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One of the most contentious program in Washington is now the House’s attempt to amend the Senate’s farm bill. Both chambers must pass a farm bill by the end of September to maintain the federal safety net for farmers. The Senate’s bill funds crop insurance for the first time, but with a much lower participation rate than initially advertised, would otherwise slash corn and soybean subsidies in order to make up the difference, and would make deeper cuts to other direct subsidies. The House’s farm bill strikes a much different balance, and would make large cuts to direct payments, sow insurance subsidies, and renewable energy conservation programs.
The lower chamber is debating a four-year farm bill that in a series of amendments would support crop insurance, renewable energy, conservation, and the further modernization of direct payments programs. Direct payments are scheduled to undergo a one-year phase-out starting in 2014. The House Agriculture Committee, controlled by Republicans, has passed legislation that would leave direct payments at about a third of their current level, replace a voluntary conservation program with a mandatory one, and would prohibit states from implementing the following program “on a statewide basis, but not on a multi-state basis.”
On July 16 the House Agriculture Committee passed the Emergency Conservation Program Extension and Modernization Act, H.R. 3982, by a vote of 30-22. Most Democrats supported the bill while many Republicans did not. Among the defeated amendments were amendments to maintain both an optional direct payments program, initially set to completely phase out in 2014, and the mandatory conservation program (HR 3358) proposed by Maryland Rep. Frank Wolf that would provide payments to farmers to keep them from converting land to other uses.
Numerous entities said the House Agriculture Committee bill would leave in place a destructive farm bill. In a July 23 letter to House Speaker John Boehner, a group of the nation’s largest organizations including the U.S. Chamber of Commerce, Farm Credit, and the American Farm Bureau Federation urged Boehner to take immediate action to ensure that the Agriculture Committee bill is included in the farm bill when both houses act on a farm bill by the