Farm Bill Digest #10, Posted November 20, 2007

The Farm Bill Digest tracks developments around the National Campaign's Farm Bill Priorities. You can read the full set of our priorities through this link.

Recent Farm Bill alerts are posted here.

In this issue of the Digest:

Farm Bill Stalls in the Senate

The Farm Bill stalled in the Senate last week after bogging down in the same partisan logjam as children's health insurance, the energy bill, appropriations and other important legislation

Floor Amendments Address Payment Limits, Captive Supplies, Biofuels Incentives and much more.

Almost 300 floor amendments to the Senate Farm Bill, some more and some less germane, were filed by the Thursday deadline last week.

FARM BILL DIGEST #10

Farm Bill Stalls in the Senate

The Farm Bill stalled in the Senate last week after bogging down in the same partisan logjam as children's health insurance, the energy bill, appropriations and other important legislation. A vote forced by the Democratic leadership on Friday to limit Farm Bill debate to 30 hours and to limit amendments to those which are germane to the Farm Bill failed to garner the 60 yes votes needed. The mostly party line vote was 55 to 42. Voting with the Democrats were Republican Senators Grassley (IA), Coleman (MN), Thune (SD) and Smith (OR).

Senator Harkin indicated they would again try to come to agreement over a floor process and to move the Farm Bill forward when Congress returns from their Thanksgiving recess the week of December 3rd. With just three working weeks left to Congress in 2007, however, we're unlikely to see a new Farm Bill this year. January will usher in a New Year and the start of the "2008 Farm Bill debate".

Floor Amendments Address Payment Limits, Captive Supplies, Biofuels Incentives and much more

Almost 300 floor amendments to the Senate Farm Bill, some more and some less germane, were filed by the Thursday deadline last week. The list includes everything from repeal of the estate and gift tax to the redeployment of troops from Iraq. The Democrats want to limit the number of amendments while the Republicans are insisting on a wide open floor amendment process. There is no agreement on a finite list of amendments that will be brought to the floor. Some of the amendments filed last week are just placeholders for substitute and more mischievous amendments to be offered later. There are, however, a number of amendments in the pile worth noting:

Biofuels Done Right

Senator Wyden (D-OR) introduced an amendment that would restore sustainability criteria and purposes to the Bioenergy Crop Transition Assistance Program. BCTA will make incentive and cost share payments to producers of perennial bioenergy crops who meet certain stewardship thresholds. Priority is given to projects that provide the highest estimated benefits to wildlife, air, soil and water quality; include the participation of beginning farmers and ranchers or socially disadvantaged farmers and ranchers; and include local ownership of the biomass conversion facility.

Livestock Title Amendments

Senator Enzi (R-WY) introduced an amendment (Captive Supply Reform Act) that will require all forward contracts for the sale of livestock to have a fixed base price. Packers have used un-priced forward contracts to manipulate cash market prices.

Senator Tester (D-MT) is sponsoring an amendment to clarify that contrary to several court decisions, the Packers and Stockyards Act does not excuse market manipulation where the packer has a "legitimate business justification."

Senator Harkin is sponsoring another amendment to provide clarification for the courts. It will ensure that the Packers and Stockyards Act is not interpreted as requiring that producers show not only individual harm from anti-competitive practices but also competitive harm to the entire industry.

Wednesday November 28th is a national call in day to Senate Majority Leader Reid (D-NV) for livestock market reform. Callers will be urging Senator Reid to include the Enzi, Tester and Harkin amendments in the final list of amendments to be brought to the Senate floor.

Several amendments offered by Senator Roberts (R-KS) would strike important gains achieved in the Senate Agriculture Committee. Roberts offered one amendment to strike a provision agreed to by the Senate Agriculture Committee that would prohibit any pricing preference based on volume of business unless they reflect actual and verifiably lower costs. Roberts also targeted for elimination a provision making it unlawful for companies not to bargain in good faith with farmers who form or join producer associations. Roberts may also bring amendments to strike the packer ban on owning and feeding livestock and the voluntary arbitration provision.

Conservation Amendments

Senator Roberts also filed an amendment that the National Campaign will oppose that would strip almost $1 billion from the Conservation Stewardship Program and reinvest the savings in the Environmental Quality Incentives Program, the Federal Farm and Ranchland Protection Program and the Grasslands Reserve Program.

Senator Feingold (D-WI) has filed an amendment that the National Campaign supports that will cap EQIP cost share payments at 25% once a recipient has received more than $240,000 under the program in any six year period.

More Payment Limits, AGI Limits and other Reforms

The Dorgan-Grassley payment limitation amendment placing a hard cap of $250,000 on commodity program payments was filed and expected to be one of the first amendments to be offered on the Senate floor.

Senators Feingold and Menendez (D-NJ) have filed an amendment that would reduce direct payments. After the first $10,000, direct payments would be reduced by 35%. Savings would be used to provide block grants to the states for conservation, nutrition, rural development, organic agriculture and renewable energy spending. Savings would also be used to fund programs on a national basis including a mandatory $40 million for the Value Added Producer Grant Program and a mandatory $10 million for outreach and assistance to socially disadvantaged farmers and ranchers and other programs.

Senator Kolbuchar (D-MN) has filed an amendment to deny commodity program payments to individuals with an average annual adjusted gross income in excess of $250,000 unless two-thirds of their income is from farming. Recipients who meet the two-thirds threshold must have less than $750,000 in average annual adjusted gross income to remain eligible for commodity program payments. Savings are applied to the Grassland Reserve Program, Rural Broadband, the Bioenergy Crop Transition Assistance program, beginning farmer programs, Community Food Projects and organic research.

Senators Lugar (R-IN) and Lautenberg (D-NJ) filed a comprehensive amendment that would entirely replace commodity programs with a program of revenue insurance and risk management savings accounts.

Cloned Meat and Milk Products

The federal Food and Drug Administration is expected to decide soon on whether to allow food from cloned animals to enter the food supply. A preliminary risk assessment issued by FDA late in 2006 signaled their intent to approve the sale of un-labeled, cloned foods despite human health, animal welfare and ethical concerns.

Senators Mikulski (D-MD) and Specter (R-PA) filed an amendment directing USDA to conduct a series of studies on issues not addressed in the preliminary FDA risk assessment. The amendment directs the Secretary to conduct a study on the economic and trade impacts on U.S. meat and milk exports; USDA's capacity to monitor the introduction of cloned products; the potential public health effects attributable to the consumption of milk from cloned animals; and a study to be conducted with the National Academy of Sciences regarding the safety of cloned food. The amendment also extends the current voluntary moratorium on the introduction of cloned food until the studies called for are completed.

Senator Mikulski filed a separate amendment (SA 3525) requiring that products from cloned animals or their progeny be clearly labeled as such.

Have a Happy Thanksgiving!

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