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 Today Congressman Kevin Cramer announced the U.S. House of Representatives passed a five-year farm bill agreed to by the House-Senate conference committee. The Federal Agriculture Reform and Risk Management (FARRM) Act of 2013 provides a robust crop insurance program with expanded coverage choices for farmers, saves taxpayers over $23 billion in mandatory federal spending, consolidates programs, and reforms the food stamp program for the first time since 1996.

Cramer said the bill is a reflection of a divided Congress and contains both good results and areas of concern for North Dakota agriculture producers.

“The good news is it provides the certainty farmers and lenders need going into the planting season, saves taxpayers nearly 24 billion dollars, eliminates the outdated direct payment system, and gives farmers expanded crop insurance choices. Like any compromise bill, it’s not all good news, and I do have some concerns about making conservation compliance a condition of participation in the crop insurance program. I worry it will add burdensome regulations for farmers and put them at the whim of the unreasonable bureaucracy enforcing them,” Cramer stated. “I expect the Senate will join the House in passing the farm bill, and we will have a product that provides certainty to farmers, reduces spending, and bolsters the crop insurance program, which is the hallmark of this very important safety net going forward.”

Crop insurance strengthened

The bill strengthens the crop insurance program by expanding the range of options available to agriculture producers, with an understanding of the diverse challenges they face. It adds a new Supplemental Coverage Option (SCO) which allows for the purchase of a wider, supplemental crop insurance policy for a portion of losses not addressed by an individual farm-based policy.

Commodity programs

Producers can choose between a new revenue loss protection program, Agriculture Risk Coverage (ARC), which addresses deep, multi-year price losses, and Price Loss Coverage (PLC), which offers coverage based on target commodity prices. The direct payment system is eliminated.

Conservation compliance and crop insurance

While the House farm bill did not tie crop insurance to compliance with conservation programs, the two are linked for the first time since 1996 in the compromise bill. The conference report does include language to prohibit the linkage from being retroactive. Cramer said producers have expressed serious concerns to him about the negative consequences of this new layer of red tape, and added he will work to mitigate any unreasonable enforcement action by the Obama Administration.

Wetland mitigation amendment

Congressman Cramer’s wetland mitigation amendment language was adopted in the conference report, encouraging the Secretary of Agriculture to subject a producer to no higher than a 1-for-1 acreage basis when enhancing, restoring or creating wetlands as part of the current USDA no net loss wetlands policy.

Flood prevention

The farm bill includes funding for flood prevention efforts. More than $50 million in competitive assistance will be available each year to areas including the Red River Valley through the new Regional Conservation Partnership Program, which consolidates four previously existing programs including the Agriculture Water Enhancement Program (AWEP).

Sugar program maintained

The sugar program is maintained in the farm bill and will continue to allow United States sugar producers to compete effectively in a heavily manipulated global marketplace. Brazil subsidizes its sugar production by approximately $2 to $3 billion per year, and the government of Mexico owns 1/5th of its sugar industry while subsidizing the rest. Cramer defended the sugar industry on the House floor during the first passage of the farm bill in July.

Livestock programs renewed

The bill returns programs important to North Dakota ranchers and honey producers. The Livestock Indemnity Program (LIP), the Livestock Forage Program (LFP), the Emergency Livestock Extension Program (ELAP), and Honey Bees and Farm-Raised Fish Program were authorized in the 2008 farm bill but expired in October 2011.

Integrity of nutrition assistance strengthened

The bill reduces food stamp expenditures by over $8 billion, bringing the total savings in food stamps to nearly $20 billion when combined with the November 1, 2013 expiration of expanded benefits in the 2009 American Recovery and Reinvestment Act. Savings are achieved by enforcing eligibility requirements and eliminating waste, fraud, and abuse. A pilot program is established to empower states to add employment, job search, or volunteer requirements in order for able-bodied adults to receive food stamps. Waste is reduced by prohibiting the USDA from continuing its food stamp recruitment activities which have included TV and radio ads, billboards, and foreign government outreach. The bill also increases assistance for food banks and ensures illegal immigrants, lottery winners, and the deceased do not receive food stamps.