Posted by: Phillip Fraas
July 16, 2007
Topic: REPORTS ON FARM BILL STATUS--Second Half of 2007

Since at least early June, the Senate and House Committees on Agriculture have been hard at work trying to develop a farm bill that (1) meets perceived needs, based on the record created by many hours of verbal testimony and reams of written testimony, and on the advice received in numerous meetings with lobbyists; (2) is adqauately funded; and (3) will get the votes needed for passage. Not an easy job, and the committees are still far from completing their work. While they wrestle with their task, a few observations might be in order.

--The farther along the committees get in the process, it becomes increasingly clear that finding new money to fund new priorities (such as bioenergy development, increased funding for conservation and nutrition programs, and a permanent disaster assistance program) will be very difficult. Thus, there is an increased inclination at the committee level to stick with existing programs. There is money for them--it's in the budget baseline assigned to the committees--and farmers generally seem satisfied with existing programs.

--That doesn't mean that bold new proposals for farm policy reform are dead. Once the committees complete their work on the farm bill and it heads to the floor for debate, proponents of substantial reform get another chance to argue their case to a perhaps more receptive general membership of both bodies. Not being tied so closely to parochial farm interests, non-agriculture committee congressmen approach the farm bill debate with an open mind. So, expect the drumbeat for reform to increase after the farm bill leaves the committee and nears the time for floor debate.

--It increasingly looks as if the Senate Committee on Agriculture will not vote on the farm bill before the August recess, which starts in just three weeks; while the House Agriculture Committee is scheduled to vote on the legislation this week, and take the bill to the floor next week. Some think that it will be problematic to have a House-passed farm bill sit around for months while the Senate continues to the debate the matter. I am not sure that is the case. In 1990 and again in 2002, the House passed its bill several months prior to the Senate acting, and I don't recall that the gap in timing in itself had any significant effect in the ultimate product that came out of the House-Senate conference on the bill.

--Even though the House has scheduled mark-up and floor debate doesn't mean that it will happen. In the last few days, there has been some speculation that the House might delay until September too.

--On some specific items: More and more, it looks like the committees will look at reducing crop insurance program spending to find additional money for new priorities, rather than significant cuts to direct payments. Still no signs that the payment limitation issue has been resolved. So far, the House Agriculture Committee has not made any proposal, and Chairmen Peterson might wait until floor debate to unveil proposals to toughen the payment limitation rules.

--Last Friday, USDA sent a letter to Chairman Peterson detailing strong objections to the draft House farm bill. Clearly, USDA sees little of value in the House Agricultrue Committee approach; so, while it is too early for a veto threat to be unsheathed, it can't be discounted entirely.

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FARM BILL UPDATE: Some Observations While The Agriculture Committees Are In The Midst Of Crafting A Farm Bill

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