Farm Commodity Programs and the 2007 Farm Bill (CRS Report for Congress)
| Release Date |
Revised Jan. 25, 2008 |
| Report Number |
RS21999 |
| Report Type |
Report |
| Authors |
James Monke, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
The farm commodity programs are the most visible part of the farm bill. Five crops(corn, wheat, cotton, rice, and soybeans) account for over 90% of governmentcommodity payments to farmers. A new farm bill is necessary because the 2002 farmbill expires with the 2007 crop year and, without an update, an undesirable reversion topermanent laws would occur. The debate is whether to continue with the current system,or reduce subsidies in response to federal spending constraints, economic conditions,legal challenges from international trade agreements, and equity considerations.The Senate Agriculture Committee reported its version of the farm bill on October25, 2007; the House passed its version, H.R. 2419, on July 27, 2007. Both bills continuethe current commodity support framework, but make some notable changes. Both billsadd an optional revenue counter-cyclical payment (the Senate revenue option goes a stepfurther to supplant direct payments and marketing loans under that option), tighten theAGI limit, eliminate the limit on marketing loans, and modify some target prices andloan rates. Senate floor action is expected the week of November 5.The key issues remaining in the debate include details on how much to tightenpayment limits, whether to trigger revenue counter-cyclical payments at the national orstate level and how to tie them to crop insurance, whether to reduce direct payments,whether to eliminate planting restrictions on fruits and vegetables, and whether toeliminate payments to certain non-farm recipients.
