Brian Baenig
February 15, 2002

On February 13, 2002, the Senate passed S. 1731, the Agriculture, Conservation, and Rural Enhancement Act of 2001 ("the Farm Bill") by a vote of 58-40. Passage of the Farm Bill is crucial for the livelihoods and well-being of farmers, ranchers, and good for all of rural communities and all Americans. This bill provides income certainty for producers, an increased commitment to conservation, expanded nutrition assistance, provisions making farmers and ranchers more competitive, and needed help for rural development. The Farm Bill needs to be signed into law so America’s farmers and ranchers can plan for the 2002 crop. With further delay, farm families will have to rely on a law so flawed that is has necessitated a grant of emergency assistance each of the last four years, totaling more than $30 billion.

The Republican Budget Resolution for Fiscal Year 2001 provides $40.25 billion in added funds the first five years (or $73.5 billion over ten years). Yet, the House Farm Bill shortchanges farmers and ranchers and rural communities by providing only $35.8 billion in added funds in five years.

Effective safety net. Farmers have already seen prices drop dramatically since the current farm bill was approved. The Senate bill provides enhanced counter-cyclical income protection which will provide more help in bad years and less help in good years when farmers do not need it. The U.S. Department of Agriculture warns that farm income will drop another 20 percent this year unless Congress acts. This is on top of the fact that net farm income has already dropped by 25 percent since 1996.

The Senate bill provides a higher effective safety net than current law and higher levels than the House bill.

Conservation. The Senate bill will double the commitment to conservation. The Senate bill would provide $11.8 billion in new funding in five years versus the House bill which would provide only $6.8 billion. The Senate bill would make conservation a centerpiece of farm policy. This is the most money for conservation in Farm Bill history. The Senate bill would provide support for removing sensitive land from agricultural production and incentives for continuing and adopting new conservation practices on working lands.

Energy. Over five years, the Senate bill provides $570 million compared to the House bill which provides no funds. The Senate bill promotes renewable energy on the farm, expands markets for farm-based renewable energy, and enhances rural economic development.

Rural community economic revitalization. Over five years, the Senate bill provides $1.7 billion to increase incomes, boost economic growth and create jobs. The House bill provides $1.2 billion. Rural America needs help now. Agriculture and the farm economy provide more than $1.3 trillion to our economy, and account for 24 million jobs. Rural America comprises 80 percent of our nation’s land mass and 20 percent of our population. Our nation literally cannot afford to leave rural America behind, and yet rural America is hurting like never before -- in large part due to the failure of our current farm policy. Economic revitalization is a key component to a vibrant rural America. The Senate bill would provide rural communities with the equity capital, rural water and wastewater infrastructure, and technological tools, such as broadband access, to promote genuine rural revitalization.

Nutrition. The Senate bill (over ten years) would provide $8.9 billion versus the House bill which would provide $3.6 billion. The Senate and House bills provide funding to extend transitional food stamps for families moving from welfare to work but only the Senate bill makes up for the loss of TANF cash income in that transitional benefit. Both bills modestly increase benefits for families of increasing size but only the Senate bill adjusts this amount for inflation. The Senate bill also eases time-limits for able-bodied adults without dependents and restores Food Stamp Program benefits for all legal immigrants who have lived in the U.S. for at least five years.