] products for the school lunch and breakfast programs, the Secretary must make available, in FY2009, $4 million in Section 32 money. [Sec. 14222] Socially Disadvantaged and Limited Resource Producers Sec. 2501(a)(1) of the 1990 farm bill Amends program to specify that technical Similar to the House bill, with technical Allows additional contracting authority established Outreach and Assistance for and outreach assistance program is to be differences. Authorizes appropriations of and does not require matching funds. Socially Disadvantaged Farmers and used to enhance the coordination, up to $50 million annually for [Sec. 11053]Adopts Senate provisions Ranchers and Limited Resource Farmers outreach, technical assistance, and FY2008-12. No more than 5% of funds with modification to delete language and Ranchers, authorizing USDA to education efforts authorized under USDA are to be used for administrative pertaining to renewal of contracts, review carry out outreach and technical programs. Mandates CCC funding of expenses. [Sec. 11052] of proposals, coordination of with assistance to assist socially disadvantaged $15 million annually for FY2008-12. No USDA's Office of Outreach, and farmers and ranchers in: owning and more than 5% of funds are to be used for additional contracting authority. Provides operating farms and ranches; and in administrative expenses. [Sec. 11201] $75 million in mandatory funding for the participating equitably in the full range of Outreach and Assistance for Socially agricultural programs offered by USDA Disadvantaged Farmers and Ranchers [7 U.S.C. 2279] and Limited Resource Farmers and Ranchers program. [Sec. 14004] Sec. 2501(g)(1) of the 1990 farm bill Reauthorizes improved program delivery Similar to the House bill, with technical Adopts House provision. directs USDA to improve service by USDA on Indian reservations. [Sec. differences. [Sec. 11054] [Sec. 14001] delivery on Indian reservations. [7 U.S.C. 11202] 2279(g)(1)] No comparable provision in statute, but No comparable provision. Places a moratorium on USDA farm loan Adopts the Senate provision, with USDA guidance prohibits loan foreclosures when there exists a pending modification; places provision in foreclosure when a pending claim of claim of discrimination against USDA. different U.S. Code section. [Sec. 14002] discrimination against USDA exists. Sec. 2501A(c)(1) of the 1990 farm bill Directs USDA annually to compile Similar to the House bill. Directs USDA, Adopts House provision. directs USDA to annually compute the program application and participation acting through USDA's Assistant [Sec. 14006] participation rate of socially rate data on socially disadvantaged Secretary for Civil Rights, to use the disadvantaged farmers and ranchers as a farmers and ranchers for each county and enhanced data collection [Sec. 11056], percentage of the total participation of all state. Data are to be made public. but also to conduct oversight and farmers and ranchers for each USDA [Sec. 11203] evaluation of civil rights compliance. program [7 U.S.C. 2279] [Sec. 11064] CRS-182 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Sec. 7405 of the 2002 farm bill Reauthorizes program, and provides $15 Authorizes $30 million in annual Adopts Senate provision. Moves the establishes the Beginning Farmer and million in mandatory funding annually appropriations. Incorporates energy program to Title VII (Research) and Rancher Development Program; provides (FY2008-12). [Sec. 11204] conservation efficiency and transition to deletes several provisions. Adds $15 training, education, outreach/technical organic farming into program, limiting million in mandatory funding for assistance initiatives. [7 U.S.C. 3319f] grants to $250,000 each. [Sec. 7309] FY2009 and $20 million annually FY2010-2012. [Section 7410] No comparable provision. Authorizes USDA to provide a receipt Specifies that the USDA's Farm Service Adopts Senate provision. Adds USDA for service or denial of service upon Agency and USDA's Natural Resources Rural Development to the agencies request to any applicant for USDA loans Conservation Service as the agencies subject to the provision. and grants. [Sec. 11205] subject to this provision; requires USDA [Sec. 14003] receipt upon request. [Sec. 11057] No comparable provision. Directs USDA to ensure that the Census Similar to the House bill. Adopts Senate provision. of Agriculture and USDA's Economic [Sec. 11055] [Sec. 14005] Research Service (ERS) track socially disadvantaged and limited resource farmers and ranchers. [Sec. 11206] No comparable provision. Directs USDA to prepare a plan to join No comparable provision. Adopts House provision with the technical and support assistance for modifications. [Sec. 14013] socially disadvantaged farmers/ranchers within the Office of Outreach, and to relocate USDA's office. [Sec. 11208] No comparable provision. Directs USDA to establish an Advisory No comparable provision. Adopts House provision with changes. Committee on Minority Farmers under Deletes components pertaining to review USDA's Office of Outreach, which will of civil rights enforcement, annual be responsible for reviewing civil rights reporting on civil rights, and program cases and ensuring they are processed in review. Revises membership of the a timely manner. [Sec. 11209] committee. [Sec. 14008] No comparable provision. Directs USDA to establish a Coordinator No comparable provision. Adopts House provision with an for Chronically Underserved Rural amendment to locate the Coordinator in Areas, to be located in USDA's Office of USDA Rural Development instead of the Outreach and to direct resources to high Office of Outreach. [Sec. 14118] need, poverty rural areas. [Sec. 11210] No comparable provision. No comparable provision. Creates an Office of Small Farms and Adopts Senate provision with an Beginning Farmers and Ranchers to amendment that the provision subsume CRS-183 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) coordinate USDA activities across this office into USDA's Office of agencies to ensure access to all USDA Advocacy and Outreach. [Sec. 14013] programs for small, beginning, and socially disadvantaged farmers and ranchers, representation in Agriculture Census data, and development of and access to enhanced outreach programs. [Sec. 11088] Pigford Discrimination Decision Commonly known as the "Pigford Permits any claimant in the Pigford Similar to the House bill, but with Adopts Senate provision with decision," pertains to a federal district decision who has not previously obtained technical differences. Authorizes modifications. [Sec. 14012] court decision resolving a class action a determination on the merits of a claim, appropriations of such sums as necessary discrimination suit between USDA and to petition in civil court to obtain such a beyond the $100 million in mandatory black farmers. The suit claimed USDA determination (limits total amount of funding. [Sec. 5402] discriminated against black farmers on payment/debt relief pursuant to this court the basis of race and failed to investigate action to $100 million). Restricts USDA or properly respond to complaints from from starting foreclosure of a loan if the 1983-1997. [Pigford v. Glickman, No. borrower is a Pigford claimant who can 97-1978 and No. 98-1693 (D.D.C. July show that a pending foreclosure is related 14, 2000)] to a Pigford claim. [Sec. 11312] Agricultural Biosecurity No comparable provision. No comparable provision. Identifies Subtitle A of Title XI with the Gives the subtitle the name "Agricultural heading, "Agricultural Security." Security Act of 2008." [Sec. 14101] No comparable provision. No comparable provision. Defines the terms for purposes of Adopts Senate provision, with program: agent, agricultural biosecurity, modifications. Adds definition for agricultural countermeasure, agricultural agricultural disease emergency. [Sec. disease, agriculture, agroterrorist act, 14102] animal, department, development, plant, and qualified agricultural counter- measure. [Sec. 11011] No comparable provision, but USDA No comparable provision. No comparable provision. Creates an "Office of Homeland created a "Homeland Security Staff" after Security" within USDA to coordinate the events of September 11, 2001. agroterrorism and agricultural disease efforts and to be a liaison with other agencies. Codifies the functions of the CRS-184 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) former homeland security staff. [Sec. 14111] No comparable provision. No comparable provision. No comparable provision. Creates an "Agricultural Biosecurity Communications Center" to collect and share information. [Sec. 14112] No comparable provision, but Homeland No comparable provision. Establishes (1) a National Plant Disease Deletes Senate provision. Security Presidential Directive 9 (HSPD- Recovery System of countermeasures to 9) instructs USDA and DHS to develop a respond to an outbreak of plant disease National Plant Disease Recovery System within a single growing season; and (2) a and a National Veterinary Stockpile. National Veterinary Stockpile of counter- [HSPD-9(18)] measures, available to state veterinarians within 24 hours to leverage the strategic national stockpile. [Sec. 11012] No comparable provision. No comparable provision. Establishes a competitive grant program Adopts Senate provision, with at USDA to stimulate R&D of modifications to remove specificity, agricultural countermeasures. Waves including for coordination with DHS. competitive process in emergencies. [Sec. 14121] Provides for coordination with DHS grants and countermeasure development. Authorizes annual appropriations of $50 million for FY2008-12. [Sec. 11013] No comparable provision, but HSPD-9 No comparable provision. Establishes a veterinary workforce grant Adopts Senate provision, with instructs USDA to support the program at USDA to increase the number modification. Expands program to development and promotion of higher of veterinarians trained in biosecurity. agriculture, veterinary medicine, and education programs for the protection of Authorizes appropriations (such sums as food science. [Sec. 14122] animal and plant health. [HSPD-9(20)] necessary) for FY2008-12. [Sec. 11014] No comparable provision. No comparable provision. Provides grants for biosecurity training Adopts Senate provision. [Sec. 14113]. programs in planning, preparedness and response for food science professionals/ veterinarians. Authorizes appropriations (such sums as necessary) for FY2008-12. Provide grants and low-interest loans to states to assess response capability for food science and veterinary biosecurity. Authorizes annual appropriations of $25 million for FY2008-12. [Sec. 11015] CRS-185 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Prohibits importation of foot and mouth Allows explicitly for USDA to conduct Requires USDA to issue a permit to DHS Adopts Senate provision, with disease (FMD) virus, and limits research FMD (and other hazardous virus) to possess and work with live foot and modification. Refers to successor facility on FMD virus to locations outside of the research on the U.S. mainland without FMD virus at the proposed National Bio- to Plum Island (rather than NBAF U.S. mainland to lessen the likelihood issuing itself a permit. Prohibits anyone and Agro-Defense Facility (NBAF), specifically), limits issuance of permit to that an accidental laboratory release of other than USDA from possessing certain subject to compliance with USDA rules one facility. [Sec. 7524] FMD might reach domestic animals. By viruses on a USDA-prescribed list, unless for handling "select agents." Leaves statute, USDA must explicitly permit USDA issues a permit. But the unchanged the current restrictions on research on FMD virus to be performed prohibition would not apply to "select possession of FMD and other dangerous on the mainland of the United States, and agents," and FMD virus is a select agent. viruses. [Sec. 11016] has not yet done so. [21 U.S.C. 113a] [Sec. 7108] Sets civil penalties for violations of the No comparable provision. Amends civil penalties as follows: Adopts Senate provision with Plant Protection Act: $50,000 in the case $500,000 for each violation adjudicated modification. No change in statute of of any individual (civil penalty may not in a single proceeding; adds a penalty of limitations, expand scope of penalties, exceed $1,000 in the case of an initial $1 million for each violation adjudicated and clarify subpoena authorities. [Sec. violation for moving regulated articles in a single proceeding involving a 10203] Identical changes made to the not for monetary gain); $250,000 in the genetically modified organism. Requires Animal Health Protection Act. [Sec. case of any other person for each action on a violation no later than 5 years 11012] violation; $500,000 for all violations after the date of violation. [Sec. 11017] adjudicated in a single proceeding; or twice the gross gain or gross loss for any violation, forgery, counterfeiting, unauthorized use, etc. [7 U.S.C. 7734(b)] No comparable provision. No comparable provision. Requires a DHS report on regulations for Adopts Senate provision with the possession of propane in certain modification. [Sec. 14206] quantities, including number of facilities, alternative security programs, and compliance costs. [Sec. 11070] Food Safety Commission Sec. 10807 of the Farm Security and No comparable provision. Establishes a Congressional Bipartisan Deletes Senate provision. Rural Investment Act of 2002 (P.L. 107- Food Safety Commission to study and 171) established a 15-member Food make recommendations to modernize Safety Commission appointed by the food safety programs, including President to make recommendations to organizational and resource requirements enhance the U.S. food safety system. emphasizing prevention and to be based Provision not implemented. [21 U.S.C. on risk assessment and best-available 341 note] science. Specifies membership requirements, meeting procedures and CRS-186 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) timetables, and other reporting aspects. [Sec. 11060] Requires the President to review the report and submit proposed legislation based on recommendations. Expresses Sense of the Senate on the need for additional resources and direction for federal food safety agencies, for agreements between the U.S. and its trading partners, and for comprehensive food safety legislation. [Sec. 11072] Foods from Cloned Animals FDA had asked companies to voluntarily No comparable provision. Prohibits FDA from issuing a final risk Deletes Senate provision. not introduce meat and milk from cloned assessment and lifting the voluntary animals and offspring until it completes a moratorium until completion of newly final risk assessment and guidance on mandated National Academy of Sciences their safety. FDA published the final risk and USDA studies, respectively, on the assessment/guidance on 1/15/08; USDA safety and on the market impacts of has asked that the moratorium on cloned introducing products from cloned animals (but not offspring) continue until animals. [Sec. 7507] markets are educated on safety. Invasive Species A number of federal agencies, including No comparable provision. Sets forth new requirements to require Deletes Senate provision. USDA, have statutory responsibilities cooperation among federal agencies and aimed at preventing the introduction of specifically Hawaii to prevent/control the and controlling invasive species. spread of invasive species in the state; establishes expedited procedures for Hawaii to seek federal approval to adopt restrictions. Authorizes appropriations of such sums as necessary (FY2008-12). [Sec. 11063] USDA is authorized under several No comparable provision. Clarifies that USDA may provide funds Deletes Senate provision. authorities to provide financial assistance on an emergency basis to assist states in to eradicate outbreaks of invasive pests combating invasive pest and disease and diseases, including on an emergency outbreaks for any appropriate period of basis. years after the date of initial detection, as determined by USDA. [Sec. 11078] CRS-187 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) The Plant Protection Act (PPA) [7 U.S.C. No comparable provision. Establishes a revolving loan fund for Adopts Senate provision with changes to 7701 et seq.] authorizes USDA's Animal eligible local governments to borrow up replace the term "invasive species" with and Plant Health Inspection Service to $5 million (at 2% interest), to finance the term "pest and disease." Moves (APHIS) to cooperate with states, purchases of equipment to monitor, provision to Title X (Horticulture and localities and others to prevent the spread remove, dispose of and replace infested Organic Agriculture). [Sec. 10205] of and eradicate invasive pests and trees within their jurisdictions; spells out Generally adopts Senate language on diseases, some which are affecting trees repayment terms. Authorizes cooperative agreements, also moving the in urban areas, including the Asian appropriations of such sums as necessary provision to Title X. [Sec. 10206] Longhorned Beetle and the Emerald Ash [Sec. 11090] Requires USDA, in Borer. cooperation with states, to allow states to pass along cost-sharing assistance to local government for activities relating to invasive species infestations. [Sec. 11091] Animal Welfare Act No comparable provision under the Amends the AWA to prohibit use of live No comparable provision on medical Increases maximum fines for AWA Animal Welfare Act (AWA) as amended animals for marketing medical devices. marketing. violations from $2,500 to $10,000 per [7 U.S.C. 2131 et seq.], which is intended Increases the cap for AWA violations to violation. Deletes House provision on to ensure the humane treatment of $10,000 per violation, and specifies that medical device marketing. [Sec. 14214] research animals, bred for commercial each day, each violation, and each animal sale, exhibited to the public, or subject to a violation be considered a commercially transported; and to prevent separate offense, among other things. animal fighting activities. Authorizes [Sec. 11316] fines of up to $2,500 per violation; each violation and each day is considered a separate offense. Sec. 7 of the AWA prohibits research Replaces Sec. 7 with new language on Same as the House provision with an Directs USDA to review "any facilities from buying dogs or cats except the definition of a person regulated under additional provision directing that use of independent reviews by a nationally from certain persons regulated under the this section, and on permissible sources random source dogs and cats from "Class recognized panel of experts" on Class B AWA. of dogs and cats for research facilities. B dealers" is to be phased out within 5 use by researchers, and to report on any Introduces an additional penalty of years of enactment. [Sec. 11079] recommendations applying to USDA. $1,000 for each violation of this section [Sec. 14216] of the AWA. [Sec. 11317] Sec. 26 of the AWA spells out a series of No comparable provisions on animal Amends the AWA to strengthen Animal fighting provisions generally prohibited acts related to animal fighting fighting or commercial importation of prohibitions on dog and other animal reflect Senate language. [Sec. 14207] and establishes penalties for violations. young dogs. fighting activities; defines a dog fighting Dog importation provisions generally [18 U.S.C. 49] Enables the federal venture; and appears to expand who can reflect Senate language, with additional CRS-188 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) government to collect costs incurred for collect for costs of care of seized animals. limited exceptions for those imported caring for seized animals. No Increases the maximum imprisonment into Hawaii. [Sec. 14210] comparable AWA provision on from 3 to 5 years. [Sec. 11076] importation of young dogs. Amends the AWA to require HHS and USDA regulations prohibiting importing, for resale, unless they are at least 6 months of age, in good health, and have all necessary vaccinations (exemptions for research or veterinary treatment). [Sec. 3205] Other APHIS-Related Provisions FDA since 1975 has banned the sale of No comparable provision. Requires FDA to study the prevalence of Deletes Senate provision. pet turtles under four inches long due to Salmonella in legally-sold reptiles and health concerns (i.e., the risk of children amphibians in the U.S. compared with getting Salmonella infections from them). the level in pet turtles. If prevalence is Does not ban sale of other pet reptiles similar, USDA is to take additional and amphibians. [21 C.F.R. 1240.62 (b)] specified actions. [Secs. 11101-11103] USDA's Animal and Plant Health Requires USDA to coordinate fruit and No comparable provision. Adopts House language with changes to Inspection Service (APHIS) operates a vegetable market analyses with its include a provision, in the Technical program (other legislative authority) that Foreign Agricultural Service and with the Assistance for Specialty Crops program provides certification as a service to U.S. private sector; requires USDA to list on (in Title III), requiring an annual USDA exporters desiring to meet foreign the Internet the status of all plant-related report on sanitary and phyto-sanitary sanitary and phytosanitary (SPS) export petitions, and provide SPS-related trade barriers. [Sec. 3203] requirements. information. [Sec. 11307] The 1990 farm bill, as amended, No comparable provision. Exempts, from AQI user fees, trucks Deletes Senate provision. authorizes APHIS to collect agricultural transiting Canada between Alaska and quarantine inspection (AQI) user fees for the lower 48 states (and vice versa), so both APHIS and DHS's Customs and long as they remain sealed when in Border Protection services in connection Canada. [Sec. 11080] with preclearance or the port-of-entry arrival of international passengers and of commercial vessels, trucks, loaded railroad cars, aircraft. [21 U.S.C. 136a] The USDA-APHIS Wildlife Services No comparable provision. Sense of Senate that USDA's Wildlife Deletes Senate provision. program is charged with helping to Services program should not compete alleviate wildlife damage to agricultural, with or condone competition with the CRS-189 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) urban, and natural resources. [7 U.S.C. private sector in managing nuisance birds 426] in urban areas [Sec. 11085] Miscellaneous Provision Related to Payments to Deceased Farmers -- see section on Commodity Programs (above) Miscellaneous Rural Development Provisions No comparable provision. No comparable provision. Amends the Con Act to authorize a new Adopts Senate provision with Northern Border Economic Development modifications to authorize the Northern Commission (VT, NY, NH, and ME); Border Development Commission. authorizes appropriations of $40 million Authorizes 3 additional regional annually (FY2008-12). [Sec. 6034] development commissions: Southeast Crescent Commission, the Southwest Border Regional Commission. Provides each with $30 million each FY2002- 2012. [ Sec. 14217] No comparable provision. Prohibits closure or relocation of Prohibits any expenditures to close Adopts the House provision with USDA's Farm Service Agency (FSA), "critical access county FSA offices" modification. Extends prohibition to two Natural Resources Conservation Service, through 2012, unless approved by years after enactment; allows exceptions and Rural Development Agency county Congress. [Sec. 11071] and requires notice. [Sec. 14212] offices until one year after enactment. [Sec. 11306] No comparable provision. Authorizes USDA to make grants to Similar to the House bill, except it Adopts Senate provision. reduce the availability of anhydrous provides that a grant can be used either [Sec. 14203] ammonia to curtail the production of for a physical lock or a chemical methamphetamine (up to $15 million for) substance. [Sec. 11062] FY2008-12. [Sec. 11308] No comparable provision. Authorizes USDA to make available to No comparable provision. Adopts House provision with amendment rural areas any excess and surplus USDA to ensure that the activities authorized computers. [Sec. 11303] under this section are in addition to, and would not replace, activities conducted under other existing authorities of USDA on property disposal. [Sec. 14220] No comparable provision. No comparable provision. Provides emergency grants to Deletes Senate provision. community-based agencies to assist low-income migrant and seasonal farmworkers (for use in transportation, CRS-190 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) food, clothing, housing). [Sec. 11061] No comparable provision. Sense of Congress regarding "food No comparable provision. Adopts Senate provision with an deserts" or geographically isolated amendment to move the provision to neighborhoods/communities with limited Title VII (Research), to define the term or no access to major grocery stores. "food desert," and to include an Directs USDA, in coordination with other authorization of appropriations for the agencies/nonprofits, to conduct a national national assessment. [Sec. 7527] assessment. [Sec. 11311] No comparable provision. No comparable provision. Authorizes USDA to make grants to Adopts Senate provision with an community -based organizations to amendment to clarify the eligible services improve the supply, stability, safety, and that may be provided with grant funds training of farmworkers. under the program. Specifies assistance [Sec. 11066] may be provided to farm-workers who are citizens or otherwise legally present in the United States. [Sec. 14204] No comparable provision. No comparable provision. Directs GAO, in consultation with other Deletes Senate provision. agencies and organizations to issue a report on access to health care for farmers. [Sec. 11074] Various sections of the Department of Directs USDA to create a Farmworker Similar to the House bill, but amends Adopts Senate provision with an Agriculture Reorganization Act of 1994 Coordinator (working in consultation different section of the Department of amendment to specify the Coordinator pertain to the reorganization of USDA. [7 with other agencies and organizations) to Agriculture Reorganization Act of 1994. shall have responsibility for assisting U.S.C. 6933; 7 U.S.C. 7014] assist and support farmworkers and [Sec. 11059] farmworkers in becoming producers and migrant seasonal workers. [Sec.11207] landowners. [Sec. 14013] No comparable provision. No comparable provision. Directs USDA to conduct a study on the Deletes Senate provision. economic impacts of local food systems and commerce. [Sec. 11089] Other Miscellaneous Title Provisions Provision pertaining to U.S. government Eliminates the statute of limitations Similar to the House bill. [Sec. 11069] Adopts House provision. [Sec. 14219] claims collected from a person through applicable to collection of debt by administrative offset. [31 U.S.C. 3716(e)] administrative offset. [Sec. 11314] CRS-191 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Allows disclosure of financial Allow financial institutions to disclose an Similar to House bill. [Sec. 11068] Adopts Senate provision. [Sec. 14205] information in certain circumstances. [12 individual's financial records to the U.S.C. 3413] government to prevent fraud. [Sec. 11310] No comparable provision. No comparable provision. Requires reporting of USDA conference Adopts the Senate provision, with expenditures over $10,000. [Sec. 11081] modification. [Sec. 14208] No comparable provision. No comparable provision. Requires a report on ending childhood Deletes Senate provision. hunger in the U.S. by 2013. [Sec. 11082] No comparable provision. No comparable provision. Facilitates use of emergency funds for Deletes Senate provision. effects of Kansas tornado. [Sec. 11083] No comparable provision. No comparable provision. Requires a report on USDA programs Deletes Senate provision. Managers with poor scores in the Program statement encourages progress reports. Assessment Rating Tool (PART). [Sec. 11084] No comparable provision. Permanent debarment from participation No comparable provision. Adopts House provision with changes. in USDA programs for fraud. [Sec. Debarment may be reduced to 10 years. 11304] Excludes debarment in food assistance programs. [Sec. 14211] No comparable provision. Prohibits discrimination against use of No comparable provision. Deletes the House provision. pesticide in conservation programs. [Sec. 11305] Authorizes the USDA Graduate School Prohibits USDA from operating the No comparable provision. Adopts House provision with changes. as a non-appropriated fund USDA Graduate School after Oct. 1, Provides for the transition of the USDA instrumentality. [7 U.S.C. 2279b] 2008. [Sec. 11309] graduate school to a non-government entity by Oct. 1, 2009. [Sec. 14213] No comparable provision. Requires a study of wastewater No comparable provision. Deletes the House provision. infrastructure near the U.S.-Mexico border. [Sec. 11313] CRS-192 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) TITLE XV: REVENUE & OFFSETTING COST PROVISIONS Supplemental Agriculture Disaster Assistance Congress periodically provides ad-hoc No comparable provision. Authorizes a permanent agricultural Adopts a variation of the Senate emergency disaster payments to crop and disaster trust fund that will fund a series provision. For FY2008-11, five new livestock growers to supplement income of disaster programs that provide disaster programs are authorized and following a natural disaster. Most payments to crop and livestock growers funded through a transfer of 3.08% of recently, Congress provided emergency who experience significant production annual customs receipts. The five new supplemental assistance for 2005, 2006, losses in a USDA-declared disaster area. programs are: 1) Supplemental Revenue or 2007 production losses. [Sec. 9001 of For FY2008-12, the program is funded Assistance Payments (for crops); 2) P.L. 110-28, as amended by P.L. through a transfer of 3.34% of annual Livestock Indemnity Payments; 3) 110-161]. customs receipts from the U.S. Treasury. Livestock Forage Disaster Program; 4) Payments are made under four new Emergency Assistance for Livestock, programs: 1) Supplemental Revenue Honeybees, and Farm-Raised Catfish; Assistance Payments (for crops); 2) and 5) Tree Assistance Program. Livestock Indemnity Payments; 3) [Sec. 15101] Emergency Assistance for Livestock, Honeybees, and Farm-Raised Catfish; and; 4) Tree Assistance Program. [Sec. 12101] Sec. 9012 of the U.S. Troop Readiness, Amends Sec. 9012 by stating that "the No comparable provision. No comparable provision. Veterans' Care, Katrina Recovery, and purchase of a Non-insured Assistance Iraq Accountability Appropriations Act Program (NAP) policy shall not be a of 2007 (P.L. 110-28) required that "in requirement to receive any Federal carrying out crop disaster and livestock livestock disaster assistance." [Sec. assistance in this title, the Secretary shall 11015] require forage producers to have participated in a crop insurance pilot Note: The House farm bill was passed program or the Non-Insured Crop prior to enactment of P.L. 110-80, which Disaster Assistance Program (NAP) removed the crop insurance or NAP during the crop year for which purchase requirement for forage compensation is received." producers. In August 2007, separate legislation was enacted (P.L. 110-80), removing this requirement of forage producers. CRS-193 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Customs User Fees Extension of custom user fees. Sec. No comparable provision. No comparable provision. Amends Section 13031 of the 13031 of the Consolidated Omnibus Consolidated Omnibus Budget Budget Reconciliation Act of 1985 Reconciliation Act of 1985 to extend the ("COBRA") authorizes the Secretary of passenger and conveyance processing the Treasury to collect certain customs fees through September 30, 2017, and services fees. Customs user fees include extend the merchandise processing fees passenger and conveyance processing through November 14, 2017. [Sec. fees and merchandise processing fees. 15201] Congress has authorized collection of the passenger and conveyance processing fees through December 27, 2014. The authorization for the collection of the merchandise processing fees is through December 27, 2014. Other Revenue and Tax-Related Provisions Tax-Treaty Withholding Tax Rates. Provides in IRC Section 894 that if a U.S. No comparable provision. Deletes House provision. The U.S. Internal Revenue Code (IRC) subsidiary makes a deductible payment to applies a 30% withholding tax to interest, a foreign corporation that has a common dividends, and similar "fixed and foreign parent, and the withholding tax determinable" income payments made to rate on the payment would be higher if foreign persons/firms residing outside the the payment were made directly to the U.S. (nonresident aliens). [IRC Sec. 871] common parent, the higher rate will be The tax rate is reciprocally reduced or applied. [Sec. 12001] eliminated in many cases by one of the many bilateral tax treaties the U.S. has signed (acknowledged in IRC Sec. 894). Corporate estimated tax payments. Increases the amount of required Increases the amount of required Increases the amount of required Corporations are required to make corporate estimated tax payments falling corporate estimated tax payments falling corporate estimated tax payments falling quarterly tax payments generally equal to in the last quarter of FY2012 to 115.75% in the last quarter of FY2012 to 121.5% in the last quarter of FY2012 to 122.25% a specified percentage of their estimated of the amount otherwise required (a 1.25 of the otherwise required amount and of the otherwise required amount and tax liability for the year. [IRC Sec. 6655] percentage-point increase over P.L. 110- reduces firms' next required payments by reduces firms' next required payments by In 2005, P.L. 109-222 increased the 28) and reduces firms' next required a corresponding amount. [Sec. 12506] a corresponding amount. [Sec. 15202] amount of estimated tax payments due in payments by a corresponding amount. the last quarter of federal FY2012 to (Note, however, that P.L. 110-142, 106.25% of the amount otherwise due passed after the House approved H.R. and reduced firms' next required 2419, increased the required payments by CRS-194 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) payments by a corresponding amount. 1.50 percentage points, rendering the The provision shifted a portion of House-passed provision inapplicable. payments forward from FY2013 to [Sec. 13003] FY2012. In 2007, P.L. 110-28 increased the amount thus shifted to 114.5% of the amount otherwise required. Increase in information return No comparable provision. Increases penalties for failure to file Deletes Senate provision. penalties. The tax code requires information returns. [Sec. 12508] information returns to be filed that report on a variety of transaction types. [IRC secs. 6721 -- 6723] The returns are one of the tax system's tool for boosting tax compliance and for monitoring tax shelters. There are penalties for failure to file required information returns. Economic substance doctrine. The No comparable provision. "Clarifies" the economic substance Deletes this provision. "economic substance" doctrine is a doctrine by integrating a part of it into judicial doctrine that has developed in the IRC (generally Section 7701, relating regard to tax shelter cases. In general to definitions). In cases where a court terms, it denies the use of tax benefits in determines the economic substance transactions not having an economic doctrine is relevant, applies a two-part substance not related to taxes. ("conjunctive") test to a transaction, requiring that (1) the transaction change the taxpayer's economic position in a meaningful way (an "objective" test); and (2) the taxpayer has a substantial non- federal-tax purpose for engaging in the transaction. [Sec. 12521] No comparable provisions. No comparable provisions. Other miscellaneous provisions: Other miscellaneous provision: -- Denies deduction for certain fines -- Deletes Senate provisions. and penalties. [Sec. 12507] -- Modifies penalties for failure to file partnership returns. [Sec. 12511] -- Denies deduction for interest paid in certain tax-motivated transactions. [Sec. 12523] CRS-195 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Tax-Related Conservation Provisions Conservation Reserve Tax Credit. No comparable provision. Creates a new elective conservation Deletes Senate provision. USDA provides a conservation reserve reserve tax credit that can be claimed in program under which farmers receive place of payments received under the annual federal payments for contracting conservation reserve program. to establish resource-conserving covers [Sec. 12201] on farmland (Title XII of the 1985 farm bill). There is no related tax credit, although taxpayers may deduct charitable donations made for conservation purposes under IRC Sec. 170. Application of Self-Employment No comparable provision. Exempts conservation reserve program Exempts conservation reserve program Contributions Act (SECA) social payments received by persons receiving payments received by persons receiving security tax to conservation reserve social security benefits from SECA tax. social security benefits from SECA tax. payments. In December 2006, the [Sec. 12202] [Sec. 15301] Internal Revenue Service (IRS) issued a notice (Notice 2006-108) proposing to apply SECA tax [IRC Sec. 1401] to conservation reserve program payments. Charitable contributions for No comparable provision. Makes permanent the temporary Two year extension of the temporary conservation purposes. Deductible relaxation of the deduction cap for relaxation of the deduction cap for contributions of capital gain property are contributions of conservation property. contributions of conservation property. limited by IRC Sec. 170 to generally [Sec. 12203] [Sec. 15302] 30% of an individual's income. Rules were temporarily liberalized (through 2007) for contributions of property for conservation purposes; contributions are deductible to the extent they exceed 50% of what is generally an individual's income over other contributions. No comparable provision. No comparable provision. Creates a new tax credit for costs Deletes Senate provision. incurred or the loss in value to property to carry out a habitat management plan. The credit's rate varies with the length of the qualifying plan. [Sec. 12204] CRS-196 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Deductions for endangered species No comparable provision. Permits farmers to treat outlays made Adopts Senate provision, except that recovery expenditures. No provision, pursuant to the Endangered Species Act provision is effective for expenditures but under IRC Sec. 175, farmers are in the same manner as soil or water paid or incurred after December 31, permitted to "expense" (deduct conservation outlays (i.e., the outlays can 2008. [Sec. 15303] immediately) outlays for soil or water be expensed). [Sec. 12205] conservation rather than treating the outlays as capital expenditures -- a treatment that would generally delay the deductions. Tax-exempt bonds for forest No comparable provision. Establishes (in limited amounts) a new Deletes Senate provision. conservation. In general, interest on type of tax-exempt private activity bond bonds issued by state and local for bonds whose proceeds are used to governments is tax-exempt if used for finance forest conservation. [Sec. 12211] governmental purposes (IRC Section 103). However, not all state and local bonds used to finance private activities are tax exempt; private activity bonds are subject to certain restrictions and are subject to caps. [IRC secs. 141-142] Deduction for qualified timber gain No comparable provision. Adds new Section 1203 to the Internal Redesigns Section 1201 of the Internal and timber real estate investment trust Revenue Code, which permits taxpayers Revenue Code, which reduces the rate of (REIT) provisions. For tax years to elect to deduct 60% of timber gain gain on qualified timber gains of beginning before 2011, individuals' long from taxable income. (The remaining corporations to 15%. REIT provisions term capital gain is taxed at reduced rates 40% would be taxed at ordinary-income follow the Senate amendment. (generally, 15%; section 1 of the tax rates.) Also includes several provisions [Sec. 15311-15315] code). Taxpayers are permitted to treat affecting timber REITs, including the cutting of timber as a sale eligible for clarification that timber gain is qualified capital gains treatment. [IRC Sec. 631] real estate income for a REIT. REITs are specially-defined "pass [Sec. 12212-12217] through entities" that are permitted to deduct dividends they distribute from taxable income, thus eliminating corporate-level tax from distributed income. [IRC secs. 856-859] REITs are subject to several minimum-distribution requirements and 75% of REIT gross income must consist of certain types of real estate income. CRS-197 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provisions. No comparable provisions. Other miscellaneous provisions: Deletes Senate provisions. -- Exclusion for programs and payments for fish, wildlife, forest protection, and pest management. [Sec. 12206] -- Elective tax credits for payments under conservation programs [Sec. 12207] Tax-Related Energy Provisions Credit for cellulosic fuel production. No comparable provision. Provides a fourth tax credit under section Provides a fourth tax credit under section IRC Sec. 40 provides an alcohol fuels 3- 40 for small producers who produce 40, the Cellulosic Biofuel Producer part credit consisting of: (1) a 10¢ per alcohol fuel from cellulosic materials Credit. The credit is $1.01 per gallon gallon small-producer tax credit for (e.g., corn stover or switchgrass). The less the amount of small-producer ethanol production; (2) a 60¢ per gallon credit is $1.25 per gallon less the amount ethanol credit claimed and the alcohol tax credit for alcohol used in a mixture of of small-producer ethanol credit claimed mixture credit claimed for ethanol. alcohol and gasoline or other fuels; and and the alcohol mixture credit claimed [Sec. 15321] (3) a 60¢ per gallon credit for production for ethanol. [Sec. 12312] of alcohol that is not used in a mixture. (The latter two credits are 51¢ per gallon in the case of ethanol.) The credit is scheduled to expire at the end of 2010. Alcohol Fuels Credit. For ethanol, the No comparable provision. Reduces the tax credit rate for ethanol Adopts Senate provision with changes to rates for the alcohol mixture credit and credits to 46¢ from 51¢ per gallon. modify the alcohol credit to reduce the ta the alcohol credit are 51¢ per gallon [Sec. 12315] credit rate for ethanol to 45¢ per gallon. rather than the 60¢ per gallon rate that [Sec. 15331] otherwise applies. Small-Producer Ethanol Credit. One No comparable provision. Extends the small producer ethanol credit Deletes Senate provision. component of the 3-part credit is the 10¢ for two years through 2012. [Sec. 12313] per gallon tax credit for small ethanol producers. The credit is scheduled to expire year-end 2010. As described in the preceding entries, No comparable provision. Provides a fourth component of the Deletes Senate provision. IRC Sec. 40 provides a three-part tax alcohol fuels credit consisting of a 10¢ credit for alcohol fuels. There is no per gallon credit for fossil-free alcohol comparable provision for a small fuels. The credit terminates at the end of producer credit for fossil-free alcohol. 2012. [Sec. 12314] CRS-198 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) Alternative Fuels Excise Tax Credits. No comparable provision. Extends the two alternative fuels credits Deletes Senate provision. Provides two alternative fuels tax credits through December 2010 for all fuels that can be claimed against federal excise other than hydrogen. [Sec. 12331] taxes: the alternative fuels tax credit and the alternative fuel mixture credit. [IRC secs. 6426-6427] The credits generally expire at the end of September 2009, but the credit for hydrogen expires at the end of September 2014. Tax Credits for Biodiesel Fuels. No comparable provision. Generally extends the biodiesel fuel Deletes Senate provision. IRC Sec. 40A provides income tax credits and payment provisions for two credits for biodiesel (scheduled to expire years (through 2010). The small at the end of 2008): (1) biodiesel mixture producer agri-biodiesel credit is extended credit; (2) biodiesel credit; and (3) the through 2012. [Sec. 12321] small producer agri-biodiesel credit. Other IRC provisions include an excise tax credit for biodiesel fuel mixtures and payments for biodiesel fuel mixtures. Renewable diesel fuel incentives. No comparable provision. Extends the renewable diesel fuel Deletes Senate provision. Provides a tax incentive of $1.00 per incentives for two years, through 2010. gallon for qualified renewable diesel fuel. It also places a cap on the credit that can It can be claimed as an excise tax credit be claimed for co-produced fuel. [IRC secs. 6426-6427], an income tax [Sec. 12321] credit [IRC Sec. 40A], or a government payment. It is scheduled to expire at the end of 2008. No comparable provisions. No comparable provisions. Other miscellaneous provisions: Other miscellaneous provisions: -- Wind credit [Sec. 12301] -- Adopts Senate provision modifying -- Landowner incentive for electric the calculation of fuel credits. [Sec. transmission. [Sec. 12302] 15332] -- Modified treatment of energy -- Adopts Senate provision extending grants/loans. [Sec. 12303] the temporary duty on ethyl -- Expansion of depreciation for alcohol. [Sec. 15333] biofuel plants. [Sec. 12311] -- Adopts Senate provision with -- Modified calculation of fuel changes to limit the drawback of credits. [Sec. 12316] duty on imported ethanol. [Sec. -- Extension of temporary duty on 15334] ethyl alcohol. [Sec. 12317] -- Deletes other Senate provisions. CRS-199 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) -- Limits on drawback of duty on imported ethanol. [Sec. 12318] -- Treatment of qualified fuel mixtures. [Sec. 12322] -- Extension of credit for installing alternative fuel refueling property. [Sec. 12332] Agricultural Tax Provisions Limitation on farm losses. No No comparable provision. Modifies IRC Section 461 to limit Adopts Senate provision with changes. comparable provision, although the tax deductible farm losses for the year in Modifies IRS Section 461 to limit, for code's passive activity rules [IRC Sec. which losses are incurred to $200,000 in taxpayer other than C Corporations, 469] may limit farm losses where the cases where the taxpayer receives deductible farm losses for the year in taxpayer does not materially participate Agriculture Program Payments or CCC which losses are incurred to the greater of in the farm business. Section 461 loans. [Sec. 12501] $300,000 ($150,000 for taxpayers contains special rules governing when electing married filing separate status) or deductions can be claimed. the taxpayer's total net farm income over the preceding 5 years in cases where the taxpayer receives Agriculture Program Payments or CCC loans. [Sec. 15351] Optional methods for self-employment No comparable provisions. For the self-employment tax, modifies Adopts Senate provision increasing and tax. When farmers have low net income or the farm optional method so that electing indexing dollar threshold for computing losses from farming, they may use one of taxpayers may be eligible to secure four net earnings from self-employment under two optional methods for calculating net credits of Social Security benefit the optional methods. [Sec. 15352] earnings from self-employment. This can coverage each taxable year by increasing help them earn the quarters of coverage and indexing the thresholds. The necessary to qualify for Social Security provision makes a similar modification to benefits. Over time, the number of the nonfarm optional method. [Sec. quarters of coverage earned under the 12502] optional method has been reduced by inflation. The optional methods are: (1) the farm optional method; and (2) the nonfarm optional method. [IRC Sec. 1402(a)] Limitation on tax deferral for like-kind No comparable provision. Denies non-recognition treatment for Deletes Senate provision. exchanges. No gain or loss is recognized like-kind exchanges that include if property used in a trade or business is unimproved real estate in cases where the exchanged for property of a like kind owner receives Agriculture Program CRS-200 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) used in a trade or business. [IRC Section Payments or CCC loans. [Sec. 12504] 1031]. Installment Sale Rules for Farm No comparable provision. Repeals the immediate recognition of Deletes Senate provision. Property. Taxpayers in some cases are recapture income for sales of single- permitted to recognize income from purpose agricultural or horticultural installment sales gradually, as income is structures (i.e., barns and similar farm actually received. [IRC Sec. 453] buildings). [Sec. 12402] Separately, taxpayers who recognize gain from the sale of depreciable assets are required to "recapture" a portion of the gain in accordance with depreciation deductions that have been claimed on the asset; recaptured gain is taxed at ordinary income tax rates rather than capital gains rates. [IRC secs. 1245 and 1250] Income that is treated as ordinary income under the recapture rules is taxed in the year of the property's disposition rather than in installments. Tax-credit bonds for investment in No comparable provision. Creates a new type of tax credit bond Deletes Senate provision. qualified rural infrastructure projects. (rural renaissance bonds) under new In general, interest on bonds issued by Section 54A of the tax code for state/local governments is tax-exempt if investment in certain rural projects, used for governmental purposes. [IRC generally including utilities programs, Sec. 103] Not all state and local bonds distance learning or telemedicine used to finance private activities are tax projects, electric programs, rural exempt; private activity bonds are subject telephone programs, broadband access to certain restrictions and are subject to programs, and rural community facility caps. An additional type of tax-favored programs. The amount of such bonds bond are "tax credit" bonds, for which that can be issued is limited to $400 the purchaser can claim a tax credit rather million. [Sec. 12404] than receive a tax exemption. Several different types of tax credit bonds have been created in recent decades, including qualified zone academy bonds [IRC Sec. 1397E], clean renewable energy bonds [IRC Sec. 54], and gulf tax credit bonds [IRC Sec. 1400N]. CRS-201 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) No comparable provision. No comparable provision. Creates a new tax credit under new IRC Deletes Senate provision. Section 45P equal to 50% of a taxpayer's expenditures on the testing of new drugs for "minor" species (e.g., sheep and goats, but not cattle and poultry). [Sec. 12406] Reduced depreciation recovery period No comparable provision. Shortens the recovery period for farm Deletes Senate provision. for certain farm machinery/equip- machinery and equipment to 5 years from ment. Federal tax rules (generally IRC 10 years. The shortened recovery period Sec. 167 and related regulations) specify applies only to assets placed in service the rules regarding income tax deductions before 2010. [Sec. 12407] for depreciation of tangible capital assets, including recovery periods (years over which deductions must be spread) and recovery methods (portion of an assets cost that can be deducted in each year). Rules generally assign a recovery period of 10 years to farm machinery. Reduced depreciation recovery period No comparable provisions. Shortens the recovery period for seven- Adopts Senate provision, except that the for all race horses. Generally assigns a year race horses to three-years. [Sec. provision applies to any race horse that is recovery period of three-years to any race 12509(a)] two years old or younger at the time it is horse that is more than two years old at placed in service after December 31, the time it is placed in service and a 2008 and before January 1, 2014. seven-year recovery period is assigned to [Sec. 15344] any race horse that is two years old or younger at the time it is placed in service. [IRC Sec. 168] "Aggie" bonds. Qualified small issue No comparable provisions. Increase loan limit for aggie bonds from Adopts Senate provision to increase loan bonds up to $250,000, known as "aggie $250,000 to $450,000 and adjust the limit limit for aggie bonds. [Sec. 15341] bonds," are tax-exempt bonds issued by for inflation after 2008. [Sec. 12401] State and local governments to finance private business manufacturing facilities or the acquisition of land and equipment by certain first-time farmers. [IRC Sec. 144] No comparable provision. No comparable provisions. Other miscellaneous provisions: Other miscellaneous provisions: -- Allow IRC Sec. 1031 like-kind -- Adopts Senate provision on the exchange treatment involving like-kind exchange treatment CRS-202 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) mutual ditch, reservoir, or involving mutual ditch, reservoir, irrigation stock. [Sec. 12403] or irrigation stock. [Sec. 15342] -- Create an agricultural chemicals -- Adopts Senate provision creating security tax credit. A 30% tax the agriculture business security tax credit, subject to limits, for credit. [Sec. 15343] qualified chemical security -- Deletes other Senate provisions. expenses. [Sec. 12405] -- Expensing of broadband internet access. [Sec. 12408] -- Tax credit for energy-efficient motors. [Sec. 12409] Other Provisions Key provisions covering income tax No comparable provision. Provides several tax relief measures for Adopts Senate provision. [Sec. 15345] relief in times of disaster: casualty loss areas in Kansas affected by the tornados deductions [IRC Sec. 165]; deferral of of May 2007. Among the proposals are gain from involuntary conversions [IRC suspension of limits on certain casualty Sec. 1231]; delayed filing deadlines; losses and relaxation of time abatement of fines/fees (P.L. 109-73); requirements in the case of involuntary and tax exemption for certain disaster conversions. [Sec. 12701] relief payments. [IRC Sec. 139] No comparable provisions. No comparable provisions. Other miscellaneous provisions: Adopts some provisions and deletes -- Income treatment of Exxon Valdez others: litigation. [Sec. 12801] -- Adopts Senate provision, with -- Extension of special rule for modifications to the tax treatment charitable contributions of food for forestry con-servation bonds. inventory. [Sec. 12802] [Sec. 15316] -- Increase exclusion amount for -- Adopts Senate provision modifying mileage reimbursements to the awards authority for advanced volunteers. [Sec. 12803] coal-based electricity credits and -- Technical correction for treatment gasification credits. [Sec. 15346] of stock basis in S corporations -- Deletes other Senate provisions. making charitable contributions. [Sec. 12804] -- Payment test for pro-sports facility bonds. [Sec. 12805] -- Rehabilitation credit and depreciation schedules to low- income housing for the elderly. CRS-203 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) [Sec. 12806] -- Modifies awards authority for advanced coal-based electricity credits and gasification credits. [Sec. 12807] -- Tax treatment for forestry con- servation bonds. [Sec. 12808] Address deficiencies in the Haitian No comparable provisions. No comparable provisions. Establishes the Haitian Hemispheric Hemispheric Opportunity through Opportunity through Partnership Partnership Encouragement Act of 2006 Encouragement Act of 2008 (Hope II) to (HOPE I). help Haitian industry attract new investment and create immediate jobs, generate income for workers to cover increased food costs and pay for other necessities, and continue to provide incentives to encourage the use of inputs manufactured by U.S. companies. [Sec. 15401-15407 and 15410-15411] Extend The Caribbean Basin Economic No comparable provisions. No comparable provisions. Extends The Caribbean Basin Economic Recovery Act, as amended by the United Recovery Act, as amended by the United States-Caribbean Basin Trade Partnership States-Caribbean Basin Trade Partnership Act (CBTPA). Act (CBTPA) through September 30, 2010. [Sec. 15408-15409] Define "commercially interchange- No comparable provisions. No comparable provisions. The conference agreement amends Sec. able" in Section 313(j)(2) of the Tariff 313(j)(2) of the Tariff Act of 1930, to Act of 1930. Sec. 313(j) of the Tariff provide a standard for what is considered Act of 1930 provides for unused to be "commercially interchangeable" for merchandise drawback. Unused purposes of unused merchandise drawback is permitted if imported drawback for wine. [Sec. 15421] merchandise is exported or destroyed within 3 years of import without being used in the United States. Pursuant to Sec. 313(j)(2) of the Tariff Act of 1930, domestic or imported merchandise that is commercially interchangeable with the imported merchandise may be substituted for the imported merchandise and drawback granted on the export or CRS-204 SENATE-PASSED SUBSTITUTE ENACTED 2008 FARM BILL PRIOR LAW/POLICY HOUSE-PASSED BILL (H.R. 2419) AMENDMENT (H.R. 2419) (P.L. 110-246) destruction of the substituted merchandise within the 3-year period beginning on the date of importation. `'Commercially interchangeable", however, is not defined. CRS-205 Appendix: 2007-2008 Farm Bill Debate Timeline May 2005 -- One of the first comprehensive sets of recommendations for the next farm bill is released by a major agricultural trade association, followed by proposal by other major interest groups and organizations (both traditional farm and nonfarm groups). July 7, 2005 -- U.S. Department of Agriculture (USDA) begins its series of 52 farm bill forums starting in Nashville, TN, and covering nearly all states (excl. Louisiana and Mississippi due to Hurricane Katrina.). February 6, 2006 -- House Committee on Agriculture begins farm bill listening field hearings in Fayetteville, NC, and other hearings to review federal farm policy. June 23, 2006 -- Senate Agriculture, Nutrition, and Forestry Committee begins regional farm bill hearings in Albany, GA, and other hearings to review federal farm policy. January 2007 -- House and Senate Agriculture Committees begin hearings on selected farm bill topics. January 31, 2007 -- USDA releases its farm bill recommendations, covering each title of the current law. February 2007 -- One of the first comprehensive bills recommending broad changes to current law is introduced in the Senate, followed by other broad-based bill introduced by others in the House and Senate. March 21, 2007 -- Congressional Budget Office (CBO) releases its multi-year March baseline estimate of spending, providing the starting point for the budget allocation for the new farm bill. March 21, 2007 -- House Committee on Agriculture begins subcommittee markup on individual titles of the farm bill, proceeding through June 19, 2007. May 17, 2007 -- Congress approves the FY2008 budget resolution, adopting the baseline budget as the fiscal parameters and including a $20 billion reserve for the new farm bill. July 17, 2007 -- House Committee on Agriculture begins full committee markup on individual titles of the farm bill (H.R. 2419), proceeding through July 19, 2007. July 26-27, 2007 -- Floor debate and passage of H.R. 2419 in the House. October 4, 2007 -- Senate Finance Committee approves a bill (S. 2242) that would create new tax credits and a disaster trust fund for farmers, as part of the 2002 farm bill reauthorization. October 24, 2007 -- Senate Agriculture Committee begins full committee markup on individual titles of the farm bill (S. 2302), proceeding through October 25, 2007. November 5, 2007 -- Senate floor debate begins, with the Senate Agriculture Committee Chairman offering an amended Senate bill as a substitute (S.Amdt. 3500) to H.R. 2419. The bill includes provisions in S. 2242. CRS-206 November 16, 2007 -- Further action in the Senate is delayed when a key vote in the Senate fails to invoke cloture on the Senate version of the farm bill. December 14, 2007 -- Floor debate and passage of the Senate version of the farm bill, which was offered as a substitute to H.R. 2419. December 26, 2007 -- The Consolidated Appropriations Act for FY2008 (P.L. 110-161) is signed into law and extends certain expiring provisions of the 2002 farm bill until March 15, 2008. February 4, 2008 -- Senate appoints conferees. March 12, 2008 -- Congress approves a one-month extension (P.L. 110-196) that extends current law through April 18, 2008. April 9, 2008 -- House appoints conferees. April 17, 2008 -- Congress approves a one-week extension (P.L. 110-200) that extends current law through April 25, 2008. April 24, 2008 -- Congress approves a one-week extension (P.L. 110-205) that extends current law through May 2, 2008. May 1, 2008 -- Congress approves a two-week extension (P.L. 110-208) that extends current law through May 16, 2008. May 8, 2008 -- House and Senate farm bill conferees announce details of the completed farm bill conference agreement. The Administration announces its intention to veto the legislation in its present form. May 14, 2008 -- The House passes the conference agreement (H.R. 2419, the Food, Conservation, and Energy Act of 2008) by a vote of 318-106. Both the House and Senate pass, by voice vote, a one-week extension (P.L. 110-208) to extend current law through May 23, 2008, or until the 2008 farm bill, H.R. 2419, is enacted. May 15, 2008 -- The Senate passes the conference agreement by a vote of 81-15. May 21, 2008 -- The Bush Administration vetoes the legislation. May 21, 2008 -- The House votes to override the veto of H.R. 2419 by a vote of 316-108. However, it is discovered that an enrolling error resulted in one title of the bill (Title III, Trade) being omitted from the vetoed version that was sent to the White House. May 22, 2008 -- The Senate votes to override the veto of H.R. 2419 by a vote of 82-13. The conference bill became law on May 22, 2008 (P.L. 110-234), but does not contain one of the 15 titles, Title III (Trade). The House passes H.R. 6124, a new bill containing 15 farm bill titles. June 5, 2008 -- The Senate passes H.R. 6124 with all original 15 farm bill titles. June 18, 2008 -- The President vetoes H.R. 6124. Both the House (80-14) and the Senate (317-109) vote to override the veto and the bill becomes law (P.L. 110-246). ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34696