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Despite the ongoing Easter Recess, Washington was hopping with farm bill action last week, with a new funding framework emerging that could further cut funds from the commodity title. The framework would spend about $10 billion over the farm bill baseline, a number widely agreed to but not yet paid for with offsets, which are required under budget pay-as-you-go or "pay-go" rules.
One proposal that is gaining support among negotiators is spending $10.855 billion and cutting direct payment by 2 to 3% to pay for the $855 million increase. Commodity groups met with Senate staff March 26 and at that time, were informed that proponents of commodity programs hoped to determine where the cuts would occur. "Some fear that once a decision is made to cut direct payments, it will be difficult to resist the temptation to make further cuts to restore other programs," according to a statement from the National Sorghum Producers.
Though farm bill language could change hundreds of times before a final bill takes form, the most recent language proposes cuts to commodity program direct payments. Additionally, the latest proposal suggests $5.9 billion in crop insurance cuts.
In contrast, nutrition spending under the framework would go up about $9.5 billion and conservation would go up about $4 billion. Specialty crops would gain about $1.3 billion in the commodity title.
Any direct payment cuts in a final bill are likely to face stiff opposition from Senate Republicans while House passage would likely depend upon whether or not House Ag Committee Ranking Member Bob Goodlatte chooses to go along with particular cuts. Still, an agreement has not been reached on how to offset the proposed $10.855 billion over farm bill baseline spending.
The National Corn Growers Association has voiced support for cutting direct payments if a revenue-based assurance plan is put in place. However, wheat growers are opposed to the idea and asked its members to write legislators about the importance of the commodity title, particularly the direct payment and crop insurance programs.
The framework out last week is the latest in a series of attempts to reach compromise on farm bill funding issues. Congress is scheduled to be back in session this week; parts of the 2002 Farm Bill have been extended a number of times to allow negotiations to continue, but the latest extension ends April 18.
One person who has seen several farm bills from the perspective of the Congress and the White House commented, "Well, it sounds like the frustration level is about high enough that we might get a bill."
Policy is one of the most important issues facing farmers today, but often the most difficult to digest. Jacqui Fatka has a passion to decode the often difficult world of agricultural policy into terms understandable for today's ag players.
Fatka joined the Farm Progress team as E-Content Editor in August 2003 after graduating from Iowa State University. Prior to full-time employment with Farm Progress, she interned at Wallaces Farmer magazine, Iowa Sen. Chuck Grassley's press office and the Iowa Pork Producers Association and freelanced for National Hog Farmer. She also worked as a public relations consultant with Iowa Industries for the Future, an effort to bring together major players in the biorenewables industry.
Currently Fatka is a staff editor at a sister publication, Feedstuffs. For Farm Futures she regularly tells the story of ongoing agricultural policy changes. Her byline can also be found on management profiles.
Fatka grew up on a grain and livestock farm near Atlantic, Iowa. She currently lives in central Ohio with her husband Eric.
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