There may be a new farm bill in the near future. Stu Ellis, author at Farmgate blog, says that farmers could see a 2014 Farm Bill in the next 10 days or so. Without knowing what the bill will fully entail, the Conference Committee will have their work cut out for them to compromise and get a new farm bill on the table for farmers in the U.S.
According to Ellis’ blog, the following are among the issues that still need to be compromised:
- Existing commodity programs – direct and counter-cyclical, ACRE, and SURE – are eliminated in both Farm Bill proposals. The Senate version replaces these programs with the combination of both price supports and a shallow-loss revenue program. The House version would offer producers the choice between price supports with updated target prices for eligible commodities, or a county-level shallow-loss revenue program.
- In addition, a new crop insurance program – the Supplemental Coverage Option - is created in both versions.
- The price support programs in the Senate and House Farm Bills differ along two important dimensions.The Senate price support program bases payments on historical base acreage and sets the reference price levels equal to a percentage of the rolling average of national marketing year average prices. Thus, reference prices would adjust with the market. In contrast, the House price support program would continue to use fixed price support levels and base payments on planted acreage. Thus, price support payments would be tied to, or “coupled” with, farmers’ production decisions.
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