National Campaign for Sustainable Agriculture

Two House Agriculture Subcommittees completed their mark up of the Chairman's farm bill proposal last week. Important amendments were offered to the Conservation, Credit, Livestock, and Energy Titles.

Coming Soon to House Agriculture Subcommittee Markup

Rural development, organic agriculture and nutrition programs will all go to markup in June.

FARM BILL DIGEST #2

Introducing the Comprehensive Stewardship Incentives Program

Senate Agriculture Committee Chair Tom Harkin, announced last week that his Senate Farm Bill Marker will include a major overhaul and infusion of funding for conservation programs. Under the proposal the Conservation Security Program, the Environmental Quality Incentives Program and the Wildlife Habitat Incentives program will all be combined under a Working Lands Stewardship Program providing a streamlined approach with a common application and continuous sign up. The proposal would double the size of the CSP, enrolling 15.5 million acres each year. It will also reduce the current $450,000 payment limitation under the EQIP program. Harkin will propose that $6 billion from the reserve fund be committed to Conservation Title programs with one-half of that going to the new CSIP.

Harkin's proposal will also include a streamlined easement program combining the Farm and Ranchland Protection Program and the Grassland Reserve program.

House Agriculture Subcommittee Markup

Two House Agriculture Subcommittees completed their mark up of the Chairman's farm bill proposal last week. The Subcommittee on Conservation, Credit, Energy and Research and the Subcommittee on Livestock, Dairy and Poultry made short work of marking up the titles under their jurisdictions. With uncertainty about the availability and allocation of the $20 billion reserve fund provided in the 2008 Budget Resolution most subcommittee member amendments seeking additional funding for their favorite programs were put off for consideration by the full House Agriculture Committee. The exercise at least provided a preview of things to come in full committee. Here are some highlights:

Conservation Title

Chairman Peterson's farm bill proposal cut funding and essentially mothballed the Conservation Security Program for the life of the 2007 Farm Bill. Rep. Kirsten Gillibrand (D-NY) offered then withdrew an amendment to restore the program. The amendment will be brought up again when the full House Agriculture committee does its mark up in late June or early July. By week's end Chairman Peterson was in full retreat on the CSP saying that he would move to restore some of the cuts made to the CSP.

Reps. Timothy Walz (D-MN) and Stephanie Herseth Sandlin (D-SD) each signaled that they would offer a "sodsaver" amendment in full committee. A sodsaver provision would deny federal farm program benefits to producers who convert native prairie to cropland. Current law denies benefits to producers who "sodbust" on highly erodible soils without an approved NRCS conservation plan. Sodsaver would extend and enhance this protection for native prairie a reform considered essential to protect the prairie pothole region of Montana, North Dakota and South Dakota from further loss of native grassland.

Rep. Herseth proposed an amendment that would reserve 10% of conservation funds for beginning and socially disadvantaged farmers and ranchers for the first 90 days of funding availability. This amendment was also withdrawn for later consideration by the full committee.

Credit Title

The Chairman's proposal which was reported out of the subcommittee virtually unchanged provides a loan priority for FSA direct and guaranteed Soil and Water Conservation Loans for beginning farmers and ranchers, socially disadvantaged farmers and ranchers, producers who are converting to sustainable or organic production systems and producers building structures required by their NRCS conservation plans.

The Chairman's mark also establishes a new conservation loan program that will provide guaranteed loans of up to $100,000 and interest subsidies to producers who build conservation structures, establish forest cover, water conservation measures, waste storage facilities and for other conservation purposes.

Loan limits for both operating and ownership loans were increased from $200,000 to $300,000 and a preference in the sale of land in FSA inventory for socially disadvantaged farmers and ranchers was added.

Expect amendments to the Down Payment Loan Program and the Land Contract Guarantee Program from Rep. Walz (D-MN) in full committee.

Energy Title

The Chairman's mark includes a huge increase in funding for the Section 9006 Renewable Energy Systems and Energy Efficiency Improvements program and an amendment by Rep. Herseth would allow the program to fund projects that produce and sell electricity produced by renewable energy systems.

Chairman Peterson is also expected to unveil a major proposal for a Biomass Energy Transition Reserve program that would provide producer incentives for the production of biomass feedstocks.

The subcommittee accepted an amendment proposed by Rep. Steve Kagen (D-WI) to establish an Energy Independent Farm Pilot program that would make grants to farmers to determine the feasibility of making their farms energy independent.

Livestock Title

Chairman Peterson's mark didn't contain any elements of the Competition Title. Subcommittee chair Leonard Boswell (D-IA), however, offered a number of amendments to restore fair and competitive markets for livestock producers including a provision requiring 90 day notice of contract termination and improvements to USDA price reporting program. While these two amendments were deferred to full committee consideration an amendment requiring that both parties consent to arbitration in writing after a dispute arises was adopted by the subcommittee.

Rep. Kagan (D-WI) introduced an amendment to allow the interstate sale of state inspected meat when the inspection standards are equivalent or higher than federal inspection standards. Some 27 state inspection programs have been audited by USDA and certified as equivalent to federal standards. While there was a great deal of support among subcommittee members for the amendment it was deferred for consideration by the full committee.

The Chairman's mark also includes a provision that preempts state or local government efforts to prohibit the use of any article that USDA has inspected and passed or determined to be of "non-regulated status". The provision would override state and local laws prohibiting the planting of GE crops, for example.

Coming Soon to House Agriculture Subcommittee Mark-up

In the Chairman's Rural Development Title, we're hoping to see increased funding for the Value Added Producer Grant Program and a major program to support Rural Entrepreneurs and Micro-enterprise Programs. Organic agriculture, Nutrition programs including Community Food Projects and Farmer's Market Promotion are also on deck when lawmakers return from the recess on June 1st.