1. Associate Professor/Crop Markets Specialist
The Farm Bill Process
USDA Ukraine Program
Ames, Iowa
May 5, 2015
Chad Hart
Associate Professor/Crop Markets Specialist 1 1

2. What is a Farm Bill?
The farm bill is the primary agricultural and food policy legislation set by the U.S. federal government.
It governs commodity programs, trade, food and nutrition programs, rural development, farm credit, conservation, agricultural research, and other programs related to agriculture.
Some programs within the farm bill are permanent legislation, whereas other programs have expiration dates.

3. Farm Bill History
Congress passed the 1st farm bill in 1933, the Agriculture Adjustment Act.
The 1938 farm bill established a base set of agricultural policies as permanent and set a timeline for updates every 5-7 years.
There have been numerous updates to agricultural policy since then, with the latest in 2014.

4. Farm Bill Targeting
Early farm bills were influenced by the Great Depression and the Dust Bowl.
Policy targets were to ensure an adequate food supply for the U.S. and to assist farmers in low price scenarios.
Since then, farm bills have been used to:
control supplies, manage trade, provide farm
income support, increase environmental
awareness

5. Farm Bill Process
While each farm bill is different, in general, the process is:
The executive branch (President, U.S. Department of Agriculture) proposes agricultural policies.
The legislative branch (Congress) can adopt, modify, and/or ignore these proposals as they craft the next farm bill.

6. Farm Bill Process
Within Congress, separate policy proposals can arise from the House of Representatives and the Senate.
Both the House and the Senate have Agriculture Committees that start the legislative process for the farm bill.
Proposed bills move from the Committees to the full House and/or Senate.

7. Farm Bill Process
Once the House and Senate have voted on their farm bill proposals, a conference committee is formed to blend the proposals together.
The conference committee’s version is then voted on by the full House and Senate.
Once both the House and Senate pass the same farm bill, it is sent to the President to either sign into law or veto (and possibly restart the process).

8. Farm Bill Titles Commodities IX. Energy
Conservation X. Hort. & Organic Ag.
Trade XI. Crop Insurance
Nutrition XII. Miscellaneous
Credit
Rural Development
Research
Forestry

9. Programs by Title Commodity
Income and price support programs for producers
Conservation
Environmental/conservation programs
Trade
Trade promotion programs
Nutrition
Income and price support programs for consumers

10. Programs by Title Credit Farm loan/Ag credit programs
Rural Development
Rural infrastructure programs
Research
Research funding for USDA and higher education
Forestry
Forestry management programs

11. Programs by Title Energy Biofuel programs
Horticulture and Organic Agriculture
Farmers markets
Crop Insurance
Modifications to crop insurance
Miscellaneous
Livestock disaster programs and price reporting

12. Farm Bill Projected Spending
$489 Billion

13. Expected Spending
Source: CBO

14. Changes in Expected Spending
Source: CBO

15. Thank you for your time. Any questions. My web site: http://www. econ
Thank you for your time! Any questions? My web site: Iowa Farm Outlook: Ag Decision Maker: