Understanding the Farm Bill
Scott FaberEnvironmental Working Group
Understanding the Farm Bill
• Not really a “Farm Bill”• Helps Large Farmers, Not Family Farmers• Protects and Restores the Environment• Reduces Hunger• Support Healthy Diets
Understanding the Farm Bill
• Deep v Shallow Losses?• Revenue v Price-Based Safety Net?• Expands Crop Insurance
o Generous Subsidieso No Limitso No Transparencyo No Environmental Protections
Cumulative Cost of Subsidies
1995
1997
1999
2001
2003
2005
2007
2009
0
50,000,000,000
100,000,000,000
150,000,000,000
200,000,000,000
250,000,000,000
Insurance SubsidiesCommodity and Disaster Payments
Rising Cost of Insurance Subsidies
20012003
20052007
20092011
20132015
20172019
20210
1,0002,0003,0004,0005,0006,0007,0008,0009,000
10,000
A&O SubsidyPremium Subsidy
Insurance Subsidy v Direct Payments
Barley
Canola
Corn
Cotton
Grain So
rghum
Rice
Soyb
eans
Sunflowers
Wheat
0
20
40
60
80
100
Premium Subsidies Per Acre
Direct Payment Per Acre
Understanding the Farm Bill
http://farm.ewg.org/cropinsurance.php
The New York Times June 6, 2012
“When you can remove nearly all the risk involved and guarantee yourself a profit, it’s not a bad business decision,” said Darwyn Bach, a farmer in St. Leo, Minn.
“I can farm on low-quality land that I know is not going to produce and still turn a profit.”
Wetland Loss
1950s-1970s
1970s-1980s
1980s-1990s
1998-2004
2004-2009
-500000
-400000
-300000
-200000
-100000
0
100000Acres
Source: US Fish and Wildlife Service
Understanding the Farm Bill
• Senate Bill:o Ends Direct Payments, Counter Cyclical Paymentso Creates “Shallow Loss” Revenue Guaranteeo Expands Crop Insuranceo Cuts Conservation o Cuts Nutritiono New $ for Local/Healthy
Understanding the Farm Bill
• Senate Bill:o Reduces Insurance Premiums for Largest Farms o Requires Conservation Protections for Insurance
Recipientso Does Not Cap Insurance Subsidieso No Transparencyo Does Not Reduce Subsidies to Insurance
Companies
Understanding the Farm Bill
• House Bill:o Deeper Cuts to Nutritiono Deeper Cuts to Conservationo Price-Based Safety Neto Less Support for Local and Healthyo Looming Deadline
Understanding the Farm Bill
Contact Information:
Scott Faber(202) 939-9127(202) 384-4280