House-Senate Conferees Approves Extensive Farm Assistance Package in Crop Insurance Bill

As part of the conference agreement on H.R. 2559, the Agricultural Risk Protection Act of 2000, Congress approved a $7.1 billion farm relief package. The farm relief bill contains a number of features:

Commodity Assistance

  • $5.45 billion in market loss payments to farmers, an amount equal to already-scheduled payments for FY 2000;
  • $500 million to oilseed producers;
  • $59.45 million for Perishable Agricultural Commodities Act(PACA) reserve fund and the inspection reserve;
  • $200 million to purchase specialty crops that experienced low prices in the 1998 and 1999 crop years, including apples, black-eyed peas, cherries, citrus, cranberries, onions, melons, peaches, potatoes and others;
  • $25 million to compensate growers for losses resulting from plum pox virus, Pierce's disease and canker;
  • $47 million to both peanut quota growers and "additional" growers;
  • $340 million to tobacco growers;
  • Recourse loan for honey producers on the 2000 crop of honey at 85% of the average price of honey during the preceding 5-crop year period;
  • Payments to wool producers of $0.20 per pound and mohair producers of $0.40 per pound for the 1999 marketing year; and
  • $100 million to producers and first handlers of cottonseed.

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Conservation Assistance
  • $10 million for the Farmland Protection Program and allows nonpoint conservation organizations to hold easements in those states that do not have a state defined farmland protection program; and
  • $40 million to provide soil, water and natural resource conservation assistance to farmers in the form of cost share or incentive payments; 

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Research Assistance
  • $15 million in FY 2001 to the Consortium for Agricultural Soils Mitigation of Greenhouse gases for carbon cycle research at the national, regional and local levels;
  • $3 million in FY 2001 for research on the extraction and purification of proteins from genetically altered tobacco that can be used as a vaccine for cervical cancer;
  • Provides a grant to the University of Nebraska for laboratories and equipment for research on soil science and forest health and management;
  • $3.5 million to expand research related to livestock production waste streams;
  • $5 million in FY 2001 for USDA to review and assess potential problems associated with livestock and poultry waste management systems
  • $14 million to USDA for the construction of a corn-based ethanol research pilot plant

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Other Assistance
  • $15 million to award competitive grants to eligible producers for the purpose of facilitating greater participation in markets for value-added agricultural commodities;
  • Directs USDA to purchase an additional $34 million of food commodities in FY 2000 and another $21 million of food commodities in FY 2001 for distribution to schools participating in the National School Lunch Program;
  • Requires USDA to make a loan in the amount of $10 million to the Texas Boll Weevil Eradication Foundation;
  • $7 million in FY 2001 for pseudorabies vaccination costs incurred by pork producers;
  • $6 million in FY 2001 on bovine tuberculosis in Michigan;
  • Increases the authorization from $20 million to $30 million for waste and wastewater systems for rural and native villages in Alaska;
  • Compensation to producers for the loss of cropland or pastureland due to unusual flooding;
  • Authorizes within USDA $49 million for each of fiscal years 2000 through 2005, and provides appropriated for biomass research and development under the general authority of the Secretary of Energy to establish a Biomass Research and Development Initiative; and
  • Includes a new "Plant Protection Act" which enhances the authority of USDA to regulate in interstate and foreign commerce the movement of any plant, plant product, biological control organism, or noxious weed.