We have a new farm bill coming down the pipe that is going to be impactful for our farmers. I am going to do my best to explain the history of the farm bill, what things are in the new farm bill, and how it’s going to affect people. I’ll just give forewarning that I am not a lawyer or politician so some of the deeper inner workings are beyond me, and like most government documents it’s very long. Therefore, this is going to be a very brief overview of the farm bill and its purpose.
The first farm bill came into being back in 1933 as a result of the Great Depression and the Dust Bowl in the Midwest. At the time there was a great need from many hungry Americans for food. The first farm bill addressed this need by buying food from farmers to be given used as food aid. Ever since then nutrition has been a significant portion of the farm bill. In the 2014 farm bill nutrition was 80% of the farm bill budget. The remaining 20% includes crop insurance, conservation, and commodities among other things. A new farm bill is created approximately every five years.
Commodities works to make sure that farmers growing major crops such as grains, soybeans, and peanuts receive support so that they can stay afloat. These payments take place as revenue insurance to support farm income. Price Loss Coverage is an example of commodity program that makes payments to farmers when revenue or crop prices are low.
Conservation serves to protect vulnerable lands and take them out or production as a way to protect soil, rivers, and enhance biodiversity. The Conservation Reserve Program pays farmers to put sensitive and highly erodible land in 10-15 year contracts. The Environmental Quality Incentives Program splits costs with farmer for practices that protect the environment.
Crop Insurance is also provided to farmers through the farm bill. Usually the government will require farmers to purchase crop insurance if they are taking subsidies for commodities. Whole Farm Revenue Protection provides insurance to farmers who grow a variety of crops and have diverse farms because diverse farmers have lower risk.
There are a number of other programs that are included in the farm bill. The topics that I have covered are ones that are generally in every farm bill in some shape or form. These topics have received an update in pricing and the amount of support that farmers will receive.
The biggest change that will be coming through with the new farm bill is the legalization of hemp growing. Hemp will be legal at a federal level, although it will still be heavily regulated. Hemp can be a valuable fiber crop for farmers. It remains to be seen how this will come about, regulation and enforcement will present some new challenges.
There is a lot more to the farm bill than what I have talked about here. If you have more questions about the farm bill contact your local Extension Office or email me at Jacob.Williams@uga.edu.