The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

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The 2014 Farm Bill (P.L. 113-79): Summary and

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R43076

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Summary

Congress periodically establishes agricultural and food policy in a multi-year, omnibus farm bill.

The 2008 farm bill governed policy for farm commodity support, horticulture, livestock,

conservation, nutrition assistance, trade and international food aid, agricultural research, farm

credit, rural development, bioenergy, and forestry. It originally expired in 2012, but the 112th

Congress did not complete action and instead extended the law for one year (P.L. 112-240),

leaving consideration of a new farm bill to the 113th Congress.

After nearly three years of deliberations, Congress completed action on a new omnibus farm bill

when conferees reported a conference agreement on January 27, 2014 (the Agricultural Act of

2014, H.R. 2642/H.Rept. 113-333); the full House and Senate approved the conference agreement

on January 29 and February 4, respectively. The President signed the measure into law (P.L. 11379) on February 7, 2014.

Within P.L. 113-79 are provisions that 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, among many other provisions.

The new 2014 farm bill restructures farm support for traditional program crops by eliminating

direct payments, the counter-cyclical price (CCP) program, and the Average Crop Revenue

Election (ACRE) program. Much of the savings associated with the elimination of these farm

programs was used to offset the costs of revising the remaining programs, adding permanent

disaster assistance, and enhancing crop insurance.

P.L. 113-79 also reauthorizes the Supplemental Nutrition Assistance Program (SNAP, formerly

food stamps) through FY2018. The new measure restricts how a household’s receipt of LowIncome Home Energy Assistance Program (LIHEAP) benefits can affect SNAP benefits,

accounting for most of the nutrition budget savings. Not adopted were House provisions to

restrict categorical eligibility and change several time limit and work requirements.

The Congressional Budget Office (CBO) projected that if the mandatory programs of the 2008

farm bill were to continue, they would cost $973 billion over the next 10 years (FY2014FY2023), which served as a baseline budget for deliberations on the 2014 farm bill. The enacted

2014 farm bill is projected to spend $956 billion over the next 10 years, of which $756 billion is

for nutrition assistance and $200 billion is for the agriculture portion. Compared to the baseline,

the 2014 farm bill reduces projected spending and the deficit by $16.6 billion (-1.7%) over 10

years. This projected 10-year savings is closer to the Senate-passed bill level of $17.8 billion

than the projected House-passed savings of $51.8 billion.

Not included in the final conference agreement were a number of controversial miscellaneous

provisions such as a House provision that would have prohibited states from imposing production

or manufacturing standards on agricultural products from other states, and a House provision that

would have repealed livestock and poultry marketing and competition rules proposed by USDA.

Congressional Research Service

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Contents

Introduction and Chronology ........................................................................................................... 1

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

Title-by-Title Summaries of the Enacted 2014 Farm Bill (P.L. 113-79).......................................... 6

Farm Bill Title I, Commodities.................................................................................................. 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

A Side-by Side Comparison of the Enacted 2014 Farm Bill (P.L. 113-79) with the SenatePassed (S. 954) and House-Passed (H.R. 2642) Bills and Prior Law ......................................... 21

Figures

Figure 1. Budget Scores of the 2014 Farm Bill ............................................................................... 5

Tables

Title I. Commodities ..................................................................................................................... 21

Title II. Conservation ..................................................................................................................... 63

Title III. Trade ................................................................................................................................ 90

Title IV. Nutrition......................................................................................................................... 103

Title V. Credit............................................................................................................................... 124

Title VI. Rural Development ....................................................................................................... 131

Title VII. Research, Extension, and Related Matters ................................................................... 150

Title VIII. Forestry ....................................................................................................................... 170

Title IX. Energy ........................................................................................................................... 179

Title X. Horticulture..................................................................................................................... 190

Title XI. Crop Insurance .............................................................................................................. 199

Title XII. Miscellaneous .............................................................................................................. 211

Congressional Research Service

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Contacts

Author Contact Information......................................................................................................... 234

Acknowledgments ....................................................................................................................... 234

Congressional Research Service

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Introduction and Chronology

Congress periodically establishes agricultural and food policy in an omnibus farm bill. Following

nearly three years of debate, Congress completed action in February 2014 on the most recent farm

bill (The Agricultural Act of 2014 (P.L. 113-78), which succeeded the expired Food,

Conservation, and Energy Act of 2008 (2008 farm bill, P.L. 110-246). The 2014 farm bill

establishes policy for the next five years in its 12 titles, covering farm commodity price and

income support, crop insurance, conservation, domestic food assistance, agricultural trade and

international food aid, credit, rural development, research, horticulture, forestry, and bioenergy,

among others. Periodic farm bills provide Congress, the Administration, and interest groups with

an opportunity to reexamine agriculture and food issues more carefully, and address them more

comprehensively.

Within the various titles of the enacted 2014 farm bill are provisions that 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.

Many provisions of the previous farm bill (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 112th 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 113th Congress. The

House and Senate Agriculture Committees marked up their respective bills in May 2013 and floor

action was completed in the summer months. A conference agreement was reached in late

January 2014; it was approved by both chambers within eight days and was signed into law as the

Agricultural Act of 2014 (P.L. 113-79) on February 7, 2014.

Action on a 2013/2014 Farm Bill

Committee

Initial Floor Action

Conference Agreement

House

Senate

House

Senate

Report

House

Senate

5/15/2013

H.R. 1947

Vote of

36-10

H.Rept.

113-92a

5/14/2013

S. 954

Vote of

15-5

S.Rept.

113-88

6/20/2013

H.R. 1947 Failed:

Vote of 195-234

6/10/2013

S. 954

Vote of

66-27

1/27/14

H.Rept.113-333

1/29/14

Vote of

251-166

2/4/14

Vote of

68-32

7/11/2013

H.R. 2642

Vote of 216-208

Public

Law

2/7/14

P.L. 113-79

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.

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

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. 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.

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,

2013, 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.

A conference agreement reconciling the differences between the two measures was reported as

the Agricultural Act of 2014 (H.Rept. 113-333) on January 27, 2014. Within eight days, both

chambers approved the conference agreement, the House on January 29 by a vote of 251-166 and

the Senate on February 4 by a vote of 68-32. The President signed it into law (P.L. 113-79) on

February 7, 2014.

This report begins with a brief overview of the estimated budgetary impact of the 2014 farm bill,

followed by a summary comparison of the major provisions of each title. A side-by-side section

comprehensively compares all of the provisions in P.L. 113-79 to Senate and House versions of

the farm bill—including S. 954 as passed by the Senate (also referred to as the Senate amendment

to H.R. 2642) and the House-passed version of H.R. 2642 (which includes the provisions of H.R.

3102 as a new Title IV to H.R. 2642)—as well as to relevant provisions in then-current law.

The “Prior Law/Policy” 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, as well as other

relevant statutes that are revised by the 2014 farm bill.

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.

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

2013 Farm Bill: Key CRS Policy Staff

Legislative Issues

Name/Title

Phone

Farm Bill Budget

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Farm Safety Net (Commodity

Support, Crop Insurance, and

Disaster Assistance)

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Dairy Policy

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Sugar Policy

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Conservation and Environment

(name redacted)

Specialist in Agricultural Conservation

and Natural Resources Policy

7-....

[redacted]@crs.loc.gov

Agricultural Trade Programs

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

International Food Aid

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Domestic Food and

Nutrition Assistance

(name redacted)

Analyst in Nutrition Assistance Policy

7-....

[redacted]@crs.loc.gov

Agricultural Credit

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Rural Development

(name redacted)

Analyst in Natural Resources and Rural

Development

7-....

[redacted]@crs.loc.gov

Agricultural Research

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Forestry

(name redacted)

Analyst in Natural Resources Policy

7-....

[redacted]@crs.loc.gov

Agriculture-Based

Biofuels/Bioenergy

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Horticulture and Organic

Agriculture

(name redacted)

Specialist in Agricultural Policy

7-....

[redacted]@crs.loc.gov

Livestock/Animal Agriculture

(name redacted)

Analyst in Agricultural Policy

7-....

[redacted]@crs.loc.gov

EPA-Related Issues

(name redacted)

Specialist in Resources and Environmental

Policy

7-....

[redacted]@crs.loc.gov

Rulemaking Process

(name redacted)

Analyst in Government Organization and

Management

7-....

[redacted]@crs.loc.gov

Farm Labor

(name redacted)

Analyst in Labor Policy

7-....

[redacted]@crs.loc.gov

Congressional Research Service

E-mail

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Budgetary Impact2

The budgetary impact of the 2014 farm bill is measured relative to what the prior farm bill would

have spent had it been continued. The Congressional Budget Office (CBO) projected that the

mandatory programs of the 2008 farm bill would have cost $973 billion if continued for the next

10 years (FY2014-FY2023).3 This “baseline” already had been reduced by $6.4 billion to reflect

the effects of sequestration over the 10-year baseline.4

Compared to this post-sequestration baseline, the 2014 farm bill (P.L. 113-79) reduces projected

spending and the deficit by $16.6 billion (-1.7%) over 10 years.5 (The five-year reduction through

FY2018 is $5.4 billion from a five-year baseline of $494 billion.)

P.L. 113-79 saves less than either the House-passed or Senate-passed proposals. The Housepassed combination of H.R. 2642 and H.R. 3102 together would have reduced spending by $51.9

billion (-5.3%) over 10 years.6 The Senate-passed farm bill proposal (S. 954) would have reduced

spending by $17.9 billion (-1.8%) over 10 years.7

If the baseline had not already been reduced by sequestration, the enacted 2014 farm bill could

have been credited for reducing spending by $23 billion over 10 years. Similarly, the savings

from each of the House and Senate proposals could have been $6.4 billion greater. But

sequestration had already been factored into the baseline, so the official score of P.L. 113-79

remains as savings of $16.6 billion over 10 years.

The net reduction is composed of some titles receiving more funding than in the past, while other

titles provide offsets, some of which contributes to deficit reduction. The titles for farm

commodity subsidies, nutrition, and conservation provide budgetary savings. The titles for crop

insurance, research, bioenergy, horticulture, rural development, trade, forestry, and miscellaneous

items receive additional funding.

The final 2014 farm bill is projected to spend $956 billion over the next 10 years, of which $756

billion is for nutrition assistance and $200 billion is for the agriculture portion. (The five-year

total is $489 billion, with $391 billion for nutrition and $98 billion for the agriculture portion).

Within the agriculture portion, crop insurance outlays are projected to be $90 billion over the next

10 years, $58 billion for conservation, and $44 billion for farm commodity programs (Title I).

The trade title is projected to spend $3.6 billion over the next 10 years, horticulture $1.7 billion,

research $1.3 billion, and bioenergy $1.1 billion. 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 projected outlays. More details on the farm bill budget are available in CRS

Report R42484, Budget Issues That Shaped the 2014 Farm Bill.

2

This section was written by (name redacted), Specialist in Agricultural Policy.

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;

see p. 2 and Table 4 of the CBO score of the Senate bill at http://cbo.gov/publication/44175, May 13, 2013.

5

CBO cost estimate of the conference agreement on H.R. 2642 (http://www.cbo.gov/publication/45049, Jan. 28, 2014).

6

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, Sept. 16, 2013).

7

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

3

Congressional Research Service

4

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Figure 1. Budget Scores of the 2014 Farm Bill

(change in outlays relative to 10-year baseline FY2014-FY2023, by farm bill title)

Source: CRS, using CBO cost estimates available at http://www.cbo.gov/publication/45049.

Budget for the 2014 Farm Bill: Baseline, Scores, and Projected Outlays, by Title

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

CBO Score (change to baseline)

Projected Outlays (Baseline + Score)

CBO

baseline

(May 2013)

House bill

H.R. 2642

Commodities

58,765

-18,701

-17,442

-14,307

40,064

41,323

44,458

Conservation

61,567

-4,827

-3,511

-3,967

56,740

58,056

57,600

Trade

3,435

+150

+150

+139

3,585

3,585

3,574

Nutrition

764,432

-38,999

-3,944

-8,000

725,433

760,488

756,432

Credit

-2,240

+0

+0

+0

-2,240

-2,240

-2,240

Rural Development

13

+96

+228

+228

109

241

241

Research

111

+760

+781

+1,145

871

892

1,256

Forestry

3

+5

+10

+10

8

13

13

Energy

243

+0

+880

+879

243

1,123

1,122

Horticulture

1,061

+619

+304

+694

1,680

1,365

1,755

Crop Insurance

84,105

+8,914

+4,999

+5,722

93,019

89,104

89,827

Miscellaneous (incl. NAP)

1,410

+161

-294

+953

1,571

1,116

2,363

Total, Direct Spending

972,905

-51,822

-17,840

-16,504

921,083

955,066

956,401

+64

+54

+104

-51,886

-17,894

-16,608

2014 Farm Bill Titles

Change in Revenue

Net Impact on the Deficit

Senate bill Conference

S. 954

agreement

House bill

H.R. 2642

Senate bill Conference

S. 954

agreement

Source: CRS, using the CBO baseline and cost estimates (http://www.cbo.gov/publication/45049).

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Title-by-Title Summaries of the Enacted 2014 Farm

Bill (P.L. 113-79)

Farm Bill Title I, Commodities8

Under the enacted 2014 farm bill (P.L. 113-79), farm support for traditional program crops is

restructured by eliminating direct payments,9 the counter-cyclical price (CCP) program, and the

Average Crop Revenue Election (ACRE) program. Since 1996, direct payments have been made

to producers and landowners based on historical production of corn, wheat, soybeans, cotton, rice,

peanuts, and other “covered” crops. Direct payments lost political support in recent years because

recipients did not need to suffer a loss in order to receive a payment.

Approximately three-fourths of the 10-year, $47 billion in savings associated with the elimination

of current farm programs was used to offset the costs of revising farm programs in Title I, adding

permanent disaster assistance in Title I, and enhancing crop insurance in Title XI. P.L. 113-79

provides farm programs (described below) for covered crops, but not cotton, which has a new

crop insurance policy (see “Farm Bill Title XI, Crop Insurance”). Under P.L. 113-79, authority is

continued for marketing assistance loans, which provide additional low-price protection at “loan

rates” specified in previous law (with an adjustment made to the cotton loan rate). As in previous

farm bills as well as in the 2013 Senate farm bill, the enacted 2014 farm bill suspends permanent

price support authority under the Agricultural Adjustment Act of 1938 and Agricultural

Adjustment Act of 1949 until program authority expires in 2018. In contrast, the House bill would

have repealed permanent law and made permanent the commodity support programs authorized

in H.R. 2642.

P.L. 113-79 borrows conceptually from 2008 farm bill programs while enhancing price or revenue

protection for producers. Producers may choose between the following two programs linked to a

decline in either price or revenue (price times yield).

•

It retains a counter-cyclical price program, called Price Loss Coverage or PLC,

which makes a farm payment when the farm price for a covered crop declines

below its “reference price” set in statute (and the House bill). To better protect

producers in a market downturn, the reference prices are higher than the

parameters in the expired 2008 farm bill (called “target prices”). The Senate farm

bill would have provided slightly lower levels of fixed reference prices for rice

and peanuts, and significantly lower levels for other crops by using a marketbased reference price calculated as 55% of a rolling five-year average (excluding

the high and low years).10

8

The Commodities summary and side-by-side were written by (name redacted) (farm commodity support and

disaster programs), (name redacted) (dairy), (name redacted) (sugar), and (name redacted) (payment limits), all Specialists in

Agricultural Policy.

9

Cotton producers will receive direct payment assistance in crop years 2014 and 2015 as they transition to the STAX

insurance product (see Title XI, Crop Insurance).

10

The 2012 Senate-passed farm bill (S. 3240) did not provide for a counter-cyclical price program, and an amendment

to eliminate it for crops other than rice and peanuts failed during committee markup of S. 954.

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

After significant congressional debate, P.L. 113-79 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. Base acres can

be updated with plantings from 2009-2012. In contrast, the House bill would

have made payments based on 85% of planted acreage to better align payments

with producer risk, but critics contended that such a provision could lead to

production distortions and trade disputes.

•

It retains a revenue-based program, called Agriculture Risk Coverage (ARC),

which is designed to cover a portion of a farmer’s out-of-pocket loss (referred to

as “shallow loss”) when crop revenues decline. Farmers may select ARC as an

alternative to PLC. Like the PLC program, ARC payments are made on 85% of

base acres. (This is in contrast to both the House and Senate bills, which would

have made revenue program payments on planted acreage.) Payments are

triggered when actual crop revenue drops below 86% of historical or

“benchmark” revenue (compared with 88% in the Senate bill and 85% in the

House bill). Farmers can select coverage at either the county or individual farm

level.11

These farm programs are separate from a producer’s decision to purchase crop insurance.

However, farmers selecting the Price Loss Coverage (but not ARC) are also eligible to

purchase an additional subsidized crop insurance policy to protect against “shallow

losses” called the Supplemental Coverage Option (see Title XI, Crop Insurance below).

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

FY2008-FY2011. P.L. 113-79 retroactively reauthorizes and funds four programs covering

livestock and tree assistance, beginning FY2012 and continuing without an expiration date, as

provided in the House bill (the Senate bill had authorized the programs for only FY2012FY2018). The crop disaster program from the 2008 farm bill (i.e., Supplemental Revenue

Assistance, or SURE) was not reauthorized, but elements of it are folded into the new ARC by

allowing producers to protect against farm-level revenue losses. In the Miscellaneous Title (XII),

P.L. 113-79 adopted the Senate bill provision to provide disaster benefits to tree fruit producers

who suffered crop losses in 2012, and additional coverage levels are authorized under the

Noninsured Crop Assistance Program (NAP).

Farm commodity programs have certain limits that cap payments (in the 2008 farm bill, $40,000

per person for direct payments, plus $65,000 for counter-cyclical and ACRE payments; limits

may be doubled with a spouse). There is also an eligibility requirement based on adjusted gross

income (AGI, in the 2008 farm bill a maximum of $500,000 per person for nonfarm income and

$750,000 for farm income). The enacted 2014 farm bill sets a $125,000 per person cap on the

total of PLC, ARC, marketing loan gains and loan deficiency payments. This approach differs

from the House and Senate bills, which had separate $50,000 and $75,000 limits for the new

counter-cyclical and marketing loan programs, respectively. Although the total limit in P.L. 11379 is the same as in the two bills, some argue that this may allow larger payments from an

individual program when payments from another program are small. P.L. 113-79 applies the

$125,000 limit to the total from all covered commodities except peanuts, with a separate

$125,000 limit for peanuts—similar to 2008 farm bill law and the Senate proposal. Also

11

Under ARC, the revenue guarantee is set at 86% of historical revenue (i.e., the producer absorbs the first 14% of the

shortfall) at either the county or farm level (to cover more localized losses). The government then pays for the next

10% of the loss. Any remaining losses are backstopped by crop insurance if purchased by the producer.

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

regarding eligibility, P.L. 113-79 instructs USDA to write regulations that define “significant

contribution of active personal management” to more clearly and objectively implement existing

law. This differs from both the Senate and House bills, which would have deleted “actively

personal management” and effectively required personal labor in the farming operation. For AGI

limits, the enacted 2014 farm bill changes the AGI limit to a single, total AGI limit of $900,000.

The AGI limit was $750,000 in the Senate bill and $950,000 in the House bill. P.L. 113-79 does

not cap total farm program spending, unlike the House bill’s cap of $16.96 billion for FY2014FY2020 for combined payments under Price Loss Coverage and Revenue Loss Coverage.

For dairy policy, P.L. 113-79 makes significant changes, including as in both bills the 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 an average feed cost

ration) falls below a producer-selected margin ranging from $4.00 per hundredweight (cwt.) to

$8.00/cwt. No premium is charged for the minimum $4.00/cwt. margin protection; however,

premiums are charged for coverage at higher margins—the premium schedule differentiates for

annual milk production of 4 million or fewer pounds and for production greater than 4 million

pounds. The final law removes a provision in S. 954 that would have subjected participating

producers to a separate program to reduce incentives to produce milk when margins are low—the

House bill had specifically excluded this provision. In addition, the final bill adopts a provision

from the House bill that 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,

the Senate bill only included two additional provisions: one that would have required USDA to

use a specified pre-hearing procedure to consider alternative formulas for Class III milk product

pricing, and a second that would have required USDA to analyze and report on the potential

effects of replacing end-product pricing with alternative pricing procedures. P.L. 113-79 is silent

on this matter.

The objective and structure of the sugar program are left unchanged from prior law in P.L. 11379.

Farm Bill Title II, Conservation12

Prior to enactment of the 2014 farm bill (P.L. 113-79), the agricultural conservation portfolio

included over 20 conservation programs. The Conservation title of P.L. 113-79 reduces and

consolidates the number of conservation programs, while also reducing mandatory funding over

the 10-year baseline by close to $4 billion.

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, while smaller and similar conservation programs are “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 24 million by FY2018. CRP also is amended

to include the enrollment of grassland acres similar to the Grasslands Reserve Program (GRP),

12

This section was written by (name re dacted), Specialist in Agricultural Conser

vation and Natural Resources Policy.

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

which is repealed. EQIP, a program that assists producers applying conservation measures on land

in production, is reauthorized in the 2014 farm bill with a 5% funding carve-out for wildlife

habitat practices (similar to the Wildlife Habitat Incentives Program, WHIP, which is repealed).

Funding for EQIP is reduced by a total of almost $500 million over 10 years, halfway between

the Senate’s proposed reduction of $1 billion and the House bill’s proposal of none. CSP, another

working lands program, is reauthorized at a reduced enrollment level of 10 million acres annually,

down from 12.769 million acres annually under current law.

As in the House- and Senate-passed bills, P.L. 113-79 creates 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: wetland

reserve easements (similar to WRP) that protect and restore wetlands, and agricultural land

easements (similar to FPP and GRP) that prevent non-agricultural 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 (as in both the House and Senate bills) and consolidated into the new RCPP.

RCPP will use partnership agreements with state and local governments, Indian tribes, farmer

cooperatives, and other conservation organizations to leverage federal funding and further

conservation on a regional or watershed scale.

The most contentious provision in Title II was the Senate-passed bill’s inclusion of 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 previously affected most USDA farm program benefits, but has excluded crop

insurance since 1996. The House-passed bill offered no comparable provision; however, P.L. 11379 includes the majority of the Senate-passed provision, with some changes.

Farm Bill Title III, Trade13

Title III of the enacted 2014 farm bill (P.L. 113-79) deals with statutes concerning U.S.

international food aid and agricultural export programs. P.L. 113-79 reauthorizes all of the

international food aid programs, including the largest, Food for Peace Title II (emergency and

nonemergency food aid). In addition, P.L. 113-79 amends current food aid law both to increase

the portion of Title II funds allocated to eligible organizations under Section 202(e)—up from a

range of “not less than 7.5% nor more than 13%” to “not less than 7.5% nor more than 20%”—

and to allow for greater flexibility in the use of Section 202(e) funds, including for cash-based

assistance (i.e., cash transfers, food vouchers, and local and regional commodity purchases). In

addition, it places greater emphasis on improving the quality of food aid products (i.e., enhancing

their nutritional quality) and ensuring that sales of agricultural commodity donations do not

disrupt local markets. In this regard, an annual report to Congress is required to address how

13

The Trade summary and side-by-side were written by (name redacted) (international food aid) and (name redacted)

(agricultural export programs), both CRS Specialists in Agricultural Policy, and was originally written by (name redac

ted), Senior Specialist in Agricultural Policy (retired).

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

funds are allocated to and used by eligible organizations as well as the rate of return on aid

funds—defined as the sum of the proceeds from monetization of food aid commodities relative to

the total cost of procuring and shipping the commodities to the recipient country’s local market.

Special attention is to be given when the rate of return is below 70%.

The enacted 2014 farm bill repeals the specified, annual dollar amounts for nonemergency food

aid (i.e., the “safe box”) required in current law. Instead, it provides that not less than 20%, nor

more than 30% of funds be made available to carry out nonemergency food aid programs, subject

to the requirement that a minimum of $350 million be provided for nonemergency food aid each

fiscal year. P.L. 113-79 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 and raises the

authorized appropriations for LRP to $80 million annually for FY2014 through FY2018.

P.L. 113-79 reauthorizes funding for the Commodity Credit Corporation (CCC) Export Credit

Guarantee program. The value of U.S. agricultural exports that can benefit from export credit

guarantees remains at $5.5 billion annually. To address differences that have arisen over how the

United States might comply with the WTO cotton case won by Brazil, the final law grants

flexibility to the Secretary of Agriculture to make changes to the credit guarantee program to

meet the terms agreed upon by both countries. This program is also amended in three ways to

address in part Brazil’s criticism of how it is administered. P.L. 113-79 also reauthorizes through

FY2018 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. It also

provides CCC funding of $34.5 million annually through FY2018 for the Foreign Market

Development Program (FMDP), a generic commodity promotion program, and CCC funding of

up to $10 million a year through FY2018 for the Emerging Markets Program (EMP), to carry out

technical assistance activities that facilitate U.S. farm exports and to address technical barriers to

trade in emerging markets.

The enacted 2014 farm bill also requires the Secretary, in consultation with the House and Senate

Agriculture Committees and House and Senate Appropriations Committees, to propose a plan to

reorganize the international trade functions of USDA, to report to the congressional committees

on the plan 180 days after the farm bill’s enactment, and to implement the reorganization plan not

later than one year after the report is submitted. It directs the Secretary to include in the plan the

establishment of the position of an Under Secretary of Agriculture for Trade and Foreign

Agricultural Affairs within USDA, who will be responsible for serving as a multi-agency

coordinator of sanitary and phytosanitary matters and addressing agricultural non-tariff trade

barriers.

Farm Bill Title IV, Nutrition14

The Nutrition title in the enacted 2014 farm bill (P.L. 113-79) reconciles the House-passed bill

(H.R. 2642, as combined with H.R. 3102, Nutrition Reform and Work Opportunity Act) and the

Senate-passed bill (S. 954). The final law reauthorizes SNAP and related programs for five years;

CBO estimates that the Nutrition title in P.L. 113-79 will reduce spending by $8.0 billion over 10

years (FY2014-FY2023). The SNAP provisions alone are estimated to reduce spending by

14

The Nutrition summary and side-by-side were written by (name redacted), Analyst in Nutrition Assistance

Policy.

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

slightly more than $8.6 billion over 10 years. Certain other Nutrition provisions are estimated to

increase spending, which together result in the total estimated reduction of $8.0 billion.

Farm bill conferees were faced with significant differences in the SNAP provisions in the Senateand House-passed bills. Over the 10-year budget window (FY2014-FY2023), CBO estimated that

the Senate’s Nutrition title would have reduced spending by approximately $4 billion and the

House’s Nutrition title would have reduced spending by approximately $39 billion. The House

bill would have reauthorized SNAP and related programs for three years, while the Senate would

have reauthorized the programs for five years.15

Although the Nutrition title of the enacted 2014 farm bill contains a number of provisions that

change aspects of SNAP and related nutrition programs, it largely retains the provisions in the

Food and Nutrition Act of 2008 and other nutrition program authorizing statutes. For example,

most eligibility and benefit calculation rules in SNAP do not change under P.L. 113-79. While

various changes in the Nutrition title are estimated to reduce or increase spending on the nutrition

programs, most provisions are estimated to have little or no budgetary impact.

The budgetary impact of the Nutrition title in P.L. 113-79 (as compared to the Senate and House

bills) is largely the result of changes to SNAP eligibility and benefit calculation rules. In

particular, it is the result of the final law excluding two House SNAP provisions that were

estimated to make the bill’s greatest reductions in SNAP spending (ending broad-based

categorical eligibility and ending the availability of labor-market based waivers from the time

limit for certain able-bodied adults). Major issues that have potential to impact households’

eligibility and benefit amounts include the following.

•

P.L. 113-79 amends how Low-Income Home Energy Assistance Program

(LIHEAP) payments are treated in the calculation of SNAP benefits. Both the

Senate and House had included such changes, with the House version of this

change estimated to affect a greater share of participants. The final agreement, for

the most part, includes the House version. According to information from June

2012, this change to benefit calculation is expected to reduce household benefit

amounts in approximately 17 states.16

•

The House and Senate had both proposed to disqualify certain ex-offenders from

receiving SNAP benefits. P.L. 113-79 modifies that policy by requiring the

disqualification of only such offenders who are not complying with the terms of

their sentence.

•

P.L. 113-79 includes policies related to the SNAP Employment and Training

(E&T) program, including a pilot project authority and related funding ($200

15

Throughout the farm bill formulation, some policymakers expressed interest in separating the nutrition programs

from the omnibus farm bill. The House-passed bill’s provision to make the authorization of nutrition programs out of

sync with the rest of the farm bill programs were a step in that direction.

16

While virtually all SNAP states consider LIHEAP in their benefit calculation, according to a June 2012 survey by

USDA-FNS, approximately 16 states have leveraged nominal (as little as 10 cents) LIHEAP payments into an increase

in households’ SNAP benefits that is larger than the initial LIHEAP payment. This practice is sometimes referred to as

“Heat and Eat.” The 16 so-called “heat and eat” states are California, Connecticut, Delaware, District of Columbia,

Maine, Massachusetts, Michigan, Montana, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont,

Washington, and Wisconsin. A 17th state, New Hampshire, does not distribute nominal LIHEAP payments but does

allow an application for LIHEAP to qualify the household for the Standard Utility Allowance (which can result in a

higher SNAP benefit).

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

million over FY2014 and FY2015) for states to implement and USDA to evaluate

a variety of work programs for SNAP participants. The agreement includes the

House bill’s provisions that would expand reporting measures for all E&T

programs. P.L. 113-79 does not include the House’s expansion of the time limit

for able-bodied adults without dependents or the House’s work-related policies

that may incentivize states to reduce their caseloads.

•

P.L. 113-79 does not include any changes to broad-based categorical eligibility.

The House bill would have eliminated broad-based categorical eligibility, which

would have impacted the eligibility of SNAP participants in 43 states.

•

P.L. 113-79 does not include the House provision to give states the option to

administer drug testing as part of their eligibility determination processes.

Since SNAP provides benefits redeemable for SNAP-eligible foods at SNAP-eligible retailers,

much of SNAP law pertains to retailer authorization and benefit issuance and redemption. P.L.

113-79 includes the retailer and redemption provisions that had been included in both the House

and Senate bills. This includes requiring stores to stock more fresh foods, requiring retailers to

pay for their electronic benefit transfer (EBT) machines, and providing additional funding for

combatting trafficking (the sale of SNAP benefits). P.L. 113-79 also includes $100 million in

mandatory funding (over 10 years) for Food Insecurity Nutrition Incentive grants, a program

similar to that in the Senate bill, which will support organizations that offer bonus incentives for

SNAP purchases of fruits and vegetables.

The enacted 2014 farm bill increases funding for the Emergency Food Assistance Program

(TEFAP), the program that provides USDA foods and federal support to emergency feeding

organizations (e.g., food banks and food pantries). Taking into account CBO’s estimates of

inflation, it is estimated to provide an additional $205 million over 10 years, $125 million of

which is provided in the first 5 years. (The Senate bill would have increased funding by $54

million over 10 years, and the House would have increased funding by $333 million over 10

years.)

P.L. 113-79 includes many other changes to SNAP and related program policy. These changes

include amendments to the nutrition programs operated by tribes and territories, the Commodity

Supplemental Food Program (CSFP), and the distribution of USDA foods to schools. 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 P.L. 113-79 includes

related policies, such as farm-to-school efforts.

Farm Bill Title V, Credit17

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.

The enacted 2014 farm bill (P.L. 113-79) makes relatively small policy changes to USDA’s credit

programs. It gives USDA discretion to recognize alternative legal entities to qualify for farm

17

The Credit summary and side-by-side were written by (name redacted), Specialist in Agricultural Policy.

Congressional Research Service

12

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

loans and allow alternatives to meet a three-year farming experience requirement. It increases the

maximum size of down-payment loans, and eliminates term limits on guaranteed operating loans

(by removing a maximum number of years that an individual can remain eligible). It increases

the percentage of a conservation loan that can be guaranteed, adds another lending priority for

beginning farmers, and facilitates loans for the purchase of highly fractionated land in Indian

reservations, among other changes.

The Senate bill would have updated and modernized the ConAct’s statutory language and

reorganized the various programs into separate subtitles (Subtitle A for farm loans; Subtitle B for

rural development; Subtitle C for general provisions). The House bill, like the final law, did not

reorganize the ConAct.

For the Farm Credit Act, which governs the Farm Credit System, P.L. 113-79 adopts a Senate

provision that instructs the system’s regulator (the Farm Credit Administration) to improve the

disclosure of compensation packages for senior officers in the Farm Credit System.

Farm Bill Title VI, Rural Development18

Like the Credit title discussed above, the Rural Development title in the Senate-passed 2013 farm

bill (S. 954) proposed a restructuring of the ConAct, which provides permanent authority for

USDA to carry out many of the rural loan and grant programs in its portfolio. The Senate

provision would have consolidated various programs, established criteria for which rural

communities receive priority in making loan and grant awards, and modified the definitions of

“rural” and “rural area.” This proposed reorganization of the ConAct is not included in the

enacted 2014 farm bill (P.L. 113-79), although one aspect of the proposed restructuring is

retained: the consolidation of two rural business programs into a single business development

platform, which is authorized with annual appropriations of $65 million through FY2018. P.L.

113-79 increases the mandatory spending authorization of the Value-Added Agricultural Product

Grants to $63 million and retains the program’s $40 million in annual discretionary

appropriations. P.L. 113-79 also adopts the Senate provision providing $150 million in

mandatory spending for pending rural development loans and grants and the Senate provision to

fund the Microentrepreneur Assistance Program at $3 million annually in mandatory spending

and $40 million subject to appropriations.

P.L. 113-79 adopts the House provision to amend the water and waste water direct and guaranteed

loan program to encourage financing by private or cooperative lenders to the maximum extent

possible. The final law also adopts the House provision that provides up to 5% of the Community

Facilities appropriation for technical assistance to help smaller communities develop their

applications to the program, and to use loan guarantees to the maximum extent possible. P.L. 11379 also adopts the House provisions 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 enacted 2014 farm bill also retains the definition of “rural” and “rural area” under current law

for purposes of program eligibility. The Senate bill had proposed modifications to the 2008 farm

bill permitting communities that might otherwise be ineligible for USDA Rural Development

18

The Rural Development summary and side-by-side were written by (name redacted), Analyst in Natural Resources

and Rural Development.

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

funding to petition USDA to designate their communities as “rural in character,” thereby making

them eligible for program support. While the provision under current law is retained, the

modifications to the provision were not adopted by the conferees. P.L. 113-79 does amend the

definition of rural area in the 1949 Housing Act so that areas deemed rural between 2000 and

2010 will retain that designation until USDA receives data from the 2020 decennial census. That

provision also raises the population threshold for eligibility from 25,000 to 35,000.

P.L. 113-79 adopts the Senate provision authorizing USDA to prioritize otherwise eligible

applications that support multijurisdictional strategic economic and community development. The

provision reserves 20% of a fiscal year’s appropriation for community facilities, water and waste

water projects, and rural business development for such strategic development projects. Also

adopted is the Senate provision authorizing a new Rural Energy Savings Program, which provides

0% interest rate loans to eligible borrowers to implement energy efficiency measures.

Included in P.L. 113-79 (as in both 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. It largely

adopts the Senate provisions authorizing access to broadband telecommunications service to rural

areas, including authorized appropriations of $10 million annually (FY2014-FY2018) for a new

Rural Gigabit Network Pilot program for “ultra-high speed” broadband connectivity. Conferees

did not adopt the Senate provision that would have authorized a new grant program for rural

broadband in addition to the existing loan program.

P.L. 113-79 adopts the Senate provision reauthorizing the Northern Great Plains Regional

Authority at its current authorized appropriation of $30 million annually, rather than the House

measure that would have authorized $2 million in appropriations. As in both bills, P.L. 113-79

also reauthorizes the three regional authorities established in the 2008 farm bill.

Farm Bill Title VII, Research19

USDA is authorized under various laws to conduct agricultural research at the federal level, and

to provide support for cooperative research, extension, and post-secondary agricultural education

programs in the states. The enacted 2014 farm bill (P.L. 113-79) reauthorizes funding for these

activities through FY2018, subject to annual appropriations, and amends authority so that only

competitive grants can be awarded under certain programs.

Mandatory spending for the research title is increased by $1.145 billion over 10 years compared

with projected baseline spending. Funding is increased for the Specialty Crop Research Initiative

($745 million over 10 years) and the Organic Agricultural Research and Extension Initiative

($100 million). Also, mandatory funding is continued for the Beginning Farmer and Rancher

Development Program ($100 million).

As in the Senate-passed version of the bill, P.L. 113-79 provides 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

19

The Research summary and side-by-side were written by (name redacted), Specialist in Agricultural Policy.

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

private donations to award grants for collaborative public/private partnerships with scientists at

USDA and in academia, nonprofits, and the private sector.

Farm Bill Title VIII, Forestry20

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.

The enacted 2014 farm bill (P.L. 113-79) generally repeals, reauthorizes, and modifies 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.

Many federal forestry assistance programs are permanently authorized, and thus do not require

reauthorization in the farm bill. However, P.L. 113-79 does reauthorize several other forestry

assistance programs through FY2018. It also repeals programs that have expired or have never

received appropriations. Both the House- and Senate-passed bills included similar

reauthorizations and repeals.

P.L. 113-79 also includes provisions that address the management of the National Forest System.

For example, it permanently reauthorizes stewardship contracting and extends the good neighbor

authority nationwide. Both the House and the Senate bills included similar provisions, although

the House bill would have reauthorized stewardship contracting only through FY2018. P.L. 11379 also adopts a Senate provision authorizing the designation of treatment areas within the

National Forest System that are of deteriorating forest health due to insect or disease infestation,

and allowing for expedited project planning within those designated areas. However, it does not

include House provisions requiring the designation of critical areas within the National Forest

System and authorizing expedited project planning for projects up to 10,000 acres. P.L. 113-79

does include provisions from the House bill to modify the existing public notice, comment, and

appeals process for land and resource management plans.

Farm Bill Title IX, Energy21

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 Bioenergy Program for Advanced Biofuels, which pays producers for production of

eligible advanced biofuels; the Biorefinery Assistance Program, which assists in the development

of new and emerging technologies for advanced biofuels; 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 biofuels-related 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.

20

21

The Forestry summary and side-by-side were written by (name redacted), Analyst in Natural Resources Policy.

The Energy summary and side-by-side were written by (name redacted), Specialist in Agricultural Policy.

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

All of the major farm bill energy programs expired at the end of FY2013 and lacked baseline

funding going forward. The enacted 2014 farm bill (P.L. 113-79) extends most of the renewable

energy provisions of the 2008 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. In addition, P.L. 11379 adds a new reporting requirement on energy use and efficiency at USDA facilities.

Over the five-year reauthorization period (FY2014-FY2018), P.L. 113-79 contains a total of $694

million in new mandatory funding and authorizes $765 million to be appropriated for the various

farm bill renewable energy programs. This contrasts with the House- and Senate-passed farm

bills. The Senate bill (S. 954) contained a total of $880 million in new mandatory funding and

authorized $1.140 billion to be appropriated for the various farm bill renewable energy programs.

The House bill (H.R. 2642) contained no mandatory funding for these programs and authorized

$1.405 billion over the five years, subject to annual appropriations. In addition, the House bill

would have eliminated all support for the collection, harvest, storage, and transportation (CHST)

component of BCAP, which would have severely limitied its potential effectiveness as an

incentive to produce cellulosic feedstocks. BCAP funding for CHST is retained in P.L. 113-79.

Farm Bill Title X, Horticulture22

The enacted 2014 farm bill (P.L. 113-79) adopts many of the horticulture provisions in the

Senate- (S. 954) and House-passed (H.R. 2642) farm bills. The final bill reauthorizes many of the

existing farm bill provisions supporting farming operations in the specialty crop and certified

organic sectors. 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. CBO estimates a total increase in mandatory spending of $338

million (FY2014-FY2018) for Title X in P.L. 113-79. However, 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 new law. These include programs in the research, nutrition, and trade

titles, among others. CBO’s cost estimate for specialty crop provisions in Title X does not include

cost estimates for provisions in other titles. CBO estimates research programs benefitting

specialty crop and organic producers, for example, will require a $418 million increase in

mandatory spending (FY2014-FY2018).

P.L. 113-79 adopts nearly all the programs reauthorized in both the House and Senate bills, and in

some cases provides for increased funding for several key programs benefitting specialty crop

producers. These include 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 the Fresh Fruit and Vegetable Program (Snack Program) and Section 32 purchases

for fruits and vegetables under the Nutrition title. The final law also reauthorized 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

22

The Horticulture summary and side-by-side were written by (name redacted), Specialist in Agricultural Policy.

Congressional Research Service

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The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

promotion order (or “checkoff” program) for the organic sector. Reauthorization of each of these

provisions was in both the House and Senate bills. One exception is that the House bill would

have repealed the National Organic Certification Cost Share Program (NOCCSP), which was not

part of the Senate bill, but was included in the final law.

Programs in other farm bill titles benefitting specialty crop and certified organic producers

include the Value-Added Producer Grant Program, Technical Assistance for Specialty Crops

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

assistance specifically for organic producers), among other programs, within the crop insurance,

credit, and miscellaneous titles. Horticulture and other titles in P.L. 113-79, which were for the

most part included in both the House-and Senate-passed bills, also include provisions that expand

opportunities for local food systems and also beginning farmers and ranchers. Other provisions

supporting local food producers are within the research, nutrition, and rural development titles,

among others.

The House-passed bill included other provisions that were not in the Senate bill. These provisions

would have provided 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. P.L. 113-79 included aspects of some of these provisions, albeit in modified form,

but did not adopt the provisions as proposed by the House bill.

Farm Bill Title XI, Crop Insurance23

The crop insurance title enhances the existing federal crop insurance program, which is

permanently authorized by the Federal Crop Insurance Act. Crop insurance is designed generally

to cover losses from natural disasters, while Title I programs (“farm programs”) make payments

to farmers of program crops when prices fall below statutory minimums or when crop revenue is

low relative to recent levels.

The federal crop insurance program makes available subsidized crop insurance to producers who

purchase a policy to protect against losses in yield, crop revenue, or whole farm revenue. More

than 100 crops are insurable. The enacted 2014 farm bill (P.L. 113-79) increases funding for crop

insurance relative to baseline levels by an additional $5.7 billion over 10 years.

Most of the funding increase stems from two new insurance products, one for cotton and one for

other crops. With cotton not covered by the counter-cyclical price or revenue programs

established in Title I, a new crop insurance policy called Stacked Income Protection Plan (STAX)

is made available 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, P.L. 113-79 (as in both the House- and Senate-passed bills)

makes 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.

23

The Crop Insurance summary and side-by-side were written by (name redacted), Specialist in Agricultural Policy.

Congressional Research Service

17

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Additional crop insurance changes in both bills, and adopted by the conferees, are designed to

expand or improve crop insurance for other commodities, including specialty crops. Provisions

revise the value of crop insurance for organic crops to reflect prices of organic (not conventional)

crops. USDA is required to conduct more research on whole farm revenue insurance with higher

coverage levels than currently available. Studies or policies 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,

(6) producers of biomass sorghum or sweet sorghum grown as feedstock for renewable energy,

and (7) alfalfa producers. A peanut revenue insurance product and rice margin insurance also are

mandated. Another provision provides funding for private-sector index weather insurance, which

insures against specific weather events and not actual loss.

For conservation purposes, a provision in Title XI reduces crop insurance subsidies and

noninsured crop disaster assistance for the first four years of planting on native sod acreage in

Iowa, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. In Title II, crop

insurance premium subsidies are available only if producers are in compliance with wetland

conservation requirements and conservation requirements for highly erodible land, as originally

adopted by the Senate.

A controversial item not included in P.L. 113-79 was the reduction of premium subsidies for high

income farmers, a provision that was included in the Senate bill but not the House bill. 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 in June 2013 by a vote of 59-33.

Farm Bill Title XII, Miscellaneous24

The Miscellaneous title of the enacted 2014 farm bill (P.L. 113-79) contains four sections:

livestock; socially disadvantaged and limited-resource producers; other miscellaneous, and a

fourth section added by the conferees on oilheat efficiency, research, and jobs training.

Animal health-related provisions in the livestock section of P.L. 113-79 include provisions that

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

24

The Miscellaneous summary and side-by-side were written by (name redacted), Analyst in Agricultural Policy (animal

agriculture). Other contributors to the Title XII side-by-side are (name redacted), Analyst in Natural Resources and

Rural Development (socially disadvantaged farmers); (name redacted), Specialist in Agricultural Policy (USDA data

collection); (name redacted), Specialist in Agricultural Policy (Noninsured Assistance Program); Renee Johnson,

Specialist in Agricultural Policy (FSMA); (name redacted), Specialist in Resources and Environmental Policy (EPA);

(name redacted), Analyst in Natural Resources Policy (ocean and fisheries policy); (name redacted), Specialist in

Environmental Policy (spill prevention); (name redacted), Specialist in Natural Resources Policy (water resources);

(name redacted), Specialist in Natural Resources Policy (Payment in Lieu of Taxes); and (name redacted), Specialist in

Energy Policy (oilheat).

Congressional Research Service

18

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

Plan. The section also includes a Sense of Congress statement on the priority of feral swine

eradication.

P.L. 113-79 establishes a competitive production and marketing grant program for the sheep

industry through the National Sheep Industry Improvement Center. Another provision confirms

the transfer of catfish inspection authority to USDA from FDA (originally in the 2008 farm bill)

and directs USDA to finalize the rules on catfish inspection, and for USDA and FDA to execute a

memorandum of understanding to improve interagency cooperation on inspection. Lastly, USDA

is to conduct an economic analysis of its country-of-origin labeling (COOL) rule (78 Federal

Register 31367, May 24, 2013) within 6 months of the enactment of the farm bill. Some livestock

industry groups pushed for a provision to repeal or modify the COOL law, but such a provision

was not included in the final law.

P.L. 113-79 extends authority for outreach and technical assistance programs for socially

disadvantaged farmer and ranchers, and adds military veteran farmers and ranchers as a

qualifying group. The final law creates a research center to develop policy recommendations for

socially disadvantaged farmers and ranchers, reauthorizes funding for the USDA Office of

Advocacy and Outreach for socially disadvantaged and veteran farmers and ranchers, and

includes a provision to increase transparency by automatically providing receipts for service or

denial of service.

Provisions in the other miscellaneous section of Title XII preserve farm bill benefits for

participants in the High Plains Water Study, make available higher coverage levels under the

Noninsured Crop Assistance Programs, prohibit attendance at animal-fighting events and exempt

small dealers and exhibiters from license requirements under the Animal Welfare act. P.L. 113-79

also includes grants to promote the U.S. maple syrup industry, and grants for technological

training for farm workers. It also creates a military veterans agricultural liaison within USDA to

advocate for and to provide information to veterans, and establishes an Office of Tribal Relations

to coordinate USDA activities with Native American tribes.

The final Miscellaneous title contains two provisions related to the Environmental Protection

Agency (EPA). The first establishes a standing agriculture-related subcommittee under the EPA’s

Science Advisory Board to provide advice on matters of significant impact on agricultural

entities. The second provides National Pollutant Discharge Elimination System permit

exemptions for certain silviculture activities. A provision amending the EPA’s spill prevention,

control, and countermeasure rule was excluded; as well as a provision prohibiting EPA from

disclosing producer information

The section also includes provisions to establish a Pima Cotton Trust Fund and an Agriculture

Wool Apparel Manufacturers Trust Fund for users of pima cotton and wool, and funding for wool

research and promotion. The Citrus Disease Research and Development Trust Fund provision

from the Senate bill was moved to the research title.

P.L. 113-79 adds a provision not found in either the House or Senate bills to provide mandatory

funding in 2014 for Payments in Lieu of Taxes, which provides payments to local governments

based on the presence of non-taxable federal lands. Also, the fourth section of the miscellaneous

title includes new provisions on oilheat efficiency, renewable fuels research, and jobs training.

Sixteen provisions that were in either the House or Senate bill are not included in P.L. 113-79.

One particularly controversial issue that was deleted in conference was the interstate commerce

Congressional Research Service

19

The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side

provision originally in the House bill that would have prohibited states from imposing production

or manufacturing standards on agricultural products from other states. Of interest to the livestock

and poultry industry, provisions repealing marketing and competition rules proposed by USDA

(the GIPSA rule) were excluded. Some of the other provisions not included were flood protection

for the Missouri River basin and the Wallkill River and Black Dirt region; prohibitions on closing

Farm Service Agency (FSA) offices with high workloads; a prohibition on FSA employees

keeping GSA-leased cars overnight; and provisions on the restoration of the Chesapeake Bay also

were excluded from the final law.

Congressional Research Service

20

A Side-by Side Comparison of the Enacted 2014 Farm Bill (P.L. 113-79) with

the Senate-Passed (S. 954) and House-Passed (H.R. 2642) Bills and Prior Law

Title I. Commodities

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

Covered commodities: wheat,

corn, grain sorghum, barley, oats,

upland cotton, long grain rice,

medium grain rice, pulse crops (dry

peas, lentils, small chickpeas, and

large chickpeas), soybeans, and other

oilseeds (sunflower seed, rapeseed,

canola, safflower, flaxseed, mustard

seed, crambe, sesame seed). [7

U.S.C. 7901(4,9) Peanuts were not

defined as a “covered commodity”

but treated as such under farm

programs.

Peanuts are included as a covered

commodity but not cotton, which is

eligible for the Stacked Income

Protection Plan (STAX) (see Title XI).

USDA is required to consider popcorn as

a covered commodity. [Sec. 1104(8)]

Same as Senate bill except popcorn

provision is not included. [Sec. 1104(4)]

Peanuts are included as a covered

commodity but not cotton, which is

eligible for the Stacked Income Protection

Plan (STAX) (see Title XI). Also, acreage

of wheat, oats, and barley used for haying

and grazing is considered as base. [Sec.

1111(6)]

Base acres: For purposes of

calculating farm program payments,

the number of base acres of a

covered commodity on a farm as

established under the 2002 farm bill

[7 U.S.C. 7911], subject to

adjustments for pulse crops, other

oilseeds, and conservation reserve

contracts. [7 U.S.C. 8711] Same for

peanuts. [7 U.S.C. 7952, 7 U.S.C.

8752]

The number of base acres of a covered

commodity established under the 2008

farm bill, as in effect the date of

enactment of this act, subject to

adjustment. The Secretary shall maintain

a record of farms with upland cotton

base acres in effect on the day before the

date of enactment of this act. Base acres

for peanuts may be updated using 20092012 plantings. [Sec. 1105]

The number of farm base acres is the sum

of base acreage for all covered

commodities and cotton in effect as of

September 30, 2013. [Sec. 1104(7)]

Individual crop-specific base acreages

(except cotton) are retained, as in effect

on September 30, 2013, subject to any

adjustments in Sec. 1112, including

conservation reserve contracts and

inclusion of additional oilseeds designated

by the Secretary. [Sec. 1111(4)]

Commodity Program Terms

CRS-21

Farm owners have a 1-time opportunity

to reallocate base acres among covered

crops according to the average planted

acreage shares (by covered crop) for the

2009-2012 period. The reallocation of

base acres cannot result in the total

number of base acres (including generic

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

base described below) for a farm

exceeding the number of base acres in

effect on the farm as of Sept. 30, 2013.

Total base (including generic base) cannot

exceed total cropland on the farm. [Sec.

1112].

Establishes “generic base acres” equal to

the amount of cotton base acres in effect

under the 2008 farm bill as of September

30, 2013. [Sec. 1111(9)] Generic base is

eligible for payments if a covered crop is

planted on the farm. Specifically, for each

crop year, generic base acres are

attributed (i.e. temporarily designated as)

base acres to a particular covered

commodity base in proportion to that

crop’s share of total plantings of all

covered commodities in that year. The

amount of generic base attributed for a

particular year cannot exceed the acreage

planted to covered crops in that year (use

of double-cropping for payment

calculations is not allowed unless the

practice is approved by the Secretary).

[Sec. 1112].

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

CRS-22

Repeals direct payments. [Sec. 1101]

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]

Identical to the Senate bill. [Sec. 1101]

Transition payments are made available

for upland cotton for the 2014 crop year

(and for 2015 if STAX is not yet available

– see Title XI). Payment equals program

yield (divided by the national yield of 597

pounds per acre) times transition

assistance rate times payment acres.

Transition rate is based on cotton price

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

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]

Enacted 2014 Farm Bill

(P.L. 113-79)

decline between June 2013 and December

2013. Payment acres in 2014 equal 60% of

2013 cotton base acres and 36.5% in 2015.

[Sec. 1119]

Planting flexibility: Any crop could

be planted on base acres to receive

program benefits, except fruits,

vegetables (other than mung beans

and pulse crops), and wild rice.

Exceptions provided for farms and

producers with a history of doublecropping or history of growing fruits

and vegetables; in this case, direct

and counter-cyclical payments are

reduced acre-for-acre for the year.

[7 U.S.C. 8717, 7 U.S.C. 8756] A

pilot program beginning in 2009 in

seven Midwestern states allowed

planting of fruits and vegetables for

processing on base acres. Base acres

were temporarily reduced for the

year, but restored for the next crop

year and “considered planted” for

any future base calculations. [7

U.S.C. 8717(d)]

No crop planting limitations on base

acres for new farm programs.

Same as Senate bill.

Any crop may be planted without effect

on base acres. However, payment acres

on a farm are reduced in any crop year in

which fruits, vegetables (other than mung

beans and pulse crops), or wild rice have

been planted on base acres. The reduction

to payment acres is equal to the base

acres planted to these crops in excess of

15% of base acres for either the Price

Loss Coverage or county coverage under

the Agriculture Risk Coverage (ARC)

program, and in excess of 35% of base

acres for ARC individual coverage. [Sec.

1114(e)]

Farms with limited base acres: A

producer on a farm may not receive

direct payments, counter-cyclical

payments, or average crop revenue

election payments (see below) if the

sum of the base acres of the farm is

10 acres or less (provision was

Same provision for adverse market

payments (see below). [Sec. 1105(d)]

Same provision for Price Loss Payment

and Revenue Loss Coverage (see below).

[Sec. 1107(a)(2)]

A producer on a farm may not receive

Price Loss Coverage payments or

Agriculture Risk Coverage payments (see

below) if the sum of the base acres on the

farm is 10 acres or less, except for socially

disadvantaged farmers/ranchers or limited

resource farmers/ranchers, [Sec.

CRS-23

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

suspended for the 2008 crop year).

[7 U.S.C. 8711(d)]

Enacted 2014 Farm Bill

(P.L. 113-79)

1114(d)]

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. Counter-cyclical

payments for peanuts authorized

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

Repeals counter-cyclical payments. [Sec.

1102]

Repeals counter-cyclical payments. [Sec.

1102]

Repeals counter-cyclical payments, as in

both bills. [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 12month national average market price (or

loan rate, if higher), [Sections 11041107]

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. 11041107]

Establishes Price Loss Coverage (PLC)

as in House bill, with the exception that

PLC covers crop years 2014-18, payments

are made on base acres, a national 12month price is used instead of a

midseason price, and no annual report is

required. [Sec. 1116]

Target prices for 2013:

Reference prices:

Reference prices:

Wheat, bu., $4.17

Long grain rice, cwt., $13.30

Wheat, bu., $5.50

Identical to the House bill except as noted

below. [Sec. 1111]

Corn, bu., $2.63

Medium grain rice, cwt., $13.30

Corn, bu., $3.70

Grain sorghum, bu., $2.63

Peanuts, ton, $523.77

Grain sorghum, bu., $3.95

Barley, bu., $2.63

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.

Barley, bu., $4.95

Oats, bu., $1.79

Upland cotton, lb., $0.7125

Long grain rice, cwt., $10.50

Medium grain rice, cwt., $10.50

Soybeans, bu., $6.00

Other oilseeds, cwt., $12.68

CRS-24

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 temperate japonica rice, price is

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Dry peas, cwt., $8.32

increased 15%)

Lentils, cwt., $12.81

Soybeans, bu., $8.40

Small chickpeas, cwt., $10.36

Other oilseeds, cwt., $20.15

Large chickpeas, cwt., $12.81

Dry peas, cwt., $11.00

Peanuts, ton, $495

Lentils, cwt., $19.97

Enacted 2014 Farm Bill

(P.L. 113-79)

Small chickpeas, cwt., $19.04

Large chickpeas, cwt., $21.54

Peanuts, ton, $535

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).

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 yield per planted acre).

Payment acres cannot exceed farm base

acres.

Payment amount = Payment rate times

85% of base acres for each covered

commodity (including attributed generic

base) times existing counter-cyclical

program yield (or updated yields equal to

90% of 2008-2012 average yield per

planted acre). [Sections 1112-1116]

Repeals Average Crop Revenue Election

(ACRE) program. [Sec. 1103]

Repeals Average Crop Revenue Election

(ACRE) program. [Sec. 1103]

Identical to the House and Senate bills.

[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]

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-

Same as Senate bill except as noted below.

ARC may be selected as an alternative to

PLC (i.e., not in combination with) on a

commodity-by-commodity basis for each

farm (except when producers select farmlevel ARC, then PLC is not an option for

any commodity). [Sections 1115 and

1117]

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

CRS-25

Prior Law/Policy—

Commodities Title

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 5-year 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]

CRS-26

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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.

Guarantee is 86% of the benchmark

revenue.

—(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

No farm option available,

Payment is made on 65% of base acres

(not planted acreage). Individual (farm

level) ARC guarantee and payment

calculation are based on total revenue for

all crops.

—(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).

Payment is made on 85% of planted acres

and 30% of prevented planted acres.

Payment is made on 85% of base acres

(not planted acreage).

Payments made 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 peracre 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:

Prior Law/Policy—

Commodities Title

No comparable provision.

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

No comparable provision.

For all crops, reference prices (see PLC)

are used as minimum prices in the

revenue guarantee.

Same as the House bill.

Separate guarantees are to be calculated

for irrigated and nonirrigated crops and

differentiated by class of sunflower seeds,

barley (using malting prices), and wheat.

Separate guarantees are to be calculated

for irrigated and nonirrigated crops.

Same as the House bill.

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 acres capped at total farm base

acres.

The reallocation of base acres cannot

result in the total number of base acres

(including generic base) for a farm

exceeding the number of base acres in

effect on the farm as of Sept. 30, 2013.

Payment is made on or after October 1

following the completion of the

marketing year.

Same as Senate bill.

Same as the House and Senate bills.

In combination with AMP/ARC,

producers may purchase an additional

insurance policy called Supplemental

Coverage Option (SCO) under Title XI

(crop insurance).

Supplemental Coverage Option (SCO) is

not available in combination with RLC but

may be purchased with PLC.

Supplemental Coverage Option (SCO) is

not available in combination with ARC or

STAX for upland cotton, but may be

purchased with PLC.

No comparable provision.

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)]

No comparable provision.

Identical to the Senate bill except applies

to 2014 crop and each succeeding annual

crop. [Sec. 1201]

Identical to the Senate bill. [Sec. 1201]

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

CRS-27

Generally continues prior law to cover

2014-2018 crop years for all loan

commodities (including peanuts). [Sec.

1201]

Prior Law/Policy—

Commodities Title

separately. [7 U.S.C. 8757]

For peanuts, nonrecourse marketing

loans available in crop years 20082013. May be obtained through

marketing cooperative or association

approved by USDA. Storage to be

provided on a non-discriminatory

basis and under any additional

requirements. Payment of peanut

storage costs authorized for 20082013 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

CRS-28

Senate-Passed 2013 Farm Bill

(S. 954)

Loan commodities same as current law.

[Sec. 1201]

For 2014-2018 crop years, loan rates

same as prior 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]

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]

Enacted 2014 Farm Bill

(P.L. 113-79)

Identical to the Senate bill. [Sections

1201 and 1202]

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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)]

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)]

Same as prior law. [Sec. 1203]

Identical to the Senate bill. [Sec. 1203]

Identical to the House and Senate bills.

[Sec. 1203]

Loan repayment: Loans may be

repaid at the lesser of (1) the loan

rate plus interest, (2) a rate 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)]

Same as prior law. [Sec. 1204]

Identical to the Senate bill. [Sec. 1204]

Identical to the House and Senate bills.

[Sec. 1204]

CRS-29

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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)]

Payments reauthorized for 2014-2018

crop years with 20% rate reduction. [Sec.

1204]

Payments reauthorized for 2014 crop year

and each succeeding crop year; rate

reduction is 10%. [Sec. 1204]

Same as the Senate bill except rate

reduction is 10%. [Sec. 1204]

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 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

For 2014-2018 crop years, same as prior

law. [Sec. 1205]

For 2014 and each succeeding crop year,

same as the Senate bill. [Sec. 1205]

Identical to the Senate bill. [Sec. 1205]

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)]

CRS-30

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 prior

law, except payment is based on yield

used for Agriculture Risk Coverage. [Sec.

1206]

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]

Identical to the Senate bill except yield can

be based on PLC if applicable or as

determined by the Secretary. [Sec. 1206]

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)]

Provisions not extended.

Provisions extended without an expiration

date beginning August 1, 2014. [Sec.

1207]

Identical to the House bill. [Sec. 1207]

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.

Same as prior law. [Sec. 1207]

Same as Senate bill except assistance

begins August 1, 2013. [Sec. 1207]

Identical to the House bill. [Sec. 1207]

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)]

CRS-31

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 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]

Same as prior law during the period

beginning on the date of enactment of

this Act through July 31, 2019. [Sec.

1208]

Same as the Senate bill except program

continues without an expiration date.

[Sec. 1208]

Identical to the Senate bill. [Sec. 1208]

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]

For 2014-2018 crop years, same as prior

law. [Sec. 1209]

For 2014 and each succeeding crop year,

same as the Senate bill. [Sec. 1209]

Same as the Senate bill except payment

yield for feed grains is the lower of the

PLC yield or actual yield. [Sec. 1209]

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

Same as prior law. [Sec. 1210]

Nearly identical to the Senate bill except

removes certain mandatory provisions to

quality adjustments. [Sec. 1210]

Identical to the House bill. [Sec. 1210]

CRS-32

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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]

Similar to the Senate bill, with application

to Price Loss Coverage (PLC) and

Agriculture Risk Coverage (ARC).

Excludes provision for use of crop

insurance data. [Sec. 1118]

No comparable provision.

Similar to the Senate bill with

modification. See Title II Conservation. [Sec. 2611]

factors. [7 U.S.C. 8740]; [7 U.S.C.

8758] for peanuts.

Conservation Compliance/Producer Agreement

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 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)].

Same as prior 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.

Acreage receiving payments are used for

an agricultural or conserving use, and not

for a nonagricultural commercial,

industrial, or residential use. [Sec. 1109]

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

CRS-33

SURE is not reauthorized. Other four

programs are reauthorized retroactively

Same as Senate bill, except as noted

below. Also, programs are authorized and

Identical to the House bill. [Sec. 1501]

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

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.

with mandatory funding from the

Commodity Credit Corporation for

FY2012 through FY2018. Producers are

not required to purchase crop insurance

or NAP coverage. [Sec. 1501]

funded without an expiration date. [Sec.

1501]

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, Honey

Bees, and Farm-Raised Fish (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),

LIP payment rate is reduced from 75% to

65% of the market value of livestock.

LIP payment rate remains at 75%. Eligible

loss expanded to include attacks by

animals reintroduced into the wild by the

federal government or protected by

federal law.

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.

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.

Maximum funding for ELAP is $15 million

annually.

Maximum funding for ELAP is $20 million

annually.

CRS-34

Enacted 2014 Farm Bill

(P.L. 113-79)

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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. To be eligible for

these programs, a producer must

purchase crop insurance or coverage

under the Noninsured Crop Disaster

Assistance Program (NAP).

TAP payment rate for replanting is

reduced from 70% to 65%.

Same as Senate bill.

Maximum payments set at $100,000

per person per year for first four

programs combined. TAP has a

separate limit of $100,000 and

payment acreage may not exceed 500

acres.

Retains the combined $100,000 per

person payment limit for LIP, LFP, and

ELAP. Retains the separate limit of

$100,000 for TAP and the 500-acre limit.

Combined payment limit of $125,000 per

person for LIP, LFP, and ELAP. Retains

separate limit of $125,000 for TAP and

the 500-acre limit.

No comparable provision.

No comparable provision.

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]

No comparable provision.

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. 9009 in Title

IX- Energy]

Identical to the Senate bill. [Sections

1301 and 9009]

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

CRS-35

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., sugarto-ethanol program) through the 2018

crop year. [See Sec. 9008 in Title IX -

Prior Law/Policy—

Commodities Title

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-toethanol program) under specified

conditions. [7 U.S.C. 1359aa et

seq., 7 U.S.C. 8110]

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

Energy]

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. 1359aa1359jj, 1359ll]

Import Quotas

For each marketing year, requires

USDA by October 1 to set the initial

sugar import quota at 1.256 mill.

CRS-36

Same as prior law.

Same as prior law.

Same as prior law.

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 (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

CRS-37

Repealed. [Sec. 1471(a)]

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

Identical to the House and Senate bills.

[Sec. 1421]

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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]

Milk Income Loss Contract (MILC)

Program. 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)]

Milk Income Loss Contract (MILC)

Program. Repealed. [Sec. 1411(b)]

Milk Income Loss Contract (MILC)

Program. Extended temporarily, MILC is

repealed effective the earlier of: the date

the new Margin Protection Program (MPP,

see below) is operational or September 1,

2014. During the MILC extension period

the payment rate shall be calculated using

pre-September 2013 parameters—i.e.,

45%, 2,985 million lbs., and $7.35/cwt.

[Sec. 1422]

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]

Identical to the Senate bill. [Sec. 1412]

Identical to the House and Senate bills.

[Sec. 1423]

exceed specified levels. Expires on

December 31, 2013. [7 U.S.C. 8771]

CRS-38

Prior Law/Policy—

Commodities Title

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]

Extended through FY2018. Allows for

new contracts until September 30, 2018,

but no contract can extend beyond

September 30, 2021. [Sec. 1473]

Identical to the Senate bill. [Sec. 1413]

Identical to the House and Senate bills.

[Sec. 1424]

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]

Extended through FY2018. [Sec. 1474]

Identical to the Senate bill. [Sec. 1414]

Identical to the House and Senate bills.

[Sec. 1425]

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

Extended through FY2018. [Sec. 1475]

Identical to the Senate bill. [Sec. 1415]

Identical to the House and Senate bills.

[Sec. 1426]

CRS-39

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 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]

Requires USDA to use a specified prehearing procedure to consider alternative

formulas for Class III milk product

pricing. [Sec. 1462]

No comparable provision.

No comparable provision.

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]

No comparable provision.

No comparable provision.

Inclusion of California as

Separate Federal Marketing

Order. Upon the petition and

approval of California dairy

producers in the manner provided in

section 608c of this title, the

Secretary shall designate the state of

California as a separate Federal milk

marketing order (FMMO). The order

covering California shall have the

right to reblend and distribute order

receipts to recognize quota value.

USDA was required to announce any

such proposed amendment to

FMMOs by April 4, 1998, and to

No comparable provision.

Inclusion of Additional Order. Adds a

provision to remove the expiration date

for USDA to act upon a petition from

California dairy producers for designation

as a separate FMMO. [Sec. 1402(c)]

Identical to the House bill.

[Sec. 1410(d)]

CRS-40

Prior Law/Policy—

Commodities Title

implement such amendment by April

4, 1999. [7 U.S.C. 7253(a)(2)]

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.

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

Provides an option for funding from

sources other than annual appropriations.

[Sec. 1476]

Repealed. [Sec. 1416]

Identical to the House bill. [Sec. 1427]

Requirements are added that specify a

reporting periodicity that is more

frequent than once per month. [Sec.

1461]

No comparable provision.

No comparable provision.

No comparable provision.

Actual Dairy Production Margin:

difference between all-milk price and

average feed cost. [Sec. 1401(1)]

Identical to the Senate bill. Amended Sec.

1511(a)(1) of the enacted 2008 farm bill.

[Sec. 1401]

Identical to the House and Senate bills.

[Sec. 1401(1)]

No comparable provision.

All-Milk Price: the national average

price received, per cwt. of milk, by dairy

operations. [Sec. 1401(2)]

Identical to the Senate bill. Amended Sec.

1511(a)(2). [Sec. 1401]

Identical to the House and Senate bills.

[Sec. 1401(2)]

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]

Definitions

CRS-41

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

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)]

Identical to the Senate bill. Amended Sec.

1511(a)(3). [Sec. 1401]

Identical to the House and Senate bills.

[Sec. 1401(3)]

No comparable provision.

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)]

Identical to the Senate bill. Amended Sec.

1511(a)(4). [Sec. 1401]

Identical to the House and Senate bills.

[Sec. 1401(4)]

No comparable provision.

Dairy Operation. An individual or

entity that shares in the pooling of

resources and a common ownership

structure, the risk of producing milk, and

contributes land, labor, management,

equipment, or capital to the dairy

operations. [1401(7)]

Dairy Producer. Similar to the Senate

bill, but excludes the pooling of resources

and common ownership criteria.

Amended Sec. 1511(a)(3). [Sec. 1401]

Dairy Operation. Similar to the House

bill, but replaces the term Dairy Producer

with Dairy Operation. [1401(5)]

No comparable provision.

Calculation of Average Feed Costs:

Corn and alfalfa hay prices are monthly

national average 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)]

Identical to the Senate bill. Amended Sec.

1511(b)(1). [Sec. 1401]

Identical to the House and Senate bills.

[Sec. 1402(a)]

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)]

Identical to the Senate bill. Amended Sec.

1511(b)(2). [Sec. 1401]

Similar to the House and Senate bills [Sec.

1402(b)(1)], but with the addition of a

specification on the timing of the

calculation—to be made as soon as

practicable using the full-month price of

the applicable reference month. [Sec.

1402(b)(2)]

No comparable provision.

Calculation of Actual Dairy

Production Margin for the Dairy

No comparable provision.

No comparable provision.

CRS-42

Enacted 2014 Farm Bill

(P.L. 113-79)

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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)]

Margin Protection Program (MPP) for Dairy Producers

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]

Dairy Production Margin Insurance

Program (DPMIP). Establishes a dairy

production margin insurance program but

is silent on timing. DPMIP includes a single

margin insurance program. Amended Sec.

1511(c) of the enacted 2008 farm bill.

[Sec. 1401]

Margin Protection Program (MPP)

for Dairy Producers. Establishes a

margin protection program for dairy

producers. MPP includes a single margin

protection program. [Sec. 1403]

No comparable provision.

Effective Date: This subtitle shall take

effect on October 1, 2013. [Sec. 1491]

Program Start Date: USDA shall

conduct the margin insurance program

beginning on October 1, 2013. Amended

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

Program Start Date: USDA shall

establish the margin protection program

no later than September 1, 2014. [Sec.

1403]

No comparable provision.

Duration: The margin protection

program ends on December 31, 2018.

[Sec. 1451]

No comparable provision.

Identical to the Senate bill. [Sec. 1409]

No comparable provision.

Eligibility for DPMPP. All dairy

producers are eligible to participate.

[Sec. 1412(a)]

Identical to the Senate bill. Amended Sec.

1511(d)(1). [Sec. 1401]

Eligibility for MPP. Identical to the

House and Senate bills, except for

program name change to MPP from

DPMPP. [Sec. 1404(a)]

No comparable provision.

Treatment of Multi-Producer Dairy

Operations. If a dairy operation

consists of more than one dairy

producer, all of the dairy producers shall

be treated as a single dairy producer for

purposes of participation in the margin

protection program, payment of related

fees and premiums, and participation in

Similar to the Senate bill, but with the

exclusion of participation in the dairy

stabilization program. Amended

Sec. 1511(d)(3). [Sec. 1401]

Treatment of Multi-Producer Dairy

Operations. If a dairy operation consists

of more than one dairy producer, all of

the dairy producers shall be treated as a

single dairy producer for purposes of

participation in the margin protection

program. [Sec. 1404(b)(2)]

CRS-43

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

the dairy stabilization program.

[Sec. 1412(b)(2)]

No comparable provision.

Treatment of Producers with

Multiple Dairy Operations. If a dairy

producer operates 2 or more dairy

operations, each dairy operation shall

separately register to DPMPP and only

those operations so registered shall be

covered by the margin protection and

dairy stabilization program. [Sec.

1412(b)(3)]

Similar to the Senate bill, but with the

exclusion of participation in the dairy

stabilization program. Amended

Sec. 1511(d)(3). [Sec. 1401]

Treatment of Producers with

Multiple Dairy Operations. If a dairy

producer operates 2 or more dairy

operations, each dairy operation shall

separately register to participate in the

margin protection program.

[Sec. 1404(b)(3)]

No comparable provision.

Timing for Registration: Existing

producers must make an election within

15 months after initiation of sign-up

period, whereas new dairy producers

must make an election during the oneyear period after their first milk is

marketed commercially. [Sec. 1412(c)]

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]

Timing for Registration: USDA shall

specify the manner and form by which a

participating dairy operation may register

to participate in the margin program.

[Sec. 1404(b)(1)]

No comparable provision.

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)]

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 DPMIP or not.

Transition from MILC to MPP: MILC

is extended temporarily, MILC is repealed

effective the earlier of: the date the new

Margin Protection Program (MPP, see

below) is operational or September 1,

2014. During the MILC extension period

the payment rate shall be calculated using

the pre-September 2013 parameters—i.e.,

45%, 2.985 million lbs., and $7.35/cwt.

[Sec. 1422]

No comparable provision.

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.

Participation in MPP and LGM:

Identical to the Senate bill, except for

program name change to MPP from

DPMPP. [Sec. 1404(d)]

CRS-44

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 DPMIP and may then receive

margin insurance retroactive to the

effective date, provided he subsequently

signs up for DPMIP. 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.

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)]

No comparable provision.

Annual administration fee. An annual

administration fee of $100 is required for

participation in MPP. [Sec. 1404(c)(2)]

No comparable provision.

Margin Insurance. Dairy producers are

offered an initial choice of BMP and an

annual election of SMP as described

below.

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.

Margin Protection Program. Similar

to the House bill but referred to as

margin protection rather than margin

insurance. In addition, coverage

percentage is expanded to not more than

90%, nor less than 25% (available in 5%

increments) of the Production History

of the dairy operation. [Sec. 1406(a)]

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 2-month average actual

dairy production margin (for a defined

consecutive 2-month period) is less than

CRS-45

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]

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

$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]

No comparable provision.

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)]

Annual Production History. Under

supplemental margin protection, the

CRS-46

No comparable provision.

No comparable provision.

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]

Production History. At the initial

registration, the production history is

equal to the highest annual milk

marketings of the dairy operation during

any one of the 3 calendar years 2011,

2012, or 2013. In subsequent years,

USDA shall adjust the production history

to reflect any increase in the national

average milk production. [Sec. 1405(a)]

Special provisions are made for new dairy

operations. [Sec. 1405(b)]

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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)]

No comparable provision.

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

2-month period. [Sec. 1415(g)]

No comparable provision.

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

CRS-47

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.

Identical to the House bill.

[Sec. 1406(b)]

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

The total payment equals the payment

rate x the selected coverage % x (the

production history divided by 6). [Sec.

1406(c)]

Producer Premiums. An annual

premium must be paid equal to the

product of the selected coverage %, the

annual production history, and the

premium rate per cwt. of milk.

[Sec. 1407(a)]

The premium rate schedule varies

based on scale of operations and the

selected coverage %. For the first 4 million

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 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)]

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.

lbs. of milk marketings the premium per

cwt. is $0.00 for $4.00 margin coverage;

$0.01 for $4.50; $0.025 for $5.00; $0.040

for $5.50; $0.055 for $6.00; $0.09 for

$6.50; $0.217 for $7.00; $0.30 for $7.50;

and $0.475 for $8.00. For calendar 2014

and 2015, all of the preceding premiums

(except the $8.00/cwt. coverage level) are

reduced by 25%. [Sec. 1407(b)]

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 $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]

In excess of 4 million lbs. the premium per

cwt. is: $0.00 for $4.00; $0.020 for $4.50;

$0.040 for $5.00; $0.10 for $5.50; $0.155

for $6.00; $0.29 for $6.50; $0.83 for

$7.00; $1.06 for $7.50; and $1.36 for

$8.00. [Sec. 1407(c)]

No comparable provision.

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)]

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 semiannual 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]

Identical to the Senate bill. [Sec. 1407(d)]

No comparable provision.

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)]

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]

Identical to the House bill. [Sec. 1407(c)]

No comparable provision.

Rules are established for failure of a

producer to pay the BPMP administrative

fee or SPMP premium. [Sec. 1416]

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]

Identical to the Senate bill. [Sec. 1408]

CRS-48

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 in the preceding year. [Sec. 1431]

The market stabilization program ends on

December 31, 2018. [Sec. 1451]

No comparable provision.

No comparable provision.

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

No comparable provision.

No comparable provision.

CRS-49

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 greater of:

(a) 96% of the Stabilization Program Base,

or (b) 92% of the actual milk marketings

for the month.

CRS-50

No comparable provision.

No comparable provision.

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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.

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]

No comparable provision.

No comparable provision.

No comparable provision.

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]

No comparable provision.

No comparable provision.

No comparable provision.

Suspension Thresholds of DMSP

Payment Reductions. DMSP is

suspended under any of the following

market conditions:

No comparable provision.

No comparable provision.

(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

CRS-51

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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. (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.

Once DMSP has been suspended, it may

not be resumed until at least 2 months

have passed (starting on the 1st day of the

following month), and the conditions of

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

No comparable provision.

Enforcement. Provisions for enforcing

DMSP are specified. [Sec. 1437]

No comparable provision.

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]

No comparable provision.

No comparable provision.

No comparable provision.

Study and Report on DMSP.

Mandates that the Office of the Chief

No comparable provision.

No comparable provision.

CRS-52

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 to

be submitted as a report to the House

and Senate Agriculture Committees by

December 1, 2017. [Sec. 1439]

Dairy Product Donation Program

No comparable provision.

No comparable provision.

No comparable provision.

Establishment of a Dairy Product

Donation Program (DPDP). No less

than 120 days after the dairy margin

program is operational, USDA shall

establish and administer a DPDP to: (1)

address low dairy margins, and (2) provide

nutrition assistance to low-income groups.

[Sec. 1431(a)]

No comparable provision.

No comparable provision.

No comparable provision.

DPDP Program Trigger. USDA shall

announce and undertake DPDP activities

whenever the actual dairy production

margin is $4.00/cwt. or less for each of

the immediately preceding 2 months.

[Sec. 1431(b)]

No comparable provision.

No comparable provision.

No comparable provision.

DPDP Program Activities. When

DPDP has been triggered, USDA shall

immediately purchase dairy products, at

prevailing market prices, until such time as

one of the termination conditions is met.

USDA shall consult with public and private

nonprofit organizations that feed lowincome populations, in order to determine

the types and quantities of dairy products

to purchase under the DPDP.

[Sec. 1431(c)]

CRS-53

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

The funds, facilities, and authorities of the

Commodity Credit Corporation shall be

available to USDA to implement and

administer the DPDP. [Sec. 1431(g)]

No comparable provision.

No comparable provision.

No comparable provision.

DPDP Program Termination. USDA

shall cease DPDP activities whenever any

one of the following conditions occurs:

(1) USDA has made DPDP purchases for

three consecutive months, even if the

margin < $4.00/cwt.;

(2) the margin > $4.00/cwt. for the

preceding month;

(3) when $3.00/cwt. < margin <

$4.00/cwt. for the preceding month and

either the U.S. cheddar cheese price >

105% of world price, or the U.S. non-fat

dry milk price > 105% of world price; or

(4) the margin < $3.00/cwt. for the

preceding month and either the U.S.

cheddar cheese price > 107% of world

price, or the U.S. non-fat dry milk price >

107% of world price.

For this section, USDA shall determine

the domestic and international prices of

cheddar cheese and non-fat skim milk

powder. [Sec. 1431(d)]

No comparable provision.

CRS-54

No comparable provision.

No comparable provision.

Distribution of DPDP Purchases.

USDA shall distribute, but not store, the

dairy products purchased under DPDP so

as to encourage domestic consumption by

diverting them to persons in low-income

groups as determined by USDA. USDA

shall use public and private nonprofit

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

organizations for distribution of DPDP

dairy products. [Sec. 1431(e)]

Any organization receiving dairy products

under the DPDP may not sell the

products back to commercial markets.

[Sec. 1431(f)]

No comparable provision.

No comparable provision.

No comparable provision.

DPDP Duration. The DPDP shall end

on December 31, 2018. [Sec. 1431(h)]

Rulemaking Requirements.

Standard rulemaking procedures

generally require federal agencies to

issue notices and take comments on

proposed rules. [5 U.S.C. 553(b)]

USDA is required to promulgate

regulations to address administrative and

enforcement issues in carrying out the

dairy production margin protection,

supplemental production margin

protection, and market stabilization

programs. [Sec. 1452(a)]

Special Rulemaking Requirements.

As reported by the House Agriculture

Committee, the DPMIP 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

(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]

USDA is required to promulgate

regulations to address administrative and

enforcement issues in carrying out the

margin protection program.

[Sec. 1410(a)]

No comparable provision.

Reconstitution of Dairy Operation.

USDA is required to promulgate

regulations to address administrative and

enforcement issues and prohibit

reconstitution of a dairy operation for

the purpose of the dairy producer

No comparable provision.

Reconstitution of Dairy Operation.

USDA is required to promulgate

regulations to address administrative and

enforcement issues and prohibit

reconstitution of a dairy operation for the

purpose of the dairy producer receiving

CRS-55

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

participating in and receiving payments

under the dairy margin program—basic

or supplemental, or the dairy stabilization

program. [Sec. 1452(b)(1)]

No comparable provision.

Enacted 2014 Farm Bill

(P.L. 113-79)

margin protection payments.

[Sec. 1410(b)]

Administrative Appeals. USDA is

required to promulgate regulations to

provide for administrative appeals of

USDA decisions that are adverse to

participants of the dairy production

margin protection, supplemental

production margin protection, and

market stabilization programs.

[Sec. 1452(b)(3)]

No comparable provision.

Similar to the Senate bill, but only with

respect to the margin protection program.

[Sec. 1410(c)]

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)]

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]

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]

Adopts the House provision, with

modification. Keeps Senate approach of

separate limits for peanuts. Eliminates

separate limits on various programs, and

applies a single limit to the total from

programs. Reinstates limits on marketing

loan gains and LDP, but not forfeiture.

— PLC, ARC, marketing loan gains and

loan deficiency payments, for the sum of

all covered commodities except peanuts:

$125,000.

— PLC, ARC, marketing loan gains and

loan deficiency payments, for peanuts:

$125,000 [Sec. 1603]

Payments are attributed to a person

by accounting for the direct and

Continues other payment limit provisions

such as direct attribution, with the

Similar to Senate bill, with additional

clarification for doubling the limits for

Continues other payment limit provisions

such as direct attribution. Addresses

Administrative Provisions

Payment Limitations

CRS-56

Prior Law/Policy—

Commodities Title

Senate-Passed 2013 Farm Bill

(S. 954)

House-Passed 2013 Farm Bill (H.R.

2642, including text of H.R. 3102)

Enacted 2014 Farm Bill

(P.L. 113-79)

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 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 firstlevel entity is reduced on a pro-rata

basis. [7 U.S.C. 1308 (e)-(h)]

exception of the definition of active

personal management (see below).

spouses, and definitions of legal entitles

[Sec. 1603].

active personal management (see below).

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, allowing

payment limits to be doubled. [7

U.S.C. 1308-1]

Deletes “active personal management”

from the definition of actively engaged in

farming (7 U.S.C. 1308-1(b)(2)).

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

Same as Senate bill, with minor

clarification differences. [Sec. 1603A]

Does not change the existing statute

regarding requirements to be actively

engaged in farming; that is, it continues to

allow active personal management.

However, it instructs the Secretary of

Agriculture to write new regulations that

define “significant contribution of active

personal management” (to more clearly

and objectively implement 7 U.S.C 13081(b)(2), recognizing past difficulties).

Specifically allows for different limits for

varying types of farming operations, based

on considerations of size, nature, and

management requirements of different

farming types, changes in the nature of

active personal management due to

advancements in farming practices, and

the impact of this regulation on the longterm viability of farming operations.

Regulations shall not apply to entities

made solely of family members. Conferees

intend for regional differences and a range

of activities performed to be considered.

CRS-57

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