The Agricultural Act of 2014

Outline Timeline Budget Policy Issues Commodity Title Risk Management Options Crop Insurance Conservation Programs Questions

Timeline of the 2014 Farm Bill Senate’s 1st Hearing on Farm Bill May year extension of most Farm Bill Programs Jan Farm Bill discussions in Joint Select Committee for Deficit Reduction “Super Committee” Nov Senate Cmte Markup of 2012 Farm Bill House Cmte Markup of 2012 Farm Bill April Senate Passage of 2012 Farm Bill June Senate Cmte Markup of 2013 Farm Bill House Cmte Markup of 2013 Farm Bill May Senate Passage of 2013 Farm Bill June House Passage of 2013 Farm Bill (No nutrition title) July Today 2011 House Passes Conference Report Senate Passes Conference Report Jan 2014 Feb 7, 2014: President Obama Signs Farm Bill into law.

Farm Bill Budget $23 Billion in Net Savings $18 billion saved in Commodity Programs $8 billion saved in Nutrition $6 billion saved in Conservation $5 billion added to Crop Insurance $3 billion added to Energy, Research, Spec. Crops, etc.

Commodity Title Eliminates Direct Payments, Counter-cyclical Payments, and the ACRE Program Allows producers to choose between three new price/revenue loss programs Continues marketing loan program Continues the sugar program Adds new margin protection program for dairy producers Makes livestock disaster assistance programs permanent

Focus On Risk Management Producers make a 1-time irrevocable choice between: Price Loss Coverage (PLC) County-level Ag Risk Coverage (ARC-County) Individual-level Ag Risk Coverage (ARC-Individual) Note: this choice is commodity-by-commodity and farm-by-farm, except for ARC- Individual.

All programs pay on a percentage of base acres: Producers will have the opportunity to reallocate their existing base acres Producers will have the opportunity to update their base yields ARC-County and PLC will pay on 85% of base acres ARC-Individual will pay on 65% of base acres Payment Acres

Invests over $5 billion into Crop Insurance STAX for Cotton Addresses Declining APH Yields Creates new Supplemental Coverage Option Support for Young and Beginning Farmers Expands crop insurance to underserved fruit and vegetable producers Crop Insurance

Shifts From Land Retirement to Working Lands Consolidates 23 programs into 13 Focuses on 4 Big Buckets of Conservation Programs Conservation

Conservation Programs Easements Streamlines 3 separate programs into 1 that focuses on preserving Ag lands and Wetlands CRP Significant savings by stair- stepping program from 27.5 million to 24 million acres by 2018 Partnerships Regional Conservation Partnership Program (RCPP) consolidates four partnership programs Working Lands EQIP CSP Sodsaver Conservation Compliance

Contact info: Joe Shultz Senate Committee on Agriculture, Nutrition and Forestry Questions?