Summary of H.R. 1906

Agriculture, Rural Development, Food and Drug Administration, and

Related Agencies Appropriations Act, 2000

The House of Representatives passed the conference report on H.R. 1906, the 2000 USDA spending bill, on October 1, 1999. The Senate is expected to act on the measure on October 4 or October 5.

Total Spending: The conference agreement provides $69.0 billion in 2000 budget authority. This amount is $7.9 billion more than the 1999 spending level, $2.1 billion more than the President's request and $700 million above the Senate-passed bill and $8.3 billion above the House-passed bill.

Regular Appropriations: The bill funds most operations of the Department of Agriculture (except the Forest Service), the Food and Drug Administration, the Farm Credit Administration and the Commodity Futures Trading Commission. Some spending items are --

  • Food Safety and Inspection Service, $649 million;

  • Child Nutrition Programs, $9.6 billion;

  • Women, Infants and Children (WIC): $4.0 billion;

  • Food Stamps: $21.1 billion;

  • Farm Operating Loans: $200 million;

  • Conservation Operations: $661 million;

  • P.L. 480: $176 million in credit sales (Title I), $800 million in donations (Title II)

  • CFTC: $63 million;

  • Farm Services Agency: $795 million.

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    Emergency and Disaster Assistance: The bill adopts Senate emergency provisions with several additions.

    -- Crop Loss Assistance: The bill provides $1.2 billion to compensate for 1999 crop losses, on the same terms as disaster assistance for 1998 crops. Part of these funds can be used for (1) additional loan deficiency payments for rice, (2) recourse loans for honey and (3) recourse loans for mohair.

    -- Market Loss Assistance: The bill spends $5.5 billion for Market Loss Assistance (MLA) payments, on the same terms as similar payments made in 1998. The payments will be equivalent to about 100% of the 1999 transition payment made under the Agricultural Market Transition ("Freedom to Farm") Act.

    -- Peanuts: Producers will get payments equal to 5% of the quota loan rate or additional loan rate, in proportion to their production of quota and additional peanuts.

    -- Sugar: The marketing assessment on sugar producers is suspended during 2000 and 2001.

    -- Tobacco: The bill requires $328 million to be paid to tobacco producers whose production quotas were reduced.

    -- Oilseeds: Oilseed producers will receive $475 million in payments, in proportion to a formula based on oilseed acreage in 1997 or 1998 and county or individual yields.

    -- Livestock and Dairy: The bill sets aside $325 million for livestock and dairy producers, as compensation for economic losses. It requires that $125 million be paid to dairy producers. The bill also extends the dairy price support program through 2000.

    -- Upland Cotton: The Step 2 cotton export program is reinstated, at a cost of $200 million.

    -- Advance Transition Payments: USDA will be able to make "Freedom to Farm" transition payments on October 1 for the remainder of the FAIR Act.

    -- Commodity Certificates: The bill authorizes loan deficiency payments to be made with certificates.

    -- Payment Limitations: Total marketing loan gains or loan deficiency payments will be subject to an expanded payment limit of $150,000, double the present limitation.

    -- Crop Insurance: The bill provides $400 million to reduce producers' premiums for crop insurance on 2000 crops.

    -- Mandatory Livestock Reporting: The livestock price reporting bill approved by the Senate Agriculture Committee is included in the conference report.