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Senate farm bill cuts spending, direct pay
By KEVIN WALKER
Michigan Correspondent

WASHINGTON, D.C. — Last week the U.S. Senate passed a vote on the farm bill that will help it progress toward a final vote and eventual passage into law. As it stands now, the farm bill would cut spending by $23.6 billion during the next 10 years, compared to the previous farm bill.

The vote, called a cloture vote, was 90-8 to advance the farm bill, otherwise known as S. 3240.

“The overwhelmingly positive vote on the floor reaffirms that senators understand the importance of passing the 2012 farm bill this year,” said Garry Niemeyer, president of National Corn Growers Assoc. (NCGA). “The National Corn Growers Assoc. cheers the strong bipartisan vote and appreciates the work of Senators (Debbie, D-Mich.) Stabenow and (Pat, R-Kan.) Roberts on this legislation.
“The 2012 farm bill creates the reforms needed to not only reduce the federal deficit but ensure a positive beginning for the next generation of America’s farmers. We thank the Senate for their support and urge debate to begin quickly.”

While commodity groups seem generally pleased with the direction of the farm bill, other groups point out what they see as problems. Maplight, for example, says direct payments to farmers, conservation and food stamps “lose” while soy, cotton and biofuel “win” from the legislation. Maplight is a not-for profit group whose mission statement is to shine a light on the influence of political campaign contributions.

According to the group, between 2001-11 livestock interests contributed more than $8 million to current members of the U.S. House and Senate. Wheat, corn, soybeans and cash grain interests contributed $1.4 million during the same time frame and cotton growers contributed $1.9 million.

There are dozens of amendments to the farm bill that will be considered once the legislation moves to the floor this week. One amendment, by Rep. Kirsten Gillibrand (D-N.Y.), would strike the cuts to the Supplemental Nutrition Assistance Program (SNAP), which would amount to $4.5 billion over 10 years, according to Maplight. This would be offset through cuts to the crop insurance program. The Gillibrand amendment would also add funding for the fresh fruit and vegetable program.

“When times are tough, it’s time for the feds to step in,” said John Doggett, vice president of public policy at the NCGA. “Forty-six million Americans live under the poverty line right now. A lot of people are depending on the SNAP program. If we want to get a bill that’s successful, we need to include a lot of disparate interests.”
But Doggett said the cuts are balanced. Stabenow and Roberts “worked hard” to get a balance regarding different interests, he said.

“When (Stabenow) approaches the subject of food stamps, she knows it affects a lot of people in Michigan,” he added. “They approached this with a lot of thought to having a balanced commitment. We need to get a farm bill done.”

According to Doggett, SNAP recipients would not be affected by the changes, but according to the Congressional Budget Office nearly 500,000 households would have their benefits reduced by an average of $90 per month under the new plan. The plan would also cut out heating and cooling assistance to some of the most needy.
Other major spending changes from the previous farm bill include: ending direct payments to farmers for many crops, but adding a larger crop insurance program, saving $19.8 billion over 10 years, and adding $5.1 billion to crop insurance programs. It would create a new system of commodity payments under which soybean farmers are expected to receive $1.3 billion more in payments, while almost all other crops would receive less over 10 years.
It also would establish new insurance programs for cotton and peanuts, costing $3.2 billion and $239 million, respectively. It would make popcorn a crop eligible for benefits, cut conservation programs by $6.4 billion and add $647 million to agricultural research, extension and related programs.

It would also add $780 million for energy programs, such as biofuel, and add $360 million for horticulture programs, which include specialty crops and promotion of farmers’ markets. It also would provide $1.5 million in 2013 for the sheep production and marketing grant program.
6/13/2012