farm bill

The “who” part of the Farm Bill is pretty clear.

With trillions dollars of government spending up for grabs, lobbyists from all ends of the spectrum – representing environmental interests, biotech companies, food companies, farmers – flocked to Capitol Hill to find their piece of the Farm Bill pie.

When U.S. Sen. Debbie Stabenow announced passage of the Farm Bill in February, she echoed a refrain from a car commercial.

“This is not your father’s Farm Bill,” she said.

While Stabenow, the Michigan Democrat who leads the Senate Agriculture Committee, was referring to what proponents heralded as “reform” of some programs, her remarks were accurate on another score. The massive Farm Bill, which will spend $956 billion and set U.S. food policy for the next decade, is no longer the purview solely of agricultural interests.

Both farmers and food stamps advocates sighed in relief Friday when President Obama signed the  long-overdue Agriculture Act of 2014 – the $956-billion farm bill – into law on Friday during a visit to Michigan State University.  The farm bill process was fraught with ups and downs and the loose coalition tying nutrition and farm programs seemed barely able to survive.

Not everyone likes the farm bill signed into law on Friday, but at least farmers will be able to start making informed decisions.

The biggest change in the 2014 farm bill is that the subsidies known as direct payments are gone. Instead of the government paying a known amount to farmers each year—at a fixed budget of $5 billion—the new system of subsidies will fluctuate, partly with market forces. That makes it really hard to predict how much the program will cost each year, says Iowa State University ag economist Chad Hart.

If it seems like Congress just can’t get the farm bill done, well… that’s because it can’t.

All year long, Washington lawmakers have been saying they want to pass a full five-year farm bill. But even though leaders of the House-Senate conference committee say they are close, they have acknowledged it just won’t get done this year. They’re pushing it off until January.

If it seems like Congress just can’t get the farm bill done, well… that’s because it can’t. The massive food and agriculture package used to be relatively easy thanks to bipartisan and urban-rural alliances. But this year, progress was a slow slog. A nine-month extension passed in January bought some time. This summer, the Senate passed its bill, but the House didn’t. Then it sent two bills to the conference committee, one for agriculture and the other for food stamps. Just before Thanksgiving, Iowa Republican Steve King, a conference committee member, remained optimistic.

On a clear fall day in central Iowa, Aaron Lehman climbed into the cab of his green combine with a screwdriver to do some maintenance. He was hoping his corn had a couple more weeks to grow before harvesting because the price per bushel this fall is much lower than it has been for the past three years.

Corn farmers have been riding high prices for the last few years. But an expected bumper crop has prices falling this harvest season, and many economists expect the price of corn to drop to its lowest level in recent years.

Congress is bitterly divided on food stamps and other issues contained in the farm bill, but both political parties agree on something: the $5 billion-a-year farm subsidy called Direct and Countercyclical Payments has got to go.

The farm bill is, once again, entering a critical stretch. As was the case last year, the current law expires at the end of September. There’s no election to dissuade elected officials from tackling the major piece of agriculture and nutrition policy—but Congress does have a pretty full plate, with the crisis in Syria, immigration reform and a measure to continue funding federal government programs all set to come to a head.

Farmer Doug Wilson has been buying crop insurance since 1980. 

“You carry home insurance, hoping your house doesn’t burn down. We carry crop insurance, hoping our crops don’t burn down,” Wilson said on a sweltering day in mid-August as he walked among the healthy 8-foot corn stalks in one his fields in central Illinois. “But last year, they burned down — kind of literally.”

Sugar beet growing and refining was once a major industry in western Kansas and remains so in northeastern Colorado, southeastern Wyoming and western Nebraska.  But it’s an industry that’s been supported by government subsidies of one sort or another dating back to 1789.  This pits sugar users against sugar producers over whether preserving a U.S. industry and domestic jobs is worth paying twice the international market price for sugar.  Harvest Public Media has an update on the ongoing debate. 

    Farmers work at the mercy of three big forces that are largely outside their control: the weather, the markets and the government.

In many parts of the country the first two are doing pretty well these days, but government remains the wild card. Congress can’t seem to pass the farm bill, a huge package of legislation setting food policy for years to come.

The U.S. Department of Agriculture first began designating funds for rural development in 1933 as part of the New Deal. More federal funds were allocated in the Agricultural Act of 1970. During this fiscal year, the rural development program is administering approximately $38 billion in loans, loan guarantees and grants. It’s being used to construct or improve 48 rural libraries, assist 243 projects in the delivery of healthcare and help more than 270,000 low income families get affordable housing, according to the USDA.