I am pleased to let you all know that the House of Representatives and Senate overwhelmingly passed an historic new farm bill! 

 The 2008 Farm Bill will benefit all Americans through the following provisions: 

• Permanent disaster assistance program;
• Mandatory country of origin labeling (COOL);
• Interstate shipment of state inspected meat;
• Continuation of the Milk Income Contract Loss (MILC) program with added cost of production;
• More than $900 million for specialty crops;
• $7.9 billion for conservation programs;
• More than $10 billion for domestic and international nutrition programs;
• Payment reforms by eliminating the triple entity rule and requiring direct attribution of farm program payments; and
• Increased funding for the next generation of renewable fuels.

The Bill makes real gains in subsidy reform in the new ACRE program (Average Crop Revenue Election) and provides funding for conservation, nutrition, and healthy and local foods.  ACRE also represents a fundamental reform in how U.S. commodity programs operate—reducing market distortions, cutting direct payments, reducing loan deficiency payment rates, and freeing up funding for other priorities.

This allows producers to choose a market-oriented, risk management tool that adjusts with market prices and pays farmers only when they need it, when they suffer a real loss in revenue. I know many farmers want this choice and it is estimated that nearly 100 million acres to be enrolled in the program because it provides better protection while freeing up money for other priorities. (conservation/ nutrition) Congress also responded to the need for more conservation funding, better efficiencies in current working lands programs and several new/modified options including:

• Environmental Quality Incentives Program
• Conservation Stewardship Program
• Wetland Reserve and Grassland Reserve Programs
• And a new conservation loan program

This bill expands commitment to important farmers’ market programs, Healthy Urban Food Enterprise Development program, Fresh Fruit and Vegetable (SNACK) program, and the Community Food Security Program. It also allows schools the flexibility to give preference to local farmers in supplying food for the school food programs while making significant advances to address growing diet-related health concerns, food security and infrastructure needs.

Despite the broad, bipartisan support throughout Congress, President Bush has threatened to veto the farm bill due to subsidy restrictions.  He wants farmers whose annual incomes exceed $200,000 to be denied subsidies.   

 Let’s hope President Bush realizes the importance of the entire package for all Americans and follows the overwhelming signal from Congress by signing this bill.

Alex Tiller

http://blog.alextiller.com