2008 Farm Bill expires - KNOE 8 News; KNOE-TV; KNOE.com |

2008 Farm Bill expires

Posted: Updated:

WASHINGTON, D.C., (KNOE 8 News) - The 2008 law governing many of the nation's farm policies expired this past Sunday but the replacement bill, the 2012 Farm Bill) is bottled up in Congress.

The House and Senate Agriculture Committees both passed their versions of the new farm bill, but the full House was unable to do so. While expiration of farm bill program authorities has little or no effect on some important programs, it has terminated a number of important programs and will very adversely affect many farmers and ranchers, as well as ongoing market development and conservation efforts.  Following is a summary of these impacts.

Programs Affected by Expiration of the 2008 Farm Bill

Dairy producers will face considerable challenges. The Milk Income Loss Contract (MILC) program expired on Sunday. That program compensated dairy producers when domestic milk prices fall below a specified level. Without a new farm bill, dairy farmers are left with uncertainty and inadequate assistance. While milk prices are high enough that the price support program doesn't kick in; unfortunately, there is no other safety net to help battle the highest feed costs on record.

Many farmers, ranchers and agribusiness or agricultural processors benefit from the Foreign Market Development Program (FMD). FMD is a cost-sharing trade promotion partnership between USDA and U.S. agricultural producers and processors. The program pools technical and financial resources to conduct overseas market development.  FMD helps maintain and increase market share by addressing long-term foreign market import constraints and by identifying new markets or new uses for the agricultural commodity or product in the foreign market. That funding, as well as specific funding for personnel to run the program at USDA, will run out at the end of October.  Since 31 percent of our gross farm income comes from exports which also make a positive contribution to our Nation's trade balance, trade promotion is an important part of our safety net. Other countries will most certainly take advantage of the fact that the program is rendered inoperable and will do what they can to steal our markets – and everyone knows, the hardest market to get is the one you lost.

About 6.5 million acres rotates out of the Conservation Reserve Program (CRP) this year.  While current contracts are protected, no new signup will be allowed for CRP or the Conservation Reserve Enhancement Program (CREP).  Both of these programs are voluntary land retirement programs that helps agricultural producers protect environmentally sensitive land, decrease erosion, restore wildlife habitat, and safeguard ground and surface water. In addition, there cannot be sign up for the Wetlands Reserve Program or the Grasslands Reserve Program.
 
Both versions of the new Farm Bill contain funding for the disasters facing the livestock industry due to the drought. However, programs are currently only available for lack of forage, as well as death of animals.

Most producers of fruits and vegetables do not have a safety net, but instead receive funding to augment the competitiveness of specialty crops through programs that enhance trade, promote cutting-edge research, and implement on- the-ground projects to protect crops from disease and invasive species.  Funding for these programs ended when the Farm Bill expired.

Numerous other programs, including energy, agricultural research, rural development and funding for new and beginning farmers could be added to this list of affected programs. The bottom line is that while expiration of the Farm Bill causes little or no pain to some, others face significant challenges.

Programs Not Affected by Expiration of the 2008 Farm Bill

Almost 80 percent of the Farm Bill's cost is for nutrition programs – primarily the Supplemental Nutrition Assistance Program (SNAP), formerly commonly known as food stamps. Most recipients of nutrition program benefits will not be affected because the SNAP program did not need to be extended.  Funds for nutrition assistance programs will continue to be provided to those Americans without issue.

Farmers and ranchers who manage their risks using the farm bill's crop insurance provisions will be unaffected because, like SNAP, those programs don't expire. Nor do some of the conservation-related programs. In addition, most commodity-specific programs are largely covered by the 2008 Farm Bill since it applies to the 2012 crop year, rather than the 2012 fiscal year.  The main challenge, however, will be in planning for 2013. This includes lining up the critical financial assistance needed from lending institutions which prefer, if not demand, to see business plans presented in black and white. That will be difficult when producers don't know when to expect a new Farm Bill – or what type of financial safety net is likely to be included in that bill.

Congress will return in mid-November for a lame-duck session prior to final adjournment in December.  There is a push for the first order of business for the House of Representatives be to consider a new Farm Bill.
  • Most Popular StoriesMost Popular StoriesMore>>

  • 28 Monroe area businesses cited for selling to minors

    28 Monroe area businesses cited for selling to minors

    Tuesday, July 29 2014 11:51 AM EDT2014-07-29 15:51:09 GMT
    Baton Rouge, La. (KNOE 8 News ATC) - Agents with the Office of Alcohol and Tobacco Control recently conducted compliance checks at 173 businesses in the Monroe and West Monroe areas. During those compliance checks, 28 of the businesses, which consist of area restaurants, bars and convenience stores, were caught selling alcohol and tobacco products to minors.
    Baton Rouge, La. (KNOE 8 News ATC) - Agents with the Office of Alcohol and Tobacco Control recently conducted compliance checks at 173 businesses in the Monroe and West Monroe areas. During those compliance checks, 28 of the businesses, which consist of area restaurants, bars and convenience stores, were caught selling alcohol and tobacco products to minors.
  • Two arrests, officer tazed at Watermelon Festival

    Two arrests, officer tazed at Watermelon Festival

    Monday, July 28 2014 4:41 PM EDT2014-07-28 20:41:59 GMT
    FARMERVILLE, La. (KNOE 8 News UPSO) - Union Parish sheriff’s deputies made at least two arrests over the Watermelon Festival weekend, one that involved a deputy getting tazed.
    FARMERVILLE, La. (KNOE 8 News UPSO) - Union Parish sheriff’s deputies made at least two arrests over the Watermelon Festival weekend, one that involved a deputy getting tazed.
  • Union Parish School District employees get a raise

    Union Parish School District employees get a raise

    Tuesday, July 29 2014 11:17 PM EDT2014-07-30 03:17:56 GMT
    FARMERVILLE, La. (KNOE 8 News) - It's Christmas in July for the Union Parish School Board employees. At this month's school board meeting, the board voted to give every employee a raise. 
    FARMERVILLE, La. (KNOE 8 News) - It's Christmas in July for the Union Parish School Board employees. At this month's school board meeting, the board voted to give every employee a raise. 
  • West Monroe man arrested for meth possession

    West Monroe man arrested for meth possession

    Sunday, July 27 2014 9:09 PM EDT2014-07-28 01:09:38 GMT
    WEST MONROE, La. (KNOE 8 News) - West Monroe Police arrested a man early Sunday morning for possession of drugs.
    WEST MONROE, La. (KNOE 8 News) - West Monroe Police arrested a man early Sunday morning for possession of drugs.
  • McDonald's could lose "franchise" protection

    McDonald's could lose "franchise" protection

    Wednesday, July 30 2014 12:17 PM EDT2014-07-30 16:17:44 GMT
    (AP) - Under pressure from a barrage of lawsuits seeking fair treatment and wages, McDonald's could be on the verge of losing one of its main protections.
    (AP) - Under pressure from a barrage of lawsuits seeking fair treatment and wages, McDonald's could be on the verge of losing one of its main protections.
  • 17 hurt after multi-vehicle Madison Parish wreck

    17 hurt after multi-vehicle Madison Parish wreck

    Tuesday, July 29 2014 3:16 PM EDT2014-07-29 19:16:12 GMT
    DELTA, La. (AP) - A multiple-vehicle accident on the Mississippi River bridge connecting Madison Parish, Louisiana, and Warren County, Mississippi, has sent 17 people to a hospital, most with minor injuries.
    DELTA, La. (AP) - A multiple-vehicle accident on the Mississippi River bridge connecting Madison Parish, Louisiana, and Warren County, Mississippi, has sent 17 people to a hospital, most with minor injuries.
  • Passenger dies on US Airways flight to Phoenix

    Passenger dies on US Airways flight to Phoenix

    Wednesday, July 30 2014 12:18 PM EDT2014-07-30 16:18:01 GMT
    PHOENIX (AP) - Authorities in Phoenix say a passenger has died on a US Airways flight to Phoenix from Honolulu after a suffering an unknown medical emergency.
    PHOENIX (AP) - Authorities in Phoenix say a passenger has died on a US Airways flight to Phoenix from Honolulu after a suffering an unknown medical emergency.
  • Top Ebola doctor dies from the virus

    Top Ebola doctor dies from the virus

    Wednesday, July 30 2014 12:33 PM EDT2014-07-30 16:33:58 GMT
    Patrick Sawyer had one stop to make before heading home to Minnesota to celebrate his daughters' birthdays: a conference in Lagos, Nigeria.
    Patrick Sawyer had one stop to make before heading home to Minnesota to celebrate his daughters' birthdays: a conference in Lagos, Nigeria.
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KNOE. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.