Below is a comparison of existing law to the Farm Bill that passed in the House of Representatives on October 5, 2001 and the Farm Bill that passed the Senate on February 13, 2002.  This comparison focuses on the Commodity Title and Conservation Title

A conference committee will meet in the coming weeks to work on the differences in the two versions of the bill.  In some areas, these differences are quite large.

One key difference to consider when comparing the House and Senate bills is that the House bill is a 10-year bill while the Senate version is a 5-year bill.

Click here for the full text of the House version of the Farm Bill - HR 2646, The Farm Security Act of 2001.

Click here for the full text of the Senate version of the Farm Bill - S. 1731.

To view the proposals submitted by farm groups earlier this year, click here .
 

Existing Law	House Farm Bill HR 2646	Senate Farm Bill S. 1731
COMMODITY TITLE
Counter-Cyclical Support Payments
The 1996 Farm Bill provides counter cyclical income support through marketing loan gains and LDP's. The only direct counter cyclical payments come through LDP's.  Congress has also provided support in recent years through a series of ad hoc disaster assistance payments. Prior to the current law, the 1995 Farm Bill included the following target prices: Target Price  Wheat: $4.00  Corn: $2.75  Grain Sorghum: $2.61 Barley: $2.36  Oats: $1.45  Upland Cotton: $0.729  Rice: $10.71  Soybeans: none  Minor Oilseeds none	Direct counter-cyclical payments on a commodity-by-commodity basis would be provided. Counter-cyclical payments would be made to producers if prices for a commodity fell below a certain level. Payments would be calculated as follows: (Target Price) - (Fixed Payment) - (Higher of: Marketing loan rate or National twelve-month season average price received by producers). Payments would be made on 85% of a producer's base. Target prices: Wheat: $4.04  Corn: $2.78  Grain Sorghum: $2.64 Barley: $2.39  Oats: $1.47 Upland Cotton: $0.736  Rice: $10.82  Soybeans: $5.86  Minor Oilseeds $0.1036	Payment rate for each crop would equal:  (Income Protection Price) - (Direct Payment) - (Higher of 5-month avg. price or loan rate)   Producers would receive counter-cyclical payments equal to: (base acres)X(program yield)X(payment rate)   Payments would be made on 100% of a producer's base. Income Protection Prices: Wheat $3.45 Corn $2.35 Grain Sorghum. $2.35 Barley $2.20 Oats $1.55 Upland cotton $0.68 Rice $9.30  Soybeans $5.75 Minor oilseeds $.105 *An amendment offered by Senator McConnell and passed by the Senate reduces these rates - but in each case by less than one cent (the benefits are diverted to nutrition programs).
Nonrecourse Loans
Loan Rates
Loan rates are set, generally, at not less than 85% of the 5-year Olympic average price for the commodity and not more than the paplicable loan rate cap.	Formulas are maintined.	Formulas are eliminated, and firm loan rates are set.
2001 Marketing Loan Rates Wheat: $2.58 Corn: $1.89 Grain Sorghum: $1.71 Barley: $1.65* Oats: $1.21* Upland Cotton: $0.5192 Rice: $6.50 Soybeans: $5.26 Minor Oilseeds $0.093 *set by formula taking into account the feed value relative to corn	Proposed marketing loan rate caps: Wheat: $2.58 Corn: $1.89 Grain Sorghum: $1.89 Barley: $1.65 Oats: $1.21 Upland Cotton: $0.5192 Rice: $6.50 Soybeans: $4.92 Minor Oilseeds $0.087	Proposed marketing loan rates: Wheat: $3.00 Corn: $2.08 Grain Sorghum: $2.08 Barley: $2.00 Oats: $1.50 Upland Cotton: $0.55 Rice: $6.50 Soybeans: $5.20 Minor Oilseeds $0.095 Dry Peas: $6.78 Lentils: $12.79 Chickpeas: $17.44 *An amendment offered by Senator McConnell and passed by the Senate reduces these rates - but in each case by less than one cent (the benefits are diverted to nutrition programs).
Decoupled Fixed Payments
The 1996 Farm Bill provided transition payments for eligible commodities through production flexibility contracts. Payments are based on contract acreage and past production and are "decoupled" from current production. Oilseeds were not eligible for these payments. The 1996 Farm Bill set up a payment rate schedule that was scheduled to decrease payments each year from 1996 through 2002. Payments are made on 85% of crop base and payment yields have been frozen since 1985.	Continuation of transition payments equal to the amount provided in 2002. Payments would continue to be made on 85% of base. The 2002 scheduled payment levels are: Wheat: $0.53 Corn: $0.30 Barley: $0.25 Grain Sorghum: $0.36 Oats: $0.025 Upland Cotton: $0.0667 Rice: $2.35 Oilseeds would be eligible at the following rates: Soybeans: $0.42 Minor Oilseeds $0.0074	Payments would be made on 100% of base. Direct Payment Rates are reduced over the 5-year life of the bill as follows: 2002/03 2004/05 2006 Wheat: $0.45 $0.225 $0.113 Corn: $0.27 $0.135 $0.068 Barley: $0.20 $0.10 $0.05 Grain Sorghum: $0.31/0.27 $0.135 $0.068  Oats: $0.05 $0.025 $0.013 Upland Cotton: $0.13 $0.065 $0.0325  Rice: $2.45 $2.40 Soybeans: $0.550 $0.275 $0.138 Minor Oilseeds $0.010 $0.005 $0.0025
Payment Base
The 1996 Farm Bill established "Contract Acreage" as a base for payments. The contract acreage was equal to the crop acreage bases that would have been in effect for each producer in 1996 under the previous law. That base was generally the average acres planted and considered planted to each crop for the preceding 5 crop years (1991-1995). For cotton and rice, the basis was the average of the previous 3 crop years (1993-1995).	Producers would be able to update base acres if so desired. Under the proposal, payment base may be calculated using: •current AMTA acres or •avg. acres planted to an AMTA contract crop and/or oilseed for 1998-2001   Payment base for decoupled and counter-cyclical payments are 85% of base	Base would be determined using one of two options: 1998-2001 avg. planted acres and prevented planted acres or Current AMTA acres plus 5-year soybean planting   Producers choosing to retain current base acres would also retain current program yields.   Producers electing to update bases would also be able to update program yields to the greater of: 1998-2001 avg. yield per harvested acre excluding any year the crop was not planted and, at the producer's option, one additional year, or the farm program payment yield in effect for the 2002 crop year
Planting Flexibility
Any commodity can be grown on acreage except, in most cases, fruits and vegetables	Flexibility provisions would be maintained	Flexibility provisions would be maintained
Payment Limits
Payment limitations are set at $40,000/year in AMTA payments and $75,000/year in marketing loan gains and LDP payments in the current Farm Bill. The payment limit for marketing loan gains and LDP's was raised to $150,000 for the 1999 crop year by the 200 Ag Appropriations bill and again for the 2000 crop year by the 2001 Ag Appropriations bill.	Payment limitations are increased to $50,000 for fixed payments, $150,000 for marketing loan gains and LDP payments, and $75,000 for counter-cyclical payments	Eliminates the Three-entity Rule and replaces it with a system designed to limit any individual or entity to one total payment with limits of $75,000 in direct and counter cyclical payments and $125,000 in loan gains or LDP's.  An additional $50,000 in payments would be allowed for qualifying married couples.  Sets up an income cap of $2.5 million.  Any individual or entity with a three-year average income over $2.5 million would not be eligible for any payments.  Also includes provisions that would include gains from commodity certificates in with loan gains and LDP's as part of the limit and makes several changes to the "actively engaged in farming" requirements.
Other Commodities
Peanuts
Production for the domestic edible peanut market is limited to a national quota of 1.18 million tons. Additional peanuts are not limited but may be sold only for export or crushing. Quota can be sold or leased by farmers within a state. Quota peanut prices are supported by a nonrecourse loan at not less than $610/ton. Additional peanuts are supported by a loan rate currently set at $132/ton. Since the government sets the market price through a combination of production controls and a loan program, there are no direct government payments.	Reforms the peanut program to make it similar to other commodities: Fixed decoupled payment = $.018/lb. Counter-cyclical target price = $480/ton Marketing loan rate = $350/ton   Terminates the quota program (and the restrictions on selling certain peanuts only for export or crushing) and provides a $0.10/lb payment to quota holders for five years.	Reforms the peanut program to make it similar to other commodities: Fixed decoupled payment = $.018/lb. Counter-cyclical target price = $520/ton Marketing loan rate = $400/ton   Terminates the quota program (and the restrictions on selling certain peanuts only for export or crushing) and provides a $0.11/lb payment to quota holders for five years.
Sugar
Nonrecourse loans are available with loan rates fixed at $0.18/lb. for raw cane sugar & $0.229/lb. for refined beat sugar . A one cent penalty is imposed by the CCC on any sugar that is forfeited under the nonrecourse loan program. Sugar marketing assessments are set at 1.375 percent of the loan rate for cane and 1.47425 percent of the loan rate for beets.	extends current price supports and forfeiture penalty eliminate marketing assessment on sugar reduce the CCC interest rate on price support loans authorize a Payment-in-Kind program reestablish the non-net-cost concept feature of the program provides the Secretary authority to implement allotments for sugar producers	extends current price supports eliminates forfeiture penalty eliminates marketing assessment reduces CCC interest rate on price support loans authorizes Payment-in-Kind program reestablishes no-net-cost feature provides Secretary with authority to implement allotments on domestic sugar
Dairy
The current dairy price support program is set at $9.90/cwt.	Extends the milk price support program at $9.90/cwt	extends milk price support program at $9.90/cwt adds importer assessments to the Dairy Promotion and Research Program Creates two separate "Dairy Market Loss Assistance" programs.             For most states, the program would provide payments to dairy producers based on the following formula: Payment Quantity x Payment Rate Payment Quantity = milk produced & marketed during a given quarter Payment Rate = 40% x (avg. price of milk during the same quarter over the last 5 yrs - avg. price during the applicable quarter) A separate payment program is created for the Northeast (DE, ME, MA, MD, NH, NJ, NY, PA, RI, VT, and WV).  For those states, a producer would receive monthly payments based on the same formula, except that: Payment Quantity = milk produced & marketed during the applicable month Payment Rate = 45% x ($16.94/cwt. - Class I price in Boston under the applicable milk marketing order) For both programs, payment quantity would be limited based on a "milk marketing base" formula that is based on historic production
Wool and Mohair
Wool and Mohair price supports were terminated in 1996.	Creates a marketing assistance loan program similar to other commodities. Loan rate =  •$1.00/lb. for graded wool •$0.40/lb. For nongraded wool •$4.20/lb for mohair	Creates a marketing assistance loan program similar to other commodities. Loan rate =  •$1.00/lb. for graded wool •$0.40/lb. For nongraded wool *The marketing loan for mohair was amended out of the Senate bill.
Honey
Honey loan programs were terminated in 1996.	Creates a marketing assistance loan similar to other commodities. Loan rate = $0.60/lb.	Creates a marketing assistance loan similar to other commodities. Loan rate = $0.60/lb.
Disaster Assistance
Neither the House bill nor the committee version of the Senate bill contained short-term emergency assistance provisions, but a floor amendment added the following provisions to the Senate bill: · $1.8 billion for emergency income loss assistance to be administered in a similar manner as the assistance provided in the 1999 and 2001 Ag Appropriations bills · $500 million for the Livestock Assistance Program (LAP) $100 million for market loss assistance for apple producers
CONSERVATION TITLE
Conservation Reserve Program (CRP)
Provides farmers with annual payments through a multi-year contract for converting environmentally sensitive land out of production to vegetable cover. CRP enrollment is currently capped at 36.4 million acres	reauthorizes CRP through 2011 and increases enrollment to 39.2 million acres. gives the Secretary authority to permit haying a grazing and harvesting of biomass for energy and on CRP acreage with a reduction in rental rate. allows for use of wind turbines	increases enrollment to 41 million acres. authorizes Wetlands Pilot Program opens enrollment in continuous program to non-crop lands allows enrollment of entire strip of land into continuous enrollment if over 50% of the tract is eligible to be enrolled allows the Secretary to extend hardwood tree contracts for up to 15 years allows the Secretary to purchase long-term and permanent easements (up to 3 million acres) under CRP allows "economic use" (haying and grazing with an approved conservation plan and wind turbines)
Environmental Quality Incentives Program (EQIP)
Provides funding and technical assistance to eligible producers for soil and water projects. Funding for EQIP is currently set at $200 million/year with half of that amount targeted to livestock water quality	raises annual EQIP funding to $1.025 billion for FY'02-'03; $1.2 billion for FY '04-'06; $1.4 billion for FY '07-'09; and $1.5 billion for FY '10-'11. livestock producers receive 50% of annual funding funding created in EQIP to address groundwater and surface water conservation issues, including cost share for more efficient irrigation systems. Annual funding set at $30 million for FY '02, $45 million for FY '03, and $60 million for FY '04-'11. gives the Secretary authority to implement an incentives payment program for producers who implement certain land-management practices.	funds the program at the following levels: FY02: $500 million; FY03: $1.3 billion; Y04: $1.45 billion; FY05: $1.45 billion; FY06: $1.5 billion; FY07: $850 million. allows up to 5% of funds to be used for special projects in watersheds and other areas of regional significance removes eligibility caps limits individual producers to $150,000 in total payments and $30,000 in one year reduced contract length to 3-10 years allows cost-share payments from other private and non-federal sources allows up to $100 million annually for conservation innovation grants
Wetlands Reserve Program (WRP)
Provides financial support for wetlands restoration through permanent easements, 30-year easements, and wetlands restoration agreements.	Reauthorizes WRP with an additional 150,000 acres/year	Requires the Secretary to enroll up to 250,000 acres annually to the maximum extent possible Allows the Secretary to enroll up to 25,000 acres annually through the Wetlands Reserve Enhancement Program
Wildlife Habitat Incentives Program (WHIP
Provides cost sharing for the development and maintenance of wildlife habitat	Funds WHIP annually at $30 million in FY '03,'04; $35 million in FY '05, '06; $40 million in FY '07; $45 million in FY '08, '09; and $50 million in FY '10, '11.	increases funding to $100 million annually: FY02 - $50 M; '03 - $225 M; '04 - $275 M; '05 - $325 M; '06 - $355 M; '07 - 50M pilot program allows Secretary to use up to 15% of funds to enroll lands for critical habitat or species for 15 years or longer requires Secretary to ensure that at least 15% of funds for cost-share restoration are directed toward restoration of lands for threatened or endangered species
Farmland Protection Program (FPP)
Provides funding to help keep farmland that is subject to development pressures in agricultural use.	Reauthorizes of FPP at $50 million annually	increases annual funding to: FY02 - $150 M; '03 - 250M; '04 - $400 M; '05 - $450 M; '06 - $500 M; and '07 - $100 M allows non-government entities to participate and purchase easements allows up to $10 million annually for Farm Viability Grants
Grassland Reserve Program
No existing Program	authorizes 2 million acres (1 million to native grass and 1 million to restored grasslands). 2/3 of funding to be used for 10, 15, and 20 year contracts 1/3 of funding for 30 year and permanent contracts	new program to purchase permanent and long-term easements on up to $1 million acres of grass and prairie lands that are subject to development pressure permits grazing and haying in a manner consistent with protecting plants and wildlife requires Secretary to provide cost-share and technical assistance for carrying out practices to restore grasslands
Farmland Stewardship and Conservation Security Programs
No current program	Farmland Stewardship Program Establishes a Farmland Stewardship Program that allows the Secretary to implement or combine together features of the Wetlands Reserve Program, Wildlife Habitat Incentives Program, Forest Land Enhancement Program, Farmland Protection Program, or other conservation programs at the Federal, State, or local level into one agreement with owners or operators of eligible land.   Funding for the agreements would be provided by funds used to carry out the specific conservation programs listed in the agreement and from matching funds made at the State or local level.  The Secretary would be authorized to administer an agreement in partnership with other agencies (Federal, State, or local) whose programs are incorporated into the agreement.  The Secretary would also be able to authorize other government agencies to act as contracting agencies on behalf of the Secretary in administering these agreements.	Conservation Security Program Establishes a Conservation Security Program that, with CCC funds, provides incentive payments to farmers for maintaining and adopting conservation practices on working lands. Under the Conservation Security Program, producers would develop and submit a conservation plan to the Secretary. The plan would include conservation practices that fall within one of three tiers provided in the program. The producer would then enter into a conservation security contract that would provide a base payment for the conduct of practices designated in the conservation plan. Producers may also be eligible for bonus payments for the implementation of additional conservation measures.
Other Conservation Issues
	provides $150 million in funding for Small Watershed Dam Restoration protection against release of confidential information by the agency for producers participating in conservation programs creates an advisory council for the Upper Mississippi River Stewardship Initiative and a federal interagency working group to coordinate nutrient and sediment reduction efforts under the initiative	permanently authorizes Resource Conservation and Development Program provides $15 million/year for Watershed Risk Reduction provides $5 million/year for Great Lakes Basin Program for Soil Erosion and Sediment Control reauthorizes Conservation of Private Grazing Land Initiative (CPGL)

This page was last updated on February 22, 2002.