The 2013 Farm Bill: A Comparison of the Senate-Passed (S. 954) and House

The 2013 Farm Bill: A Comparison of the Senate-Passed (S. 954) and House

The 2013 Farm Bill: A Comparison of the

Senate-Passed (S. 954) and House-Passed

(H.R. 2642, H.R. 3102) Bills with Current Law

Ralph M. Chite, Coordinator

Section Research Manager

October 18, 2013

Congressional Research Service

7-5700 www.crs.gov

R43076

The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Summary

Congress periodically establishes agricultural and food policy in an omnibus farm bill. The 113 th

Congress faces reauthorization of the current five-year farm bill (the Food, Conservation, and

Energy Act of 2008, P.L. 110-246), since many of its provisions expire in 2013. The 2008 farm bill originally expired in 2012, but the 112 th

Congress did not complete action and instead extended the law for one year (P.L. 112-240). The 2008 farm bill covers farm commodity support, horticulture, livestock, conservation, nutrition assistance, trade and international food aid, agricultural research, farm credit, rural development, bioenergy, and forestry.

The Senate Agriculture Committee approved its version of an omnibus 2013 farm bill (S. 954, the

Agriculture Reform, Food, and Jobs Act of 2013) by a vote of 15-5 on May 14, 2013. The next day, the House Agriculture Committee marked up its version of the farm bill (H.R. 1947, the

Federal Agriculture Reform and Risk Management Act of 2013) with a vote of 36-10. The Senate adopted S. 954 by a vote of 66-27 on June 10. The House considered H.R. 1947 and adopted numerous amendments, but defeated the bill on June 20 by a vote of 195-234. On July 11, the

House passed a variation of the defeated bill that excluded a nutrition title but included other adopted floor amendments (H.R. 2642) by a vote of 216-208. On September 19, the House passed a stand-alone nutrition bill (H.R. 3102, the Nutrition Reform and Work Opportunity Act of 2013) by a vote of 217-210. The House subsequently adopted a resolution (H.Res. 361) that combined the texts of H.R. 2642 and H.R. 3102 into one bill (H.R. 2642) for purposes of resolving differences with the Senate.

Within these bills are provisions that would reshape the structure of farm commodity support, expand crop insurance coverage, consolidate conservation programs, reauthorize and revise nutrition assistance, and extend authority to appropriate funds for many U.S. Department of

Agriculture (USDA) programs through FY2018.

Both the House and Senate bills would eliminate direct payments to farmers, and revise (and rename) counter-cyclical price and revenue support programs. The House bill would repeal a permanent law that has served as a fallback for the farm commodity support programs if current authorities were allowed to expire, and instead makes the farm commodity programs in H.R.

2642 the new permanent law. Both bills reauthorize various disaster assistance programs.

Both the House and Senate would reauthorize the Supplemental Nutrition Assistance Program

(SNAP, formerly food stamps), though the Senate’s reauthorization is for five years and the

House’s is for three years. Both bills restrict how a household’s receipt of Low-Income Home

Energy Assistance Program (LIHEAP) benefits can affect SNAP benefits. The House bill also would restrict categorical eligibility, repeal state performance bonuses, expand drug testing for

SNAP applicants, and change several time limit and work requirements.

The Congressional Budget Office (CBO) projects that if the mandatory programs of the 2008 farm bill were to continue, they would cost $973 billion over the next 10 years (FY2014-

FY2023). If enacted, the Senate-passed farm bill (S. 954) would reduce this baseline by $17.9 billion (−1.8%) over 10 years. The House-passed combination of H.R. 2642 and H.R. 3102 together would reduce spending by $51.9 billion (−5.3%) over 10 years. For nutrition programs, the Senate bill’s reduction is $3.9 billion (−0.5%); the House bill’s reduction is $39.0 billion

(−5.1%) over 10 years. For the agriculture-related (non-nutrition) portion of the bill, the Senate bill’s reduction is $13.9 billion (−6.7%); the House bill’s reduction is $12.9 billion (−6.2%).

Congressional Research Service

The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Contents

Introduction ...................................................................................................................................... 1

Budgetary Impact ............................................................................................................................. 4

Title-by-Title Summaries of the Senate-Passed and House-Passed 2013 Farm Bills ...................... 6

Farm Bill Title I, Commodity Programs .................................................................................... 6

Farm Bill Title II, Conservation ................................................................................................ 8

Farm Bill Title III, Trade ........................................................................................................... 9

Farm Bill Title IV, Nutrition .................................................................................................... 10

Farm Bill Title V, Credit .......................................................................................................... 12

Farm Bill Title VI, Rural Development ................................................................................... 13

Farm Bill Title VII, Research .................................................................................................. 14

Farm Bill Title VIII, Forestry .................................................................................................. 15

Farm Bill Title IX, Energy ....................................................................................................... 15

Farm Bill Title X, Horticulture ................................................................................................ 16

Farm Bill Title XI, Crop Insurance .......................................................................................... 17

Farm Bill Title XII, Miscellaneous .......................................................................................... 18

Provisions of the Senate- and House-Passed Versions of the 2013 Farm Bill Compared with Current Law ........................................................................................................................ 21

Figures

Figure 1. Ten-Year Scores of the Senate and House 2013 Farm Bills ............................................. 5

Tables

Title I. Commodity Programs ........................................................................................................ 21

Title II. Conservation ..................................................................................................................... 48

Title III. Trade ................................................................................................................................ 69

Title IV. Nutrition ........................................................................................................................... 78

Title V. Credit ................................................................................................................................. 93

Title VI. Rural Development ......................................................................................................... 98

Title VII. Research, Extension, and Related Matters ................................................................... 112

Title VIII. Forestry ....................................................................................................................... 126

Title IX. Energy ........................................................................................................................... 133

Title X. Horticulture..................................................................................................................... 141

Title XI. Crop Insurance .............................................................................................................. 148

Title XII. Miscellaneous .............................................................................................................. 157

Congressional Research Service

The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Contacts

Author Contact Information......................................................................................................... 174

Acknowledgments ....................................................................................................................... 174

Congressional Research Service

The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Introduction

The 113 th

Congress is in the midst of considering an omnibus farm bill that will establish the direction of agricultural policy for the next several years. Many provisions of the current farm bill

(the Food, Conservation, and Energy Act of 2008, P.L. 110-246) expired in 2012, but were extended for an additional year in the American Taxpayer Relief Act of 2012 (P.L. 112-240, the fiscal cliff bill). The 112 th

Congress began work on a new farm bill but did not complete action before the conclusion of the Congress, requiring new bills to be introduced in the 113 th

Congress.

The Senate Agriculture Committee reported its version of the 2013 omnibus farm bill on May 14,

2013 (S. 954, the Agriculture Reform, Food and Jobs Act of 2013), by a vote of 15-5. Floor action began during the week of May 20, 2013, and concluded on June 10, 2013, when the full Senate approved the measure by a vote of 66-27. While the bill was being debated in the Senate, approximately nine amendments were adopted and six were rejected. Adopted amendments included a reduction in crop insurance premium subsidies for a producer with an adjusted gross income above $750,000, and another that bars additional categories of ex-offenders from receiving Supplemental Nutrition Assistance Program (SNAP) benefits. Attempts to modify the sugar program, further limit SNAP spending, eliminate crop insurance subsidies for tobacco, and require the labeling of genetically engineered foods were all defeated. More than 200 other amendments were offered to the Senate bill, but were not considered, when an agreement could not be reached on consolidating the amendments and limiting floor debate.

Action on a 2013 Farm Bill

Committee

House Senate

Initial Floor Action

House

5/15/2013

H.R. 1947

Vote of

36-10

H.Rept. 113-

92 a

5/14/2013

S. 954

Vote of

15-5

S.Rept. 113-

88

6/20/2013

H.R. 1947

Fails: Vote of

195-234

7/11/2013

H.R. 2642

Vote of

216-208

Senate

6/10/2013

S. 954

Vote of

66-27

Conference Agreement

Report House Senate

Public Law

— — — —

9/19/2013

H.R. 3102

Vote of

217-210

9/28/2013

H.Res. 361 combines

H.R. 2642 and H.R.

3102

Source: CRS. a. After H.R. 1947 was reported by the House Agriculture Committee on 5/15/2013, the bill was amended by the House Judiciary Committee on 6/10/2013 with respect to rulemaking procedures. See H.Rept. 113-92,

Part 2 for its report.

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The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

On May 15, 2013, the House Agriculture Committee completed markup of its version of the bill

(H.R. 1947, the Federal Agriculture Reform and Risk Management Act of 2013) and approved the revised measure by a 36-10 vote. The bill was subsequently referred to the House Judiciary

Committee, which revised the bill to ensure that certain dairy programs were subject to standard rulemaking procedures. Floor action on the House bill was conducted during the week of June 17, when numerous amendments were adopted to the committee bill. However, the amended bill was defeated by a vote of 195-234 on June 20.

Three weeks later, the full House debated a variation of the defeated bill that dropped all of the nutrition title but included all of the earlier adopted floor amendments to the other titles. This revised bill (H.R. 2642) was approved by the House by a 216-208 vote on July 11. In order to initiate conference committee negotiations with the House, the Senate on July 18 substituted the text of H.R. 2642 with the text of S. 954. On September 19, the House passed a stand-alone nutrition bill (H.R. 3102) by a vote of 217-210.

1

The House adopted a resolution (H.Res. 361) on

September 28 that combined the texts of H.R. 2642 and H.R. 3102 into one bill (H.R. 2642) for purposes of resolving differences with the Senate. Conference on the two measures is pending.

Within the various titles of S. 954 and the combined H.R. 2642 and H.R. 3102, as passed by their respective chambers, are provisions that would reshape the structure of farm commodity support, expand crop insurance coverage, consolidate conservation programs, reauthorize and revise nutrition assistance, and extend authority to appropriate funds for many U.S. Department of

Agriculture (USDA) discretionary programs through FY2018. Both the House and Senate proposals would eliminate direct payments to farmers and revise (and rename) counter-cyclical price and revenue support programs. S. 954 and H.R. 3102 reauthorize and revise the

Supplemental Nutrition Assistance Program (SNAP, formerly food stamps).

This report begins with a brief overview of the estimated budgetary impact of the House and

Senate farm bills, followed by a summary comparison of the major provisions of each title. A side-by-side section comprehensively compares all of the provisions in S. 954 as passed by the

Senate (now also referred to as the Senate amendment to H.R. 2642) and the latest House-passed version of H.R. 2642 (which includes the provisions of H.R. 3102 as a new Title IV to H.R. 2642) with each other, and with current law or policy.

The current law column of the side-by-side tables reflects the provisions of the 2008 farm bill

(P.L. 110-246) as amended by the American Taxpayer Relief Act of 2012 (P.L. 112-240), which extended most of the 2008 farm bill provisions for an additional year.

1

In most ways, H.R. 3102 resembles the nutrition title of H.R. 1947, as amended on the floor, but it differs in five major ways that are explained in the Title IV summary of this report.

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The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Legislative Issues

Farm Bill Budget

Farm Safety Net (Commodity

Support, Crop Insurance, and

Disaster Assistance)

Dairy Policy

Sugar Policy

Conservation and Environment

Agricultural Trade and

International Food Aid

Domestic Food and

Nutrition Assistance

Agricultural Credit

Rural Development

Agricultural Research

Agriculture-Based

Biofuels/Bioenergy

Horticulture and Organic

Agriculture

Livestock/Animal Agriculture

EPA-Related Issues

Rulemaking Process

Farm Labor

2013 Farm Bill: Key CRS Policy Staff

Name/Title

Jim Monke

Specialist in Agricultural Policy

Dennis A. Shields

Specialist in Agricultural Policy

Phone E-mail

7-9664 [email protected]

7-9051 [email protected]

Randy Schnepf

Specialist in Agricultural Policy

Remy Jurenas

Specialist in Agricultural Policy

Megan Stubbs

Specialist in Agricultural Conservation and Natural Resources Policy

Charles E. Hanrahan

Senior Specialist in Agricultural Policy

Randy Alison Aussenberg

Analyst in Nutrition Assistance Policy

Jim Monke

Specialist in Agricultural Policy

7-4277 [email protected]

7-7281 [email protected]

7-8707 [email protected]

7-7235 [email protected]

7-8641 [email protected]

7-9664 [email protected]

Tadlock Cowan

Analyst in Natural Resources and Rural

Development

Dennis A. Shields

Specialist in Agricultural Policy

7-7600 [email protected]

7-9051 [email protected]

Analyst in Natural Resources Policy

7-9008 [email protected]

Randy Schnepf

Specialist in Agricultural Policy

7-4277 [email protected]

Renée Johnson

Specialist in Agricultural Policy

7-9588 [email protected]

Joel L. Greene

Analyst in Agricultural Policy

Claudia Copeland

Specialist in Resources and Environmental

Policy

Maeve P. Carey

Analyst in Government Organization and

Management

Gerald Mayer

Analyst in Labor Policy

7-9877 [email protected]

7-7227 [email protected]

7-7775 [email protected]

7-7815 [email protected]

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The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Budgetary Impact

2

The Congressional Budget Office (CBO) projects that the mandatory programs of the 2008 farm bill, if they were to continue, would cost $973 billion over the next 10 years (FY2014-FY2023).

3

This amount consists of $764 billion for nutrition programs, primarily the Supplemental Nutrition

Assistance Program (SNAP), and $208 billion for non-nutrition agriculture-related programs.

This “baseline” has been reduced by $6.4 billion to reflect the effects of sequestration over the

10-year baseline,

4

all of which has come from the agriculture-related portion since SNAP is generally exempt from sequestration.

5

Compared to this post-sequestration baseline, the Senate-passed farm bill (S. 954), would reduce spending by $17.9 billion (−1.8%) over 10 years.

6

The House-passed combination of H.R. 2642 and H.R. 3102 together would reduce spending by $51.9 billion (−5.3%) over 10 years.

7

• For nutrition programs, the Senate bill’s reduction in S. 954 is $3.9 billion

(−0.5%) over 10 years; the House bill’s reduction in nutrition in H.R. 3102 is

$39.0 billion (−5.1%) over 10 years.

• For the agriculture-related (non-nutrition) portion of the bill, the Senate bill’s reduction is $13.9 billion (−6.7%) over 10 years. The House bill’s reduction in agriculture-related programs in H.R. 2642 is $12.9 billion (−6.2%) over 10 years.

If sequestration were repealed and the baseline were increased by the $6.4 billion adjustment that has been taken (restoring the baseline to $979 billion), the Senate-passed bill would reduce spending by $24 billion over 10 years, and the combined House-passed bill by $58 billion.

The net projected spending by these farm bills over the next 10 years, if they were enacted, would be the same whether one quotes pre- or post-sequestration amounts. The Senate bill would spend an estimated $955 billion, of which $195 billion is for the agriculture-related portion; the House bills together would spend $921 billion, of which $196 billion is for the agriculture portion.

The net reduction in each bill is composed of some titles receiving more funding than in the past, while other titles provide offsets, some of which contributes to deficit reduction. Figure 1 illustrates the budgetary impacts of changes to each title in each bill. The Table contains the data in tabular form and includes an estimate of the proposed outlays under the draft legislation. More background and detail on the budget available to write the farm bill, the CBO scores of each bill, and other budgetary issues are available in CRS Report R42484, Budget Issues Shaping a Farm

Bill in 2013.

2

This section was written by Jim Monke, Specialist in Agricultural Policy.

3

The May 14, 2013, CBO baseline for the Commodity Credit Corporation is available at http://cbo.gov/publication/

44202, and for the Supplemental Nutrition Assistance Program at http://cbo.gov/publication/44211.

4

The effect of sequestration on the baseline and scores is explained in the initial CBO estimates of the farm bill drafts prior to markup for the Senate farm bill (p. 2 and Table 4, at http://cbo.gov/publication/44175, May 13, 2013) and the

House bill (p. 2 and Table 4, at http://cbo.gov/publication/44177, May 13, 2013).

5

See CRS Report R42050, Budget “Sequestration” and Selected Program Exemptions and Special Rules.

6

CBO cost estimate of S. 954 as reported (http://cbo.gov/publication/44248, May 17, 2013).

7

CBO cost estimates of H.R. 2642 as introduced (http://cbo.gov/publication/44414, July 11, 2013), and H.R. 3102 as introduced (http://cbo.gov/publication/44583, September 16, 2013).

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The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Figure 1. Ten-Year Scores of the Senate and House 2013 Farm Bills

(change in outlays over FY2014-FY2023 in billions of dollars by farm bill title, relative to baseline)

Source: CRS, using CBO cost estimates of S. 954, H.R. 2642, and H.R. 3102.

2013 Farm Bill Budget: Baseline, Scores, and Proposed Outlays, by Title

(outlays in millions of dollars, 10-year total FY2014-FY2023)

CBO Score of Bill

(change to baseline)

Outlays Proposed

(Baseline + Score)

2013 Farm Bill Titles

CBO baseline S.

H.R. 2642

H.R. 3102 S. 954

H.R. 2642

H.R. 3102

Research

Energy

Crop Insurance

Miscellaneous (NAP)

Subtotal, without nutrition

Nutrition (for House, H.R. 3102)

13 228 96 241 109

111 781 760 892 871

84,105

1,410

208,473

764,432

4,999

-294

-13,949

-3,944

8,914

161

-12,885

-38,999

89,104

1,116

194,524

760,488

93,019

1,571

195,588

725,433

Source: CRS, using the CBO baseline (May 2013) and CBO cost estimates of S. 954, H.R. 2642, and H.R. 3102.

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The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Title-by-Title Summaries of the Senate-Passed and

House-Passed 2013 Farm Bills

Farm Bill Title I, Commodity Programs

8

Under both the Senate-passed (S. 954) and House-passed (H.R. 2642) 2013 farm bills, farm support for traditional program crops is restructured by eliminating direct payments,

9

the countercyclical price (CCP) program, and the Average Crop Revenue Election (ACRE) program.

Authority is continued for marketing assistance loans, which provide additional low-price protection at “loan rates” specified in current law (with an adjustment made to the cotton loan rate). Direct payments account for most of current commodity spending and are made to producers and landowners based on historical production of corn, wheat, soybeans, cotton, rice, peanuts, and other “covered” crops. Approximately three-fourths of the 10-year, $46 billion-$47 billion in savings associated with the proposed elimination of current farm programs would be used to offset the cost of revising farm programs (Title I), adding permanent disaster assistance

(Title I), and enhancing crop insurance (Title XI). The two bills provide programs for covered crops, except cotton, which would have its own program (see “Farm Bill Title XI, Crop

Insurance”). Importantly, the Senate bill suspends permanent price support authority under the

Agricultural Adjustment Act of 1938 and Agricultural Adjustment Act of 1949 until program authority in S. 954 expires in 2018, while the House bill repeals permanent law and provides no expiration date for the commodity support programs authorized in H.R. 2642.

Both S. 954and H.R. 2642 borrow conceptually from current farm programs in order to enhance price or revenue protection for producers.

Both bills retain a counter-cyclical price program that makes a farm payment when prices for covered crops decline below certain levels. It is renamed Adverse

Market Payments or AMP in S. 954 and Price Loss Coverage or PLC in H.R.

2642. To better protect producers in a market downturn, the price guarantees

(called “reference prices” in both bills) that determine payment levels are set in statute and increased relative to current parameters (called “target prices”). A broad exception applies in S. 954 to the reference price for crops other than rice and peanuts, where it is calculated as 55% of a rolling five-year average

(excluding the high and low years).

10

S. 954 continues current policy by making payments on 85% of historical

plantings (or “base acres”), a provision designed to minimize the program’s effect on planting decisions. In contrast, the House bill pays on 85% of planted

acreage to better align payments with producer risk.

Both bills retain a revenue-based program designed to cover a portion of a farmer’s out-of-pocket loss (referred to as “shallow loss”). It is renamed

8

This section was written by Dennis A. Shields (farm commodity support), Randy Schnepf (dairy), Remy Jurenas

(sugar), and Jim Monke (payment limits), all Specialists in Agricultural Policy.

9

Direct payments continue at a reduced level in the House bill for cotton in crop years 2014 and 2015.

10

The 2012 Senate-passed farm bill (S. 3240) did not provide for a counter-cyclical price program, and an amendment to eliminate AMP for crops other than rice and peanuts failed during committee mark-up of S. 954.

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The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Agriculture Risk Coverage (ARC) in S. 954 and Revenue Loss Coverage or

(RLC) in H.R. 2642. Payments are made on planted acres when actual crop revenue drops below a specified percentage of historical or “benchmark” revenue

(88% in S. 954 and 85% in H.R. 2642). In the Senate bill under ARC, farmers can select coverage at either the county or individual farm level, and any payments are made in addition to AMP. In the House bill, coverage under RLC is available at only the county level, and the program is not available in combination with PLC.

11

Five disaster programs were established in the 2008 farm bill for weather-induced losses in

FY2008-FY2011. Both 2013 farm bills retroactively reauthorize four programs covering livestock and tree assistance, specifically FY2012-FY2018 for the Senate bill and beginning FY2012 and continuing without an expiration date for the House bill. The crop disaster program from the 2008 farm bill (i.e., Supplemental Revenue Assistance, or SURE) is not reauthorized in either bill, but elements of it are folded into the new ARC in the Senate bill by allowing producers to protect against farm-level revenue losses (not included in the House bill). S. 954 also provides disaster benefits to tree fruit producers who suffered crop losses in 2012.

Farm commodity programs have certain limits that cap payments (currently $105,000 per person) and set eligibility based on adjusted gross income (AGI, currently a maximum of $500,000 per person for nonfarm income and $750,000 for farm income). The two bills are somewhat similar and diverge from current law, with S. 954 reducing the farm program payment limit to $50,000 per person for combined AMP and ARC payments and adding a $75,000 limit on loan deficiency payments (LDPs). Under H.R. 2642, the limit for all title I payments would be $125,000, of which LDPs would be limited to $75,000 and other payments including PLC, RLC, and transitional direct payments to $50,000. The House bill combines peanuts into the limit with other commodities, while the Senate bill continues separate but equal limits for peanuts. Both the

Senate and House bills change the threshold to be considered “actively engaged” and to qualify for payments, by effectively requiring personal labor in the farming operation. Both bills also tighten limits on AGI, with a combined AGI limit of $750,000 in S. 954 and $950,000 in H.R.

2642. The House bill caps overall farm program spending at $16.96 billion for FY2014-FY2020 for combined payments under Price Loss Coverage and Revenue Loss Coverage (collectively called Farm Risk Management Election).

For dairy policy, both bills contain similar, significant changes, including elimination of the dairy product price support program, the Milk Income Loss Contract (MILC) program, and export subsidies. These are replaced by a new program, which makes payments to participating dairy producers when the national margin (average farm price of milk minus average feed costs) falls below $4.00 per hundredweight (cwt.), with coverage at higher margins available for purchase. A provision in S. 954 makes participating producers subject to a separate program, which reduces incentives to produce milk when margins are low—this provision is not present in H.R. 2642. In addition, H.R. 2642 requires USDA to adhere to standard rulemaking procedures and to determine the market impacts of the new program during the rulemaking process. Separately, federal milk marketing orders have permanent statutory authority and continue intact. However,

11

RLC makes payments to producers for each planted crop when actual countywide crop revenue is below 85% of historical revenue (i.e., the producer absorbs the first 15% of the shortfall). In contrast, for ARC, the revenue guarantee is set at 88% of historical revenue (i.e., the producer absorbs the first 12% of the shortfall) at either the county or farm level (to cover more localized losses). In both cases, the government then pays for the next 10% of the loss. Any remaining losses are backstopped by crop insurance if purchased by the producer.

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The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

S. 954 (but not H.R. 2642) includes two additional provisions: one that requires USDA to use a specified pre-hearing procedure to consider alternative formulas for Class III milk product pricing, and a second that requires USDA to analyze and report on the potential effects of replacing end-product pricing with alternative pricing procedures.

The objective and structure of the sugar program are left unchanged in both bills, but the Senate bill reauthorizes the program through the 2018 crop year, while the House bill reauthorizes the program without an expiration date.

Farm Bill Title II, Conservation

12

The current agricultural conservation portfolio includes over 20 conservation programs. The conservation titles of both the Senate-passed (S. 954) and House-passed (H.R. 2642) farm bills reduce and consolidate the number of conservation programs while also reducing mandatory funding over the 10-year baseline by $3.5 billion in S. 954 and $4.8 billion in H.R. 2642.

Many of the larger existing conservation programs, such as the Conservation Reserve Program

(CRP), the Environmental Quality Incentives Program (EQIP), and the Conservation Stewardship

Program (CSP), are reauthorized by both bills with smaller and similar conservation programs

“rolled” into them. In response to reduced demand and as a budget saving measure, the largest conservation program, CRP, is reauthorized with a reduced acreage enrollment cap using a stepdown approach from the current 32 million acres to 25 million by FY2018 under S. 954 and 24 million acres under H.R. 2642. CRP also is amended to include the enrollment of grassland acres similar to the Grasslands Reserve Program (GRP), which is repealed. These grassland acres are limited to 1.5 million acres in S. 954 and 2 million acres in H.R. 2642. EQIP, a program that assists producers applying conservation measures on land in production, is reauthorized by both bills with a 5% funding carve-out for wildlife habitat practices (similar to the Wildlife Habitat

Incentives Program, WHIP, which is repealed). The Senate bill reduces budget authority for EQIP by a total of almost $1 billion over 10 years, while the House committee bill offers no reduction from the current $1.75 billion annually. CSP, another working lands program, is reauthorized at a reduced enrollment level under both bills: 10.348 million acres annually under S. 954 and 8.695 million acres annually under H.R. 2642, down from 12.769 million acres annually under current law.

Both bills create two new conservation programs—the Agricultural Conservation Easement

Program (ACEP) and the Regional Conservation Partnership Program (RCPP)—out of several of the existing programs. Conservation easement programs, including the Wetlands Reserve

Program (WRP), Farmland Protection Program (FPP), and GRP, are repealed and consolidated to create ACEP. ACEP retains most of the program provisions in the current easement programs by establishing two types of easements: wetlands easements (similar to WRP) that protect and restore wetlands, and agricultural land easements (similar to FPP and GRP) that prevent nonagricultural uses on productive farm or grasslands. The Agricultural Water Enhancement Program

(AWEP), Chesapeake Bay Watershed program, Cooperative Conservation Partnership Initiative

(CCPI), and Great Lakes Basin program are repealed by both bills and consolidated into the new

RCPP. RCPP uses partnership agreements with state and local governments, Indian tribes, farmer

12

This section was written by Megan Stubbs, Specialist in Agricultural Conservation and Natural Resources Policy.

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The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

cooperatives, and other conservation organizations to leverage federal funding and further conservation on a regional or watershed scale.

A major difference between the two bills is that the Senate-passed bill adds the federally funded portion of crop insurance premiums to the list of program benefits that could be lost if a producer is found to produce an agricultural commodity on highly erodible land without implementing an approved conservation plan or qualifying exemption, or converts a wetland to crop production.

This prerequisite, referred to as conservation compliance, has existed since the 1985 farm bill and currently affects most USDA farm program benefits, but has excluded crop insurance since 1996.

The House-passed bill offers no comparable provision.

Farm Bill Title III, Trade

13

Title III of the farm bill deals with statutes concerning U.S. international food aid and agricultural export programs. Both S. 954 and H.R. 2642, as passed by their respective chambers, reauthorize all of the international food aid programs, including the largest, Food for Peace Title II

(emergency and nonemergency food aid). Both bills contain amendments to current food aid law that place greater emphasis on improving the quality of food aid products (i.e., enhancing their nutritional quality). The Senate bill places new restrictions on the practice of monetization or selling U.S. food aid commodities in recipient countries to raise cash to finance development projects. In this regard, S. 954 requires implementing partners such as U.S. private voluntary organizations or cooperatives to recover 70% of the U.S. commodity procurement and shipping costs. The Senate bill repeals the specified dollar amounts for nonemergency food aid required in current law (the “safe box”). In place of the safe box, S. 954 provides that nonemergency food aid be not less than 20% nor more than 30% of funds made available to carry out the program, subject to the requirement that a minimum of $275 million be provided for nonemergency food aid. The House bill places no limits on the practice of monetization, other than new reporting requirements, and fixes the amount of “safe box” nonemergency assistance at $400 million annually.

The Senate farm bill creates a new local and regional purchase program in place of the expired local and regional procurement (LRP) pilot program of the 2008 farm bill. An adopted floor amendment to S. 954 increased the appropriation authorization for LRP to $60 million annually for FY2014 through FY2018, up from $40 million as reported out of committee. H.R. 2642 does not include an LRP program.

Both bills reauthorize funding for the Commodity Credit Corporation (CCC) Export Credit

Guarantee program and various agricultural export market promotion programs. S. 954 reduces the value of U.S. agricultural exports that can benefit from export credit guarantees from $5.5 billion to $4.5 billion annually. The House bill retains the $5.5 billion level of guarantees. Both bills authorize CCC funding of $200 million annually for the Market Access Program (MAP), which finances promotional activities for both generic and branded U.S. agricultural products.

MAP had been targeted in a number of deficit reduction proposals for elimination. Authorized

CCC funding for the Foreign Market Development Program (FMDP), a generic commodity promotion program, continues in both bills at $34.5 million annually through F2017.

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This section was written by Charles E. Hanrahan, Senior Specialist in Agricultural Policy.

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H.R. 2642 authorizes the Secretary of Agriculture to establish the position of Under Secretary of

Agriculture for Foreign Agricultural Services. S. 954 requires the Secretary, in consultation with the House and Senate Agriculture Committees and House and Senate Appropriations Committees to propose a plan for reorganization of the trade functions of USDA, including the establishment of an Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs. The Secretary is required to report on the plan 180 days after the farm bill’s enactment. Within one year of submission of the report, the Secretary is required to implement the reorganization plan including establishment of the Under Secretary position.

Farm Bill Title IV, Nutrition

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Of the 2013 farm bills passed by either chamber, the Senate-passed bill (S. 954) and one of the

House-passed bills (H.R. 3102) address nutrition programs. The initial House Agriculture

Committee-reported farm bill (H.R. 1947) included a nutrition title, but the bill was defeated on the House floor. The House subsequently passed H.R. 2642 in July without a nutrition title. In

September, the House passed a separate nutrition bill (H.R. 3102, the Nutrition Reform and Work

Opportunity Act), which in most ways resembles the nutrition title of H.R. 1947 as amended on the floor, with several key differences. An adopted House resolution (H.Res. 361) combined the texts of H.R. 3102 and H.R. 2642, making H.R. 3102’s text Title IV in H.R. 2642.

The House-passed nutrition bill (H.R. 3102, now Title IV of H.R. 2642) would reauthorize the nutrition programs for three years (FY2014-FY2016), while the Senate’s would reauthorize the programs for five years (FY2014-FY2018). Throughout the farm bill formulation, some policymakers expressed interest in separating the nutrition programs from the omnibus farm bill.

The House-passed proposal to make the authorization of nutrition programs out of sync with the rest of the farm bill programs is a step in that direction.

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The Senate- and House–passed nutrition provisions largely would maintain the nutrition program policies—for example, most eligibility and benefit calculation rules in SNAP—contained in the

Food and Nutrition Act of 2008 and other nutrition program authorizing statutes. However, some of the changes proposed are estimated to reduce spending for the nutrition programs. In particular, those changes associated with SNAP participation and benefits have been controversial. For the Nutrition title of each bill, CBO estimates total 10-year budget savings of

$3.9 billion in the Senate-reported S. 954 and $39.0 billion in the House-introduced H.R. 3102.

(Note that CBO did not provide a score of the Senate-passed S. 954; H.R. 3102 was not amended on the floor.)

SNAP provisions in both bills propose changes to the requirements for retailers who apply for authorization to accept SNAP and changes to some of the rules that govern participants’ and retailers’ redemption of SNAP benefits. Both bills would provide additional mandatory funding for reducing SNAP trafficking (the sale of SNAP benefits for cash or ineligible goods), although the Senate provides a larger amount. In terms of eligibility for SNAP and the calculation of monthly benefit amounts, both bills would change how a household’s receipt of Low-Income

Home Energy Assistance Program (LIHEAP) benefits affects the household’s SNAP benefit calculation; S. 954 would set a $10 threshold and the House bill would set a $20 threshold. In

14

This section contains material written by Randy Alison Aussenberg, Analyst in Nutrition Assistance Policy.

15

See CRS Report R42442, Expiration and Extension of the 2008 Farm Bill.

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addition, the House bill (based on provisions in H.R. 1947, as amended) also would (1) restrict categorical eligibility, (2) repeal state performance bonuses, and (3) reduce funding for the

Nutrition Education and Obesity Prevention Grant Program, as well as other SNAP changes not estimated to have a budgetary significance. The House bill also would make changes to the nutrition assistance provided to the Northern Mariana Islands and Puerto Rico and authorize new pilot projects in the areas of Employment and Training programs and retailer fraud. During

Senate floor consideration, the Senate added two SNAP amendments—one to allow certain delivery services that serve the elderly and disabled to redeem SNAP, and another to bar additional categories of ex-offenders from receiving SNAP benefits.

During floor consideration of the defeated H.R. 1947, the House adopted a number of amendments to the nutrition title; nearly all of these amendments were included in H.R. 3102 and therefore consolidated with H.R. 2642. Of these amendments, three pertained to SNAP eligibility. The House adopted amendments to expand states’ drug testing for SNAP applicants, to establish a state option program that would change work-related requirements and incentives for states, and to bar additional categories of ex-offenders from receiving benefits.

As compared to the defeated H.R. 1947, the House-passed H.R. 3102 (now Title IV of H.R. 2642) also would also make four further changes to SNAP policy (none of these changes are included in the Senate proposal):

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1. Increased funding incentives for states to opt into a broader work

requirement. Section 4039 includes an amended version of the work-related state option that was added during floor consideration of H.R. 1947 (amendment introduced by Representative Southerland). This state option would allow a state to require a broader share of its population to work and has the potential to carry broader sanctions. Under the version included in H.R. 3102, additional funding would be added if the option is chosen, so that a state would have a greater incentive to opt into the pilot program rather than continue its existing SNAP

Employment & Training programs. Additionally, states that do not opt into the state work option would lose available SNAP employment and training funding.

2. No labor-market-related waivers for able-bodied adults without dependents

(ABAWDs) who are working less than 20 hours per week. Under current law,

ABAWDs are required to work 20 hours per week or they will be limited to 3 months of SNAP benefits in a 36-month period. Currently, a state may—based on data on the availability of jobs—request or apply for a waiver from this provision for the entire state or parts of the state. Section 4009 of the House’s proposal would repeal USDA’s authority to issue such waivers.

3. Reduced exemptions from the ABAWD rule. Under current law, states may exempt a certain number of ABAWDs from the three-month time limit. These exemptions are based on the number of ABAWDs who received benefits prior to the enactment of the 1996 welfare reform law. In many states, because of carryover exemptions from prior years, these exemptions exceed the estimated total number of SNAP participants who were ABAWDs in FY2011. Section 4009

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CRS has released a congressional memorandum, “SNAP Provisions in H.R. 3102 That Differ from SNAP Provisions in the Nutrition Title in the House-defeated Farm Bill (H.R. 1947),” September 18, 2013. Congressional clients may request a copy from Randy Alison Aussenberg, [email protected]

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of the House proposal would revise the number of exemptions allowed for

ABAWDs, basing it on 15% of SNAP ABAWD participants in FY2011.

4. No ABAWD “Pledge State” Funding. Under the ABAWD rule, states may, but are not required to, offer an employment and training slot to an unemployed

SNAP ABAWD participant who is at risk of reaching the three-month time limit.

Federal law provides an additional $20 million in SNAP employment and training funding to states that “pledge” to serve all ABAWDs at risk of reaching the three-month time limit. H.R. 3102 eliminates this extra funding for states that pledge to serve all ABAWDs (instead, funds would be contingent on opting into the state work option proposed in Section 4039).

Of the two bills now in conference, only the House’s would increase resources for Community

Food Projects (by $10 million each year, with a carveout of $5 million of these grants for projects that incentivize low-income households to purchase fruits and vegetables). Both proposals would increase mandatory funding for the Emergency Food Assistance Program (TEFAP)—the Senate bill by $54 million over 10 years, and the House bill by $333 million over 10 years (according to

CBO). Both proposals would limit eligibility for the Commodity Supplemental Food Program

(CSFP) to low-income elderly participants, phasing out eligibility for low-income pregnant and post-partum women, infants, and children. Both proposals would add discretionary authority for a

Healthy Food Financing Initiative, a financing mechanism to sustain and create food retail opportunities in communities that lack access to healthy food. Only the Senate provides $100 million (over five years) in mandatory funding for Hunger-Free Communities Incentive Grants, which would fund incentives for SNAP participants’ purchase of fruits and vegetables; neither of these programs was included in the House bill.

The 2010 child nutrition reauthorization (Healthy, Hunger-Free Kids Act of 2010, P.L. 111-296) has already reauthorized WIC and the child nutrition programs through FY2015, but the 2013 farm bills do include related policies, such as farm-to-school efforts.

Farm Bill Title V, Credit

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The Consolidated Farm and Rural Development Act (also known as the ConAct) is the permanent statute that authorizes USDA agricultural credit and rural development programs. USDA serves as a lender of last resort by providing direct and guaranteed loans to farmers and ranchers who are denied direct credit by commercial lenders but have the wherewithal to repay the loan.

Both the Senate-passed (S. 954) and House-passed (H.R. 2642) farm bills in 2013 make relatively small policy changes to USDA’s credit programs. Both farm bills give USDA discretion to recognize (1) alternative legal entities to qualify for farm loans and (2) alternatives to meet a three-year farming experience requirement; and both bills increase the maximum size of downpayment loans and facilitate loans for the purchase of highly fractionated land in Indian reservations.

S. 954 also updates and modernizes the ConAct’s statutory language and organizes the various programs into separate subtitles (new Subtitle A is farm loans; Subtitle B is rural development;

Subtitle C is general provisions). Generally, most of the revised ConAct provisions are

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This section was written by Jim Monke, Specialist in Agricultural Policy.

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substantially the same, but are renumbered and reorganized. The Senate-passed bill also extends the number of years that farmers can remain eligible for direct farm operating loans, and eliminates term limits on guaranteed operating loans. It adds local and regional food production, including direct-to-consumer activities, to the allowed purposes for farm operating loans.

The credit title in H.R. 2642 does not restructure the ConAct nor change any term limit provisions. However, it does create a new microloan program that is similar to a microloan program that USDA created administratively in the past year. It also increases the percentage of a conservation loan that can be guaranteed, and adds another lending priority for beginning farmers, among other changes.

For the Farm Credit Act, which governs the Farm Credit System and Farmer Mac, the Senate bill would improve the disclosure of compensation packages for senior officers in the Farm Credit

System.

Farm Bill Title VI, Rural Development

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Like the Credit title discussed above, the Rural Development title in the Senate-passed 2013 farm bill (S. 954) is a restructuring of the ConAct, which provides permanent authority for USDA to carry out its portfolio of rural development programs. The Rural Development title in the Housepassed bill (H.R. 2642) makes funding authorization amendments to many existing rural development programs (at levels mostly lower than those of the Senate bill). The House-passed bill amends the water and waste water direct and guaranteed loan program to encourage financing by private or cooperative lenders to the maximum extent possible. The House bill also provides a

3%-5% carve-out of the Community Facilities appropriation for technical assistance, and encourages loan guarantees. It also includes a new provision directing the Secretary of

Agriculture to begin collecting data on the economic effects of the projects that USDA Rural

Development funds, and directs the Secretary to develop simplified applications for funding.

The Senate-passed bill consolidates various rural water and wastewater assistance programs and the Community Facilities loan and grant program into a new Rural Community Program category, and establishes criteria for which rural communities will receive priority in making loan and grant awards. The restructuring of the ConAct also eliminates several business programs, but consolidates many of their objectives into a broad program of Business and Cooperative

Development grants. Separately, S. 954 provides a total of $228 million in new mandatory rural development funding over 10 years, including funds for the Value-Added Producer Grant

Program ($12.5 million annually for FY2014-FY2018) and the Rural Microentrepreneur

Assistance Program ($3 million annually for FY2014-FY2018), and $150 million in mandatory spending for pending rural development loans and grants. The House bill increases mandatory spending by $96 million over 10 years including $50 million more for the Value-Added Producer

Grant program over 10 years, and an additional $46 million for Rural Economic Development

Loans and Grants.

S. 954 retains the definition of “rural” and “rural area” for purposes of program eligibility and makes it the basis for all rural development programs. The definition of “rural area” for electric and telephone programs is eliminated by S. 954, and the definition becomes the same as for other

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This section was written by Tadlock Cowan, Analyst in Natural Resources and Rural Development.

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rural programs. The bill retains the 2008 farm bill provision permitting communities that might otherwise be ineligible for USDA Rural Development funding to petition USDA to designate their communities as “rural in character,” thereby making them eligible for program support. S.

954 also eliminates the existing statutory definition of “rural” and “rural areas” for water and waste water programs and community facilities, but permits areas currently deemed as rural to remain eligible for these programs, unless USDA determines that they are no longer “rural in character.” The Senate bill also amends the definition of rural area in the 1949 Housing Act so that areas deemed rural between 2000 and 2010 would retain that designation until USDA receives data from the 2020 decennial census. The provision also raises the population threshold for eligibility from 25,000 to 35,000.

Included in both the House and Senate bills is reauthorization of funding for programs under the

Rural Electrification Act of 1936, including the Access to Broadband Telecommunications

Services in Rural Areas Program and the Distance Learning and Telemedicine Program. The

Senate bill also establishes a new grant program for the Access to Broadband

Telecommunications Services in Rural Areas Program in addition to its current loan guarantee program. The Senate bill also creates a new pilot program for “ultra-high speed” broadband connectivity. The Delta Regional Authority and the Northern Great Plains Regional Authority are reauthorized by both bills, but the Senate bill makes various technical changes to the organizational structure and operation of the two authorities.

Farm Bill Title VII, Research

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USDA is authorized under various laws to conduct agricultural research at the federal level, and provides support for cooperative research, extension, and post-secondary agricultural education programs in the states. Both the Senate-passed (S. 954) and the House-passed (H.R. 2642) 2013 farm bills reauthorize funding for these activities through FY2018, subject to annual appropriations, and amend authority so that only competitive grants can be awarded under certain programs.

In both bills, mandatory funding is increased for the Specialty Crop Research Initiative ($416 million over 10 years in the Senate bill and $555 million in the House bill) and the Organic

Agricultural Research and Extension Initiative ($80 million over 10 years in the Senate bill and

$100 million in the House bill). Also, mandatory funding is continued for the Beginning Farmer and Rancher Development Program in both the Senate bill ($85 million) and House bill ($100 million).

New in S. 954 is mandatory funding of $200 million to establish the Foundation for Food and

Agriculture Research, a nonprofit corporation designed to supplement USDA’s basic and applied research activities. It will solicit and accept private donations to award grants for collaborative public/private partnerships with scientists at USDA and in academia, nonprofits, and the private sector.

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This section was written by Dennis A. Shields, Specialist in Agricultural Policy.

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Farm Bill Title VIII, Forestry

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General forestry legislation is within the jurisdiction of the Agriculture Committees, and past farm bills have included provisions addressing forestry assistance, especially on private lands.

Both the House-passed (H.R. 2642) and Senate-passed (S. 954) 2013 farm bills generally repeal, reauthorize, and modify existing programs and provisions under two main authorities: the

Cooperative Forestry Assistance Act (CFAA), as amended, and the Healthy Forests Restoration

Act of 2003 (HFRA), as amended.

Most federal forestry assistance programs are permanently authorized, and thus do not require reauthorization in the farm bill. The House-passed bill, however, amends several forestry assistance programs by replacing their permanent authority to receive annual appropriations of such sums as necessary with a set level of appropriations through FY2018. The Senate-passed bill limits permanent authority for one program. Both bills repeal programs that have expired or have never received appropriations.

Both bills also include provisions that address the management of the national forest system. For example, both bills include provisions reauthorizing stewardship contracting, requiring revised strategic plans for forest inventory and analysis, and adding alternatives for addressing insect infestations and disease. The House bill also includes provisions to modify the existing public notice, comment, and appeals process for land and resource management plans and projects.

Farm Bill Title IX, Energy

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USDA renewable energy programs have been used to incentivize research, development, and adoption of renewable energy projects, including solar, wind, and anaerobic digesters. However, the primary focus of USDA renewable energy programs has been to promote U.S. biofuels production and use. Cornstarch-based ethanol dominates the U.S. biofuels industry. The 2008 farm bill attempted to refocus U.S. biofuels policy initiatives in favor of non-corn feedstocks, especially the development of the cellulosic biofuels industry. The most critical programs to this end are the Biomass Crop Assistance Program (BCAP), which assists farmers in developing nontraditional crops for use as feedstocks for the eventual production of cellulosic biofuels, and the Renewable Energy for America Program (REAP), which has funded a variety of biofuelsrelated projects including the installation of blender pumps to help circumvent the emerging blend wall that could potentially circumscribe domestic ethanol consumption near current levels of about 13 billion gallons.

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All of the major farm bill energy programs expire at the end of FY2013 and lack baseline funding going forward. Both the Senate-passed (S. 954) and House-passed (H.R. 2642) bills extend most of the renewable energy provisions of the farm bill, with the exception of the Rural Energy Self-

Sufficiency Initiative, the Forest Biomass for Energy Program, the Biofuels Infrastructure Study, and the Renewable Fertilizer Study which are either omitted or explicitly repealed by both bills.

20

This section was written by Katie Hoover, Analyst in Natural Resources Policy.

21

This section was written by Randy Schnepf, Specialist in Agricultural Policy.

22

The blend wall represents a ceiling on domestic ethanol consumption at 10% of the nation’s transportation supply of gasoline-like fuels based on vehicle and infrastructure (fuel storage tanks, retail pumps, etc.) limitations. For more information, see CRS Report R40155, Renewable Fuel Standard (RFS): Overview and Issues.

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In addition, S. 954 omits the Repowering Assistance Program, while H.R. 2642 adds a new reporting requirement on energy use and efficiency at USDA facilities. Otherwise, the primary difference between the House and Senate bills is in the source of funding. Over their five-year reauthorization period (FY2014-2018), the Senate bill contains a total of $880 million in new mandatory funding and authorizes $1.140 billion to be appropriated for the various farm bill renewable energy programs. In contrast, H.R. 2642 contains no mandatory funding for these programs, while authorizing $1.405 billion over the five years, subject to annual appropriations.

In addition, the House bill eliminates all support for the collection, harvest, storage, and transportation (CHST) component of BCAP, severely limiting its potential effectiveness as an incentive to produce cellulosic feedstocks.

Farm Bill Title X, Horticulture

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The horticulture titles of S. 954 and H.R. 2642 reauthorize many of the existing farm bill provisions supporting farming operations in the specialty crop and certified organic sectors. CBO estimates a total increase in mandatory spending of $197 million (FY2014-FY2018) for Title X in the Senate-passed bill and $279 million in the House-passed bill. Many Title X provisions fall into the categories of marketing and promotion; organic certification; data and information collection; pest and disease control; food safety and quality standards; and local foods. The House bill also includes provisions that are not in the Senate bill that would provide exemptions from certain regulatory requirements under some laws, such as the Federal Insecticide, Fungicide, and

Rodenticide Act, the Clean Water Act, and the Endangered Species Act. (Neither bill includes a provision that was in last year’s House version of the farm bill (H.R. 6083) that would have significantly changed the deregulation process of genetically engineered plants.)

Provisions affecting the specialty crop and certified organic sectors are not limited to the

Horticulture title, but are contained within several other titles of the farm bill. These include programs in the research, nutrition, and trade titles, among others. Both the House and Senate bills reauthorize (and in some cases provide for increased funding for) several key programs benefitting specialty crop producers, including the Specialty Crop Block Grant Program, plant pest and disease programs, USDA’s Market News for specialty crops, the Specialty Crop

Research Initiative (SCRI), and also the Fresh Fruit and Vegetable Program (Snack Program) and

Section 32 purchases for fruits and vegetables under the Nutrition title. Both bills also reauthorize most programs benefitting certified organic agriculture producers, including continued support for USDA’s National Organic Program (NOP) and development of crop insurance mechanisms for organic producers, Organic Production and Market Data Initiatives (ODI), and research programs such as the Organic Agriculture Research and Extension Initiative (OREI) and the

Organic Transitions Program (ORG) under the Integrated Research, Education, and Extension

Competitive Grants Program. Both bills would give USDA authority to consider an application for a research and promotion order (or “checkoff” program) by the organic sector. One exception is that the House bill would repeal the National Organic Certification Cost Share Program

(NOCCSP), while the Senate would maintain that program.

Programs in other farm bill titles benefitting specialty crop and certified organic producers also include the Value-Added Producer Grant Program, Technical Assistance for Specialty Crops

(TASC), the Market Access Program (MAP), and most conservation programs (including

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This section was written by Renée Johnson, Specialist in Agricultural Policy.

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assistance specifically for organic producers), among other programs, within the crop insurance, credit, and miscellaneous titles. Horticulture and other titles in both the House-and Senate-passed bills also include provisions that would expand opportunities for local food systems and also beginning farmers and ranchers. Other provisions supporting local food producers are within the research, nutrition (Senate bill only), and rural development titles, among others.

Farm Bill Title XI, Crop Insurance

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Both the House-passed (H.R. 2642) and the Senate-passed (S. 954) 2013 farm bills increase funding for crop insurance relative to baseline levels by an additional $5.0 billion over 10 years in the Senate bill and $8.9 billion in the House bill. The crop insurance title modifies the existing federal crop insurance program, which is permanently authorized by the Federal Crop Insurance

Act. The federal crop insurance program makes available subsidized crop insurance to producers who purchase a policy to protect against individual farm losses in yield, crop revenue, or whole farm revenue. More than 100 crops are insurable.

With cotton not covered by the counter-cyclical price or revenue programs established in Title I of both bills, a new crop insurance policy called Stacked Income Protection Plan (STAX) is made available in both bills for cotton producers. The STAX policy indemnifies losses in county revenue of greater than 10% of expected revenue but not more than the deductible level (e.g.,

25%) selected by the producer for the underlying individual policy (or not more than 30% if used as stand-alone policy). Similarly, for other crops, both bills make available an additional policy

(i.e., not stand-alone) called Supplemental Coverage Option (SCO), based on expected county yields or revenue, to cover part of the deductible under the producer’s underlying policy (referred to as a farmer’s out-of-pocket loss or “shallow loss”). The farmer subsidy as a share of the policy premium is set at 80% for STAX and 65% for SCO.

Additional crop insurance changes in both bills are designed to expand or improve crop insurance for other commodities, including specialty crops. Provisions in both bills revise the value of crop insurance for organic crops to reflect prices of organic (not conventional) crops. The bills require

USDA to conduct more research on whole farm revenue insurance with higher coverage levels than currently available. Studies are also required on insuring (1) specialty crop producers for food safety and contamination-related losses, (2) swine producers for a catastrophic disease event,

(3) producers of catfish against reduction in the margin between the market prices and production costs, (4) commercial poultry production against business disruptions caused by integrator bankruptcy, (5) poultry producers for a catastrophic event, and (6) producers of biomass sorghum or sweet sorghum grown as feedstock for renewable energy. (In the Senate bill, an adopted floor amendment requires a study for alfalfa insurance.) A peanut revenue insurance product also is mandated. A provision in S. 954 makes payments available to producers who purchase privatesector index weather insurance, which insures against specific weather events and not actual loss.

For conservation purposes, a provision in Title XI of S. 954 reduces crop insurance subsidies and noninsured crop disaster assistance for the first four years of planting on native sod acreage. The same provision in the House bill would apply only to the Prairie Pothole National Priority Area

(i.e., portions of Iowa, Minnesota, Montana, North Dakota, and South Dakota). In Title II of the

Senate bill only (§2609), crop insurance premium subsidies are available only if producers are in

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This section was written by Dennis A. Shields, Specialist in Agricultural Policy.

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compliance with wetland conservation requirements and conservation requirements for highly erodible land.

In the 2012 farm bill passed by the Senate in the 112th Congress, an amendment was adopted during floor debate to reduce crop insurance premium subsidies by 15 percentage points for producers with average adjusted gross income greater than $750,000. In 2013, the Senate

Agriculture Committee-reported version of S. 954 did not include the provision, but an amendment to S. 954 requiring the subsidy reduction was adopted on the Senate floor by a vote of

59-33. Also in Senate floor action, an amendment to provide mandatory funding of $5 million to maintain crop insurance program integrity was adopted, and an amendment to eliminate premium subsidies for tobacco crop insurance was defeated. The House bill requires the U.S. Government

Accountability Office (GAO) to conduct a study regarding fraudulent claims filed, and benefits provided under the crop insurance program.

Farm Bill Title XII, Miscellaneous

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Title XII includes provisions that cover three areas: socially disadvantaged and limited-resource producers; livestock; and other miscellaneous. In addition, the House bill includes a fourth area covering the Chesapeake Bay.

Both bills extend authority for outreach and technical assistance programs for socially disadvantaged farmer and ranchers, and create a research center to develop policy recommendations for socially disadvantaged farmers and ranchers. They also add military veteran farmers and ranchers as a qualifying group. Both bills reauthorize funding for the USDA Office of Advocacy and Outreach, which assists socially disadvantaged and veteran farmers and ranchers. The House bill includes a provision to amend a transparency and accountability law to automatically provide receipts for service or denial of service to socially disadvantaged farmers and ranchers.

The livestock provisions of both proposals renew the trichinae certification and aquatic animal health programs that were established in the 2008 farm bill; establish an animal health laboratory network; and require USDA to continue to administer the avian influenza surveillance program through the National Poultry Improvement Plan.

The Senate bill establishes a grant program for research on brucellosis, bovine tuberculosis, and other priority animal diseases; sets up a grant program to study the eradication of feral swine; and establishes a competitive grant program to improve the sheep industry. The House bill does not contain these three provisions, and furthermore, repeals the National Sheep Industry

Improvement Center.

The livestock section of H.R. 2642 includes provisions to repeal regulations on livestock and poultry practices that USDA finalized in December 2011, and prevents USDA from finalizing or

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This section was written by Joel L. Greene, Analyst in Agricultural Policy (animal agriculture). Other contributors to the Title XII side-by-side are Tadlock Cowan, Analyst in Natural Resources and Rural Development (socially disadvantaged farmers); Jim Monke, Specialist in Agricultural Policy (USDA data collection); Claudia Copeland,

Specialist in Resources and Environmental Policy (EPA); Harold F. Upton, Analyst in Natural Resources Policy (ocean and fisheries policy); Jonathan L. Ramseur, Specialist in Environmental Policy (spill prevention); Nicole T. Carter,

Specialist in Natural Resources Policy (water resources); and Dennis A. Shields, Specialist in Agricultural Policy

(Noninsured Assistance Program).

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implementing similar rules; and repeals the 2008 farm bill provision that transferred the inspection of catfish to USDA from the Food and Drug Administration. The bill also requires that

USDA submit three livestock-related reports to Congress. The first is an economic analysis of the impact of the country-of-origin labeling (COOL) law and the rule that USDA proposed in March

2013 to bring the United States into compliance with World Trade Organization rules; the second, an economic analysis of the economic impact of fraud and mislabeling on wild and farm raised seafood; and last, a report on bovine tuberculosis in Texas.

The other miscellaneous provisions of S. 954 and H.R. 2642 make available higher coverage levels under the Noninsured Crop Assistance Programs, prohibit attendance at animal-fighting events, include clarifications of conditions for releasing data gathered by USDA to state or local government agencies, include an increase in administrative expenses for three regional development commissions that were established by the 2008 farm bill, and include grants to promote the U.S. maple syrup industry and for technological training for farm workers. Both bills establish a military veterans agricultural liaison within USDA to advocate for and to provide information to veterans, and establish an Office of Tribal Relations to coordinate USDA activities with Native American tribes.

Provisions in S. 954 that are not in H.R. 2642 include the establishment of a Pima Cotton Trust

Fund and an Agriculture Wool Apparel Manufacturers Trust Fund for users of pima cotton and wool, and a Citrus Disease Research and Development Trust Fund for research on citrus disease.

Other miscellaneous provisions in H.R. 2642, but not in S. 954, are the High Plains Water Study, which preserves 2013 farm bill benefits for participants in the study; flood protection for the

Missouri River basin; flood protection for agricultural interests in the Wallkill River and Black

Dirt region; prohibitions on closing Farm Service Agency (FSA) offices with high workloads; and a prohibition on FSA employees keeping GSA-leased cars overnight. H.R. 2642 includes an interstate commerce provision that prohibits states from imposing production standards on agricultural products from other states, a provision to ensure high standards for agencies’ use of scientific information, and a provision that sunsets all discretionary programs when the farm bill expires.

Four provisions are directed at the Environmental Protection Agency (EPA). The first provision requires a regulatory review and economic impact statement from USDA on EPA proposals that significantly impact agricultural entities; the second amends EPA’s spill prevention, control, and countermeasure rule; the third prohibits EPA from disclosing producer information; and the last provides EPA permit exemptions for certain silviculture activities.

H.R. 2642 includes provisions to protect honey bees and other pollinators, promote urban agriculture, improve consideration of the impact of regulations on small businesses, and provide technical assistance on produce misidentified as grown in the United States. There are two sense of Congress provisions: one is on increased opportunities for black farmers, women, minorities, and small businesses, and the other on the importance of chemicals in production agriculture.

H.R. 2642 requires that three reports be submitted to Congress. The Secretary of State is to submit a report on water sharing between the United States and Mexico; the Secretary of Health and Human Services is required to submit a scientific and economic analysis of the Food Safety

Modernization Act (21 U.S.C. 2201 et seq.); and the Inspector General of USDA is to submit a report on the activities and resources expended on ocean policy.

Congressional Research Service 19

The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

The fourth area of Title XI of H.R. 2642 includes a provision that requires OMB to prepare and report to Congress an interagency cross-cut budget on federal and state activities on restoring the

Chesapeake Bay. The provision also directs EPA to develop a plan to provide technical and financial assistance to Chesapeake Bay states in carrying out watershed restoration. The Senate bill does not include these provisions.

Congressional Research Service 20

Provisions of the Senate- and House-Passed Versions of the 2013 Farm Bill

Compared with Current Law

Title I. Commodity Programs

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

Direct Payments

Direct payments (DPs) are available to producers on farms with base acres (historical plantings) of covered commodities (wheat, corn, grain sorghum, barley, oats, upland cotton, rice, soybeans, and other oilseeds). [7 U.S.C. 8713]

Covers 2008-2013 crop years. Direct payment rates are fixed in statute [7 U.S.C. 7913(b)] and do not vary based on market price. Payment amount = direct payment rate, times 85% of base acres [7 U.S.C. 7911], times direct payment yield

[7 U.S.C. 7912]. (Exception: payment acreage is

83.3% of base acres for crop years 2009-2011.)

Direct payments for peanuts authorized separately.

[7 U.S.C. 8753]

Price-Based Payments

Counter-cyclical payments (CCPs) are available for same commodities as for direct payments plus pulse crops. [7 U.S.C. 8714] Covers

2008-2013 crop years. Payment rate is difference between target price in statute (see below) and national average market price (or loan rate, if higher), minus the direct payment rate. Countercyclical payments for peanuts authorized separately.

[7 U.S.C. 8754(a)(1)-(3)]

Repeals direct payments. [Sec. 1101]

Repeals counter-cyclical payments. [Sec. 1102]

Establishes program for adverse market payments

(AMP) for crop years 2014-2018 for the same crops as those covered by CCPs (except upland cotton). Payment rate is the difference between the reference price and the 12-month national average market price (or loan rate, if higher), Covered commodities are wheat, corn, grain sorghum, barley, oats, long grain rice, medium grain rice, pulse crops (dry peas, lentils, small chickpeas, and large chickpeas), soybeans, other oilseeds, and peanuts.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill, except payments for upland cotton continue for crop years 2014 and 2015 with payment acres equal to 70% of base acres in 2014 and

60% in 2015. [Sec. 1101]

Repeals counter-cyclical payments. [Sec. 1102]

Establishes Price Loss Coverage (PLC) for producers of commodities covered by CCPs except upland cotton.

Covers 2014 crop year and each succeeding crop year.

Payment rate is difference between reference price and national midseason market price (or loan rate, if higher).

USDA shall submit to Congress an annual report that evaluates the impact of PLC (and RLC below) on plantings, production, prices, and program costs. [Sec. 1104-1107]

CRS-21

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

Target prices for 2013:

Cotton is not covered under AMP but is eligible for the

Stacked Income Protection Plan (STAX) for producers of upland cotton (see Title XI). USDA is required to consider popcorn as a covered commodity. [Sections

1104-1107]

Reference prices:

Wheat, bu., $4.17

Corn, bu., $2.63

Grain sorghum, bu., $2.63

Barley, bu., $2.63

Oats, bu., $1.79

Upland cotton, lb., $0.7125

Long grain rice, cwt., $10.50

Long grain rice, cwt., $13.30

Medium grain rice, cwt., $13.30

Peanuts, ton, $523.77

All other covered commodities: 55% times the average national marketing year average price for the most recent 5 crop years, excluding each of the crop years with the highest and lowest prices.

Medium grain rice, cwt., $10.50

Soybeans, bu., $6.00

Other oilseeds, cwt., $12.68

Dry peas, cwt., $8.32

Lentils, cwt., $12.81

Small chickpeas, cwt., $10.36

Large chickpeas, cwt., $12.81

Peanuts, ton, $495

Payment amount = Payment rate times 85% of base acres times counter-cyclical program yield for the farm (generally based on 1998-2001 data). [7

U.S.C. 7912]

Payment amount = Payment rate times 85% of base acres planted to crop times existing counter-cyclical program yield (for rice and peanuts, yields may be updated with 2009-2012 data). Base acres for peanuts

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Reference prices:

Wheat, bu., $5.50

Corn, bu., $3.70

Grain sorghum, bu., $3.95

Barley, bu., $4.95

Oats, bu., $2.40

Upland cotton, none (covered by STAX program Title XI)

Long grain rice, cwt., $14.00

Medium grain rice, cwt., $14.00

(for rice, price is increased 15% for temperate japonica rice)

Soybeans, bu., $8.40

Other oilseeds, cwt., $20.15

Dry peas, cwt., $11.00

Lentils, cwt., $19.97

Small chickpeas, cwt., $19.04

Large chickpeas, cwt., $21.54

Peanuts, ton, $535

Payment amount = Payment rate times 85% of total acres planted to crop (and 30% of acres of “prevented plantings”) times existing counter-cyclical program yield

(or updated yields equal to 90% of 2008-2012 average

CRS-22

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

may be updated using 2009-2012 plantings.

Payment is made on or after October 1 following the completion of the marketing year.

Revenue-Based Payments

For covered commodities and peanuts, Average

Crop Revenue Election (ACRE) payments are available to producers as an alternative to CCPs.

Revenue payment based on a two-part trigger: (1) if actual state revenue is less than a guaranteed state level for the commodity, and (2) if actual farm revenue is less than a farm ACRE benchmark for the commodity. Payment amount equals the product of (1) the lesser of (a) the ACRE program guarantee minus actual state revenue or (b) 25% of the ACRE program guarantee, times (2) 83.3% (for crop years 2009-2011) or 85% (2012-2013) of the acreage planted of the covered commodity (not to exceed base acres of the commodity), times (3) the

5-year Olympic average farm yield divided by the 5year Olympic average state yield (Olympic average drops lowest and highest year). For producers who participate in ACRE, loan rates under the marketing assistance loan program are reduced 30% and direct payments are reduced by 20%. [7 U.S.C.

8715]

Repeals Average Crop Revenue Election (ACRE) program. [Sec. 1103]

Establishes Agriculture Risk Coverage (ARC) program for crop years 2014-18 for the same crops as covered by AMP, and payment is made in addition to

AMP. For ARC, producers select either farm or county option. The election is a one-time, irrevocable decision applicable to all acres under the operational control of the producers. [Sections 1104, 1105, 1108, 1110]

Payments made on planted (or prevented from being planted) acres when actual crop revenue (actual yield times higher of national farm price or reference price) drops below 88% of the benchmark revenue (see below).

Per-acre payment rate equals the difference between per-acre guarantee (88% times benchmark revenue) and actual revenue. Maximum payment rate is 10% of benchmark revenue per acre. For benchmark revenue, farmer can elect either a farm option or county option:

(1) Farm level: 5-year farm yield times 5-year average national price (averages exclude highest and lowest years). Payment equals difference between the per-acre guarantee and actual per-acre revenue times 65% of eligible planted acres (and 45% of prevented-planted acreage), or

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

yield per planted acre). Payment acres cannot exceed farm base acres.

Payment is made on or after October 1 following the completion of the marketing year.

Repeals Average Crop Revenue Election (ACRE) program.

[Sec. 1103]

Establishes Revenue Loss Coverage (RLC) as an alternative to PLC for 2014 crop year and each succeeding crop year for the same crops as those under PLC.

Farmers make a one-time, irrevocable election on a commodity-by-commodity and farm-by-farm basis to receive RLC payment instead of PLC. The program is similar to ARC but provides for only a county revenue guarantee (i.e., no farm-level option). [Sections 1104--

1107]

Revenue loss trigger (guarantee) is based on 85% of historical revenue (compared with 88% in S. 954). Actual county revenue is actual county yield times the higher of the midseason price or the loan rate.

No farm option available,

CRS-23

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

(2) County level: 5-year county yield times 5-year average national price (averages exclude highest and lowest years). Payment equals the difference between the per-acre guarantee and actual per-acre revenue times

80% of eligible planted acres (and 45% of prevented plantings).

No comparable provision.

Nonrecourse Marketing Loans and Other Recourse Loans

Nonrecourse marketing loans are available for any amount of a loan commodity (see list below) produced in crop years 2008-2013. [7 U.S.C.

8731] Nonrecourse marketing loans for peanuts are authorized separately. [7 U.S.C. 8757]

For peanuts, nonrecourse marketing loans available in crop years 2008-2013. May be obtained through marketing cooperative or association approved by

Generally continues current law to cover 2014-2018 crop years for all loan commodities (including peanuts).

[Sec. 1201]

Payment is made on 85% of planted acres and 30% of prevented planted acres.

Separate guarantees are to be calculated for irrigated and nonirrigated crops and differentiated by class of sunflower seeds, barley (using malting prices), and wheat.

Eligible program acres cannot exceed average total acres planted (or prevented from being planted) to covered commodities and upland cotton on the farm during 2009-

2012.

Payment is made on or after October 1 following the completion of the marketing year.

In combination with AMP/ARC, producers may purchase an additional insurance policy called Supplemental

Coverage Option (SCO) under Title XI (crop insurance).

No comparable provision.

For all crops, reference prices (see PLC) are used as minimum prices in the revenue guarantee.

Separate guarantees are to be calculated for irrigated and nonirrigated crops.

Payment acres capped at total farm base acres,

Payment is made on or after October 1 following the completion of the marketing year.

Supplemental Coverage Option (SCO) is not available in combination with RLC but may be purchased with PLC.

The total amount of PLC and RLC payments during

FY2014-2020 shall not exceed $16,956.5 million. If necessary, individual producer payments will be reduced to avoid exceeding program cap. [Sec. 1107(e)]

Identical to the Senate bill except applies to 2014 crop and each succeeding annual crop. [Sec. 1201]

CRS-24

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

USDA. Storage to be provided on a nondiscriminatory basis and under any additional requirements. Payment of peanut storage costs authorized for 2008-2013 crops. [7 U.S.C.

8757(a)(4)-(7)]

Loan commodities and loan rates:

Wheat, per bushel (bu.), $2.94 ($2.75 in 2008,

2009)

Corn, bu., $1.95

Grain sorghum, bu., $1.95

Barley, bu., $1.85

Oats, bu., $1.33

Upland cotton, lb., $0.52

Extra-long staple (ELS) cotton, lb., $0.7977

Long grain rice, hundredweight (cwt.), $6.50

Medium grain rice, cwt., $6.50

Soybeans, bu., $5.00

Other oilseeds, cwt., $10.09 ($9.30 in 2008, 2009)

Dry peas, cwt., $5.40 ($6.22 in 2008)

Lentils, cwt., $11.28 ($11.72 in 2008)

Small chickpeas, cwt., $7.43

Large chickpeas, cwt., $11.28 (not applicable in

2008)

Graded wool, lb., $1.15 ($1.00 in 2008, 2009)

Nongraded wool, lb., $0.40

Mohair, lb., $4.20

Honey, lb., $0.69 ($0.60 in 2008, 2009)

[7 U.S.C. 8732 (a)(b)(c)]

Peanuts, ton, $355 [7 U.S.C. 8757(b)]

Establishes a single loan rate in each county for each kind of “other oilseeds” [7 U.S.C. 8732(d)]

Loan commodities same as current law. [Sec. 1201]

For 2014-2018 crop years, loan rates same as current law except for upland cotton. The loan rate for upland cotton is changed from $0.52 per lb. to the simple average of the adjusted prevailing world price for the two immediately preceding marketing years, but not less than

$0.45 per pound or more than $0.52 per pound. [Sec.

1202]

Same as current law. [Sec. 1203] Term of loans: 9 months after the day the loan is made; no extensions. [7 U.S.C. 8733] Same term for peanuts. [7 U.S.C. 8757(c)]

Loan repayment: Loans may be repaid at the lesser of (1) the loan rate plus interest, (2) a rate

Same as current law. [Sec. 1204]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 1201]

For 2014 and each succeeding crop year, same as the

Senate bill except the lower bound for the upland cotton loan rate is $0.47 per pound. [Sec. 1202]

Identical to the Senate bill. [Sec. 1203]

Identical to the Senate bill. [Sec. 1204]

CRS-25

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

based on average market prices during the preceding 30-day period, or (3) a rate determined by USDA that will minimize forfeitures, accumulation of stocks, storage costs, market impediments, and discrepancies in benefits across states and counties. Excludes upland cotton, rice,

ELS cotton, confectionery and each other kind of sunflower seed (other than oil sunflower seed). [7

U.S.C. 8734(a)] Provides USDA authority to temporarily, and on a short-term basis only, adjust the repayment rates in the event of a severe disruption to marketing, transportation or related infrastructure. [7 U.S.C. 8734(h)] Similar provisions for peanuts. [7 U.S.C. 8757(d)]

For upland cotton, long grain rice, and medium grain rice, repayment may be at the lesser of the loan rate plus interest, or the prevailing world price for the commodity adjusted to U.S. quality and location. [7 U.S.C. 8734(b)]

For ELS cotton, repayment must be at the loan rate plus interest. [7 U.S.C. 8734(c)]

For confectionery and other kinds of sunflower seeds (other than oil sunflower seed), loans must be repaid at the lesser of (1) the loan rate plus interest, or (2) the repayment rate for oil sunflower seed. [7 U.S.C. 8734(f)]

For 2008-2011 crop years, USDA provides cotton storage payments at the same rates as provided for the 2006 crop, but reduced by 10%. Beginning with

2012 crop year, the rates are reduced by 20%. [7

U.S.C. 8734(g)]

Loan deficiency payments (LDP) are available to producers who agree to forego marketing loans.

LDP computed by multiplying the payment rate (the amount that the loan rate exceeds the rate at

Payments reauthorized for 2014-2018 crop years with

20% rate reduction. [Sec. 1204]

For 2014-2018 crop years, same as current law. [Sec.

1205]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Payments reauthorized for 2014 crop year and each succeeding crop year; rate reduction is 10%. [Sec. 1204]

For 2014 and each succeeding crop year, same as the

Senate bill. [Sec. 1205]

CRS-26

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

which a marketing loan may be repaid) for the commodity times the quantity of the commodity produced. Loan deficiency payments available for unshorn pelts or hay and silage, even though they are not eligible for marketing loans. ELS cotton is not eligible. Payment rates determined using the rate in effect as of the date that producers request payment (producers do not need to lose beneficial interest). [7 U.S.C. 8735] Same provision for peanuts. [7 U.S.C. 8757(e)]

Payments in lieu of LDP for grazed acreage of wheat, barley, oats, or triticale. [7 U.S.C. 8736]

For 2014-2018 crop years, same as current law, except payment is based on yield used for Agriculture Risk

Coverage. [Sec. 1206]

Provisions not extended.

Special marketing loan provisions for upland

cotton impose a special import quota on upland cotton through July 31, 2013, when price of U.S. cotton, delivered to a definable and significant international market, exceeds the prevailing world market price for 4 weeks. [7 U.S.C. 8737(a)]

Limited global import quota is imposed on upland cotton when U.S. prices average 130% of the previous 3-year average of U.S. prices [7 U.S.C.

8737(b)]

Economic adjustment assistance to users of

upland cotton provides assistance to domestic users of upland cotton for uses of all cotton regardless of origin to acquire, construct, install, modernize, develop, convert, or expand land, plant, buildings, equipment, facilities, or machinery. Rate was 4¢/lb. between August 1, 2008, and July 31,

2012, and declined to 3¢/lb. effective beginning

August 1, 2012. [7 U.S.C. 8737(c)]

Special competitiveness program for ELS

cotton provides payments to domestic users and exporters whenever the world market price for the

Same as current law. [Sec. 1207]

Same as current law through July 31, 2019. [Sec. 1208]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

For 2014 and each succeeding crop year, same as the

Senate bill, except payment is based on yield used for

Price Loss Coverage. [Sec. 1206]

Provisions extended without an expiration date beginning

August 1, 2014. [Sec. 1207]

Same as Senate bill except assistance begins August 1,

2013. [Sec. 1207]

Same as the Senate bill except program continues without an expiration date. [Sec. 1208]

CRS-27

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

lowest priced ELS cotton is below the prevailing

U.S. price for a competing growth of ELS cotton for a 4-week period; and the lowest priced competing growth of ELS cotton is less than 134% of the loan rate for ELS cotton. Effective through July 31, 2013.

[7 U.S.C. 8738]

Recourse loans for high moisture feed grains

and seed cotton are available for farms that normally harvest corn or sorghum in a high moisture condition at rates set by the USDA. For recourse loans for seed cotton, repayment is at loan rate plus interest. [7 U.S.C. 8739]

Adjustments of loan rates are authorized for any commodity (other than cotton) based on differences in grade, type, quality, location, and other factors. Allows county loan rates as low as

95% of the U.S. average, if it does not increase outlays; prohibits adjustments that would increase the national average loan rate. For cotton, loan rates may be adjusted for differences in quality factors. [7 U.S.C. 8740]; [7 U.S.C. 8758] for peanuts.

Conservation Compliance/Producer Agreement

For 2014-2018 crop years, same as current law. [Sec.

1209]

Same as current law. [Sec. 1210]

Eligibility for direct payments, counter-cyclical payments, or average crop revenue election payments requires producers to comply with conservation, wetland, and planting flexibility requirements; use base acres for agricultural or conserving use, and not for nonagricultural commercial, industrial, or residential use; control noxious weeds and maintain sound agricultural practices. Producers must submit annual acreage reports for all cropland on the farm. [7 U.S.C.

8716 (a)] Same provision for peanuts. [7 U.S.C.

8755(a)] Under Title II (Conservation) of the 2008

Same as current law, with application to the new Adverse

Market Payment (AMP) and Agriculture Risk Coverage

(ARC) programs [Sec. 1109] and continued compliance requirement to receive benefits under the marketing assistance loan program. [Sec. 1201]

To receive ARC payments, producer must annually report data on production in addition to acreage. The

Secretary is to use data reported by the producer for crop insurance requirements to meet obligations for program payments without additional submissions to

USDA. [Sec. 1109]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

For 2014 and each succeeding crop year, same as the

Senate bill. [Sec. 1209]

Nearly identical to the Senate bill except removes certain mandatory provisions to quality adjustments. [Sec. 1210]

Same as Senate bill, with application to Price Loss

Coverage (PLC) and Revenue Loss Coverage (RLC).

House bill excludes requirement for production reports and use of crop insurance data. [Sec. 1108]

CRS-28

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

farm bill (P.L. 110-246), benefits under the marketing loan program are subject to conservation compliance for highly erodible land [16 U.S.C.

3811(a)(1)(A)] and for Swampbuster [16 U.S.C.

3812(a)(1)].

See also Title II Conservation, whereby in order to receive crop insurance premium subsidies, a producer must be in compliance with highly erodible land conservation requirements and wetland requirements.

[Sec. 2609]

Supplemental Agricultural Disaster Assistance (Funding expired on 9/30/11)

Beginning in 2008, five new disaster programs were authorized and funded for disasters occurring on or before 9/30/11. [7 U.S.C. 1531] Program funding derived from a transfer of 3.08% of annual customs receipts to the newly created Agricultural Disaster

Relief Trust Fund. [19 U.S.C. 2497(a)] Under P.L.

112-240, all but SURE (below) reauthorized (but not funded) for FY2012 and FY2013.

The five programs: (1) Supplemental Revenue

Assistance (SURE) Payments for crops (not just farm program crops); compensates producers for a portion of losses that are not eligible for an indemnity payment under a crop insurance policy;

(2) Livestock Indemnity Program (LIP), which compensated ranchers at a rate of 75% of market value for livestock mortality caused by a disaster;

(3) Livestock Forage Disaster Program (LFP) for grazing losses due to qualifying drought conditions

(as determined by the U.S. Drought Monitor report) or fire on rangeland managed by a federal agency, with monthly payments equal to 60% of estimated feed costs; (4) Emergency Assistance for

Livestock, Honeybees, and Farm-Raised Catfish

SURE is not reauthorized. Other four programs are reauthorized retroactively with mandatory funding from the Commodity Credit Corporation for FY2012 through

FY2018. [Sec. 1501]

LIP payment rate is reduced from 75% to 65% of the market value of livestock.

For LFP, payment is triggered by eligible forage losses, which may be determined by either (1) drought conditions as measured by the U.S. Drought Monitor report, or (2) low precipitation (at least 50% below normal level in a county during a calendar year). The monthly payment rate is equal to 50% of estimated feed costs. Coverage continues for losses due to fire on public rangeland. LFP is to serve as the sole source of livestock forage assistance, combining the livestock forage assistance functions of ELAP and the noninsured crop disaster assistance program (NAP). Producers may also receive assistance for eligible forage losses that occur due to weather-related conditions other than drought or fire.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

Same as Senate bill, except programs are authorized and funded without an expiration date. [Sec. 1501]

LIP payment rate remains at 75%.

For LFP, retains program language in 2008 farm bill. In certain cases, farm payment amount is increased compared with program established in 2008 farm bill. For example, an eligible livestock producer that owns or leases grazing land or pastureland that is physically located in a county that is rated as having at least a D3 (extreme drought) intensity in any area of the county at any time during the normal grazing period for the county is eligible to receive assistance equal to 3 monthly payments compared with 2 monthly payments under the 2008 farm bill.

CRS-29

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

(ELAP), which provided up to $50 million annually to compensate producers for disaster losses not covered under other disaster programs; and (5)

Tree Assistance Program (TAP), which provided payments to eligible orchardists and nursery growers to cover 70% of the cost of replanting trees or nursery stock and 50% of the cost of pruning/removal following a natural disaster.

Maximum payments set at $100,000 per person per year for first four programs combined. TAP has a separate limit of $100,000.

Maximum funding for ELAP is $15 million annually.

TAP payment rate for replanting is reduced from 70% to

65%.

Retains the combined $100,000 per person payment limit for LIP, LFP, and ELAP. Retains the separate limit of

$100,000 for TAP.

No comparable provision. No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Maximum funding for ELAP is $20 million annually.

Same as Senate bill.

Combined payment limit of $125,000 per person for LIP,

LFP, and ELAP. Separate limit of $125,000 for TAP.

Sugar Program

Price Support and Supply Management

Requires USDA to the maximum extent practicable to operate the sugar nonrecourse loan program at no net cost by avoiding loan forfeitures to the CCC

(i.e., no outlays recorded). [7 U.S.C. 7272 (f), 7

U.S.C. 1359bb (b)(1), 7 U.S.C. 1359cc (b)] USDA is directed to maintain market prices above loan rates by (1) limiting amount of sugar that processors of sugar beets and sugarcane sell to the

U.S. market under marketing allotments, (2) restricting imports under a quota (see below), and

(3) operating the feedstock flexibility program for bioenergy producers (i.e., sugar-to-ethanol program) under specified conditions, . [7 U.S.C.

1359aa et seq., 7 U.S.C. 8110]

Continues all features of the current program and maintains loan rates (18.75¢/lb. for raw cane sugar;

24.09¢/lb. for refined beet sugar) through the 2018 crop year. [Sec. 1301] Continues the feedstock flexibility program (i.e., sugar-to-ethanol program) through the

2018 crop year. [See Sec. 9008 in Title IX -Energy]

Establishes a National Drought Council within USDA to develop a comprehensive National Drought Policy Action

Plan for delineating and integrating responsibilities among federal agencies for drought preparedness, mitigation, research, risk management, training, and emergency relief.

[Sec. 1502]

Same as the Senate bill except program authority continues without an expiration date. [Sec. 1301]

Continues the feedstock flexibility program through the

2018 crop year. [See Sec. 8008]

CRS-30

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102) Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

Increases in stages raw cane sugar loan rate from

18.0¢/lb. in FY2009 to 18.75¢/lb. in FY2012, and refined beet sugar loan rate from 22.9¢/lb. in

FY2009 to 24.09¢/lb. in FY2012. Continues other provisions found in prior law. [7 U.S.C. 7272 (a, b,

c, d, e, g, h, i)]

Limits amount of sugar for food that processors can sell each year (equal to a national “overall allotment quantity” (OAQ) divided between sugarcane and sugar beet sectors, and then allocated to individual processors). Requires USDA each year to set the OAQ at not less than 85% of estimated U.S. human consumption. [7 U.S.C.

1359aa-1359jj, 1359ll]

Import Quotas

For each marketing year, requires USDA by

October 1 to set the initial sugar import quota at

1.256 mill. short tons – the minimum spelled out in a U.S. multilateral trade commitment to other

World Trade Organization member countries.

Stipulates that this quota can only be raised before the midpoint of the year (April 1) in case of an emergency sugar shortage caused by a weather disaster, war, or a similar event determined by the

Secretary, and specifies the steps that must be followed to increase imports in the event of such a shortage. For each marketing year, grants USDA discretionary authority to increase the sugar quota beginning on April 1. [7 U.S.C. 1359 kk]

Dairy Programs

Repeal or Reauthorization of Dairy Programs

Dairy Product Price Support Program.

Mandates the direct support of cheese, nonfat dry milk, and butter at specified prices for five years

Same as current law.

Repealed. [Sec. 1471(a)]

CRS-31

Same as current law.

Identical to the Senate bill. [Sec. 1411(a)]

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

(through December 31, 2012). Specifies minimum purchase prices of: block cheese, $1.13/lb.; barrel cheese, $1.10/lb.; butter, $1.05/lb.; and nonfat dry milk, $0.80/lb (same levels previously used to support the farm price of milk at $9.90 per hundred lbs. or hundredweight (cwt.)) Allows

USDA sale of acquired products when market prices rise to 110% of purchase price. Allows reduction of mandated purchase prices when

USDA acquisitions exceed specified levels. Expires on December 31, 2013. [7 U.S.C. 8771]

Milk Income Loss Contract (MILC) Program.

MILC is a counter-cyclical payment program. When the monthly farm price of fluid milk falls below

$16.94/cwt., all dairy farmers are paid an amount equal to 45% of the difference between $16.94 and the lower market price. Payments per farm are limited to 2.985 million lbs. of annual production.

For the month of September 2013, the payment factor and the payment quantity are 34% and 2.4 million pounds, respectively. The $16.94/cwt. threshold price must be adjusted upward whenever feed costs are above $7.35/cwt. Beginning on

September 1, 2013, the Nat’l. Avg. Dairy Feed

Ration Cost trigger rises from $7.35/cwt. to

$9.50/cwt. MILC program expires September 30,

2013. [7 U.S.C. 8773]

Extended temporarily through June 30, 2014, using the

45% rate rather than reverting to the 34% rate for calculating the payment rate. Effective July 1, 2014, MILC is repealed. [Sec. 1471(b)]

Dairy Export Incentive Program. Provides cash bonus payments to U.S. dairy exporters, subject to

World Trade Organization obligations to limit export subsidies. Intended to counter foreign

(mostly EU) dairy subsidies. Expires September 30,

2013. [15 U.S.C. 713a-14]

Repealed. [Sec. 1472]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repealed. [Sec. 1411(b)]

Identical to the Senate bill. [Sec. 1412]

CRS-32

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

Dairy Forward Pricing Program. Authorizes a dairy forward pricing program. Prices paid by milk handlers under the contracts are deemed to satisfy the minimum price requirements of federal milk marketing orders. Applies only to milk purchased for manufactured products (Classes II, III, and IV), and excludes milk purchased for fluid consumption

(Class I). Expires on September 30, 2013.

[7 U.S.C. 8772]

Dairy Indemnity Program. Authorizes payments to dairy farmers when a public regulatory agency directs removal of their raw milk from the market because of contamination by pesticides, nuclear radiation or fallout, or toxic substances and other chemical residues. Expires December 31,

2013. [7 U.S.C. 4501]

Dairy Promotion and Research Program. The

Dairy Producer Stabilization Act of 1983 authorized a generic dairy product promotion, research, and nutrition education program, funded by a mandatory $0.15/cwt assessment on milk produced/marketed in the 48 contiguous states.

Importers in all 50 states, the District of Columbia, and Puerto Rico must also pay an assessment rate of $0.075/cwt. on imported products. Authorizes

USDA to issue regulations on time and method of importer payments. Expires September 30, 2013.

[7 U.S.C. 4504]

Federal Milk Marketing Orders. Federal milk marketing order rules issued by USDA place requirements on the first buyers or handlers of milk, including paying at least minimum prices for the milk depending on its end use. Permanent federal authority to regulate the handling of milk was first provided in the Agricultural Adjustment

Act of 1933, and subsequently revised by the

Extended through FY2018. Allows for new contracts until September 30, 2018, but no contract can extend beyond September 30, 2021. [Sec. 1473]

Extended through FY2018. [Sec. 1474]

Extended through FY2018. [Sec. 1475]

Requires USDA to use a specified pre-hearing procedure to consider alternative formulas for Class III milk product pricing. [Sec. 1462]

Requires USDA to analyze (and report to Congress) the effects of replacing the use of end-product price formulas with other pricing alternatives. [Sec. 1481]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 1413]

Identical to the Senate bill. [Sec. 1414]

Identical to the Senate bill. [Sec. 1415]

No comparable provision.

No comparable provision.

CRS-33

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

Agricultural Marketing Agreement Act of 1937, as amended. FMMOs are established under permanent authority and do not need periodic reauthorization.

[7 U.S.C. 601 et seq]

Federal Milk Marketing Order Review

Commission. As established by the 2008 farm bill

[Sec. 1509], the FMMO Review Commission is mandated to conduct a comprehensive review and evaluation of (1) FMMO system, and (2) non-

FMMO systems.

Provides an option for funding from sources other than annual appropriations. [Sec. 1476]

Dairy Market Transparency

Dairy Product Mandatory Reporting. Dairy

Market Enhancement Act of 2000 requires manufacturers to report to USDA the price, quantity, and moisture content of dairy products sold. The 2008 farm bill (Sec. 1510) authorizes

USDA to establish an electronic reporting system

(subject to available funds), after which increased frequency in mandatory reporting of dairy product sales would be required. Provides for quarterly audits of submitted information and comparison with related dairy market statistics.

[7 U.S.C. 1637b]

Requirements are added that specify a reporting periodicity that is more frequent than once per month.

[Sec. 1461]

Definitions

No comparable provision.

No comparable provision.

Actual Dairy Production Margin: difference between all-milk price and average feed cost. [Sec. 1401(1)]

All-Milk Price: the national average price received, per cwt. of milk, by dairy operations. [Sec. 1401(2)]

No comparable provision. Average Feed Cost: the average price paid for feed used by a dairy operation to produce a cwt. of milk, as determined by the formula—1.0728 x (corn price per bu.) + 0.00735 x (soybean meal price per ton) + 0.0137 x

(alfalfa hay price per ton). [Sec. 1401(4)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repealed. [Sec. 1416]

No comparable provision.

Identical to the Senate bill. Amended Sec. 1511(a)(1) of the enacted 2008 farm bill. [Sec. 1401]

Identical to the Senate bill. Amended Sec. 1511(a)(2).

[Sec. 1401]

Identical to the Senate bill. Amended Sec. 1511(a)(3).

[Sec. 1401]

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Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Calculation of Average Feed Costs: Corn and alfalfa hay prices are monthly prices received as reported by

USDA in Agricultural Prices. The soybean meal price is the monthly price for central Illinois as reported by USDA in

Market News. [Sec. 1402(a)]

Consecutive 2-Month Period: the six 2-month periods of Jan.-Feb., Mar.-Apr., May-June, July-Aug., Sep.-

Oct., and Nov.-Dec. [Sec. 1401(6)]

No comparable provision.

No comparable provision.

Calculation of Actual Dairy Production Margin for

the Production Margin Protection Program: the margin is calculated for each 2-month period as the difference between the 2-month average all-milk price and the 2-month average feed cost. [Sec. 1402b(1)]

Calculation of Actual Dairy Production Margin for

the Dairy Market Stabilization Program: the margin is calculated for each individual month as the difference between the preceding month’s average all-milk price and the preceding month’s average feed cost.

[Sec. 1402b(2)]

Dairy Production Margin Protection Program (DPMPP)

No comparable provision.

No comparable provision.

Dairy Production Margin Protection Program

(DPMPP). Establishes a dairy production margin protection program within 120 days after the effective date. DPMPP has two components: basic margin protection (BMP) and supplemental margin protection

(SMP). [Sec. 1411]

Effective Date: This subtitle shall take effect on

October 1, 2013. [Sec. 1491]

No comparable provision. Duration: The margin protection program ends on

December 31, 2018. [Sec. 1451]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. Amended Sec. 1511(b)(1).

[Sec. 1401]

Identical to the Senate bill. Amended Sec. 1511(a)(4).

[Sec. 1401]

Identical to the Senate bill. Amended Sec. 1511(b)(2).

[Sec. 1401]

No comparable provision.

Dairy Production Margin Protection Program

(DPMPP). Establishes a dairy production margin protection program but is silent on timing. DPMPP includes a single margin insurance program. Amended

Sec. 1511(c) of the enacted 2008 farm bill. [Sec. 1401]

Program Start Date: USDA shall conduct the margin insurance program beginning on October 1, 2013.

Amended Sec. 1511(i). [Sec. 1401]

No comparable provision.

CRS-35

Current Law/Policy—Commodity Programs

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Participation in DPMPP. All dairy producers are eligible to participate. [Sec. 1412(a)]

Timing for Registration: Existing producers must make an election within 15 months after initiation of signup period, whereas new dairy producers must make an election during the one-year period after their first milk is marketed commercially. [Sec. 1412(c)]

Transition from MILC to DPMPP: A dairy operation may elect to remain in MILC during temporary extension through June 30, 2014, or to participate in

DPMPP, but not both. Producers that elect MILC may at any time make a permanent transfer to DPMPP.

[Sec. 1412(d)]

Participation in DPMPP and LGM: A dairy operation may participate in either DPMPP or the

Livestock Gross Margin (LGM) for Dairy Program, but not both [Sec. 1412(f)]

No comparable provision.

No comparable provision.

Retroactive participation: During the period between the effective date and the initiation of program sign-up, a dairy producer may give notice of intent to participate in

DPMPP and may then receive margin insurance retroactive to the effective date, provided he subsequently signs up for DPMPP. USDA is required to publish notice of retroactive margin insurance within 30 days of the effective date. Amended Sec. 1511(c)(4). [Sec. 1401]

No comparable provision. Annual administration fee. An annual administration fee is required for participation in DPMPP as follows:

$100 if (milk production) < 1million (M) lbs.; $250 if 1M lbs. to 5M lbs.; $350 if > 5M lbs. and < 10M lbs.; $1,000 if

> 10M lbs. and < 40M lbs.; and $2,500 if > 40M lbs. This provision also details deposit and use of the fees and conditions for denial of program benefits. [Sec. 1412(e)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Participation in DPMPP. All dairy producers are eligible to participate. Amended Sec. 1511(d)(1).

[Sec. 1401]

Timing for Registration: Existing dairy producers must make an election within one year of enactment, and annually thereafter. New dairy producers must make an election during the 180-day period after their first milk is marketed commercially. Amended Sec. 1511(d)(3).

[Sec. 1401]

No comparable provision. Since MILC is repealed immediately in the House bill, there is no possibility of remaining in MILC; a producer either elects to participate in DPMPP or not.

CRS-36

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

Margin Insurance. Dairy producers are offered an initial choice of BMP and an annual election of SMP as described below.

Basic Margin Protection (BMP). BMP provides margin protection at a $4.00/cwt. level. At sign up, dairy producers make a one-time choice of participating in

BMP for the life of the farm bill. Under BMP, a payment is made to participating dairy operations whenever the 2month average actual dairy production margin (for a defined consecutive 2-month period) is less than

$4.00/cwt. [Sec. 1414]

Supplemental Margin Protection (SMP). A dairy operation participating in BMP may annually purchase additional margin insurance beyond the basic $4.00/cwt. in increments of $0.50/cwt. up to maximum margin coverage of $8.00/cwt. A participating dairy operation also must elect a percentage of SMP coverage equal to not more than 90%, nor less than 25% of the Annual

Production History of the dairy operation. An SMP

payment is triggered whenever the average actual dairy production margin for a 2-month period is less than the

SMP Coverage Level selected by the dairy operation. An

SMP payment, if warranted by market conditions, is in addition to the BMP payment. [Sec. 1415]

Production History. Separate production histories are used for the BMP and SMP programs as follows.

Basic Production History. Under basic margin protection (BMP), the highest annual milk marketings of the dairy operation during any one of the 3 preceding calendar years prior to registration. Special provisions are made for new dairy operations. Once established, the basic production history does not change over succeeding years. [Sec. 1413(a)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Margin Insurance. Dairy producers are offered the annual choice of purchasing margin insurance with coverage levels ranging in $0.50/cwt. increments from a minimum of $4.00/cwt. to a maximum of $8.00/cwt.

A participating producer shall elect a coverage percentage equal to not more than 80%, nor less than 25% of the

Production History of the dairy operation.

Amended Sec. 1511(f). [Sec. 1401]

Production History. The highest annual milk marketings of the dairy operation during any one of the 3 calendar years preceding registration. As long as a producer remains registered, the production history shall be updated annually using the same formula. Special provisions are made for new dairy operations. Amended

Sec. 1511(e). [Sec. 1401]

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Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

Annual Production History. Under supplemental margin protection, the annual production history is the actual milk marketings of the dairy operation during the preceding calendar year. [Sec. 1413(b)]

Special provisions are made for new dairy operations, and for transfer or movement of production history.

[Sec. 1413(d-e)]

Margin Insurance Payment Rate. The BMP

payment rate equals the amount that the margin is below $4.00/cwt. (up to a value of $4.00) and is paid on the lesser of: (80% of the Basic Production History)/6 or the actual quantity of milk marketed during the 2month period. [Sec. 1414]

The SMP payment rate per cwt. is equal to the difference between the selected SPMP coverage level and the greater of either $4.00 or the average margin for the

2-month period.

The total payment equals the SPMP payment rate x the selected coverage % x the lesser of: (SMP production history)/6 or the actual milk marketings during the 2month period. [Sec. 1415(g)]

Producer Premiums. In addition to the annual administration fee for BMP, an annual premium for SMP must be paid equal to the product of the selected coverage %, the annual production history, and the SMP premium rate per cwt. of milk. [Sec. 1415d(1)]

The SMP premium rate schedule varies based on scale of operations and the selected coverage %. For the first

4 million lbs. of milk marketings the premium per cwt. is

$0.01 for $4.50 margin coverage; $0.02 for $5.00; $0.035 for $5.50; $0.045 for $6.00; $0.09 for $6.50; $0.40 for

$7.00; $0.60 for $7.50; and $0.95 for $8.00. In excess of

4 million lbs. the premium per cwt. is: $0.02 for $4.50 margin coverage; $0.04 for $5.00; $0.10 for $5.50; $0.15

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Margin Insurance Payment Rate. A payment is made to participating dairy operations whenever the 2-month average actual dairy production margin is less than the coverage level threshold selected by the producer.

The margin insurance payment rate equals the amount that the margin is below the selected margin coverage level threshold.

The total payment equals the payment rate x the selected coverage % x the lesser of: (production history)/6 or the actual milk marketings during the 2-month period.

Amended Sec. 1511(f). [Sec. 1401]

Producer Premiums. Margin insurance is free at a

$4.00/cwt. coverage on the first 4 million lbs. Otherwise premium rates are nearly identical to the Senate bill—the most notable exception is at the $7.00/cwt. coverage plus slightly higher rates in general on milk marketings above 4 million lbs.

For the first 4 million lbs. of milk marketings the premium per cwt. is $0.00 for $4.00 margin coverage; $0.01 for

$4.50; $0.020 for $5.00; $0.035 for $5.50; $0.045 for

$6.00; $0.09 for $6.50; $0.18 for $7.00; $0.60 for $7.50; and $0.95 for $8.00.

In excess of 4 million lbs. the premium per cwt. is: $0.03 for $4.00; $0.045 for $4.50; $0.066 for $5.00; $0.11 for

CRS-38

Current Law/Policy—Commodity Programs

No comparable provision.

No comparable provision.

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

for $6.00; $0.29 for $6.50; $0.62 for $7.00; $0.83 for

$7.50; and $1.06 for $8.00. [Sec. 1415d(2-3)]

Time for Premium Payments. USDA is instructed to provide more than one method of payment and to use a method that “maximizes dairy operation payment flexibility and program integrity.” [Sec. 1415d(4)]

The SMP premium is pro-rated for new dairy producers and maybe waived in the case of death, retirement, permanent dissolution, or other circumstances as judged by USDA. [1415(e)]

Rules are established for failure of a producer to pay the

BPMP administrative fee or SPMP premium. [Sec. 1416]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

$5.50; $0.185 for $6.00; $0.29 for $6.50; $0.38 for $7.00;

$0.83 for $7.50; and $1.06 for $8.00.

Amended Sec. 1511(f). [Sec. 1401]

Time for Premium Payments. Dairy producers choose between a single annual payment of 100% of the premium made by January 15 of the calendar year, or semi-annual payments of 50% each of the premium value made by January 15 and June 15 of the calendar year.

Amended Sec. 1511(f)(4)(D). [Sec. 1401]

The premium is pro-rated for new dairy producers and may be waived in the case of death, retirement, permanent dissolution, or other circumstances as judged by USDA. Amended Sec. 1511(f)(4)(D). [Sec. 1401]

Participating producers are legally obligated to pay the applicable premium, but the House bill is silent on any enforcement mechanism. Amended Sec. 1511(f)(5)

[Sec. 1401]

Dairy Market Stabilization Program (DMSP)

No comparable provision. Dairy Market Stabilization Program (DMSP).

Establishes a new program applicable for the purpose of balancing the supply of milk with demand (via reduced payments on milk marketings) when operating margins are low or negative. Participation in DMSP is mandatory for all dairy producers that participate in the

DPMPP. The milk marketing volume used for determining dairy payment reductions under the DMSP is formula-based comparing shares of actual milk marketings with the producer’s Stabilization Program

Base. At signup in the DPMPP, participating dairy producers elect the calculation method of the

Stabilization Program Base for their dairy operation as either—(A) the average volume of monthly milk marketings during the 3 preceding months, or (B) the volume of monthly milk marketings for the same month

No comparable provision.

CRS-39

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

in the preceding year. [Sec. 1431] The market stabilization program ends on December 31, 2018. [Sec.

1451]

No comparable provision. DMSP Implementation Threshold. When either

(a) the actual dairy production margin is $6.00/cwt. or less for each of the 2 preceding months, or (b) actual dairy production margin is $4.00/cwt. or less for the preceding one month, then reduced payments on milk marketings under the DMSP are in effect beginning the first day of the month immediately following the threshold trigger as announced by USDA. [Sec. 1432]

However, no payment reduction is made if the dairy operation’s milk marketings are < the applicable percentage of the Stabilization Program Base as described in (A)-(C) of the following provision. [Sec. 1434]

No comparable provision. Calculation of DMSP Payment Reductions. During any month in which the milk payment reductions are in effect, each handler shall reduce milk payments to each participating dairy producer from whom the handler receives milk according to the formula:

(A) Reduction Requirement 1: if the actual dairy production margin per cwt. is < $6.00, but > $5.00 for 2 consecutive months, then payment reductions are based on the greater of: (a) 98% of the Stabilization Program

Base, or (b) 94% of the actual milk marketings for the month;

(B) Reduction Requirement 2: if the actual dairy production margin per cwt. is < $5.00, but > $4.00 for 2 consecutive months, then payment reductions are based on the greater of: (a) 97% of the Stabilization Program

Base, or (b) 93% of the actual milk marketings for the month;

(C) Reduction Requirement 3: if the actual dairy production margin per cwt. is < $4.00 for any one month, then payment reductions are based on the

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

No comparable provision.

CRS-40

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

greater of: (a) 96% of the Stabilization Program Base, or

(b) 92% of the actual milk marketings for the month.

Once the DMSP has been initiated, the largest level of payment reduction required under (A)-(C) shall be continued monthly until the stabilization program is suspended. [Sec. 1434]

No comparable provision.

No comparable provision.

No comparable provision.

Producer Milk Marketing Information. Requires

USDA to establish, by regulation, a process to collect from participating dairy producers and handlers such information as necessary for each month during which

DMSP is in effect. [Sec. 1433]

Use of Funds from Payment Reductions under

DMSP. The funds obtained from reduced payments to dairy producers for their milk marketings shall be remitted to USDA where they shall be used to purchase dairy products for donation to food banks and other programs with an end goal of expanding consumption and building demand for dairy products. USDA shall submit a report at the end of each year to the House and

Senate Agriculture Committees concerning the funds received, expenditures, and the impact of the DMSP.

[Sec. 1435]

Suspension Thresholds of DMSP Payment

Reductions. DMSP is suspended under any of the following market conditions:

(1) the actual dairy production margin is > $6.00/cwt. for 2 consecutive months;

(2) the actual dairy production margin is < $6.00/cwt.

(but > $5.00/cwt.) for 2 consecutive months, but during that same period either (A) the U.S. price for cheddar cheese is > the world price for cheddar cheese, or (B) the U.S. price for nonfat dry milk (NFDM) is > the world price for NFDM;

(3) the actual dairy production margin is < $5.00/cwt.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

No comparable provision.

No comparable provision.

CRS-41

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

(but > $4.00/cwt.) for 2 consecutive months, but during that same period either (A) the U.S. price for cheddar cheese is > 105% of the world price for cheddar cheese, or (B) the U.S. price for NFDM is > 105% of the world price for NFDM; or

(4) the actual dairy production margin is < $4.00/cwt. for

2 consecutive months, but during that same period either

(A) the U.S. price for cheddar cheese is > 107% of the world price for cheddar cheese, or (B) the U.S. price for

NFDM is > 107% of the world price for NFDM.

No comparable provision.

Once DMSP has been suspended, it may not be resumed until at least 2 months have passed (starting on the 1 st day of the following month), and the conditions of Sec.

1432 are met again. [Sec. 1436(b)]

Enforcement. Provisions for enforcing DMSP are specified. [Sec. 1437]

No comparable provision.

No comparable provision.

Audit Requirements. Provisions for auditing participating dairy operations and for ensuring handler compliance in the DMSP are specified. [Sec. 1438]

Study and Report on DMSP. Mandates that the

Office of the Chief Economist, USDA, undertake a study of the impact of the DMSP on both the dairy product value chain and the competitiveness of the U.S. dairy industry in international markets. Study results should be submitted as a report to the House and Senate

Agriculture Committees by December 1, 2017. [Sec.

1439]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

No comparable provision.

No comparable provision.

CRS-42

Current Law/Policy—Commodity Programs

Standard rulemaking procedures generally require federal agencies to issue notices and take comments on proposed rules. [5 U.S.C. 553(b)]

Administrative Provisions

Payment Limitations

Establishes the maximum amount of payments per year to a person or legal entity for the sum of all covered commodities, except peanuts. Peanuts have a separate but equal payment limitation.

—Direct payments: $40,000

—Direct payments under ACRE: $40,000 minus the reduction required for an ACRE participant.

—Counter-cyclical payments: $65,000

—ACRE payments: $65,000 plus the reduction in the limit from the direct payment limit.

—Marketing loan gains/LDP: no limit. [7 U.S.C.

1308 (a)-(d)]

Payments are attributed to a person by accounting for the direct and indirect ownership in any legal entity. Payments made directly to a person are combined with the person’s pro rata share of payments from a legal entity. Payments to a legal

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Establishes a limit on Agriculture Risk Coverage (ARC) and adverse market payments, and reinstates limits on marketing loan gains and LDPs.

—ARC and adverse market payments for the sum of all covered commodities except peanuts: $50,000

—ARC and adverse market payments for peanuts:

$50,000

—Marketing loan gains/LDP for sum of all commodities except peanuts: $75,000

—Marketing loan gains/LDP for peanuts: $75,000 [Sec.

1603]

Continues other payment limit provisions such as direct attribution, with the exception of the definition of active personal management (see below).

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Special Rulemaking Requirements. As reported by the House Agriculture Committee, the DPMPP and DMSP would have been exempt from standard rulemaking procedures. The House Judiciary Committee reported the bill with an amendment that deletes the exemption.

Instead, the Secretary is required to promulgate interim rules (rules issued without prior notice and comment) for the stabilization program within nine months of enactment. The Secretary is authorized (but not required) to issue interim rules for the margin protection program.

Final rules shall be published for both programs within 21 months of enactment. In issuing the interim and final rules for the dairy stabilization program, the Secretary is required to include an assessment of the impact of the two new programs on dairy markets, as specified. [Sec.

1402]

Establishes a limit on all Title I payments, including Price

Loss Coverage and Revenue Loss Coverage payments, marketing loan gains and LDPs, and direct payments made to upland cotton for 2014 and 2015. Combines all covered commodities under one limit.

—All Title I payments for the sum of all covered commodities, including peanuts, $125,000, of which:

—PLC and RLC payments: $50,000

—Marketing loan gains and LDP: $75,000. [Sec. 1603]

Similar to Senate bill, with additional clarification for doubling the limits for spouses, and definitions of legal entitles [Sec. 1603].

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Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

entity cannot exceed the limits above, and are attributed to persons. Attribution of payments to legal entities is traced to four levels of ownership. If a payment has not been allocated to an individual after four levels of ownership, the payment to the first-level entity is reduced on a pro-rata basis. [7

U.S.C. 1308 (e)-(h)]

To be eligible for payments, persons must be

“actively engaged” in farming. Actively engaged, in general, is defined as making a significant contribution of (i) capital, equipment or land, and

(ii) personal labor or active personal management.

Also, profits are to be commensurate with the level of contributions, and contributions must be at risk.

Legal entities can be actively engaged if members collectively contribute personal labor or active personal management. Special classes allow landowners to be considered actively engaged if they receive income based on the farm’s operating results, without providing labor or management,

Spouses are considered actively engaged if the other spouse meets the qualification. [7 U.S.C.

1308-1]

Deletes “active personal management” from the definition of actively engaged in farming. Effectively requires personal labor in the farming operation to be considered actively engaged. Members of legal entities collectively would need to make a significant contribution of personal labor. Adds a special class of “farm managers” that may be considered actively engaged by providing management but not personal labor. However the

Secretary would take into account the size and complexity of the operation and whether such management requirements are normally needed by similar operations, A farm manager must be the only person to qualify an operation, may qualify only one operation, and must manage an operation that doesn’t share resources with another that collectively receives more than the payment limitations. Separately, clarifies that for the special class of landowner, a “landowner share-rents the land at a rate that is usual and customary” and that government payments are commensurate. [Sec. 1604]

Adjusted Gross Income (AGI) Limitation

Prohibits farm commodity program benefits to an individual or entity if adjusted gross income exceeds certain thresholds. For this purpose, AGI is divided into two parts: farm AGI and non-farm AGI.

Uses a 3-year average when comparing to the limit.

Eliminates the distinction between non-farm AGI and farm AGI, and establishes a limit on total AGI. For most individuals, this tightens the limit. For some individuals with non-farm AGI between $500,000 and $750,000, it may restore program eligibility if farm AGI is low. Uses a

3-year average when comparing to the limit. Applies AGI limits through 2018.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Same as Senate bill, with minor clarification differences.

[Sec. 1603A]

Eliminates the distinction between non-farm AGI and farm

AGI, and establishes a limit on total AGI. For some individuals, this tightens the limit if they use most of the former $500,000 and $750,000 limits. For other individuals, it may restore program eligibility if AGI is concentrated to either the farm or non-farm component

(e.g., non-farm AGI between $500,000 and $950,000 and low farm AGI). Uses a 3-year average when comparing to

CRS-44

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

—$500,000 limit on non-farm AGI to qualify for and receive any farm commodity program benefits,

Milk Income Loss Contract (MILC) program, noninsured crop assistance (NAP), or disaster payments.

—$750,000 limit on farm AGI to qualify for and receive direct payments, but counter-cyclical, ACRE and marketing loan benefits may continue if farm

AGI exceeds $750,000. [7 U.S.C. 1308-3a(b)(1)]

For FY2012 only, a separate, additional $1 million

AGI limit applies to direct payments [P.L. 112-55,

Sec. 745]

For conservation programs, $1 million limit on nonfarm AGI, unless more than 66.66% of AGI is farm

AGI. Provides USDA discretion to waive the limit for “environmentally sensitive land of special significance." [7 U.S.C. 1308-3a(b)(2)]

—$750,000 limit on total AGI to qualify for and receive

ARC and adverse market payments, marketing loan gains or loan deficiency payments, supplemental agricultural disaster assistance, and noninsured crop assistance. [Sec.

1605]

Eliminates the USDA waiver authority for

“environmentally sensitive land of special significance.”

Continues $1 million limit on non-farm AGI, and the exception, for conservation programs. [Sec. 2610]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

the limit. Repeals expiration date of applicability.

—$950,000 limit on total AGI to qualify for and receive

PLC and RLC payments, marketing loan gains or loan deficiency payments, supplemental agricultural disaster assistance, noninsured crop assistance, and conservation programs. [Sec. 1604]

Other Administrative Provisions

Authorizes use of funds, facilities, and authorities of the Commodity Credit Corporation (CCC) to carry out Title I. Determinations by USDA shall be final. Allows promulgation of regulations, and adjusting expenditures if they will exceed allowable support levels under the Uruguay Round

Agreements. [7 U.S.C. 8781]

Suspends the permanent price support authority of the Agricultural Adjustment Act of 1938 and the

Agricultural Adjustment Act of 1949 for the 2008-

13 crops (covered commodities, peanuts, and sugar), and for milk through December 31, 2013. [7

Same as current law. [Sec. 1601]

Same as current law, except applies to 2014-2018 crop years, and milk through December 31, 2018. [Sec. 1602]

Eliminates the separate AGI limit for conservation programs, including the exception for 2/3 of AGI being farm AGI, and—like the Senate bill—the USDA waiver authority for “environmentally sensitive land of special significance.” Applies the same $950,000 total AGI limit to the conservation programs as for the farm commodity programs. [Sec. 1604(a)]

Similar to the Senate bill; separate provision specifies promulgating regulations no later than 21 months after date of enactment. [Sec. 1601]

Repeals permanent price support authority under

Agricultural Adjustment Act of 1938 and Agricultural

Adjustment Act of 1949. [Sec. 1602]

Establishes new “permanent law.” For 2014 and each succeeding crop year, authority continues without an

CRS-45

Current Law/Policy—Commodity Programs

U.S.C. 8782]

Senate-Passed 2013 Farm Bill (S. 954)

Provides payments to “geographically disadvantaged farmers” in insular areas, Alaska, and Hawaii for transporting a commodity or input more than 30 miles. Reimbursement based on federal salary differentials defined elsewhere, with maximum of

25% transportation cost. Authorizes $15 million of discretionary appropriations annually for FY2009-

13. [7 U.S.C. 8792]

Exempts producers from liability for certain deficiencies in collateral to secure any nonrecourse loan. [7 U.S.C. 7284]

Requires regulations that describe the circumstances allowing payments to a deceased person to settle an estate, and to stop payments for those ineligible. Requires USDA to reconcile tax identification numbers with IRS data twice a year to determine living status. [7 U.S.C. 7284]

Any person who receives an adverse program decision from USDA’s Farm Service Agency, Risk

Management Agency, Natural Resources

Conservation Service, or the three USDA Rural

Development agencies may file an appeal with the

National Appeals Division (NAD), an independent office that reports directly to the Secretary of

Agriculture. Its mission is to provide fair and timely hearings and appeals to USDA program participants. [7 U.S.C. 6992]

No comparable provision.

Reauthorizes through FY2018. [Sec. 1606]

Same as current law. [Sec. 1607]

Same as current law. [Sec. 1608]

Adds authorization for the Assistant Secretary of

Administration to administer law and regulations that relate to competitive and excepted service position in

NAD. [Sec. 1609]

Provides technical corrections. [Sec. 1610]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

expiration date for Price Loss Coverage and Revenue Loss

Coverage [Sections 1104-1107], and Nonrecourse

Marketing Loans. [Sec. 1201] The Dairy Producer Margin

Insurance Program is authorized without an expiration date. [Sec. 1401]

Reauthorizes program without an expiration date.

[Sec. 1605]

Identical to the Senate bill. [Sec. 1606]

Identical to the Senate bill. [Sec. 1607]

No comparable provision.

Provides technical corrections. [Sec. 1608]

CRS-46

Current Law/Policy—Commodity Programs Senate-Passed 2013 Farm Bill (S. 954)

Requires that assignment of payments must be done in accordance with USDA regulations. [7

U.S.C. 8784]

Requires tracking of program benefits under

Commodity and Conservation titles that are made directly or indirectly to individuals and entities. [7

U.S.C. 8785]

Requires that, if USDA approves a program document containing signatures of applicants, it shall not subsequently determine it to be inadequate or invalid unless the person signing the document knowingly and willfully falsified the evidence of signature authority or a signature. [7

U.S.C. 8790]

Provides $50 million of mandatory funds from the

CCC to implement Title I. [7 U.S.C. 8793]

Same as current law. [Sec. 1611]

Same as current law. [Sec. 1612]

Same as current law. [Sec. 1613]

USDA may not disclose information about an agricultural operation, farming or conservation practice, or land that was provided by the producer or landowner in order to qualify for a USDA program, See Miscellaneous title for more information. [7 U.S.C. 8791; also known as

Section 1619 of the 2008 farm bill]

Provides $97 million of mandatory funds from the CCC to implement Title I. USDA is to reduce administrative burdens on participants, improve information coordination among agencies, and take advantage of new technologies to deliver programs to producers. [Sec.

1614]

Adds language to clarify and strengthen the conditions necessary to release data about farms to state and local government agencies. [See Miscellaneous title – Sec.

12202]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 1609]

Identical to the Senate bill. [Sec. 1610]

Identical to the Senate bill. [Sec. 1611]

The Secretary shall make available $100 million to implement Title I. Also directs USDA to maintain base acres and payment yields for covered commodities (and upland cotton), with separate bases acres for long grain and medium grain rice. [Sec. 1612]

Prohibits the Secretary of Agriculture, USDA employee, contractor, or officer or employee of another federal agency from disclosing information provided by a producer or owner of agricultural land concerning the operation, farming or conservation practices, or the land itself in order to participate in USDA or other federal programs. Specifies certain exceptions; disclosures must be reported to House and Senate Agriculture

Committees. [Sec. 1613]

CRS-47

Title II. Conservation

Current Law/Policy—Conservation

Conservation Reserve Program (CRP)

Sec.1231(a-b) of the Food Security Act of 1985

(FSA) (P.L. 99-198, or the 1985 farm bill), as amended, authorizes the CRP through FY2013. CRP provides annual rental payments to producers to replace crops on highly erodible and environmentally sensitive land with long-term resource conserving plantings. [16 U.S.C. 3831(a-b)]

Sec. 1231(c) of the FSA, as amended, determines the planting status of certain land. [16 U.S.C. 3831(c)]

Sec. 1231(d) of the FSA, as amended, authorizes the maximum acreage enrollment levels; the program is currently authorized through FY2013 to enroll up to

32 million acres. [16 U.S.C. 3831(d)]

Sec. 1231(e) of the FSA, as amended, defines the duration of contracts. [16 U.S.C. 3831(e)]

Sec. 1231(f) of the FSA, as amended, lists priority areas as the Chesapeake Bay Region, the Great

Lakes Region, and Long Island Sound. [16 U.S.C.

3831f]

Sec. 1231B(a-f) of the FSA, as amended, authorizes a pilot program for up to 1 million acres of wetland and buffer acreage in CRP. [16 U.S.C. 3831b]

Senate-Passed 2013 Farm Bill (S. 954)

Extends authorization through FY2018. Adds grasslands to list of eligible lands, which is consistent with the consolidation of Grassland Reserve Program (GRP) rental agreements under CRP (also see Sec. 2004 below).

Amends eligible land definition for land not enrolled in

CRP. [Sec. 2001(a-b)]

Deletes language allowing land enrolled in the Water

Bank Program and cropland expiring in CY2000-CY2002 to be enrolled. [Sec. 2001(c)]

Reduces enrollment to 30 million acres in FY2014; 27.5 million acres in FY2015; 26.5 million acres in FY2016; and

25.5 million acres in FY2017; and 25 million in FY2018.

Also caps grassland enrollment at 1.5 million acres between FY2014-FY2018. Gives expiring CRP acres priority enrollment for grassland contracts; at least one grassland sign-up must be offered each year. [Sec.

2001(d)]

Amends language for land devoted to hardwood trees, shelterbelts, windbreaks, or wildlife corridors to allow flexible contract lengths beyond the current 10-15 years.

[Sec. 2001(e)]

Deletes watershed-specific language, but retains the use of conservation priority areas as determined by USDA.

[Sec. 2001(f)]

Renames the pilot program “Farmable Wetlands

Program.” Reauthorizes the program through FY2018, and clarifies language related to constructed wetlands receiving water from agricultural drainage. [Sec. 2002]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Nearly identical to the Senate bill with minor differences.

[Sec. 2001(a-b)]

Identical to the Senate bill. [Sec. 2001(c)]

Reduces enrollment to 27.5 million acres in FY2014; 26 million acres in FY2015; 25 million acres in FY2016; 24 million acres in both FY2017 and FY2018. Also caps grassland enrollment at 2 million acres between FY2014-

FY2018. Gives expiring CRP acres priority enrollment for grassland contracts. Grassland sign-up is continuous with one or more ranking periods. [Sec. 2001(d)]

Nearly identical to the Senate bill with minor differences.

[Sec. 2001(e)]

Identical to the Senate bill. [Sec. 2001(f)]

Similar to the Senate bill, but reduces acreage limitation from 1 million acres to 750,000 acres. [Sec. 2002]

CRS-48

Current Law/Policy—Conservation

Sec. 1232(a)(8) of the FSA, as amended, establishes approved use of harvesting, grazing, and wind turbine use on CRP acres. [16 U.S.C. 3832(a)(8)]

Sec. 1232(b & d) of the FSA, as amended, requires a conservation plan on all CRP acres and reduces rental payment for certain authorized uses. [16

U.S.C. 3832(b & d)]

Sec. 1233 of the FSA, as amended, specifies the duty of USDA to make cost-share payments and rental payments. [16 U.S.C. 3833]

Sec. 1234 of the FSA, as amended, establishes a framework for calculating annual rental payments.

[16 U.S.C. 3834]

Sec. 1235(f) of the FSA, as amended, facilitates the transfer of CRP acres from a retiring owner to a beginning/socially-disadvantaged producer to return

Senate-Passed 2013 Farm Bill (S. 954)

Deletes language related to harvesting, grazing, and wind turbine use on CRP acres. Adds similar language under

Sec. 2004 (see below). [Sec. 2003(a)]

Amends conservation plan language by removing possible base acre retirement. Deletes rental payment reduction requirement for certain authorized activities. Rental payment reduction language is added under Sec. 2004

(see below). [Sec. 2003(b-c)]

Deletes the current section and adds new section that specifies the duties of USDA as: making cost-share and rental payments; allowing for emergency harvesting, grazing, and other use of forage without a reduction in rental rate; allowing livestock grazing for a beginning farmer or rancher without a reduction in rental rate; certain permitted activities (harvesting, grazing, and wind turbines) in exchange for not less than a 25% reduction in rental rates. All permitted activities must be consistent with an approved conservation plan. Allows grazing, harvesting, and fire suppression on enrolled grasslands. In exchange for a reduced rental rate, a landowner may install land improvement practices up to one year before the CRP acres expire. This land may not reenroll in CRP for five years. [Sec. 2004]

Allows incentive payments for tree and shrub maintenance (thinning activities). Amends rental payment calculation to include grassland contracts for not more than 75% of the grazing value. Dryland cash rental rates may also be used as a factor for determining annual rental rates. Deletes language allowing for in-kind commodities as a form of CRP payment. [Sec. 2005] Sec. 2601(a) includes a limit of $10 million for thinning activities between FY2014-FY2018.

Simplifies language and provides conforming amendments to the CRP transition option. Adds “rancher” and

“veteran farmer or rancher” as eligible individuals in

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Nearly identical to the Senate bill with minor differences.

[Sec. 2003(a)]

Nearly identical to the Senate bill with minor differences.

[Sec. 2003(b-c)]

Similar to the Senate bill, but does not include the Senate provision allowing beginning farmers or ranchers to graze livestock without a reduction in rental rate. Includes a different frequency (not more than once every three years) for identifying periods in which managed haying and other commercial uses may occur in exchange for a reduction in rental rate. Does not include the Senate provision that requires a reduced rental payment for landowners electing to install land improvement practices up to one year before the CRP acres expire. [Sec. 2004]

Similar to the Senate bill, but does not include incentive payments for thinning activities. Also does not include the language allowing USDA to consider dryland cash rental rate when determining annual rental rates. [Sec. 2005]

Sec. 2601(a) does not include a limit for thinning activities.

Amends the early termination provisions to allow producers with a CRP contract in place for five or more years to terminate the contract in FY2014. Expands the

CRS-49

Current Law/Policy—Conservation

land to production, and allows new owner to begin land improvements or start organic certification process one year before CRP contract expires. [16

U.S.C. 3835(f)]

Sec. 1235A of the FSA, as amended, allows land enrolled in CRP before enactment of the 1990 farm bill (P.L. 101-624, November 28, 1990) to convert vegetative cover to hardwood trees or restored wetlands [16 U.S.C. 3835a]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

addition to a farmer. The Secretary shall not consider an owner or operator in violation of terms and conditions of a CRP contract if (1) during the year prior to contract expiration the land is enrolled in the CSP; and (2) the activity required under CSP pursuant to the enrollment is consistent with this subsection. Authorizes the Secretary to terminate or modify a contract if eligible land subject to the contract is transferred into the ACEP. [Sec. 2006]

Sec. 2601(a) includes a $50 million limit for the CRP transition option between FY2014-FY2018.

Repeals a provision added in the 1990 farm bill that allows land to be converted from vegetative cover to hardwood trees or restored wetlands. [Sec. 2007]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

list of land that may not be subject to early termination.

Provides conforming amendments, similar to the Senate bill, to the CRP transition option. Adds a provision allowing landowners to enroll in CSP (see program beginning with Sec. 2101) and conduct activities required under CSP in the final year of the CRP contract without violating the terms of the contract. Also allows USDA to terminate or modify a CRP contract if land is enrolled in

ACEP (see section beginning with Sec. 2301) Changes effective date of termination to the date that the request is approved by the Secretary. [Sec. 2006]

Identical to the Senate bill. [Sec. 2007]

Sec. 1241(a)(1) of the FSA, as amended, limits payments for thinning activities to $100 million between FY2009-FY2013 and payments for the transition assistance (see Sec. 1235(f) above) to

$25 million for FY2009-2013. [16 U.S.C.

3841(a)(1)]

Sec. 1241(a)(1) of the FSA, as amended, limits payments for thinning activities to $100 million between FY2009-FY2013 and payments for the transition assistance (see Sec. 1235(f) above) to

$25 million for FY2009-2013. [16 U.S.C.

3841(a)(1)]

Provides transition language for existing CRP contracts.

Reductions in CRP acres (Sec. 2003) take effect upon enactment. All other amendments take effect on October

1, 2013. [Sec. 2008]

Reduces limit for thinning activities (see Sec. 2005) to

$10 million between FY2013-FY2018 and increases limit for transition assistance (see Sec. 2006) to $50 million between FY2014-FY2018. [Sec. 2601(a)]

Nearly identical to the Senate bill with minor differences.

[Sec. 2008]

Does not include a limit for thinning activities (see Sec.

2005). Extends the $25 million limit for transition assistance to FY2014-FY2018 (see Sec. 2006). [Sec.

2601(a)]

Reduces limit for thinning activities (see Sec. 2005) to

$10 million between FY2013-FY2018 and increases limit for transition assistance (see Sec. 2006) to $50 million between FY2014-FY2018. [Sec. 2601(a)]

Does not include a limit for thinning activities (see Sec.

2005). Extends the $25 million limit for transition assistance to FY2014-FY2018 (see Sec. 2006). [Sec.

2601(a)]

CRS-50

Current Law/Policy—Conservation

Conservation Stewardship Program (CSP)

Sec. 1238D of the FSA, as amended, defines program terms for CSP. CSP provides financial and technical assistance to promote the conservation and improvement of soil, water, air, energy, plant and animal life, and other conservation purposes on tribal and private working lands. [16 U.S.C. 3838d]

Sec. 1238E of the FSA, as amended, establishes the

CSP program for FY2009-FY2014. Eligible land includes private agricultural land, tribal agricultural land (that has been planted to crops four of preceding six years), and nonindustrial private forest land. [16 U.S.C. 3838e]

Sec. 1238F of the FSA, as amended, establishes contract requirements for addressing at least one resource concern upon application and meeting or exceeding the threshold for at least one priority resource concern by the end of the contract.

Establishes a ranking criteria of applications, contract provisions, contract renewal, and contract terminations. [16 U.S.C. 3838f]

Sec, 1238G of the FSA, as amended, outlines the duties of USDA, including offering continuous enrollment with at least one ranking period per year, identifying between 3-5 priority resource concerns, and developing a conservation measurement tool. Limits acreage enrollment to

12,769,000 acres for each fiscal year 2008 through

2017. Requires a national average rate of $18 per acre (to include all costs). Payments may be based on the costs incurred, income forgone, and expected environmental benefits. In general,

Senate-Passed 2013 Farm Bill (S. 954)

Deletes definition of ‘conservation measurement tools’ and moves the definition of ‘eligible land’ from Sec.

1238E(b) of the FSA, as amended to the definition section. Adds pastureland as defined eligible lands. [Sec.

2101(a)]

Reauthorizes the program through FY2018. Moves definition of ‘eligible land’ to the definition section (1238D of the FSA, as amended) and removes nonindustrial private forest land limit of not more than 10% of total annual acres. Permits CSP enrollment of land under a

CRP contract provided the CRP contract is scheduled to expire at the end of the year in which the land is enrolled in CSP; and CRP payments for the land cease prior to the date of the first CSP payment. [Sec. 2101(a)]

Increases the entry requirement to address two resource concerns upon applying and meeting or exceeding the threshold for at least one additional priority resource concern. Adds expiring CRP acres transitioning to production as a consideration for ranking applications.

Requires contract renewal participants to agree to, at a minimum, at least two additional priority resource concerns. [Sec. 2101(a)]

Increases the number of priority resource concerns identified by USDA to not less than five. Removes references to a conservation measurement tool. Reduces the number of enrollable acres to 10,348,000 acres for each fiscal year 2014 through 2022. Adjusts the payment limit aggregate to $200,000 for all CSP contracts between

FY2014 and FY2018. Provides additional payment direction and requires a prorated performance over the life of the contract to create equal payments each fiscal year. Removes data collection requirements. [Sec.

2101(a)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Similar to the Senate bill except that it further defines eligible land to include land used or capable of being used for production of livestock and pastureland. [Sec.

2101(a)]

Similar to Senate bill, but allows CRP land in the last fiscal year of enrollment to be considered eligible for CSP. CRP payments must cease before CSP payments may begin.

[Sec. 2101(a)]

Nearly identical to the Senate bill with minor differences

As a condition of contract renewal, added requirement that participants at a minimum must meet the threshold for two “additional” priority resources concerns OR exceed the threshold for two “existing“ priority resource concerns. [Sec. 2101(a)]

Similar to the Senate bill with a reduced level of enrollable acres––8.695 million acres––for each year

FY2014-FY2021. Adjusts the payment limit to an aggregate of $200,000 for all CSP contracts between

FY2013 and FY2017 [Sec. 2101(a)]

CRS-51

Current Law/Policy—Conservation

payments are made at the beginning of each fiscal year and are limited to a total of $200,000 for all

CSP contracts during any five year period. [16

U.S.C. 3838g]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Provides transition language for existing CSP contracts.

Amendments to CSP take effect on October 1, 2013.

[Sec. 2101(b-c)]

Environmental Quality Incentives Program (EQIP)

Sec. 1240 of the FSA, as amended, authorizes EQIP, stating its purpose as promoting production and environmental quality as compatible goals, and optimizing environmental benefits by assisting producers: (1) with compliance with national regulatory requirements; (2) to avoid the need for regulation; (3) to install and maintain conservation practices; (4) to make cost-effective changes to current production systems, and (5) to reduce administrative burdens by consolidating planning and regulatory compliance. [16 U.S.C. 3839aa]

Sec. 1240A of the FSA, as amended, defines six terms: eligible land, National Organic Program, organic system plan, payment, practice, and program. [16 U.S.C. 3839aa-1]

Removes the 5 th

purpose area that requires the reduction of administrative burdens on the producer through consolidating conservation planning and streamlining regulatory compliance processes. Adds wildlife habitat improvement and development practices to the 3 rd purpose area. [Sec. 2201]

Incorporates the definition of the National Organic

Program into the definition of an organic system plan.

[Sec. 2202]

Sec. 1240B(a-b) of the FSA, as amended, authorizes

EQIP through FY2014. Contracts are 1-10 years in length. [16 U.S.C. 3839aa-2(a-b)]

Reauthorizes EQIP through FY2018. Removes the minimum one-year contract length requirement.

Establishes requirement that not more than 30% of amount determined under subparagraph (A) may be provided in advance for purchases or material and contracting Requires that at least 5% of EQIP funds be made available for wildlife habitat practices FY2014 –

FY2018 [Sec. 2203(1-2)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 2101(b-c)]

Nearly identical to the Senate bill with minor differences.

[Sec. 2201]

No comparable provision.

Nearly identical to the Senate bill with minor differences.

Establishes requirement that not more than 50% of amount determined under subparagraph (A) may be provided in advance for purchases or material and contracting. Requires that 7.5% of EQIP funds be made available for wildlife habitat practices FY2014 – FY2018.

[Sec. 2202(1-2)]

CRS-52

Current Law/Policy—Conservation

Sec. 1240B(d) of the FSA, as amended, limits EQIP payments to not more than 75% of the cost (up to

90% for limited resource, socially disadvantaged farm or rancher, or a beginning farmer or rancher) and not more than 100% of income forgone. Greater significance is provided for determining income forgone payments for specific management practices.

Advance payments for certain producers are limited to 30% of the cost-share rate. [16 U.S.C. 3839aa-

2(d)]

Sec. 1240B(f) of the FSA, as amended, requires that

60% of EQIP payments go to practices related to livestock production requirement between FY2008-

FY2013. [16 U.S.C. 3839aa-2(f)]

Sec. 1240B(g) of the FSA, as amended, allows USDA to enter into alternative funding arrangement with federally recognized Native American Indian Tribes and Alaska Native Corporations. [16 U.S.C.

3839aa-2(g)]

Sec. 1240N of the FSA, as amended, authorizes the

Wildlife Habitat Incentives Program (WHIP), providing cost-sharing to landowners who improve habitat. Authorized to receive mandatory funding of

$85 million annually through FY2013. [16 U.S.C.

3839bb-1]

Senate-Passed 2013 Farm Bill (S. 954)

Revises the list of practices afforded greater significance when determining income forgone. Adds veteran farmer or rancher to the list of certain producers eligible for cost-share rates up to 90% and advanced payments.

Requires advanced payments not used within 90 days to be returned. [Sec. 2203(3)]

Extends through FY2018 the requirement that 60% of payments be for livestock production. A minimum of 5% of funds go to payments benefiting wildlife habitat (see

Sec. 2203(5)) Requires the Secretary to consult with

State Technical Committee at least once per year in determining practices eligible for payment and targeted funding. Authorizes the Secretary to make payments to a state or local unit of government to enroll areas riparian to or submerged under water or wetland if the Secretary determines that it supports restoration, development and improvement of wildlife habitat. [Sec. 2203(4)]

Amends Sec. 1240B(g) by adding provision requiring the

Secretary to use EQIP funds for Wildlife Habitat

Incentives Program (WHIP) conservation practices. [Sec.

2203(5)]. Also removes language regarding alternative funding arrangements with tribes (and moves it to Sec.

1244(l) [Sec. 2606]

Adds a new provision under EQIP specifically for wildlife habitat incentive practices. Language is similar to the

Wildlife Habitat Incentives Program, which is repealed in

Sec. 2707. [Sec. 2203(5)] Funding for the provision is provided in Sec. 2203(4).

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Does not include the Senate bill’s list of practices. Adds veteran farmer or rancher to the list of certain producers eligible for higher cost-share rates. [Sec. 2202(3)]

Nearly identical to the Senate bill with minor differences.

[Sec. 2202(4)]

Changes the term ‘federally recognized Native American

Indian Tribes and Alaska Native Corporations’ to ‘Indian

Tribes.’ Authorizes the Secretary to enter into an alternative funding arrangement with an eligible irrigation association. [Sec. 2202(5)]

Similar to the Senate bill. [Sec. 2202(6)]. The Wildlife

Habitat Incentives Program is also repealed in Sec. 2707 and funding for the new wildlife provision is provided in

Sec. 2202(4) above.

CRS-53

Current Law/Policy—Conservation Senate-Passed 2013 Farm Bill (S. 954)

Sec. 1240C(b) of the FSA, as amended, identifies priorities to program applications. Gives higher priority for producers using cost-effective conservation practices to achieve environmental benefits. [16 U.S.C. 3839aa-3(b)]

Sec. 1240D(2) of the FSA, as amended, states that in exchange for EQIP payments, producers will not conduct any practices on the farm, ranch, or forest land that could defeat the purpose of the program.

[16 U.S.C. 3839aa-4(2)]

Sec. 1240G of the FSA, as amended, limits EQIP participant’s payments to $300,000 for any six-year period. This may be waived to up to $450,000 for any six-year period if the contract is of environmental significance. [16 U.S.C. 3839aa-7]

Changes “environmental benefits” to “conservation benefits.” [Sec. 2204]

Changes “farm, ranch, or forest” land to “enrolled” land.

[Sec. 2205]

Limits EQIP payments for the period of authorization

(FY2014-FY2018) rather than a rolling six-year period.

[Sec. 2206]

Sec. 1240H of the FSA, as amended, authorizes a competitive grants program within EQIP, known as the Conservation Innovation Grants (CIG). Grants are provided, on a matching basis, to implement innovative conservation practices. Provides $37.5 million of EQIP funds annually (FY2009-2013) to address air quality concerns. [16 U.S.C. 3839aa-8]

No comparable provision.

Reauthorizes the air quality funding carve-out of $37.5 million of EQIP annually through FY2017. Adds a reporting requirement that no later than Dec. 31, 2013, and every 2 years thereafter, a report must be submitted to Congress regarding CIG funding, project results, and technology transfer efforts. [Sec. 2207]

Provides transition language for existing EQIP contracts.

Amendments to EQIP take effect on October 1, 2013.

[Sec. 2208]

Sec. 1241(a)(6) of the FSA, as amended, authorizes mandatory EQIP funding, rising from $1.2 billion in

FY2008 to $1.75 billion in FY2014. [16 U.S.C.

3841(a)(6)]

Authorizes mandatory EQIP funding: $1.5 billion

(FY2014); $1.6 billion (FY2015); and $1.65 billion (each

FY2016-FY2018). Amended Sec. 1241(a)(5). [Sec.

2601(a)]

Agricultural Conservation Easement Program (ACEP)

No directly comparable provision. Similar to the establishment and purposes section of the Wetlands

Reserve Program (WRP, Sec. 1237(a)), the Farmland

Establishes the Agricultural Conservation Easement

Program (ACEP). Combines the purposes of WRP, FPP, and GRP. Amended Sec. 1265 [Sec. 2301(a)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 2203]

Identical to the Senate bill. [Sec. 2204]

Raises the EQIP payment limit to an aggregate of

$450,000 between FY2014-FY2018 and eliminates the waiver authority for contracts of environmental significance. [Sec. 2205]

Eliminates the air quality funding carve-out of $37.5 million annually. Adds research and demonstration activities, and new technology pilot testing as eligible projects. Adds a reporting requirement identical to

Senate bill. [Sec. 2206]

Identical to the Senate bill. [Sec. 2207]

Authorizes mandatory EQIP funding of $1.75 billion for each fiscal years 2014 through 2018. Amended Sec.

1241(a)(5) [Sec. 2601(a)]

Nearly identical to the Senate bill with minor differences.

Amended Sec. 1265 [Sec. 2301(a)]

CRS-54

Current Law/Policy—Conservation

Protection Program (FPP, Sec. 1238I(a)&(b)), and the

Grassland Reserve Program (GRP, Sec. 1238N(a)) of the FSA, as amended. [16 U.S.C. 3837(a);

3838i(a)&(b); 3838n(a)]

No directly comparable provision. Similar to definitions found in Sec. 1237 (WRP) and Sec.

1238H (FPP) of the FSA, as amended. [16 U.S.C.

3837 & 3838h]

Senate-Passed 2013 Farm Bill (S. 954)

Defines agricultural land easements, eligible entity, eligible land, program and wetland easement. Divides the easement program into two types––agricultural land easements, which include components of FPP and GRP and wetlands easements, which include components of

WRP. Amended Sec. 1265A Eligible land is defined as land that conserves grassland or agricultural landscape of significant ecological value. [Sec. 2301(a)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Similar to the Senate bill with differences, including: the definition of agricultural land does not include the Senate language related to promoting agricultural viability; and the House bill contains wetland easements that may include cropland or grassland that has prior flooding from a closed basin lake or pothole if the state or other entity is willing to provide a 50% cost-share of the easement.

House bill also includes land enrolled in the conservation reserve program. Amended Sec. 1265A [Sec. 2301(a)]

Nearly identical to the Senate bill with minor differences.

Amended Sec. 1265B [Sec. 2301(a)]

No directly comparable provision. Similar to Sec.

1238I (FPP) of the FSA, as amended. Provides for the purchase of conservation easements by limiting the land’s nonagricultural uses. The federal cost may not exceed 50% of the appraised market value of the easement and entities must contribute a minimum of

25% of the acquisition purchase price. Prohibits bidding down. Requires USDA to include a contingent right of enforcement in the terms of the easement, and that a conservation plan be required for any easements that include highly erodible cropland. Establishes a certification process for

USDA to enter into agreements with eligible entities to use FPP cost-share assistance to purchase easements. To become certified, entities must have the authority and resources to enforce easements, polices in place that are consistent with the purposes of the program, and clear procedures to protect the integrity of the program. Agreements with certified entities are a minimum of five years with a review and recertification required every three years. Agreements with non-certified entities are 3-5 years in length. [16 U.S.C. 3838i(c)-(h)]

Retains much of the FPP easement requirements for costshare assistance, agreements with eligible entities, certification of eligible entities, including review and recertification requirements. Allows for grazing as a protected agricultural use, similar to GRP easements.

Requires appraisals based on uniform standards of professional appraisal practice or any other industryapproved standard. Requires eligible entities to provide contributions equivalent to the federal share or at least

50% of the federal share if the entity includes contributions from the private landowner. Allows up to

75% federal cost-share for grasslands of special environmental significance. Establishes an evaluation and ranking criteria for applications. Authorizes the Secretary to waive any portion of the eligible entity cash contribution requirement for projects of special significance, subject to an increase of private landowner donation equal to the amount of the waiver if donation is voluntary. Amended Sec. 1265B [Sec. 2301(a)]

CRS-55

Current Law/Policy—Conservation

No directly comparable provision. Similar to Sec.

1237-1237F (WRP) of the FSA, as amended. WRP enrolls lands through the use of permanent easements, 30-year easements, restoration costshare agreements, or any combination thereof.

Eligible lands under WRP include: farmed wetland or converted wetland, together with adjacent land, except wetlands converted before December 23,

1985; cropland or grassland that was used for agricultural production prior to flooding from the natural overflow of a closed basin lake or pothole; and possibly farmed wetlands enrolled in CRP that are likely to return to production upon contract expiration. Ineligible lands include CRP acres containing timber stands or CRP pasture established to trees. USDA is required to determine the value of easements and contracts by providing the lowest amount of compensation based on a comparison of the fair market value of the land, a geographic cap, or an offer made by the landowner. Easements with values less than $500,000 must be paid out over 1-

30 years; easements with values greater than

$500,000 are to be paid out over 5-30 years.

Authorized to conduct a Wetlands Reserve

Enhancement Program (WREP) for agreements with states similar to CREP. Priority is given to easements based on the value of protecting and enhancing habitat for migratory birds and other wildlife, while taking into consideration costs and future agricultural and food needs. Eligible land cannot have changed ownership in the previous 7-year period unless the new ownership was by will, succession, foreclosure, or USDA is assured the land was not acquired for the purpose of enrolling in WRP. [16

U.S.C. 3837-3837f]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Retains much of the WRP easement requirements for land eligibility, easement terms, compatible uses, easement compensation, violation procedures, duties of

USDA and the owner, cost-share, restoration, and technical assistance requirements, and modification and termination procedures. Reauthorizes WREP-like program referred to as the wetland enhancement option.

No longer allows for stand-alone cost-share restoration agreements, only 30-year easements, permanent easements (or maximum duration allowed under law), and 30-year contracts for Indian Tribes, which may include restoration assistance. Requires the establishment of an evaluation and ranking criteria that maximizes the benefit of federal investment. Retains priority for easements based on the value of protecting and enhancing habitat for migratory birds and other wildlife, but removes consideration for costs and future agricultural and food needs. Makes the reserved grazing rights pilot program permanent. Compensation provisions are similar to WRP, but adds a requirement that 30-year contract

(Tribes only) and 30-year easement compensation be between 50% and 75% of a permanent easement’s compensation. Payment schedules are changed for easements with values less than $500,000 to be paid out not more than ten years and easements with values greater than $500,000 to be paid out over 5-10 years.

Easement administration may still be delegated, however, the monitoring and enforcement responsibilities may not.

Reduces the land ownership requirement to the preceding 12-month period. Excludes (A) Shelterbelts and

Windbreaks and (B) Wetland and Saturated Soils - not subjecting such cropland, as designated by the Secretary, with subclass “w” in the land capability classes IV through

VIII. Amended Sec. 1265C [Sec. 2301(a)]

Outlines administrative requirements for ACEP using elements of WRP, FPP, and GRP. Provides priority for

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill with minor differences.

Reduces the land ownership requirement to the preceding 24-month period. Amended Sec. 1265C [Sec.

2301(a)]

Similar to the Senate bill, except the House bill allocates funding to no less than 40% annual for agricultural land

CRS-56

Current Law/Policy—Conservation

No comparable provision.

No directly comparable provision. Sec. 1241(a)(2) and (a)(5) of the FSA, as amended, authorizes mandatory funding to enroll WRP & GRP acres respectively. Sec. 1241(a)(4) authorizes mandatory

FPP funding, rising from $97 million in FY2008 to

$200 million in FY2014. [16 U.S.C. 3841(a)(2);

(a)(4); (a)(5)]

Regional Conservation Partnership Program (RCPP)

Requires ACEP participants to meet highly erodible land and wetlands conservation (collectively known as conservation compliance) requirements (see 16 U.S.C.

3811 et seq. under Sec. 2609(a-b) for a description).

Provides technical amendments for other sections.

Amendments take effect on October 1, 2013. [Sec.

2301(b-d)]

Authorizes mandatory ACEP funding: $450 million

(FY2014), $475 million (FY2015); $500 million (FY2016);

$525 million (FY2017); and $250 million (FY2018).

Amended Sec. 1241(a)(2). [Sec. 2601(a)]

No directly comparable provision. Includes elements of the establishment and purposes section of the

Agricultural Water Enhancement Program (AWEP,

Sec. 1240I)), the Chesapeake Bay Watershed program (Sec. 1240Q), the Cooperative

Conservation Partnership Initiative (CCPI, Sec.

1243) and the Great Lakes basin program for soil erosion and sediment control (Sec. 1240P) of the

FSA, as amended. [16 U.S.C. 3839aa-9; 3839bb-4;

3843; 3839bb-3]

No directly comparable provision. Includes elements of previously mentioned programs.

Senate-Passed 2013 Farm Bill (S. 954)

expiring CRP acres to enter into 1) agricultural land easements if they are grasslands that would benefit from long-term easements, or 2) wetland easements if they are wetlands with the highest functions and value that could return to production after leaving the CRP. Amended

Sec. 1265D. [Sec. 2301(a)]

Establishes the Regional Conservation Partnership

Program (RCPP). Combines the purposes of AWEP, the

Chesapeake Bay Watershed program, CCPI, and the

Great Lakes basin program to further conservation, restoration, and sustainability on a regional or watershed scale, and encourage partners to cooperate with producers in meeting or avoiding regulatory requirements and implementing projects. Amended Sec. 1271 [Sec.

2401]

Defines covered programs as ACEP, EQIP, CSP & HFRP.

Eligible activities include those that address water quality and quantity concerns, wildlife habitat, erosion, forest restoration, including T&E species, improved biodiversity,

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

easement for FY2014-FY2017 and 50% in FY2018.

Amended Sec. 1265D [Sec. 2301(a)]

Similar to the Senate bill, including the conservation compliance requirement. Also amends acreage limitations to include the repealed WRP acres in the 25% county acreage cap in addition to CRP and the new wetland easements under ACEP. [Sec. 2301(b-d)]

Authorizes mandatory ACEP funding: $425 million

(FY2014); $450 million (FY2015); $475 million (FY2016);

$500 million (FY2017); and $200 million (FY2018)

Amended Sec. 1241(a)(2). [Sec. 2601(a)]

Nearly identical to the Senate bill with minor differences.

Amended Sec. 1271 [Sec. 2401]

Similar to the Senate bill with differences, including: a definition of eligible land; and adds water district, irrigation district, rural water district or association to the list of eligible partners. Amended Sec. 1271A [Sec.

CRS-57

Current Law/Policy—Conservation

No directly comparable provision. Includes elements of previously mentioned programs, primarily AWEP and CCPI.

No directly comparable provision. Includes elements of previously mentioned programs, primarily AWEP and CCPI.

Senate-Passed 2013 Farm Bill (S. 954)

and enhancement to carbon sequestration and others determined by USDA. Eligible partners include state or local governments, Indian tribes, farmer cooperatives, organizations or other nongovernmental entity with a history of working with producers on conservation projects, municipal water or waste treatment entity.

Amended Sec. 1271A [Sec. 2401(a)]

Authorizes competitive partnership agreements for a period not to exceed five years with a possible one-year extension. Describes the duties of partners as defining the scope of projects, conducting outreach, acting on behalf of producers to apply for assistance, leveraging financial and technical assistance, conducting assessments, and reporting results. Provides application content, criteria, and priority. Amended Sec. 1271B [Sec. 2401(a)]

Directs USDA to enter into contracts to provide technical and financial assistance to producers participating in projects with eligible partners and producers within a project area or critical conservation area independent of working through an eligible partner.

Program rules, requirements, and payments are to be consistent with the covered programs (ACEP, EQIP, &

CSP). Authorizes up to ten alternative funding arrangements with multi-state water agencies or authorities. Provides the Secretary discretionary authority to adjust the rules of a covered program, including operational guidance and requirements in order to simplify the application and evaluation process. Prohibits the adjustment of application of statutory requirements for a covered program, including appeals, payment limits, and conservation compliance. Requires the Secretary to enter into at least 10, but not more than 20 alternative funding arrangements. Where irrigation has not been used significantly for agricultural purposes, the Secretary shall not limit program eligibility on the basis of prior irrigation history. Amended Sec. 1271C [Sec. 2401(a)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

2401(a)]

Nearly identical to the Senate bill with minor differences.

Amended Sec. 1271B [Sec. 2401(a]

Similar to the Senate bill except the House bill does not include alternative funding arrangements. Amended Sec.

1271C [Sec. 2401(a)]

CRS-58

Current Law/Policy—Conservation

No directly comparable provision. Sec. 1240I(j) of the FSA, as amended, authorizes mandatory AWEP funds of $73 million in FY2009 and FY2010, $74 million in FY2011, and $60 million each fiscal year thereafter. Sec. 1240Q(h) authorizes Chesapeake

Bay Watershed program funds of $23 million in

FY2009, $43 million in FY2010, $72 million in

FY2011, & $50 million in FY2012. Sec. 1243(i) authorizes CCPI to use 6% of covered program for a state (90%) and national (10%) competition. Sec.

1240P(d) authorizes appropriations of $5 million annually for the Great Lakes basin program. [16

U.S.C. 3839aa-9(j); 3838bb-4(h); 3843(i);

3839bb-3(d)]

No comparable provision.

No comparable provision.

No comparable provision.

Other Conservation Programs

Sec. 1240M(e) of the FSA, as amended, authorizes the Conservation of Private Grazing Land

Program. Authorizes appropriations of $60 million annually through FY2013. [16 U.S.C, 3839bb(e)]

Senate-Passed 2013 Farm Bill (S. 954)

Authorizes mandatory RCPP funding of $110 million annually for FY2014-FY2018, to remain available until expended. Retains the CCPI use of 8% of covered program funds and acres, but amends the CCPI allocation to: 25% for a state competition, 40% for a national competition, and 35% for critical conservation areas (new category). Retains the AWEP and CCPI restriction on paying no administrative expenses of eligible partners.

Amended Sec. 1271D [Sec. 2401(a)]

Requires USDA to make information on selected projects publically available. Requires a report to Congress on

December 31, 2014 (and every 2 years thereafter) on the status of projects funded. Amended Sec. 1271E [Sec.

2401(a)]

Requires USDA to use 35% of the funds and acres available for RCPP (see amended Sec. 1271D above) for partnership agreements within no more than six critical conservation areas that expire after 5 years, subject to redesignation. Vital habitat for migrating wildlife is a factor the Secretary shall consider in determining the six geographical critical conservation areas. Amended Sec.

1271F [Sec. 2401(a)]

Amendments take effect on October 1, 2013. [Sec.

2401(b)]

Reduces and extends authorization of appropriations to

$30 million annually through FY2018. [Sec. 2501]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Authorizes mandatory RCPP funding of $100 million annually for FY2014-FY2018, to remain available until expended. Similar to the Senate bill except the House bill uses 6% of covered program funds and acres, and amends the allocation to include 25% for a state competition, 50% for a national competition, and 25% for critical conservation areas. Amended Sec. 1271D [Sec. 2401(a)]

Nearly identical to the Senate bill with minor differences.

[Sec. 2401(a)]

Similar to the Senate bill but limits the number of critical conservation areas to 8 that do not expire. Amended Sec.

1271F [Sec. 2401(a)]

Identical to the Senate bill. [Sec. 2401(b)]

Extends authorization of appropriations at $60 million annually through FY2018. [Sec. 2501]

CRS-59

Current Law/Policy—Conservation

Sec. 1240O(b) of the FSA, as amended, authorizes the Grassroots Source Water Protection

Program. Authorizes appropriations of $20 million annually through FY2013. [16 U.S.C. 3839bb-2(b)]

Sec. 1240R of the FSA, as amended authorizes state grants through a Voluntary Public Access and

Habitat Incentive Program to encourage landowners to provide public access for wildlifedependent recreation. Sets application contents and award priorities providing $50 million in mandatory funds for the period FY2009-2013. [16 U.S.C.

3839bb-5]

Sec. 1252 of FSA, as amended, authorizes an

Agriculture Conservation Experienced

Service Program (ACES), such that USDA can enter into agreements with organizations to provide technical assistance (excludes administrative tasks) using qualified individuals 55 years or older. [16

U.S.C. 3851]

Sec. 14(h)(2)(E) of the Watershed Protection and

Flood Prevention Act (P.L. 106-472), as amended, authorizes up to $85 million annually in discretionary funding for the Small Watershed

Rehabilitation Program for FY2008-FY2013 and

$100 million in mandatory funding for FY2009 to remain available until expended. [16 U.S.C.

1012(h)(2)(E)]

Sec. 403 of the Agricultural Credit Act of 1978 (P.L.

95-334), as amended, authorizes the Secretary to undertake emergency measures, including the purchase of floodplain easements, to retard runoff and soil erosion. [16 U.S.C.2203]

Sec. 2507 of the Food, Security and Rural

Investment Act of 2002 (P.L. 107-171, 2002 farm bill), as amended, authorizes USDA to transfer $175

Senate-Passed 2013 Farm Bill (S. 954)

Reduces and extends authorization of appropriations to

$15 million annually through FY2018. [Sec. 2502]

Reduces and extends authorization of $40 million in mandatory funding for the period of FY2014-FY2018.

Requires USDA to submit a report to Congress no later than two years after enactment on the effectiveness of the program. Amendments are effective Oct. 1, 2013.

[Sec. 2503]

Allows funding for each conservation program in the

Food Security Act of 1985, as amended, except CRP, to be used to carry out the ACES program. Amendments are effective Oct. 1, 2013. [Sec. 2504]

Extends authorization of appropriations through FY2018.

Does not authorize any new mandatory funding. [Sec.

2505]

Authorizes the Secretary to modify and terminate floodplain easements provided the current landowner agrees, and the modification or termination addresses a compelling public need for which there is no practical alternative, and is in the public interest. [Sec. 2506]

Deletes current section and replaces with new section that adds definitions for eligible land, program, and terminal lake. Also adds a new voluntary land purchase

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Extends annual authorization of appropriations ($20 million) through FY2018 and authorizes a one-time $5 million in mandatory funding to remain available until expended. [Sec. 2502]

Reduces and extends authorization for $30 million of mandatory funding for the period of FY2014-FY2018.

Requires USDA to submit a report to Congress no later than two years after enactment on the effectiveness of the program. [Sec. 2503]

Identical to the Senate bill. [Sec. 2504]

Extends authorization of appropriations through FY2018 and authorizes $250 million in mandatory funding for

FY2014 to remain available until expended. [Sec. 2505]

No comparable provision.

No comparable provision.

CRS-60

Current Law/Policy—Conservation

million of CCC funds to the Bureau of Reclamation to provide water for at-risk desert terminal

lakes. [43 U.S.C. 2211]

Senate-Passed 2013 Farm Bill (S. 954)

grant program with authorization to receive $25 million through appropriations to remain available until expended. Retains provisions for voluntary water purchases for desert terminal lakes, including the transfer of $150 million of CCC funds to the Bureau of

Reclamation. [Sec. 2507]

No comparable provision The Secretary of Agriculture is authorized to undertake emergency measures for runoff retardation and soil erosion prevention to safeguard lives and property from floods, drought and the products of erosion whenever fire, flood or other natural occurrence is causing or has caused a sudden impairment [16 U.S.C. 2203]

No comparable provision Requires the Secretary to conduct a wetland mitigation study no later than 180 days after enactment to assess the use of wetland mitigation to determine certain impacts on wildlife, provide recommendations for improving wetland mitigation procedures, for the benefit of wildlife, and allow producers greater access to the wetland mitigation process. Also requires the Secretary to submit a report of its findings to Congress no later than two years after the date of enactment [Sec. 2508]

Adds Indian tribes as being eligible to cooperate with and participate in the soil and water conservation program.

[Sec. 2509]

Requires that the Secretary give priority to “projects that address runoff retardation and soil erosion preventive measures needed to mitigate risks and remediate effects of catastrophic wildfires on land that is the source of drinking water for landowners and land users.” [Sec.

2507]

No comparable provision.

No comparable provision. The Secretary is authorized and directed to develop in cooperation with and participation by the public through conservation districts, state and national organizations and agencies, and other appropriate means, a national soil and water conservation program to be used as a guide in carrying out the activities of the Secretary which assist landowners and land users, at their request, in furthering soil and water conservation on the private and non-federal lands of the nation. [16 U.S.C. 2005]

Sec. 524(b) of the Federal Crop Insurance Act, as amended, authorizes the Agricultural

Management Assistance (AMA) program. AMA

Amendments made to AMA are discussed in the Crop

Insurance title (XI) [Sec. 11029]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Removes tree plantings and soil erosion control from the list of approved practices. Permanently authorizes $10 million in annual mandatory funding with 30% to NRCS

CRS-61

Current Law/Policy—Conservation

provides financial and technical to producers in 16 specified states for conservation practices, risk mitigation, and market diversification. Provides $15 million in annual mandatory funding in FY2008 through FY2014, and $10 million each fiscal year thereafter. Requires 50% to NRCS, 40% to RMA, and 10% to AMS. [7 U.S.C. 1524(b)]

Funding and Administration

Sec. 1241(a) of the FSA, as amended, authorizes mandatory funding through FY2012 (and FY2014 for

CSP, EQIP, FPP, and WHIP) to carry out various conservation programs. [16 U.S.C. 3841]

Note: Authorized funding levels for various programs are provided in individual program sections above.

No comparable provision.

Sec. 1241(c) of the FSA, as amended, allows CCC funds for conservation programs to also be used for technical assistance. [16 U.S.C. 3841(b)]

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes through FY2018 with funding specified for

ACEP and EQIP. Includes payment limits for specific CRP provisions. Provides $50 million to facilitate transfer of land subject to CRP contracts from retired or retiring owner/operators to beginning and socially disadvantaged farmers and ranchers for FY2014 through FY2018, to the maximum extent practicable. Provides $450 million for

ACEP in FY2014; $475 million for FY2015; $500 for

FY2016, $525 million in FY2017, and $250 million in

FY2018. EQIP is provided $1.5 billion for FY2014, $1.6 billion for FY2015, and $1.65 billion for each year

FY2016-FY2018. [Sec. 2601(a)]

Note: Authorized funding levels for various programs are provided in individual program sections above.

Allows mandatory funding made available for CRP, ACEP,

CSP, & EQIP to remain available until expended. Any funds from a previous fiscal year made available through modifications, cancellations, terminations and other related administrative actions may be reobligated in a different fiscal year, but it will reduce the program’s funding by an equal amount in the fiscal year the reobligation occurs. [Sec. 2601(b)]

Retains a similar provision and requires a report to

Congress by December 31, 2013 (and each subsequent year), detailing the amount of technical assistance requested and apportioned for each conservation program. Authorizes the Secretary to determine the

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

(conservation), 10% to AMS (organic certification), and

60% to RMA (risk management). [Sec. 2506]

Similar to Senate bill with different funding levels specified for EQIP and ACEP. Provides $25 million in FY2014-

FY2018 to facilitate transfer of land from retired or retiring owner/operators to beginning and socially disadvantaged farmers and ranchers in FY2014 through

FY2018to the maximum extent practicable. Provides

$425 million for ACEP in FY2014; $450 million for

FY2015; $475 for FY2016, $500 million in FY2017, and

$200 million in FY2018. EQIP is provided $1.75 billion annually for FY2014 -FY2018. [Sec. 2601(a)]

Note: Authorized funding levels for various programs are provided in individual program sections above.

Identical to the Senate bill. [Sec. 2601(b)]

Nearly identical to the Senate bill with minor differences.

[Sec. 2602]

CRS-62

Current Law/Policy—Conservation

Sec. 1241(d) of the FSA, as amended, requires that each state receives an aggregated minimum of $15 million annually from certain mandatory conservation programs in order to promote regional equity. [16 U.S.C. 3841(d)]

Sec. 1241(g) of the FSA, as amended, establishes an annual set-aside in EQIP and CSP from FY2009-

FY2013; 5% to beginning farmers or ranchers and

5% to socially disadvantaged farmers or ranchers.

[16 U.S.C. 3841(g)]

Sec. 1241(h) of the FSA, as amended, establishes reporting requirements for program enrollments and assistance under WRP, FPP, GRP, EQIP, AWEP,

CSP, and adjusted gross income waivers. [16 U.S.C.

3841(h)]

Senate-Passed 2013 Farm Bill (S. 954)

amount of technical assistance with the exception of technical assistance for CRP under subtitle D. Requires the Secretary to give priority to producers who request technical assistance to comply with subtitles B and C for the first time. Requires the Secretary to submit a report to Congress no later than 270 days after enactment on the extent to which conservation compliance requirements affect specialty crop growers. Requires the

Secretary to submit a report to Congress describing the extent to which highly erodible land/wetland conservation

(HEL/WC) determinations are being addressed in a timely manner, total number of requests completed the previous fiscal year, incomplete determinations on record, and the number of requests that remain outstanding more than 1 year since the date of receipt from producer. [Sec.

2602]

Eliminates the $15 million annual requirement and allows states in the first quarter of the fiscal year to establish that they can use a total of 0.6% of certain conservation funds. If established, those states may receive 0.6% of funds. [Sec. 2603]

Reauthorizes the EQIP and CSP set-aside through

FY2018. Provides preference for veteran farmers or ranchers eligible under the provision. [Sec. 2604]

Amends reporting requirements to reflect the repeal of

WRP, FPP, GRP, and AWEP and the addition of ACEP and RCPP. Adds reporting requirements for CSP payments and waivers granted to grasslands under ACEP.

[Sec. 2605]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Eliminates the Regional Equity provision by striking 16

U.S.C. 3841(d). [Sec. 2601]

Nearly identical to the Senate bill with minor differences.

[Sec. 2603]

Similar to the Senate bill except the House bill does not include reporting requirements for CSP payments and waivers granted to grasslands under ACEP. [Sec. 2604]

CRS-63

Current Law/Policy—Conservation

Sec. 1242(h) of the FSA, as amended, requires that

USDA review the conservation practices standards in effect on the date of enactment of the 2008 farm bill. [16 U.S.C. 3842(h)]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision

Sec. 1244 of the FSA, as amended, outlines administrative requirements for conservation programs including incentives for certain farmers or ranchers, privacy information, conservation plans, acreage limitations, and applications, among others.

[16 U.S.C. 3844]

Sec. 2904 of the Food, Conservation, and Energy

Act of 2008, (P.L. 110-246, 2008 farm bill) requires

USDA, in consultation with CCC, to issue rules and regulations implementing Title II provisions within

90 days. Waives certain rulemaking requirements.

Sec. 1261(b) of the FSA, as amended, requires

USDA to develop standard committee operating procedures for State Technical Committees. [16

U.S.C. 3861(b)]

Sec. 1211 et seq. of the FSA, as amended, requires that in exchange for certain USDA program benefits, a producer agrees to maintain a minimum level of conservation on highly erodible land. Highly erodible land can be considered eligible for program benefits if the land user agrees to cultivate the land using an approved conservation plan or qualifies for an exemption. Examples of affected benefit include commodity support programs (e.g., Title I farm bill programs), conservation programs, disaster payments, and operating loans. [16 U.S.C. 3811 et

seq.]

Adds veteran farmers and ranchers to the list of eligible persons authorized to receive incentives. Makes conforming amendments to reflect the new ACEP program. Clarifies that conservation payments are in addition to and not included in any payment limit caps.

Allows for flexible funding arrangements for Indian Tribes and includes EQIP and CSP as applicable programs. [Sec.

2606]

Amends and adds the 2008 farm bill regulations provision to a new Sec. 1246 of the FSA. Allows interim final rules to be effective upon issuance. Removes the 90 day promulgation requirement and CCC consultation. [Sec.

2607]

Amends provision to allow USDA to review and update standards as necessary. [Sec. 2608]

Conservation Compliance: Adds the federally funded portion of crop insurance premiums to the list of program benefits that could be lost if a producer is found to produce an agricultural commodity on certain converted wetlands or highly erodible land without an approved conservation plan or qualifying exemption. A person found in violation during a crop year shall be ineligible for crop insurance payment. This applies to reinsurance years subsequent to the date of the final determination of a violation and does not apply to the existing reinsurance year or any reinsurance year prior to the date of the final determination.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Replaces the 2008 farm bill title with the Federal

Agriculture Reform and Risk Management Act of 2013, which in effect requires USDA to review the conservation practice standards in effect on the date of enactment of this bill. [Sec. 2605]

Adds veteran farmers and ranchers to the list of eligible persons authorized to receive incentives. Makes conforming amendments to reflect the new ACEP program. Clarifies that conservation payments are in addition to and not included in any payment limit caps.

[Sec. 2607]

Identical to the Senate bill. [Sec. 2609]

Identical to the Senate bill. [Sec. 2608]

No comparable provision.

CRS-64

Current Law/Policy—Conservation Senate-Passed 2013 Farm Bill (S. 954)

Highly Erodible Land Program Ineligibility

Ineligibility for crop insurance shall 1) apply only to reinsurance years subsequent to the date of a violation. 2) not apply to the existing reinsurance year or any reinsurance year prior to the date of final determination.

A person subject to this part for the first time after May

1, 2013, would be given 5 reinsurance years to develop and comply with an approved conservation plan to remain eligible for payments.

For any person who would have been determined in violation of programs requiring compliance after enactment of the 2008 farm bill, and remains in violation must be granted 2 reinsurance years to develop and comply with an approved conservation plan.

Wetland Conservation Program Ineligibility

Under Wetland Conservation Program Ineligibility, a participant is provided one reinsurance year to initiate a conservation plan to remedy a violation before being determined ineligible.

A person subject to this subsection or subsection (d) for the first time will be granted 2 reinsurance years after the date of the final determination to take steps to remedy the violation.

For converted wetland violations determined converted after enactment of the 2008 farm bill but before May 1,

2013, and continue to be in violation—the person has 2 reinsurance years to begin the mitigation process.

For wetlands converted after May 1, 2013—the person will be ineligible for premium subsidy in subsequent reinsurance years unless certain factors apply.

When a wetland is converted prior to the date of enactment of the 2008 farm bill, ineligibility shall not

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

CRS-65

Current Law/Policy—Conservation

Sec. 1221 et seq. of the FSA, as amended, requires that in exchange for certain USDA program benefits, a producer agrees not to convert wetlands to crop production. The provision, known as Swampbuster, affects producers who plant a program crop on a wetland converted after December 23, 1985, or who convert wetlands, making agricultural commodity production possible, after November 28,

1990. Examples of affected benefit include

Senate-Passed 2013 Farm Bill (S. 954)

apply.

For an agricultural commodity for which an individual policy is available for the first time to a person after enactment of this bill, ineligibility shall only apply to conversions that are effective after the date on which the policy first becomes available to the person, and the person shall take steps to mitigate any prior conversion – not to exceed 2 calendar years.

Requires the Secretary to give the person one reinsurance year to begin mitigation if the person acted in good faith and did not intend to violate the section.

Requires the Secretary to provide an annual report to

Congress regarding ineligibility determinations limited to previous 12 months.

Persons seeking payment for a portion of a crop insurance policy must certify their compliance to the

Secretary. If the Secretary does not make timely determinations and a person is later found in violation, the person will remain eligible for payment

The Secretary has authority to determine the amount of the penalty for violations, with limits – not exceeding the total paid premium.

The Secretary has sole responsibility to determine whether a producer is eligible for crop insurance. [Sec.

2609(a)] [Sec. 2609(a)]

Adds the federally funded portion of crop insurance premiums to the list of program benefits that could be lost if a producer is found to have converted a wetland to crop production. [Sec. 2609(b)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

CRS-66

Current Law/Policy—Conservation

commodity support programs (e.g., Title I farm bill programs), conservation programs, disaster payments, and operating loans. [16 U.S.C. 3812 et

seq.]

Requires the Secretary to exempt a person from ineligibility provisions when certain factors apply, including cases where restoration is not greater than a 1-for-1 acreage basis unless more acreage is needed to provide equivalent functions and values.

[16 U.S.C. 3822]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Eliminates the requirement to provide equivalent functions and values when more acreage is needed in wetland conversion mitigation than a 1-for-1 acreage basis. [Sec. 2609]

Repeal of Superseded Program Authorities and Transitional Provisions

Sec. 1230 of the FSA, as amended authorizes and establishes the comprehensive conservation enhancement program between FY1996-FY2002.

[16 U.S.C. 3830]

Repeals the comprehensive conservation enhancement program. [Sec. 2701]

Sec. 1231A of the FSA, as amended, authorizes and establishes the emergency forestry conservation reserve program within CRP for areas suffering damage during the CY2005 hurricanes. [16 U.S.C.

3831a]

Sec. 1237-1237F of the FSA, as amended, authorizes and establishes the Wetlands Reserve Program

(WRP). [16 U.S.C. 3837-3837f]

Sec. 1238H-1238J of the FSA, as amended, authorizes and establishes the Farmland Protection

Program (FPP) and the Farm Viability Program. [16

U.S.C. 3838h-3838j]

Repeals the emergency forestry conservation reserve program with transition provisions for current contracts to receive CRP funding until expiration. Effective October

1, 2013. [Sec. 2702]

Repeals WRP with transition provisions for current contracts and easements to receive CCC funding until expiration. ACEP funding may also be used. Effective

October 1, 2013. [Sec. 2703]

Repeals FPP with transition provisions for current agreements and easements to receive CCC funding until expiration. ACEP funding may also be used once prior year funding is exhausted. Also repeals the Farm Viability

Program. Effective October 1, 2013. [Sec. 2704]

Requires the Secretary to submit a report to the House and Senate no later than 90 days after enactment of this act pertaining to all USDA administered programs that benefit the lesser prairie chicken. [Sec. 2610]

Identical to the Senate bill. [Sec. 2701]

Identical to the Senate bill. [Sec. 2702]

Similar to the Senate bill but does not allow the use of prior year CCC funding for contracts entered into before

October 1, 2012. Does allow the use of ACEP funding.

[Sec. 2703]

Similar to the Senate bill but does not allow the use of prior year CCC funding for contracts entered into before

October 1, 2012. Does allow the use of ACEP funding.

[Sec. 2704]

CRS-67

Current Law/Policy—Conservation

Sec. 1238N-1238P of the FSA, as amended, authorizes and establishes the Grasslands Reserve

Program (GRP). [16 U.S.C. 3838n-3838p]

Sec. 1240I of the FSA, as amended, authorizes and establishes the Agricultural Water Enhancement

Program (AWEP) within EQIP. [16 U.S.C. 3839aa-

9]

Sec. 1240N of the FSA, as amended, authorizes and establishes the Wildlife Habitat Incentives Program

(WHIP). [16 U.S.C. 3839bb-1]

Senate-Passed 2013 Farm Bill (S. 954)

Repeals GRP with transition provisions for current contracts, agreements, and easements to receive CCC funding until expiration. ACEP funding may also be used.

Effective October 1, 2013. [Sec. 2705]

Repeals AWEP with transition provisions for current contracts and agreements to receive CCC funding until expiration. RCPP funding may also be used once prior year funding is exhausted. Effective October 1, 2013.

[Sec. 2706]

Repeals WHIP with transition provisions for current contracts to receive CCC funding until expiration. EQIP funding may also be used once prior year funding is exhausted. Effective October 1, 2013. [Sec. 2707]

Repeals the Great Lakes basin program effective October

1, 2013. [Sec. 2708]

Sec. 1240P of the FSA, as amended, authorizes and establishes the Great Lakes Basin Program for Soil

Erosion and Sediment Control. [16 U.S.C. 3839bb-

3].

Sec. 1240Q of the FSA, as amended, authorizes and establishes the Chesapeake Bay Watershed program. [16 U.S.C. 3839bb-4]

Sec. 1243 of the FSA, as amended, authorizes and establishes the Cooperative Conservation

Partnership Initiative (CCPI). [16 U.S.C. 3843]

Sec. 1239-1239D of the FSA, as amended, authorizes and establishes the environmental easement program between CY1991-CY1995. [16 U.S.C.

3839-3839d]

No comparable provision.

Repeals the Chesapeake Bay Watershed program with transition provisions for current contracts, agreements, and easements entered into under the program to receive

CCC funding until expiration. RCPP funding may also be used. Effective October 1, 2013. [Sec. 2709]

Repeals CCPI with transition provisions for current contracts and agreements to receive CCC funding until expiration. RCPP funding may also be used once prior year funding is exhausted. Effective October 1, 2013.

[Sec. 2710]

Repeals the environmental easement program. [Sec.

2011]

Provides technical amendments and spelling corrections.

[Sec. 2012]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Similar to the Senate bill but does not allow the use of prior year CCC funding for contracts entered into before

October 1, 2012. Does allow the use of ACEP funding.

[Sec. 2705]

Similar to the Senate bill but does not allow the use of prior year CCC funding for contracts entered into before

October 1, 2012. Does allow the use of RCPP funding.

[Sec. 2706]

Similar to the Senate bill but does not allow the use of prior year CCC funding for contracts entered into before

October 1, 2012. Does allow the use of EQIP funding.

[Sec. 2707]

Identical to Senate bill. [Sec. 2708]

Similar to the Senate bill but does not allow the use of prior year CCC funding for contracts entered into before

October 1, 2012. Does allow the use of RCPP funding.

[Sec. 2709]

Similar to the Senate bill but does not allow the use of prior year CCC funding for contracts entered into before

October 1, 2012. Does allow the use of RCPP funding.

[Sec. 2710]

Identical to the Senate bill. [Sec. 2711]

Nearly identical to the Senate bill with minor differences.

[Sec. 2712]

CRS-68

Title III. Trade

Current Law/Policy—Trade Senate-Passed 2013 Farm Bill (S. 954)

Food for Peace Act (All section references in this subsection are to this act.)

No comparable provision. No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Section 202(e)(1) Support for Eligible

Organizations. Provides that of the funds made available for Title II emergency and nonemergency food assistance in each fiscal year, the

Administrator of the U.S. Agency for International

Development (USAID) shall make available to eligible organizations (private voluntary organizations, cooperatives and intergovernmental organizations) not less than 7.5% nor more than

13% to assist them in establishing new programs, meeting specific administrative, management, personnel and internal transportation and distribution costs for carrying out programs, and improving and implementing methodologies for food aid programs, including monitoring, and evaluation. [7 U.S.C. 1722(e)(1)]

Food Aid Quality. Section 202(h)(1) provides that the Administrator of USAID shall use the funds made available each fiscal year from 2009 and subsequent fiscal years to carry out Title II to assess the types and quality of agricultural commodities and products donated as food aid; adjust products and formulations (including the potential introduction of new fortificants and products) as necessary to cost-effectively meet nutrient needs of target populations; and to test

Amends Section 202(e)(1) to increase the funds made available to eligible organizations for program, administrative and distribution activities to not less than

13% nor more than 15% of funds available for Title II emergency and nonemergency assistance. [Sec. 3001]

Replaces and expands Section 202(h)(1) to require that the Administrator use funds available to carry out Title II to assess types and quality of agricultural commodities donated as food aid; adjust products and formulation, as necessary to meet nutrient needs of target populations; test prototypes; adopt new specifications or improve existing specifications for micronutrient food aid products, based on latest development in food and nutrition science; develop new program guidance for eligible organizations to facilitate improved matching of

Amends Sec. 201 of the Food for Peace Act to specify that Title II emergency and nonemergency assistance is to be implemented by the Administrator of the U.S. Agency for International Development (USAID). Adds building resilience to mitigate food crises and reduce need for emergency aid as program objectives of title II. [Sec.

3001]

Reduces funds available to eligible organizations to not less than 7.5% nor more than 11% for program, administrative, and distribution activities. [Sec. 3002]

Requires the Administrator in consultation with the

Secretary of Agriculture (Secretary) to establish a mechanism to assure food aid quality. Inserts new language requiring evaluation of agricultural commodities and products in different program settings and for particular recipient groups; establish and implement protocols for quality assurance of food products; and periodically update program guidelines on recommended use of agricultural commodities and food products in food aid programs; requires that the Administrator consult

CRS-69

Current Law/Policy—Trade

prototypes. Authorizes not more than $4.5 million of funds made available for fiscal years 2009 through 2011 to carry out this section. [7 U.S.C.

1722 (h)]

Senate-Passed 2013 Farm Bill (S. 954)

products to purposes; develop improved guidance on how to address nutritional efficiencies among long-term recipients of food aid; and evaluate the performance and cost-effectiveness of new/modified food products and program approaches to meet nutritional needs of vulnerable groups. Extends authority to fund this section for fiscal years 2014 through FY2018. [Sec. 3002]

Extends current minimum levels of assistance through

FY2017. [Section 3003]

Minimum Levels of Assistance. Requires the provision annually of a minimum of 2.5 million metric tons (mmt) of commodities under Title II, of which 1.875 mmt are designated for nonemergency programs under Title II. Both requirements may be waived, under certain conditions, by the USAID

Administrator [7 U.S.C 1724]

Food Aid Consultative Group. Establishes the

Food Aid Consultative Group (FACG) composed of the Administrator of USAID, the Secretary of

Agriculture, representatives of eligible organizations, and indigenous nongovernmental organizations in recipient countries, U.S. producer groups, and representatives of the maritime transport sector who review overall program effectiveness.

[7 U.S.C. 1725]

Reauthorizes FACG through December 31, 2018. [Sec.

3004]

Administration. Sec. 207(f). Provides for program oversight, monitoring, and evaluation, and requires that systems be established to accomplish these tasks. Requires an implementation report be prepared, to be reviewed by GAO, along with annual reporting. Authorizes appropriations up to

$22 million of Title II funds be made available annually (FY2008-13). Requires procedures be developed for providing commodities overseas in a timely manner and according to delivery schedules.

Authorizes use of up to $8 million of Title II funds

Amends Sec. 207(f) to authorize activities under this section during the period FY2014 through FY2018.

Removes requirements that GAO undertake a study of

USAID’s oversight of nonemergency food aid programs.

[Sec. 3005]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

with the Secretary in carrying out food quality activities.

Reduces funding for food aid quality activities from $4.5 million for fiscal years 2009 through 2011 to not more than $1 million for fiscal years 2014 through 2018. [Sec.

3003]

Same as the Senate bill. [Sec. 3004]

Reauthorizes the FACG through 2018.

Adds representatives from the U.S. agricultural processing sector to the list of members of the FACG.

Amends Section 205(d) to require the Administrator to consult with the FACG 45 days in advance of the issuance of implementation regulations, handbooks, and guidelines.

Requires that the Administrator seek input and consult with the FACG on matters relating to food aid quality.

[Sec. 3005]

Requires the Administrator to promptly issue guidance with respect to changes in operation or implementation of the Title II program.

Requires that not less than 270 days after enactment of the farm bill, the Administrator must issue all regulations and revisions to agency guidance necessary to implement amendments made to Title II by the 2013 farm bill.,

Provides funding of up to $10 million for each fiscal year for program oversight, monitoring and evaluation through fiscal year 2018. (Reduced from $22 million for each

CRS-70

Current Law/Policy—Trade

to be used for the Famine Early Warning System

Network. Authorizes $2.5 million (of the $22 million) to upgrade information technology systems in FY2009 to enhance monitoring of Title II nonemergency programs. [7 U.S.C. 1726a]

Assistance for Stockpiling and Rapid

Transportation, Delivery, and Distribution of

Shelf-Stable Prepackaged Foods. Authorizes grants for this assistance of $8 million each FY2008-

2013. [7 U.S.C. 1726b(f)]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

fiscal year 2010 to 2012.)

Requires the Administrator to report, within 270 days after the date of enactment, to the House and Senate

Agriculture Committees, and the House Foreign Affairs

Committee on the implementation of regulations and guidance; plus surveys, monitoring, reporting and audits of programs conducted by the eligible organization and by intergovernmental organizations such as the WFP. [Sec.

3006]

Reauthorizes this provision through FY2018. [Sec. 3006] Same as the House bill. [Sec. 3007]

No comparable provision.

Limitation on Total Volume of Commodities

Monetized. Amends Section 403 General Provisions of the Food for Peace Act [7 U.S.C. 1733] to require that the rate of return for a commodity monetized (sold in recipient countries) be at least 70%. The “rate of return” is defined as equal to the proportion that the proceeds the implementing partners generate through monetization bears to the cost to the federal government to procure and ship the commodities to a recipient country for monetization. The USAID Administrator may waive this requirement but report the reasons for granting the waiver and other information to House and Senate

Agriculture Committees, House Foreign Affairs, Senate

Foreign Relations, and House and Senate Appropriations

Committees. [Sec. 3007]

No comparable provision.

No comparable provision.

Impact on Local Farmers and Economy. Section

403(b) of the Food for Peace Act is amended to require the Secretary or the Administrator as appropriate to seek information as part of the proposal and submission process from implementing partners on the potential benefits to the local economy of sales of agricultural commodities within the recipient country.

CRS-71

Current Law/Policy—Trade Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Amends Sec. 403(e) to require that monetized commodities be sold at “fair market value” rather than at

“reasonable prices.” Requires the Secretary and

Administrator to coordinate assessments and the development of approaches to be used by implementing organizations for determining the fair market value.

Requires Administrator to submit to Congress 180 days after enactment and annually thereafter a report specifying amount of funds (for administrative costs, indirect cost recovery, internal transportation storage and handling and associated distribution costs) provided to each eligible organization that receives assistance under the act and describing how funds were used by eligible organizations. [Sec. 3008]

No comparable provision. Use of Commodity Credit Corporation. Sec.

406 of the Food for Peace Act permits the

Commodity Credit Corporation to pay for costs associated with commodities made available, including cost of acquisition, costs of packaging, enrichment, preservation or fortification; costs of processing, transportation, and handling up to the time of delivery to U.S. ports; freight charges from

US. ports (or designated Canadian transshipment ports) to ports of entry abroad; and costs of ocean transport. [7 U.S. C. 1736]

Procurement, Transportation, and Storage of Agricultural Commodities for

Prepositioning in the United States and

Foreign Countries. Sec. 407 authorizes the use of available funds to procure, transport and store agricultural commodities for prepositioning in the

U.S. and abroad. Authorizes USAID to use Title II funds to procure transport, and store commodities for prepositioning. Authorizes to be appropriated up to $10 million in each of FY2008 through

FY2013 for these purposes. [7 U.S.C. 1736(c)(4)]

Revises Sec. 406 of the Food for Peace Act to permit use of funds available under the Food for Peace Act to pay costs of up to 20% of activities conducted in recipient countries by nonprofit voluntary organizations, cooperative, or intergovernmental organizations. [Sec.

3008]

Extends authority for prepositioning until 2018.

Authorizes from $10 million to $15 million of funds made available for prepositioning. [Sec. 3009]

In addition to extending authority for prepositioning through 2018 and authorizing from $10 million to $15 million for such purposes, also authorizes the

Administrator to establish additional prepositioning sites in foreign countries. [Sec. 3009]

CRS-72

Current Law/Policy—Trade

Annual Report Regarding Agricultural Trade

Programs and Activities. Sec. 407(f). Requires the Secretary and the Administrator to report to the appropriate committees on the programs and activities carried out under the act. Also requires the Administrator to report annually on the programs, commodities, provided, and transportation and administrative costs incurred.

Expiration Date. Provides that no agreement under the Food for Peace Act shall be entered into after December 31, 2013.

Minimum Level of Nonemergency Food

Assistance. Sec. 412(e) specifies that of the funds available for programs under the act, not less than

$375 million (FY2009), $400 million (FY2010), $425 million (FY2011), and $450 million (FY2012 and

FY2013) shall be expended for nonemergency food aid. This “safe box” requirement can be waived only if the President determines that an extraordinary food emergency exists, that resources from the Bill Emerson Trust (see below) have been exhausted, and the President has submitted a request for additional appropriations to

Congress equal to the amount needed to reach the required spending level for nonemergency food aid and the amount exhausted under the Emerson

Trust. [7 U.S.C. 1736f]

Micronutrient Fortification Programs. Section

415 of the Food for Peace Act establishes a micronutrient fortification program for food aid provided to recipient countries through FY2013 [7

U.S.C. 1736g-2]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Extends authority to enter into agreements to December

31, 2018. [Sec. 3010]

Repeals Section 412(e) and requires that of funds made available under the Food for Peace Act, not less than 20% nor more than 30% shall be expended for nonemergency food aid under Title II. Further, the amount made available to carry out nonemergency food aid programs under Title II shall not be less than $275 million for any fiscal year. [Sec. 3011]

Extends Micronutrient Fortification Programs through

FY2018. [Sec. 3013]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Amends Sec. 407(f) of the Food for Peace Act to include programs and activities under the McGovern-Dole

International Food for Education and Child Nutrition

Program. [Sec. 3010]

Identical to the Senate bill. [Sec. 3011]

Authorizes $2 billion each year FY2014 through FY2018 for emergency and nonemergency food aid (reduced from

$2.5. billion each fiscal year under the 2008 farm bill).

Requires $400 million each year FY2014 through FY2018 for nonemergency assistance (down from $450 million in

FY2012 under the 2008 farm bill. Does not alter “safe box” waiver requirements. [Sec. 3012]

Identical to the House bill. [Sec. 3013]

CRS-73

Current Law/Policy—Trade

John Ogonowski and Doug Bereuter Farmer-

to-Farmer Program. Authorizes voluntary technical assistance to raise farm production/incomes in developing and middle income countries, emerging markets, and in Sub-

Saharan Africa and the Caribbean Basin. Program is funded at the greater of not less than $10 million or 0.5% of funds available under the act, through

FY2013. [7 U.S.C. 1737]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Extends program through FY2018 and provides for annual funding of not less than the greater of $10 million or 0.6% of the amounts made available for each of fiscal years

2013 through 2018 to carry out the Farmer-to-Farmer program. [Sec. 3014]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Extends program through FY2018 and provides that not less than the greater of $15 million or 0.5% of funds available under the act shall be used to carry out the

Farmer-to-Farmer program. [Sec. 3014]

Other Food Aid Programs

Food for Progress Act of 1985. The Food for

Progress Act provides commodities to support countries that have made commitments to expand free enterprise in their agricultural economies.

Authorized through FY2013.

[7 U.S.C. 1736o]

Bill Emerson Humanitarian Trust. Establishes a reserve of commodities and cash to meet emergency food needs in developing countries when there are unanticipated needs or when U.S. domestic supplies are short. The Trust can be held as a combination of cash and commodities. The commodities in the Trust may be exchanged for funds available under Title II or the McGovern-Dole

Program, or for sale in the market. The funds in the

Trust can be invested in low-risk short-term securities or instruments. [7 U.S.C. 1736f-1 note]

Prohibition on Assistance for North Korea. No

Title II funds can be used to provide assistance to North

Korea. The President can waive this funding prohibition if the President determines and certifies to the House and

Senate Agriculture Committees, the House Foreign

Affairs Committee and the Senate Foreign Relations

Committee that the waiver is in the national interest of the United States. [Sec. 3015]

Extends program through 2018. Applies the flexibility and limitation on monetization of commodities provisions that apply to Title II nonemergency programs.(See Sec. 3007 and Sec. 3008 above.) [Sec. 3201]

Extends authority to replenish stocks to maintain the

Trust until September 30, 2018. [Sec. 3202]

No comparable provision.

Same as the Senate bill. [Sec. 3201]

Same as the Senate bill. [Sec. 3202]

CRS-74

Current Law/Policy—Trade

McGovern-Dole International Food for

Education and Child Nutrition Program.

Makes available U.S. agricultural commodities, financial and technical assistance to carry out food for education and child nutrition programs in foreign countries. Authorizes such sums as may be necessary during FY2008-2013. [7 U.S.C. 1736o-1]

Local and Regional Food Aid Procurement

Pilot Projects. Establishes a pilot program for local and regional purchase of commodities for famine prevention to be conducted by USDA with

$60 million in CCC funding (FY2009-2012). [7

U.S.C. 1726c]

No comparable provision

Trade Provisions

Export Credit Guarantee Program.

Authorizes the Commodity Credit Corporation to guarantee the credit made available to finance commercial export sales of agricultural commodities. The CCC is required to make available the lesser of $5.5 billion annually of guarantees or the sum of guarantees supported by

$40 million in budget authority plus the amount of guarantees that the CCC can make available from unobligated prior fiscal year balances. [7 U.S.C.

56419(b)]

Senate-Passed 2013 Farm Bill (S. 954)

Authorizes such sums as necessary to carry out the

McGovern-Dole program for each of FY 2014 through

FY2018. [Sec. 3204]

Establishes a local and regional procurement program with appropriations of $60 million authorized for each of

FY2014 through FY2018. Preference in carrying out this program may be given to eligible organizations that have, or are working toward, projects under the McGovern-

Dole International Food for Education and Child

Nutrition Program. [Sec. 3207]

Donald Payne Horn of Africa Food Resilience

Program. Establishes a pilot program to effectively integrate all U.S.-funded emergency and long-term development activities that aim to improve food security in the Horn of Africa. Authorizes $10 million to carry out pilot project, subject to appropriations. Requires

USAID Administrator to report to appropriate committees of Congress on the outcomes of the project.

[Sec. 3208]

Amends 7 U.S.C. 5641(b) by striking the section and replacing it with the requirement that the Commodity

Credit Corporation make available for each year FY2014 through FY2018 credit guarantees in an amount equal to not more than $4.5 billion. [Sec. 3101]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Same as the Senate bill. [Sec. 3204]

No comparable provision.

No comparable provision.

Reauthorizes the Export Credit Guarantee Program through FY2018. [Sec. 3101]

CRS-75

Current Law/Policy—Trade

Market Access Program. The Market Access

Program (MAP) provides for CCC funding of export market development for U.S. agricultural commodities (generic and branded) by eligible trade organizations. Authorizes CCC funding of $200 million annually, Provides also for market development for products that are organicallyproduced. [7 U.S.C. 5623]

Foreign Market Development Cooperator

Program. The Foreign Market Development

Cooperator Program (FMDP) authorizes USDA to establish and carry out a program to maintain and develop foreign markets for bulk or generic U.S. agricultural commodities and products. [7 U.S.C.

5721]

Promotion of Agricultural exports to

Emerging Markets. The Emerging Markets

Program (EMP) promotes U.S. agricultural exports in emerging markets. Authorizes direct credits or export credit guarantees of not less than $1 billion each fiscal year 2008 through 2013 for exports to emerging markets. Requires export credit guarantees be made available to establish or improve facilities and services for U.S. products. In addition, authorizes up to $10 million each fiscal year 2008 through 2013 of CCC funding to be made available to carry out technical assistance activities that promote the export of U.S. agricultural products and address technical barriers to trade in emerging markets, technical assistance can include feasibility studies, market research, industry sector assessments, specialized training, and business workshops. [7 U.S.C. 5622 note]

Technical Assistance for Specialty Crops).

Technical Assistance for Specialty Crops (TASC) authorizes USDA to address barriers prohibiting or

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes MAP at current mandatory funding levels of

$200 million annually through FY2018. [Sec. 3102]

Reauthorizes at current mandatory funding levels of $34.5 million annually through FY2018. [Sec. 3103]

Extends EMP through fiscal year 2018. [Sec. 3203]

Reauthorizes TASC at current mandatory funding levels of $9 million annually through FY2018. [Sec. 3205]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill.[Sec. 3102]

Identical to the Senate bill. [Sec. 3103]

Identical to the Senate bill. [Sec. 3203]

Reauthorizes TASC as in the Senate bill. In addition requires the Secretary of Agriculture to conduct a study

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Current Law/Policy—Trade

threatening exports of U.S. specialty crops.

Authorizes mandatory CCC funds reaching $9 million annually (FY2011-FY2013). [7 U.S.C. 5680]

Global Crop Diversity Trust. Requires USAID

Administrator to contribute to the Global Crop

Diversity Trust for germ plasm conservation (up to

$60 million over 5 years) provided that the U.S. contribution not exceed one-fourth of the total of funds contributed to the Trust from all sources.

[22 U.S.C. 2220a note]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes U.S. contribution to the Global Crop

Diversity Fund for FY2013-FY2018. [Sec. 3206]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

of the U.S. market for Atlantic Spiny Dogfish. [Sec. 3205]

Reauthorizes U.S. contribution to the Global Crop

Diversity Fund at $50 million for the period FY2014 through FY2018. [Sec. 3206]

Under Secretary of Agriculture for Trade and

Foreign Agricultural Affairs. Requires the Secretary, in consultation with the House and Senate Agriculture

Committees and House and Senate Appropriations

Committees to propose a plan for reorganization of the trade functions of USDA, including the establishment of an Under Secretary of Agriculture for Trade and Foreign

Agricultural Affairs. The Secretary is required to report on the plan 180 days after the farm bill’s enactment, and within one year of submission of the report, the Secretary shall implement the reorganization plan including establishment of the Under Secretary position. [Sec.

3209]

No comparable provision

Under Secretary of Agriculture for Foreign

Agricultural Services. Authorizes the Secretary to establish the position of Under Secretary of Agriculture for Foreign Agricultural Services. [Sec. 3207]

Department of Agriculture Certificates of Origin.

Requires the Secretary of Agriculture to seek to ensure that USDA certificates of origin are accepted by any country with which the United States has entered into a

Free Trade Agreement providing preferential duty treatment. [Sec. 3208]

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Title IV. Nutrition

Current Law/Policy—Nutrition Senate-Passed 2013 Farm Bill (S. 954)

Supplemental Nutrition Assistance Program (SNAP)

Governmental or nonprofit grocery delivery

services. Nonprofit grocery delivery services for the elderly and disabled are not defined as a “retail food store” that can accept SNAP benefits. Such establishments must negotiate waivers with USDA in order to accept SNAP benefits. Under various authorities and waivers other retailers may conduct deliveries to SNAP participants, but fees may not be paid with SNAP benefits. [7 U.S.C. 2012(k),

(p)]

Standard Utility Allowances. A SNAP household can use a Low Income Home Energy

Assistance Program (LIHEAP) payment (regardless of the amount of that payment) to document that the household has incurred heating and cooling costs. This documentation triggers a standard utility allowance (SUA), a figure that enters into the SNAP benefit calculation equation. Unless the household is already receiving the maximum SNAP benefit, a household’s monthly benefit can increase if the SUA calculation results in an excess shelter deduction.

[7 U.S.C. 2014(e)(6)(C)]

Broad-based Categorical Eligibility. States may opt to implement broad-based categorical eligibility.

Under broad-based categorical eligibility, a SNAP applicant that receives Temporary Assistance for

Needy Families (TANF) cash assistance,

Supplemental Security Income (SSI), state-funded general assistance cash benefits, or any TANFfunded benefit, may be deemed eligible for SNAP benefits, if certain income conditions are met. Per

USDA regulation, the TANF-funded benefit must

Adds to the definition of retail food store any “public or private nonprofit food purchasing and delivery service” that serves the elderly and disabled. There is considerable drafting variation between this and the H.R. 1947 provision, but the policy changes are largely the same.

[Sec. 4001]

Only LIHEAP payments above $10 would confer this potential advantage. Payments of $10 or less would no longer entitle a household to earn a “standard utility allowance" (SUA) during the benefit calculation process. If a household received below $10 in LIHEAP assistance, households would have to present alternate documentation of utility costs in order to have utilities factored into calculating their excess shelter deduction.

[Sec. 4003]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Adds “governmental and non-profit food purchasing and delivery service[s]” that serve the elderly and disabled to the definition of a retail food store, emphasizing that delivery fees are not to be paid with SNAP. Requires

USDA regulations to include certain protections and limitations. [Sec. 4003]

Only LIHEAP payments above $20 would confer this potential advantage. Payments of $20 or less would no longer entitle a household to earn a “standard utility allowance" (SUA) during the benefit calculation process. If a household received below $20 in LIHEAP assistance, households would have to present alternate documentation of utility costs in order to have utilities factored into calculating their excess shelter deduction.

[Sec. 4007]

Ends “broad-based categorical eligibility," and limits categorical eligibility to SNAP applicants that receive

Temporary Assistance for Needy Families (TANF) cash assistance, Supplemental Security Income (SSI), and statefunded general assistance cash benefits. [Sec. 4005]

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Current Law/Policy—Nutrition

be for households at or below 200% of the federal poverty line. [7 U.S.C. 2014(a)]

Verification of Immigration Status. Under current law and regulation, states must verify noncitizens’ immigration status, but do not have to use the U.S. Citizenship and Immigration Services’

Systematic Alien Verification for Entitlements

(SAVE) Program. [7 U.S.C. 2020(p); 42 U.S.C.

1320b–7]

Student Eligibility. In most cases, college students ages 18-50 (attending higher education courses half-time or more) are ineligible for SNAP.

A student enrolled in an institution of higher education more than half-time is eligible for SNAP benefits only if the individual meets one or more of the following qualifications: (1) under 18 years old, or age 50 or older; (2) disabled; (3) employed at least 20 hours/week or participates in a work-study program during the school year; (4) a parent (in some circumstances); (5) receiving Temporary

Assistance for Needy Families (TANF) cash assistance benefits; OR (6) enrolled in school because of participation in certain programs. One program enrollment exception is a “SNAP

Employment and Training” program. [7 U.S.C.

2015(e)]

Lottery and Gambling Winnings. No comparable provision. Authorizing statute establishes income and asset thresholds for SNAP eligibility, including that lump-sum, non-recurring payments are to be counted as resources (assets) not income. [7 U.S.C. 2014]

Excess Medical Expense Deduction.

Households that include an elderly or disabled member may have excess medical expenses, as

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Adds the requirement that those students enrolled in post-secondary institutions as a requirement of participation in “SNAP Employment and Training,” must be enrolled in certain employment-oriented training to qualify for SNAP; specifically, this includes certain career and technical education, remedial courses, basic adult education, literacy, or English as a second language. [Sec.

4004]

Creates explicit ineligibility for households that receive

“substantial lottery or gambling winnings” (as determined by USDA) until the household meets the SNAP resources

(assets) and income eligibility limits. State SNAP agencies are to establish agreements with the state gaming agency in order to make determinations of winnings. [Sec. 4005]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Requires all SNAP agencies to verify immigration status using the SAVE system. [Sec. 4015]

Identical to the Senate bill. [Sec. 4008]

Identical to the Senate bill. [Sec. 4010]

Requires USDA to promulgate regulations to ensure that medical marijuana is not treated as a medical expense in the calculation of the excess medical expenses deduction.

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Current Law/Policy—Nutrition

defined and calculated by statute, deducted from the household’s gross income. It has been reported that some agencies are including medical marijuana expenses in this calculation. FNS issued a policy memorandum on July 10, 2012 clarifying that this is against SNAP law. [7 U.S.C. 2014(e)(5)]

Retail Food Store Definition. SNAP benefits can be accepted only by authorized retailers.

Among other application requirements, USDA authorization of a retailer is based on the retailer’s inventory and sales. SNAP law defines a retail food store, and includes within that definition an establishment that either (1) offers, on a continuous basis, a variety of foods in each of 4 staple food categories [defined in 7 U.S.C. 2012(r)(1)], including perishable foods in at least two of the categories, or (2) has over 50% of its sales in staple foods.

Authority exists to consider the nature and extent of the food business conducted. [7 U.S.C.

2012(p)(1), 2018]

Electronic Benefit Transfer, Manual

Vouchers. An electronic benefit transfer (EBT) point-of-sale machine can be provided by the state agency to the retailer at no cost to the retailer

(many retailers choose to purchase credit card machines that also accept EBT). Although SNAP has transitioned to being fully EBT, and paper coupon (“food stamps”) are no longer offered, authority exists to accept manual SNAP vouchers.

Some small retailers use these rather than acquiring an EBT machine. No statutory requirements regarding unique terminal identification numbers for EBT machines. [7 U.S.C. 2016(f), 2018(h)(3)]

Senate-Passed 2013 Farm Bill (S. 954)

Amends retail food store definition so that perishable foods must be provided in at least three of the staple food categories. [Sec. 4006(a)]

Gives USDA the authority to consider whether the applicant store “is located in an area with significantly limited access to food” as well as the store’s “depth of stock, variety of staple food items, and the sale of

[ineligible items listed in Food and Nutrition Act].” The bill also adds and strengthens requirements about the adequacy of the store’s EBT service. [Sec. 4006(c), (d)]

Shifts the costs of EBT machinery to retailer (with exemptions for certain retailers, such as farmers’ markets). Bars states from issuing manual SNAP vouchers or allowing retailers to accept manual vouchers unless USDA makes such a determination that circumstances or categories of retailers warrant use of manual vouchers. Requires EBT service providers to provide for and maintain “unique terminal identification number information.” [Sec. 4006(b)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

[Sec. 4006]

Amends retail food store definition so that perishable foods must be provided in at least three of the staple food categories (identical to Senate bill). [Sec. 4002(a)]

Like Senate bill, gives USDA the authority to consider whether the applicant store “is located in an area with significantly limited access to food” and adds and strengthens requirements about the adequacy of the store’s EBT service. Does not include USDA authority to consider the store’s “depth of stock, variety of staple food items, and the sale of [ineligible items listed in Food and Nutrition Act].” [Sec. 4002 (c), (d)]

Similar to the Senate bill except in the “unique terminal identification number information” provision, (i) the

House chair’s mark includes further specifications for

USDA’s rulemaking including “the Secretary shall consider existing commercial practices for other point-of-sale debit transactions” and that proposed regulations must be issued “not earlier than 2 years after the date of enactment,” (ii) requires retailers to maintain “unique business identification” in addition to “terminal identification number” Also, specifies that the exemption to cost-sharing may apply to, not only farmers’ markets, but other “direct-to-consumer” markets. [Sec. 4002(b)]

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Replacement of Cards. Permits state agencies to collect a fee for replacement of an EBT card by reducing the monthly allotment of the participating household. [7 U.S.C. 2016(h)(8)]

Technology Modernization. No explicit provisions regarding non-wired EBT machinery for redemption or online SNAP transactions are included in the authorizing statute. From FY2012 appropriations, USDA is using $4 million to expand

EBT point of sale devices at farmers markets. A number of regulations would need to be rewritten or waived to allow redemption via the Internet. [7

U.S.C. 2016(h), P.L. 112-55]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Adds additional measures regarding “purposeful loss of cards.” USDA may require a state agency to decline a request for a replacement card unless the household provides an explanation for the loss of the card. The

USDA requirements must include protections for vulnerable individuals (homeless, disabled, victims of crimes). USDA is to assure certain procedures occur and that procedures are consistent with participants’ existing due process protections. [Sec. 4007]

Requires, depending on results of a demonstration project, that USDA authorize retailers with EBT mobile technologies, if retailers meet certain requirements.

Authorizes and requires the demonstration project and report to be completed by July 1, 2015, and USDA to authorize wireless retailers beginning January 1, 2016, unless USDA reports to congressional committees of jurisdiction that it determines authorization should not be implemented. Mobile technologies are defined as

“electronic means other than wired point of sale devices.”

A similar statutory provision is included for USDA to authorize retailers to accept benefits online, contingent upon results of a demonstration project and a report to

Congress. [Sec. 4008]

Community-Supported Agriculture. Makes SNAP benefits redeemable for shares of Community-Supported

Agriculture (CSA). In a CSA, a farmer or community garden grows food for a group of local residents— members, shareholders, or subscribers—who pledge support to a farm at the beginning of each year by agreeing to cover the farm’s expected costs and risks. In return, the members receive shares of the farm's production during the growing season. [Sec. 4009]

Nearly identical to the Senate bill. [Sec. 4011]

Mobile technologies provision is similar to the Senate bill except the language appears to limit the authority to a

USDA pilot/demonstration on mobile technologies and does not create the authority to continue the redemptions after the end of pilot. The House provision does not set a date for the mobile technologies report to

Congress. [Sec. 4012] With respect to authorizing retailers to accept benefits online, the House bill has no provision comparable to the Senate bill.

Nearly identical to the Senate bill. [Sec. 4013]

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Current Law/Policy—Nutrition

Restaurant Meals Program. States may choose to operate a restaurant meals program, allowing homeless, disabled, or elderly households to redeem SNAP benefits at restaurants that offer concessional prices. States contract with restaurants, and USDA authorizes them as SNAP retailers. [7 U.S.C. 2012(k)(3),(4),(9)]

Senate-Passed 2013 Farm Bill (S. 954)

Creates added responsibilities for state agencies, private establishments, and USDA before restaurants may participate in a restaurant meals program. For restaurants that have contracted with the state to accept

SNAP benefits before this provision is enacted, the restaurant may continue to accept SNAP without meeting the additional requirements for no more than 180 days.

[Sec. 4010]

Strikes the Secretary’s authority to waive QC penalties.

Makes no changes to the error threshold. [Sec. 4011]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 4014]

Sets $25 as the threshold level for reporting SNAP errors in the quality control system for FY2013. In subsequent years, adjusts for inflation based on the growth of the cost of the thrifty food plan. [Sec. 4031]

Quality Control. SNAP’s Quality Control (QC) system measures the accuracy of the eligibility and benefits calculation in SNAP. Consistently low performing states are subject to financial penalties.

The statute gives the Secretary authority to waive penalties. [7 U.S.C. 2025(c))] The American

Recovery and Reinvestment Act of 2009 temporarily changed the definition of the quality control error threshold by raising it from $25 to

$50 (meaning that SNAP errors lower than $50 would not “count" as errors in the quality control system). USDA made the $50 threshold permanent in regulation in November 2011. [7 U.S.C.

2025(c); P.L. 111-5; 7 CFR 275.12(f)(2)]

Performance Bonus Awards. State agencies are currently eligible for, in total, $48 million per year in performance awards. These grant awards are provided to states for performance accomplishments in payment accuracy, program access, application timeliness, and best negative

(improper denial) error rate. There is currently no requirement that these performance awards be reinvested in SNAP. [7 U.S.C. 2025(d)]

Employment and Training (E&T). The federal government funds SNAP E&T in 4 ways: (1) $90 million in mandatory funds that are allocated and reallocated to states based on a formula, (2) $20 million in mandatory funding allocated to states that

Requires states to reinvest bonus payments into the state’s SNAP program. [Sec. 4012]

Provides $90 million in mandatory funds in FY2014,

FY2015, FY2016, and FY2017. Reduces mandatory funding to $80 million for 2018 and each fiscal year thereafter. [Sec. 4013]

Repeals the SNAP performance bonus awards. [Sec.

4019]

Reduces the $90 million to $79 million. Establishes additional monitoring, performance measures, and reporting requirements for SNAP E&T. [Sec. 4020,

4021] See also Sec. 4022 below.

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Current Law/Policy—Nutrition

pledge to provide E&T to all able-bodied adults without dependents (ABAWDs), (3) open-ended matching funds for states' administrative costs for

E&T, and (4) open-ended matching funds for states' reimbursement of E&T participants' dependent care and transportation costs. Program requirements, uptake of these funds, and activities designed vary by state. [7 U.S.C. 2025(h), et al]

Senate-Passed 2013 Farm Bill (S. 954)

Work-related requirements. Able-bodied, non-elderly SNAP applicants that are not working are required to register for work opportunities.

States have the option to require SNAP participants to participate in an E&T activity.

ABAWDs that do not meet specified work requirements are limited to receive 3 months of

SNAP benefits in a 36-month period. States are permitted to exempt a portion of the population from this time limit, based on the number of

ABAWDs who received benefits prior to the enactment of the 1996 welfare reform law. A state may—based on data on the availability of jobs— request or apply for a waiver from this provision for the entire state or parts of the state. [7 U.S.C.

2015(o)]

National Directory of New Hires. States have the option to use a national child support enforcement-related database, the National

Directory of New Hires, to verify and track employment and income data for SNAP purposes.

CRS-83

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repeals the $20 million in mandatory funds for states that pledge to serve all ABAWDs. Caps matching funds at

$277 million annually and makes eligible for the matching funds only those states that opt into running the Section

139 pilot [Sec. 4039 (discussed further below)]

Authorizes pilot projects to identify best practices for

E&T programs “to raise the number of work registrants who obtain unsubsidized employment, increase their earned income, and reduce their reliance on public assistance.” Provides $10 million in mandatory funding for each of FY2014, FY2015, and FY2016. USDA is to report to Congress on the pilot projects by the end of

FY2017. [Sec. 4023]

Requires USDA to authorize all interested and eligible states to participate in a work-related requirement pilot.

This pilot would require states to require all participants except for children, elderly, disabled, or parents with children under 1 year old to work or take part in job training for a minimum of 20 hours a week. Participating pilot states must evaluate their pilots and can claim half of any SNAP savings that the evaluations estimate.

Participating states may not utilize ABAWD waivers or exemptions and are limited to spending federal funding at

FY2012 levels. Includes certain expansions of states’ disqualification authority. Provides $1 million each year for FY2014-2017 for program evaluations. [Sec. 4039]

Repeals the authority to grant waivers for a geographic area based on the areas availability of jobs. Reduces the number of ABAWDs that states may exempt from the time limit rules. [Sec. 4009]

Requires all states to data-match with the National

Directory of New Hires. [Sec. 4040]

Current Law/Policy—Nutrition

[Section 453(j)(10) of the Social Security

Act., 42 U.S.C. 653(j)(10)]

Appropriations. Authorizes appropriations for

SNAP and related programs through FY2013. [7

U.S.C. 2027(a), P.L. 112-240]

Nutrition Education and Obesity Prevention

Grant Program. Formerly SNAP Nutrition

Education or “SNAP-Ed,” this program provides formula grant funding for states to provide programs for SNAP (and other domestic food assistance program) participants as well as other low-income households. With these funds, “[s]tate agencies may implement a nutrition education and obesity prevention program for eligible individuals that promotes healthy food choices consistent with the most recent Dietary Guidelines for Americans.”

[7 U.S.C. 2036a(b)] FY2013 funding was reduced by $110 million by P.L. 112-240.

Trafficking. Authorizes civil penalties and SNAP disqualification penalties for retailers that engage in

SNAP trafficking (the sale of SNAP benefits for money or ineligible items). USDA enforces those penalties through a variety of activities and funds from the SNAP account. Approximately $8 million each year was obligated for retailer integrity and trafficking in FY2010, FY2011, and FY2012. [7

U.S.C. 2021(b)(3)]

Bottle Deposits and Trafficking. Under current law, if SNAP is used to buy a bottle of nonalcoholic beverage, SNAP benefits will pay for a bottle deposit in a state where such deposits are in effect, and then the SNAP participant may return the bottle for the cash deposit in return. The 2008 farm bill added a provision barring SNAP recipients from intentionally destroying food (e.g., pouring out

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes appropriations for SNAP and related programs through FY2018. [Sec. 4014]

Adds promoting physical activity as an allowable use of the funding. [Sec. 4017]

Provides USDA $5 million in FY2014 in additional mandatory funding to track and prevent SNAP trafficking.

Also authorizes $12 million subject to appropriations for each year FY2014-FY2018. [Sec. 4018]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Reauthorizes appropriations for SNAP and related programs through FY2016. [Sec. 4024]

Adds the same provision as the Senate bill, but also reduces funding for FY2014 and then adjusts for inflation in subsequent years. CBO has estimated that these changes will reduce funding for the program by $146 million over five years and $308 million over ten years.

[Sec. 4028] Further reduces funding (CBO cost estimate not available) for nutrition education. [Sec. 4039]

Similar to the Senate bill except that the House bill provides USDA $5 million annually in additional mandatory funding to track and prevent SNAP trafficking.

[Sec. 4029]

Amends SNAP law, so that benefits cannot be used to pay for container deposits. Recipients would have to supplement their SNAP purchases of such bottles with their own cash to pay for bottle deposits. [Sec. 4001]

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Current Law/Policy—Nutrition

liquid) in order to claim the bottle deposit. [7

U.S.C. 2016(p)]. USDA has included this practice into the definition of trafficking [7 C.F.R. 271.2].

Expunging benefits. States must expunge from participants’’ EBT cards benefits that have not been accessed after a 12-month period. [7 U.S.C.

2016(h)(12)]

Retailer Trafficking Investigation and

Enforcement. States enforce beneficiary trafficking and other fraudulent activities, while the federal government has jurisdiction over SNAP retailer trafficking and other fraud. [7 U.S.C.

2021, 7 C.F.R. 278.7]

Validating Participation. States are required to match Social Security data to assure that deceased individuals are not receiving SNAP benefits.

Households are prohibited from receiving benefits in multiple states simultaneously. There is a database of individuals that have been disqualified from SNAP. [7 U.S.C. 2015(j), 2020(r)]

Outreach. While federal matching funds are provided for states’ SNAP administrative costs, those matching funds are not available for certain recruitment activities (defined in regulation). USDA may use appropriated funds for SNAP outreach activities including advertisements. Since 2004, the

USDA has partnered with Mexico to provide information about the nutrition assistance programs for eligible new Americans at Mexican consulates in the United States. [7 U.S.C. 2025(a), 7 U.S.C.

2027(a), 7 CFR 272.5]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Requires unused benefits to be expunged after 60 days.

[Sec. 4038]

Allows pilot project opportunities for states to run retailer fraud investigation. Additional federal funding is not provided. Requires that at least one pilot program be conducted in a large urban area that administers its own

SNAP program. [Sec. 4017]

Requires states to submit annual reports demonstrating that the agency has not provided benefits to deceased individuals or to households simultaneously receiving benefits in another state or to an individual that was disqualified from receiving benefits. Penalty for noncompliance is a 50% reduction in federal share of administrative costs. [Sec. 4033]

Further specifies that the federal administrative costsharing is not available for state “recruitment activities designed to persuade an individual to apply for program benefits or that promote the program via television, radio, or billboard advertisements.” Creates additional restrictions for the SNAP funding authorized to be appropriated, including recruitment activities designed to persuade an individual to apply, certain media advertisements (advertisement restriction does not apply to disaster assistance); and agreements with foreign governments designed to promote the program. Bans entities from compensating individuals for conducting

SNAP outreach, if compensation is based on the number of individuals recruited for program. [Sec. 4018] Seeks to terminate the existing nutrition assistance agreement

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Current Law/Policy—Nutrition

Section 17 of the Food and Nutrition Act gives

USDA SNAP (and other programs authorized by the act) research and evaluation authorities but does not explicitly require cooperation of related institutions. [7 U.S.C. 2026]

Data Exchange Standardization. In recent years, authorizing laws of the Temporary

Assistance for Needy Families and Unemployment

Insurance have been amended to include data exchange standards. [P.L. 112-96, Secs. 2105,

4003]

Eligibility Disqualifications for Ex-offenders.

Under SNAP current law, added by the 1996 welfare reform law, states have the option to disqualify individuals with drug-related convictions, opt out of the ban entirely, or modify the ban. As of August 2012, 12 states or territories implemented a lifetime drug-related felon disqualification. [Section 115 of P.L. 104-193]

P.L. 104-193 also disqualified “fleeing felons.”

Applicant drug-testing. For the most part,

USDA and SNAP law does not allow states to use drug testing in determining eligibility for SNAP.

There are exceptions related to the drug-related felon disqualification state option and TANF comparable disqualification policies. [7 U.S.C.

2014(b); Section 115 of P.L. 104-193]

Programs in Lieu of SNAP

Food Distribution Program on Indian

Reservations (FDPIR). Authorizing statute for

FDPIR contains discretionary authority for a

“Traditionally and Locally-grown Food Fund.”

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

between USDA and the Mexican government. [Sec.

4034]

Mandates cooperation of “states, state agencies, local agencies, institutions, facilities such as data consortiums, and contractors” participating in Food and Nutrition Act programs in USDA evaluations and studies. [Sec. 4022]

[See also Section 4021 (discussed above)]

Adds these data exchange standards for SNAP to the

Food and Nutrition Act. [Sec. 4016]

Bars individuals convicted of specified federal crimes

(including murder, rape, certain crimes against children), and state offenses determined by the Attorney General to be substantially similar, from receiving SNAP. Still allows the disqualified ex-offender’s household members to apply for and potentially receive benefits. Requires the state agency to collect, in writing, information on SNAP applicants’ convictions. [Sec. 4020]

No comparable provision.

Similar to Senate bill but also specifies that restrictions will only apply to individuals with convictions after the date of enactment. [Sec. 4037]

Allows states to enact legislation authorizing drug testing for SNAP applicants. Such state policies are to be implemented at full cost to the state. [Sec. 4036]

Requires USDA to study the feasibility of a demonstration project for Tribes (in lieu of states or other administrating entities) administering nutrition assistance programs in lieu of states. Extends FDPIR’s

Extends FDPIR’s appropriations authority for

“Traditionally and Locally-grown Food Fund” through

FY2016. [Sec. 4004] Like Senate bill, requires USDA to study the feasibility of a demonstration project for Tribes

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Current Law/Policy—Nutrition

These funds are for USDA purchase of traditional and locally-grown foods to be distributed to FDPIR households. Authority to appropriate $5 million annually to this fund for FY2008-FY2013. [7 U.S.C.

2013(b)(6); 7 U.S.C. 612c note(a)-(b), P.L. 93-

86]]

Commonwealth of the Northern Mariana

Islands. While Guam and the Virgin Islands participate in SNAP, Puerto Rico, American Samoa, and the Commonwealth of the Northern Mariana

Islands (CNMI) do not. Puerto Rico, American

Samoa, and CNMI, instead receive a nutrition assistance block grant in lieu of SNAP. [7 U.S.C.

2028; P.L. 96-597]

Puerto Rico. As part of Puerto Rico’s administration of Nutrition Assistance Program block grant funds (see above), program recipients receive 25% of their benefits as cash. Current law does not bar this flexibility.

Community Food Projects

Senate-Passed 2013 Farm Bill (S. 954)

appropriations authority for “Traditionally and Locallygrown Food Fund” through FY2018. Allows Tribes to substitute local, tribal foods for up to 5% of their FDPIR entitlement commodities. [Sec. 4003][See also Section

4101]

No comparable provision.

No comparable provision.

Permanently authorizes a grant program for eligible nonprofit organizations, in order to improve community access to food. Grants require 50% in matching funds. 2008 farm bill added an authority and $1 million in mandatory funding for FY2009-

2011 for a Healthy Urban Food Enterprise

Development Center. 2002 farm bill added a

$200,000 set-aside for Innovative Programs for

Addressing Common Community Problems.

Provides $5 million annually in mandatory funding for this purpose. [7 U.S.C. 2034]

Amends the definition of Community Food Project, to include many of the entities and areas of expertise that may have been eligible for Hunger-free Community

Grants [see Section 4204 below]. Deletes Healthy

Urban Food Enterprise Development Center and

Innovative Programs for Addressing Common

Community Problems provisions. Adds the requirement that USDA report to Congress on these Community

Food Project grants by September 30, 2014. Funding remains at $5 million in annual mandatory funds. [Sec.

4015]

The Emergency Food Assistance Program (TEFAP)

For FY2009, mandates $250 million in TEFAP commodity purchases. For FY2010-FY2013, the

Increases funding by $54 million over 10 years.

Entitlement commodity funding increases are in the first 5

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

(in lieu of states or other administrating entities) administering nutrition assistance programs in lieu of states. [Sec. 4041]

Authorizes and provides $1 million in FY2013 and FY2014 for a study to gauge CNMI’s capacity to administer a

SNAP pilot. Authorizes and provides administrative and technical assistance funds to support pilot based on study results ($13.5 million in FY2015, $8.5 million in each of

FY2016 and FY2017. [Sec. 4032]

Bars Puerto Rico from using the NAP federal funds to distribute cash benefits. [Sec. 4025]

Does not make any changes to organizations and purposes eligible for funds. Increases funding for community food projects to a total of $15 million annually and carves out $5 million of these funds for projects that would incentivize low-income households’ fruit and vegetable purchases. [Sec. 4026]

Increases funding by $209 million over 5 years and $333 million over 10 years (according to CBO). Makes annual

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Current Law/Policy—Nutrition

$250 million in FY2009 is to be adjusted for foodprice inflation each year. This funding is available only in the year that it is provided. [7 U.S.C.

7511a(d), P.L. 112-240]

Senate-Passed 2013 Farm Bill (S. 954)

years of the budget window: +$22 million for FY2014,

+$18 million for FY2015, +$10 million for FY2016, +$4 million for FY2017. Inflation adjustment between years remains in place. Makes annual commodity entitlement funding available for a 2-year period. [Sec. 4016]

Extends discretionary authority through FY2018. [Sec.

4016]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

commodity entitlement funding available for a 2-year period. [Sec. 4027(a)] Requires USDA to devise a plan for increasing the purchasing of and modifying the labeling of Kosher and Halal foods for food banks. [Sec. 4054]

Authorizes appropriations ($15 million a year through FY2013) for TEFAP “infrastructure grants.”

Grants are to be made to emergency feeding organizations (emphasizing those serving mostly rural communities) for projects that improve storage, distribution, and other capacity building. [7

U.S.C. 7511a(d), P.L. 112-240]

Commodity Supplemental Food Program (CSFP)

Authority to purchase and distribute CSFP and

FDPIR foods expires at the end of FY2013. [7

U.S.C. 612c note(a)-(b), P.L. 93-86, P.L. 112-

240]

Reauthorizes through FY2018. [Sec. 4101]

Income-eligible pregnant and post-partum women, infants, children, and the elderly (defined as 60 years or older) are eligible to participate in CSFP.

[7 U.S.C. 612c note(g), P.L. 93-86] (According to

FY2011 USDA-FNS data, 97% of CSFP participants were elderly.)

Only income-eligible elderly would be eligible for CSFP.

Enrolled women, infants, and children (who are disqualified by this new provision) would be allowed to participate until their certification period expires. [Sec.

4102]

Extends discretionary authority through FY2016. [Sec.

4027(b)]

Reauthorizes through FY2016. [Sec. 4042]

Identical to the Senate bill. [Sec. 4043]

Food Distribution for Child Nutrition Programs

Authority for USDA to enter into reprocessing agreements with private companies in order to process commodity foods for donation and distribution to nutrition programs expires at the end of FY2013. [7 U.S.C. 1431e(2)(A), P.L. 112-

240] USDA, through a pilot project, is currently contracting with processors to provide processed foods to schools.

In addition to the minimum ($200 million-a-year) acquisitions required by the 2002 farm bill, USDA is

Reauthorizes through FY2018. [Sec. 4103] Explicitly authorizes USDA to contract with a processor and retain title to those foods during processing. [Sec. 4104]

Establishes that the $50 million fresh fruit and vegetable acquisition requirement remains in effect through FY2018.

Identical to Senate bill, except reauthorizes through

FY2016. [Sec. 4044, 4045]

Establishes that the $50 million fresh fruit and vegetable acquisition requirement remains in effect through FY2016.

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Current Law/Policy—Nutrition

required to purchase additional fruits, vegetables, and tree nuts for use in domestic nutrition assistance programs using Section 32 funds. The added purchases required are: $190 million

(FY2008), $193 million (FY2009), $199 million

(FY2010), $203 million (FY2011), and $206 million

(FY2012 and each year thereafter). Of this money for additional purchases, at least $50 million annually is required for USDA fresh fruit and vegetable acquisitions for schools. (The

Department of Defense Fresh Fruit and Vegetable

Program (“DoD Fresh”) is one of the ways this is accomplished). [7 U.S.C. 612c-4]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

[Sec. 4201]

Farm-to-School Programs. Section 9(d) of the

Russell National School Lunch Act encourages schools to use available school lunch funds for local food purchases and to incorporate a local preference [42 U.S.C. 1758(d)]. Schools redeem

National School Lunch Program commodity entitlement food assistance based on USDA’s purchases and offerings [42 U.S.C. 1754]. P.L. 111-

296 authorized and provided $4 million for farm-toschool projects [42 U.S.C. 1769(g)].

Creates a pilot project to purchase pulse crops (dry beans, dry peas, lentils, and chick peas) and pulse crop products for schools. This pilot is analogous to the whole grain pilot and also includes an evaluation component [42

U.S.C. 1755a; Sec. 14222(d) of P.L. 110-246]. Authorizes up to $10 million in discretionary appropriations. [Sec.

4206]

Requires USDA to conduct demonstration projects “to facilitate the purchase of unprocessed and minimally processed locally grown and locally raised agricultural products” for schools that participate in the National

School Lunch and School Breakfast Programs. [Sec.

4208]

Senior Farmers’ Market Nutrition Program

Authorizes and provides $20.6 million annually for the Senior Farmers’ Market Nutrition Program through FY2012. [7 U.S.C. 612c-4(b)]

Reauthorizes and continues to provide CCC mandatory funding of $20.6 million annually through FY2018. [Sec.

4202]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Includes a pilot grant program that would allow 5 states to use this fresh fruit and vegetable funding for their own local sourcing of produce. [Sec. 4049]

No comparable provision.

Allows USDA to permit school food authorities with low annual commodity entitlement values to substitute local foods entirely or partially instead of USDA provided foods. Gives USDA discretion to establish cost-neutral farm-to-school demonstration projects. [Sec. 4050] (See also [Sec. 4049] discussed above)

Provides CCC mandatory funding of $20.6 million annually through FY2016. Expands eligibility from “lowincome seniors” to “low-income seniors and low-income families who are determined to be at nutritional risk.”

CRS-89

Current Law/Policy—Nutrition Senate-Passed 2013 Farm Bill (S. 954)

Other Nutrition and Food Security

Programs

Fresh Fruit and Vegetable Program (program that provides fruit and vegetable snack to school children throughout the day) purchases are limited to fresh fruits and vegetables. [42 U.S.C. 1769a]

Authorized to be appropriated such sums as are necessary through FY2012 for matching grants (1) to food program service providers and nonprofits for collaborative efforts to assess community hunger problems and to achieve “hunger-free communities” and (2) to emergency feeding organizations for infrastructure development. Any available funding is to be divided equally between these 2 grant initiatives, and the federal matching percentage is limited to 80%. [P.L. 110-246, Sec.

4405] The 2008 farm bill also authorized pilot projects designed to improve the health status of participants, including a mandatory provision of $20 million for "point of purchase incentive" projects.

(USDA has since implemented the Healthy Incentives

Pilot in Hampden County, Massachusetts) [7 U.S.C.

2026(k)]

2002 farm bill authorized and 2008 farm bill extended discretionary authority for a “Nutrition

Information Awareness Pilot Program. “ [7 U.S.C.

1755a]

Currently, the Administration administers a Healthy

Food Financing Initiative (HFFI) by requesting appropriations for several existing statutory authorities in order to provide grants and tax

No comparable provision.

Amends the hunger-free community grants to “incentive grants” for projects that incentivize SNAP participants to buy fruits and vegetables. Limits federal cost share to

50%. Provides $100 million in mandatory funding over 5 years. Discretionary authority of $5 million per year.

[Sec. 4204]

Repeals this section. [Sec. 4203]

Authorizes up to $125 million to be appropriated for a

“Healthy Food Financing Initiative” to remain available until expended. USDA is authorized to approve a community development financial institution as “national

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Requires that at least 50% of the funds be reserved for seniors. Also adds an authorization to appropriate “such sums as are necessary” to the mandatory funding of $20.6 million per year. [Sec. 4046]

Changes the name of the program to “Fruit and Vegetable

Program.” Would allow purchase and provision of frozen, canned, dried fruits and vegetables. [Sec. 4048]

No comparable provision.

Identical to the Senate bill. [Sec. 4047]

Identical to Senate bill [Sec. 4052].

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Current Law/Policy—Nutrition

credits to support development of food retailers in underserved communities. Congress provided no funding for USDA for this initiative, but did provide

$22 million for the U.S. Department of the

Treasury to administer the New Market Tax

Credits for retail food outlets. [P.L. 112-55]

The Dietary Guidelines for Americans are jointly published by USDA and the Department of Health and Human Services. The Guidelines provide advice for people 2 years and older about how good dietary habits can promote health and reduce risk for major chronic diseases. Every five years, the two departments charter a committee to review the peer-reviewed, published science on diet and health and develop a report of its recommendations for the next edition of the

Guidelines. [7 U.S.C. 5341(a)]

In recent years, USDA has promulgated regulations for the Special Supplemental Nutrition Program for

Women, Infants and Children (WIC), National

School Lunch Program (NSLP), and School

Breakfast Program (SBP) that affect consumption of white potatoes by program participants’.

Regulations for NSLP and SBP implement the most recent child nutrition reauthorization (P.L. 111-

296). [42 U.S.C. 1753(b)(3); 7 C.F.R. parts 210,

225, 246]

No comparable provision in current law. In 1994,

USDA convened a tri-agency “Commodity

Improvement Council” to discuss the balance of nutrition content of products with support for domestic agriculture. The Council was composed of the Under Secretary for Food, Nutrition and

Consumer Services; Under Secretary for Farm and

Foreign Agriculture Services; and, the Assistant

Secretary for Marketing and Regulatory Programs.

Senate-Passed 2013 Farm Bill (S. 954)

fund manager” that would administer these funds by supporting food retail projects that would “expand or preserve access to staple foods” (as defined within this section) and accept SNAP benefits. [Sec. 4205]

Requires that the Guidelines include specifications for pregnant women and children under the age of 2 years, by no later than the 2020 edition. [Sec. 4207]

No comparable provision.

Requires USDA to establish a multiagency task force to provide guidance to the commodity distribution programs. Task force must be composed of at least 4 members, representing FNS’s Food Distribution Division,

Agricultural Marketing Service (AMS), Farm Service

Agency (FSA), and Food Safety and Inspection Service

(FSIS). Task force is to report to Congress not later than one year after convening. The section does not include appropriations language. [Sec. 4209]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

Requires USDA to conduct “a review of the economic and public health benefits of white potatoes on lowincome families who are determined to be at nutrition risk.” [Sec. 4051]

No comparable provision.

CRS-91

Current Law/Policy—Nutrition

The council published a report in 1995.

No comparable provision.

No comparable provision.

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Creates a Food and Agriculture Service Learning Program with statutory purposes that include: increasing capacity for food, garden, and nutrition education; complementing the work of the federal farm-to-school grants; coordinating with the related National Institute of Food and Agriculture (NIFA) work. USDA is to evaluate the program regularly and report the results to congressional committees of jurisdiction. $25 million is authorized to be appropriated and is to remain available until expended.

20% of funds set aside for NIFA for particular purposes.

Funding is to “supplement not supplant” current efforts.

[Sec. 4210]

No comparable provision.

No comparable provision.

No comparable provision.

Service of traditional foods in public facilities.

Requires USDA to allow the donation and provision of traditional tribal foods, if the food service provider meets certain conditions. [Sec. 4035]

Review of sole-source contracts. Requires USDA to study and issue a report to Congress on the effect of

“sole-source contracts” in the nutrition programs. [Sec.

4053]

CRS-92

Title V. Credit

Current Law/Policy—Credit

Consolidated Farm and Rural Development

Act (a.k.a. ConAct) [7 U.S.C. 1921 et seq.]

Senate-Passed 2013 Farm Bill (S. 954)

Restructures the ConAct by updating language and more clearly organizing the farm and rural development programs into separate titles. Minor changes to some program parameters as described below, though most provisions are substantially the same and renumbered.

[Sec. 5001]

Note: References below cite the new numbering of the

ConAct, for provisions notably amended by the Senate bill,

followed by the section of S. 954 making the change.

Substantially the same, except as noted below. Subtitle A,

Chapter 1 of the ConAct. [Sec. 5001]

Farm Loans

Farm Ownership Loans. Authorizes direct and guaranteed loans for farm real estate purchases to eligible producers who do not qualify for credit from other lenders. [7 U.S.C. 1922-1925, 1927,

1934-1936]

Allows farm ownership loans for the following types of entities: cooperatives, corporations, partnerships, joint operations, trusts, and limited liability companies. [7 U.S.C. 1922(a)]

For direct loans, requires at least three years of farming experience and either be a beginning farmer, not have received prior direct farm ownership loans, or not have received a direct farm ownership loan more than 10 years ago. [7 U.S.C.

1922(b)(1)]

Allows conservation loans for the following types of entities: cooperatives, corporations, partnerships, joint operations, trusts, and limited liability companies. [7 U.S.C. 1924(c)(1)]

Gives USDA discretion to allow alternative legal entities to qualify for farm ownership loans. Section 3101(b)(3) of the ConAct. [Sec. 5001]

Gives USDA discretion to allow alternatives to meet the three-year experience requirement for direct loans.

Section 3101(c)(1) of the ConAct. [Sec. 5001]

Gives USDA discretion to allow alternative legal entities to qualify for conservation loans, by reference. Section

3103(c)(2) of the ConAct. [Sec. 5001]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Does not restructure the ConAct, but makes minor changes as described below. [Title IV]

No restructuring of the ConAct. Changes to specific provisions noted below.

Similar to the Senate bill, but specifies a 75% ownership requirement in certain instances. [Sec. 5001(a)]

Identical to the Senate bill. [Sec. 5001(b)]

Gives USDA discretion to allow alternative legal entities to qualify for conservation loans. [Sec. 5002(a)]

CRS-93

Current Law/Policy—Credit

Maximum conservation loan guarantee amount is

75%. [7 U.S.C. 1924 (e)]

Authorizes appropriations for conservation loans through FY2013 [7 U.S.C. 1924(h)]

Authorizes a down-payment loan program within the farm ownership loan program for beginning farmers and ranchers and socially disadvantaged farmers and ranchers. Maximum down payment loan size is 45% of $500,000, among other terms.

[7 U.S.C. 1935]

For mineral rights to be included as part of the collateral securing a loan, the mineral rights must be specifically appraised. [7 U.S.C. 1927(d)]

Farm Operating Loans. Authorizes direct and guaranteed loans for purchasing livestock, poultry, equipment, feed, seed, fertilizer, other supplies, financing land or water development, reorganization, and certain other purposes to eligible producers who do not qualify for operating credit at other lenders. [7 U.S.C. 1941-1949]

Allows operating loans for the following types of entities: cooperatives, corporations, partnerships, joint operations, trusts, and limited liability companies. [7 U.S.C. 1941(a)]

Allows farm operating loans to youth for projects for in 4-H Clubs, Future Farmers of America, etc.

[7 U.S.C. 1941(b)(1)]

Youth loans are made under the personal liability of the borrower, and have the option of a cosigner. [7

U.S.C. 1941(b)(2)-(3)]

USDA created a microloan program within the existing direct farm operating loan program, using its regulatory prerogative. The program allows a

Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No change. Section 3013(e) of the ConAct. [Sec. 5001] Increases maximum conservation loan guarantee to 90%.

[Sec. 5002(b)]

Identical to the Senate bill. [Sec. 5002(c)] Reauthorizes appropriations through FY2018. Section

3103(h) of the ConAct. [Sec. 5001]

Substantially the same, except increases the maximum down payment loan to 45% of $667,000. Section

3107(b)(1) of the ConAct. [Sec. 5001].

Increases the maximum down payment loan to 45% of

$667,000 (same as Senate bill). [Sec. 5003]

No change. Section 3105(e) of the ConAct. [Sec. 5001] Eliminates the requirement that mineral rights be specifically appraised. [Sec. 5004]

Substantially the same, except as noted below. Subtitle A,

Chapter 2 of the ConAct. [Sec. 5001]

Gives USDA discretion to allow alternative legal entities to qualify for farm operating loans. Section 3201(b)(3) of the ConAct. [Sec. 5001]

No change.

Allows a borrower who defaults on a youth loan to still qualify for federal educational loans. Section 3201(d)(5) of the ConAct. [Sec. 5001]

No comparable provision.

No reorganization of the ConAct. Changes to specific provisions noted below.

Similar to the Senate bill, but specifies a 75% ownership requirement in certain instances. [Sec. 5101]

Eliminates rural residency requirement for youth loans.

[Sec. 5102]

Gives USDA the option to waive personal liability for youth loans if default is due to circumstances beyond the borrower’s control. [Sec. 5103]

Creates a microloan program for direct or guaranteed loans. The maximum microloan is $35,000, with a total microloan indebtedness of $70,000 to any borrower.

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Current Law/Policy—Credit

maximum of $35,000 per loan, with streamlined loan applications, and relaxed/flexible eligibility requirements. [Federal Register, Vol. 78, No. 12,

pp. 3828-3836, Jan. 17, 2013]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

USDA may contract with community-based, state entities or other intermediaries to make or guarantee loans or to provide services. [Sec. 5104]

Limits eligibility for direct farm operating loans to 6 years, with a one-time 2-year extension under certain terms at USDA’s discretion. [7 U.S.C.

1941(c)(1)(C)]

Limits eligibility for guaranteed farm operating loans to 15 years [7 U.S.C. 1949(b)]. his limit had been suspended through 2010 [P.L. 110-246, Sec.

5103], but since Jan. 1, 2011, has been in effect.

Allows loans to soil conservation districts that cannot obtain credit elsewhere, up to $500,000, for the purchase of equipment [7 U.S.C. 1944]

No comparable provision.

Creates a “Pilot Loan Program To Support Healthy Foods for the Hungry.” Individual loans of between $500 and

$5,000 to gleaners (defined as collecting surplus food that would be discarded or harvesting donated crops for free distribution) and other regular farm operating loan borrowers for the purpose of assisting the borrowers in providing food to the hungry. Funded from within the farm operating loan program, up to a maximum total of

$500,000. Section 3201(e) of the ConAct. [Sec. 5001]

Limits eligibility for direct farm operating loans to “10 years, excluding years that the farmer did not receive a direct operating loan. Section 3201(c)(1)(C) of the

ConAct. [Sec. 5001]

Eliminates (omits in reorganization of the ConAct) any term limit on guaranteed farm operating loans.

Omits reference to conservation districts.

Adds local and regional food production to the allowed purposes for farm operating loans. Includes direct-toconsumer/institution/store and value-added activities.

Ensures for training of USDA loan officers, outreach, and crop valuation methods for loan purposes. Section

3202(a)(11) and 3202(e) of the ConAct. [Sec. 5001]

No comparable provision.

No change to current law.

No change to current law.

No change to current law.

No comparable provision.

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Current Law/Policy—Credit

Emergency Loans. Authorizes direct and guaranteed loans for recovery from natural disasters and quarantines declared by the Secretary or Stafford Act emergencies declared by the

President. [7 U.S.C. 1961-1970]

Includes equine farmers and ranchers [7 U.S.C.

1961(a)]

No comparable provision.

Allows emergency loans for the following types of entities: cooperatives, corporations, partnerships, joint operations, trusts, and limited liability companies. [7 U.S.C. 1961(a)]

Requires hazard insurance at the time the loss occurred. Provides an exception for poultry farmers who were unable to obtain insurance. [7

U.S.C. 1961(b)(3)]

Administrative Provisions. Sets other terms, including loan servicing. [7 U.S.C. 1981-2008l]

Definitions. A qualified beginning farmer or rancher is defined, in general, as one with less than

10 years of farming experience, meets participation and other requirements especially if more than one person or entity is involved, and owns a farm that is smaller than 30% of the median acreage size of farms in the county. [7 U.S.C. 1991(a)(11)]

Authorizes appropriations of $5 million each year through FY2013 for a Beginning Farmer Individual

Development Account pilot program. [7 U.S.C.

1983b]

Authorizes specific loan levels for direct and guaranteed farm ownership and farm operating

Senate-Passed 2013 Farm Bill (S. 954)

Substantially the same, except as noted below. Subtitle A,

Chapter 3 of the ConAct. [Sec. 5001]

Does not mention equine farmers and ranchers in Sec.

3301 or Sec. 3002 (definitions) of the ConAct.

Adds commercial fishermen to list of eligible borrowers for emergency loans. Section 3301(a) of the ConAct.

[Sec. 5001]

Gives USDA discretion to allow alternative legal entities to qualify for emergency loans. Section 3301(b)(3) of the

ConAct. [Sec. 5001]

Omits any exception for poultry farmers in the hazard insurance requirement. Section 3301(d) of the ConAct

[Sec. 5001]

Substantially the same, except as noted below. Subtitle A,

Chapter 4 and Subtitle C of the ConAct [Sec. 5001]

Replaces “median” with “average” in the definition of a qualified beginning farmer’s ownership limitation: “does not exceed 30% of the average county acreage.” This would expand eligibility if the average exceeds the median, such as when small farms outnumber larger farms and a few large farms raise the average. Sec. 3002(26) of the ConAct. [Section 6001]

Reauthorizes appropriations of $5 million each year through FY2018. Section 3428 of the ConAct [Sec. 5001]

Reauthorizes the same loan levels through FY2018 and continues the same program targets and reservations.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No reorganization of the ConAct. Changes to specific provisions noted below.

No change to current law.

No comparable provision.

Similar to the Senate bill, but specifies a 75% ownership requirement in certain instances. [Sec. 5201]

No change to current law.

No reorganization of the ConAct. Changes to specific provisions noted below.

Similar to the Senate bill (replaces “median” with

“average” in the definition of a qualified beginning farmer).

[Sec. 5302(b)] Also, gives USDA discretion to allow alternative legal entities to qualify as a beginning farmer or rancher. [Sec. 5302(a)]

Identical to the Senate bill. [Sec. 5301]

Reauthorizes the same loan levels, targets, and reservations through FY2018. [Sec. 5303 and Sec. 5305]

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Current Law/Policy—Credit

loans through FY2013, and reserves or targets funding for certain types of borrowers. [7 U.S.C.

1994]

Credit Programs in Other Laws

State Agricultural Loan Mediation Programs.

Authorizes a matching grant program for states that provide third party mediation services for agricultural credit disputes. Appropriations authorized at $7.5 million annually through FY2015.

[7 U.S C. 5106]

Loans to Purchasers of Highly Fractionated

Land. Authorizes the USDA farm loan program to lend to Indian tribes or tribal corporations to buy highly fractionated land within the reservation. [25

U.S.C. 488]

Senate-Passed 2013 Farm Bill (S. 954)

Section 3431 of the ConAct [Sec. 5001]

Reauthorizes appropriations of $7.5 million annually through FY2018. [Sec. 5101]

Allows lending to intermediaries that may create revolving loan funds to relend to purchasers of highly fractionated land. Updates references to other laws, and requires regulatory consultation between USDA and the

Department of the Interior. [Sec. 5102]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Adds a new priority for direct loans to beginning farmers and ranchers who apply under the down payment loan program or for joint financing arrangements. [Sec. 5304]

Identical to the Senate bill. [Sec. 5401]

Requires certain levels of appraisal for land to qualify for highly fractionated land loans. [25 U.S.C.

488]

No comparable provision. Prior to 1990, however, the Farm Credit Administration (federal regulator of the Farm Credit System) could approve compensation packages of employees and executives of the Farm Credit System, with Board approval. (Formerly 12 U.S.C. 2252(a)(13) before being removed by P.L. 101-624)

Simplifies appraisals for purchasers of highly fractionated land by requiring only one appraisal recognized by USDA or the Department of the Interior. [Sec. 5103]

Instructs the Farm Credit Administration to review rules to reflect congressional intent that a primary responsibility of boards of directors in the Farm Credit

System is to review compensation packages of senior officers, in order to improve compensation disclosure.

[Sec. 5104]

Similar to the Senate bill by allowing lending to intermediaries that may create revolving loan funds to relend to purchasers of highly fractionated land. The

House bill does not contain a provision for updating references or requiring interagency consultation. [Sec.

5501]

No change.

No comparable provision.

CRS-97

Title VI. Rural Development

Current Law/Policy—Rural Development

Consolidated Farm and Rural Development

Act (ConAct) Authorizing statute for USDA’s rural development programs. [7 U.S.C. 1921 et seq.]

Defining Rural Eligibility

Sec. 343(a)(13)(A) of the Consolidated Farm and

Rural Development Act (ConAct), as amended, defines rural as any area other than a city or town with a population greater than 50,000 and the urbanized area contiguous and adjacent to such a city or town.

Defines rural and rural area for water and waste water programs as any town, city, or unincorporated area under 10,000 population.

Defines rural and rural area for community facility loan and grant program as any area other than a town or city with a population greater than 20,000.

Establishes criteria for determining areas as “rural in character” and makes certain exclusions for rural areas that could be classified as lying within an

“urbanized area.” [7 U.S.C. 1991(a(13)(A)]

Senate-Passed 2013 Farm Bill (S. 954)

Reorganizes the Consolidated Farm and Rural

Development Act (ConAct). Consolidates rural development programs, makes technical changes to various programs, eliminates programs, establishes criteria for prioritizing loan and grants, eliminates the definition of “rural” and “rural area” for water assistance and community facilities. Makes technical changes to the

Delta Regional Authority and the Northern Great Plains

Regional Authority. [Sec. 6001]

Note: References below cite the new numbering of the ConAct for provisions notably amended by the Senate bill, followed in bold by the section of

S. 954 making the change.

Retains Sec. 343 (a) definition of rural as any area other than a city or town with a population greater than 50,000 and the urbanized area contiguous and adjacent to such a city or town.

Eliminates the rural definition for water and waste water projects so that the definition above applies. Areas that were eligible for water and waste water funding under the prior definition will remain eligible for funding unless

USDA determines that the area is no longer “rural in character.”

Eliminates the rural definition for community facility loan and grants so that the definition above applies. Areas that were eligible for community facility funding under the prior definition will remain eligible for funding unless

USDA determines that the area is no longer “rural in character.”

Amends criteria for determining areas “rural in character” and establishes priorities in making these

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

No change to current law.

No change to current law.

No change to current law.

No change to current law.

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Current Law/Policy—Rural Development

Definition of Rural Area for Purposes of the

Housing Act of 1949. Section 520 of the Housing

Act of 1949 defines “rural area” as any area so defined between 1990 and 2000 to remain so classified until receipt of the 2010 decennial census.

The provision also caps the eligible rural population threshold at 25,000 residents or less. [7 U.S.C.

1490]

Rural Community Programs

Rural Water and Waste Disposal Loan and

Grant Programs. Loans and grants to support improvements to rural water systems. Authorizes

$30 million in grants annually FY2009-2013, subject to annual appropriations. [7 U.S.C. 1926(a)(2]

Senate-Passed 2013 Farm Bill (S. 954)

determinations. Extends the current exclusion for

“urbanized areas” where a single road may cause a rural town to be included within an urbanized area. Section

3002 28(A)(i) of the ConAct. [Sec. 6001]

Amends Section 520 of the Housing Act of 1949 to define a “rural area” as any area deemed to be a “rural area” at any time between January 1, 2000 and December 31,

2010 to continue to be so classified until receipt of data from the 2020 decennial census. Raises the eligible population threshold of a rural area to a maximum of

35,000 residents. [Sec. 6202]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

Revolving Funds for Financing Water and

Waste Water Projects Program. Provides capital to fund revolving loan funds for supporting rural water projects. Authorizes $30 million

Reauthorizes funding to make loans, grants, and loan guarantees for the Rural Water and Waste Disposal Loan and Grant Programs. Establishes priorities for rural water programs, including a priority for rural communities of

5,500 or fewer permanent residents. Section 3501 (a)-

(d)(f) of the ConAct. [Sec. 6001]

No comparable provision.

Reauthorizes funding for Revolving Funds for Financing

Water and Wastewater Projects at $30 million annually for FY2014-FY2018, subject to appropriations. Section

3501(e)(1) of the ConAct. [Sec. 6001]

Reauthorizes the Rural Water and Waste Disposal Loan and Grant Programs. Decreases the current authorization for grants from $30 million to $15 million each fiscal year

2014-2018. [Sec. 6001]

Amends the water and waste water direct and guaranteed loan programs to encourage financing by private or cooperative lenders to the maximum extent possible; by using loan guarantees where the population exceeds

5,500; by using direct loans where the impact on rate payers would be significant if a loan guarantee were to be used; by requiring projects that require interim financing in excess of $500,000 initially to seek funding from private or cooperative lenders; and determining if an existing direct loan borrower can refinance with a private or cooperative lender prior to providing a new direct loan.

[Sec. 6015]

No change to current law, including no extension of authorization to appropriate funds to the program.

CRS-99

Current Law/Policy—Rural Development

annually for 2008-2013, subject to annual appropriations. [7 U.S.C. 1926(a)(2)(B)]

Emergency and Imminent Community

Water Assistance Program. Provides assistance to water systems in rural communities of 10,000 or less where there is a threat to potable water supplies. Authorizes funding of $35 million for each fiscal year FY2008-2013. [7 U.S.C. 1926a(i)(2)]

Water and Waste Facility Loans and Grants

to Alleviate Health Risks. Provides loan and grant support to rural water systems to improve sanitation and potable water supplies. Authorizes an annual appropriation of $30 million in loan subsidies, $30 million in grants, and $20 million in grants for Tribal groups. [7 U.S.C. 1926c]

Grants for Water Systems for Rural and

Native Villages in Alaska. Funding for water projects to improve sanitation and potable water in rural Alaska. Authorizes $30 million annually for

FY2008-FY2013, subject to appropriations. [7

U.S.C. 1926d]

Solid Waste Management Grants. Provides grant assistance for communities to establish or improve solid waste management facilities. Subject to annual appropriations. [7 U.S.C. 1932(b)]

Rural Water and Wastewater Technical

Assistance and Training Grants. Provides funding for technical and managerial expertise assistance from third parties (e.g., National Rural

Water Association Program) to assist rural communities with various water and waste water issues. Authorizes that between 1% and 3% of total water and waste water appropriation be allocated to these grants annually for FY2008-FY2013. [7

U.S.C. 1926(a)(14)]

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes funding for Emergency and Imminent

Community Water Assistance Program at $35 million annually for FY2014-FY2018, subject to appropriations.

Section 3501(e)(2) of the ConAct. [Sec. 6001]

Reauthorizes funding for Water and Waste Facility Loans and Grants to Alleviate Health Risks at $60 million in loan subsidies, $60 million in grants, and $20 million in grants specifically for Tribal groups annually for FY2014-FY2018, subject to appropriations. Section 3501(e)(3)(B) of the

ConAct. [Sec. 6001]

Reauthorizes funding for the program and specifies eligibility for native villages for Alaska and Hawaii for

Water and Waste Facility Loans and Grants to Alleviate

Health Risks to include Native Tribes, rural or native villages in Alaska and Hawaii. Section 3501(e)(3)(B) of the

ConAct. [Sec. 6001]

Reauthorizes funding for Solid Waste Management Grants at $10 million annually for FY2014-FY2018, subject to appropriations. Section 3501(e)(4) of the ConAct. [Sec.

6001]

Reauthorizes funding for Rural Water and Wastewater

Technical Assistance and Training Grants at the current allocation rate of between 1% and 3% of the total water and waste water appropriation annually for FY2014-

FY2018. Section 3501(e)(5) of the ConAct. [Sec. 6001]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Reauthorizes funding for Emergency and Imminent

Community Water Assistance Program. Decreases current authorization of $35 million to $27 million annually for FY2014-FY2018, subject to appropriations.

[Sec. 6008]

No change to current law.

No change to current law, including no extension of authorization to appropriate funds to the program.

No change to current law.

No change to current law.

CRS-100

Current Law/Policy—Rural Development

Rural Water and Waste Water Circuit Rider

Program. Provides funding to support technical assistance to water rural water systems. [7 U.S.C.

1926(a)(19)]

Special Evaluation Assistance for Rural

Communities and Households (SEARCH)

Program. Provides grant assistance to communities under 2,500 to help them prepare an application for a water or waste water loan and grant. Up to 4% of the funds appropriated for water and waste disposal projects and essential community facilities may be used to fund SEARCH grants. Authorizes funding not to exceed $30 million in any fiscal year. [7 U.S.C. 2009ee]

Grants to Nonprofit Organizations to

Finance the Construction, Refurbishing, and

Servicing of Individually-Owned Household

Water Well Systems in Rural Areas for

Individuals with Low or Moderate Incomes.

Provides funding to third-party organizations with expertise in residential well-water systems.

Authorizes $10 million annually FY2008-2013, subject to appropriations. [7 U.S.C. 1926(d)]

Community Facilities Loan and Grant

Program. Provides loan, grant, and loan guarantees for “essential community facilities.”

Most funding has supported projects for improved community health and safety (e.g., health clinics, elder care facilities, fire protection, and emergency responders). Authorizes such sums as necessary annually, subject to appropriations. [7 U.S.C.

1926(a)(19)]

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes the Rural Water and Waste Water Circuit

Rider Program. Authorizes funding of $25 million for

FY2014 and each year thereafter, subject to annual appropriations. [Sec. 6001]

Reauthorizes funding for the SEARCH Program at such sums as necessary for FY2014-FY2018, subject to annual appropriations. Section 3501(e)(6) of the ConAct. [Sec.

6001]

No comparable provision.

Reauthorizes funding for Community Facilities Programs at $10 million annually for FY2014-FY2018, subject to annual appropriations.

Establishes new priorities for Community Facilities loans and grants, including prioritization for communities with less than 20,000 in population.

Also authorizes a new Technical Assistance for

Community Facilities Program as part of the current

Community Facilities Program. Provides technical assistance and planning assistance to rural communities in developing essential community facilities. Reauthorizes such sums as necessary for FY2014-FY2018, subject to

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Reauthorizes the Rural Water and Waste Water Circuit

Rider Program. Authorizes funding of $20 million for

FY2014 and each fiscal year thereafter, subject to annual appropriations. [Sec. 6005]

No change to current law.

Reauthorizes the Household Water Well Systems

Program. Decreases current authorization of appropriations from $10 million to $5 million for each fiscal year 2014-2018. [Sec. 6009]

Eliminates the provision in current law that reserves 10% of Community Facility funds for child day care facilities.

[Sec. 6003]

No comparable provision.

Reserves at least 3% and no more than 5% of the appropriation for Community Facilities to provide technical assistance for Community Facility projects. [Sec.

6007]

CRS-101

Current Law/Policy—Rural Development Senate-Passed 2013 Farm Bill (S. 954)

annual appropriations. Section 3502(a)-(d)(e)(g) of the

ConAct. [Sec. 6001]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Directs the Secretary to use loan guarantees in the

Community Facilities program to the maximum extent possible. [Sec. 6004]

Decreases the current authorization of appropriations from $10 million to $5 million each fiscal year 2014-2018.

[Sec. 6006]

Tribal College and University Essential

Community Facilities. Provides grant funding to entities that are tribal colleges to provide the federal share of the cost of developing specific tribal college or university essential community facilities. Authorizes funding of $10 million each fiscal year FY2008-2013. [7 U.S.C.

1926(a)(25)(C)]

Rural Business and Cooperative Development

Reauthorizes funding of $10 million each fiscal year

FY2014-2018.

Rural Business Opportunity Grants. Provides grant assistance of up to $1.5 million to identify business opportunities that will use local rural resources, to train and provide technical assistance to existing or prospective rural entrepreneurs, to establish business support centers, and to support local and regional economic development planning.

Authorizes $15 million annually for FY2008-

FY2013, subject to appropriations. [7 U.S.C.

1926(a)(11)]

Rural Business Enterprise Grants. Provides grant support of up to $50,000 to public bodies and nonprofit corporations for measures designed to facilitate small and emerging business enterprises, or the creation and expansion of rural distance learning networks, among other eligible activities.

Authorizes funding not to exceed $50 million annually. Subject to annual appropriations. [7

U.S.C. 1932(c)]

Eliminates the program, but consolidates its objectives within broad rural business development grants program.

Authorizes $65 million annually for the broader program for FY2014-FY2018, subject to annual appropriations.

Section 3601(a] of the ConAct. [Sec. 6001]

Eliminates the program, but consolidates the program’s objectives within a broad rural business development grants program. Authorizes $65 million annually for the broader program (as above) for FY2014-FY2018, subject to appropriations. Section 3601(a)of the ConAct. [Sec.

6001]

Authorizes $15 million annually for each fiscal year

FY2013-FY2017. [Sec. 6002]

No change to current law.

CRS-102

Current Law/Policy—Rural Development

Value-Added Producer Grants. Provides grant support to agricultural producers to undertake projects that add value to commodities and thereby increase producer income. Also supports planning and business development for value-added projects.

Authorizes $40 million annually FY2009-2013 subject to annual appropriations, in addition to $15 million in mandatory spending to remain available until expended. [7 U.S.C. 1621]

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes funding for Value-Added Agricultural

Producer Grants at $40 million annually for FY2014-

FY2018, subject to annual appropriations. Also authorizes

$12.5 million annually in mandatory spending for FY2014-

FY2018. Establishes priority for projects in which at least

25% of the project recipients are beginning farmers or ranchers or socially disadvantaged farmers or ranchers.

Section 3601(b) of the ConAct. [Sec. 6001]

Amends Section 231(b) of the Agricultural Risk

Protection Act of 2000 to give funding priority to, among other groups, veteran farmers and ranchers (as defined by the Food, Agriculture, Conservation and Trade Act of

1990). [Sec. 6207]

Reauthorizes the program for FY2014-2018. Requires that USDA produce an annual report describing the projects carried out by the program. [Sec. 6001]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Reauthorizes the Value-Added Product Grant Program.

Increases authorization of mandatory spending from $15 million to $50 million. [Sec. 6202]

Reauthorizes the program for FY2014-2018. Amends the provision so that not more than 7% of the funds of the

Business and Industry Loan Guarantee program can be used to fund locally or regionally produced agricultural food products. [Sec. 6012]

Locally or Regionally Produced Agricultural

Food Products. Provides funding to increase domestic consumption of locally and regionally produced agricultural products and to provide affordable food products in underserved rural and urban areas. Reserves not less than 5% of the funds of the Business and Industry Loan Guarantee program for support of locally and regionally produced food. [7 U.S.C. 1932(g)(9)(B)(v)(I)]

Agriculture Innovation Center

Demonstration Program. Provides grant funding to producers for technical assistance in developing agricultural-based businesses based on value-added production. Authorizes funding of $6 million annually for FY2008-2013, subject to annual appropriations. [7 U.S.C. 1632(b)(i)]

Rural Cooperative Development Grants.

Facilitate the creation of jobs in rural areas through the development of new rural cooperatives, valueadded processing, and rural businesses. Authorizes

$50 million annually for FY2008-FY2013, subject to appropriations. [7 U.S.C. 1932(e)(5)]

No comparable provision.

Reauthorizes funding for grants at $50 million annually for

FY2014-FY2018 subject to appropriations. Includes directive to coordinate an interagency working group among federal agencies to support cooperative development. Section 3601(c) of the ConAct. [Sec.

6001]

Decreases the current authorization of appropriations from $6 million to $1 million each fiscal year 2014-2018.

[Sec. 6203]

Decreases the current authorization of appropriations from $50 million to $40 million each fiscal year 2014-

2018. [Sec. 6011]

CRS-103

Current Law/Policy—Rural Development Senate-Passed 2013 Farm Bill (S. 954)

Appropriate Technology Transfer for Rural

Areas (ATTRA). Provides grant support at an agricultural institution (e.g., universities) for information activities to agricultural producers.

Authorizes $5 million annually for FY2008-FY2013, subject to appropriations. [7 U.S.C. 1932]

Business and Industry Direct and

Guaranteed Loans. Provides loans for a wide variety of projects to support business development in rural areas and to increase and retain jobs in rural areas. Subject to annual appropriations. (Note: Direct loan program has not been funded since 2002.) [7 U.S.C. 1932(a)(2)(A)]

Intermediary Relending Program (IRP). The

IRP provides direct loans at 1% interest to intermediaries to finance business facilities and community development projects in rural areas of

25,000 population or less. The Rural Business

Service loan to an intermediary is used to establish or fund a revolving loan program to provide financial assistance to ultimate recipients for community development projects, establishment of new businesses or expansion of existing businesses.

Subject to annual appropriations. [7 U.S.C 1932]

Rural Microentrepreneur Assistance

Program. Provides grant support to third-party entities that assist rural entrepreneurs in establishing microenterprises in rural areas.

Authorizes $4 million in mandatory spending for

FY2009-FY2011 and $3 million for FY2012. Also authorizes $40 million annually in discretionary spending for FY2009-FY2013, subject to appropriations. [7 U.S.C. 1981 et seq.]

Reauthorizes funding for ATTRA at $5 million annually for FY2014-FY2018, subject to appropriations. Section

3601(d) of the ConAct. [Sec. 6001]

Reauthorizes funding of $75 million annually for FY2014-

FY2018, subject to appropriations. Raises initial fee to 3% from current authorization of 2%. Reauthorizes a 5% carve-out of guaranteed loan authority for Locally or

Regionally Produced Agricultural Food Products. Section

3601(e) of the ConAct. [Sec. 6001]

Reauthorizes funding for IRP at $50 million annually for

FY2014-FY2018, subject to appropriations. Section

3601(f)(1) of the ConAct. [Sec. 6001]

Reauthorizes funding the program at $40 million annually for FY2014-FY2018, subject to appropriations. Also provides $3.0 million annually in mandatory spending for

FY2014-FY2018. Section 3601(f)(2) of the ConAct. [Sec.

6001]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No change to current law, including no extension of authorization to appropriate funds to the program.

Amends Section 310B of the C0nAct to permit the

Secretary to take a borrower’s account receivables as security for Business and Industry loans. Also requires the

Secretary to promulgate regulations within 6 months to implement the changes authorized. [Sec. 6010]

Reauthorizes and amends the program. Authorizes $10 million, subject to appropriations, for each fiscal year

FY2014-2018. [Sec. 6013]

Decreases the current authorization of appropriations from $40 million to $20 million each fiscal year 2014-

2018. [Sec. 6018]

CRS-104

Current Law/Policy—Rural Development

Rural Business Investment Program. Modeled on the Small Business Administration’s Small

Business Investment Companies, the Rural Business

Investment Program provides funding to help capitalized Rural Business Companies that, in turn, provide loans to rural businesses. Authorizes $50 million for the period FY2008-FY2013, subject to appropriations. [7 U.S.C. 2009cc et seq.]

Rural Business Collaborative Investment

Program. Provides loan and grant support to rural regions to establish regional competitiveness by fostering collaboration among rural businesses, rural institutions, and entrepreneurs. Establishes multijurisdictional and multisectoral Regional Rural

Investment Boards and provides Regional

Innovation Grants. Authorizes $135 million for the period FY2008-FY2013, subject to annual appropriations. Program was never implemented.

[7 U.S.C. 2009dd]

General Rural Development Provisions

General authority for USDA to award grants and to make and guarantee loans to various entities [7

U.S.C. 1926]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes funding for the program at $25 million annually through FY2018, subject to appropriations.

Provides authority for USDA to establish capital requirements, establish fees for applicants applying for a license to operate as a rural business investment company, and ensures the majority of capital of each rural business company is invested in rural concerns. Section

3602 of the ConAct. [Sec. 6001]

Eliminates the program.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Decreases the current authorization of appropriations from $50 million to $20 million each fiscal year 2014-

2018. [Sec. 6021]

No change to current law, including no extension of authorization to appropriate funds to the program.

Reauthorizes and contains general provisions for loan and grant authority. Section 3701of the ConAct. [Sec. 6001]

No change to current law.

Strategic Economic and Community

Development. Authorizes USDA to prioritize otherwise eligible applications that support multijurisdictional strategic economic and community development and establishes criteria for evaluating applications. Reserves 20% of a fiscal year’s appropriated funds for rural community facilities, water and waste water projects, and loans and grants under Rural Business and Cooperative Development. Also reserves 15% of the total funds available for these functional categories for strategic economic and community development projects.

Section 3703(a)of the ConAct. [Sec. 6001]

No comparable provision.

CRS-105

Current Law/Policy—Rural Development

Rural Development Loan Procedures.

Addresses procedures for approving USDA Rural

Development loans and grants. [7 U.S.C. 1983(a)]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Rural Development Insurance Fund.

Authorizes a revolving fund for the discharge of the obligations of USDA under contracts guaranteeing or insuring rural development loans. Funds not needed for current operations are deposited in the

U.S. Treasury for credit to the fund, or invested in obligations guaranteed by the United States [7

U.S.C. 1929a]

Rural Economic Area Partnership (REAP).

The program assists communities dealing with geographic and economic isolation, low density population, absence of nearby metropolitan centers, and historic dependence on agribusiness, out-migration, and economic upheaval to develop strategies for revitalization Zones. [7 U.S.C.

1932]

National Rural Development Partnership. A state-federal rural economic development coordinating entity operating through State Rural

Development Councils and a National Rural

Development Coordinating Committee. [7 U.S.C.

2008m]

Continues permanent authority for the Rural

Development Insurance Fund. Section 3704 of the

ConAct. [Sec. 6001]

Establishes process for USDA to designate new Rural

Economic Area Partnership zones. Section 3705(a) of the

ConAct. [Sec. 6001]

State Rural Development Partnership. Establishes a federal-state partnership called the State Rural

Development Partnership. The Partnership is composed of state rural development councils whose purpose is to build regional capacity in rural communities. The

Partnership is designed to maximize public- and privatesector cooperation to minimize regulatory redundancy.

The federal government will act as a partner or facilitator to provide states with technical and administrative support necessary to plan and implement rural development strategies tailored to meet local needs.

[Sec. 6001]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Simplifies the loan application process. Directs USDA to the maximum extent possible to provide a one-page application and other simplified application procedures.

Within two years of enactment, requires USDA to submit a report to the House and Senate Agriculture

Committees evaluating the implementation of this provision.[Sec. 6016]

No change to current law.

No change to current law.

No comparable provision.

CRS-106

Current Law/Policy—Rural Development

No comparable provision

No comparable provision.

Definition of Rural Area. Defines rural and rural area to mean any area other than a city or town or unincorporated place with a population greater than 20,000 residents, and any area within the service area of an electric, telephone, or telephone bank borrower under Section 13(3)the

Rural Electrification Act. [7 U.S.C. 913]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision

No comparable provision.

Rural Telecommunications and Electrification: Rural Electrification Act

Rural Electrification Act of 1936. The act authorizes loans for rural electrification and telecommunications infrastructure development. [9

U.S.C. 901 et seq.]

No comparable provision

No comparable provision

Amends the definition of rural area for programs authorized by the Rural Electrification Act to be the same as the definition in Section 3002 (28)(A)(i): any area other than a city or town with a population greater than

50,000 and the urbanized area contiguous and adjacent to such a city or town. [Sec. 6101]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Rural College Coordination Strategy. Instructs the

Secretary to develop a coordination strategy for USDA

Rural Development programs to serve the specific needs of rural community and technical colleges. [Sec. 6014]

Program Metrics. Directs USDA to begin collecting data on the economic activities created through its loan and grant funding. Specifically directs USDA to measure the short and long-term viability of award recipients, and to submit a report to Congress every two years on the actions taken to use the data, the number of jobs created, the value of wages, and other economic data deemed relevant. [Sec. 6204]

Relending for Certain Purposes. Amends the Rural

Electrification Act to authorize loans for borrowers relending to ultimate consumers for the purpose of energy efficiency. Loans and grants are also authorized under the Cushion of Credit Payments Program for relending to ultimate consumers for the purpose of energy efficiency. [Sec. 6101]

Fees for Certain Loan Guarantees. Amends the

Rural Electrification Act to require that the Secretary, at the request of a baseload generation loan guarantee borrower, charge an upfront fee equal to the costs of the loan guarantee. A borrower may not use funds from a loan or other debt obligation made or guaranteed by the federal government to pay the fee. [Sec. 6102]

No change to current law.

CRS-107

Current Law/Policy—Rural Development

Rural Electrification Act of 1936. The act authorizes loans for rural electrification and telecommunications infrastructure development. [9

U.S.C. 901 et seq.]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision

Guarantees for Bonds and Notes Issued for

Electrification or Telephone Purposes.

Provides for federal guarantees for bonds and notes that finance rural electrification and telephone infrastructure. [7 U.S.C. 940c-1(f)]

Expansion of 911 Access. Authorizes expanding the emergency telephone service of 911 in rural areas by using any funds otherwise made available for telephone loans for each of FY2008-FY2013.

Section 315(d) of the Rural Electrification Act. [7

U.S.C. 940(e)d]

Access to Broadband Telecommunications

Services in Rural Area. Provides loan guarantees to establish broadband telecommunications infrastructure in rural areas.

Subject to annual appropriations [7 U.S.C. 950bb]

Reauthorizes guarantees for bonds and notes issued for electrification or telephone purposes for 2014-2018.

[Sec. 6102]

Reauthorizes expansion of 911 access through FY2018.

[Sec. 6103]

Reauthorizes funding for the program at $50 million annually for FY2014-FY2018, subject to appropriations.

Amends Section 601 of the Rural Electrification Act to establish a grant component to the Broadband Loan

Program. Establishes priorities for communities: (1) without a local service provider, (2) with populations of less than 20,000, (3) with a high proportion of lowincome residents, and (4) experiencing significant outmigration. Also establishes a maximum grant limit of 50% of a project’s development costs, but gives USDA the authority to increase the grant amount to 75% for remote communities and those with low-income residents. Also establishes priority to broadband applications that offer service to the greatest proportion of unserved rural households or rural households that do not have broadband service but meet the minimum acceptable levels of service. Priority would be given to communities with populations of 20,000 or less, or those experiencing outmigration, or those that are isolated

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Rural Utilities Service Contracting Authority.

Amends Section 18(c) of the Rural Electrification Act to insert a sentence that states that a contract funded by a borrower that is paid for out of the general funds of the borrower is not a public contract with the meaning of

U.S.C. Title 41. [Sec. 6103]

Identical to the Senate provision. [Sec. 6104]

Identical to the Senate provision. [Sec. 6105]

Reauthorizes the program through FY2018. Gives priority to applications that are not predominantly for business service but where at least 25% of customers in the proposed service territory are commercial interests.

Publication of notice of applications shall include the amount and type of support requested and a list of the

Census block groups or tracts to be served. The

Secretary is authorized to establish a process where, at the time of an application notice, an incumbent service provider who is providing service to a remote rural area may submit to the Secretary information regarding the service offered in the application’s proposed service area, so the Secretary may assess whether the application is an eligible project. The Secretary is also authorized to consider upgrade or replacement cost for construction or acquisition of facilities and equipment in considering the technology needs of customers in the proposed service area. [Sec. 6106]

CRS-108

Current Law/Policy—Rural Development

Grants for NOAA Weather Radio

Transmitters. Provides grant funding to public and nonprofit entities for the federal share of the cost of acquiring radio transmitter to increase coverage of rural areas by the all hazards weather radio broadcast system of the National Oceanic and Atmospheric Administration. Authorizes funding of such sums as necessary for FY2008-2013, subject to annual appropriations. [7 U.S.C. 2008p]

Distance Learning and Telemedicine

Program. Provides grants to rural hospitals, clinics, schools, and libraries to develop and improve their telecommunications infrastructure.

Section 233A of the Food, Agriculture,

Conservation, and Trade Act of 1990. Authorizes funding of $100 million annually through FY2013, subject to appropriations. [7 U.S.C. 950aaa]

No comparable provision.

Backlog of Rural Development Applications.

Section 6029 of the Food, Conservation, and

Energy Act of 2008 (P.L. 110-246) provided a onetime $120 million in mandatory spending for pending rural development loan and grant applications. [122 Stat. 1955]

Senate-Passed 2013 Farm Bill (S. 954)

from population centers, or those that have a high percentage of low-income residents. Also authorizes a pilot program for “ultra-high speed” broadband connectivity. [Sec. 6104]

No comparable provision.

Reauthorizes funding at current level through FY2018.

[Sec. 6201]

No comparable provision

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Authorizes $1 million each fiscal year FY2014-FY2018, subject to appropriations. [Sec. 6017]

Decreases the current authorization of appropriations from $100 million to $65 million each fiscal year 2014-

2018. [Sec. 6201]

In making awards under the program, the agency is directed to consider whether the applicant is located in a designated health professional shortage area, as defined in

Section 332 of the Public Health Service Act. [Sec. 6207]

No comparable provision. Amends Subtitle E of Title VI of the 2002 farm bill (P.L.

101-171) to authorize a new Rural Energy Savings

Program, which would provide 0% interest rate loans to eligible Rural Utilities Service borrowers to fund loans to qualified consumers to implement energy efficiency measures. [Sec. 6203]

Provides for one-time mandatory funding of $150 million for pending rural development loan and grant applications.

[Sec. 6204]

No comparable provision.

CRS-109

Current Law/Policy—Rural Development

No comparable provision.

No comparable provision.

No comparable provision

Regional Development Authorities

Delta Regional Authority. The Authority is an

8-state state-federal regional planning and development entity that provides loan and grant support for economic development projects in rural counties in the Mississippi Delta area.

Authorizes $30 million annually for FY2008-2012 subject to appropriations. [7 U.S.C. 2009aa et

seq.]

Northern Great Plains Regional Authority.

Authorizes an economic development commission that develops regional plans and makes loans and grants for infrastructure and economic

Senate-Passed 2013 Farm Bill (S. 954)

Study of Rural Transportation Issues. Directs

USDA and the Department of Transportation to jointly conduct a study regarding the movement of agricultural products, domestically renewable fuels, domestically produced resources for electricity production, and economic development for rural areas. Designates particular topics for the study to address. Study is to be updated triennially. [Sec. 6205]

Amends Section 203 of the Agricultural Marketing Act of

1946 (7 U.S.C. 1622) to direct USDA to participate on behalf of the interests of agriculture and rural America in all proceedings pertaining to freight rail policy of the

Surface Transportation Board. [Sec. 6206]

No comparable provision

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill, but also requires an update on the study to be submitted not later than 1 year after the date of enactment of this act. Also expands the study to include transportation infrastructure of water ways. [Sec.

6205]

No comparable provision.

Reauthorizes funding FY2014-FY2018 at the current level of $30 million annually, subject to annual appropriations.

Also makes technical amendments to the operation of the

Authority. Sections 3801 through 3814 of the ConAct.

[Sec. 6001]

Certain Federal Action not to be Considered

Major. An action by the Secretary that does not involve the provision of federal dollars or a loan guarantee from

USDA, including a debt settlement or restructuring, a lien accommodation or subordination, or the restructuring of a business entity by a borrower, in the case of a loan, grant, or loan guaranteed in the USDA Rural

Development mission area, shall not be considered a major federal action. [Sec. 6206]

Decreases the current authorization of appropriations from $30 million to $12 million each fiscal year 2014-

2018. [Sec. 6019]

Reauthorizes funding FY2014-FY2018 at the current level of $30 million annually, subject to annual appropriations.

Also makes technical amendments to the authority.

Increases the cap on administrative expenses from 5% to

Decreases the current authorization of appropriations from $30 million to $2 million each fiscal year 2014-2018.

[Sec. 6020]

CRS-110

Current Law/Policy—Rural Development

development in five Great Plains States. Authorizes

$30 million annually for FY2008-2012, subject to appropriations. [7 U.S.C. 2009bb et seq.]

Regional Economic and Infrastructure

Development. The 2008 farm bill (Section 14217) established three new regional development authorities: a Northern Border Regional

Commission, a Southeast Crescent Regional

Commission, and a Southwest Border Regional

Commission. These commissions develop a regional development plan and then make infrastructure loans and grants to eligible entities in their respective regions. [40 U.S.C. 15101 et seq.]

Authorizes annual appropriations of $30 million to each of the Commissions. Not more than 10% of appropriated funds to any Commission can be used for administrative expenses. [40 U.S.C. 15751(b)]

Senate-Passed 2013 Farm Bill (S. 954)

10%. Sections 3821 through 3835 of the ConAct. [Sec.

6001]

NOTE: See also Title XII-Miscellaneous, Section

12206, for changes made in the Senate bill to other regional commissions authorized by the 2008 farm bill.

Extends the authorization of appropriations through

FY2018. Allows the cap on administrative expenses for any Commission to exceed 10% should the Commission receive an annual appropriation of less than $10 million.

This provision is contained in the Miscellaneous title of the Senate bill. [Sec. 12206]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Same as the Senate provision. [Sec. 6208]

CRS-111

Title VII. Research, Extension, and Related Matters

Current Law/Policy—Research Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Foundation for Food and Agricultural Research

Extends authority through FY2018 and adds “consult with industry groups” to the Board’s list of duties. [Sec. 7101]

No comparable provision. Establishes the “Foundation for Food and Agriculture

Research,” a new nonprofit corporation designed to supplement USDA’s basic and applied research activities, and provides total mandatory funding of up to $200 million from the Commodity Credit Corporation. Federal funding is available only to the extent that the foundation secures an equal amount of non-federal matching funds for each dollar of expenditure. The foundation will solicit and accept private donations to award grants or enter into agreements for collaborative public/private partnerships with scientists at USDA and in academia, non-profits, and the private sector. [Sec. 7601]

No comparable provision.

National Agricultural Research, Extension, and Teaching Policy Act of 1977 (NARETPA), As Amended

Identical to the Senate bill. [Sec. 7102] Authorizes the National Agricultural Research,

Extension, Education, and Economics Advisory

Board. The Board reviews and provides consultation on priorities for research, extension, education, and economics to the Secretary, landgrant colleges and universities, and Congress. [7

U.S.C. 3123]

Amended by the Specialty Crops Competitiveness

Act of 2004 (P.L. 108-465) to establish and allow

USDA to appoint members to a permanent specialty crops committee responsible for studying the scope and effectiveness of research, extension, and economics programs affecting the specialty crop industry. [7 U.S.C. 3123a]

Authorizes a program to defray the school loans of veterinary medical school graduates who agree to serve for limited time periods in underserved areas.

Funding subject to appropriations. [7 U.S.C.

Amends requirements to provide for diversity of the specialty crops represented, and to ensure ongoing consultation with diverse sectors of the specialty crop industry. [Sec. 7102]

Authorizes an additional matching competitive grant program with qualified entities to develop, implement, and sustain veterinary services. Authorizes $10 million per year, subject to annual appropriations. [Sec. 7103]

Amends requirements to include research on: (1) improving quality and taste of processed specialty crops and (2) use of remote sensing in production practices.

[Sec. 7103]

Nearly identical to Senate bill. [Sec. 7104]

CRS-112

Current Law/Policy—Research

3151a]

Authorizes grants/fellowships to land grant colleges and universities for food and agricultural sciences education. Annual appropriations of $60 million authorized through FY2013. [7 U.S.C. 3152]

Authorizes USDA to enter into a wide variety of grants and other collaborative agreements with private and public educational institutions, corporations, and individuals to conduct independent research and public policy analysis on food and agriculture. Appropriations of such sums as necessary are authorized through FY2013. [7

U.S.C. 3155]

Authorizes USDA to make grants to Alaska Nativeserving institutions to assist in carrying out education, applied research, and related community development programs. Annual appropriations of

$10 million authorized through FY2013. [7 U.S.C.

3156]

Authorizes USDA to make grants for research on human nutrition intervention and health promotion.

Appropriations of such sums as necessary are authorized through FY2013. [Sec. 3174]

Requires USDA to conduct pilot research program to combine medical and agricultural research.

Annual appropriations of $10 million authorized through FY2013. [Sec. 3174]

Authorizes USDA to establish a national education program for disseminating results of food and human nutrition research performed or funded by

USDA. Annual appropriations of $90 million authorized through FY2013. [7 U.S.C. 3175]

Authorizes animal health and disease research.

Authorizes annual appropriations of $25 million per

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes at $40 million per year for FY2014-18, subject to appropriations. [Sec. 7104]

Reauthorizes at $10 million per year, subject to appropriations. Provides preference to policy research centers that have extensive databases, models, and demonstrated experience in providing Congress with agricultural projections and analysis at the farm, regional, national, and international levels, including information and analysis relating to drought mitigation. [Sec. 7105]

Reauthorizes at $10 million per year through FY2018, subject to appropriations. [Sec. 7106]

No comparable provision.

No comparable provision.

Reauthorizes at $90 million per year through FY2018, subject to appropriations. [Sec. 7107]

Reauthorizes at $25 million per year through FY2018,

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 7105]

Similar to the Senate bill except removes authority for making non-competitive grants and reauthorizes at $5 million per year for FY2014-2018, subject to appropriations. [Sec. 7106]

No comparable provision.

Repeals current law. [Sec. 7107]

Repeals current law. [Sec. 7108]

Identical to the Senate bill. [Sec. 7109]

Reauthorizes at $15 million per year for FY2013-2018,

CRS-113

Current Law/Policy—Research

year through FY2013. [7 U.S.C. 3195(a)]

Authorizes research on national or regional problems in agriculture. [7 U.S.C. 3196]

Authorizes annual appropriations of $25 million through FY2012 for NARETPA Grants to upgrade agricultural and food sciences facilities at 1890 land grant colleges, including Tuskegee University. [7

U.S.C. 3222b(b)] Annual appropriations of $8 million authorized through FY2013 for insular area land-grant institutions. [7 U.S.C. 3222b–2(d)]

Authorizes grants to Hispanic-serving institutions to strengthen educational capacity. Annual appropriations of $40 million authorized through

FY2013. [7 U.S.C. 3241]

The term "cooperating forestry schools" means those institutions eligible to receive funds under the

Act of October 10, 1962 (16 U.S.C. 582a et seq.), commonly known as the McIntire-Stennis Act of

1962. [7 U.S.C. 3103(5)] The term "Hispanicserving agricultural colleges and universities" means colleges or universities that qualify as Hispanicserving institutions and offer degree programs in agriculture-related fields. [7 U.S.C. 3103(10)(A)]

Authorizes national research and training virtual centers. [7 U.S.C. 3222c]

Authorizes a competitive grant program to fund research and extension at Hispanic-serving agricultural universities. Appropriations of such sums as necessary are authorized beginning FY2008 and each fiscal year thereafter. [7 U.S.C.

3243(e)(1)]

Authorizes competitive grants for international agricultural science and education programs.

Appropriations of such sums as necessary are

Senate-Passed 2013 Farm Bill (S. 954)

subject to appropriations. [Sec. 7108]

No comparable provision.

Reauthorizes at $25 million per year and $8 million per year, respectively, through FY2018, subject to appropriations. [Sec. 7109 and Sec. 7110]

Reauthorizes at $40 million per year through FY2018, subject to appropriations. [Sec. 7111]

No comparable provision.

No comparable provision.

No comparable provision.

Reauthorizes at $5 million per year for FY2014-2018, subject to appropriations. [Sec. 7112]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

subject to appropriations [Sec. 7110]

Repeals current law. [Sec. 7111]

Similar to the Senate bill and amends to support tropical agricultural research in insular areas. [Sec. 7112 and Sec.

7113]

Identical to the Senate bill. [Sec. 7115]

Allows institutions to opt out of the respective designations. [Sec. 7101]

Repeals current law. [Sec. 7114]

Expands authority to award competitive grants for training of Hispanic agricultural workers and Hispanic youth working in the food and agricultural sciences. [Sec.

7116]

Identical to the Senate bill. [Sec. 7117]

CRS-114

Current Law/Policy—Research

authorized through FY2013. [7 U.S.C. 3292b]

Authorizes competitive grants for the acquisition of special purpose scientific research equipment.

Appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 3310a]

Authorizes university agricultural research.

Appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 3311]

Authorizes agricultural extension activities.

Appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 3312]

USDA may retain up to 4% of amounts made available for agricultural research, extension, and teaching assistance programs for the administration of those programs. [7 U.S.C. 3315]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Reauthorizes through FY2018, subject to appropriations.

[Sec. 7113]

Reauthorizes through FY2018, subject to appropriations.

[Sec. 7114]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repeals current law. [Sec. 7118]

Identical to the Senate bill. [Sec. 7119]

Identical to the Senate bill. [Sec. 7120]

The 4% limit does not apply to programs that currently contain a limitation that is less than 4%. To the maximum extent practicable, USDA shall enter into grants and cooperative agreements with former Department of

Agriculture agricultural research facilities. USDA may enter into agreements with agricultural research organizations. [Sec. 7121]

Identical to the Senate bill. [Sec. 7122] Authorizes research on supplemental and alternative crops. Appropriations of such sums as necessary are authorized through FY2013. [7

U.S.C. 3319d]

Authorizes competitive grants to non-land grant colleges of agriculture. Appropriations of such sums as necessary are authorized through FY2013. [7

U.S.C. 3319i(b)]

Authorizes grants for a cooperative research and extension program to encourage the development, management, and production of aquatic food species. Annual appropriations of $7.5 million authorized through FY2013. [7 U.S.C. 3322(b)

and U.S.C. 3324]

Reauthorizes at $1 million per year for FY2014-2018, subject to appropriations, and amends so that only competitive grants can be awarded. [Sec. 7115]

Reauthorizes through FY2018, subject to appropriations.

[Sec. 7116]

Reauthorizes at $5 million per year through FY2018, subject to appropriations, and amends so that only competitive grants can be awarded. [Sec. 7117]

Identical to the Senate bill. [Sec. 7123]

Identical to the Senate bill. [Sec. 7124]

CRS-115

Current Law/Policy—Research

Authorizes rangeland research. Annual appropriations of $10 million authorized through

FY2013. [7 U.S.C. 3336(a)]

Authorizes biosecurity planning/response.

Appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 3351(a)]

Authorizes resident instruction & distance education grants for insular area institutions of higher education. Appropriations of such sums as necessary are authorized through FY2013. [7

U.S.C. 3362(a)]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes at $2 million per year through FY2018, subject to appropriations. [Sec. 7118]

Reauthorizes at $20 million per year through FY2018, subject to appropriations. [Sec. 7119]

Reauthorizes at $2 million per year for through FY2018, subject to appropriations, and amends so that only competitive grants can be awarded. [Sec. 7120]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 7125]

Identical to the Senate bill, except annual funding is $10 million. [Sec. 7126]

Identical to the Senate bill. [Sec. 7127]

No comparable provision.

No comparable provision.

No comparable provision.

Food, Agriculture, Conservation, and Trade Act of 1990, As Amended

Provides for research on best utilization of biological applications. Annual appropriations of

$40 million authorized. [7 U.S.C. 5814]

Provides for a research and education program on integrated resource management and integrated crop management. Annual appropriations of $20 million authorized. [7 U.S.C. 5821]

Reauthorizes at $40 million per year for FY2014-2018, subject to appropriations. [Sec. 7201]

Reauthorizes at $20 million per year for FY2014-2018, subject to appropriations. [Sec. 7202]

Provides for information on sustainable agriculture.

Authorizes appropriations of such sums as necessary. [7 U.S.C. 5831] Education/training for

Cooperative Extension Service agents and other professionals is provided. Annual appropriations of

$20 million authorized. [7 U.S.C. 5832]

For FY2014-FY2018, reauthorizes appropriations of such sums as necessary for sustainable agriculture [Sec. 7203] and $20 million per year for education/training [Sec.

7204], subject to appropriations.

The recipient of a competitive grant under a covered law that involves applied research or extension and is commodity-specific or state-specific must provide matching funds or in-kind contributions of equal value to the grant. [Sec. 7128]

Provides sense of Congress that consideration of expanding the land grant program should include enhanced funding and additional institutions. [Sec. 7129]

Identical to the Senate bill. [Sec. 7201]

Identical to the Senate bill. [Sec. 7202]

Identical to the Senate bill except reauthorizes appropriations of $5 million per year for sustainable agriculture [Sec. 7203] and $20 million per year for education/training. [Sec. 7204]

CRS-116

Current Law/Policy—Research

Provides for a national genetics resources program.

Appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 5844(b)]

Provides for a national agricultural weather information system. Annual appropriations of $5 million authorized through FY2013. [7 U.S.C. 5851

et seq.]

Provides for a rural electronic commerce extension program to expand and enhance electronic commerce practices and technology to be used by small businesses in rural areas. [7 U.S.C. 5923]

Provides for a research initiative called the

"Agricultural Genome Initiative" to study and map agriculturally significant genes. [7 U.S.C. 5924]

Provides for “high-priority research and extension” areas and initiatives, and other programs. Among other program areas identified in the 2008 farm bill included pollinator protection with specific amounts of authorized appropriations. For other programs, appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 5925]

Provides for research and extension on technologies for animal waste management and related air quality management and odor control. [7 U.S.C. 5925a]

Section 7206 of the 2008 farm bill established the

Organic Agriculture Research and Extension

Initiative (OREI), providing grants to facilitate the development of organic agriculture production and processing. Provides mandatory CCC funds of $18 million (FY2009) and $20 million annually (FY2010-

FY2012), and authorizes annual appropriations of

$25 million (FY2009-FY2013). [7 U.S.C. 5925b]

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes at $1 million per year through FY2018, subject to appropriations. [Sec. 7205]

Reauthorizes at $1 million per year through FY2018, subject to appropriations. [Sec. 7206]

No comparable provision.

Requires USDA to encourage awards to consortia of eligible entities. [Sec. 7207]

Retains and/or removes some research areas as a “highpriority” and adds some new areas including a pulse health initiative, forestry products research, and training coordination. Reauthorizes funding levels, subject to annual appropriations, through FY2018 [Sec. 7208]

No comparable provision.

Reauthorizes OREI with some program changes.

Reauthorizes CCC funds of $16 million (FY2014-FY2018) and extends authority for appropriated funding of $25 million through FY2018. [Sec. 7209]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 7205]

Repeals current law. [Sec. 7206]

Repeals current law. [Sec. 7207]

Repeals current law. [Sec. 7208]

Retains and/or removes some research areas as a “highpriority” and adds coffee plant health initiative.

Reauthorizes pollinator protection research grants,

USDA coordination efforts, and a nationwide honey bee pest and pathogen surveillance program. Reauthorizes funding levels, subject to annual appropriations through

FY2018. [Sec. 7209]

Repeals current law. [Sec. 7210]

Reauthorizes OREI and establishes a priority for grant proposals found to be “scientifically meritorious” during grant proposal review. Reauthorizes CCC funds of $20 million (FY2014-FY2018) and extends authority for appropriated funding of $25 million through FY2018.

[Sec. 7211]

CRS-117

Current Law/Policy—Research Senate-Passed 2013 Farm Bill (S. 954)

Provides for research and extension to enhance the production of biomass energy crops and the energy efficiency of agricultural operations. [7 U.S.C.

5925e]

Authorizes competitive research and extension grants for improving the farm business management knowledge and skills of agricultural producers.

Appropriations of such sums as necessary are authorized. [7 U.S.C. 5925f(d)]

Authorizes regional centers of excellence.

Appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 5925]

Authorizes red meat food safety research center.

[7 U.S.C. 5929]

No comparable provision.

Reauthorizes at $5 million per year through FY2018, subject to appropriations. [Sec. 7210]

Reauthorizes at $10 million per year through FY2018, subject to appropriations. USDA may prioritize funding.

[Sec. 7211]

No comparable provision.

Authorizes an assistive technology program for farmers with disabilities. Annual appropriations of

$6 million authorized through FY2013. [7 U.S.C.

5933(c)(1)]

Authorizes National Rural Information Center

Clearinghouse. Annual appropriations of $500,000 authorized through FY2013. [7 U.S.C. 3125b(e)]

Reauthorizes at $5 million per year through FY2018, subject to appropriations. [Sec. 7212]

Reauthorizes at $500,000 per year through FY2018, subject to appropriations. [Sec. 7213]

Agriculture Research, Extension, and Education Reform Act of 1998 (AREERA), As Amended

USDA establishes procedures that provide for scientific peer review of agricultural research grants administered, on a competitive basis, by its National

Institute of Food and Agriculture. [7 U.S.C. 7613]

Section 406, as amended, establishes the

“Integrated Research, Education, And Extension

Competitive Grants Program.” Included is the

Organic Transitions Program (ORG), which funds research, extension, and education programs to improve the competitiveness of organic producers and producers transitioning to organic practices.

Amends law to emphasize that “relevance” of the underlying research and extension programs to the affected industry shall be considered in evaluating grant applications. [Sec. 7301]

Reauthorizes program and extends authority to appropriate funds through FY2018. [Sec. 7302]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repeals current law. [Sec. 7212]

Identical to the Senate bill. [Sec. 7213]

Similar to the Senate bill. Requires USDA to prioritize funding. [Sec. 7214]

Repeals current law. [Sec. 7215]

Identical to the Senate bill except reauthorizes at $3 million per year for FY2013-FY2018, subject to appropriations. [Sec. 7216]

Identical to the Senate bill. [Sec. 7217]

Nearly identical to Senate bill. [Sec. 7301]

Nearly identical to Senate bill. [Sec. 7302]

CRS-118

Current Law/Policy—Research

Appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 7626]

Provides for a coordinated program of research, extension, and education to improve the competitiveness, viability, and sustainability of small and medium size dairy, livestock, and poultry operations. [7 U.S.C. 7627]

Section 408(e) authorizes research on diseases of wheat, triticale, and barley caused by Fusarium graminearum or by Tilletia indica. Appropriations of such sums as necessary are authorized through

FY2013. [7 U.S.C.7628(e)]

Provides for establish a program to conduct research, testing, and evaluation of programs for the control and management of Johne's disease in livestock. [7 U.S.C. 7629]

Section 410(d) authorizes grants for youth organizations. Appropriations of such sums as necessary are authorized through FY2013. [7

U.S.C.7630(d)]

Section 7311 of the 2008 farm bill amended the

AREERA to establish the Specialty Crop Research

Initiative (SCRI), providing mandatory CCC funds of $30 million (FY2008) and $50 million annually

(FY2009-FY2012), plus authorizes $100 million annually (FY2008-FY2013), subject to appropriations. [7 U.S.C. 7632]

Sec. 604 of AREERA authorizes the Food Animal

Residue Avoidance Database. Appropriations of such sums as necessary are authorized through

FY2013. [7 U.S.C. 7642]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Reauthorizes program at $10 million per year through

FY2018, subject to appropriations. [Sec. 7303]

No comparable provision.

Reauthorizes program at $3 million per year through

FY2018, subject to appropriations. [Sec. 7304]

Reauthorizes SCRI and provides mandatory CCC funds of

$25 million (FY2014); $30 million annually (FY2015-

FY2016); $65 million (FY2017); and $50 million (FY2018 and each fiscal year thereafter). Requires USDA consult with the specialty crops committee during the peer and merit review process. [Sec. 7305]

Reauthorizes program and extends authority to appropriate funds through FY2018. [Sec. 7306]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repeals current law. [Sec. 7303]

Reauthorizes program at $7.5 million per year through

FY2018, subject to appropriations. [Sec. 7304]

Repeals current law. [Sec. 7305]

Identical to the Senate bill. [Sec. 7306]

Reauthorizes SCRI and mandatory CCC funds of $25 million (FY2013); $50 million annually (FY2014-FY2015);

$55 million (FY2016-FY2017); and $65 million (FY2018 and each fiscal year thereafter). Extends authority to appropriate funds through FY2018. Requires USDA to award competitive grants based on an initial scientific peer review conducted by a panel of subject matter experts and a USDA review and ranking for merit, relevance, and impact conducted by a panel of specialty crop industry representatives. [Sec. 7307]

Identical to the Senate bill. [Sec. 7308]

CRS-119

Current Law/Policy—Research Senate-Passed 2013 Farm Bill (S. 954)

Sec. 612 of AREERA authorizes National Swine

Research Center. [P.L. 105-185; 112 Stat. 605]

AREERA establishes the Office of Pest Management

Policy to coordinate USDA’s policies and activities related to pesticides and pest management tools.

Authorizes appropriations of such sums as necessary through FY2013. [7 U.S.C. 7653]

No comparable provision.

Reauthorizes appropriations of $3 million annually

(FY2014- FY2018). [Section 7307]

Amends Title VI of AREERA [7 U.S.C. 7651 et seq.] to establish four “Regional Integrated Pest Management

Centers” (located in the north central, northeastern, southern, and western regions) to provide research and extension programs, outreach, and response to information needs, among other purposes. [Sec. 7308]

No comparable provision. Requires USDA to conduct a performance evaluation to determine whether federally funded agricultural research, extension, and education programs result in public goods that have national or multistate significance. [7 U.S.C. 7671 et seq.]

Authorities in Other Laws

Provides for development of critical agricultural materials. Appropriations of such sums as necessary are authorized through FY2013. [7 U.S.C. 178n]

1994 institutions (tribally controlled colleges) are defined. [7 U.S.C. 301]

Reauthorizes at $2 million per year through FY2018, subject to appropriations. [Sec. 7401]

Updates the list of institutions. Makes changes in grant process. [Sec. 7402]

Authorizes funding for costs of agricultural research facilities (experiment stations) under the Research

Facilities Act. Appropriations of such sums as necessary are authorized through FY2013. [7

U.S.C. 390d(a)]

Extends authority to appropriate funds through FY2018.

[Sec. 7403]

Authorizes carbon cycle research. [7 U.S.C. 6711] No comparable provision.

The Agriculture and Food Research Initiative (AFRI) makes competitive grants for fundamental and

Reauthorizes at $700 million per year for AFRI through

FY2018. Directs USDA to streamline the competitive

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repeals current law. [Sec. 7309]

Identical to the Senate bill. [Sec. 7310]

No comparable provision.

Repeals current law. [Sec. 7311]

Identical to the Senate bill. [Sec. 7401]

Nearly identical to the Senate bill. [Sec. 7402]

Identical to the Senate bill. [Sec. 7403]

Repeals current law. [Sec. 7404]

Similar to the Senate bill. Adds emphasis on plant-based foods that are major sources of nutrients of concern,

CRS-120

Current Law/Policy—Research

applied research, and for purchasing research equipment. Authorized funding at $700 million annually from FY2008 through FY2013, subject to appropriations. [7 U.S.C. 450i]

Senate-Passed 2013 Farm Bill (S. 954)

grant process for eligible institutions with limited resources. [Sec. 7404]

USDA operates a National Agricultural Library to serve as the primary agricultural information resource of the United States. [7 U.S.C. 3125a]

The Renewable Resources Extension Act of 1978

(P.L. 95-306) authorizes educational and technical aid via state extension agencies and eligible universities and colleges. Authorizes annual appropriations of $30 million (FY2009-FY2013). [16

U.S.C. 1671-1676]

Section 10 of the National Aquaculture Act of 1980 establishes USDA as the lead Federal agency for coordinating and disseminating national aquaculture information. Authorizes annual appropriations of $3 million through FY2013. [16 U.S.C. 2801]

Authorized through April 4, 2001, the use of remote sensing to anticipate potential food, feed, and fiber shortages, and to provide timely information to assist farmers with planting decisions. [7 U.S.C. 5935]

Requires reports on producers and handlers for organic products [7 U.S.C. 5925b note; P.L. 107-

Reauthorizes through FY2018 the authority to lease property of the Beltsville Agricultural Research Center or the Library to any individual or entity. [Sec. 7405]

For annual funds made available to the National

Agricultural Library, the Secretary shall use not more than $5 million per year to support the dissemination of objective agricultural and food law research and information through partnerships with institutions of higher education. [Sec. 7602]

Reauthorizes at $30 million per year through FY2018, subject to appropriations. [Sec. 7406]

Extends authority to appropriate funds through FY2018.

[Sec. 7407]

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

zoonotic diseases in wildlife reservoirs presenting a potential concern to public health or domestic livestock, data for safe and effective therapeutic applications of animal drugs, conservation practices and technologies designed to address nutrient losses and improve water quality, pest management for minor agricultural use and for use on specialty crops. [Sec. 7405]

Similar to the Senate bill. [Sec. 7511]

No comparable provision.

Identical to the Senate bill. [Sec. 7406]

Identical to the Senate bill. [Sec. 7407]

Repeals current law. [Sec. 7408]

Repeals current law. [Sec. 7409]

CRS-121

Current Law/Policy—Research

171], genetically modified pest-protected plants

[P.L. 107-171; 116 Stat. 462], and nutrient banking for the purpose of enhancing the health and viability of watersheds in areas with large concentrations of animal producing units [7 U.S.C.

5925a note; P.L. 107-171].

Establishes the Beginning Farmer and Rancher

Development Program; provides training, education, outreach/technical assistance initiatives.

Provides mandatory CCC funds of $18 million

(FY2009) and $19 million annually (FY2010-

FY2012), plus authorizes $30 million annually

(FY2008-FY2013), subject to appropriations. [7

U.S.C. 3319f]

Under Section 8 of P.L. 87-788 (commonly known as the McIntire-Stennis Cooperative Forestry Act), the term “State" includes Puerto Rico, the Virgin

Islands, and Guam. [16 U.S.C. 582a-7]

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes mandatory funding of $17 million per year for FY2014-FY2018 (to be available until expended) and extends authority to appropriate funds through FY2018.

State grants are to be made on a competitive basis for establishing and improving farm safety at the local level.[Sec. 7408]

No comparable provision.

Food, Conservation, and Energy Act of 2008

Establishes a communication center to prepare for an agricultural disease emergency or threat to agricultural biosecurity. Appropriations of such sums as necessary are authorized for FY2008 through FY2013. [7 U.S.C. 8912]

Provides assistance to build local capacity in agricultural biosecurity planning, preparedness, and response. Appropriations of such sums as necessary are authorized for FY2008 through FY2013. [7

U.S.C. 8913]

Reauthorizes programs at $2 million per year through

FY2018, subject to appropriations. [Sec. 7501]

Reauthorizes at $15 million per year through FY2018, subject to appropriations. [Sec. 7502]

Establishes a competitive grant program to encourage basic and applied research and the development of qualified agricultural countermeasures to respond to an outbreak of plant disease. Annual appropriations of $50 million

Reauthorizes program at $15 million per year through

FY2018, subject to appropriations. [Sec. 7503]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Reauthorizes mandatory funding of $20 million per year for FY2014-FY2018 (to be available until expended) and extends authority to appropriate funds through FY2018.

Not less than 5% of funds are to be used to support beginning farmers who are military veterans. Recipients of grants may not use more than 10% of funds for indirect costs. [Sec. 7410]

Adds the American Samoa, Federated States of

Micronesia, and Commonwealth of the Northern Mariana

Islands to the list of included territories. [Sec. 7411]

Identical to the Senate bill. [Sec. 7501]

Identical to the Senate bill. [Sec. 7502]

Identical to the Senate bill. [Sec. 7503]

CRS-122

Current Law/Policy—Research

are authorized for FY2008 through FY2013. [7

U.S.C. 8921(b)]

Establishes a competitive grant program to promote the development of teaching programs in disciplines closely allied to the food and agriculture system to increase the number of trained individuals with an expertise in agricultural biosecurity. Appropriations of such sums as necessary are authorized for FY2008 through

FY2013. [7 U.S.C. 8922(e)]

Prohibits the Grazinglands Research Laboratory at

El Reno, Oklahoma from being declared excess or surplus Federal property.

In the annual budget process, the President is required to submit to Congress a single budget line item reflecting the total amount requested by the

President for funding for research, education, and extension activities of the Research, Education, and

Economics mission area of USDA for each fiscal year and for the preceding 5 years. [7 U.S.C.

7614c]

Establishes a program of research relating to natural products, including products from plant, marine, and microbial sources. Appropriations of such sums as necessary are authorized for FY2008 through FY2013. [7 U.S.C. 5937]

Establishes bioenergy research programs through

“sun” grants to land grant institutions and five regional centers. The research is to enhance national energy security through the development, distribution, and implementation of biobased energy technologies. Annual appropriations of $75 million

(FY2008-FY2013) are authorized [7 U.S.C. 8114]

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes at $5 million per year through FY2018, subject to appropriations. [Sec. 7504]

Reauthorizes provision through FY2018. [Sec. 7511]

Requires the budget submission to include sufficient information for Congress to thoroughly evaluate and approve future spending plans with regard to extramural competitive grants programs and intramural research spending. New language is added to create transparency and accountability for USDA research programs. [Sec.

7512]

Reauthorizes at $7 million per year through FY2018, subject to appropriations. [Sec. 7513]

Consolidates and amends the Sun Grant Program to expand input from other appropriate federal agencies and replace authority for gasification research with bioproducts research. Makes program competitive by removing designation of certain universities as regional centers. Reauthorizes at $75 million per year through

FY2018, subject to appropriations. [Sec. 7514]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 7504]

Nearly identical to the Senate bill. [Sec. 7512]

Nearly identical to the Senate bill. [Sec. 7513]

Identical to the Senate bill. [Sec. 7517]

Nearly identical to the Senate bill. [Sec. 7518]

CRS-123

Current Law/Policy—Research

Authorizes research and education grants to study the development of antibiotic-resistant bacteria. [7

U.S.C. 3202]

Authorizes competitive grants for a Farm and

Ranch Stress Assistance Network. [7 U.S.C. 5936]

Authorizes competitive grants to carry out a seed distribution program to administer and maintain the distribution of vegetable seeds donated by commercial seed companies. [7 U.S.C. 415-1]

Requires a study and report on food deserts (area with limited access to affordable food). [P.L. 110-

246; 122 Stat. 2039]

Authorizes competitive grants for agricultural and rural transportation research and education activities. [Sec. 7 U.S.C. 5938]

USDA may negotiate agreements granting concessions at the National Arboretum to nonprofit scientific or educational organizations.

[Sec. 20 U.S.C. 196]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision. No comparable provision.

No comparable provision. No comparable provision.

No comparable provision.

No comparable provision.

CRS-124

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repeals current law. [Sec. 7514]

Repeals current law. [Sec. 7515]

Repeals current law. [Sec. 7516]

Repeals current law. [Sec. 7519]

Repeals current law. [Sec. 7520]

Net proceeds from the agreements shall be used exclusively for research and educational work for the benefit of the National Arboretum. A non-profit organization that entered into an agreement may recognize donors if that recognition is approved in advance by the Secretary. [Sec. 7601]

Requires USDA to submit to Congress a report on the fungus fusarium oxysporum f. sp. vasinfectum race 4 and the impact of such fungus on cotton. [Sec. 7602]

USDA may authorize a non-federal entity to construct, at no cost and without obligation of the federal government, a facility for use by the Agricultural Research Service on land owned by the agency. Subject to certain conditions, the facility may be accepted as a gift if the value does not exceed $5 million. [Sec. 7603]

Miscellaneous technical correction. [Sec. 7604]

Allows an institution of higher education to grow

Current Law/Policy—Research Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

industrial hemp if cultivated for purposes of research and if allowed under the laws of the State in which the institution is located. [Sec. 7605]

CRS-125

Title VIII. Forestry

Current Law/Policy—Forestry

Program Repeal

Sec. 4 of the Cooperative Forestry Assistance Act of 1978 (CFAA, P.L. 95-313), as amended, authorizes and establishes the Forest Land

Enhancement Program (FLEP) between

FY2002-FY2008. The program was not reauthorized in the 2008 farm bill. [16 U.S.C.

2301]

Sec. 6 of the CFAA, as amended, authorizes and establishes the Watershed Forestry Assistance

Program (WFAP) between FY2004-FY2008.

Funding has never been appropriated. [16 U.S.C.

2301b]

Sec. 18 of the CFAA, as amended, authorizes and establishes the Cooperative National Forest

Products Marketing Program between

FY1988-FY1991. Since FY1993, funding is appropriated through the Economic Action

Program (EAP), administered by the U.S. Forest

Service. [16 U.S.C. 2112]

Sec. 8402 of the 2008 farm bill, as amended, authorizes the Hispanic-serving institution

agricultural land national resources

leadership program to provide undergraduate forestry scholarships. Funding has never been appropriated. [16 U.S.C. 1649a]

Sec. 303 of the Healthy Forest Restoration Act of

2003 (HFRA, P.L. 108-148), as amended, authorizes and establishes the Tribal watershed forestry

assistance program between FY2004-FY2008.

Funding has never been appropriated. [16. U.S.C.

6542]

Senate-Passed 2013 Farm Bill (S. 954)

Repeals FLEP, effective October 1, 2013. [Sec. 8001]

No comparable provision.

No comparable provision.

Repeals the Hispanic-serving institution agricultural land national resources leadership program, effective October

1, 2013. [Sec. 8002]

Repeals the Tribal watershed forestry assistance program, effective October, 1, 2013. [Sec. 8003]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 8001]

Repeals WFAP, effective October, 1, 2013. [Sec. 8002]

Repeals the Cooperative National Forest Products

Marketing Program. [Sec. 8003]

Identical to the Senate bill. [Sec. 8004]

Identical to the Senate bill. [Sec. 8005]

CRS-126

Current Law/Policy—Forestry Senate-Passed 2013 Farm Bill (S. 954)

Sec. 322 of the Department of the Interior and

Related Agencies Appropriations Act of 1993 (P.L.

102-381, also known as the Appeals Reform Act), requires the U.S. Forest Service to provide public notice, comment, and appeals for land and resource management plans and projects developed under the Forest and Rangeland Renewable Resources

Planning Act of 1974 [16 U.S.C. 1612, note]

Sec. 428 of the Consolidated Appropriations Act of

2012, requires USDA to implement a pre-decisional objection process for projects implementing land and resource management plans developed under the Forest and Rangeland Renewable Resources

Planning Act of 1974. [16 U.S.C. 6515, note]

No comparable provision.

No comparable provision.

Reauthorization of Forestry-Related Programs

Sec. 2A(f)(1) of the CFAA, as amended, authorizes up to $10 million in annual appropriations between

FY2008-FY2012 to carry out the state-wide

assessment and strategies for forest

resources. [16 U.S.C. 2101a(f)(1)]

Sec. 2A(c) of the CFAA, as amended, directs the coordination of certain specified federal, state, and tribal parties in the development of state-wide

assessment and strategies for forest

resources. [16 U.S.C. 2101a(c)]

Sec. 7 of the CFAA, as amended, permanently authorizes such sums as necessary to be appropriated to carry out the Forest Legacy

Program (FLP). FLP was created to protect forests that might soon be cleared for non-forest uses and received average annual appropriations of approximately $58 million from FY2008-FY2012.

[16 U.S.C. 2103c]

Reauthorizes funding to carry out the state-wide assessment and strategies for forest resources at $10 million annually through FY2018. [Sec. 8101]

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Repeals Sec. 322. [Sec. 8006]

Prohibits Sec. 428 from applying to any project or activity implementing a land and resource management plan that is categorically excluded from an environmental assessment (EA) or environmental impact statement (EIS) under the National Environmental Policy Act (NEPA).

[Sec. 8006]

No comparable provision.

Adds military installments, where feasible, to the list of coordinating agencies. [Sec. 8101]

Eliminates permanent authority to receive annual appropriations of such sums as necessary, and instead authorizes FLP to receive such sums as necessary for

FY2013 and $55 million annually between FY2014 and

FY2018, subject to appropriations. [Sec. 8102]

CRS-127

Current Law/Policy—Forestry

Sec. 7a of the CFAA, as amended, permanently authorizes such sums as necessary to be appropriated to carry out the Community

Forest and Open Space Conservation

program. The program provides financial assistance to local governments, tribes, and nonprofit organizations for preventing the conversion of forestland to non-forest uses.

Appropriations between FY2010-FY2012 for this program were less than $2 million annually. [16

U.S.C. 2103d]

Sec. 2371(d)(2) of the Food, Agriculture,

Conservation, and Trade Act of 1990 (P.L. 101-624,

1990 farm bill), as amended, authorizes appropriations of $5 million annually through

FY2013 to carry out the rural revitalization

technologies program. [7 U.S.C. 6601(d)(2)]

Sec. 2405 of the Global Climate Change Prevention

Act of 1990 (within the 1990 farm bill), as amended, authorizes such sums as necessary to be appropriated to administer the Office of

International Forestry until FY2013. The office received an average annual appropriation of approximately $7.5 million from FY2008-FY2012.

[7 U.S.C. 6704]

Sec. 347 of the Department of the Interior and

Related Agencies Appropriations Act of 1999 (P.L.

105-277), as amended, authorizes the Forest

Service and Bureau of Land Management to enter into stewardship end-result contracting projects (stewardship contracts) to enter into contracts or agreements for services to achieve land management goals. Authority expires

September 30, 2013. [16 U.S.C. 2104, note]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Reauthorizes funding to carry out the rural revitalization technologies program at $5 million annually through

FY2018, subject to appropriations. [Sec. 8201]

Reauthorizes the Office of International Forestry to receive such sums as necessary through FY2018 subject to appropriations. [Sec. 8202]

Repeals current authority and adds similar provisions to create a new Sec. 603 of the HFRA, as amended.

Authorizes stewardship contracts, of 5-10 years, to achieve land management goals. Includes performance, monitoring, evaluation, and reporting requirements. [Sec.

8204]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Eliminates permanent authority to receive annual appropriations of such sums as necessary, and instead authorizes the program to receive such sums as necessary for FY2013 and $1.5 million annually for FY2014-FY2018, subject to appropriations. [Sec. 8103]

Identical to the Senate bill. [Sec. 8201]

Similar to Senate bill, except authorizes such sums as necessary for FY2013 and $6 million annually for FY2014-

FY2018, subject to appropriations. [Sec. 8202]

Reauthorizes current authority to September 30, 2018, gives the Secretary of Agriculture the discretion to consider a contract entered under this authority as a contract for the sale of property, and requires fire liability provisions be incorporated into all contracts and agreements entered under this authority. [Sec. 8204]

CRS-128

Current Law/Policy—Forestry

Sec. 508 of the HFRA, as amended, authorizes the

Healthy Forests Reserve Program (HFRP) to receive $9.75 million of mandatory funding annually through FY2012. [16 U.S.C. 3578] Sec. 502(e)(3) of the HFRA, as amended, authorizes the enrollment of acreage owned by Indian tribes into

HFRP through 30-year contracts, 10-year costshare agreements, or any combination thereof. [16

U.S.C. 6572(e)(3)]

National Forest Critical Area Response

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Eliminates mandatory funding authority and replaces with authorization to receive appropriations of $9.75 million annually through FY2018. Adds a definition of “acreage owned by Indian tribes.” Enrollment options are unchanged. Provides flexibility for funding technical assistance. [Sec. 8205]

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Eliminates mandatory funding authority and replaces with authorization to receive appropriations of $9.75 million annually through FY2018. Provides flexibility for funding technical assistance. Does not include the Senate language related to acreage owned by Indian tribes. [Sec. 8203]

Note: The National Forest Critical Area Response subtitle is similar to a stand-alone bill introduced in the

House (H.R. 1895). [Sec. 8301-7304]

Defines critical area, National Forest System, and

Secretary. [Sec.7301]

Requires the designation of critical areas with the

National Forest system to address deteriorating forest health and future risks to forest health. Requires USDA to use the most recent annual forest health aerial surveys to determine current forest health, and the National

Insect and Disease Risk map to determine future risks to forest health. The first critical area must be designated within 60-days of enactment and critical areas will not expire for 10-years. [Sec. 8302]

Allows the use of expedited procedures set forth in

HFRA (environmental analysis, administrative review, and judicial review), with some modifications, to be used for critical areas. Exempts critical areas from the notice and comment and appeals requirements for land and resource management plans and projects. Excludes projects less than 10,000 acres from conducting an EA or an EIS under

NEPA, or a special administrative review under Sec. 105 of the HFRA, unless the land is in a National Wilderness

Preservation System, federal land where vegetation removal is prohibited, wilderness study area, or

CRS-129

Current Law/Policy—Forestry

Sec. 331 of the Department of the Interior and

Related Agencies Appropriations Act of 2001 (P.L.

106-291), as amended, authorizes the Forest

Service and Bureau of Land Management in

Colorado to enter into cooperative agreements or contracts with the state of Colorado to provide watershed restoration and protection services on adjacent federal land—referred to as the Good

Neighbor Authority. Sec. 337 of the

Consolidated Appropriations Act of 2005 (P.L.

108-447), as amended, extends the authority to the Forest Service in the state of Utah. Authority expires September 30, 2013.

Miscellaneous Forestry Provisions

Sec. 4 of the McIntire-Stennis Cooperative Forestry

Act (P.L. 87-788), as amended, establishes funding requirements for college and university forestryrelated research. [16 U.S.C. 582a-3]

Sec. 8 of the McIntire-Stennis Cooperative Forestry

Act, as amended, defines ‘states’ as including Puerto

Rico, the Virgin Islands, and Guam. [16 U.S.C.

582a-7]

Sec. 3(e) of the Forest and Rangeland Renewable

Resources Research Act of 1978 (P.L. 95-307), as amended, requires USDA to establish a program to inventory and analyze public and private forests and their resources. [16 U.S.C. 1642(e)]

Sec. 1252 of FSA, as amended, authorizes an

Agriculture Conservation Experienced

Service Program (ACES), such that USDA can enter into agreements with organizations to provide technical assistance (excludes

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Waives the matching requirements for 1890 Institutions for allocations below $200,000. [Sec. 8301(a)]

Adds Federated States of Micronesia, American Samoa,

Northern Mariana Islands, and the District of Columbia to the definition of ‘state.’ [Sec. 8301(b)]

Requires USDA to revise the strategic plan for forest inventory and analysis and report revisions to Congress.

[Sec. 8302]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

inconsistent with the land and resource management plan.

[Sec. 8303]

Extends the Good Neighbor Authority to any state that contains National Forest System land and authorizes state foresters to provide forest, rangeland, watershed restoration, management, and protection services.

Agreements and contracts are exempt from certain timber sale requirements. NEPA decisions may not be delegated through agreements or contracts. Adds commercial harvesting or other mechanical vegetative treatments as an authorized service. [Sec. 8304]

No comparable provision.

No comparable provision.

Identical to the Senate bill. [Sec. 8401]

Authorizes a program similar to the Agricultural

Conservation Experienced Services (ACES) program under the conservation title (Title II) to provide technical services for conservation-related programs and authorities on National Forest Service lands. [Sec. 8402]

CRS-130

Current Law/Policy—Forestry

administrative tasks) using qualified individuals 55 years or older. [16 U.S.C. 3851]

Sec. 3(d)(2) of the Forest and Rangeland Renewable

Resources Research Act of 1978 (P.L. 95-307), as amended, sets research and education priorities for the Forest Service. [16 U.S.C. 1642(d)(2)]

Sec. 14(g) of the National Forest Management Act of 1976 [16 U.S.C. 472a(g)] requires the physical designation or marking of trees or forest products for timber sale harvests.

No comparable provision.

No comparable provision.

No comparable provisions.

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

Allows the Secretary of Agriculture to serve as an intermediary between States seeking reimbursement of fire funds, subject to terms and conditions. [Sec. 8303]

No comparable provision.

No comparable provision.

Requires USDA to designate treatment areas in at least one national forest in each state, if requested by the

Governor of the state, where there is declining forest health from insect or disease infestation. Authorizes

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Adds demonstrating the beneficial characteristics of wood as a green building material as a research and education priority and requires the Secretary to submit an annual report to Congress describing the Forest Service’s research on and application of wood as a green building material. [Sec. 8403]

Authorizes the Forest Service to designate harvest material through description (describing specific characteristics of trees for harvest, such as a certain species of tree with a given stump diameter) or prescription (prescribing the desired post-harvest characteristics, such as thinning a stand to a specific basal area factor), in addition to physically designating or marking individual trees for harvest. [Sec. 8404]

Identical to the Senate bill. [Sec. 8405]

Requires the Secretary of Agriculture to submit a report to Congress containing an assessment of the raw material needs and ability of the national forests to fulfill those needs of wood-producing facilities located within 100 miles of a national forest, and a comparison of the volume of timber sold and harvested from each national forest to the allowable sale quality indicated in each Forest Plan for the past decade [Sec. 8406]

Requires the Secretary to submit a report to Congress on the status of national forest roads and trails. [Sec.

8407]

No comparable provision.

CRS-131

Current Law/Policy—Forestry

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

appropriations of $200 million annually through FY2018.

New Sec. 602 of the HFRA [Sec. 8203]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Authorizes the Forest Service to establish a large airtanker and aerial asset lease program and to enter into mulityear lease contracts for up to five aircraft, subject to appropriations. [Sec. 8408]

CRS-132

Title IX. Energy

Current Law/Policy—Energy Senate-Passed 2013 Farm Bill (S. 954)

Definitions

Advanced Biofuel. Fuel derived from renewable biomass other than corn kernel starch. Includes biofuel derived from sugar and starch other than corn kernel starch, renewable biodiesel, biogas produced from organic matter, as well as other fuels (e.g., home heating fuels, and aviation and jet fuels) from cellulosic biomass (including organic waste material). [7 U.S.C. 8101(3)]

Biobased Product. A commercial or industrial product—i.e., intermediate, feedstock, or end product (other than food or feed)—composed in whole or in part of biological products including renewable agricultural and forestry materials.

[7 U.S.C. 8101(4)]

Biofuel. A fuel derived from renewable biomass.

[7 U.S.C. 8101(5)]

Biomass Conversion Facility. A facility that converts renewable biomass into heat, power, biobased products, or advanced biofuels.

[7 U.S.C. 8101(6)]

Biorefinery. A facility (including equipment and processes) that converts renewable biomass into biofuels and biobased products, and may produce electricity. [7 U.S.C. 8101(7)]

No comparable provision.

Same as current law. [Sec. 9001]

Same as current law. [Sec. 9001]

Same as current law. [Sec. 9001]

Same as current law. [Sec. 9001]

Same as current law. [Sec. 9001]

Renewable Biomass. Includes- (A) materials, pre-commercial thinnings, or invasive species from

Forest Product. A product made from materials derived from the practice of forestry or the management of growing timber including pulp, paper, paperboard, pellets, lumber, and wood products, and any recycled products derived from forest materials. [Sec. 9001]

Same as current law. [Sec. 9001]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Same as current law. [Sec. 9001]

Similar to current law except for the explicit inclusion of forestry materials that meet biobased content requirements, notwithstanding the market share the product holds, the age of the product, or whether the market for the product is new or emerging. [Sec. 9001]

Same as current law. [Sec. 9001]

Same as current law. [Sec. 9001]

Same as current law. [Sec. 9001]

Identical to the Senate bill. [Sec. 9001]

Same as current law. [Sec. 9001]

CRS-133

Current Law/Policy—Energy

National Forest System land and public lands that are: byproducts of designated preventive treatments (removed to reduce hazardous fuels, to reduce or to contain disease or insect infestation, or to restore ecosystem health), not used for higher value products, and harvested in accordance with applicable law and land management plans and requirements for old-growth maintenance, restoration, and management and large-tree retention, or (B) any organic matter available on a recurring basis from non-federal or Indian land including: renewable plant material (including agricultural commodities, plants and trees, and algae) and waste material (including crop residue, vegetative waste, wood waste and residues, animal waste and byproducts, and food and yard waste).

[7 U.S.C. 8101(12)]

No comparable definition.

Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Renewable Chemical. A monomer, polymer, plastic, formulated product, or chemical substance produced from renewable biomass. [Sec. 9001]

Same as current law. [Sec. 9001]

No comparable definition.

Renewable Energy. Energy derived from a wind, solar, renewable biomass, ocean (including tidal, wave, current, and thermal), geothermal, or hydroelectric source. [7 U.S.C. 8101(13)]

No comparable definition.

Same as current law. [Sec. 9001]

No comparable definition. Renewable Energy System. A system that produces energy from a renewable source including distribution components necessary to move energy produced by such a system to the initial point of sale, but not any mechanism for dispensing energy at retail (e.g., a blender pump). [Sec. 9001]

Authorized Programs

Biobased Markets Program. Extended by the

2008 farm bill. Requires federal agencies to purchase products with maximum biobased content subject to availability and flexibility and

Extends the Biobased Markets Program through FY2018 including, in addition to preference for biobased products, establish a targeted biobased-only procurement requirement for federal agencies. Limits reporting on the

Extends current law through FY2018. Authorizes to be appropriated $2 million annually for FY2014-FY2018. No mandatory funding is authorized. [Sec. 9002]

CRS-134

Current Law/Policy—Energy

performance standards. Minimum biobased content standards applied to federal contracts on case-bycase basis. Continued voluntary labeling.

Authorized mandatory funding of $1 million for

FY2008 and $2 million annually for FY2009-FY2012; no mandatory funding was authorized for FY2013.

Authorized to be appropriated $2 million annually for FY2009-FY2013 for testing and labeling.

[7 U.S.C. 8102]

Biorefinery Assistance Program. Established by the 2008 farm bill. Assists in development of new and emerging technologies for advanced biofuels by providing competitive grants (up to 30% of total project costs) and loan guarantees (limited to $250 million or 80% of project cost) for construction and/or retrofitting of demonstration-scale biorefineries to demonstrate the commercial viability of one or more processes for converting renewable biomass to advanced biofuels. Provided mandatory funding of $75 million in FY2009 and

$245 million in FY2010, available until expended, for loan guarantees. Authorized to be appropriated

$150 million annually for FY2009-13 for grants.

[7 U.S.C. 8103]

Senate-Passed 2013 Farm Bill (S. 954)

availability, relative price, performance and environmental and public health benefits of biobased materials subject to the availability of data. Adds reporting requirements of quantities and types of biobased products purchased by procuring federal agencies and a focus on biobased content requirements (explicitly including forest products). Mandates (within 1 year of enactment) designation of intermediate ingredients or feedstocks and assembled and finished biobased products according to guidelines. Adds auditing and compliance activities to ensure proper use of biobased labeling. Adds an outreach, education, and promotion component (with annual reports) to increase awareness of biobased products.

Mandates study (and report) by USDA to assess economic impact of biobased product industry, due 180 days after enactment. Encourages expedited coordination, review and approval (with appropriate technical assistance) of forest-related biobased products.

Authorizes mandatory funding of $3 million annually for

FY2014-FY2018. Authorizes to be appropriated $2 million annually for FY2014-FY2018. [Sec. 9002]

Renamed as the Biorefinery, Renewable Chemical,

and Biobased Product Manufacturing Assistance

Program. Extends and expands the program to include renewable chemical (as defined above in Sec. 9001) and biobased product manufacturing (defined as development, construction, and retrofitting of technologically new commercial-scale processing and manufacturing equipment and required facilities used to convert renewable chemicals and other biobased outputs into commercial-scale end products). Extends grants and loan guarantee availability to the development and construction of renewable chemical and biobased product manufacturing facilities. Authorized mandatory funding of

$100 million for FY2014 and $58 million each for FY2015-

FY2016, but not more than $25 million of FY2014-

FY2015 may be used to promote biobased product

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Extends current law through FY2018 except that the program is limited to loan guarantees (grants are eliminated); demonstration-scale biorefineries are no longer eligible for loan guarantees. Authorizes to be appropriated $75 million annually for FY2014-FY2018. No mandatory funding is authorized. [Sec. 9003]

CRS-135

Current Law/Policy—Energy

Repowering Assistance Program. Established by the 2008 farm bill. Provides funds to reduce or eliminate the use of fossil fuels for processing or power in biorefineries in existence at enactment.

Not more than 5% of funds are available to eligible producers with a refining capacity exceeding 150 million gallons of advanced biofuel per year.

Provided mandatory CCC funding of $35 million for FY2009, available until expended. Authorized to be appropriated $15 million annually for FY2009-

13. [7 U.S.C. 8104]

Bioenergy Program for Advanced Biofuels.

Established by the 2008 farm bill. Provides payments to producers to support and expand production of advanced biofuels by entering into contracts to pay producers for production of eligible advanced biofuels. Provided mandatory funding of $55 million (FY2009), $55 million

(FY2010), $85 million (FY2011), and $105 million

(FY2012), available until expended. Authorized to be appropriated $25 million annually (FY2009-13)

[7 U.S.C. 8105]

Biodiesel Fuel Education Program. Extended by the 2008 farm bill. Awards competitive grants to nonprofit organizations that educate fleet operators and the public on biodiesel benefits. Provided mandatory CCC funding of $1 million annually

(FY2008-FY2012). Authorized to be appropriated

$1 million for FY2013. [7 U.S.C. 8106]

Rural Energy for America Program (REAP).

Established by the 2008 farm bill. Provides financial assistance of grants, guaranteed loans, and combined grants and guaranteed loans for the

Senate-Passed 2013 Farm Bill (S. 954)

manufacturing. Authorized to be appropriated $150 million annually for FY2014-FY2018. [Sec. 9003]

No comparable provision.

Extends the Bioenergy Program for Advanced Biofuels

Program through FY2018. Authorizes to be appropriated

$20 million annually for FY2014-FY2018. No mandatory funding is authorized. [Sec. 9004]

Extends the Biodiesel Fuel Education Program through

FY2018. Authorizes mandatory funding of $1 million annually for FY2014-FY2018. Authorizes to be appropriated $1 million annually for FY2014-FY2018.

[Sec. 9005]

Extends REAP through FY2018. Grants are limited to the lesser of $500,000 or 25% of the cost of the RES or EEI activity. Repeals the use of REAP funds for feasibility studies. Adds a 3-tiered application process with separate

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Extends current law through FY2018. Authorizes to be appropriated $10 million annually for FY2014-FY2018. No mandatory funding is authorized. [Sec. 9004]

Nearly identical to the Senate bill, except the House authorizes to be appropriated $50 million annually for

FY2014-FY2018. [Sec. 9005]

Extends the Biodiesel Fuel Education Program through

FY2018. Authorizes to be appropriated $2 million annually for FY2014-FY2018. No mandatory funding is authorized. [Sec. 9006]

Nearly identical to the Senate bill except that the grant ceiling of $500,000 is not imposed in the House, and it is silent as regards use of funds for feasibility studies. No mandatory funding is authorized—instead, $45 million is

CRS-136

Current Law/Policy—Energy

development and construction of renewable energy systems (RES) and for energy efficiency improvement (EEI) projects (eligible entities include rural small businesses and agricultural producers); grants for conducting energy audits and for conducting renewable energy development assistance (eligible entities include state, tribe, or local governments, land-grant colleges and universities, rural electric cooperatives, and public power entities); and grants for conducting RES feasibility studies (eligible entities include rural small businesses and agricultural producers). Grants are limited to $500,000 for RES and $250,000 for EEI activities up to 25% of the cost of the RES or EEI activity. Loan guarantees are limited to a max of

$25 million and a min of $5,000 up to 75% of the cost of a funded activity. Provides mandatory funds:

$55 million (FY2009), $60 million (FY2010), $70 million (FY2011), and $70 million (FY2012), available until expended. Authorizes $25 million annually, subject to appropriations

(FY2009-FY2013). [7 U.S.C. 8107]

Biomass Research & Development Initiative

(BRDI). Created originally under the Biomass

Research & Development Act of 2000 [P.L. 106-

224], and extended by the 2008 farm bill. Provides competitive funding as grants, contracts, and financial assistance for research, development, and demonstration of technologies and processes leading to commercial production of biofuels and biobased products. Provides for coordination between USDA and DOE work related to biofuels and biobased products research and development programs through the Biomass Research and

Development Board. Provides mandatory funding:

$20 million (FY2009), $28 million (FY2010), $30 million (FY1022), and $40 million (FY2012).

Senate-Passed 2013 Farm Bill (S. 954)

application processes for grants and loan guarantees for

RES and EEI projects based on the project cost: tier-1 for projects < $80,000; tier-2 for $80,000 < projects <

$200,000; and tier-3 for projects > $200,000. Authorizes mandatory funding of $68.2 million annually for FY2014-

FY2018. Authorizes to be appropriated $20 million annually for FY2014-FY2018. [Sec. 9006]

Extends BRDI through FY2018. Authorizes mandatory funding of $26 million annually for FY2014-FY2018.

Authorizes to be appropriated $30 million annually for

FY2014-FY2018. [Sec. 9007]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

authorized to be appropriated annually for FY2014-

FY2018. [Sec. 9007]

Extends BRDI through FY2018. No mandatory funding is authorized. Authorizes to be appropriated $20 million annually for FY2014-FY2018. [Sec. 9008]

CRS-137

Current Law/Policy—Energy

Authorizes to be appropriated $35 million annually

(FY2009-FY2013). [7 U.S.C. 8108]

Rural Energy Self-Sufficiency Initiative.

Established by amended Sec. 9009 [Sec. 9001] of

2008 farm bill. Provides cost-share grants (up to

50%) for rural communities to assess energy systems and make improvements. Authorizes to be appropriated $5 million annually (FY2009-FY2013); however, no funds were ever appropriated and no rules were ever promulgated. [7 U.S.C. 8109]

Feedstock Flexibility Program. Established by the 2008 farm bill. Authorizes use of CCC funds

(such sums as necessary) to purchase sugar

(intended for food use but deemed to be in surplus) for resale as a biomass feedstock to produce bioenergy. USDA would implement the program only in those years where purchases are determined to be necessary to ensure that the sugar program operates at no cost to the federal government. [7 U.S.C. 8110]

Biomass Crop Assistance Program (BCAP).

Established by the 2008 farm bill. Provides financial assistance to owners and operators of agricultural land and nonindustrial private forest land who wish to establish, produce, and deliver biomass feedstocks under two categories of assistance: (A) establishment and annual payments provided under contract between USDA and participating producers, including a one-time payment of up to

75% of cost of establishment for perennial crops, and annual payments (rental rates based on a set of criteria) of up to 5 years for non-woody and 15 years for woody perennial biomass crops, and (B) matching payments at a rate of $1 for each $1 per ton provided, up to $45 per ton, for a period of 2 years to help eligible material owners with

Senate-Passed 2013 Farm Bill (S. 954)

No provision. Hence, program funding authority would expire after FY2013.

Extends the Feed Stock Flexibility Program through

FY2018. [Sec. 9008]

Extends BCAP through FY2018. Changes enrolled land eligibility; includes residue from crops receiving Title I payments as eligible material, but extends exclusion to any whole grain from a Title I crop, as well as bagasse and algae. One-time establishment payments are limited to no more than 50% of cost of establishment, not to exceed

$500 per acre ($750/acre for socially disadvantaged farmers or ranchers). CHST matching payments may not exceed $20 per dry ton but are available for a 4-year period. Not later than 4 years after enactment, USDA shall submit a report on best practice data and information gathered from participants. Authorizes mandatory funding of $38.6 million annually for FY2014-

FY2018. Not less than 10% or more than 50% of funding may be used for CHST. [Sec. 9009]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No provision. Hence, program funding authority would expire after FY2013.

Identical to the Senate bill. [Sec. 9009]

Extends BCAP through FY2018. Removes criteria defining eligible materials and exclusions to eligible materials.

Removes all support for CHST. No mandatory funding is authorized. Authorizes to be appropriated $75 million annually for FY2014-FY2018. [Sec. 9010]

CRS-138

Current Law/Policy—Energy

collection, harvest, storage, and transportation

(CHST) of eligible material for use in a qualified biomass conversion facility. Eligible material excludes Title I crops, animal waste and byproducts, food and yard waste, and algae.

Provides mandatory CCC funding of such sums as necessary annually for FY2008-FY2012. Authorized to be appropriated $20 million for FY2013.

[7 U.S.C. 8111]

Forest Biomass for Energy Program.

Established by the 2008 farm bill. Requires the

Forest Service to conduct a competitive research and development program to encourage use of forest biomass for energy. Authorized to be appropriated $15 million annually (FY2009-

FY2013). [7 U.S.C. 8112]

Community Wood Energy Program.

Established by the 2008 farm bill. Provides grants of up to $50,000 for up to 50% of the cost for communities to plan and install wood energy systems in public buildings. The energy system acquired with grant funds shall not exceed an output of 50,000,000 Btu per hour for heating and

2 megawatts for electric power production.

Authorized to be appropriated $5 million annually

(FY2009-FY13). [7 U.S.C. 8113]

Biofuels Infrastructure Study. The 2008 farm bill required USDA to conduct a study (and report) to assess the infrastructure needs for expanding the domestic production, transport, and distribution of biofuels given current and likely future market trends with recommendations for such infrastructure through 2025 based on needs, costs, and other factors. No specific time frame or funding was provided. [Sec. 9002 of P.L. 110-246]

Senate-Passed 2013 Farm Bill (S. 954)

Repeals the Forest Biomass for Energy Program.

[Sec. 9010]

Extends the Community Wood Energy Program through

FY2018. Authorizes grants of up to $50,000 to be made to establish or expand biomass consumer cooperatives that will provide consumers with services or discounts relating to the purchase of biomass heating systems or products (including their delivery and storage). Any biomass consumer cooperative that receives a grant must match at least the equivalent of 50% of the funds toward the establishment of expansion of a biomass consumer cooperative. Authorizes to be appropriated $5 million annually for FY2014-FY2018. [Sec. 9011]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

Extends the Community Wood Energy Program through

FY2018. Authorizes to be appropriated $2 million annually for FY2014-FY2018. [Sec. 9011]

Repeals the requirement to conduct the study (and report). [Sec. 9012]

CRS-139

Current Law/Policy—Energy

Renewable Fertilizer Study. The 2008 farm bill required USDA to conduct a study to assess the current state of knowledge on the potential for the production of fertilizer from renewable energy sources in rural areas. Study was to be completed within one year of receiving an appropriation.

Authorized to be appropriated $1 million for

FY2009. [Sec. 9003 of P.L. 110-246]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Requirement to conduct the study is repealed. [Sec.

9012]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 9013]

Energy Efficiency Report for USDA Facilities.

Within 180 days after enactment, USDA is required to submit a report to the House and Senate Agriculture

Committees on energy use and energy efficiency projects at USDA facilities. [Sec. 9014]

CRS-140

Title X. Horticulture

(unless otherwise specified)

Current Law/Policy—Horticulture

Marketing and Promotion, and Trade

Block Grants to States. The Specialty Crops

Competitiveness Act of 2004 (P.L. 108-465), as amended by the 2008 farm bill, authorized block grants to states to support projects in marketing, research, pest management, and food safety, among other purposes. Current mandatory CCC funding is $55 million annually (FY2010-FY2013). [7 U.S.C.

1621 note]

Farmers' Market Promotion Program

(FMPP). The Farmer-to-Consumer Direct

Marketing Act (P.L. 94-463), as amended, originally authorized the FMPP to promote farmers' markets, roadside stands, community-supported agriculture programs, agri-tourism activities, and other direct producer-to-consumer market opportunities.

Authorized annual appropriations for grants to local governments and nonprofit organizations. Current mandatory CCC funding is $10 million annually

(FY2011-FY2012). [7 U.S.C. 3005]

Note: Among the programs not included in the one-year extension of the 2008 farm bill in the

American Taxpayer Relief Act of 2012 (P.L. 112-

240).

Senate-Passed 2013 Farm Bill (S. 954)

Reauthorizes program through FY2018. Increases mandatory funding to $70 million annually (FY2014 through FY2018), which would also raise the minimum grant amount received by each state/territory. Changes additional allocation to be based on both production value and acreage (instead of production value only). Of the funds provided, allows for multistate project grants involving food safety, plant pests and disease, crop-specific projects addressing common issues, and any other area as determined by USDA, with increased funding starting at

$1 million (FY2013) to $5 million (FY2017). Allows for multistate projects for research. Limits administrative costs to 3% at the federal level and 8% at the state level.

[Sec. 10008]

Reauthorizes the current grant program, but changes the scope and name of the program to the “Farmer’s Market and Local Food Promotion Program.” Expands the program to include local and regional food enterprises that process, distribute, aggregate, store, and market locally or regionally produced food products, designating

50% of available funds for this purpose. Increases mandatory funding to $20 million annually (FY2014 through FY2018), and separately authorizes appropriations of $20 million each year (FY2014-FY2018).

Limits use of funds for administration to 10%. Requires

USDA, when awarding grants, to give priority to proposals for projects that benefit underserved communities, mid-sized farm and ranch operations, and build capacity for local/regional food systems. [Sec.

10003]

Note: Another related provision is in Title IV (Nutrition, the

Seniors Farmers’ Market Nutrition Program). [Sec. 4202]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Similar to the Senate bill, but provides higher funding levels: $72.5 million annually (FY2014-2017) and $85 million (FY2018). Requires 50% cost-sharing by states for equipment or capital-related research costs. [Sec. 10007]

Similar to the Senate bill, except that the House bill provides $30 million annually (FY2014-FY2018) in CCC funding but limits the appropriations authority to $10 million annually, and caps administrative expenses at 3% of funding. [Sec. 10003]

CRS-141

Current Law/Policy—Horticulture

Transporting Specialty Crops. Section 10403 of the 2008 farm bill authorized grants to various public and private entities to improve transporting specialty crops to markets. Authorized appropriations of such sums as necessary.

The Export Apple Act provides for the inspection and certification of U.S. apples before entering foreign commerce. [7 U.S.C. 584]

Senate-Passed 2013 Farm Bill (S. 954)

Repeals authorization under section 10403 of the 2008 farm bill. [Sec. 10002]

Exempts apples shipped to Canada in bulk bins (i.e., bins with apples weighing more than 100 lbs.) from inspection.

[Sec. 10011]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 10002]

Exempts apples shipped to Canada in bulk bins (i.e., bins with apples weighing more than 100 lbs.) from provisions of the Export Apple Act. Requires USDA to issue regulations to carry out this provision within 60 days of enactment. [Sec. 10010]

See Title III, Trade. [Sec. 3205] and [Sec. 3102] Trade Promotion. See also Title III (Trade) for reauthorization of Technical Assistance for

Specialty Crops (TASC) [7 U.S.C. 5680] and the

Market Access Program (MAP) [7 U.S.C. 5623]

The Commodity Promotion, Research and

Information Act of 1996 gives USDA’s Agricultural

Marketing Service (AMS) general authority to allow for the creation of generic promotion programs at the request of a group of producers. [7 U.S.C.

7411 et seq.]

Organic Certification

National Organic Program (NOP). The

Organic Foods Production Act (OFPA) of 1990

(P.L. 101-624, Title XXI; in 1990 farm bill), as amended by the 2008 farm bill, authorized the NOP to develop and enforce national standards for organically-produced agricultural products.

Authorized appropriations were $11 million in

FY2013, plus additional sums as necessary. [7

U.S.C. 6522] Provides for enforcement and penalties for violations of NOP’s labeling requirements for certified organic products. [7

U.S.C. 6519]

See Title III, Trade. [Sec. 3205] and [Sec. 3102]

No comparable provision.

Reauthorizes NOP and appropriations of $15 million annually (FY2014- FY2018). Provides mandatory funding of $5 million in FY2013 (available until expended) to modernize the NOP database and technology systems.

[Sec. 10005(b-c)] Amends OFPA’s recordkeeping, investigations, and enforcement provisions. [Sec. 10009]

Requires that USDA lift a stay of regulations related to establishing an industry-funded promotion, research, and information program for fresh-cut Christmas trees. [Sec.

10015]

Reauthorizes NOP and appropriations of $11 million annually (FY2014-FY2018). Requires the NOP to modernize its database and technology systems [Sec.

10004(b-c)] Amends OFPA’s investigations and enforcement provisions. [Sec. 10005]

CRS-142

Current Law/Policy—Horticulture

No research and promotion program for organic products currently exists.

Financial Assistance. Section 524(b) of the

Federal Crop Insurance Act, as amended, authorizes the Agricultural Management Assistance

(AMA) program. AMA provides financial and technical to producers in 16 specified states for conservation practices, risk mitigation, and market diversification. Provides $15 million in annual mandatory funding in FY2008 through FY2014, and

$10 million each fiscal year thereafter. Requires

50% to NRCS, 40% to RMA, and 10% to AMS. [7

U.S.C. 1524(b)]

Section 10606 of the 2002 farm bill established the

National Organic Certification Cost Share Program

(NOCCSP) to help producers and handlers of organic products obtain certification. Provided $22 million in mandatory funding in FY2008 (available until expended). [7 U.S.C. 6523]

Data and Information Collection

Market News. Section 10107 of the 2008 farm bill authorized support for the collection and dissemination of market news for specialty crops.

Authorized appropriations $9 million annually

(FY2008-FY2013) to remain available until expended. [7 U.S.C. 1622b(b)]

Organic Production and Market Data

Initiatives (ODI). Section 7407 of the 2002 farm bill, as amended by the 2008 farm bill, required

USDA to keep segregated data on organic production and marketing. Provided $5 million in mandatory CCC funding, plus authorized appropriations of $5 million annually (FY2008-

FY2012), both available until expended. Specified

Senate-Passed 2013 Farm Bill (S. 954)

Allows for USDA to develop a process to establish an organic research and promotion program (“check-off” program) for organic products. [Sec. 10012]

Authorizes $23 million in mandatory CCC funding annually (FY2014-FY2018) and combines the two programs to include (1) organic certification cost share assistance (50% of funds); (2) activities to support risk management education and outreach under the Federal

Crop Insurance Act (26% of funds); and (3) agricultural management assistance grants to producers in states with low federal crop insurance participation, for various conservation purposes (24% of funds). See Title XI, Crop

Insurance. [Sec. 11034] Per-person payments are limited to $50,000 in any one year.

For NOCCSP, based on the stated formula, total funding over the 5-year period (FY2014-FY2018) would be about

$57.5 million.

Reauthorizes program at $9 million subject to annual appropriations through FY2018. [Sec. 10001]

Reauthorizes appropriations of $5 million through

FY2018 (available until expended) and provides for funds to be available “annually thereafter.” Provides an additional $5 million in mandatory CCC funds (to remain available until expended). Requires coordination of

USDA’s data user agencies. [Sec. 10005(a)]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Allows for USDA to develop an organic research and promotion program (“check-off” program) for organic products, similar to Senate bill. [Sec. 10004(f)]

Repeals the National Organic Certification Cost-Share program. [Sec. 10004(d)]

Identical to the Senate bill. [Sec. 10001]

Reauthorizes appropriations of $5 million through

FY2018 (available until expended). [Sec. 10004(a)]

CRS-143

Current Law/Policy—Horticulture

that $3.5 million of available mandatory funds be allocated to AMS. [7 U.S.C. 5925c]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Requires USDA to collect data on the production and marketing of locally or regionally produced agricultural food products; facilitate interagency collaboration and data sharing on programs related to local and regional food systems; and monitor the effectiveness of programs designed to expand or facilitate local food systems.

Requires USDA to submit a report to House and Senate agriculture committees, within 1 year after enactment, describing its progress and identifying any additional needs related to developing local and regional food systems.

[Sec. 10004]

Reauthorizes to be appropriated $1 million annually to remain available until expended (FY2013- FY2018). [Sec.

10006]

Food Safety and Quality Standards

Produce Safety Education. Section 10105 of the

2008 farm bill amended the Agricultural Research,

Extension, and Education Reform Act of 1998 (P.L.

105-185) to implement a program to educate fresh produce industry personnel and consumers on ways to reduce pathogens in fresh produce.

Authorized appropriations of $1 million annually to remain available until expended [7 U.S.C.

7655a(c)]

No comparable provision.

Plant Pest and Disease Management

Pest and Disease Control. Sections 10201 and

10202 of the 2008 farm bill amended the Plant

Protection Act (PPA) to authorize an early plant pest detection and surveillance system and threat

Within 180 days after enactment, requires USDA to submit to the Food and Drug Administration a report that describes an appropriate federal standard for the identity of honey, and shall consider the March 2006

Standard of Identity citizens petition filed with FDA. [Sec.

10010]

Repeals program under Section 10202 of the 2008 farm bill and authorizes a consolidated plant pest and disease management and disaster prevention program, named the

“National Clean Plant Network”. Consolidates and

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Similar to Senate provision. [Sec. 10017]

Also reauthorizes the program through 2018 at $1 million annually subject to annual appropriations. Adds

“farmworkers” as part of the target audience for the education initiatives and lists “practices that prevent bacterial contamination of food, how to identify source of food contamination, and other means of decreasing food contamination” as part of the safe food handling practices addressed by USDA within the program. [Sec. 10006]

Identical to the Senate bill. [Sec. 10009]

Similar to the Senate bill, except that the House bill provides mandatory funding of $5 million for FY2013,

$62.5 million annually (FY2014-FY2017), and $75 million for FY2018. Of the available funds, requires at least $5

CRS-144

Current Law/Policy—Horticulture

identification/mitigation, among other activities, and a National Clean Plant Network where the specialty crop industry can obtain pest- and diseasefree planting stock. Provided mandatory CCC funds reaching $50 million in FY2012 (with provisions for annual funding of $50 million annually thereafter), plus another $5 million in FY2008 (available until expended). [7 U.S.C. 7721]

See also Title VII (Research) for reauthorization of the Office of Pest Management Policy and other pest management policies [7 U.S.C. 7653]

Senate-Passed 2013 Farm Bill (S. 954)

increases available mandatory funding levels: $60 million annually (FY2014-FY2017) and $65 million for FY2018 and each fiscal year thereafter. [Sec. 10007]

See Title VII, Research. [Sec. 7307] and [Sec. 7308]

Exemptions from Certain Regulatory Requirements

Biological Opinions. Under the Endangered

Species Act (ESA), federal agencies (such as EPA) are required to avoid jeopardy to listed species and adverse modification of designated critical habitat in their actions. They consult with the Fish and

Wildlife Service (FWS) or the National Marine

Fisheries Service (NMFS), which issue Biological

Opinions (BiOps) on jeopardy. If a BiOp finds a pesticide, or a specific use of it, would jeopardize a listed species, EPA would violate ESA if it allowed that pesticide or specific use. EPA restricts specific uses through labeling requirements. [16 U.S.C.

1536]

Federal Insecticide, Fungicide, and

Rodenticide Act (FIFRA) [7 U.S.C.136-136y] and Federal Food, Drug, and Cosmetic Act

(FFDCA) [21 U.S.C. §346a)] are among the major statutory authorities governing pesticide regulation.

No comparable provision.

No comparable provision.

Discharge Permits. In October 2011, EPA issued a Pesticide General Permit (PGP) requiring a Clean

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

million annually for the Clean Plant Network. [Sec.

10011]

See Title VII, Research. [Sec. 7310]

Creates an exception for amending pesticide registrations from ESA requirements for consultation, when a BiOp was issued before a certain date. The exception would require BiOps to comply with recommendations by a study to be conducted by the National Academy of

Sciences. Explicitly applies to BiOps completed prior to the date of completion of the study yet allows amendment of the pesticide registration only if that BiOp complies with the recommendations of the forthcoming study. [Sec. 10012]

Amends FIFRA so that “seed, including treated seed, shall not be considered a pesticide or device.” [Sec. 10014]

Requires EPA, in conjunction with USDA, to submit a report on the potential economic and public health effects of finalizing a proposed order (published on January 19,

2011) pertaining to the pesticide sulfuryl flouride. [Sec.

10016]

Use and Discharges of Authorized Pesticides.

Amends FIFRA and the CWA to provide that neither EPA

CRS-145

Current Law/Policy—Horticulture

Water Act (CWA) discharge permit for certain pesticide applications in or near waters of the

United States. EPA and states are implementing this permit requirement. Pertains to section 402 of

CWA [33 U.S.C. 1342]

Senate-Passed 2013 Farm Bill (S. 954)

Enforcement of Labor Law Provisions

The Fair Labor Standards Act (FLSA) of 1938 prohibits the shipment in interstate commerce of goods that are produced in violation of the act’s minimum wage, overtime, or child labor standards.

No comparable provision.

Invasive Species

Federal invasive species actions are governed by multiple statutes; responsible agencies are in the

U.S. Departments of Agriculture, Homeland

Security, Defense, Interior, State and others.

Coordination is through the National Invasive

Species Council (NISC) under E.O.13112. USDA’s

APHIS and NRCS focus on agricultural pests.

Research (Title VII) – Related Issues

See also Title VII (Research) for reauthorization of the Specialty Crop Research Initiative (SCRI) [7

U.S.C. 7632], the Organic Agriculture Research and Extension Initiative (OREI) [7 U.S.C. 5925b], the Organic Transitions Program (ORG) [7 U.S.C.

7626], and certain pest management activities [7

U.S.C. 7653]

CRS-146

No comparable provision.

See Title VII, Research.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

nor a state may require a CWA permit for discharge of a pesticide whose use has been authorized pursuant to

FIFRA. Defines specified circumstances where a permit would be required (e.g., municipal or industrial treatment works effluent that contains pesticide or pesticide residue). [Sec. 10013]

Directs the Secretary of Agriculture to consult with the

Secretary of Labor regarding restraints imposed by the

Department of Labor on the shipment of agricultural commodities for actual or alleged violations of labor law in order to consider the perishable nature of such commodities, the economic impact on farming operations of imposing such restraints, and the competitiveness of specialty crops through grants to states under Section

101 of the Specialty Crops Competitiveness Act of 2004

[Sec. 10008]

Requires an annual report by the Secretary of Agriculture on each invasive species in the U.S., not limited to agricultural pests. [Sec. 10018]

See Title VII, Research.

Current Law/Policy—Horticulture

Nutrition (Title IV) – Related Issues

See also Title IV (Nutrition) for reauthorization of

Section 32 funding to purchase fruits, vegetables, and certain other specialty food crops [7 U.S.C.

612c-4] and grants to achieve “hunger-free communities", among others [7 U.S.C. 7517]

Senate-Passed 2013 Farm Bill (S. 954)

See Title IV, Nutrition.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

See Title IV, Nutrition.

CRS-147

Title XI. Crop Insurance

Current Law/Policy—Crop Insurance

New or Revised Insurance Products

Permanently authorized by the Federal Crop

Insurance Act, the federal crop insurance program makes available subsidized crop insurance to producers who purchase a policy to protect against individual farm losses in yield, crop revenue, or whole farm revenue. In general, policies offer a guarantee at the individual farm level or area-wide

(e.g., county) level. The producer selects coverage level and absorbs the initial loss through the deductible. The insurance guarantee is based on the expected market price (i.e., no statutory minimum prices as in some farm programs).

Crop insurance policies are available for more than

100 crops, including farm program crops such as wheat, corn, soybeans, cotton, peanuts, and rice, as well as many specialty crops, fruit trees, pasture, rangeland, and forage crops. Area-wide policies are available for some but not all program crops.

Policies are sold and serviced through private insurance companies. The insurance companies' losses are reinsured by USDA, and their administrative and operating costs are reimbursed by the federal government. Crop insurance is administered by the U.S. Department of

Agriculture’s (USDA's) Risk Management Agency

(RMA), which operates and manages the Federal

Crop Insurance Corporation (FCIC) [7 U.S.C.

1501 et seq.]

Senate-Passed 2013 Farm Bill (S. 954)

Retains current program and makes available to crop producers an additional policy called Supplemental

Coverage Option (SCO) to cover part of the deductible under the producer’s underlying policy. SCO is an areawide (e.g., county) yield or revenue loss policy, whereby an indemnity is paid on area losses not more than the deductible level (e.g., 25%) selected by the producer for the underlying individual policy. On the SCO policy, the farmer incurs a deductible equal to 10% of the producer’s expected crop value. If the farmer participates in ARC under Title I, the deductible is 22%. SCO policies are to be made available for all crops if sufficient data are available. Premium subsidized at 65%. Coverage to begin no later than the 2014 crop year. [Sec. 11001] A crop margin coverage option is available as a single policy or in combination with a yield or revenue loss policy. [Sec.

11002]

Beginning with the 2014 crop, the FCIC shall make available to producers of upland cotton the Stacked

Income Protection Plan (STAX), which is a revenuebased, area-wide policy that may be purchased as a standalone policy or purchased in addition to any other individual or area policy. Indemnifies losses in county revenue of greater than 10% of expected revenue but not more than the deductible level (e.g., 25%) selected by the producer for the underlying individual policy (or not more than 30% if used as stand-alone policy). Premium subsidy is 80%. For individual producers, indemnities for

STAX and other policies cannot overlap. Includes a provision that allows use of recent yields in the guarantee.

A factor of not more than 120% is available to increase protection per acre [Sec. 11013]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

SCO provision is similar to the Senate bill. Coverage is triggered only if the area loss exceeds 10% and policy coverage does not exceed the difference between 90% and the coverage level selected by the producer for the underlying policy. Also, acres covered by Revenue Loss

Coverage (RLC) or STAX (see below) are not eligible for

SCO. [Sec. 11003]

STAX provision is same as in Senate bill. [Sec. 11016]

CRS-148

Current Law/Policy—Crop Insurance

Requires FCIC to improve coverage for organic crops. [U.S.C. 1522(c)(10)]

FCIC shall not conduct any pilot program that provides insurance protection against a risk if a policy is generally available from private companies.

[7 U.S.C. 1523(a)]

Policy Fees and Premiums

Catastrophic yield policies (CAT) are available for yield losses greater than 50%. Premium is fully subsidized, and producer pays an administrative fee of $300 per crop per county. [7 U.S.C.

1508(d)(2)]

Administrative fee on CAT policy is waived for limited resources farmers. [7 U.S.C.

1508(b)(5)(E)]

Premium subsidies for buy-up coverage (above

CAT) depend on level of coverage. [7 U.S.C.

1508(e)]

Senate-Passed 2013 Farm Bill (S. 954)

Beginning with the 2014 crop, the FCIC shall make available a revenue crop insurance program for peanuts based on a price equal to the Rotterdam price index for peanuts, as adjusted to reflect the farmer stock price of peanuts in the United States. [Sec. 11014]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

By crop year 2014, FCIC is required to make available a revenue policy for peanut producers [Sec. 11010 and

Sec. 11017] as in Senate bill and a margin coverage policy for rice producers. [Sec. 11010]

Extends 2008 farm bill provision to improve organic crop insurance. [Sec. 11021]

By 2015, requires FCIC to offer price elections for all organic crops that reflect prices of organic (not conventional) crops. FCIC must submit an annual report to Congress on crop insurance for organic crops. [Sec.

11027]

FCIC may conduct a pilot program to provide financial assistance for producers of underserved crops and livestock (including specialty crops) to purchase an indexbased weather insurance product from a qualified private insurance company. The subsidy shall not exceed 60% of the estimated premium amount. Unlike FCIC policies, the private insurance companies would maintain exclusive rights to rate and manage the policies. Provides mandatory funds of $10 million per year for FY2014 through FY2018. [Sec. 11030]

To reduce government costs, the CAT premium (fully paid by government) shall be reduced by the percentage equal to the difference between the average loss ratio

(premiums divided by indemnities times 100) for the crop and 100%, plus a reasonable reserve. [Sec. 11003]

Fee is also waived for beginning farmers or ranchers.

[Sec. 11032]

No comparable provision.

Identical to the Senate bill. [Sec. 11004]

Identical to the Senate bill. [Sec. 11015]

Beginning farmers or ranchers shall receive premium assistance that is 10 percentage points greater than provided to others. Other provisions are also designed to assist beginning farmers and ranchers. [Sec. 11032]

Identical to the Senate bill. [Sec. 11015]

CRS-149

Current Law/Policy—Crop Insurance Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision. Establishes an adjusted gross income (AGI) limit on crop insurance subsidies. Beginning with the 2014 reinsurance year (2014 crop year), crop insurance premium subsidies are reduced by 15 percentage points for producers with average AGI greater than $750,000. Reduction in effect only after USDA, in consultation with the Government

Accountability Office, determines that the change does not (1) significantly increase premiums for producers at lower income levels, (2) reduce crop insurance coverage availability, or (3) increase total cost of the crop insurance program. [Sec. 11033]

FCIC may provide a performance-based premium discount for a producer of an agricultural commodity who has good insurance or production experience relative to other producers in the same area. [7 U.S.C. 1508(d)]

Enterprise Units and Coverage

No change from current law.

The subsidy for enterprise and whole farm units is made permanent (previously a pilot basis). [Sec. 11004]

Crops are insured based on geographic units defined in the insurance policy. The basic unit covers land in one county with the same tenant/landlord. An optional unit is a basic unit divided into smaller units by township section. An enterprise unit covers all land of a single crop in a county for a producer, regardless of tenant/landlord structure. A whole farm unit covers more than one crop. For a policy with an enterprise or whole farm unit paragraph, on a pilot basis, the percentage of the premium paid by the government shall provide the same dollar amount of premium subsidy per acre as for other units, up to 80%. [7 U.S.C.

1508(e)(5)]

Beginning with the 2014 crop year, separate enterprise units will be available for irrigated and nonirrigated acreages of crops. [Sec. 11005]

Data Collection for Yield Guarantees; Yield Adjustments

FCIC bases policy guarantees on a producer’s actual production history (APH) for the crop, or on

Specifically directs FCIC to use county data collected by

USDA’s Risk Management Agency and/or National

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

Repeals provision. [Sec. 11005]

Identical to the Senate bill. [Sec. 11006]

Identical to the Senate bill. [Sec. 11007] Also, beginning with the 2015 crop year, a producer who grows a crop on both dry land and irrigated land may elect a different coverage level for each production practice. [Sec. 11014]

Identical to the Senate bill. [Sec. 11008]

CRS-150

Current Law/Policy—Crop Insurance

county yields for area-wide policies. The APH is based on producer yields for the prior 4 to 10 years. [7 U.S.C. 1508(g)(2)]

If, for one or more of the crop years used to establish the producer’s actual production history of an agricultural commodity, the producer's recorded or appraised yield of the commodity was less than 60% of the applicable transitional yield

(based on 10-year historical county average yield),

FCIC shall either exclude any of such recorded or appraised yield or replace each excluded yield with a yield equal to 60% of the applicable transitional yield. Concept is known as a “yield plug.” [7 U.S.C.

1508(g)(4)(B)]

Senate-Passed 2013 Farm Bill (S. 954)

Agricultural Statistics Service. If such data are not available, it may use other data considered appropriate by the Secretary of Agriculture. [Sec. 11006]

Beginning with the 2014 crop year, the yield plug is increased to 65% of the applicable transitional yield. [Sec.

11007]

Policy Research Development, Review, and Approval

Under sections 522 and 523 of the Federal Crop

Insurance Act, FCIC may enter into contracts to carry out research and development for new crop insurance policies (but may not conduct research itself). FCIC shall establish as one of the highest research priorities the development of a pasture, range, and forage program. It shall provide a payment to an applicant for research and development costs. FCIC may approve up to 50% of the projected total research and development costs to be paid in advance to an applicant. [7

U.S.C. 1522]

Allows FCIC to conduct research and development activities to maintain or improve existing policies or develop new policies. Highest research priorities become policies that increase participation by producers of underserved agricultural commodities, including sweet sorghum, sorghum for biomass, specialty crops, sugarcane, and dedicated energy crops. [Sec. 11028]

FCIC shall review any policy developed under section

522(c)or any pilot program developed under section 523 and submit the policy or program to the Board if it finds that the policy or program will likely result in a viable and marketable policy and would provide coverage in a significantly improved form. [Sec. 11008]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

For all crop years, the yield plug is increased to 70% of the applicable transitional yield. [Sec. 11009]

Same as Senate bill except crop list adds rice, peanuts, alfalfa, and pennycress, and excludes dedicated energy crops. [Sec. 11020] Authorizes FCIC to enter into partnerships with public and private entities for the purpose of increasing the availability of loss mitigation, financial, and other risk management tools or improving analysis tools and technology regarding compliance. [Sec.

11022]

Identical to the Senate bill. [Sec. 11010]

CRS-151

Current Law/Policy—Crop Insurance

FCIC shall include independent reviews as part of the consideration of any policy or plan or insurance

(or modification of such a policy). [7 U.S.C.

1505(e)]

Senate-Passed 2013 Farm Bill (S. 954)

For cost reimbursement, the 50% limitation may be waived and, upon request of the submitter, an additional

25% advance payment may be made. [Sec. 11018]

FCIC is required to contract for studies on the feasibility of insuring (1) specialty crop producers for food safety and contamination-related losses [Sec. 11020], (2) swine producers for a catastrophic disease event [Sec. 11021],

(3) producers of fresh-water catfish against reduction in the margin between the market value of catfish and selected production costs (the FCIC Board shall review this policy and approve it under certain conditions) [Sec.

11022], (4) commercial poultry production against business disruptions caused by integrator bankruptcy and poultry producers for a catastrophic event [Sec. 11023],

(5) seafood harvesters [Sec. 11023], and producers of biomass sorghum or sweet sorghum grown as feedstock for renewable energy [Sec. 11025], and (6) alfalfa producers. [11026]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Up to 75% of the projected cost may be paid in advance.

[Sec. 11010]

Similar to the Senate bill; excludes study on insurance for seafood harvesters. [Sec. 11021]

Any modification to be made in the terms or conditions of any policy or plan of insurance shall not take effect unless the Secretary publishes the modification in the

Federal Register and on the website of FCIC and provides for a subsequent period of public comment not later than

60 days before June 30 during the preceding crop year for fall-planted crops and not later than 60 days before

November 30 during the preceding crop year for springplanted crops. The Secretary may waive this requirement if an emergency situation is declared by the Secretary upon notice to Congress. [Sec. 11025]

Identical to the Senate bill, except maximum liability is

$1.25 million. [Sec. 11021]

Adjusted Gross Revenue (AGR) and AGR-Lite policies insure revenue of the entire farm rather than an individual crop. Both use a producer's fiveyear historical farm average revenue as reported on the Internal Revenue Service (IRS) tax return form

(Schedule F or equivalent forms). Coverage levels range from 65% to 80% of historical revenue. [7

FCIC is to conduct activities or enter into contracts to develop a whole farm risk management insurance plan

(with liability up to $1.5 million) that pays an indemnity if gross farm revenue is below 85% (compared with 80% currently). Coverage may include value of packing, packaging or other on-farm activities. FCIC may provide diversification-based discounts for producers with

CRS-152

Current Law/Policy—Crop Insurance

U.S.C. 1523]

Senate-Passed 2013 Farm Bill (S. 954)

diversified operations. FCIC is to submit a report to

Congress on the feasibility of additional coverage, including an analysis of potential market distortions. [Sec.

11019]

A private sector entity can propose an insurance plan to be added to the FCIC portfolio of products.

A process must be established to review and approve products. [7 U.S.C. 1508(h)]

FCIC may conduct a pilot program approved by the

Board to evaluate whether a proposal or new risk management tool is suitable for the marketplace and addresses the needs of producers. [7 U.S.C.

1523(a)]

For private sector submissions, directs FCIC to establish priorities for specific types of submissions. [Section

11009] As part of the submission process, the applicant must consult with producer groups potentially affected.

[Sec. 11010]

Eliminates the requirement that FCIC evaluate pilot programs and submit a report to Congress. [Sec. 11029]

Crop Production on Native Sod and Conservation Compliance

Subject to a geographic condition below, native sod planted to an insurable crop (over 5 acres) is ineligible for crop insurance and the noninsured crop disaster assistance program for the first 5 years of planting. May apply to virgin prairie converted to cropland only in the Prairie Pothole

National Priority Area, if elected by the state. [7

U.S.C. 1508(o)]

Nationwide, for native sod during the first four years of planting, crop insurance premium subsidies are 50 percentage points less than under current schedule and yield guarantees are affected. Also, no benefits are available under NAP or general commodity programs.

Requires annual report on the change in cropland areas and the number of acres of native sod converted to cropland in each county and state. [Sec. 11035]

See “itle II: Conservation” for a provision that establishes a prerequisite that a producer must be in compliance with conservation requirements and wetland requirements in order to receive crop insurance premium subsidies. [Sec.

2609]

Standard Reinsurance Agreement and Risk-Sharing

The Standard Reinsurance Agreement (SRA) between FCIC and private companies defines expense reimbursements and risk-sharing by the government, including the terms under which the government provides subsidies and reinsurance

Any savings generated from a renegotiated SRA must be used for programs administered by the Risk Management

Agency. [Sec. 11011]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

Identical to the Senate bill. [Sec. 11023]

Same as Senate bill, except provision only applies to the

Prairie Pothole National Priority Area. [Sec. 11013]

No comparable provision.

Same as Senate bill [Sec. 11012]. Also directs FCIC to make an additional annual expense reimbursement of $41 million (for reinsurance years 2011 through 2015) to insurance companies selling polices for crops not eligible for benefit under Title I (i.e., specialty crops). [Sec.

CRS-153

Current Law/Policy—Crop Insurance

(i.e., insurance for insurance companies) on eligible crop insurance contracts sold or reinsured by insurance companies. FCIC may renegotiate the

SRA once every 5 years. [7 U.S.C. 1508(k)]

Miscellaneous Crop Insurance Provisions

Under an insurance policy, if an agricultural commodity does not meet established quality standards, actual production (used for determining the indemnity) is reduced accordingly. [7 U.S.C.

1508(m)]

Inaccurate information on an insurance application can result in noncompliance, which voids the policy and may disqualify the producer for up to 5 years.

[7 U.S.C. 1515(c)]

USDA, an approved insurance provider and its employees and contractors, and any other person may not disclose to the public information furnished by a producer. [7 U.S.C. 1502(c)]

Senate-Passed 2013 Farm Bill (S. 954)

FCIC shall establish procedures to allow insured producers not more than 120 days to settle claims involving corn that is determined to have low test weight.

Authority for this provision terminates 5 years after implementation of the provision. [Sec. 11012]

FCIC shall establish procedures that allow an agent and approved insurance provider to correct information regarding producer name and eligibility information that is provided by a producer for the purpose of obtaining coverage. [Sec. 11015]

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

11011]

Similar provision as in the Senate bill. [Sec. 11018]

If authorized by a producer, USDA’s Farm Service Agency shall provide to an insurance agent or approved insurance provider any information or maps that may assist the agent or provider insuring the producer. USDA shall annually publish the names of Members of Congress and

Cabinet Secretaries (and immediate families) who purchase additional coverage (i.e., not a catastrophic policy), the associated subsidy amount, and the federal portion of indemnities paid in the event of a loss. Also, for each private insurance provider, USDA shall disclose the underwriting gains earned, and the amount paid for administrative and operating expenses and any Federal portion of indemnities and reinsurance. [Sec. 11001]

Adjustments to producer premiums are prohibited as an inducement to purchase crop insurance, with few exceptions. [7 U.S.C. 1508(a)(9)]

No comparable provision. To deter potential violators, FCIC is required to publish in detail (but without disclosing identities) any violations of this provision, including sanctions imposed. [Sec.

11002]

CRS-154

Current Law/Policy—Crop Insurance

All information provided to the public by the agency shall be in plain, understandable language. [5

U.S.C. 601 note relating to regulatory planning

and review]

USDA is to ensure that new hardware and software for administering the program are compatible with that already used by USDA agencies in order to maximize data sharing needed for proper program delivery. [7 U.S.C. 1515(j)]

Funding is provided from the insurance fund: $15 million for each of FY2008 through FY2010 and not more than $9 million in FY2011. [7 U.S.C. 1515(k]

FCIC may use up to $3.5 million of the insurance fund to pay for costs associated with implementing plans of insurance and for review of policies. [7

U.S.C. 1516(b)(2)]

The Secretary shall develop and implement a coordinated plan for the Farm Service Agency to assist FCIC in monitoring the crop insurance program. [7 U.S.C. 1515(d)]

The Agricultural Management Assistance Program provides financial assistance to producers in 16 specific states to mitigate risk through financial instruments, diversification, or resource conservation practices. Provides $15 million in annual mandatory funding in FY2008 through

FY2014, and $10 million each fiscal year thereafter.

Requires 50% for conservation, 40% for risk management, and 10% for organic certification. [7

U.S.C. 1524] Section 10606 of the 2002 farm bill established a National Organic Certification Cost-

Share Program to help producers and handlers of organic products obtain certification. Provided $22

Senate-Passed 2013 Farm Bill (S. 954)

Requires FCIC and RMA to use plain language when issuing regulations and guidance related to plans and polices of crop insurance, and to improve its website for producers seeking information on crop insurance.

Requires a report to Congress describing the

Department’s efforts. [Sec. 11037]

USDA shall develop and implement an acreage report streamlining initiative project to allow producers to report acreage and other information directly to USDA.

FCIC may use up to $25 million in fiscal 2014 and $10 to

$15 million per year for FY2015 through FY2018 from the insurance fund. USDA shall notify Congress on the status of the project no later than July 1, 2013. [Sec.

11016]

Adds authority to use up to $5 million of the insurance fund to pay for costs associated with maintaining program integrity and compliance activities. [Sec. 11017]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

Identical to the Senate bill, except notification date is July

1, 2015. [Sec. 11019]

No comparable provision.

Adds provision requiring the U.S. Government

Accountability Office to conduct a study regarding fraudulent claims filed, and benefits provided under the crop insurance program. [Sec. 11038]

Authorizes $23 million in mandatory CCC funding annually (FY2014-FY2018) and combines the two programs to include (1) organic certification cost share assistance (50% of funds); (2) activities to support risk management education and outreach under the Federal

Crop Insurance Act (26% of funds); and (3) agricultural management assistance grants to producers in states with low federal crop insurance participation, for various conservation purposes (24% of funds). Per-person payments are limited to $50,000 in any one year. [Sec.

11034]

No comparable provision.

Repeals the National Organic Certification Cost-Share program. [Sec. 10004] Removes tree plantings and soil erosion control from the list of approved practices.

Permanently authorizes $10 million in annual mandatory funding with 30% to NRCS (conservation), 10% to AMS

(organic certification), and 60% RMA (risk management).

[Sec. 2506 in Title II—Conservation]

CRS-155

Current Law/Policy—Crop Insurance

million in mandatory funding in FY2008 (available until expended). [7 U.S.C. 6523]

No comparable provision.

Noninsured Crop Assistance Program for crops not insurable. The Noninsured Crop

Assistance Program (NAP) has permanent authority under Section 196 of the Federal Agriculture

Improvement and Reform Act of 1996, and receives such sums as necessary in mandatory funding.

Growers of crops not insurable under the crop insurance program are eligible for NAP. [7 USC

7333]

Senate-Passed 2013 Farm Bill (S. 954)

Provides technical amendments. [Sec. 11036]

See itle for a provision that enhances NAP and provides payments for fruit crop losses in 2012. [Sec. 12204]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Provides technical amendments. [Sec. 11024]

See Title XII for a provision that enhances NAP [Sec.

12306]

CRS-156

Title XII. Miscellaneous

Current Law/Policy—Miscellaneous Senate-Passed 2013 Farm Bill (S. 954)

Socially Disadvantaged Producers and Limited-Resource Producers

Outreach and Assistance for Socially

Disadvantaged Farmers and Ranchers.

Outreach and Assistance for Socially Disadvantaged

Farmers and Ranchers was established by Sec. 2501 of the 1990 farm bill. The program provides education and outreach to minority and limitedresource farmers and ranchers. The 2008 farm bill created an Office of Small Farms and Beginning

Farmers and Ranchers to ensure access to all

USDA programs for small, beginning, and socially disadvantaged farmers and ranchers. Also requires

USDA to document the number, location, and economic contributions of socially disadvantaged and limited-resource farmers and ranchers.

Provides the program with $15 million in mandatory funding for FY2009 and $20 million annually for FY2010-FY2013. [7 U.S.C. 2279(a)]

No comparable provision.

Expands program authority to include farmers and ranchers who are veterans. Provides $10 million per year in mandatory funding for FY2014-FY2018, and authorizes

$20 million annually, subject to annual appropriations for

FY2014-FY2018. [Sec. 12001]

Office of Advocacy and Outreach. The Office of Advocacy and Outreach as authorized in the

2008 farm bill carries out the Outreach and

Assistance for Socially Disadvantaged Farmers and

Ranchers and Veteran Farmers and Ranchers, and also oversees the Minority Farmer Advisory

Socially Disadvantaged Farmers and Ranchers

Policy Research Center. Amends Sec. 2501 of the

1990 farm bill (see above) to establish the “Socially

Disadvantaged Farmers and Ranchers Policy Research

Center” to develop policy recommendations for socially and disadvantaged farmers and ranchers. The Secretary of

Agriculture shall establish the Center through a competitive grant to an eligible 1890 Institution (defined in 7 U.S.C. 7601). [Sec. 12002]

For the Office of Advocacy and Outreach, authorizes such sums as necessary for FY2009 through FY2013, and

$2 million annually for FY2014-FY2018, subject to annual appropriations. [Sec. 12003]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 12201]

Identical to the Senate bill. [Sec. 12203]

Identical to the Senate bill. [Sec. 12202]

CRS-157

Current Law/Policy—Miscellaneous

Committee and carries out the functions of the

Office of Outreach and Diversity previously handled by the Office of Assistant Secretary for

Civil Rights. Such sums as necessary are authorized to be appropriated for each year FY2009-FY2012.

[7 U.S.C. 6934(f)(3)]

Senate-Passed 2013 Farm Bill (S. 954)

Transparency and Accountability for Socially

Disadvantaged Farmers and Ranchers.

Ensures compilation and public disclosure of data to assess and hold USDA accountable for the nondiscriminatory participation of socially disadvantaged farmers and ranchers in programs of the Department. [7 U.S.C. 2279-1(e)]

No comparable provision.

Livestock

No comparable provision.

Trichinae Certification Program. Sec. 11010 of the 2008 farm bill established a voluntary trichinae certification program. [7 U.S.C. §8304 note] The

Wildlife Reservoir Zoonotic Disease Initiative.

Amends Title IV of the Agricultural Research, Extension, and Education Reform Act of 1998. [7 U.S.C. 7621 et

seq.] Establishes an initiative through competitive grants for research and development of surveillance methods, vaccinations, vaccination delivery systems, or diagnostic tests. The targeted diseases are brucellosis, bovine tuberculosis, and other high priority disease initiatives conducted under Sec. 1672 of the Food, Agriculture,

Conservation, and Trade Act of 1990 [7 U.S.C. 5925].

The research may be conducted by federal agencies, national laboratories, universities, research institutes, and state agricultural experiment stations. The grants are not to exceed 10 years and require matching funds of at least

25% of the federal contribution. $7 million per year is authorized to be appropriated FY2014-FY2018, and at least 30% of appropriated funds must be spent on bovine brucellosis and tuberculosis. [Sec. 12101]

Amends Sec. 11010 of the 2008 farm bill to establish an alternative trichinae certification process that is based on surveillance or other methods consistent with

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Receipt for Service or Denial of Service from

Certain Department of Agriculture Agencies.

Amends current law to require that USDA provide a receipt for service or denial of service without requiring a request for a receipt. [Sec. 12204]

No comparable provision.

Identical to the Senate bill. [Sec. 12103]

CRS-158

Current Law/Policy—Miscellaneous

program certifies compliance with best production practices and is designed to enhance swine and pork producers’ ability to export fresh pork and pork products. Authorizes appropriation of $1.5 million for Sec. 11010 and funds as necessary to carry out Sec. 10405 of the Animal Health

Protection Act (AHPA) for FY2008 through

FY2013. [7 U.S.C. 8304(d)(1)]

National Aquatic Animal Health Plan. Sec.

11013 of the 2008 farm bill authorized USDA, under Sec. 10411 of the AHPA, [7 U.S.C. 8310] to enter into cooperative agreements for the purpose of detecting, controlling, or eradicating diseases of aquaculture species and promoting species-specific best management practices on a cost-share basis.

Secretary may use authorities from AHPA [7

U.S.C. 8301 et seq.] to carry out the plan.

Authorizes such sums as necessary to be appropriated in each fiscal year, FY2008-FY2013. [7

U.S.C. 8322]

National Sheep Industry Improvement

Center (NSIIC). NSIIC promotes the strategic development of the U.S. sheep and goat industry. It provides financial assistance for the enhancement and marketing of sheep and goat products with an emphasis on infrastructure development. NSIIC is funded through appropriations, as well as receipts from products or services, fees and royalties from licensing, proceeds from sales of assets, loan or equity interest, and donations. [7 U.S.C. 2008(j)]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

international standards for categorizing compartments as having negligible risk for trichinae. Within one year of adopting an alternative certification process, the Secretary shall finalize the rule for the process. Reauthorizes current level of $1.5 million each year through FY2018, subject to annual appropriations. [Sec. 12102]

Extends funding authority for the plan through FY2018.

[Sec. 12103]

Sheep Production and Marketing Grant Program.

Establishes a competitive grant program through USDA’s

Agricultural Marketing Service to improve the sheep industry, including infrastructure, business, resource development, or innovative approaches for long-term needs. $1.5 million in CCC mandatory funds for FY2014 to be used and remain available until expended.

Amends the percentage of funds from 3% to 10% that may be used for administration of the NSIIC, and removes the authorization of appropriations. Redesignates the NSIIC from the Consolidated Farm and

Rural Development Act [7 U.S.C. 2008(j)] to the

Agricultural Marketing Act of 1946 [7 U.S.C. 1621 et seq.]. [Sec. 12104]

Feral Swine Eradication Pilot Program. Establishes a pilot program to study the (1) nature and extent of

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 12104]

Repeals section 375 of the Consolidated Farm and Rural

Development Act (7 U.S.C. 2008j) which established the

National Sheep Industry Improvement Center. [Sec.

12101]

No comparable provision.

CRS-159

Current Law/Policy—Miscellaneous

Animal Health Protection Act (AHPA). The

AHPA was authorized in the 2002 farm bill (P.L.

107-171). It contains provisions to prevent, detect, control, and eradicate diseases and pests to protect animal health. [7 U.S.C. 8301 et seq.]

National Poultry Improvement Plan (NPIP).

NPIP was established in the early 1930s to provide a cooperative industry, state, and federal program for developing new diagnostic technology to improve poultry and poultry products throughout the country. NPIP is managed through a memorandum of understanding between USDA’s

Animal and Plant Health Inspection Service (APHIS) and official state agencies. APHIS publishes NPIP regulations in 9 C.F.R. 145, 146, and 147.

Senate-Passed 2013 Farm Bill (S. 954)

damage caused by feral swine; (2) methods to eradicate or control feral swine; and (3) methods to restore damage caused by feral swine. USDA’s Natural Resources

Conservation Service and Animal and Plant Health

Inspection Service are to coordinate on the program. The program is to be administered on a cost-sharing basis with the federal share not to exceed 75%. The nonfederal share may be in-kind contribution. $2 million per year is authorized to be appropriated for FY2014-2018.

[Sec. 12105]

National Animal Health Laboratory Network.

Amends the AHPA to establish a national animal health laboratory network to enhance the ability to respond to bioterrorist threats, and to provide capability for standardized 1) test procedures, reference materials and equipment, 2) lab biosafety and biosecurity levels, 3) quality management requirements, 4) interconnected reporting and transmission, and 5) evaluation of emergency preparedness. The network is to develop and enhance national veterinary diagnostic capabilities, with emphasis on surveillance planning, vulnerability analysis and technology development and validation. When practicable, the Secretary shall give priority to facilities of federal, state, and institutions of higher learning.

Authorizes appropriations of $15 million per year for

FY2014-FY2018. [Sec. 12106]

Requires that USDA continue to administer the avian influenza (AI) surveillance of commercial poultry through the NPIP, and meet any relevant standards established by the World Organization for Animal Health (OIE). [Sec.

12107].

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Identical to the Senate bill. [Sec. 12106]

Requires that USDA continue to administer the diagnostic surveillance program for H5/H7 low pathogenic avian influenza [9 C.F.R. 146.14] without amending regulations on the governance of the General

Conference Committee [9 C.F.R. 147.43] as to physical location of the Committee and the organizational structure within USDA. The Secretary is to maintain funding for NPIP at the FY2013 level. [Sec. 12108]

CRS-160

Current Law/Policy—Miscellaneous

Country-of-Origin Labeling (COOL). The

2002 and 2008 farm bills established mandatory

COOL for fruits and vegetables, red meats, chicken, seafood, peanuts, pecans, macadamia nuts, and ginseng. In response to Canada’s and Mexico’s

World Trade Organization (WTO) challenge of

COOL, the WTO found that parts of COOL violate WTO rules. USDA finalized a rule [78

Federal Register 31367] on May 24, 2013 to address the WTO findings. [7 U.S.C. 1638 et seq.]

Sections 11005 and 11006 of the 2008 farm bill

(P.L. 110-246) addressed livestock and poultry marketing practices by amending the Packers and

Stockyards Act, and requiring USDA to issue regulations implementing the changes. The Grain

Inspection, Packers and Stockyards Administration

(GIPSA) issued a proposed rule, “Implementation of

Regulations Required Under Title XI of the Food,

Conservation and Energy Act of 2008; Conduct in

Violation of the Act” (75 Fed. Reg. 35338) in June

2010 and finalized parts of the rule (76 Fed. Reg.

76874) in December 2011. The final regulations address the applicability to live poultry, the suspension of the delivery of birds, additional capital investments, remedying a breach of contract, and arbitration. [7 U.S.C. 181 et seq.]

Section 11016 of the 2008 farm bill (P.L. 110-246] made catfish an amenable species under the Federal

Meat Inspection Act [21 U.S.C. 601 et seq.] and subject to inspection by USDA instead of FDA, and amended the Agricultural Marketing Act of 1946 [7

U.S.C. 1622 et seq.] to establish a voluntary fee based grading program for catfish.

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Requires that USDA conduct an economic analysis of

USDA’s March 12, 2013 proposed COOL rule [78 Federal

Register 15645] no later than 180 days after enactment of the farm bill. The analysis shall include, with respect to beef, pork, and chicken, the impact on consumers, producers, and packers of the COOL law and the above proposed rule. [Sec. 12105]

Repeal of Certain Regulations Under the Packers

and Stockyard Act, 1921. Repeals the definition of additional capital investment [9 C.F.R. 201.2(n)] that was implemented in February 2012, and halts USDA from finalizing or implementing other provisions from the

GIPSA rule, or from issuing or adopting similar rules.[Sec.

12102]

Repeal of Catfish Inspection and Grading Program

at USDA. Repeals the provisions of Section 11016 of the 2008 farm bill. [Sec. 12107]

CRS-161

Current Law/Policy—Miscellaneous

No comparable provision.

The Federal Food, Drug, and Cosmetic Act [21

U.S.C. 301 et seq.] gives FDA authority to regulate the safety and wholesomeness of food, including misbranding/mislabeling.

Other Miscellaneous Provisions

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision.

Military Veterans Agricultural Liaison. Amends

Subtitle A of the Department of Agriculture

Reorganization Act of 1994 [7 U.S.C. 6901 et seq.] by establishing in USDA a position of Military Veterans

Agricultural Liaison to provide information to returning veterans on beginning farmer training, agricultural vocational and rehabilitation programs. Liaison would provide information on availability and eligibility for participation, serve as a resource, and advocate on behalf of veterans within USDA. To carry out this provision, the liaison may enter into contracts or cooperative agreements with research centers of the Agricultural

Research Service, institutes of higher education, and nonprofit organizations to conduct research on small farms, develop educational materials, and conduct workshops, training, mentoring activities, and provide internships. [Sec. 12201]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Report on Bovine Tuberculosis in Texas. Requires

USDA to submit a report to the House and Senate

Agriculture Committees on the incidence of bovine tuberculosis in Texas from January 1, 1997 to December

31, 2013. The report is to be submitted no later than

December 31, 2014. [Sec. 12109]

Economic Fraud in Wild and Farm-Raised

Seafood. Requires USDA to report on the economic implications for consumers, fishermen, and aquaculturists of fraud and mislabeling of wild and farm-raised seafood no later than 180 days after enactment of the farm bill.

The report shall include analysis of imported seafood that is misrepresented as domestic product, country-of-origin labeling, seafood traceability, and inadequate use of technology to address seafood safety and fraud. [Sec.

12110]

Similar to Senate bill, except it does not include a section on contracts and cooperative agreements. [Sec. 12304]

CRS-162

Current Law/Policy—Miscellaneous

Information Gathering. USDA may not disclose information about an agricultural operation, farming or conservation practice, or land that was provided by the producer or landowner in order to qualify for a USDA program, or the geospatial information maintained by USDA about the agricultural land or operations mentioned above. Exceptions are provided for the limited release of data to federal, state, local or tribal agencies working in cooperation with USDA when providing technical or financial assistance for the above land or when responding to pest and disease threats. However,

USDA must determine that the data will not be subsequently disclosed. The prohibition on data disclosure does not affect the release of payment information that is otherwise authorized or data that are released in an aggregate, personally unidentifiable form. [7 U.S.C. 8791; also known as

Section 1619 of the 2008 farm bill]

Grants to Improve Supply, Stability, Safety,

and Training of Agricultural Labor Force.

Provides grants to train farm workers in new technologies and workers with specialized skills for higher value crops. Authorized funds to be appropriated as necessary for FY2008-FY2012. [7

U.S.C. 2008q-1(d)]

Noninsured Crop Assistance Program. The

Noninsured Crop Assistance Program (NAP) has permanent authority under Section 196 of the

Federal Agriculture Improvement and Reform Act of 1996, and receives such sums as necessary in mandatory funding. Growers of crops not insurable under the crop insurance program are eligible for

NAP. A payment is made to an eligible producer whose actual production is less than 50% of the established (historical) yield for the crop. The

Senate-Passed 2013 Farm Bill (S. 954)

Adds language to clarify and strengthen the conditions necessary to release data about farms to state and local government agencies. Such state and other government agencies would need to prove that the data are “required for implementing” the state program. Moreover, the data may only be used by the state agency, political subdivision, or local agency; and the data would be protected from subsequent disclosure by the state or agency. [Sec.

12202]

Extends the grant program with $10 million per year authorized to be appropriated for FY2014-FY2018. [Sec.

12203]

Reauthorizes through FY2018, and makes available additional coverage for NAP at 50% to 65% of established yield and 100% of average market price. Premium for additional coverage is 5.25% times the product of the selected coverage level and value of production (acreage times yield times average market price). The premium for additional coverage is reduced by 50% for limited resource, beginning, and socially disadvantaged farmers.

For producers with fruit crop losses in 2012, payments associated with additional coverage are made

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Adds a separate, new provision that prohibits data disclosure. Similar to the current law provision, but does not appear to allow data sharing with other agencies to provide technical assistance, for example. Disclosure is allowed if information is required to be publically available by Federal law, is disclosed to the Attorney General for compliance and law enforcement, or if the producer has lawfully disclosed or consents to the disclosure. Requires prompt notification of disclosure to the Agriculture committees. House provisions are in Title I. [Sec. 1613]

Identical to the Senate bill. [Sec. 12301]

Similar to the Senate bill except as indicated below. [Sec.

12306]

No comparable provision.

CRS-163

Current Law/Policy—Miscellaneous

payment rate is 55% of the average market price.

Producers pay a fee of $250 per crop per county, or $750 per producer per county, not to exceed

$1,875 per producer. [7 USC 7333]

Noninsured Crop Assistance Program. See description above.

Senate-Passed 2013 Farm Bill (S. 954)

retroactively (minus premium fees) in counties declared a disaster due to freeze or frost.

Eliminates NAP for crops/grasses used for grazing (to reduce overlap with livestock disaster programs in Title

I—Commodity Programs), ferns, and tropical fish.

Increases base NAP fee to $260 per crop per county, or

$780 per producer per county, not to exceed $1,950 per producer. [Sec. 12204]

Bioenergy Coverage in Noninsured Crop

Assistance Program. Amends the 1996 farm bill (7

U.S.C. 7333) to add crops grown for feedstock for renewable biofuel, renewable electricity, or biobased products. [Sec. 12205]

Extends the authorization of appropriations through

FY2018. Allows the cap on administrative expenses for any Commission to exceed 10% should the Commission receive an annual appropriation of less than $10 million.

[Sec. 12206]

Regional Economic and Infrastructure

Development. The 2008 farm bill (Section 14217) established three new regional development authorities: a Northern Border Regional

Commission, a Southeast Crescent Regional

Commission, and a Southwest Border Regional

Commission. These commissions develop a regional development plan and then make infrastructure loans and grants to eligible entities in their respective regions. [40 U.S.C. 15101 et seq.]

Authorizes annual appropriations of $30 million to each of the Commissions. Not more than 10% of appropriated funds to any Commission can be used for administrative expenses. [40 U.S.C. 15751(b)]

No comparable provision. Office of Tribal Relations. Amends Title III of the

Department of Agriculture Reorganization Act of 1994 (7

U.S.C. 3125a note) to establish an Office of Tribal

Relations within the Office of the Secretary of

Agriculture. The Office of Tribal Relations will coordinate the Department’s activities with Native American tribes.

[Sec. 12207]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

No comparable provision.

No comparable provision.

Identical to Senate bill. House provisions are in the Rural

Development title. [Sec. 6208].

Identical to the Senate bill. [Sec. 12303]

CRS-164

Current Law/Policy—Miscellaneous

No comparable provision.

Animal Fighting Venture Prohibition. The

Animal Welfare Act prohibits and provides penalties for sponsoring or exhibiting an animal in an animal fighting venture. [7 U.S.C 2156]

Penalties are prescribed and enforced by 18 U.S.C.

49.

Cotton Trust Fund. Section 407 of the Tax

Relief and Health Care Act of 2006 (P.L. 109-432;

120 Stat. 3060) established a Cotton Trust Fund to bolster the competitiveness of U.S.-based cotton shirt manufacturers. Tariff revenue from imports of certain products that entered under chapter 52

(Cotton) of the Harmonized Tariff Schedule funded this Trust Fund. Funding was used to provide duty refunds to domestic manufacturers that continue to make shirts in the United States, cotton growers, and yarn suppliers. This authority expired

September 30, 2008.

Senate-Passed 2013 Farm Bill (S. 954)

Acer Access and Development Program.

Authorizes grants to state and tribal governments to promote the domestic maple syrup industry. The grants are to promote research and education, resource sustainability, and marketing, and to encourage owners of private lands with species of trees in the genus Acer to initiate or expand maple sugaring activities. The provision defines maple sugaring as the collection of sap from any species of trees in the genus Acer for the purpose of boiling to produce food. USDA is to promulgate regulations to carry out the provision; $20 million per year is authorized to be appropriated for FY2014 and

FY2015. [Sec. 12208]

Amends the Animal Welfare Act to prohibit knowingly attending an animal fighting venture or causing a minor to attend such a venture. Confirms that penalties for violations are prescribed and enforced under 18 U.S.C.

49. Sets the penalty for each violation for attending an animal fighting venture at a fine and/or not more than one year in prison; penalty for causing a minor to attend set at a fine and/or not more than three years in prison. [Sec.

12209]

Pima Cotton Trust Fund. Establishes a trust fund in the Treasury of the United States that consists of amounts that are authorized to be appropriated as necessary to carry out the section. Authorization of appropriations is for each year FY2014-FY2019. The

Secretary may make payments to nationally recognized associations that promote pima cotton use, yarn spinners who produced ring spun cotton from January 1, 1998 to

December 21, 2003, and manufacturers who cut and sew cotton shirts and used imported cotton fabric from

January 1, 1998 through July 1, 2003. Payments to spinners and manufacturers are based on a production ratio and must be certified through affidavit. [Sec. 12210]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Nearly identical to the Senate bill, except that the House authorizes appropriations of $20 million each year for the program through FY2018. [Sec. 12309]

Similar to the Senate bill in that it prohibits knowingly attending or causing a minor to attend an animal fighting venture, but does not include penalty provisions. [Sec.

12311]

No comparable provision.

CRS-165

Current Law/Policy—Miscellaneous

Wool Apparel Manufacturers Trust Fund.

Section 4002(c) of the Miscellaneous Trade and

Technical Corrections Act of 2004 (P.L. 108-429;

118 Stat. 2602-2604) authorized the Wool Apparel

Manufacturers Trust Fund. This Trust Fund is funded by the U.S. Treasury from duties imposed on articles imported under chapter 51 (Wool) of the Harmonized Tariff Schedule (HTS). The Trust

Fund pays out limited refunds to importers of worsted wool fabrics, wool yarn, wool fiber and wool top. Refunds are based on a formula that calculates each company’s share of the relevant wool market in 1999, 2000, and 2001. The U.S.

Customs and Border Protection Agency is responsible for distributing the refunds to eligible wool manufacturers. Separately, this Trust Fund is used to provide grants, administered by the

International Trade Administration, to manufacturers of worsted wool fabrics (HTS

9902.51.11 and 9902.51.12). Section 325 of the

Emergency Economic Stabilization Act of 2008 (P.L.

110-343) extended this Trust Fund through April

15, 2015. [7 U.S.C. 7101 note]

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

Agriculture Wool Apparel Manufacturers Trust

Fund. Establishes a complementary trust fund in the

Treasury of the United States that consists of amounts that are authorized to be appropriated as necessary to carry out the section. Authorization of appropriations is for each year FY2014-FY2019. The Secretary may make payments to eligible manufacturers under paragraphs (3) and (6) of section 4002(c) of the Wool Suit and Textile

Trade Extension Act of 2004 (P.L. 108-429), as amended.

Payments are to be made to eligible manufacturers for

2010-2013 no later than 30 days after funds are transferred to the trust fund. For 2014-2019, payments are to be made no later than April 15 of the year of payment, [Sec. 12211]

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

No comparable provision.

Citrus Disease Research and Development Trust

Fund. Establishes a trust fund in the Treasury of the

United States that consists of amounts that are authorized to be appropriated as necessary to carry out the section. Authorization of appropriations is for each year FY2014-FY2019. The Secretary may make payments to entities engaged in 1) scientific research on diseases and pests, 2) the dissemination and commercialization of relevant information, techniques, or technology to solve citrus production disease or pest problems, and 3) the

Citrus Disease Research and Development Trust Fund

Advisory Board, if established. The Citrus Advisory Board would have five members from Florida, three from

Arizona or California, and one from Texas. The Secretary

No comparable provision.

CRS-166

Current Law/Policy—Miscellaneous Senate-Passed 2013 Farm Bill (S. 954)

may prescribe rules and regulations as necessary, and not more than 5% of the Citrus Trust Fund may be used for the operations of the advisory board. The Secretary shall give strong deference to funding research projects on the proximity of citrus producers and the effects of such diseases as huanglongbing (citrus greening). [Sec. 12212]

No comparable provision. High Plains Water Study. Section 2901 of the

2008 farm bill (P.L. 110-246) requires that agricultural producers who participate in a onetime study of the Ogallala aquifer recharge potential in the High Plains of Texas not be denied program benefits available under the 2008 farm bill. The studies inform state and local water conservation investments and policies to help manage the

Ogallala aquifer.

No comparable provision. No comparable provision.

No comparable provision.

Prohibition on closure or relocation of county offices for the Farm Service Agency.

Section 14212 of the 2008 farm bill sets limits and

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Extends provisions so that participants will not be denied program benefits under the 2013 farm bill. [Sec. 12302]

Prohibition on Keeping GSA Leased Cars

Overnight. Upon enactment, a federal employee of a state office of USDA’s Farm Service Agency (FSA) in the field and non-federal employees of FSA county and area committees are prohibited from keeping leased vehicles overnight unless the employee assigned the vehicle is on overnight, approved travel status with a per diem. [Sec.

12305]

Ensuring High Standards for Agency Use of

Scientific Information. By January 1, 2014 federal agencies are required to establish guidelines to ensure and maximize the quality, objectivity, utility, and integrity of scientific information used by the agencies. Policy decisions that are issued without guidelines after January

1, 2014 shall be deemed not in accordance with the law, with the exception of policy decisions necessary to protect imminent threat to health or safety. [Sec. 12307]

Prohibits USDA from closing or relocating a county or field office of the FSA if the office has a high workload compared with other offices in the state. Requires USDA

CRS-167

Current Law/Policy—Miscellaneous

requires notifications for closing or relocating Farm

Service Agency (FSA) offices. [7 U.S.C. 6932a]

Senate-Passed 2013 Farm Bill (S. 954)

The Small Business Regulatory Enforcement

Fairness Act of 1996 [5 U.S.C. 801 et seq.] requires the Environmental Protection Agency

(EPA) and the Occupational Safety and Health

Administration (OSHA) to convene small business advocacy review panels when the agencies are developing proposed rules.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

to conduct an evaluation of the workload of all FSA offices open on January 1, 2012. The evaluations are to be completed 18 months after enactment. [Sec. 12308]

Regulatory Review by the Secretary of

Agriculture. Directs the Secretary of Agriculture to convene a review panel to analyze guidance, policy, memorandum, regulation, or statement of general applicability and future effect that is planned or proposed by EPA, which may have a significant impact on a substantial number of agricultural entities. USDA must solicit information from the EPA administrator, use the

Office of Chief Economist to produce an economic impact statement, and identify individuals who are representative of those who might be impacted. Within

60 days of convening a review panel, the Secretary must provide EPA comments, and publish comments in the

Federal Register for public comment. [Sec. 12310]

Prohibition Against Interference by State and

Local Governments with Production or

Manufacture of Items in Other States. Prohibits any state or local government from setting standards or conditions on the production or manufacture of agricultural products, and then using such standards to prevent interstate sales of the agricultural products.

Agriculture products are defined in the Agricultural

Marketing Act of 1946 (7 U.S.C. 1626) [Sec. 12312]

Increased Protection for Agricultural Interests in

the Missouri River Basin. In response to 2011 floods, this provision directs USDA to take steps to increase flood protection for agricultural producers in the

Missouri River basin, specifically to recalculate the space within the Missouri River Mainstem Reservoir System allocated to flood control storage, and to increase the channel capacity between the reservoirs and below

Gavins Point. [Sec. 12313]

CRS-168

Current Law/Policy—Miscellaneous

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

No comparable provision. No comparable provision.

No comparable provision.

No comparable provision.

No comparable provision.

CRS-169

No comparable provision.

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Increased Protection for Agricultural Interests in

the Black Dirt Region. Directs the Secretary of

Agriculture to take action to promote immediate increased flood protection for farmers, producers, and other agricultural interests around the Wallkill River and the Black Dirt region. [Sec. 12314]

Protection of Honey Bees and Other Pollinators.

USDA, in consultations with the Department of Interior and EPA, will take measures to improve federal coordination in addressing the documented decline of managed and native pollinators and promote the longterm viability of honey bee, wild bees and other beneficial insects in agriculture. Requires USDA to establish a federal task force on bee health and commercial beekeeping to coordinate and assess efforts to mitigate pollinator losses, and the task force is to submit a report to Congress within 180 days of enactment of the farm bill. Also, USDA may conduct a study to consider relocating and modernizing pollinator research labs. [Sec.

12315]

Produce Represented as Grown in the United

States When It Is Not In Fact Grown in the

United States. Requires the USDA to provide technical assistance to the U.S. Customs and Border Protection for identifying produce claimed to be grown in the United

States, but not. Requires USDA to submit to the House and Senate Agriculture Committees a report on produce represented as grown in the United States. [Sec. 12316]

Urban Agriculture Coordination. USDA is required to compile a list of programs for which urban farmers can apply for assistance or participation, adjust programs to enable urban farmers to increase participation, and streamline the process for urban farmer participation.

[Sec. 12317]

Sense of Congress on Increased Business

Current Law/Policy—Miscellaneous Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Utilization of Waters of the Colorado and

Tijuana Rivers and of the Rio Grande. This treaty between the United States and Mexico was signed in February 1944 and regulates the use of water on the border.

FDA Food Safety Modernization Act

(FSMA). FSMA expanded or modified FDA authorities for food safety, especially under the

Federal Food, Drug, and Cosmetic Act (21 U.S.C.

301 et seq.) FSMA expanded FDA's authority to conduct a mandatory recall of contaminated food products; enhanced surveillance systems to investigate foodborne illness outbreaks; established new preventive controls and food safety plans at some food processing facilities and farms; enhanced

FDA's traceability capacity within the nation's food distribution channels; increased inspection frequencies of high-risk food facilities (both domestic and foreign facilities); and expanded

FDA's authority and oversight capabilities of foreign

CRS-170

No comparable provision.

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Opportunities for Black Farmers, Women,

Minorities, and Small Business. Expresses the sense of Congress that the federal government should increase the number of federal contracts awarded to businesses owned by minorities, black farmers, women, and small businesses. [Sec. 12318]

Sense of Congress Regarding Agriculture Security

Programs. Expresses the sense of Congress that nutrients and chemicals play an important role in agricultural production. USDA should coordinate with the

Department of Homeland Security to develop regulations and procedures to handle these agricultural chemicals.

[Sec. 12319]

Report on Water Sharing. The Secretary of State is required to submit to Congress a report on Mexico’s Rio

Grande water deliveries to the United States, and the benefits to the United States of cooperation with Mexico on reservoir conservation in Colorado River Basin. The report is to be submitted within 120 days of the enactment of the farm bill, and then annually. [Sec.

12320]

Scientific and Economic Analysis of the FDA Food

Safety Modernization Act. Requires the Secretary of

Health and Human Services to provide a scientific and economic analysis of FSMA prior to final regulations being enforced with the focus of the analysis being on the impact of the bill on agricultural businesses of all sizes.

The Secretary is to submit to the House and Senate

Agriculture Committees a report on the impact of implementation of FSMA not later than one year after the farm bill is enacted. [Sec. 12321]

Current Law/Policy—Miscellaneous

companies that supply food imports to the United

States. [21 U.S.C. 2201 et seq.]

Procedures for Gathering Comments.

Governs the procedures that an agency must follow in the initial regulatory flexibility analysis of the rulemaking process. [5 U.S.C. 609(b)]

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

Water Pollution Prevention and Control

Act. The Clean Water Act governs the restoration and maintenance of the chemical, physical, and biological integrity of the nation’s waterways. [33

U.S.C. 1251 et. seq.] Section 1342, the National

Pollutant Discharge Elimination System (NPDES) governs discharge permits.

No comparable provision.

Pursuant to the Clean Water Act of 1972 [33

U.S.C. 1321(j)(1)], EPA promulgated Spill

Prevention, Control, and Countermeasure (SPCC) regulations for non-transportation-related facilities in 1973. Affected facilities must prepare and implement, but not submit, SPCC plans. The requirements apply to non- transportation-related facilities that drill, produce, store, process, refine, transfer, distribute, use, or consume oil or oil products; and that could reasonably be expected to discharge oil to U.S. navigable waters or adjoining shorelines. Facilities, including farms, are subject to the rule if they meet at least one of the following thresholds: an aboveground aggregate oil storage capacity greater than 1,320 gallons, or completely buried oil storage capacity greater than 42,000 gallons. Facilities must count all containers greater than 55 gallons. A Professional Engineer (PE) must certify a facility’s plan. As of 2008 EPA rulemaking,

No comparable provision.

CRS-171

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Improved Department of Agriculture

Consideration of Economic Impact of Regulations

on Small Business. Requires that USDA complete the procedures consistent with 5 U.S.C. 609(b) when it promulgates any rule that will have a significant economic impact on small entities. [Sec. 12322]

Silvicultural Activities. Amends Section 1342(l) to add an exemption for silviculture activities (nursery operation, site preparation, reforestation and subsequent cultural treatment, thinning, prescribed burning, pest and fire control, harvesting operations, surface drainage, and road use, construction, and maintenance) from NPDES permit requirements. Does not exempt silvicultural activity resulting in discharge of dredged or filled material that is regulated under the Clean Water Act. [Sec. 12323]

Applicability of Spill Prevention, Control, and

Countermeasure Rule. Amends the volume threshold that would require a Professional Engineer to certify a

SPCC plan to farms with individual aboveground storage tanks larger than 10,000 gallons, aggregate aboveground storage of greater than 42,000 gallons, or a history of spills. Farms with aggregate aboveground storage of more than 10,000 gallons, but less than 42,000 gallons, and no spill history may self-certify. Farms with less than 10,000 gallons and no spill history are exempt from all SPCC requirements. For calculating aboveground storage capacity, containers on separate parcels of less than 1,320 gallons and containers approved by FDA for livestock feed are exempt. [Sec. 12324]

Current Law/Policy—Miscellaneous

facilities with aggregate storage of 10,000 gallons or less aggregate can self-certify their plans.

No comparable provision.

Senate-Passed 2013 Farm Bill (S. 954)

No comparable provision.

On July 19, 2010, the President issued Executive

Order (EO) 13547, Stewardship of the Ocean, Our

Coasts, and the Great Lakes. The EO 13547 adopted the recommendations of the Interagency

Ocean Policy Task Force to enhance national stewardship of oceans, coasts, and the Great Lakes.

The order created a 27-member National Ocean

Council, including a representative from USDA.

No comparable provision.

Chesapeake Bay Accountability and Recovery

Federal, state and local governments, nongovernmental organizations, and the general public are engaged in efforts to restore the natural resources and water quality of the Chesapeake Bay.

No comparable provision.

No comparable provision.

No comparable provision.

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

Agricultural Producer Information Disclosure.

Prohibits EPA from publicly disclosing names, telephone numbers, email addresses, physical addresses, GPS coordinates, or other identifying information of any owner, operator, or employee of an agricultural or livestock operation. The prohibition does not apply when:

1) information is in a statistical or aggregated form at the county or higher level; 2) the producer consents; or 3) a state agency has the authority to collect data. EPA is prohibited from requiring information disclosure for the purposes of the approval of a permit, practice, or program administered by the agency. [Sec. 12325]

Report on Ocean Policy. Requires that the Inspector

General of USDA submit to the House and Senate

Agriculture Committees within 90 days after enactment of the farm bill a report on the activities and resources expended on Executive Order 13547 since July 19, 2010.

The report is to include any budget requests for FY2014 for the implementation of the executive order. [Sec.

12326]

Sunsetting of Programs. Sunsets all discretionary programs in the farm bill upon the expiration of the 5year authorization period. [Sec. 12327]

Requires the Office of Management and Budget to prepare an interagency cross-cut budget on federal activities and state activities, to the extent possible, for restoration of the Chesapeake Bay and report to

Congress. Directs EPA to develop a plan to provide technical and financial assistance to Chesapeake Bay states to employ adaptive management in carrying restoration activities in the Chesapeake Bay watershed. Requires appointment of an independent evaluator to review

CRS-172

Current Law/Policy—Miscellaneous Senate-Passed 2013 Farm Bill (S. 954)

House-Passed 2013 Farm Bill (H.R. 2642, including text of H.R. 3102)

restoration activities and report to Congress. [Secs.

12401-12405]

CRS-173

The 2013 Farm Bill: Comparison of S. 954, H.R. 2642, and H.R. 3102 with Current Law

Author Contact Information

Ralph M. Chite, Coordinator

Section Research Manager [email protected], 7-7296

Randy Schnepf

Specialist in Agricultural Policy [email protected], 7-4277

Remy Jurenas

Specialist in Agricultural Policy [email protected], 7-7281

Randy Alison Aussenberg

Analyst in Nutrition Assistance Policy [email protected], 7-8641

Dennis A. Shields

Specialist in Agricultural Policy [email protected], 7-9051

Renée Johnson

Specialist in Agricultural Policy [email protected], 7-9588

Katie Hoover

Analyst in Natural Resources Policy [email protected], 7-9008

Jim Monke

Specialist in Agricultural Policy [email protected], 7-9664

Megan Stubbs

Specialist in Agricultural Conservation and Natural

Resources Policy [email protected], 7-8707

Claudia Copeland

Specialist in Resources and Environmental Policy [email protected], 7-7227

Joel L. Greene

Analyst in Agricultural Policy [email protected], 7-9877

Tadlock Cowan

Analyst in Natural Resources and Rural

Development [email protected], 7-7600

Charles E. Hanrahan

Senior Specialist in Agricultural Policy [email protected], 7-7235

Acknowledgments

Special thanks to CRS editor Laura Comay for her technical assistance in publishing this report.

Congressional Research Service 174

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