WASHINGTON, D.C. - House and Senate agriculture leaders filed a new, 5-year farm bill late Monday, Jan. 27, which is expected to come to the House floor today, Jan. 29.
The Agricultural Act of 2014, nearly 950 pages, is marked by a major rewriting of the farm commodity programs and by halting fraud and misuse in the Supplemental Nutrition Assistance Program (SNAP).
Green County's UW-Extension Agriculture Agent Mark Mayer said Tuesday the bill is offering new ways for farmers to protect themselves against major losses.
But "the devil is in the details," he said.
"I think the best news is that we're finally going to have (a farm bill)," he said.
The last farm bill expired in 2012, and despite the extensions of farm programs, farmers have been "in limbo" ever since, Mayer added.
The biggest savings in the 2014 bill comes from cutting out direct cash payments to farmers, which amounts to about $4.5 billion per year.
"That's something everybody was expecting," Mayer said.
The bill offers some reforms with saving graces for the crop producer: The federally subsidized crop insurance expanded by $1 billion per year and the new shallow-loss revenue insurance program.
Growers will make a one-time choice of traditional minimum price supports or insurance-like protection against shallow losses (revenue protection) in crop revenue for their corn, soybeans, wheat and other program crops. The new "shallow-loss" revenue insurance would pay out before crop insurance payments kick in to cover deeper losses.
Farmers are still going to get subsidized on their crop insurance, Mayer said, but the new bill "forces farmers to have more skin in the game."
The bill also provides a permanent livestock disaster assistance program for producers affected by natural disasters, and covers producers affected by recent droughts, winter storms last year in the Northern Plains and spring freezes that affected fruit growers in the Midwest.
On the dairy side, the Milk Income Loss Contract (MILC) program, which pays dairy farmers when milk prices fall below a specified price, will be discontinued.
Mayer said the insurance will pay milk producers the difference (margin) between the milk price and the cost to produce 100 pounds of milk. Included in that cost-to-produce formula will be the feed costs for soybean meal, corn and alfalfa hay.
Dairy producers will have a choice of insurance coverage, which will work to the benefits of Wisconsin's many smaller farms, Mayer said.
Farmers can choose how much insurance they wish to purchase, based on the price difference or margin they wish to cover, from $4 to $6 per 100 pounds of milk. The insurance premium cost is based on the amount covered.
Larger farmers, who want to insure a production level of more than 4 million pounds, will find a higher premium price for that additional product.
Mayer believes the new farm programs won't go into effect until summer or early fall. By then, farmers will find spreadsheets at University of Wisconsin-Extension offices, to help them calculate their best choice of options under the new farm programs.
The Agricultural Act of 2014 also renews the nation's commitment to protect land, water and other natural resources.
The farm bill consolidates 23 existing conservation programs into 13 programs, saving about $6 billion while strengthening tools to protect and conserve land, water and wildlife.
The agreement reached on food stamps cuts spending by $8 billion over 10 years.
The Agricultural Act of 2014, nearly 950 pages, is marked by a major rewriting of the farm commodity programs and by halting fraud and misuse in the Supplemental Nutrition Assistance Program (SNAP).
Green County's UW-Extension Agriculture Agent Mark Mayer said Tuesday the bill is offering new ways for farmers to protect themselves against major losses.
But "the devil is in the details," he said.
"I think the best news is that we're finally going to have (a farm bill)," he said.
The last farm bill expired in 2012, and despite the extensions of farm programs, farmers have been "in limbo" ever since, Mayer added.
The biggest savings in the 2014 bill comes from cutting out direct cash payments to farmers, which amounts to about $4.5 billion per year.
"That's something everybody was expecting," Mayer said.
The bill offers some reforms with saving graces for the crop producer: The federally subsidized crop insurance expanded by $1 billion per year and the new shallow-loss revenue insurance program.
Growers will make a one-time choice of traditional minimum price supports or insurance-like protection against shallow losses (revenue protection) in crop revenue for their corn, soybeans, wheat and other program crops. The new "shallow-loss" revenue insurance would pay out before crop insurance payments kick in to cover deeper losses.
Farmers are still going to get subsidized on their crop insurance, Mayer said, but the new bill "forces farmers to have more skin in the game."
The bill also provides a permanent livestock disaster assistance program for producers affected by natural disasters, and covers producers affected by recent droughts, winter storms last year in the Northern Plains and spring freezes that affected fruit growers in the Midwest.
On the dairy side, the Milk Income Loss Contract (MILC) program, which pays dairy farmers when milk prices fall below a specified price, will be discontinued.
Mayer said the insurance will pay milk producers the difference (margin) between the milk price and the cost to produce 100 pounds of milk. Included in that cost-to-produce formula will be the feed costs for soybean meal, corn and alfalfa hay.
Dairy producers will have a choice of insurance coverage, which will work to the benefits of Wisconsin's many smaller farms, Mayer said.
Farmers can choose how much insurance they wish to purchase, based on the price difference or margin they wish to cover, from $4 to $6 per 100 pounds of milk. The insurance premium cost is based on the amount covered.
Larger farmers, who want to insure a production level of more than 4 million pounds, will find a higher premium price for that additional product.
Mayer believes the new farm programs won't go into effect until summer or early fall. By then, farmers will find spreadsheets at University of Wisconsin-Extension offices, to help them calculate their best choice of options under the new farm programs.
The Agricultural Act of 2014 also renews the nation's commitment to protect land, water and other natural resources.
The farm bill consolidates 23 existing conservation programs into 13 programs, saving about $6 billion while strengthening tools to protect and conserve land, water and wildlife.
The agreement reached on food stamps cuts spending by $8 billion over 10 years.