Cantor said, “Despite the Senate’s unwillingness to challenge the status-quo and include all of the critical reforms to important programs like the Supplemental Nutrition Assistance Program, the finalized Farm Bill will include a new initiative that allows states to implement work requirements for able-bodied adults as well as initiatives to help move individuals from dependence to self-sufficiency and independence."
In support of passage of the Farm Bill proposal is the American Soybean Association, which provides details about choices for safety net programs that will be available for farmers.
ASA said, “The bill includes a choice between an ASA-supported revenue program that covers both price and yield losses with county and farm level options, and a price support program which allows the optional purchase of insurance coverage under a Supplemental Coverage Option (SCO). The bill also eliminates controversial Direct Payments while maintaining decoupled farm support programs that will minimize the possibility of planting and production distortions that could trigger new WTO challenges. The language in Title 1 allows producers to choose between maintaining existing crop acreage base or reallocating their current base acreage to reflect average acres planted to covered commodities in 2009-2012. On crop insurance, the bill makes enterprise units permanent, allows growers to purchase enterprise unit coverage for both irrigated and dryland crops, authorizes a new Supplemental Coverage Option (SCO), and will help to strengthen the next generation of agriculture by providing a 10 percent increase in premium support to beginning farmers and ranchers.”
On the issue of payment limitations, which had been reduced in both the House and Senate versions, the Conference Committee ignored the restricted levels and kept the $125,000 per person ($250,000 per couple) levels from the 2008 Farm Bill. However, the USDA is expected to redefine who is actively engaged in farming and that will reduce payments for some farming operations.
As indicated in the comments by the American Soybean Association, farmers would be able to make choices of the type of safety net program they want, which was the compromise that keeps Southern Farmers happy with target prices, and Northern farmers happy with a revenue risk management program that rolls with year to year changes. The target prices put into the legislation are $3.70 for corn, $8.40 for soybeans, and $5.50 for wheat. Marketing loan rates (which require conservation compliance) are $1.95 for corn and $5.00 for soybeans.
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