Order Code RL34228
Comparison of the
House and Senate 2007 Farm Bills
Updated May 16, 2008
Renée Johnson, Coordinator,
Geoffrey S. Becker, Tom Capehart, Ralph M. Chite,
Tadlock Cowan, Ross W. Gorte, Charles E. Hanrahan,
Remy Jurenas, Jim Monke, Jean M. Rawson, Randy Schnepf
Resources, Science, and Industry Division
Joe Richardson
Domestic Social Policy Division
Donald J. Marples and Mark Jickling
Government and Finance Division

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Comparison of the House and Senate 2007 Farm Bills
Summary
On May 14, 2008, the House passed the conference agreement on the 2008 farm
bill (H.R. 2419, the Food, Conservation, and Energy Act of 2008), followed the next
day by Senate passage of the same bill.
The final conference agreement on the 2008 farm bill completes congressional
action that started in earnest in early 2007. Following House Agriculture Committee
action beginning in March 2007, the House passed its version of the farm bill (H.R.
2419) on July 27, 2007. The Senate Agriculture Committee approved its version (S.
2302) in October and, on December 14, the Senate completed floor action on its bill,
which was offered as a substitute to the House bill. Conference negotiations were
initially delayed because of differences between committee leadership and the
Administration. However, many provisions of the 2002 farm bill expired in
September 2007. Consequently, Congress temporarily extended portions of the
expiring farm bill until March 15, 2008, as part of the Consolidated Appropriations
Act for FY2008 (P.L. 110-161). Since March, Congress has approved a series of
short-term extensions to allow more time to resolve differences between the House-
and Senate-passed bills.

As part of the pending new omnibus farm bill, both the House and Senate
proposed changes to commodity support and risk management policies and programs
(such as direct payments, payment limits, revenue and counter-cyclical payments,
crop insurance and disaster assistance, planting flexibility, and specialty crops), and
also proposed changes to provisions affecting conservation, bioenergy, rural
development, forestry, agricultural research, competition, trade and food aid,
agriculture credit, and domestic food programs and nutrition. Both the House and
Senate bills also contained provisions that would make certain changes to tax laws,
which are intended to cover additional spending on programs in certain titles that
were adopted as part of these bills.
This report compares only the major provisions in the House- and Senate-passed
versions of the farm bill with each other and with current law, providing a brief
description of all individual sections or subsections within each title. This report
does not describe the final conference agreement provisions, nor does it provide a
comparison of the conference provisions with the House- and Senate-passed bills.

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Contents
Summary of Major Provisions: House and Senate 2007 Farm Bills and
Current Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Grains, Cotton, Peanuts, and Minor Commodities . . . . . . . . . . . . . . . . . . . . 6
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Base Acres and Program Yields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Prohibition on De Minimis Payments . . . . . . . . . . . . . . . . . . . . . . . . . 10
Producer Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Planting Flexibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Direct Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Counter-Cyclical Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Revenue-Based Counter-Cyclical Payments . . . . . . . . . . . . . . . . . . . . 14
Nonrecourse Marketing Loans and Other Recourse Loans . . . . . . . . . 16
Payment Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Adjusted Gross Income Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Administrative Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Dairy Price Support Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Milk Income Loss Contract Payments . . . . . . . . . . . . . . . . . . . . . . . . . 29
Dairy Forward Pricing Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Dairy Export Incentive Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Dairy Indemnity Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Dairy Promotion and Research Program . . . . . . . . . . . . . . . . . . . . . . . 30
Federal Milk Marketing Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Mandatory Dairy Commodity Price Reporting . . . . . . . . . . . . . . . . . . 31
Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
No-Net-Cost Directive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Price Support Levels, Loans and Payments . . . . . . . . . . . . . . . . . . . . . 31
Marketing Allotments and Allocations . . . . . . . . . . . . . . . . . . . . . . . . 32
Trade-Related Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Specialty Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Marketing and Trade Promotion, Consumer Access . . . . . . . . . . . . . . 34
Organic Agriculture Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Pest and Disease Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Food Safety Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Disaster Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Specialty Crop Sector Data Collection . . . . . . . . . . . . . . . . . . . . . . . . 36
Other Commodity-Specific Provisions . . . . . . . . . . . . . . . . . . . . . . . . 37
Livestock and Animal Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Livestock Mandatory Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Meat Inspection and Grading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Country of Origin Labeling (COOL) . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Agricultural Fair Practices Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Packers and Stockyards Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Animal Pest and Disease Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
National Animal Identification System . . . . . . . . . . . . . . . . . . . . . . . . 41
Other Commodity-Specific Provisions . . . . . . . . . . . . . . . . . . . . . . . . 42
Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Program Definitions and Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

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Highly Erodible and Wetland Conservation . . . . . . . . . . . . . . . . . . . . 43
Comprehensive Conservation Enhancement Program . . . . . . . . . . . . . 43
Conservation Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Wetlands Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Conservation Security Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Environmental Quality Incentives Program . . . . . . . . . . . . . . . . . . . . . 48
Farmland Protection Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Grassland Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Wildlife Habitat Incentives Program . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Other Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
New Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Agricultural Trade and Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
P.L. 480 Food Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Other Food Aid Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Export Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Other Trade Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Reauthorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Food Stamp Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Fruits and Vegetables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
The Emergency Food Assistance Program . . . . . . . . . . . . . . . . . . . . . 71
Commodity Supplemental Food Program . . . . . . . . . . . . . . . . . . . . . . 72
Food Distribution Program on Indian Reservations . . . . . . . . . . . . . . 72
Senior Farmers’ Market Nutrition Program . . . . . . . . . . . . . . . . . . . . . 72
Community Food Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Geographic Preference (Purchase of Locally Produced Foods) . . . . . . 73
Special Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Agricultural Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
USDA Farm Ownership Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
USDA Farm Operating Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Administrative Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Farm Credit System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Rural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Defining Rural Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Rural Infrastructure: Water and Waste Disposal . . . . . . . . . . . . . . . . . 81
Rural Broadband and Telecommunications Development . . . . . . . . . 83
Agricultural-Based Rural Economic Development . . . . . . . . . . . . . . . 84
Regional Economic Development and Planning . . . . . . . . . . . . . . . . . 85
Rural Entrepreneurship and Business Investment Programs . . . . . . . . 86
Community Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Other Rural Development Provisions . . . . . . . . . . . . . . . . . . . . . . . . . 89
Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Structure and Funding of Research, Education, and Extension . . . . . . 90
Provisions Affecting Certain Research Institutions . . . . . . . . . . . . . . 92
Organic Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Specialty Crops Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Bioenergy Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Other Research Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Cooperative Forestry Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Other Forestry Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

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Farm and Community Energy Systems . . . . . . . . . . . . . . . . . . . . . . . 104
Biofuel Feedstocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Biofuel Research and Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Other Renewable Energy Provisions . . . . . . . . . . . . . . . . . . . . . . . . . 109
Crop Insurance & Disaster Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Timing of Crop Insurance Payments and Receipts . . . . . . . . . . . . . . 110
Reimbursement of Administrative and Operating Expenses . . . . . . . 110
Premiums and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Standard Reinsurance Agreement and Risk-Sharing . . . . . . . . . . . . . 111
Program Integrity (Waste, Fraud, and Abuse) . . . . . . . . . . . . . . . . . . 111
Risk Management Research and Development . . . . . . . . . . . . . . . . . 112
Other Crop Insurance Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Disaster Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Miscellaneous Food Safety Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Agricultural Biosecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Food Safety Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Foods from Cloned Animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Invasive Species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Animal Welfare Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Other APHIS-Related Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Other Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Socially Disadvantaged and Limited Resource Producers . . . . . . . . . 119
Pigford Discrimination Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Miscellaneous Rural Development Provisions . . . . . . . . . . . . . . . . . 121
Other Miscellaneous Title Provisions . . . . . . . . . . . . . . . . . . . . . . . . 122
Revenue and Offsetting Cost Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Revenue-Increasing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Tax-Related Conservation Provisions . . . . . . . . . . . . . . . . . . . . . . . . 125
Tax-Related Energy Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Agricultural Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

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Key CRS Policy Staff
Area of Expertise
Name
Telephone
Report Coordinator/Overview;
Renée Johnson
7-9588
Livestock and Competition
Food and Feed Grain Support
Jim Monke
7-9664
Ralph M. Chite (dairy)
7-7296
Other Commodity Support Programs
Remy Jurenas (sugar)
7-7281
Randy Schnepf (cotton)
7-4277
Payment Limits
Planting Flexibility
Jim Monke
7-9664
Farm Credit
Crop Insurance
Ralph M. Chite
7-7296
Disaster Assistance
Renée Johnson
7-9588
Conservation
Tadlock Cowan
7-7600
Randy Schnepf
7-4277
Energy
Tom Capehart
7-2425
Agricultural Trade and Food Aid
Charles E. Hanrahan
7-7235
Specialty Crops; also Agricultural
Jean M. Rawson
7-7283
Research, Extension, & Economics
Meat and Poultry Inspection;
Marketing and Regulatory Programs;
Geoffrey S. Becker
7-7287
Food Safety
Rural Development
Tadlock Cowan
7-7600
Forestry
Ross Gorte
7-7266
Domestic Food Assistance and
Joe Richardson
7-7325
Nutrition Programs
Revenue-Raising Tax Provisions;
Donald J. Marples
7-3739
Offsetting Cost Provisions
Commodity Futures Trading
Mark Jickling
7-7784
Commission (CFTC) reauthorization
Acknowledgments
Portions of this report were originally written by retired CRS specialists
Jasper Womach, Jeffrey Zinn, and David Brumbaugh.

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Comparison of the House and Senate
2007 Farm Bills
On May 8, House and Senate farm bill conferees announced the details of a
completed conference agreement (H.R. 2419, the Food, Conservation, and Energy
Act of 2008). The following week, both chambers completed floor action and
approved the final conference bill. On May 14, 2008, the House passed the
conference agreement on the 2008 farm bill by a vote of 318-106. On May 15, the
Senate passed the same bill by a vote of 81-15.
The final conference agreement on the 2008 farm bill completes congressional
action that started in earnest in early 2007. The House Agriculture Committee
conducted its markup of its version of the farm bill (H.R. 2419) in mid-July and
completed House floor action on July 27, 2007. The Senate Agriculture Committee
approved its version (S. 2302) in October and, on December 14, the Senate
completed floor action on its bill, which was offered as a substitute to the House bill.
Conference negotiations were initially delayed because of funding and policy
differences between committee leadership and the Administration. However, many
provisions of the 2002 farm bill expired in September 2007. Consequently, Congress
temporarily extended portions of the expiring 2002 farm bill until March 15, 2008,
as part of the Consolidated Appropriations Act for FY2008 (P.L. 110-161). Since
March, Congress has approved a one-month extension, followed by four consecutive
short-term extensions1 to allow more time to resolve differences between the House-
and Senate-passed bills.
This report compares only the major provisions in the House- and Senate-passed
versions of the farm bill with each other and with current law, providing a brief
description of all individual sections or subsections within each title. It provides a
brief description of nearly all the House- and Senate-passed provisions by individual
sections or subsections within each title, including information on the tax-related and
other budget offsets that are intended to cover additional spending on programs in
certain titles that were adopted as part of these bills. The descriptions of the current
law provisions in this report are not intended to be comprehensive of the agricultural
statutes at large, but are instead limited to the provisions addressed in the current
farm bill debate and the respective House and Senate bills.
This report does not describe the final conference agreement provisions, nor
does it provide a comparison of the conference provisions with the House- and
Senate-passed bills.
1 March 12 (P.L. 110-196), April 17 (P.L. 110-200), April 24 (P.L. 110-205), May 1 (P.L.
110-208), and May 14 (H.R. 6051).

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CRS-2
A summary of the major provisions in the House and Senate versions of the
farm bill is provided below by major farm bill issue area.
Commodity Programs. Both the House- and Senate-passed bills continue
the 2002 farm bill’s framework of direct, counter-cyclical, and marketing loan
payments through the 2012 crop year. The House tightens the adjusted gross income
(AGI) test more, with a hard cap of $1 million with no exceptions and a soft cap of
$500,000; the Senate has a soft cap of $750,000 by 2012 and no hard cap. Both bills
eliminate any limit on marketing loans. The House offers a national-level “revenue
counter-cyclical payment” option. The Senate offers a state-level “average crop
revenue (ACR)” option that also replaces traditional direct payments with a $15 per
acre fixed payment and nonrecourse marketing loans with recourse loans. Both bills
raise some target prices and loan rates, and the Senate adds support for a few minor
commodities. Neither lifts the planting restriction on fruits and vegetables, although
both offer limited “Farm Flex” pilot programs. Both increase sugar price supports,
and mandate a sugar-to-ethanol program to absorb unrestricted Mexican sugar
imports. Both bills extend the dairy price support program and the Milk Income Loss
Contract (MILC) program, but the Senate increases the payment rate for the program.
Livestock and Specialty Crops. For specialty crops, both the House and
Senate bills provide for similar levels of mandatory funding for specialty crop block
grants and additional support for organic agriculture, and provide additional funding
for inspection, and pest and disease detection programs, among other provisions. For
livestock, both bills provide for animal welfare and inspections, competition and
marketing provisions, and country-of-origin labeling requirements, among other
provisions. Both versions modify country-of-origin labeling requirements, provide
new authorities to permit state-inspected meat and poultry to be sold across state
lines, and address various marketing and competition issues, although the Senate
bill’s competition changes are contained in a separate, and much more extensive,
livestock marketing title. Also in the Senate but not the House bill are directives to
require safety inspection of farm catfish, to establish a registry to report meat and
poultry safety incidents, and to further study the safety of animal cloning.
Conservation. Both the House and Senate bills reauthorize almost all current
conservation programs. Among the differences between these bills is that the House
would increase funding for many of the programs (increasing total conservation
funding by $4.5 billion) and halt further enrollment into the Conservation Security
Program until FY2012. The Senate bill would retain the current funding levels for
many conservation programs and give additional funding to a new Conservation
Stewardship Program to enroll more than 13 million acres yearly (increasing total
conservation funding by $5.2 billion). Both bills also authorize new initiatives in
areas that range from wildlife protection to expanding the use of markets that provide
environmental services; and they reflect changing conservation interests by both
amending existing programs and enacting new ones.
Nutrition. The House and Senate measures are very similar in the policy
changes they advance in the nutrition title. Both bills rename the Food Stamp
program, increase program benefits, and loosen some eligibility rules. They also
increase spending for The Emergency Food Assistance Program (TEFAP), add
support for a fresh fruit and vegetable program in schools, and allow geographic

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CRS-3
preference in buying food for school meals. However, the bills differ in some
important aspects; most notably, the House bill places substantial limits on states’
ability to “privatize” their administration of food stamps and the Senate bill allows
the purchase of dietary supplements with food stamp benefits. The Senate bill
allocates a much greater portion of its new funding to the fruit and vegetable
initiative than the House bill.
Agricultural Trade. Both the House and Senate bills reauthorize and amend
USDA’s food aid, export market development, and export credit guarantee programs.
Both bills reauthorize P.L. 480 food aid programs and other smaller programs that
provide food aid to countries that are promoting the development of market-oriented
agricultural sectors (Food for Progress) or school feeding and nutrition programs (the
McGovern-Dole International School Feeding and Child Nutrition Program).
However, the two bills differ in that the Senate bill authorizes a pilot program to
explore how local or regional purchase of food in emergency situations might be
used, while the House bill does not propose the use of P.L. 480 funds for local or
regional purchases of commodities, but stipulates other changes. The Senate bill also
raises the cap on CCC-funded transportation of commodities in the Food for Progress
Program, while the House bill reauthorizes this program without change. The bills
also differ in their treatment of and authorized funding levels for the McGovern-Dole
program. Both bills modify the export credit guarantee programs to make them
compatible with World Trade Organization (WTO) rules limiting export subsidies,
and provide increased funding for export market promotion and for addressing
sanitary and phytosanitary (food safety) barriers to U.S. agricultural exports.
Agricultural Credit. Both bills expand borrowing opportunities under
USDA’s Farm Service Agency loan programs, among other changes. For USDA
direct and guaranteed loans, both bills increase lending limits per farmer and further
prioritize lending for beginning and socially disadvantaged farmers. The House bill
temporarily extends suspension of “term limits” on guaranteed loans, while the
Senate bill permanently eliminates them. The Senate bill creates a pilot program of
individual development accounts for beginning farmers. For the Farm Credit System,
both bills make rural utility loans eligible for Farmer Mac and modify rules for
premiums to the insurance fund.
Rural Development. Both bills reauthorize, expand, and/or modify existing
programs, and authorize new programs and initiatives, including rural infrastructure,
economic development, and broadband and telecommunications development.
However, the Senate bill authorizes higher mandatory spending levels over the next
five years compared to the House bill. The Senate also authorizes a grants program
to encourage state initiatives to improve broadband service, funding to construct
child care facilities, and grants for individuals with disabilities, and proposes new
criteria for defining rural areas. The House bill proposes new criteria for eligibility
for loans and grants, an agricultural innovation center demonstration program, and
grants to improve rural health care facilities.
Research. Both the House and Senate bills expand existing research
initiatives; reorganize the administration of USDA’s research, extension, and
economic agencies; and establish a national institution to administer competitive
programs.

---

CRS-4
Forestry. Both the House and Senate bills make changes to existing forestry
programs, allowing one to expire. Both bills establish priorities for forestry
assistance funding and require statewide forest resource assessments and plans. The
House bill also provides for some competitive funding for forestry assistance,
establishes an emergency forest restoration program, and funds Hispanic-serving
institutions for forestry and related resources education. The Senate bill establishes
tribal-Forest Service cooperation and assistance, and a community forestry and open
space conservation program, and restricts imports of illegally harvested logs and
wood products.
Energy. Both the House and Senate bills reauthorize, expand, and/or modify
existing programs, and create new programs and initiatives to promote biofuels and
cellulosic ethanol production. Both bills support farm and community renewable
energy systems; promote production, marketing, and processing of biofuel feedstocks
other than corn starch; and expand research, education, and demonstration programs
for advanced biofuels. Both bills expand current programs for federal procurement
of biofuels and bio-refinery repowering projects and establish USDA coordination
of federal biobased energy efforts. Among the differences between these two bills
is that the House bill promotes regional energy-neutral and energy-efficient farm
demonstrations and biochar research. The Senate bill funds research on dairy
nutrient management and energy development; creates a voluntary program for
certifying feedstocks; promotes E-85 ethanol infrastructure development; extends
grants for industrial hydrocarbon and alcohol research; and calls for a multi-agency
report on life-cycle analysis of biofuels.
Miscellaneous Provisions. Both the House and Senate bills make changes
to crop insurance and other miscellaneous programs. Both bills contain several cost-
saving revisions to the federal crop insurance program ($4 billion over five years in
the House, and $3.5 billion in the Senate). Much of the savings is achieved through
a change in the timing of payments and receipts; other cost-saving measures include
higher fees for participating farmers and smaller reimbursements for participating
insurance companies. The Senate bill also creates a permanent disaster relief
program. Among other miscellaneous programs, the House bill lacks a Senate-passed
provision requiring a new Congressional Bipartisan Food Safety Commission to
study and make recommendations for modernizing food safety programs; also, both
bills add new, and in some cases differing, regulatory activities to the Animal
Welfare Act. Both the House and Senate address the location of foot and mouth
disease research, and the Senate bill puts other new agricultural biosecurity
provisions into statute. Other miscellaneous provisions address small and socially
disadvantaged farmers, among other provisions.
Revenue and Offsetting Cost Provisions. Both the House and Senate
bills contain revenue-raising provisions and budgetary offsets that would make
certain changes to tax laws, which are intended to offset new spending initiatives in
the farm bill.2 The House bill provides several revenue-raising tax items, including
restriction on “treaty shopping” by foreign firms operating in the United States; a
second revenue raiser is a shift in the timing of estimated corporate tax payments.
2 For more information on these provisions, see CRS Report RL33768, Major Tax Issues in
the 110th Congress.

---

CRS-5
The Senate bill’s tax provisions include a variety of both revenue-losing and revenue
raising items, and are estimated to result in no net cost or “revenue neutrality.” The
tax cuts are in the areas of energy, conservation, and agriculture. The single largest
revenue-raising proposal is codification of the “economic substance” judicial
doctrine, designed to curb the use of tax shelters.
A more detailed description of the policy differences between the House and
Senate farm bills, including estimates of the 5- and 10-year cost of the House and
Senate bills, is in CRS Report RL33934, Farm Bill Proposals and Legislative Action
in the 110th Congress. CRS reports on individual titles of the farm bill and other
information are available in the CRS Current Legislative Issues Web page on the
“Farm Bill and Farm Policy,” at [http://apps.crs.gov/cli/cli.aspx?PRDS_CLI_
ITEM_ID=641&from=3&fromId=1].

---

CRS-6
Summary of Major Provisions: House and Senate 2007 Farm Bills and Current Law
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
“Farm Security and Rural Investment Act of 2002”
“Farm, Nutrition, and Bioenergy Act of 2007”
“Food and Energy Security Act of 2007” [Sec. 1]
[7 U.S.C. 7901 note]
[Sec. 1]
GRAINS, COTTON, PEANUTS, AND MINOR COMMODITIES (TITLE I)
Definitions
Agricultural Act of 1949: 7 U.S.C. 1421 et seq. as
Agricultural Act of 1949: same as current law, with
No comparable definition.
in effect before the suspensions under the 1996 farm
the addition of reference to suspensions under the
bill (Federal Agricultural Improvement and Reform
2002 farm bill and Sec. 1502(b) of this Act. [Sec.
Act, P.L. 104-127). [7 U.S.C. 7901(1)]
1001(1)]
No comparable definition.
No comparable definition.
Average Crop Revenue Payment: a payment made
to producers under average crop revenue payment
provisions. [Sec. 1001(1)]
Base acres: the number of base acres established by
Base acres: the number of base acres of a covered
Base acres: same as House definition, except does
the owner of the farm under base acre provisions. [7
commodity on a farm established under the 2002
not have reference to peanuts. [Sec. 1001(2)] Same
U.S.C. 7901 (2)] Same definition for peanuts. [7
farm bill (7 U.S.C. 7911, 7952), as in effect the day
definition for peanuts. [Sec. 1301(1)]
U.S.C. 7951(1)]
before enactment of this Act, subject to adjustment.
[Sec. 1001(2)]
No comparable definition.
Comparable United States Quality: upland cotton
No comparable definition.
classified as Middling 1 3/32-inch cotton, micronaire
of 3.7 to 4.2, strength 30 grams per tex, uniformity of
83. [Sec. 1001(3)]
Counter-cyclical payment: a payment to producers
Counter-cyclical payment: a payment to producers
Counter-cyclical payment: a payment to producers
on a farm under counter-cyclical payment provisions.
on a farm under traditional or revenue-based counter-
on a farm under traditional counter-cyclical payment
[7 U.S.C. 7001(3)] Same definition for peanuts. [7
cyclical payment provisions. [Sec. 1001(4)]
provisions. [Sec. 1001(3)] Same definition for
U.S.C. 7951(2)]
peanuts. [Sec. 1301(2)]
Covered commodity: wheat, corn, grain sorghum,
Covered commodity: same as current law, except
Covered commodity: same as current law, except
barley, oats, upland cotton, rice, soybeans, and other
adds peanuts. [Sec. 1001(5)]
differentiates between long and medium grain rice,
oilseeds. [7 U.S.C. 7901(4)]
and adds pulse crops. [Sec. 1001(4)]

---

CRS-7
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Direct payment: a payment made to producers on a
Direct payment: same as current law. [Sec. 1001(6)]
Direct payment: same as current law. [Sec. 1001(5)]
farm under direct payment provisions. [7 U.S.C.
Same definition for peanuts. [Sec. 1301(3)]
7901(5)]
Effective price: for a covered commodity for a crop
Effective price: same as current law. [Sec. 1001(7)]
Effective price: same as current law. [Sec. 1001(6)]
year, the price calculated by USDA under counter-
Same definition for peanuts. [Sec. 1301(4)]
cyclical payment provisions to determine whether
payments are required for that crop year. [7 U.S.C.
7901(6)]
Extra long staple cotton: cotton that (A) is
Extra long staple cotton: same as current law. [Sec.
Extra long staple cotton: same as current law. [Sec.
produced from pure strain varieties of the Barbadense
1001(8)]
1001(7)]
species or any hybrid of the species, or other similar
types of extra long staple cotton having characteris-
tics needed for various end uses for which U.S.
upland cotton is not suitable, and grown in irrigated
or other designated U.S. cotton-growing regions; and
(B) is ginned on a roller-type gin or, other authorized
gin for experimental purposes. [7 U.S.C. 7901(7)]
No comparable definition.
Far East Price: the Friday through Thursday
No comparable definition.
average price quotation for the three lowest-priced
growths of upland cotton, as quoted for Middling
(M) 1 3/32-inch cotton, delivered C/F Far East. [Sec.
1001(9)]
Loan commodity: wheat, corn, grain sorghum,
Loan commodity: same as current law, except
Loan commodity: same as House definition, except
barley, oats, upland cotton, extra long staple cotton,
differentiates feed barley and malt barley;
does not differentiate types of barley; does not
rice, soybeans, other oilseeds, wool, mohair, honey,
differentiates long, medium, and short grain rice;
include small grain rice directly (although included in
dry peas, lentils, and small chickpeas. [7 U.S.C.
and includes peanuts. [Sec. 1001(10)]
definition of medium grain rice); excludes peanuts
7901(8)]
which are treated separately; and includes large
chickpeas. [Sec. 1001(8)]
No comparable definition.
No comparable definition.
Medium grain rice: includes short grain rice. [Sec.
1001(9)]
Other oilseed: sunflower seed, rapeseed, canola,
Other oilseed: sunflower seed, rapeseed, canola,
Other oilseed: same as House definition, except adds
safflower, flaxseed, mustard seed, or, if designated
safflower, flaxseed, mustard seed, crambe, sesame
camelina. [Sec. 1001(10)]

---

CRS-8
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
by the Secretary, another oilseed. Crambe and
seed, or, if designated by the Secretary, another
sesame seed were added by P.L. 108-7, Division A,
oilseed. [Sec. 1001(11)]
Sec. 763. [7 U.S.C. 7901(9)]
Payment acres: 85% of the base acres for the
Payment acres: same as current law. [Sec. 1001(12)]
Payment acres: same as current law. [Sec. 1001(11)]
covered commodity on which direct payments and
Same definition for peanuts. [Sec. 1301(5)]
counter-cyclical payments are made. [7 U.S.C.
7901(10)] Same definition for peanuts. [7 U.S.C.
7951(6)]
Payment yield: in general, the yield established
Payment yield: the yield established for direct
Payment yield: same as House definition, except
under Sec. 1102 for a covered commodity. “Updated
payments and counter-cyclical payments for a farm
does not include peanuts. [Sec. 1001(12)] Same
payment yield” means the yield established to
for a covered commodity and peanuts under the 2002
definition for peanuts. [Sec. 1301(6)]
calculate counter-cyclical payments. [7 U.S.C.
farm bill as in effect on the day before the date of the
7901(11)] Same definition for peanuts. [7 U.S.C.
enactment of this Act. [Sec. 1001(13)]
7951(7)]
Producer: generally, an owner, operator, landlord,
Producer: same as current law. [Sec. 1001(14)]
Producer: same as current law. [Sec. 1001(13)]
tenant, or sharecropper that shares in the risk of
Same definition for peanuts. [Sec. 1001(7)]
producing a crop and is entitled to share in the crop
available for marketing from the farm, or would have
shared had the crop been produced. For a grower of
hybrid seed, the existence of a hybrid seed contract
and other program rules shall not adversely affect the
ability to receive a payment. [7 U.S.C. 7901(12)]
Same definition for peanuts. [7 U.S.C. 7951(8)]
No comparable definition.
No comparable definition.
Pulse crop: dry peas, lentils, small chickpeas, and
large chickpeas. [Sec. 1001(14)]
Secretary: the Secretary of Agriculture. [7 U.S.C.
Secretary: same as current law. [Sec. 1001(15)]
No comparable definition.
7901(13)] Same definition for peanuts. [7 U.S.C.
7951(9)]
State: each of the U.S. States, the District of
State: same as current law. [Sec. 1001(16)]
State: same as current law. [Sec. 1001(15)]
Columbia, the Commonwealth of Puerto Rico, or
Same definition for peanuts. [Sec. 1301(8)]
U.S. territory/possession. [7 U.S.C. 7901(14)] Same
definition for peanuts. [7 U.S.C. 7951(10)]

---

CRS-9
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Target price: the price per unit of a covered
Target price: same as current law. [Sec. 1001(17)]
Target price: same as current law. [Sec. 1001(16)]
commodity used to determine the payment rate for
Same definition for peanuts. [Sec. 1301(9)]
counter-cyclical payments. [7 U.S.C. 7901(15)]
Same definition for peanuts. [7 U.S.C. 7951(11)]
United States: when used in a geographical sense,
United States: same as current law. [Sec. 1001(18)]
United States: same as current law. [Sec. 1001(17)]
all of the States. [7 U.S.C. 7901(16)] Same
Same definition for peanuts. [Sec. 1301(10)]
definition for peanuts. [7 U.S.C. 7951(12)]
No comparable definition.
United States Premium Factor: the percentage by
No comparable definition.
which the difference in the U.S. loan schedule
premiums for Strict Middling (SM) 11/8-inch cotton
and for M 13/32-inch exceeds the difference in the
applicable premiums for comparable international
qualities delivered C/F Far East. [Sec. 1001(19)]
Base Acres and Program Yields
Base acres: for each covered commodity on a farm,
Base acres: no choice of updating base acres or
Base acres: same as House bill, except provides for
base acres are established by the owner’s choice of
payment yields, except requires USDA to provide
adjustment to include pulse crops, camelina, or newly
(1) average of 1998-2001 plantings, or (2) the sum of
base acre adjustments when a CRP contract ends.
designated oilseed acreage. [Sec. 1101(a)-(c)(1)]
production flexibility contract acreage under 1996
[Sec. 1101]
Same provision for peanuts. [Sec. 1302]
farm bill plus average oilseed acreage from 1998-
2001. Accommodation for peanut acres, double
cropping, and CRP acres. Base cannot exceed total
crop land. Payment acres = 85% of base acres. [7
U.S.C. 7911] Base acres for peanuts also based on
the 1998-2001 period. [7 U.S.C. 7952]
No comparable provision.
No comparable provision.
Required reduction of base acres: suspend direct,
counter-cyclical, and average crop revenue payments
and reduce base acres for land that is no longer used
for farming. Specifically, land that has been
developed for “commercial or industrial use or has
been subdivided and developed for multiple
residential units or other nonfarming uses” unless
producer demonstrates the land is devoted to
agricultural production. [Sec. 1101(c)(2)] Same
provision for peanuts. [Sec. 1302(c)(2)]

---

CRS-10
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
No comparable provision.
Requires USDA to track reconstitutions of land and
report to Congress to ensure that commercial or
residential land is not eligible for payments. [Sec.
1101(c)(3)] Same provision for peanuts. [Sec.
1302(c)(3)]
Direct payment yield: for each covered commodity
No provision to change payment yield; payment
Establishes payment yields for designated oilseeds,
on a farm, a direct payment yield is the yield
yields are continued from current law by definition.
camelina, or pulse crops using 1998-2001 farm
established for the 1995 crop; the yield for oilseeds is
yields, adjusted back to the national average from
the average from 1998-2001, adjusted back to the
1981-85. [Sec. 1102]
national average from 1981-85. Counter-cyclical
payment yield may be an updated yield using
specified formulas. [7 U.S.C. 7912] Payment yields
for peanuts are established using the 1998-2001
period. [7 U.S.C. 7952]
No comparable provision.
No comparable provision.
To make counter-cyclical payments for long grain
and medium grain rice, base acres shall be
apportioned based on average acreage planted to each
type of rice in the applicable state during the 2003-
2006 crop years. Producers may elect to use farm-
level planting history. Established totals of base
acres, payment acres, and payment yields are
maintained. [Sec. 1107]
Prohibition on De Minimis Payments
No comparable provision.
No payments under $25: no payment will be made
No comparable provision.
if the total direct payment to a producer on a farm for
all covered commodities is less than $25. [Sec.
1102(e)] Same provision is made for counter-
cyclical payments [Sec. 1102(e)], and revenue-based
counter-cyclical payments. [Sec. 1104(i)]
Producer Agreement
Eligibility for payments requires producers to comply
Same as current law. [Sec. 1105(a)]
Same as current law, except adds provision that land
with conservation, wetland, and planting flexibility
cannot be used for a residential use (including land

---

CRS-11
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
requirements; use base acres for agricultural or
subdivided and developed into residential units or
conserving use, and not for nonagricultural
other nonfarming uses, or that is otherwise no longer
commercial or industrial use; control noxious weeds
intended to be used in conjunction with farming (like
and maintain sound agricultural practices. [7 U.S.C.
Sec. 1101(c)(2)). [Sec. 1105(a)] Same provision for
7915(a)] Same provision for peanuts. [7 U.S.C.
peanuts. [Sec. 1305(a)] Same provision for Average
7955(a)]
Crop Revenue (ACR) program, except does not
require compliance with planting flexibility
provisions since ACR has its own planting flexibility
rules. Requires USDA to certify entities receiving
payments are producers. [Sec. 1402(a)]
Sets requirements for transfer of interest in base
Same as current law. [Sec. 1105(b)-(e)]
Same as current law, except adds that no penalty
acres. Requires acreage reports. Protects interests of
shall be assessed for inaccurate acreage report unless
tenants and sharecroppers and provides for sharing of
producers knowingly and willfully falsified the
payments on a farm on an equitable basis. [7 U.S.C.
report. [Sec. 1105(b)-(e)] Same provision for
7915(b)-(e)] Same provision for peanuts. [7 U.S.C.
peanuts. [Sec. 1305(b)-(e)] Same provision for
7955(b)-(e)]
Average Crop Revenue program. [Sec. 1402(b)-(e)]
Planting Flexibility
Any crop may be planted on base acres, except
Same as current law, and incorporates peanuts as a
Same as current law, but the exception allows
restrictions are placed on planting of fruits,
covered commodity. [Sec. 1106(a)-(c)]
planting mung beans and pulse crops. [Sec. 1106(a)-
vegetables, and wild rice on base acres. Penalties
(c)] Same provision for peanuts. [Sec. 1306(a)-(c)]
apply if the fruit and vegetable restriction is violated.
Same provision for Average Crop Revenue program.
Provides an exception for lentils, mung beans, and
[Sec. 1403(a)-c)]
dry peas. Exceptions provided for farms and
producers with a history of double-cropping or
history of growing fruits and vegetables (except that
direct and counter-cyclical payments are reduced
acre for acre for the year). [7 U.S.C. 7916] Same
provision for peanuts. [7 U.S.C. 7956]
No comparable provision.
Establishes a pilot Farm Flex project for planting
Same as House provision for traditional direct and
tomatoes for processing on up to 10,000 base acres in
counter-cyclical program participants, except applies
Indiana during the 2008-2012 crop years. Base acres
only to 2008 and 2009 crop years. [Sec. 1106(d)]
temporarily reduced for each acre of tomatoes, and
No comparable provision for peanut base acres in
are protected for future use. [Sec. 1106(d)]
Sec. 1306.

---

CRS-12
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
No comparable provision.
For participants in the ACR program, establishes
pilot Farm Flex project for planting any fruit or
vegetable for processing on up to 10,000 acres in
certain states (IL, IN, IA, MI, MN, OH, WI).
Available for the 2010-2012 crop years. Base acres
temporarily reduced for each acre of fruit and
vegetables, and protected for future use. [Sec.
1403(d)]
Direct Payments
Direct payments: available to producers on farms
Direct payments: Extends current law to cover
Direct payments: Extends current law to cover
with payment yields and base acres. Covers 2002-
2008-2012 crop years. [Sec. 1102(a)]
2008-2012 crop years. Excludes participants in the
2007 crop years. [7 U.S.C. 7913(a)] Direct payments
ACR program under Sec. 1401. [Sec. 1103(a)]
for peanuts authorized separately. [7 U.S.C. 7953(a)]
Direct payments for peanuts authorized separately.
[Sec. 1303(a)]
Direct payment rates:
Same as current law; incorporates peanuts. [Sec.
Same as current law, except differentiates between
Wheat, bushel (bu.), $0.52
1102(b)]
long grain rice and medium grain rice (both at $2.35
Corn, bu., $0.28
per cwt.). [Sec. 1103(b)]
Grain sorghum, bu., $0.35
Barley, bu., $0.24
Peanuts, ton, $36 [Sec. 1303(b)]
Oats, bu., $0.024
Upland cotton, lb., $0.0667
Rice, cwt., $2.35
Soybeans, bu., $0.44
Other oilseeds, lb., $0.0080
[7 U.S.C. 7913(b)]
Peanuts, ton, $36 [7 U.S.C. 7953(b)]
Payment amount = Payment rate, times 85% of base
Same as current law. [Sec. 1102(c)]
Same as House provision. [Sec. 1103(c)]
acres, times direct payment yield. [7 U.S.C. 7913(c)]
Same formula for peanuts. [7 U.S.C. 7953(d)]
Timing: Generally paid after October 1 of the
Timing: Same as current law, except (1) applies to
Same as House provision. [Sec. 1103(d)]
calendar year of the year of harvest. Advance
peanuts, and (2) the 22% advance payment option
payments up to 50% (later reduced to 22% by P.L.
applies only to crop years 2008-2011. No advance
109-171) beginning as early as December 1 of the
payment for crop year 2012 and thereafter. [Sec.

---

CRS-13
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
calendar year before harvest, at the option of the
1102(d)]
producer. [7 U.S.C. 7913(d)] For peanuts: generally,
before October 1 of the year of harvest. Similar
advance payments. [7 U.S.C. 7953(e)]
Counter-Cyclical Payments
Counter-cyclical payments: if the effective price
Counter-cyclical payments: same as current law,
Counter-cyclical payments: same as current law,
for a covered commodity is less than the target price,
except it covers 2008-2012 crop years. [Sec.
except it covers 2008-2012 crop years. Excludes
a payment is available to producers on farms with
1103(a)]
participants in the ACR program. [Sec. 1104(a)]
payment yields and base acres. Covers 2002-2007
Counter-cyclical payments for peanuts authorized
crop years. [7 U.S.C. 7914(a)] Counter-cyclical
separately. [Sec.1304(a)]
payments for peanuts authorized separately.
[7 U.S.C. 7954(a)]
Effective price: the higher of (1) the national season
Same as current law, except applies to peanuts and
Same as current law, except computed for rice using
average market price or (2) national average loan rate
clarifies that effective price for rice and barley are to
prices by type of rice. [Sec. 1104(b)] Same as
plus the direct payment rate. [7 U.S.C. 7914(b)]
be computed notwithstanding separate loan rates by
current law for peanuts. [Sec. 1304(b)]
Same provision for peanuts. [7 U.S.C. 7954(b)]
type of rice or barley. [Sec. 1103(b)]
Target prices for 2004-2007 crop years:
Target prices:
Target prices:
Wheat, bu., $3.92
Wheat, bu., $4.15
Wheat, bu., $4.20
Corn, bu., $2.63
Corn, bu., $2.63
Corn, bu., $2.63
Grain sorghum, bu., $2.57
Grain sorghum, bu., $2.57
Grain sorghum, bu., $2.63
Barley, bu., $2.24
Barley, bu., $2.73
Barley, bu., $2.63
Oats, bu., $1.44
Oats, bu., $1.50
Oats, bu., $1.83
Upland cotton, lb., $0.7240
Upland cotton, lb., $0.70
Upland cotton, lb., $0.7225
Rice, cwt., $10.50
Rice, cwt., $10.50
Long grain rice, cwt., $10.50
Medium grain rice, cwt., $10.50
Soybeans, bu., $5.80
Soybeans, bu., $6.10
Soybeans, bu., $6.00
Other oilseeds, lb., $0.1010
Other oilseeds, lb., $0.1150
Other oilseeds, cwt., $12.74
Peanuts, ton, $495 [Sec. 1103(c)]
Dry peas, cwt., $8.33
(Different target prices applied to 2002-2003 crop
Lentils, cwt., $12.82
years). [7 U.S.C. 7914(c)]
Small chickpeas, cwt., $10.36
Peanuts, ton, $495 [7 U.S.C. 7954(c)]
Large chickpeas, cwt., $12.82 [Sec. 1104(c)]
Peanuts, ton, $495 [Sec. 1304(c)]

---

CRS-14
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Payment amount = target price minus effective
Same as current law. [Sec. 1103(d)-(e)]
Same as current law. [Sec. 1104(d)-(e)]
price (if the difference is greater than 0), times 85%
Same formula for peanuts. [Sec. 1304(d)-(e)]
of base acres, times counter-cyclical payment yield.
[7 U.S.C. 7913(d)-(e)] Same formula for peanuts.
[7 U.S.C. 7954(d)-(f)]
Timing: generally, after the end of the 12-month
Timing: generally, the later of (1) the end of the 12-
Timing: generally, beginning October 1 after the end
marketing year. Advance payments are available; for
month marketing year, or (2) October 1 of the same
of the marketing year. Advance payments same as in
the 2007 crop year, one advance payment of 40% of
calendar year as the end of the marketing year.
House bill. [Sec. 1104(f)] Same provision for
expected payment after first six months of marketing
Advance payments for 2008-2010 crop years: one
peanuts. [Sec. 1304(f)]
year (for 2002-2006, two advance payments, each
advance payment of 40% after first six months of
35% of the expected payment, in October of harvest
marketing year. No advance payments after 2010
year, and after February 1 of the next calendar year).
crop year. [Sec. 1103(f)]
[7 U.S.C. 7914(f)] Same provision for peanuts.
[7 U.S.C. 7954(g)]
Revenue-Based Counter-Cyclical Payments
No comparable provision.
Revenue-based Counter-Cyclical Payments
Average Crop Revenue (ACR) program: an
(RCCP): an alternative to traditional counter-cyclical
alternative to traditional direct payments, counter-
payments. Covers crop years 2008-2012. Producers
cyclical payments, and nonrecourse marketing loans
have one opportunity to elect RCCP option soon after
for covered commodities and peanuts. Producers
enactment. Traditional counter-cyclical payments
have one opportunity to elect ACR option: for 2010-
remain the default if no election is made. [Sec.
12 crop years, 2011-12. or 2012. Traditional
1104(a)]
programs remain the default if no election is made
[Sec. 1401(a)]
— No comparable provision. (Continue using
— Fixed payment component = $15 per acre times
traditional direct payments.)
100% of base acres. [Sec. 1401(b)(2)]
— Revenue-based payment if national actual
— Revenue-based component if actual state
revenue per acre is less than the national target
revenue is less than a guaranteed level for the
revenue per acre for the covered commodity.
covered commodity. [Sec. 1401(b)(3)]
[Sec. 1104(b)]
— No comparable provision. (Continue using
— Recourse loans available on actual production of
traditional marketing loan program.)
a covered commodity. Loans must be repaid in full;
traditional nonrecourse loans, loan deficiency

---

CRS-15
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
payments, and marketing loan gains unavailable.
[Sec. 1401(f)]
National actual revenue per acre = national
Actual state revenue per acre = actual state yield,
average yield for the year times the higher of (1)
times the ACR harvest price. Actual state yield is the
national season average market price, or (2) loan rate.
actual quantity produced in the state during the crop
An all-rice and all-barley loan rate will be used for
year, divided by planted acres. ACR harvest price is
those commodities. [Sec. 1104(c)]
the harvest price used to calculate revenue under
Federal Crop Insurance program. [Sec. 1401(c)]
National target revenue per acre:
Average crop revenue guarantee per acre = 90%
Wheat, $149.92/acre
times the expected state yield per planted acre, times
Corn, $344.12/acre
the average of the pre-planting price for the crop year
Grain Sorghum, $131.28/acre
and the preceding 2 crop years. The expected state
Barley, $153.30/acre
yield for a crop year is projected from a trend using
Oats, $92.10/acre
1980-2006 data. The pre-planting price is the price
Upland cotton, $496.93/acre
used to calculate revenue under the Federal Crop
Rice, $548.06/acre
Insurance program, and cannot decrease or increase
Soybeans, $231.87/acre
more than 15% from the preceding year. [Sec.
Other oilseeds, $129.18/acre
1401(d)]
Peanuts, $683.83/acre
[Sec. 1104(d)]
National payment yield:
Wheat, 36.1 bu./acre
Corn, 114.4 bu./acre
Grain Sorghum, 58.2 bu./acre
Barley, 48.6 bu./acre
Oats, 49.8 bu./acre
Upland cotton, 634 lb./acre
Rice, 51.28 cwt./acre
Soybeans, 34.1 bu./acre
Other oilseeds, 1167.6 lb./acre
Peanuts, 1.496 ton/acre
[Sec. 1104(e)]

---

CRS-16
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
National payment rate = National target revenue
per acre minus national actual revenue per acre (if
difference greater than 0), divided by national
payment yield. [Sec. 1104(f)]
Payment amount = National payment rate, times
Revenue-based payment amount = the average
85% of base acres, times payment yield. [Sec.
crop revenue program guarantee minus the actual
1104(g)]
state revenue (if the difference is greater than 0),
times 85% of the base acres on the farm for the
covered commodity, times the ratio of the actual
production history (APH) on the farm divided by the
expected state yield, times 90%. This formula
multiplies a state-level payment rate per acre times
85% of base acres, then pro-rates the payment based
on the farm’s yield history compared to the expected
state yield; the payment is then reduced by 10%.
[Sec. 1401(e)]
Timing: Generally, the later of (1) the end of the 12-
Timing: Beginning October 1 after the end of the
month marketing year, or (2) October 1 of the same
marketing year for both the fixed payment and the
calendar year as the end of the marketing year.
revenue-based component. No advance payments.
Advance payments for 2008-2010 crop years: 40% of
This delays the ACR direct payment component one
expected payment after the first six months of the
year compared to traditional direct payments. [Sec.
marketing year. No advance payments after 2010
1401(b)(4)]
crop year. [Sec. 1104(h)]
Nonrecourse Marketing Loans and Other Recourse Loans
Nonrecourse marketing loans: available for any
Same as current law, except it covers 2008-2012 crop
Same as current law, except it covers 2008-2012 crop
amount of a loan commodity produced in crop years
years, and includes peanuts. [Sec. 1201(a)-(d)]
years, and excludes participants in the ACR program.
2002-2007. Addresses commingled commodities,
[Sec. 1201] Nonrecourse marketing loans for
and requires compliance with conservation and
peanuts authorized separately. [Sec. 1303(a)(1)-(4)]
wetlands requirements. [7 U.S.C. 7931] Nonrecourse
marketing loans for peanuts authorized separately.
[7 U.S.C. 7957(a)(1)-(3)]
For peanuts, nonrecourse marketing loans available
Same as current law, except it covers 2008-2012 crop
For peanuts, same as House provision [Sec.
in crop years 2002-2007. May be obtained through
years, and payment for peanut storage costs is not
1307(a)(5)-(6), (8)], except it authorizes payment of

---

CRS-17
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
marketing cooperative or association approved by
authorized. [Sec. 1201(e)]
storage, handling, and associated costs, and does so
USDA. Storage to be provided on a non-
in such a way that handling and associated costs are
discriminatory basis and under any additional
not deducted from a producer’s loan, but instead
requirements. Payment of peanut storage costs
advanced when peanuts are placed under loan and
authorized for 2002-2006 crops. [7 U.S.C.
repaid when peanuts are redeemed. [Sec. 1307(a)(7)]
7957(a)(4)-(7)]
Loan rates for 2004-2007 crop years:
Loan rates:
Loan rates:
Wheat, bu., $2.75
Wheat, bu., $2.94
Wheat, bu., $2.94
Corn, bu., $1.95
Corn, bu., $1.95
Corn, bu., $1.95
Grain sorghum, bu., $1.95
Grain sorghum, bu., $1.95
Grain sorghum, bu., $1.95
Barley, bu., $1.85
Malt barley, bu., $2.50
Barley, bu., $1.95
Feed barley, bu., $1.90
Oats, bu., $1.33
Oats, bu., $1.46
Oats, bu., $1.39
Upland cotton, lb., $0.52
Base quality upland cotton, lb., $0.52
Base quality upland cotton, lb., $0.52
Extra long staple cotton, lb., $0.7977
Extra long staple cotton, lb., $0.7977
Extra long staple cotton, lb., $0.7977
Rice, cwt., $6.50
Long grain rice, cwt., $6.50
Long grain rice, cwt., $6.50
Medium & short grain rice, cwt., $6.50
Medium grain rice, cwt., $6.50
Soybeans, bu., $5.00
Soybeans, bu., $5.00
Soybeans, bu., $5.00
Other oilseeds, lb., $0.0930
Other oilseeds, lb., $0.1070
Other oilseeds, cwt., $10.09
Dry peas, cwt., $6.22
Dry peas, cwt., $5.40
Dry peas, cwt., $5.40
Lentils, cwt., $11.72
Lentils, cwt., $11.28
Lentils, cwt., $11.28
Small chickpeas, cwt., $7.43
Small chickpeas, cwt., $8.54
Small chickpeas, cwt., $7.43
Large chickpeas, cwt., $11.28
Graded wool, lb., $1.00
Graded wool, lb., $1.10
Graded wool, lb., $1.20
Nongraded wool, lb., $0.40
Nongraded wool, lb., $0.40
Nongraded wool, lb., $0.40
Mohair, lb., $4.20
Mohair, lb., $4.20
Mohair, lb., $4.20
Honey, lb., $0.60 (Different loan rates applied to
Honey, lb., $0.60
Honey, lb., $0.72 [Sec. 1202(a)]
2002-2003 crop years.) [7 U.S.C. 7932(b)]
Peanuts, ton, $355.00 [Sec. 1202(a)]
Peanuts, ton, $355 [Sec. 1307(b)]
Peanuts, ton, $355 [7 U.S.C. 7957(b)]
Adjustment of loans: establish a single loan rate in
Same as current law. [Sec. 1202(b)]
Same as current law. [Sec. 1202(b)]
each county for each kind of “other oilseeds”
[7 U.S.C. 7932(c)]
No comparable provision.
Establish a single county loan rate for corn and grain
Same as House provision [Sec. 1202(d)]
sorghum in each county; establish a single national

---

CRS-18
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
average loan rate for corn and grain sorghum.
[Sec. 1202(c)(1)]
No comparable provision.
Administer the applicable loan, marketing loan,
Same as House provision, except does not
counter-cyclical and related programs using a single
specifically apply to counter-cyclical program.
loan rate for corn and grain sorghum that is identical
[Sec. 1210(e)]
in each individual county. Any adjustment for
location based on transportation shall be the same for
corn and grain sorghum in each individual county.
Allows adjustments for grade, type, and quality.
[Sec. 1202(c)(2)]
Authorizes adjustments in the loan rates for any
Amends current law by excepting cotton and rice
Same as House provision, except removes warehouse
commodity based on differences in grade, type,
from the general provision for adjustment, with
location differentials, and requires private sector
quality, location, and other factors. Allows county
separate adjustment rules for cotton and rice.
consultation for cotton. [Sec. 1210(a)-(d), (f)] Same
loan rates as low as 95% of the U.S. average, if it
Encourages private sector consultation for cotton.
as current law for peanuts. [Sec. 1308]
does not increase outlays; prohibits adjustment of
For rice, prohibits adjustments except for grade and
U.S. average loan rate. [7 U.S.C. 7282]
quality. [Sec. 1505]
Establish quality grades for dry peas as U.S. feed
No comparable provision.
Establishes grading basis for pulse crops based on a
peas; for lentils as U.S. number 3 lentils; and for
grade not less than grade number 2 or other factors,
small chickpeas as U.S. number 3 small chickpeas
including fair and average crop quality (adjusted to
that drop below a 20/64 screen. [7 U.S.C. 7932(d)]
reflect normal discounts for less than number 2
quality). [Sec. 1202(c)]
Term of loans: nine months after the day the loan is
Same as current law. [Sec. 1203]
Same as current law. [Sec. 1203 ] Same provision
made; no extensions. [7 U.S.C. 7933] Same term for
for peanuts. [Sec. 1307(c)]
peanuts. [7 U.S.C. 7957(c)]
Loan repayment: loans may be repaid at the lesser
Same as current law, except delineates long, medium,
Same as current law, except delineates long and
of (1) the loan rate plus interest, or (2) a rate
and short grain rice. [Sec. 1204(a)]
medium grain rice. [Sec. 1204(a)]
determined by USDA that will minimize forfeitures,
Same provision for peanuts. [Sec. 1307(d)]
accumulation of stocks, storage costs, market
impediments, and discrepancies in benefits across
States and counties. Excludes upland cotton, rice,
ELS cotton, confectionery and each other kind of
sunflower seed (other than oil sunflower seed).
[7 U.S.C. 7934(a)] Same provision for peanuts.

---

CRS-19
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
[7 U.S.C. 7957(d)]
For upland cotton and rice, repayment may be at the
Same as current law, except delineates long, medium,
Same as current law, except delineates long and
lesser of the loan rate plus interest, or the prevailing
and short grain rice. [Sec. 1204(b)]
medium grain rice. [Sec. 1204(b)]
world price for the commodity adjusted to U.S.
quality and location. [7 U.S.C. 7934(b)]
For ELS cotton, repayment must be at the loan rate
Same as current law. [Sec. 1204(c)]
Same as current law. [Sec. 1204(c)]
plus interest. [7 U.S.C. 7934(c)]
Prevailing world market prices for cotton and rice are
Same as current law, except specifies that the Far
Same as current law, except delineates long and
determined and announced under USDA regulations,
East price be used to determine the prevailing world
medium grain rice. [Sec. 1204(d)]
adjusted to U.S. quality and location. [7 U.S.C.
market price. [Sec.1204(d)]
7934(d)]
Prevailing world market price for upland cotton
Provides for adjustment to prevailing world market
No comparable provision.
adjusted if (a) it is less than 115% of the loan rate;
prices for rice and upland cotton. For rice, for U.S.
and (b) the Friday through Thursday average price
quality and condition. For upland cotton, for U.S.
for the lowest priced U.S. growth for Middling (M) 1
quality and location (premiums for Comparable
3/32-inch cotton delivered C.I.F. Northern Europe is
United States Quality and reduction to United States
greater than the Friday through Thursday average
Premium Factor higher than Middling 1 3/32-inch;
price of five lowest-priced growths of upland cotton,
and costs to market the commodity. [Sec. 1204(e)]
as quoted for Middling (M) 1 3/32-inch cotton
delivered C.I.F. Northern Europe. [7 U.S.C.
7934(e)(1)]
Prevailing world market price for upland cotton
Adjusts prevailing world market price for upland
Same as House provision, except the further
further adjusted based on data including U.S. share of
cotton further to minimize loan forfeitures and
adjustment is to U.S. quality and location. With
world exports, level of export sales and shipment,
accumulation of stocks, improve marketing, and
respect to transition, uses the term “insufficient”
and other data USDA determines relevant. [7 U.S.C.
ensure competitiveness and transition between
current-crop price quotations, rather than “less than
7934(e)(2)]
current-crop and future-crop price quotations.
three” current-crop price quotations in the House bill.
[Sec. 1204(f)]
[Sec. 1204(e)]
For confectionary and other kinds of sunflower seeds
Same as current law. [Sec. 1204(g)]
Same as current law. [Sec.1204(f)]
(other than oil sunflower seed), loans may be repaid
at the lesser of (1) the loan rate plus interest, or (2)
the repayment rate for oil sunflower seed. [7 U.S.C.
7934(f)]

---

CRS-20
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
For dry peas, lentils, and small chickpeas, loans shall
Same as current law. [Sec. 1204(h)]
For pulse crops, loans shall be repaid at the quality
be repaid at the quality grades for the applicable
grades for the applicable commodity as specified in
commodity specified in 7 U.S.C. 7932(d). [7 U.S.C.
Sec. 1202(c). [Sec. 1204(g)]
7934(g)]
Loan deficiency payments (LDP): available to
Same as current law, except for 2008-2012 crop
Same as House provision, except that for the 2008
producers who agree to forego marketing loans. LDP
years. [Sec. 1205]
crop year the payment rate is established as of the
computed by multiplying the payment rate (the
date that producers lose beneficial interest. [Sec.
amount that the loan rate exceeds the rate at which a
1205] Same provision for peanuts. [Sec. 1307(e)]
marketing loan may be repaid) for the commodity
times the quantity of the commodity produced. Loan
deficiency payments available for unshorn pelts or
hay and silage, even though they are not eligible for
marketing loans. ELS cotton is not eligible. Payment
rate determined using the rate in effect as of the date
that producers request payment (producers do not
need to lose beneficial interest). [7 U.S.C. 7935 ]
Same provision for peanuts. [7 U.S.C. 7957(e)]
Payments in lieu of LDP for grazed acreage of wheat,
Same as current law. [Sec. 1206]
Same as current law. [Sec. 1206]
barley, oats, or triticale. [7 U.S.C. 7936]
Special Marketing Loan Provisions for Upland
Same as current law, except uses Far East price.
Same as House provision, except specifies the price
Cotton: imposes a special import quota on upland
Special import quota defined. Limits imports under
of American cotton “delivered to a definable and
cotton when U.S. prices exceed Northern European
quota to 10 weeks of consumption by domestic mills.
significant international market.” [Sec. 1207(a)]
prices by more than 1.25¢ for four weeks. [7 U.S.C.
[Sec. 1207(a)]
7937(b)]
Limited global import quota is imposed on upland
Same as current law. [Sec. 1207(b)]
Same as current law. [Sec. 1207(b)]
cotton when U.S. prices average 130% of the
previous three-year average of U.S. prices [7 U.S.C.
7937(c)]
No comparable provision.
Provides Economic Adjustment Assistance to Users
Provides Economic Adjustment Assistance to Users
of Upland Cotton via marketing certificates or cash
of Upland Cotton via assistance of 4¢/lb. to domestic
payments of 4¢/lb. to domestic upland cotton users
users of upland cotton for uses of all cotton
for all cotton uses regardless of origin for acquisition,
regardless of origin for the same purposes as the
construction, installation, modernization,
House provision. Effective August 1, 2008, through

---

CRS-21
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
development, conversion, or expansion of land, plant,
June 30, 2013; payment rate drops to 0¢ on July 1,
buildings, equipment, facilities, or machinery.
2013, which terminates future funding.
Effective through July 31, 2013. [Sec. 1207(c)]
[Sec. 1207(c)]
Special competitiveness program for ELS cotton
Same as current law. [Sec. 1208]
Same as current law, except it does not specify form
provides marketing certificates or cash payments
of payment (cash or certificates). [Sec. 1208]
available to domestic users and exporters whenever
the world market price for the lowest priced ELS
cotton is below the prevailing U.S. price for a
competing growth of ELS cotton for a four-week
period; and the lowest priced competing growth of
ELS cotton is less than 134% of the loan rate for ELS
cotton. Effective May 13, 2002, through July 31,
2008. [7 U.S.C. 7938]
Recourse loans for high moisture feed grains and
Same as current law. [Sec. 1209]
Same as current law. [Sec. 1209]
seed cotton: for farms that normally harvest corn or
sorghum in a high moisture condition, recourse loans
are available at rates set by the USDA. Recourse
loans for seed cotton. Repayment at loan rate plus
interest. [7 U.S.C. 7939]
No comparable provision.
Requires a deadline for peanut loan repayment no
No comparable provision.
later than June 30 of the year subsequent to the year
in which the peanuts were harvested. Loan not
redeemed by the deadline are deemed forfeited.
[Sec. 1210]
No comparable provision.
Authorizes quality incentive payments for healthy
Similar to House provision, except it has fewer
oilseeds with special traits to enhance human health.
requirements for proposals, does not specify multi-
Provides for discretionary appropriations of such
year contracts, and provides for protection of
sums as necessary. Crop years 2009-2013. USDA to
proprietary information. Does not specify crop years,
solicit proposals; successful applicants enter contracts
but authorizes discretionary appropriations of $400
with producers and are reimbursed after premiums
million for the period FY2008-12. [Sec. 1705]
paid to producers. [Sec. 1211]

---

CRS-22
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Payment Limits
Establishes payment limits on direct payments,
Continues limits for direct payments and counter-
Continues limits for direct payments and counter-
counter-cyclical payments, and certain marketing
cyclical payments, as amended below. Deletes
cyclical payments, as amended below. Deletes
loan benefits under the Food Security Act of 1985, as
payment limit for marketing loan program.
payment limit for marketing loan program.
amended, to a “person” as broadly defined below [7
Establishes direct attribution to natural person;
Establishes direct attribution to natural person;
U.S.C. 1308-1308-3(a)]
eliminates 3 entity rule. [Sec. 1503]
eliminates 3 entity rule. [Sec. 1703(a)]
Person: defined as an individual, partner in a general
Person: “a natural person, and does not include a
Person: same as House definition. [Sec. 1703(b)(2)]
partnership or joint venture, trust, corporation, joint
legal entity.” [Sec. 1503(b)(1)]
stock company, limited partnership, association,
charitable organization, State agency, or political
subdivision (except cooperative producer
associations). [7 U.S.C. 1308(e)]
No comparable definition.
Legal entity: an entity created under federal or state
Legal entity: same as House definition. [Sec.
law that (1) owns land or an agricultural commodity,
1703(b)(2)]
or (2) produces an agricultural commodity.
No comparable definition.
No comparable definition.
Family member: “an individual to whom a member
in the farming operation is related as lineal ancestor,
lineal descendant, sibling, or spouse.”
[Sec. 1703(b)(1)]
Maximum amount of payments per year to a person
Maximum amount of payments per year to a person
Maximum amount of payments per year to a person
for the sum of all covered commodities:
or legal entity for the sum of all covered
or legal entity for the sum of all covered
commodities, except peanuts:
commodities, except peanuts:
— Direct payments: $40,000
— Direct payments: $60,000
— Direct payments/fixed ACR payment: $40,000
— Counter-cyclical payments: $65,000
— Counter-cyclical payments: $65,000
— Counter-cyclical payments and revenue-based
[Sec. 1503(a)(1)-(2)]
ACR payment: $60,000
— Marketing loan gains/LDP: $75,000
— Marketing loan gains/LDP: no limit.
— Marketing loan gains/LDP: no limit
[7 U.S.C. 1308(b)(1), (c)(1), (d)(1)]
[Sec. 1503(b)(2)]
[Sec. 1703(b)(2)]
Maximum payment amount per year to a person for
Maximum payment amount per year to a person or
Maximum payment amount per year to a person or
the sum of peanuts, wool, mohair, and honey:
legal entity for peanuts:
legal entity for peanuts:
— Direct payments: $40,000
— Direct payments: $60,000
— Direct payments/fixed ACR payment: $40,000

---

CRS-23
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
— Counter-cyclical payments: $65,000
— Counter-cyclical payments: $65,000
— Counter-cyclical payments, and revenue-based
[Sec. 1503(a)(1)-(2)
ACR payment: $60,000
— Marketing loan gains/LDP: $75,000 [7 U.S.C.
— Marketing loan gains/LDP: no limit [Sec.
— Marketing loan gains/LDP: no limit [Sec.
1308(b)(2), (c)(2), (d)(2)]
1503(b)(2)]
1703(b)(2)]
No comparable provision.
Direct attribution: the total amount of direct and
Direct attribution: same as House provision, except
counter-cyclical payments are attributed to a person
payments to a legal entity are reduced
by taking into account direct and indirect ownership
proportionately based on the ownership shares of a
in a legal entity. Payments made directly to a person
person or entity that exceeds the limit.
will be combined with the person’s pro rata share of
[Sec. 1703(b)(3)]
payments to a legal entity. Payments to a legal entity
shall not exceed the limits above, and shall be
attributed to persons with an ownership interest.
Attribution of payments to legal entities shall be
traced through four levels of ownership (ownership
of an entity by a person or another entity). If after
four levels of ownership, the payment has not been
allocated to a natural person, the payment to the
first-level entity shall be reduced on a pro-rata basis.
For joint ventures and general partnerships, payments
shall not exceed the multiple of the limits for the
number of persons and legal entities comprising the
joint venture or general partnership. [Sec.
1503(b)(2)]
Payments to minor children generally are attributed
Continue current law rules for minor children,
Same as House provision.
to parents; marketing coops are not subject to the
marketing cooperatives, trusts and estates, and cash
[Sec. 1703(b)(3)]
limits; trusts and estates qualify under certain rules;
rent tenants. [Sec. 1503(b)(2)]
cash rent tenants that make a significant contribution
of management but not of labor and equipment are
ineligible; spouses are treated together except under
certain conditions. [7 U.S.C. 1308(e)]
States and political subdivisions are allowed to
Makes federal agencies, states and political
Same as House provision, except has no new
receive payments under the definition of person.
subdivisions ineligible for payments, but tenants on
exception for state and local governments to receive
Payment limits do not apply to land owned by a
such government-owned land may receive payments.
payments to maintain a public school. Such an

---

CRS-24
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
public entity to maintain a public school.
An exception allows states and political subdivisions
exemption remains in current law provision (7 U.S.C.
[7 U.S.C. 1308(f)]
to receive payments to maintain a public school, but
1308(f)), which is redesignated as subparagraph (g).
payment limits apply [Sec. 1503(b)(2)]. However,
[Sec. 1703(b)(3)]
existing law (7 U.S.C. 1308(f)) remains in effect,
which exempts states and political subdivisions from
payment limits to maintain a public school.
Disqualifies a person from payments in the crop year
Disqualifies a person or entity for a 2-5 year period
Same as House provision, except adds joint and
if the person adopted a scheme or device to evade
for evasion of payment limit rules. Benefits denied
several liability for members of an entity regarding
payment limits. [7 U.S.C. 1308-2]
on a pro-rata basis according to ownership.
amounts payable to USDA, and authority for USDA
[Sec. 1503(b)(2)]
to release a person from liability if they cooperate.
[Sec. 1703(e)]
3-entity rule: no person may receive payments from
Repeals the 3-entity rule. Requires notification to
Same as House provision. [Sec. 1703(c)]
more than three entities in which the person holds
USDA, including names and social security number
substantial beneficial interest. [7 U.S.C. 1308-1(a)]
or tax identification number. [Sec. 1503(c)]
Requires a person or entity to be actively engaged in
Continues current law provisions and adds an
Same as House provision. [Sec. 1703(d)]
farming based on contributions of land, labor,
exception that if one spouse is determined to be
equipment, and management, and requires profits be
actively engaged, the other spouse shall be
commensurate and at risk. [7 U.S.C. 1308-1(b)]
determined to meet requirements of personal labor or
active personal management. [Sec. 1503(d)]
Adjusted Gross Income Limitation
No firm cap (a cap without exceptions).
Sets a firm AGI cap of $1 million (no exceptions) to
No firm cap.
be eligible to receive direct and counter-cyclical
payments, marketing loan gains or LDPs, and
conservation benefits. Applies through the 2012 crop
year. [Sec. 1504(b)(1)]
Sets a soft cap of $2.5 million Adjusted Gross
Sets a soft AGI cap of $500,000, unless 66.66% of
Sets a gradually-declining soft AGI cap for direct
Income Limitation (AGI) over a three-year average
the three-year average AGI is derived from farming,
payments, counter-cyclical payments, and marketing
for individuals or entities to be eligible to receive
ranching, or forestry operations. Applies through the
loan gains or LDPs, unless 66.66% of the three-year
program payments. Limit may be exceeded if at least
2012 crop year. [Sec. 1504(b)(1)]
average AGI is derived from farming, ranching, or
75% of the AGI is derived from farming, ranching,
forestry operations:
or forestry operations. Applies to direct payments,
— $2.5 million in crop year 2008,
counter-cyclical payments, marketing loan benefits,
— $1 million in 2009, and

---

CRS-25
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
and conservation program payments for the 2003-07
— $750,000 in 2010-2012 [Sec. 1704(c)]
crop years. [7 U.S.C. 1308-3a]
AGI cap for conservation programs same as for
AGI cap for conservation programs same as for
For conservation programs, continues current law
commodity programs.
commodity programs.
level of $2.5 million AGI, with exception for 75% of
AGI derived from farming, ranching or forestry.
[Sec. 1704(c)]
USDA determines types of income as derived from
Defines certain types of income as farming, ranching
Same as House provision, except does not limit sale
farming, ranching or forestry income. [7 U.S.C.
or forestry. Includes production of crops, livestock
of equipment to non-dealers and does not reference
1308-3a(b)(1)]
or raw forestry products; sale of land or rights; sale
depreciable equipment; includes income from water
of equipment but not as a dealer; rental of land;
or hunting rights; includes packing and shedding in
supplying inputs and services to farmers; processing,
processing and storing; and includes government
storing and transporting agricultural products. [Sec.
payments from commodity and conservation
1503(b)(3)]
programs. [Sec. 1704(c)]
No comparable provision.
No comparable provision.
Allows the allocation of AGI among the individuals
filing a joint tax return, under certain conditions.
[Sec. 1704(b)]
Administrative Provisions
Authorizes use of funds, facilities, and authorities of
Same as current law. [Sec. 1501]
Same as current law. [Sec. 1701]
the Commodity Credit Corporation (CCC) to carry
out Title I. Determinations by USDA shall be final.
Allows promulgation of regulations, and adjusting
expenditures if they will exceed allowable support
levels under the Uruguay Round Agreements. [7
U.S.C. 7991(a)-(c),(e)]
Advanced direct and counter-cyclical payments are
No comparable provision.
Same as current law. [Sec. 1701(e)]
taxable in the year received (rather than when
producer has option to receive payment). [7 U.S.C.
7991(d)]
Suspends the permanent price support authority of
Same as current law, except applies to 2008-2012
Same as House provision, except does not mention
the Agricultural Adjustment Act of 1938 and the
crop years, and milk through December 31, 2012.
peanuts in paragraph (a). [Sec. 1702]
Agricultural Adjustment Act of 1949 for the 2002-07
[Sec. 1502]

---

CRS-26
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
crops (covered commodities, peanuts, and sugar), and
for milk through December 31, 2007. [7 U.S.C.
7992]
Exempts producers from liability for certain
Same as current law. [Sec. 1506]
Same as current law. [Sec. 1709]
deficiencies in collateral to secure any nonrecourse
loan. [7 U.S.C. 7284]
Authorizes the use of commodity certificates,
Same as current law. [Sec. 1507]
Same as current law. [Sec. 1710]
including to repay marketing loans. [7 U.S.C. 7286]
Requires that assignment of payments must be done
Same as current law. [Sec. 1508]
Same as current law. [Sec. 1711]
in accordance with USDA regulations. [7 U.S.C.
7995]
Requires tracking of program benefits under
Same as current law. [Sec. 1509]
No comparable provision.
commodity and conservation titles that are made
directly or indirectly to individuals and entities.
[7 U.S.C. 7997]
Provide payment of storage for upland cotton, as
Ends the practice of paying for upland cotton storage,
Requires payment of cotton storage costs in same
allowed under general authorities of the CCC.
handling and other costs starting with the 2011 crop.
manner and at same rates as was provided for the
[7 C.F.R. 1427.19(h)]
[Sec. 1510]
2006 crop, effective for 2008-12 crop years.
[Sec. 1204(h)]
Prohibits publication of cotton price forecasts in any
Strikes the current law prohibition on the publication
Same as House provision. [Sec. 1714]
governmental report, or bulletin. [12 U.S.C. 1141j]
of cotton price forecasts. [Sec. 1511]
Allows payments to estates of deceased farmers [7
Requires reports to Congress of deceased persons
Prohibits any agricultural payment to any deceased
U.S.C. 1308(e)(2)(B)(ii)], but without reference to a
that received payments for more than two crop years
individual or estate after two program years after the
time period. USDA regulations establish a two-year
following death. Establishes deadlines for
date of death. Require annual reports to Congress on
period for estates to qualify. [7 C.F.R. 1400.206]
notification of death, and denies payments and
the number and amount of payments to deceased
recoup losses for failure to comply. Reconcile tax
individuals and the length of time the estate has been
identification numbers with Internal Revenue Service
open. [Sec. 11073]
(IRS) data twice a year to determine living status.
[Sec. 1512]

---

CRS-27
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Provide incentive payments to producers of hard
No comparable provision.
Provides incentive payments to producers of hard
white wheat on up to 2 million acres. Total
white wheat of at least $20¢/bu. and at least $2/acre
mandatory funding of $20 million for the 2003-2005
on up to 2.9 million acres. Mandatory funding of
crop years. [7 U.S.C. 7999]
$35 million for the 2008-12 crop years. [Sec. 1706]
No comparable provision.
No comparable provision.
Authorizes compensation up to 50% of the cost of
fungicides to control wheat scab in durum wheat.
Authorize $10 million per year for FY2008-12,
subject to appropriation. [Sec. 1707]
Provides farm storage facility loans under USDA
No comparable provision.
Establishes a storage facility loan program for
regulations via the general authorities of the CCC.
producers of grains, oilseeds, pulse crops, hay,
For commodities other than sugar, maximum term of
renewable biomass, and other storable commodities
loan is seven years and $100,000 per borrower. [7
(other than sugar) to construct or upgrade storage and
C.F.R. 1436]
handling facilities. Provides for 12-year terms and
$500,000 maximum loans, as well as security and
eligibility requirements. [Sec. 1708]
Authorizes cotton classification services be available
Revises the authorization for cotton classification
Revises the authorization for cotton classification
to producers of cotton, and for the collection of fees
services through FY2012 to include leasing of
services for an indefinite time period, including
and appropriations to pay for such services. [7 U.S.C.
property exceeding five years. [Sec. 11302]
consultation with the cotton industry, investment of
473a]
funds, and long term lease of property. Provides
authorization for appropriations. [Sec. 1712]
Defines cotton-producing state, for purposes of a
Revises definition of cotton-producing state to
Same as House provision. [Sec. 1713]
cotton research and promotion, using a historical
explicitly include Kansas, Virginia, and Florida
measure of production. [7 U.S.C. 2116(f)]
beginning with the 2008 crop. [Sec. 11301]
Instructs USDA to appoint committees of farmers in
No comparable provision.
For combined or consolidated area committees,
a fair and representative manner. [16 U.S.C.
requires 3-11 members that are representative of the
590h(b)(5)(B)(ii)]
area and elected, and ensures representation of
socially disadvantaged farmers. [Sec. 1715]
Authorizes USDA to collect commodity assessments
No comparable provision.
Prohibits USDA from charging fees for the collection
from proceeds of marketing assistance loans, if
of commodity assessments in its agreement with the
required under state law. [7 U.S.C. 7416a]
State. [Sec. 1716]
No comparable provision.
No comparable provision.
Requires that, if USDA approves a document

---

CRS-28
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
containing signatures of applicants, it shall not
subsequently determine the document to be
inadequate or invalid. [Sec. 1717]
No comparable provision.
No comparable provision.
Requires USDA to modernize the Farm Service
Agency information technology systems to ensure
timely and efficient program delivery. [Sec. 1718]
No comparable provision.
No comparable provision.
Requires USDA to consolidate geospatial database
systems into a single system that is readily available
to all agencies within two years of enactment.
[Sec. 1719]
No comparable provision.
No comparable provision.
Allows the CCC to lease space for USDA agencies if
the space is jointly occupied by the agencies.
[Sec. 1720]
Establishes a “Commission on the Application of
No comparable provision.
Repeals the authorization for the payment limits
Payment Limitations for Agriculture.” [7 U.S.C.
commission. [Sec. 1721(a)]
7993]
Authorizes market loss assistance and other
No comparable provision.
Repeals market loss assistance and other emergency
emergency assistance to persons that were eligible to
assistance to persons that failed to receive assistance
receive assistance but did not receive assistance
under earlier authorities. [Sec. 1721(b)]
before a certain date. [7 U.S.C. 8000]
DAIRY (TITLE I)
Dairy Price Support Program
Mandatory support for farm price of milk at $9.90
Mandates the direct support of cheese, nonfat dry
Similar to the House bill.
per hundredweight (cwt.). Program authority expired
milk, and butter at specified prices for five years
[Secs. 1601(a)-(b)]
on December 31, 2007, but was extended until March
(through December 31, 2012). This is a change from
15, 2008 by P.L. 110-161. [7 U.S.C. 7981a-c]
supporting the farm price of milk. [Secs. 1401(a)-(b)]
Farm support price of $9.90 indirectly maintained by
Specifies minimum purchase prices of: block cheese,
Similar to the House bill.
USDA offer to purchase butter, cheese, and nonfat
$1.13/lb.; barrel cheese, $1.10/lb.; butter, $1.05/lb.;
[Secs. 1601(b)-(c)]
dry milk from processors at prices determined by
and nonfat dry milk, $0.80/lb (same levels currently
USDA that allow buyers to pay farmers at least the
used to support the prices at $9.90 per cwt.) Allows

---

CRS-29
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
support price. [7 U.S.C. 7981a-c]
USDA sale of acquired products when market prices
rise to 110% of purchase price. [Sec. 1401(b)]
No more than twice annually, USDA can adjust the
Allows reduction of mandated purchase prices when
No comparable provision.
purchase prices of butter and nonfat dry milk (reduce
USDA acquisitions exceed specified levels. [Sec.
one and raise the other) in order to minimize
1401(c)]
acquisitions. [7 U.S.C. 7981d]
Milk Income Loss Contract Payments
The 2002 farm bill mandated a new counter-cyclical
Extends the MILC program for five years, through
Increases, through August 31, 2012, the payment rate
payment program, the Milk Income Loss Contract
September 30, 2012, at the current target price of
to 45%, and raises the cap on eligible annual
(MILC) program. When the monthly fluid milk price
$16.94/cwt. Payment rate remains at 34% of any
production to 4.15 mil. lbs. per farm. Payment rate
falls below $16.94/cwt., all dairy farmers are paid an
deficiency between the market price and the target
and production cap would return to 34% and 2.4 mil.
amount equal to 34% of the difference between
price, and eligible production continues to be capped
lbs. for the last month of program authority in
$16.94 and the lower market price. Payments per
at 2.4 mil. lbs. per farm per year. [Sec. 1406]
September 2012. [Sec. 1602]
farm are limited to 2.4 million lbs. of annual
production. MILC authority expired Sept. 30, 2005,
but several subsequent extensions continue it through
March 15, 2008. [7 U.S.C. 7982]
Dairy Forward Pricing Program
The FY2000 omnibus appropriations act authorized a
Authorizes a dairy forward pricing program similar
Similar to the House bill. [Sec. 1606]
pilot dairy forward pricing program implemented
to the pilot program of 2000-2004. Price paid by
from mid-2000 until its required expiration date of
milk handlers under the contracts are deemed to
December 31, 2004. It exempted handlers from
satisfy the minimum price requirements of federal
having to pay farmers the federal order price when
milk marketing orders. Applies only to milk
the forward contract price turns out to be lower.
purchased for manufactured products (Classes II, III,
[7 U.S.C. 627]
and IV), and excludes milk purchased for fluid
consumption (Class I). Allows for new contracts
until September 30, 2012, but no contract can extend
beyond September 30, 2015. [Sec. 1402]
Dairy Export Incentive Program
Provides cash bonus payments to U.S. dairy
Extends DEIP through December 31, 2012, with a
Extends DEIP through December 31, 2012. [Sec.
exporters, subject to World Trade Organization
reference to the Uruguay Round Agreements Act.
1603(a)]

---

CRS-30
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
obligations to limit export subsidies. No DEIP
[Sec. 1403]
bonuses have been awarded since FY2004.
Legislative authority expires March 15, 2008.
Intended to counter foreign (mostly EU) dairy
subsidies. [15 U.S.C. 713a-14(a)]
Dairy Indemnity Program
Authorizes payments to dairy farmers when a public
Extends the Dairy Indemnity Program through
Similar to the House bill. [Sec. 1603(b)]
regulatory agency directs removal of their raw milk
December 31, 2012. [Sec. 1405]
from the market because of contamination by
pesticides, nuclear radiation or fallout, or toxic
substances and other chemical residues. Expires
March 15, 2008. [7 U.S.C. 450l]
Dairy Promotion and Research Program
The Dairy Producer Stabilization Act of 1983
Extends promotion and research program authority
Extends program authority through Sep. 30, 2012.
authorized a generic dairy product promotion,
through Sep. 30, 2012. Amends the 1983 Act to
Does not address the issue involving the import
research, and nutrition education program, funded by
require producers in all 50 states, the District of
assessment. [Sec. 1604]
a mandatory 15¢/cwt assessment on milk
Columbia, and Puerto Rico to pay the 15¢/cwt
produced/marketed in the 48 contiguous states.
assessment. [Sec. 1407]
Assessment extended to imports by Sec. 1505 of
2002 farm bill. Import assessment never collected
because the exclusion of some states was considered
inconsistent with WTO rules. Expires March 15,
2008. [7 U.S.C. 4501-4514]
Federal Milk Marketing Orders
Federal milk marketing order rules issued by USDA
Creates a Federal Milk Marketing Order Review
Creates a Federal Milk Marketing Order Review
place requirements on the first buyers or handlers of
Commission to review and evaluate the current
Commission, with same overall functions and
milk, including paying at least minimum prices for
federal and similar state order systems. The 18-
purposes as the House bill, but with some differences
the milk depending on its end use. Permanent federal
member Commission is to consider legislative and
in the appointment of members and issues to be
authority to regulate the handling of milk was first
administrative options for: ensuring the
studied. [Sec. 1608]
provided in the Agricultural Adjustment Act of 1933,
competitiveness of farmers and processors, and
and subsequently revised by the Agricultural
simplifying and streamlining the federal order
Marketing Agreement Act of 1937, as amended. [7
system. Report is due within two years of the first

---

CRS-31
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
U.S.C. 601 et seq.]
meeting. [Sec. 1409]
When USDA amends federal orders, it must issue a
Revises order amendment procedures by placing time
Also revises amendment procedures by establishing a
notice of a hearing at least three days prior to the
constraints on USDA at various steps of the
timetable for certain actions, but with some
hearing.
amendment process. [Sec. 1404]
differences.
[7 U.S.C. 608c(17)]
[Sec. 1605]
In late April 2007, USDA announced an error in
Requires USDA, within 90 days of enactment, to
Similar to the House bill, except that the report is to
nonfat dry milk prices reported to them by
submit a report to Congress on price reporting
be filed with the House and Senate Agriculture
manufacturers over the previous 12 months. The
procedures for nonfat dry milk, and the effect these
Committees. [Sec. 1607)
error contributed to lower farm milk prices than
procedures have had on marketing order pricing
would otherwise have been the case.
since July 1, 2006. [Sec. 1408]
Mandatory Dairy Commodity Price Reporting
Dairy Market Enhancement Act of 2000 requires
No comparable provision.
Requires manufacturers to report sales transactions
manufacturers to report to USDA the price, quantity,
daily. Requires USDA to publish the data each
and moisture content of dairy products sold.
reporting day and compare it with other dairy market
[7 U.S.C. 1637b]
statistics on a quarterly basis. [Secs. 1609 and 1610]
SUGAR (TITLE I)
No-Net-Cost Directive
Requires USDA to operate the sugar nonrecourse
Retains current no-net-cost requirement.
Similar to the House bill. [Secs. 1501 and 1504(b)]
loan program at no net cost by avoiding sugar
[Secs. 1301, 1303(b), and 9013]
forfeitures to the CCC. [7 U.S.C. 7272 (g), 7 U.S.C.
1359bb (b), 7 U.S.C. 1359cc (b)(2)]
Price Support Levels, Loans and Payments
Sets raw cane and refined beet sugar loan rates at
Increases raw cane sugar and refined beet sugar loan
Increases raw cane sugar loan rate to 19.0¢/lb. in
18.0¢ and 22.9¢/lb. Expands loan eligibility to in-
rates to 18.5¢/lb. and 23.5¢/lb. Continues availability
1/4¢ increments beginning in FY2009. Sets beet
process sugars and syrups at 80% of the applicable
of non-recourse loans, makes loans available for
sugar loan at 128.5% of the raw cane rate (e.g.,
cane or beet loan rates. Nonrecourse loans have a
in-process sugar products on same loan terms, and
24.42¢/lb. in 2012). Other provisions identical to
nine-month repayment term. [7 U.S.C. 7272 (a, b, d,
retains current repayment term. [Sec. 1301]
House language. [Sec. 1501]
e, f)]
Authorizes CCC to accept bids from sugar processors
Continues in-kind authority. Stipulates that planted
Similar to the House bill. [Sec. 1501]
to purchase USDA-owned sugar in conjunction with
beets or cane diverted from production only be used

---

CRS-32
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
reduced production of new sugar crops. [7 U.S.C.
as bioenergy feedstock. [Sec. 1301]
7272 (g)]
USDA now pays storage rates of 8¢/cwt. for raw
No comparable provision.
Requires (through crop year 2011) USDA minimum
cane and 10¢ per cwt. for refined beet sugar that has
storage payment rates of 10¢/cwt. and 15¢/cwt. on
been forfeited under the nonrecourse loan program.
forfeited raw cane and refined beet sugar. [Sec.
[15 U.S.C. 714b & 714c; 7 CFR Part 1423]
1503]
Authorizes CCC to provide financing to processors
No comparable provision.
Retains authority, but stipulates that loans shall not
of domestic sugar to construct or upgrade storage and
require any prepayment penalty. [Sec. 1502]
handling facilities. [Sec. 1402]
Marketing Allotments and Allocations
To avert loan forfeitures, requires USDA to limit the
Continues purpose and structure of marketing
Similar to the House bill. [Sec. 1504 (a)-(c)]
amount of sugar processors can sell each year. This
allotments and allocations, but changes some key
is done through a national “overall allotment
provisions. Changes formula to require USDA to set
quantity” (OAQ) that is split between cane and beet
OAQ at not less than 85% of estimated human food
sectors, and allocated to individual processors. The
and beverage sugar use. Eliminates allotment
OAQ must accommodate WTO and NAFTA import
suspension provision.
commitments (1.532 million short tons), above which
[Sec. 1303 (a)-(c)]
it is suspended. [7 U.S.C. 1359aa, 1359bb, 1359cc,
and 1359dd]
Directs USDA to reassign unused raw cane and beet
Requires that any reassignment of unused cane and
Similar to the House bill. [Sec. 1504(e)]
sugar marketing allocations first to other cane states
beet allocations to imports must be met by imports
and beet processors, respectively; second to cane
“of raw cane sugar.” [Sec. 1303(e)]
processors within each state; third to sales of sugar in
CCC’s inventory; and fourth to imports. [7 U.S.C.
1359ee]
Sugar Provision Related to Bioenergy Programs — see section on Energy Programs (below)
Trade-Related Provisions
In accord with a 1994 trade commitment, USDA sets
Makes no changes to import quota commitments
Makes no changes to import quota commitments.
an annual global sugar import quota of not less than
found in various trade agreements and laws.
1.256 mil. short tons. USTR allocates the quota
among eligible countries, and also administers

---

CRS-33
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
preferential sugar import quotas for free trade
agreement partner countries. Effective January 1,
2008, Mexico can ship duty free an unlimited amount
of sugar to the U.S. market.
Requires USTR in 2002-07 to reallocate unused
Repeals requirement for reallocating sugar import
Similar to the House bill. [Sec. 1504 (i)]
country quota allocations to other quota-holding
quota shortfalls.
countries with sugar to sell. [7 U.S.C. 1359kk]
[Sec. 1303 (i)]
USDA has discretion to increase the size of global
Requires USDA to set quotas for raw cane and
Similar to the House bill. [Sec. 1504 (j)]
raw cane and refined sugar import quotas when
refined sugar at minimum level necessary to comply
domestic sugar supplies are inadequate to meet U.S.
with U.S. trade agreement obligations. In cases of
demand at reasonable prices. [Chapter 17, additional
sugar shortages, supplies are to be increased first by
note 5, of the U.S. Harmonized Tariff Schedule; 19
reassigning allotment deficits to imports of raw cane
CFR Part 2001, Subpart A]
sugar, second by increasing the refined sugar quota,
and third by increasing raw cane sugar quota.
To protect domestic sugar prices USDA regulated the
Requires USDA to establish “orderly shipping
No comparable provision.
flow of sugar imports from large quota holders
patterns” for major suppliers of sugar to the U.S.
(through 2005).
market. [Sec. 1303(i)]
The U.S.-Mexican agreement on bilateral market
No comparable provision.
Expresses sense of Senate that U.S. & Mexican
access for sugar and high-fructose corn syrup created
governments should coordinate their sugar policies to
an industry and government task force to address
be consistent with U.S. international commitments, to
problems that might arise after the elimination of
avoid disruptions of each country’s sweetener
tariffs on sweeteners on January 1, 2008. [Exchange
markets (sugar and high-fructose corn syrup). [Sec.
of Letters between USTR and Mexico’s Secretariat
1505]
of Economy, July 27, 2006]
The U.S. withdrew from the International Sugar
Requires the Secretary of Agriculture to work with
Similar to the House bill. [Sec. 1504]
Organization in 1992 because of opposition to the
the Secretary of State to restore U.S. membership in
allocation of country contributions to ISO’s budget.
the International Sugar Organization. [Sec. 1302]

---

CRS-34
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
SPECIALTY CROPS (TITLE X, HOUSE BILL; TITLE I, SENATE BILL )
Marketing and Trade Promotion, Consumer Access
The Specialty Crops Competitiveness Act of 2004
Reauthorizes the block grant program through
Contains an identical provision, except that funding
[P.L. 108-465, 7 U.S.C. 1621 note] established a
FY2012 and provides mandatory funding starting at
ends after FY2011. Specifies that turfgrass sod and
program of block grants to states to support projects
$60 million in FY2008, rising to $95 million in
herbal crops also are specialty crops.
in marketing, research, pest management, and food
FY2012. Increases the number of U.S. insular areas
[Sec. 1841]
safety, among other purposes. Authorizes $44.5
eligible to receive grants. [Sec. 10102]
million annually through FY2009.
The Farmer-to-Consumer Direct Marketing Act
Expands the types of activities that are eligible for
Reauthorizes the Farmers’ Market Promotion
established a Farmers’ Market Promotion Program
funding. Renames program the Farmer Marketing
Program and provides mandatory funds of $5 million
promote farmers’ markets, authorizing annual
Assistance Program. Provides annual mandatory
annually in FY2008-11, and $10 million in FY2012.
appropriations for grants to local governments, and
funds of $5 million (FY2008-10) and $10 million
[Sec. 1812]
nonprofit organizations. [7 U.S.C. 3005]
(FY2011-12). [Sec. 10404]
No comparable provision.
Authorizes grants to various public/private entities to
Similar to the House bill, but with minor technical
improve transporting specialty crops to markets.
differences. [Sec. 1842]
No comparable provision.
No comparable provision.
Requires the Government Accountability Office
(GAO) to investigate the impact on specialty crops of
lowering foreign trade barriers and to prepare a
strategy for addressing the issue. [Sec. 1831]
No comparable provision.
No comparable provision.
Encourages USDA and the U.S. Trade
Representative to increase attention to sanitary and
phytosanitary trade issues, and to develop a strategic
risk management framework. [Sec. 1833]
No comparable provision.
Establishes a grant program entitled the Healthy
Authorizes a grant program to establish a Healthy
Food Urban Enterprise Program to support feasibility
Food Enterprise Development Center, providing
studies on improving the access of underserved
information and technical assistance to entities to
communities to affordable, locally produced,
make affordable, locally produced, nutritious food
nutritious food. Authorizes annual appropriations for
available in underserved communities. Provides $1
this purpose. [Sec. 10405]
million in mandatory funds (FY2009); $2 million
annually (FY2010-12). [Sec. 1843]

---

CRS-35
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Specialty Crop Provisions Related to Nutrition Programs — see section on Nutrition Programs (below)
Organic Agriculture Production
The 2002 farm bill established a cost-share program
Provides a one-time (FY2008) transfer of $22 million
Similar to the House bill, and requires an annual
to help producers/handlers of organic products obtain
in mandatory crop insurance funds to continue the
report on cost-share expenditures in each state. [Sec.
certification under the National Organic Program
cost-share program, and raises the maximum amount
1823]
(NOP); provided a one-time transfer of $5 million in
a producer can receive from $500 to $750. [Sec.
mandatory crop insurance funds. [7 U.S.C. 1524]
10301]
The 2002 farm bill required USDA to keep
Provides $3 million in mandatory funds to support
Similar to the House bill and provides a one-time
segregated data on organic production and
data collection and analysis on organic production,
transfer of $5 million for segregated data collection
marketing. [7 U.S.C. 5925c]
marketing, pricing, and crop loss risk. [Sec. 10302]
and analysis. [Sec. 1821]
No comparable provision.
Authorizes $50 million subject to appropriations over
Provides for technical assistance and cost-sharing
the life of the farm bill to provide technical assistance
under the Environmental Quality Incentives Program
and cost-sharing grants to producers seeking to
(EQIP) to producers seeking to convert to organic
convert from conventional to organic production.
production. [Sec. 2361] Authorizes grants for this
[Sec. 10303]
purpose under the Beginning Farmer and Rancher
Development Program. [Sec. 7309]
Assessments are exempted under marketing orders
No comparable provision.
Allows producers who have part of their farm
for conventionally-grown fruits and vegetables, for
certified organic under the NOP to receive the
producers whose operations are 100% organic.
exemption. [Sec. 1822]
[7 U.S.C. 7401]
The Organic Foods Production Act of 1990
No comparable provision.
Specifies increased authorized annual funding levels
authorizes appropriations of such sums as necessary
for the NOP, starting at $5 million in FY2008 and
for the National Organic Program. [7 U.S.C. 6522]
rising to $11 million in FY2012. [Sec. 1824]
No comparable provision.
Provides grants using Section 32 funds (7 U.S.C.
No comparable provision.
612c) to help urban gardening and greenhouse
projects to purchase and operate organic fruit and
vegetable gardens and greenhouses. [Sec. 10103A]
Pest and Disease Control
No comparable provision.
Establishes a cooperative program with state
Similar to the House bill, with technical differences.
agriculture departments to conduct early pest
Provides mandatory funds starting at $10 million

---

CRS-36
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
detection and surveillance activities and create action
(FY2008), rising to $64 million (FY2012). [Sec.
plans, among other things. Provides mandatory
12101(f)]
funds starting at $10 million (FY2008), rising to $70
million (FY2012). [Sec. 10201]
No comparable provision.
Authorizes the appropriation of $15 million for the
No comparable provision.
construction of a sterile fruit fly rearing facility in
Waimanalo, Hawaii, and the appropriation of $1
million annually thereafter. [Sec. 10202]
No comparable provision.
Authorizes the appropriation of necessary funds
Similar to the House bill, with technical differences.
through FY2012, in addition to $20 million annually
[Sec. 1851]
in mandatory funds, to create a National Clean Plant
Network where the specialty crop industry can obtain
pest- and disease-free planting stock. [Sec. 10404]
Food Safety Provisions
The Agricultural Adjustment Act governs the terms
Authorizes the implementation of quality-related
No comparable provision.
and conditions of marketing orders applicable to
food safety programs under marketing orders for
specified commodities. [7 U.S.C. 608c(6)]
specialty crops. [Sec. 10106]
No comparable provision.
Authorizes appropriation of necessary sums to
Similar to the House bill, and authorizes $1 million in
implement a program to educate fresh produce
annual appropriations for that purpose. [Sec. 1813]
industry personnel and consumers about ways to
reduce pathogens in fresh produce. [Sec. 10110]
Disaster Assistance
The 2002 farm bill established the Tree Assistance
Makes nursery tree growers eligible for disaster
Makes nursery tree growers eligible for disaster
Program to compensate commercial orchardists for
assistance under the program, increases the limitation
assistance, increases the limitation on annual
losses due to natural disasters and authorized annual
on annual assistance from $75,000 to $150,000, and
assistance to $100,000, adds reimbursement for
appropriations for the program. [7 U.S.C. 8201]
continues appropriations authority. [Sec. 10101]
orchard management to repair losses, and provides
necessary mandatory funding over the life of the
farm bill. [Sec. 1210(e)]
Specialty Crop Sector Data Collection
No comparable provision.
Authorizes necessary funds through FY2012 to
Authorizes $9 million annually in funds to support

---

CRS-37
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
support the collection and dissemination of market
market news and price information on specialty
news for specialty crops. [Sec. 10402]
crops. [Sec. 1811]
The 1997 Census of Agriculture Act (P.L. 105-113)
Amends the 1997 law to include a census of specialty
Allows USDA to include a census of specialty crops
authorizes a Census of Agriculture to be taken every
crops as part of the Census of Agriculture.
in the Census or to conduct a separate census of
five years. [7 U.S.C. 2204g(a)]
[Sec. 10107]
specialty crops not later than the end of FY2008 and
every five years thereafter. [Sec. 1814]
Other Commodity-Specific Provisions
No comparable provision.
Requires USDA to submit a report on the
No comparable provision.
investigation of honey bee colony collapse disorder
and strategies to combat the problem. [Sec. 10001]
The Honey Research, Promotion, and Consumer
No comparable provision.
Amends the Honey Research, Promotion, and
Information Act (P. L. 98-590), as amended,
Consumer Information Act with provisions regarding
provides for coordinated research, promotion, and
the Honey Board and referenda on the honey
consumer information to expand their markets for
research and promotion order. [Sec. 1854]
honey. [7 U.S.C. 4601 note]
No comparable provision.
No comparable provision.
Amends 7 U.S.C. 1622(h) to require the USDA
grading/inspection mark be located near the country
of origin label on packaged honey. [Sec. 1855]
The Agricultural Adjustment Act requires that
Adds clementines to the list of commodities to which
Similar to the House bill. [Sec. 3207]
imported commodities that are under marketing
this requirement applies. [Sec. 10105]
orders in the U.S. meet the order’s standards.
[7 U.S.C. 608e-1(a)]
The Agricultural Marketing Act of 1946 governs
Adds a section to the 1946 act to regulate the
Authorizes USDA to initiate the process of
research and marketing programs for agricultural
minimum maturity of all Hass avocados sold in the
establishing a marketing order regulating the grades
products. [7 U.S.C. 1641]
United States. [Sec. 10108]
and standards of Hass avocados, if a U.S.
organization submits such a proposal. [Sec. 1856]
A 1990 law contains the terms and conditions of the
Makes changes to the geographic composition of the
Similar to the House bill, with technical differences.
mushroom marketing order. [7 U.S.C. 6104]
Mushroom Board, and other provisions. [Sec. 10109]
[Sec. 1853]
No comparable provision.
No comparable provision.
Establishes a program to compensate asparagus
growers for losses in 2004 — 2007 due to imports.

---

CRS-38
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Provides $15 million in mandatory funds for this
purpose. [Sec. 1852]
The 2002 farm bill did not include a separate title for
Creates new farm bill title, Horticulture and Organic
No new title; includes most horticulture and organic
horticultural products or organic production.
Agriculture (Title X).
agriculture provisions under the Commodity Title I.
LIVESTOCK AND ANIMAL AGRICULTURE (TITLE 1, HOUSE BILL; TITLE X, SENATE BILL)
Livestock Mandatory Reporting
The Livestock Mandatory Reporting Act of 1999
No comparable provision.
Changes the time of the afternoon swine report.
[7 U.S.C. 1635-1636h] established a program of
Establishes mandatory packer reporting of wholesale
mandatory reporting of information regarding the
pork product sales, specifying that USDA will make
marketing of live cattle, boxed beef, swine, and
this information publicly available. Directs USDA to
lambs. Requires packers, processors, and importers
conduct an economic study of wholesale pork
to provide periodic reporting of price, volume,
product sales reporting. Establishes a new program
contract, and demand information to USDA. The
for mandatory daily product reporting for
information is used to create price reports for
manufactured dairy products. [Sec. 10001]
livestock producers.
Meat Inspection and Grading
The Federal Meat Inspection Act (FMIA) [21 U.S.C.
Requires USDA to report to Congress on the
Provides for a new opt-in program for state-inspected
601 et seq.] and the Poultry Products Inspection Act
effectiveness of each state inspection program and on
plants with 25 or fewer employees, which subjects
(PPIA) [21 U.S.C. 451 et seq.] permit states to
the changes necessary to ensure enforcement of
them to federally-directed inspection using state
operate their own meat and poultry inspection
federal requirements. Replaces current federal-state
employees. Provides for three-year eligibility for
programs, if they are at least “equal to” (but not
cooperative inspection program with a new program
plants with between 25-35 employees. Sets federal
necessarily identical to) the federal program. State-
whereby USDA would approve the shipment of state-
reimbursement at not less than 60% for both meat
inspected meat and poultry cannot be shipped in
inspected meat and poultry from a state where key
and poultry programs and permits 100%
interstate commerce.
program requirements are identical to federal
reimbursements if pathogen testing exceeds typical
requirements; permits many plants currently under
federal testing, among other provisions. [Sec. 11067]
federal inspection to shift to state inspection; raises
the federal reimbursement maximum from 50% to
Requires USDA to establish “reportable food
60% for poultry programs only; among other things.
registries” for meat and poultry and their products.
[Sec. 11103]
Requires all entities to include recall plans in their
safety prevention (i.e., HACCP) plans, with beef
No comparable provisions regarding reportable food
entities also having an E. Coli reassessment. Directs
registries, recall plans, E. coli reassessment, or
HHS and USDA to issue sanitary food transportation

---

CRS-39
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
sanitary food transportation.
regulations. [Sec. 11087]
The 2002 farm bill identifies the market and common
No comparable provision.
Authorizes the establishment of a voluntary USDA
name for catfish for labeling purposes. [21 U.S.C.
grading program for catfish. Requires USDA to
321d] Sec. 203(c) of the Agricultural Marketing Act
provide inspection activities for farm raised catfish,
(AMA) of 1946 [7 U.S.C. 1622] authorizes USDA to
by adding catfish to the list of “amenable species”
develop standards to encourage uniformity and
under the FMIA. Specifies that new catfish grading
consistency in commercial marketing. Sec. 1(w) of
and certification programs shall not duplicate,
FMIA [21 U.S.C. 601 et seq.] defines “amenable
impede, or undermine similar activities conducted by
species” subject to mandatory inspection.
the Department of Commerce or by the Food and
Drug Administration. [Sec. 10002]
Country of Origin Labeling (COOL)
Sec. 10816 of the 2002 farm bill amended the AMA
Continues to require COOL implementation by 2008
Similar to the House bill, but further makes
of 1946 by requiring retailers (excl. restaurants) to
for red meats and other covered commodities. Adds
macadamia nuts and chicken covered commodities.
provide country of origin labeling (COOL) for beef,
meat produced from goats. Makes changes to the
[Sec. 10003]
lamb, pork, fish, peanuts, and perishable agricultural
labeling requirements for fresh red meats, by creating
commodities. Specifies requirements on labeling
a new labeling system for red meats with these new
Creates a separate program for ginseng for country of
USA products, on recordkeeping, certification, and
designation categories. Defines U.S. origin as a
harvest labeling. [Sec. 10004]
on enforcement and fines for non-compliance.
product from an animal exclusively born, raised and
Annual appropriations bills have since delayed
slaughtered in the U.S., or present in the U.S. before
implementation of mandatory COOL for all covered
Jan. 1, 2008. For all covered commodities,
commodities, most recently until Sept. 30, 2008
authorizes USDA verification audits; eases record-
(except wild and farm-raised fish and shellfish, which
keeping, certification requirements, and reduces fines
went into effect in 2005.) [7 U.S.C. 1621 et seq.]
for noncompliance. [Sec. 11104]
Agricultural Fair Practices Act
The Agricultural Fair Practices Act (AFPA) of 1967
No provision.
Amends AFPA as follows:
(P.L. 90-288) allows farmers to file complaints with
—
Expands the definition of “association of
USDA if a processor refuses to deal with them
producers” to also include general livestock,
because they are members of a bargaining or
poultry and farm groups. [Sec. 10101]
marketing association of producers. Makes it
—
Broadens the types of prohibited practices.
unlawful for handlers to coerce, intimidate, or
[Sec. 10102]
discriminate against producers because they belong
—
Amends the enforcement provisions; clarifies
to such groups. [7 U.S.C. 2301 et seq.]
civil actions against handlers, providing for
preventive relief, damage, and attorneys fees.

---

CRS-40
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
[Sec. 10103]
—
Directs USDA to promulgate rules/regulations.
[Sec. 10104]
Packers and Stockyards Act
The Packers and Stockyards Act (P&S Act) of 1921
Amends the Packers and Stockyards Act:
Amends the P&S Act as follows:
(P.L. 67-51), as amended, provides USDA with the
—
Creates a new special counsel at USDA to
basic authority to regulate marketing practices in the
Directs USDA to establish regulatory standards for
investigate/prosecute violations of competition
livestock, poultry, and meat industries. The law was
arbitration provisions in livestock and poultry
laws. [Sec. 10201]
enacted to prevent unfair, deceptive, and
contracts. Among other things, such regulations are
—
Strengthens USDA enforcement authorities
monopolistic trade practices, focusing on livestock
intended to permit a producer to seek relief in a small
over live poultry dealers. [Sec. 10202]
terminal and auction markets, livestock marketing
claims court, if within the court’s jurisdiction,
—
Specifies conditions regarding cancelling and
agencies, dealers, meat packers, and live poultry
regardless of a contract’s arbitration clause. [Sec.
securing contracts. Provides for producer
dealers. [7 U.S.C. 181 et seq.]
11102]
choice of jurisdiction and venue, including
arbitration. [Sec. 10203]
—
Allows growers to discuss contract terms. [Sec.
10204]
—
Allows producers to seek remedy for
violations. [Sec. 10205]
—
Allows USDA to seek outside counsel to aid in
investigations and civil cases. [Sec. 10206]
—
Prohibits major packers from owning, feeding,
or controlling livestock. [Sec. 10207]
— Directs USDA to promulgate regulations. [Sec.
10208]
Animal Pest and Disease Programs
Sec. 2506(d) of the 1990 farm bill authorizes
Sense of Congress regarding pseudorabies
Similar to the House bill.
appropriations and directs USDA to carry out
eradication program that USDA recognize the threat
[Sec. 10301]
pseudorabies eradication in U.S. swine populations.
feral swine pose to the domestic swine population,
Current concerns are that this disease persists in feral
and the need for a surveillance program for
populations and may be reintroduced. [21 U.S.C.
monitoring and eradication. [Sec. 11101]
114i]
Sec. 10409 of the Animal Health Protection Act
No comparable provision.
Directs USDA to establish and implement a trichinae
(AHPA), enacted as part of the 2002 farm bill,
certification program. Authorizes appropriations of

---

CRS-41
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
directs USDA to carry out operations and measures
$1.25 million annually for FY2008-12. [Sec. 10304]
to detect, control, or eradicate any livestock pest or
disease, incl. animals at slaughterhouse, stockyard, or
other point of concentration. [7 U.S.C. 8308]
USDA has authority to cooperate with states on laws
Sense of Congress regarding the cattle fever tick
Similar to the House bill. [Sec. 10302]
that exclude, eradicate, and/or control agricultural
eradication program that the cattle fever tick and the
pests within the AHPA [7 U.S.C. 8301 et seq.] and
southern cattle tick are vectors of the causal agent of
the Talmadge-Aiken Act [7 U.S.C. 450]. Sections of
babesiosis, a severe and often fatal disease of cattle;
21 U.S.C., Title 21 (Food and Drugs) also cover the
and that implementing a national strategic plan for
prevention and spread of contagion. Current
the cattle fever tick eradication program is a high
concerns are about pesticide-resistant populations of
priority, among other things.
the southern cattle tick in Mexico.
[Sec. 11106]
Sec. 10407(d)(2) of AHPA enacted as part of the
Sense of Congress regarding the voluntary control
Amends AHPA to compensate any poultry contract
2002 farm bill) specifies compensation amounts for
program for low pathogenic avian influenza program;
grower or owner participating in the voluntary
seizure, quarantine, and disposal of animals that may
and that USDA should continue to provide
control program for low pathogenic avian influenza
carry or have been infected with or exposed to pests
compensation payments to poultry owners and
under the National Poultry Improvement Plan.
or diseases, and are moved through interstate
cooperating state agencies at 100% of eligible costs.
Specifies payments to cooperating state agencies to
commerce or are imported. [7 U.S.C. 8306(d)(2)]
[Sec. 11105]
be 100% of the eligible costs. [Sec. 10306]
No comparable provision.
No comparable provision.
Sense of Senate that USDA should work with the
private insurers to implement an expedited approach
for indemnification of livestock producers in cases of
catastrophic disease outbreaks. [Sec. 10308]
National Animal Identification System
No comparable provision in AHPA. Under this
No comparable provision.
Requires USDA to issue regulations, subject to
authority, in 2004, USDA accelerated work on a
public comment, addressing “the protection of trade
voluntary National Animal Identification System to
secrets and other proprietary and/or confidential
trace animals from slaughter through all premises
business information that farmers and ranchers
within 48 hours of an animal disease outbreak.
disclose in the course of participation” in an animal
ID system. [Sec. 10305]

---

CRS-42
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Livestock Provision Related to Bioenergy Programs — see section on Energy Programs (below)
Other Commodity-Specific Provisions
Sec. 375 of the Consolidated Farm and Rural
Reauthorizes appropriations of $10 million annually
Renames the program as the National Sheep and
Development Act (Con Act), as amended, established
(FY2008-12). Eliminates statutory requirement to
Goat Industry Improvement Center, and provides for
the National Sheep Industry Improvement Center to
eventually privatize the revolving fund. [Sec. 6015]
new mandatory funding of $1 million for FY2008, to
provide financial assistance for the enhancement and
No other comparable changes as specified in the
be available until expended. Authorizes $10 million
marketing of U.S. sheep or goat products with an
Senate bill.
annually for FY2008-12 to cover infrastructure
emphasis on infrastructure development. Funding
development, business planning, production, resource
includes mandatory funds of $28 million for a
development and market and environmental research.
revolving fund, and additional authorized
[Sec. 10303]
appropriations of $30 million. [7 U.S.C. 2008j]
No comparable provision.
No comparable provision.
Directs USDA report on the potential economic
issues (including costs) associated with animal
manure used in normal agricultural operations and as
a bioenergy feedstock. [Sec. 10307]
The 2002 farm bill did not include a separate title for
No new title; includes most animal agriculture
Creates new farm bill title, Livestock Marketing,
animal agriculture.
provisions as part of the Miscellaneous Title XI.
Regulatory, and Related Programs (Title X).
CONSERVATION (TITLE II)
Program Definitions and Funding
Sec. 1201 of the Food Security Act of 1985 (FSA)
No provisions.
Adds definitions of beginning farmer or rancher,
(P.L. 99-198, or the 1985 farm bill), as amended,
Indian tribe, nonindustrial private forest land,
defines 18 terms. [16 U.S.C. 3801]
(Note: some terms added by the Senate bill in this
socially disadvantaged farmer or rancher, and
section are defined for specific conservation
technical assistance. [Sec. 2001]
programs, as noted below.)
Sec. 1241(a) of the FSA, as amended, authorizes
Extends authorization through FY2012.
Similar to the House bill. [Sec. 2401(a)]
mandatory funding through FY2007 to carry out
[Sec. 2401(a)]
various conservation programs. [16 U.S.C. 3841]
Note: Authorized funding levels for various programs
is provided in individual program sections below.

---

CRS-43
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Highly Erodible and Wetland Conservation
Secs. 1211-1212 of the FSA, as amended, makes
No comparable provision.
Adds a second level of review by the state or district
violators of the conservation compliance program
director, with technical concurrence from the Natural
ineligible for certain program benefits, with some
Resources Conservation Service (NRCS) if the
exceptions from full loss of eligibility. [16 U.S.C.
Secretary has determined that this exception should
3811-3812a and 3812f]
apply. [Sec. 2101]
Secs. 1221-1222 of the FSA, as amended, makes
No comparable provision.
Add a second level of review by the state or district
swampbuster ineligible for certain program benefits,
director, with technical concurrence from NRCS if
with some exceptions from full loss of eligibility. [16
the Secretary has determined that this exemption
U.S.C. 3821-3824, and 3822h]
should apply. [Sec. 2201]
Comprehensive Conservation Enhancement Program
The 1990 farm bill amended Sec. 1230 of the FSA to
No comparable provision. (Note: Amendments to
Deletes Section 1243 in current law, and moves some
establish a program later renamed the Comprehensive
Sec. 1243 described below in the “other conservation
provisions, amended, into this (and other) sections.
Conservation Enhancement Program (CCEP). The
programs” subsection .)
Extends CCEP through FY2012. Makes changes that
CCEP, which includes the Conservation Reserve
reduce administrative burdens, streamline the
Program (CRP), Wetlands Reserve Program (WRP),
application process, and promote partnerships.
and the Environmental Quality Incentives Program
Deletes EQIP from CCEP and adds the Healthy
(EQIP), promotes long-term protection for
Forests Reserve Program. Adds a new exception
environmentally sensitive lands through easements
whereby USDA may exceed the enrollment
and technical/ financial assistance. [16 U.S.C. 3830]
limitation when a state or local regulation prohibits
agricultural water use, requiring USDA to enroll the
Note: Administration of CCEP, the subject of sec.
land within 180 days of receiving a request and pay a
1243, is described below.
rental rate that reflects the rate prior to implementing
the regulation. [Sec. 2301]
The 1990 farm bill amended Sec. 1243 of the FSA to
Amends administration provisions by moving
Amends to streamline application process, add new
authorize administration of CCEP. Provisions
sections on acreage enrollment limits, tenant
endangered species provisions, and establish new
include avoiding duplication of required conservation
protection, and obtaining technical assistance.
partnerships and cooperation projects for special
plans, limiting enrollment under CRP and WRP to
Establishes a new Cooperative Conservation
projects (up to five years) with multiple producers
25% of the cropland in a county, protecting the
Partnership Initiative to carry out projects/initiatives
and eligible partners to address state conservation
interests of share croppers and tenants, allowing
using competitive (2-5 years) grants. Specifies 14
recommendations. Specifies five project purposes,
approved sources to provide technical assistance, and
criteria to be used in reviewing applications and 9
lists application contents, and identifies USDA’s
using up to 5% of the funds from the mandatory
project priorities. Specifies duties of participant and
duties and priorities when selecting projects
funded conservation programs to foster cooperation
USDA. Specifies program will be funded with 10%
(including 14 priority water project areas); also

---

CRS-44
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
through partnerships. [16 U.S.C. 3844]
of funds for CSP, EQIP, and WHIP. The federal
requires monitoring and evaluation. Specifies
share for each project will be at least 75% of costs;
funding of 10% of the mandatory funds allocated to
90% of the funds will be allocated at the state level
each state (except CRP, CSP, WRP, and the new
(incentives and bonus payments may be used for
Conservation Stewardship Program), with 75% of
specified purposes). Limits administrative costs to
funds for intra-state and 25% for multi-state projects.
5% of any grant. [Sec. 2403]
[Sec. 2405]
Conservation Reserve Program
Sec. 1231(a-d) of the 1985 farm bill (FSA) authorizes
Extends authorization through CY2012; retains
Extends authorization through CY2012. Retains
the CRP; the program is currently authorized through
current acreage enrollment limit. [Sec. 2101(a-b)]
current acreage enrollment limit. Adds pollinator
CY2007 at 39.2 million acres. [16 U.S.C. 3831(a-d)]
habitat to the general purposes. Expands eligible
land to include some types of marginal pastureland
and land enrolled in a new flooded farmland
program. [Sec. 2311(a-c)]
Sec. 1231(f) of the FSA, as amended, lists priority
Deletes states but retains Chesapeake Bay region.
Similar to the House bill; also adds to the list the
areas as the Chesapeake Bay region (PA, MD, VA) ,
[Sec. 2101(b)]
prairie pothole region, the Grand Lake St Mary’s
the Great Lakes Region, and Long Island Sound. [16
Watershed, and the Eastern Snake Plain Aquifer.
U.S.C. 3831f]
[2311(d)]
Sec. 1231(h) of the FSA, as amended, authorizes a
Extends program through CY2012. [Sec. 2101(e)]
Extends program through CY2012; expands
one million acre pilot program within the CRP for
eligibility to include certain shallow water areas and
wetlands and buffer areas. [16 U.S.C. 3831h]
certain agricultural drainage water treatment
collection areas, and expands the eligible buffer
acreage. [2311(e)]
Sec. 1232(a)(7) of the FSA, as amended, specifies a
Allows managed haying and grazing to control
Allows managed haying and grazing to control
duty of participants is limiting commercial uses,
invasive species, and adds detail on allowed uses,
invasive species and permits managed haying and
including haying and grazing on enrolled lands;
enrolled lands, and adjustments to annual contract
grazing that is a part of a conservation plan. [Sec.
allows managed haying/grazing under certain
payments. [Sec. 2101(f)]
2311(h)]
circumstances. [16 U.S.C. 3832a(7)]
Sec. 1234(c) of the FSA, as amended, establishes a
Requires USDA to conduct and make available an
Similar to the House bill; also requires USDA to give
framework for calculating annual rental payments.
annual survey of dryland and irrigated cropland cash
preference to local owners or operators when
[16 U.S.C. 3834c]
rental rates in all counties with more than 20,000
considering competing offers providing equivalent

---

CRS-45
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
acres of crop and pasture land. [Sec. 2101(g)]
benefits. [Sec. 2311(j)]
Sec. 1235(e) of the FSA, as amended, allows USDA
Allows USDA to terminate any contract after five
Allow USDA to terminate a contract if a retired or
to terminate CRP contracts after five years if contract
years, but prohibits terminating contracts for land
disabled producer has endured financial hardship
was in effect before 1/1/95. [16 U.S.C. 3835e]
enrolled under a continuous signup. [Sec. 2101(i)
because of taxes on rental payments. [Sec. 2311(k)]
and (j)]
Amends sec. 1235 (Contracts) to facilitate the
transfer of CRP land from a retiring owner to a
beginning or socially-disadvantaged producer to
return land to production, and allows new owner to
begin land improvements or start organic
certification process one year before CRP contract
expires. [Sec. 2101(h)]
No comparable provision.
No comparable provision.
Creates new Flooded Farmland Program for the
Prairie Pothole region within the CRP. Allows
continuous enrollment. Eligible land parcels must
exceed 5 acres, been incapable of production
preceding 3 crop years, have a cropping history, and
have no natural outlet. [Sec. 2312]
No comparable provision.
No comparable provision.
Creates new Wildlife Habitat Program for CRP
participants with established softwood pine stands
using management practices that benefit wildlife
(contracts up to five years). Program ends September
30, 2011. [Sec. 2313]
Wetlands Reserve Program
The 1996 farm bill amended Sec. 1237(a) of the FSA
Adds to the purposes to create and to enhance
No comparable provision.
to authorize WRP, stating its purpose to restore and
wetlands, and to purchase floodplain easements.
protect wetlands. [16 U.S.C. 3837a]
[Sec. 2102(a)]
Sec. 1237(b) of the FSA, as amended, sets maximum
Maximum enrollment set at 3.605 million acres. Sets
Sets annual fiscal year enrollment goal of 250,000
enrollment at 2.275 million acres, with an annual
an annual fiscal year enrollment goal of 250,000
acres, with no enrollment after FY2012. [Sec.
calendar year enrollment goal of 250,000 acres. [16
acres, of which not more than 10,000 acres may be
2321(1)]
U.S.C. 3837b]
flood plain easements. [Sec. 2102(b)]

---

CRS-46
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Sec. 1237(c) of the FSA, as amended, establishes
Adds riparian areas to eligible wetlands, and makes
Replaces 2007 calendar year with FY2012. [Sec.
requirements for eligible lands through 2007. [16
eligible floodplain land flooded in the past calendar
2321(2)]
U.S.C. 3837c]
year or at least twice in the past 10 years, and land
that contributes to flood water storage, flow, or
erosion control. [Sec. 2102(c)]
Sec. 1237(e) of the FSA, as amended, identifies
Expands ineligible lands to include floodplains where
No comparable provision.
ineligible land to include lands already planted to
restoration practices would not be productive or the
timber in the CRP. [16 U.S.C. 3837e]
land is already protected. [Sec. 2102(d)]
Sec. 1237A(f) of the FSA, as amended, states
Limits compensation to lowest of 4 options:
Limits compensation to lowest of 3 options: an
compensation to be paid in cash (in 5 to 30
percentage of the fair market value; percentage of
amount necessary to encourage enrollment; a limit
payments) and not to exceed the fair market value, as
market value determined by a survey; a geographic
for a geographic area; or a landowner’s offer.
reduced by the easement. [16 U.S.C. 3837a(f)]
cap; or a landowner’s offer. Allows USDA to use
Compensation may be in 1 to 30 payments. [Sec.
non-federal contributions to administer program
2322(b)(3-4)]
[Sec. 2102(e)]
Sec.1237C(c) of the FSA, as amended, lists three
Adds new additional criteria for ranking offers
No comparable provision.
considerations USDA is to use when considering
(conservation benefits; cost-effectiveness; and offer
offers for WRP contracts. [16 U.S.C. 3837c(c)]
of a financial contribution) and conservation benefits
of floodplain lands. [Sec. 2102(f)]
Sec. 1237D(c)(4) of the FSA, as amended, waives
Replaces provision with a new language on Wetland
Similar to the House bill. [Sec. 2322(c)]
limits for public entities receiving payments through
Reserve Enhancement program, where states
the wetland and environmental enhancement
contribute funds so as to increase payments. [Sec.
programs. [16 U.S.C. d(c)(4)]
2102(g)]
No comparable provision.
New section adds language authorizing WRP from
No comparable provision.
FY2008-12. [Sec. 2402(h)]
No comparable provision.
No comparable provision.
Requires a report to House and Senate Agriculture
Committees by 1/1/2010 on the implications of long-
term easements on USDA resources. [Sec. 2322(d)]
Conservation Security Program
The 2002 farm bill amended Secs. 1238A(a-b)) of
Establishes CSP from FY2012 through FY2017. To
Defines/lists purposes for new CSP and establishes
the FSA to establish the Conservation Security
be eligible, producers must submit an acceptable
program through FY2012. [Sec. 2341] Note:
Program (CSP) for FY2003-11. Defines eligible
offer that addresses “at least one priority resource of
Establishes new CSP as a conforming amendment,

---

CRS-47
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
producers and eligible lands and excluded lands (land
concern to a minimum level of management
reauthorizes existing contracts, and provides $2.3
enrolled in multiyear land retirement programs and
intensity.” Eligible land would not include incidental
billion for administration (available until spent).
land not in crop production at least 4 of the preceding
forest land. [Sec. 2103(a)]
Prohibits new/renewed contracts under old CSP after
six years). [16 U.S.C. 3838a(a-b)]
farm bill is enacted.
Sec. 1238 of the FSA, as amended, defines 15 terms
Twelve terms are defined that are new terms or differ
For all future contracts, the CSP would be replaced
pertaining to program (base payment, conservation
from current law (including conservation plan,
by a new Conservation Stewardship Program (CSP),
security contract, contract security plan, contract
conservation practice, management intensity,
placed within a new Comprehensive Stewardship
security program, enhanced payment, resource-
nondegradation standard, priority resource of
Incentives Program (see program details below). The
conserving crop rotation, resource management
concern, producer, resource-specific index, socially-
program defines 15 terms. [Sec. 2341]
system, nondegradation standard, and tier I/II/III
disadvantaged farmer or rancher, and structural
conservation security contracts). [16 U.S.C. 3838]
practice). [Sec. 2103(a)]
Secs. 1238A(a-b)) of the FSA, as amended,
Establishes CSP from FY2012 through FY2017. To
Defines/lists purposes for new CSP and establishes
establishes the Conservation Security Program (CSP)
be eligible, producers must submit an acceptable
program through FY2012. [Sec. 2341] Note:
for FY2003-11. Defines eligible producers and
offer that addresses “at least one priority resource of
Establishes new CSP as a conforming amendment,
eligible lands and excluded lands (land enrolled in
concern to a minimum level of management
reauthorizes existing contracts, and provides $2.3
multiyear land retirement programs and land not in
intensity.” Eligible land would not include incidental
billion for administration (available until spent).
crop production at least 4 of the preceding six years).
forest land. [Sec. 2103(a)]
Prohibits new/renewed contracts under old CSP after
[16 U.S.C. 3838a(a-b)]
farm bill is enacted.
Secs 1238A(d-3) of the FSA, as amended, specifies
Limits program to one type of contract of five years
Defines eligible land and eligible producers; land
terms for 3 tiers of conservation contracts. Identifies
and describes five elements to be in all contracts, but
must have been planted to crops 4 of preceding 6
topics that may be addressed in contracts. Contracts
eliminates list of topics to be addressed. Contracts
years. Contents of contracts are specified and are for
are 5five years under tier 1, and 5 to 10 years under
may no longer be terminated, without penalty, by a
five years, with renewal if certain conditions are met.
tiers 2 and 3. Specifies circumstances and
producer who is required to modify a contract.
Specifies considerations in evaluating contract offers,
requirements for modifying, terminating, and
Contracts may be renewed for one additional five
producer duties, enhancement terms, and
renewing contracts. Contracts may be renewed for 5
year period. Adds new provisions on evaluating
supplemental payments. Adds provisions on
to 10 years [16 U.S.C. 3838a(d-e)]
offers and coordinating with organic certification.
terminating and changing contracts. [Sec. 2341]
[Sec. 2103(a)]
Sec. 1238C of the FSA, as amended, specifies that
Alters duties of the Secretary to include identification
Alters duties of the Secretary to include making the
duties of the Secretary include making payments
of priority resources of concern at the state level
program available on a continuous enrollment basis,
early in each fiscal year, the components of payments
(limited to 5 concerns in any geographic area of a
providing assistance to producers, and maintaining
for each tier, annual payment limits for each tier
state). Limits total payments under a contract to
contract and payment information that will support
($20,000 for tier 1, $35,000 for tier 2, and $45,000
$150,000 (5 years); allows for the environmental
program monitoring and evaluation, and enable
for tier 3), minimum requirements for practices, and
needs associated with agriculture to be considered in
specialty crop producers to participate. [Sec. 2341]

---

CRS-48
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
requirements for implementing regulations [16
state allocations; requires USDA to compile data of
U.S.C. 3838c]
specified program contract and payment topics. [Sec.
2103 (a)]
No comparable provision.
Specifies all contracts in effect before enactment date
No comparable provision.
and signed before October 1, 2007, remain in effect,
and no new or renewed contracts be entered into
under the program after September 30, 2007. [Sec.
2103 (b) and (c)]
No comparable provision.
No comparable provision.
Provides for enrollment of up to 79.628 million acres
and attempted annual enrollment of 13.273 million
acres, nationwide and at a average annual cost of $19
per acre. Provides for small farm participation, and
allocates to each state each year the lesser of 20,000
acres or 2.2% of the eligible land. [Sec. 2341]
No comparable provision.
No comparable provision.
Requires regulations to be issued within 180 days of
enactment. [Sec. 2341]
Sec. 1241(a)(3) of the FSA, as amended, authorizes
For contracts signed before 10/1/07, provides a total
Authorizes $2.3 billion in mandatory funding for
mandatory funding for the CSP at $1.954 billion for
of $1.5 billion in mandatory funding for FY2007-12,
contracts entered into before the date of enactment,
FY2006-10 and $5.65 billion from FY2006-15. [16
and $1.9 billion for FY2012-17. For contract signed
(available until spent) and an unspecified amount for
U.S.C. 3841(a)(3)]
after 10/1/11, provides $0.5 billion for FY2012 and
the new Conservation Stewardship Program
$4.6 billion for FY2012-17. [Sec. 2401(b)]
(enrollment in the new program is measured in acres
rather than dollars). [Sec. 2401(a)(3-4)]
Environmental Quality Incentives Program
The 1996 farm bill amended Sec. 1240 of the FSA to
Adds forest management and organic transition to the
Adds forest management to the statement of program
authorize EQIP, stating its purpose as promoting
program purposes. Revises the descriptions of 2 of
purposes, and recognizes pollinators and fuels
production and environmental quality as compatible
the 5 purposes to recognize energy conservation and
management in the amplifying statements. [Sec.
goals, and optimizing environmental benefits by
conservation on forest lands. [Sec. 2105(a)]
2351]
working in 5 specified areas. [16 U.S.C. 3839aa]
Sec. 1240A of the FSA, as amended, defines 6 terms:
Adds forestry, forest management practices, and
Adds aquaculture to the “eligible land” definition;
beginning farmer or rancher, eligible land, land
coordinated implementation to the “land management
forestry is added to the “land management practice”
management practice, livestock, practice, and
practice” definition. Adds alpacas and bison to the
definition; adds conservation planning practices to

---

CRS-49
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
structural practice. [16 U.S.C. 3839aa-1]
“livestock” definition. Adds definitions of
“practices;” defines “producer” to include custom
“integrated pest management” and “socially
feeding businesses and contract growers; and adds
disadvantaged farmer or rancher.” [Sec. 2105(b)]
firebreaks to “structural practice.” [Sec. 2352]
Sec. 1240B(a-c) of the FSA, as amended, authorizes
Reauthorizes through FY2012. Expands types of
Reauthorizes through FY2012. Expands permitted
EQIP through FY2010. Eligible practices are
eligible practices to include organic certification
practices to include conservation planning. Limits
defined. Contracts are 1 to 10 years. Bidding down
using technical services from approved providers,
contracts to a maximum of five years. Removes
is prohibited. [16 U.S.C. 3839aa-2(a-c)]
and improved energy efficiency, renewable energy
prohibitions on bidding down. [Sec. 2353(a-c)]
systems. [Sec. 2105(c)]
Sec. 1240B(d)(2) of the FSA, as amended, allows
Adds socially disadvantaged producers, and sets the
Gives up to 90% in financial assistance to socially-
limited resource and beginning producers to receive
federal cost share at 90%. Provides increased federal
disadvantaged and beginning producers. Allows for
not more than a 90% federal cost share. [16 U.S.C.
cost-share of 90% for using gasifier technology for
advanced payments to purchase materials and
3839aa-2(d)]
certain purposes. [Sec. 2105(d-e)]
contracting. [Sec. 2353(c)]
Sec. 1240B(e) of the FSA, as amended, provides
Expands purposes for incentive payments: (1)
Expands purposes receiving special emphasis to
incentive payments to perform land management
receiving technical services from approved third
include predator species protected under the
practices, with special emphasis given to practices
party providers, (2) developing a comprehensive
Endangered Species Act, gray wolves, grizzly bears,
that promote specified goals. [16 U.S.C. 3839aa-
nutrient management plan, and (3) implementing
and black bears. [Sec. 2353(c)(3)]
2(e)]
energy efficiency and renewable energy projects.
Pollinator habitats will receive special emphasis.
[Sec. 2105(f)]
Sec. 1240B(g) of the FSA, as amended, requires that
Extends through FY2012 the 60% of payments to
Similar to the House bill. [Sec. 2353(c)(4)]
60% of payments go to practices related to livestock
livestock production requirement. [Sec. 2105(g)(2)]
production requirement. [16 U.S.C. 3839aa-2(g)]
No comparable provision.
Requires USDA to reserve at least 5% of program
No comparable provision.
funds for beginning and socially disadvantaged
producers for at least 90 days after the program funds
have been made available. [Sec. 2105(g)]
No comparable provision.
No comparable provision.
Gives priority to improving water conservation and
air quality, under certain conditions. Requires
participants to have/expect at least $15,000 in gross
sales from farming. [Sec. 2353(c)(6)]
No comparable provision.
Expands eligibility to market agencies and custom
See definition of producer above.

---

CRS-50
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
feeders. [Sec. 2105(h)]
[Sec. 2352]
Sec. 1240C of the FSA, as amended, gives higher
Identifies 5 priorities for program applications.
Adds a higher priority for improving conservation
priority for participation in EQIP to producers using
Specifies a streamlined evaluation process for
practices or systems in place at the time of the
cost-effective conservation practices and practices
operations with substantial and sound environmental
contract offer. [Sec. 2354]
that address national conservation priorities. [16
management systems involving a limited number of
U.S.C. 3839aa-3]
practices. [Sec. 2105(i)]
Sec. 1240E of the FSA, as amended, defines the
Adds to the planning requirements the need to be
Forestry language identical to House bill. [Sec.
general contents of a producer’s EQIP plan, and calls
consistent with forest plans, and allows as an
2356]
on the Secretary to avoid duplication with other
acceptable plan consideration of an air or water
conservation plans. [16 U.S.C. 3839aa-5]
quality permit that meet regulatory requirements as
an acceptable plan. [Sec. 2105(k)]
Sec. 1240F of the FSA, as amended, provides for
Lists 3 criteria that must be met before USDA can
No comparable provision.
USDA funding, information, and training to develop
provide assistance for practices with a primary
and implement conservation plans. [16 U.S.C.
purpose of water conservation. [Sec. 2105 (l)]
3839aa-6]
Sec. 1240H of the FSA, as amended by the 2002
Adds detail on qualities of eligible projects,
Adds nonindustrial private forest lands to the list of
farm bill, provides for a competitive grants program
establishes a pilot program for conservation planning
potential recipients of innovative technologies. Adds
within EQIP, on a matching basis, to implement
in the Chesapeake Bay watershed, and adds a new
two items to the list of examples: (1) transfers of
innovative conservation practices; examples listed
subsection to assist producers who are meeting state
innovative technologies to nonindustrial private
are using market systems in pollution reduction, and
and local regulatory air quality requirements.
forest land in production, and (2) assistance for
using innovative practices, such as storing carbon in
Provides funding from EQIP: $30 million (FY2008)
specialty crop production. [Sec. 2358]
soil; no funding is specified. [16 U.S.C. 3839aa-8]
rising to $75 million (FY2012), with specified funds
for air quality and for organic and specialty crop
producers. [Sec. 2105(m)]
Sec. 1240I of the FSA, as amended by the 2002 farm
Replaces program with a Regional Water
Amends the funding provisions to provide $65
bill, creates a Ground and Surface Water
Enhancement Program to address water quality,
million annually for FY2008-12, with $60 million
Conservation Program within EQIP for activities that
make eligible governmental entities (including
annually thereafter. Requires that future funding be
will result in a net savings of ground or surface
irrigation and water districts) and Indian tribes, and
based on past funding levels and that states with
water; lists 6 types of eligible activities (improve
to implement program on a regional scale through
aquifers encompassing multiple states and exceeding
irrigation systems, for example), and provides
cooperative agreements. Expands the list of eligible
a minimum withdrawal rate will receive funding.
mandatory funding of $25 million in FY2002,
activities and requires the Secretary to identify
Provides at least $20 million for the Eastern Snake
growing to $60 million annually in FY2004-07. [16
priority areas. Lists 5 priority areas, which together
Plain Aquifer. [Sec. 2359]
U.S.C. 3839-aa-9]
may receive no more than 50% of available funds.

---

CRS-51
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Establishes a process for soliciting/selecting
proposals and developing implementation
agreements. Provides mandatory funds of $60
million annually through FY2012 (limits
administrative expenses to no more than 3% of total).
[Sec. 2106]
Sec. 1240I(c)(2) of the FSA, as amended by the 2002
Lists the Klamath River basin as one of the 5 listed
No comparable provision.
farm bill, provides $50 million to carry out water
priority areas under the Regional Water Enhancement
(Note: The Klamath Basin is listed as 1 of 14 priority
conservation activities in the Klamath River basin
Program. [Sec. 2106 (b)(2)]
areas in the Partnerships and Cooperation Program;
(OR, CA) [16 U.S.C. 3839aa-9(c)(2)]
see above.)
No comparable provision.
No comparable provision.
Adds program at end of EQIP to assist farmers who
are converting to organic production (with contracts
of 3-4 years). Payments are limited to $20,000 per
year. [Sec. 2360]
No comparable provision.
No comparable provision.
Creates new Chesapeake Bay Watershed
Conservation Program, funded at $165 million for
FY2008-12. [Sec. 2361]
Sec. 1241(a)(6) of the FSA, as amended, authorizes
Authorizes EQIP funding: $1.25 billion (FY2008),
Authorizes EQIP funding: $1.27 billion annually
EQIP funding, rising from $0.4 billion in FY2002 to
$1.6 billion (FY2009), $1.7 billion (FY2010), $1.8
(FY2008-09), $1.3 billion each (FY2010-FY2012).
$1.3 billion in FY2010.
billion (FY2011), and $2 billion (FY2012). [Sec.
[Sec. 2401(a)(7)]
[16 U.S.C. 3841(a)(6)]
2401(d)]
Farmland Protection Program
The 1996 farm bill amended Sec. 1238H of the FSA
Expands eligible land definition to include historic
Modifies definition of eligible forest land, and makes
to authorize the Farmland Protection Program (FPP),
and archaeological resources. [Sec. 2110]
eligible other land that is needed for efficient
defining eligible entity, land, Indian tribes, and
administration of an easement. [Sec. 2371(a)]
programs. [16 U.S.C. 3838h]
Sec. 1238I of the FSA, as amended, establishes FPP
Changes program name to Farm and Ranchland
Changes the purpose of the program from protecting
to purchase conservation easements to protect topsoil
Protection Program (FRPP). States will be certified
topsoil to “protecting agricultural use and related
by limiting the land’s nonagricultural uses subject to
(reviewed every three years) to participate and
conservation values.” Adds new requirements: (1)
a pending offer. The federal cost may not exceed
receive program funds based on 4 listed
defines requirements for cooperative agreements with
50% of the value of the easement; the value of a
requirements. States may spend up to 10% of those
participants, (2) restates cost-sharing requirements,

---

CRS-52
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
charitable donation by the seller may not exceed 25%
funds for administrative costs. Lists terms and
and (3) states the federal investment will be protected
of the value of the easement. If multiple applications
conditions for agreements with eligible entities
while specifying that these easements are not a
are comparable, USDA may not use cost alone to
(agreements reviewed every three years). Provides
federal acquisition of property. [Sec. 2317(b)]
determine which ones to fund. [16 U.S.C. 3838i]
that USDA may require a contingent right to enforce
the easement. [Sec. 2110]
Sec. 1241(a)(4) of the FSA, as amended, authorizes
Mandatory funding for the renamed Farm and
Mandatory funding for the FPP is authorized at $97
mandatory funding for the FPP at; $50 million in
Ranchland Protection Program is authorized at; $125
million annually from FY2008 through FY2012.
FY2002, $100 million in FY2003, $125 million in
million in FY2008, $150 million in FY2009, $200
[Sec. 2401(a)(5)]
FY2004 and FY2005, $100 million in FY2006, and
million in FY2010, $240 million in FY2011, and
$97 million in FY2007. [16 U.S.C. 3841(a)(4)]
$280 million in FY2012. [Sec. 2401(c)]
Grassland Reserve Program
The 2002 farm bill amended Sec. 1238N of the FSA
Sets the GRP enrollment ceiling at an additional 1.34
Adds definitions: eligible entity, eligible land, and
to authorize the Grasslands Reserve Program (GRP),
million acres, with at least 60% of these acres to be
permanent conservation easement. Provides for GRP
setting maximum enrollment for at 2.0 million acres
enrolled using 30 year rental agreements and
enrollment options through a 30 year contract, 30
(all enrolled parcels in at least 40 contiguous acres).
easements. [Sec. 2104(a) and (b)]
year easement, and permanent easement. [Sec. 2381]
Requires 40% of land enrolled in 10-20 year, and
60% in 30 year agreements. [16 U.S.C. 3838n]
No comparable provision.
Allows USDA to transfer certain land currently in the
Allows USDA to transfer certain land currently in the
CRP into the GRP, but limits the total in any calendar
CRP to be transferred to a permanent easement under
year to no more than 10% of GRP acres enrolled.
GRP, but limits the total transferred in any calendar
Requires USDA pay the lowest of four specified
year to 10% of the total funding available for the
ways to calculate fair market value. [Sec. 2104(c)]
GRP in that year. [Sec. 2381]
Sec. 1238O of the FSA, as amended, specifies the
No comparable provision.
Specifies duties of landowners and USDA
duties and requirements of landowners in the GRP,
considerations in evaluating offers. Specifies how to
terms of easements and agreements, and how
calculate levels of compensation, and provides
applications are to be evaluated. [16 U.S.C. 3838o]
technical assistance. [Sec. 2381]
No comparable provision.
No comparable provision.
Specifies terms and conditions that apply to GRP
contracts and easements, such as permitted and
prohibited uses, minimum requirements for
cooperative agreements, and other considerations.
[Sec. 2381]

---

CRS-53
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
Authorizes a Grasslands Reserve Enhancement
No comparable provision.
Program. [Sec. 2104 (d)]
Sec. 1238Q(a) of the FSA, as amended, allows
Requires USDA to transfer the title of an easement to
No comparable provision.
USDA to transfer the title of an easement in the GRP
a private organizations or a state. [Sec. 2104 (e)]
to private organizations or a state. [16 U.S.C.
3838q(a)]
Sec. 1241(a)(5) of the FSA, as amended, limits
No comparable provision.
Total GRP funding limited to $240 million for
funding for the GRP to a total of $254 million from
(Note: Sets acreage enrollment limit in GRP
FY2008-12, with no acreage enrollment limit. [Sec.
FY2003-07. [16 U.S.C. 3841(a)(5)]
provisions, but no funding limit.)
2401(a)(6]
Wildlife Habitat Incentives Program
The 1996 farm bill amended Sec. 1240N of the FSA
Reauthorizes WHIP through FY2012; allows
Reauthorizes WHIP through FY2012; increases
to authorize Wildlife Habitat Incentives Program
additional funds to be used to meet regulatory
portion of funds for long-term agreements from 15%
(WHIP), providing cost-sharing to landowners who
requirements that “reduces the economic scope of the
to 25% of funding; requires USDA to give priority to
improve habitat, with up to 15% of the total made
producer’s operation;” increases portion of funds for
projects that foster the goals of state, regional, and
available in any years for agreements that are longer
long-term agreements from 15% to 25% of funding.
national fish and wildlife conservation plans.
than 15 years. [16 U.S.C. 3839bb-1]
[Sec. 2112]
[Sec. 2393]
Sec. 1241(a)(7) of the FSA, as amended, authorizes
Mandatory funding for WHIP is authorized at $85
Similar to the House bill.
mandatory funding raising from $15 million to $60
million annually through FY2012. [Sec. 2401(e)]
[Sec. 2401(a)(8)]
million between FY2002-04, and $85 million
annually (FY2005-07). [16 U.S.C. 3841(a)(7)]
Other Conservation Programs
The Healthy Forest Reserve Program (HFRP) was
No comparable provision.
Moves section to the Conservation Title and expands
authorized in the Healthy Forest Restoration Act of
purpose of improving forest ecosystems to support
2003 (P.L. 108-148). [16 U.S.C. 6571-6578]
endangered species recovery, carbon sequestration,
and biodiversity. Specifies use of agreements/
easements; federal cost sharing; technical assistance;
and role of other agencies. Authorizes appropriations
as such sums necessary FY2008-12. [Sec. 2331]
The 2002 farm bill amended Sec. 1238J of the FSA
Reauthorizes discretionary funding for program
Similar to the House bill. [Sec. 2396]
to provide grants to implement a Farm Viability
through FY2012. [Sec. 2111]
Program. Authorizes appropriations “such sums as

---

CRS-54
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
are necessary” through FY2007. [16 U.S.C. 3838j]
The 1996 farm bill amended Sec. 1240M(e) of the
Extends the authorization of appropriations through
Similar to the House bill. [Sec. 2392]
FSA to authorize the Conservation of Private Grazing
FY2012. [Sec. 2108]
Land Program. Authorizes appropriations of $60
million annually through FY2007. [16 U.S.C.,
3839bb(e)]
The 2002 farm bill amended Sec. 1240O of the FSA
Authorizes $20 million annually in discretionary
Authorizes $20 million annually in discretionary
to authorize a Grassroots Source Water Protection
funds (FY2008-12) and one-time funding of $10
funding (FY2008-12). [Sec. 2394]
Program to assist state rural water associations that
million in mandatory funding to remain available
operate wellhead and groundwater protection
until spent. [Sec. 2107]
programs. Authorizes appropriations of $5 million
annually through FY2007. [16 U.S.C. 3839bb-2]
The 2002 farm bill amended Sec. 1240P of the FSA
Extends authorization of appropriations through
Extends authorization of appropriations through
to authorize a Great Lakes Program for Soil Erosion
FY2012. [Sec. 2109]
FY2012; specifies program will help implement
and Sediment Control, and provides $5 million
recommendations of a collaborative restoration
annually through FY2007. [16 U.S.C. 3839bb-3]
strategy, giving priority to certain projects. [Sec.
2395].
Sec. 524(b)(1) of the Federal Crop Insurance Act
Adds Hawaii and Virginia to the list of eligible states.
Reauthorizes the program through FY2012; adds
authorizes an Agricultural Management Assistance
Allocates 50% of funds to USDA’s NRCS; 10% to
Idaho to the list of eligible states. [Sec. 2601]
Program for listed states that have historic low
Agricultural Marketing Service (for organic
participation rates in the Federal Crop Insurance
certification assistance); and 40% to the Risk
Program. [7 U.S.C. 1524(b)]
Management Agency. [Sec. 2201]
Secs. 1528-1537 of the 1981 farm bill (Agriculture
Amends RC&D Program to provide a designated
Similar to the House bill. [Sec. 2605]
and Food Act of 1981, P.L. 108-7) authorizes the
coordinator to assist each approved area. Eliminates
Resource Conservation and Development Program
requirement to submit a program evaluation to the
(RC&D) to develop and implement a regional plan to
House and Senate Agriculture Committees before
address conservation, water/land management, or
June 30, 2005. [Sec. 2202]
community development. [16 U.S.C. 1528-1527]
Sec. 14(h) of the Watershed Protection and Flood
Authorizes $50 million annually in mandatory
Authorizes such sums as necessary in discretionary
Prevention Act (P.L. 106-472) authorizes
funding (FY2009-12); extends FY2007 discretionary
funding annually (FY2008-12). [Sec. 2604]
discretionary and mandatory funding for a Small
funding level through FY2012. [Sec. 2203]
Watershed Rehabilitation Program. [16 U.S.C. 1012]

---

CRS-55
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
The 2002 farm bill amended Sec. 1241(d) of the FSA
Annual funding for regional equity is raised to at
Annual funding for regional equity is raised to at
to authorize a program to promote regional equity,
least $15 million [Sec. 2404]
least $15 million, and crop insurance payments are
giving each state a total of at least $12 million
added to this calculation. Directs USDA to update
annually from certain mandatory programs. [16
state allocation formulas. [Sec. 2402]
U.S.C. 3841d]
The 2002 farm bill amended Sec. 1242 of the FSA to
Expands use of third party providers using contracts.
Expands use of third party providers using contracts.
authorize delivery of technical assistance directly or
Specifies providers should get at least prevailing
Directs USDA to develop national certification
using a third party provider and specifies how
market rates, calls for a review/update of all technical
criteria and approve established state standards.
providers are to be approved by USDA. Authorizes
assistance specifications, including the needs of
Provides funding through each conservation
cooperative agreements with non-federal entities to
specialty crop producers. [Sec. 2402]
program, specifies minimum and maximum contract
provide technical assistance. [16 U.S.C. 3842]
terms, among other considerations. Includes similar
provisions for specialty crop producers as the House
bill. [Sec. 2404]
The 2002 farm bill amended Sec. 1244(a) of the FSA
Expands access to program incentives to include
No comparable provision.
to authorize USDA to provide incentives to
socially disadvantaged and limited resource farmers
beginning farmers/ranchers and Indian tribes to
and ranchers. [Sec. 2405(a)]
(Note: Support for socially disadvantaged and limited
participate in conservation programs. [16 U.S.C.
resource farmers/ranchers are in other bill sections.)
3844(a)]
The 1990 farm bill amended Sec. 1261 of the FSA to
Specifies STC have at least 12 producers
Adds non-industrial private forest land owners to the
authorize state technical committees (STC), including
representing agriculture; removes requirement for
list of groups represented on the STC. [Sec. 2501]
members and interests to be represented, outlining
persons knowledgeable about conservation; adds new
duties, and specifying that committees are advisory
provisions creating subcommittees and lists potential
with no implementation or enforcement authority.
topics; describes responsibilities in more general
[16 U.S.C. 3861-3862]
terms. [Sec. 2408]
The 1996 farm bill amended Sec. 351 of the FSA to
No comparable provision.
Amends numerous provisions authorizing the
authorize a National Natural Resources Conservation
Foundation. [Sec. 2606]
Foundation to raise private funds that will be used to
promote conservation. Program has never been
implemented. [16 U.S.C. 5801-5809]
The 2002 farm bill amended Sec. 2507 of the FSA to
No comparable provision.
Amends the desert terminal lakes provision to allow
authorize USDA to transfer $200 million of CCC
funds to be used to lease water or to purchase land
funds to the Bureau of Reclamation for water to at-
and related interests in the Walker River Basin.
risk natural desert terminal lakes. [43 U.S.C.
[2607]

---

CRS-56
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
2211note]
New Conservation Programs
No comparable provision.
Authorizes a new Chesapeake Bay Program for
No comparable provision.
Nutrient Reduction and Sediment Control to carry
out restoration, enhancement, and preservation
(Note: The Chesapeake Bay program is authorized as
projects. Identifies four specified watersheds. The
a part of EQIP.)
non-federal cost share for each project will be at least
35%, but will not exceed $5 million. Sets mandatory
funding at $10 million (FY2008), rising to $55
million (FY2012). [Sec. 2301]
No comparable provision.
The “Open Fields” provision authorizes state grants
Similar to the House bill, except does not authorize
through a new Voluntary Public Access and Habitat
any appropriations. [Sec. 2399] Authorizes
Incentive Program to encourage landowners to
appropriations of $20 million annually through
provide public access for wildlife-dependent
FY2012 authorized under the bill’s Conservation
recreation. Specifies application contents and award
Funding Provisions. [Sec. 2401(a)(9)]
priorities. Authorizes discretionary funding of $20
million annually through FY2012. [Sec. 2302]
No comparable provision.
Authorizes a new Muck Soils Conservation Program
No comparable provision.
for eligible land, defined by five characteristics.
Authorizes appropriations of $50 million annually
through FY2012, with payments between $300-$500
per acre. [Sec. 2303]
No comparable provision.
Authorizes a new requirement that USDA develop
Similar to the House bill. [Sec. 2405(a)]
and implement a single simplified application process
for conservation programs within one year of
enactment. [Sec. 2405(b)]
No comparable provision.
Authorizes new payment limits, deleting existing
No comparable provision.
(Note: Current law limits CRP payments to $50,000
conservation payment limit language. Limits annual
per year, sets payment limits for each of 3 tiers in the
payments to $60,000 for any single program; limits
CSP, and limits EQIP payments to $450,000 for all
total payments to $125,000 under all conservation
contracts in any six-year period. [16 U.S.C. 3834,
(except WRP, FRPP, GRP). Defines how payments
3838c, and 3839aa-7]
should be attributed to individuals. [Sec. 2409]

---

CRS-57
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
Requires USDA to submit an annual report on
No comparable provision.
specialty crop producer participation in conservation
programs, including how to improve producer
program access. [Sec. 2406]
No comparable provision.
Authorizes a new provision to develop agriculture
Authorizes a new provision to develop agriculture
and forestry based environmental services to
and forestry based environmental service markets,
promote market-based conservation. Specifies use of
giving priority to developing carbon storage. Directs
USDA-funded research, contracts, and award grants.
USDA to use a collaborative process with specified
Establishes a USDA-led Environmental Services
government and non-government interests to develop
Standards Board of senior federal officials to
a framework and identifies relevant framework
facilitate the development of credit markets and
components (including quantification, accounting,
disseminate performance standards to federal
and verification). Requires three reports to Congress.
agencies. Authorizes $50 million in discretionary
Authorizes discretionary funding of “such sums as
funding, with appropriated amounts to remain
are necessary.” [Sec. 2406]
available until spent. [Sec. 2407]
No comparable provision.
Adds income from affiliated packing and handling
No comparable provision.
operations to definition of farm income when
calculating adjusted gross income limitation to
determine eligibility. [Sec. 2501]
No comparable provision.
Allows USDA to encourage development of
No comparable provision.
voluntary sustainable practices for specialty crops.
[Sec. 2502]
No comparable provision.
Requires USDA to develop information on the
No comparable provision.
importance of productive farmland and designate at
least one farmland information center to distribute
this and related information. Specifies federal
matching funds of at least $400,000 (not exceeding
0.5% of the amount provided to implement the
FRPP). [Sec. 2503]
No comparable provision.
Requires USDA to contract with a peanut producer
No comparable provision.
for a four year crop rotation; authorizes
appropriations up to $10 million annually (FY2008-
12). [Sec. 2504]

---

CRS-58
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
See section 2103 on the Conservation Security
Authorizes a new Comprehensive Stewardship
Program (described above), for some related
Incentives Program to coordinate administration of a
(Note: See the Conservation Security Program,
changes. For example, the House bill defines
new Conservation Stewardship Program (see above)
above, in existing programs.)
“priority resources of concern;” however, the House
and EQIP. Addresses defined resource concerns,
bill does not create a new program.
meets regulatory demands, encourages conservation,
and promotes conservation and production as
compatible goals. [Sec. 2341]
No comparable provision.
No comparable provision.
Authorizes a Discovery Watershed Demonstration
Program to reduce loss of nutrients into surface
waters in 30 small watersheds in the Upper
Mississippi River basin. Authorizes discretionary
funds as are necessary. [Sec. 2397]
No comparable provision.
No comparable provision.
Authorizes an Emergency Landscape Restoration
Program to repair landscapes damaged by natural
events. Replaces two others emergency conservation
and watershed programs. [Sec. 2398]
No comparable provision.
No comparable provision.
Authorizes access to conservation provisions to
provide 10% of the funds (or acres in the cases of
WRP and CRP) to beginning producers who derive at
least $15,000 from selling agricultural products, or
socially-disadvantaged producers. [Sec. 2403]
No comparable provision.
No comparable provision.
Directs USDA, at the request of a landowner, to help
get “safe harbor” assurances if land enrolled in a
program benefits a specie under the Endangered
Species Act. [Sec. 2405(b)]
No comparable provision.
No comparable provision.
Directs USDA to assist producers who apply for
programs indirectly through certain organizations, if
this will increase participation and program benefits;
payment limits apply to each producer, not the
organization. [Sec. 2405(b)]
No comparable provision.
No comparable provision.
Authorizes a new Agriculture Conservation
Experienced Service Program, such that USDA can

---

CRS-59
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
enter into agreements with organizations to provide
technical assistance using qualified individuals 55
years or older. [Sec. 2602]
No comparable provision.
No comparable provision.
Amends the Soil Conservation and Domestic
Allotment Act of 1935 by providing definitions and
creates new technical assistance provisions.
Reauthorizes the Soil and Water Resources
Conservation Act of 1977 through 2028; requires a
national appraisal of soil, water and related resources
to be issued every 10 years. [Sec. 2603]
No comparable provision.
The “sodsaver” provision makes noncropland
The “sodsaver” provision makes native sods planted
(including native grassland and pastureland) planted
to an insurable crop (over 5 acres) ineligible for crop
to an insurable crop ineligible for crop insurance for
insurance and the noninsured crop disaster assistance
the first four years of planting. [Sec. 11007]
program. Directs USDA to report within 180 days of
enactment, and annually thereafter, on changes in
cropland acreage, by county, since 1995. [Sec. 2608]
No comparable provision.
No comparable provision.
Requires that no producers in Texas lose program
benefits as a result of participating in a study of the
Ogallala Aquifer’s recharge potential. [Sec. 2609]
No comparable provision.
No comparable provision.
Amends the Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA) [7 U.S.C. 136o(d)] to
require the State Department to pay expenses
incurred by EPA employees associated with certain
international activities. [Sec. 2610] Amends sec. 33
of FIFRA [7 U.S.C. 136w-8] to allow the EPA
Administrator to waive a portion of the pesticide
registration service fee under certain circumstances.
[Sec. 2612]
No comparable provision.
No comparable provision.
Amends sec. 202(a) of the Colorado River Salinity
Control Act [43 U.S.C. 1592(a)] to create a basin
states program implementing specified salinity
control activities. [Sec. 2611]

---

CRS-60
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
AGRICULTURAL TRADE AND AID (TITLE III)
P.L. 480 Food Aid
The Agricultural Trade Development Assistance Act
No comparable provision.
Renames the current law the “Food for Peace Act.”
of 1954 [7 U.S.C. 1691a], as amended, authorizes the
Deletes language making expansion of U.S.
use of U.S. agricultural commodities and local
agricultural exports an objective of the program.
currencies to combat world hunger and malnutrition;
Replaces the Sense of Congress with language stating
promote sustainable development; expand
that, in negotiations, the President shall seek higher
international trade; develop and expand markets for
levels of food aid to meet legitimate needs of
U.S. agricultural exports; foster development of
developing countries; ensure that non-governmental
private enterprise and democratic participation in
organizations, recipient governments, and
developing countries; and prevent conflicts. Declares
international entities continue to be eligible to receive
the Sense of Congress that the President should
food aid resources and to implement programs; and
initiate consultations with other food aid donors to
options for providing food aid shall not be subject to
consider appropriate food aid levels to meet needs of
limitation with respect to in-kind commodities, funds
developing countries, and that the U.S. should
for commodity procurement, and monetization, under
increase its food aid contribution.
certain conditions. [Secs. 3001-3003]
Trade and Development Assistance (P.L. 480 Title I)
Makes no changes in P.L. 480 Title I.
Renames Title I “Economic Assistance and Food
provides for concessional financing , i.e., long-term,
Security.” [Sec. 3004] Makes improving trade
low-interest loans to developing countries to
capacity of the recipient country an activity that can
purchase U.S. agricultural commodities. [7 U.S.C.
be supported by local currency payments for P.L. 480
1701]
Title I loans.
Emergency and Private Assistance Programs (P.L.
Reauthorizes through FY2012, with changes as
Reauthorizes through FY2012, with changes as
480 Title II) provide U.S. agricultural commodities
outlined below.
outlined below.
for emergency and nonemergency assistance.
Provides that private voluntary organizations and
Provides that not less than 7% and not more than
Provides not less than 7.5% of total funds be
cooperatives that carry out Title II programs may
12% of funds available for Title II for support of
available from all sources to support eligible
receive not less that 5% nor more than 10% of
eligible organizations. Funds may also be used for
organizations. In addition to establishing new
available funds (for establishing new programs or
“developing, implementing and improving
programs, inserts new language on “meeting specific
meeting other administrative directives).
monitoring systems of program receiving funds”
administrative, management, personnel,
[7 U.S.C. 1722(e)(1)]
under Title II. [Secs. 3001(b)(1)and (b)(4)]
programmatic, and operational activities, and internal
transportation and distribution costs” for new and
existing programs in foreign countries. [Sec.
3008(2)(A)(ii)]

---

CRS-61
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
No comparable provision.
Authorizes the USAID Administrator to use funds to
assess the types and quality of agricultural
commodities used for food aid, and to adust products
and formulations to meet nutrient needs of target
populations. [Sec. 3008 (3)(h)]
Provisions regarding Private Voluntary Organizations
No comparable provision.
Provides for the inclusion of activities involving
(PVOs) and cooperatives allow for the sale or barter
micro-enterprise and village banking as an authorized
of Title II commodities by PVOs and coops. Sec. 203
use of Title II monetization (sales) proceeds.
allows for the monetization (sale) of not less than
[Sec. 3009]
15% of the total of all commodities distributed each
fiscal year under non-emergency programs. Proceeds
can be used for certain specified purposes.
[7 U.S.C. 1723]
USDA make 2.5 million metric tons (mmt) of
Extends authorized levels of assistance through
Similar to the House bill. [Sec. 3009]
commodities available annually through FY2007. Of
FY2012. [Sec. 3001(d)]
that amount, a minimum of 1.875 mmt of
commodities is available for non-emergency
programs annually through FY2007 (and may be
waived under certain circumstances only). [7 U.S.C.
1724]
The Food Aid Consultative Group (FAC) [7 U.S.C.
Extends FAC through FY2012 and requires USAID,
Extends FAC through FY2012. Adds representatives
1725] is composed of the Administrator of USAID,
in close consultation with the FAC, to submit a report
of the maritime transportation sector involved in
the Secretary of Agriculture, and representatives of
to certain congressional committees on efforts to
overseas shipping of commodities to the member list.
PVOs, coops, indigenous NGOs in recipient
achieve an integrated and effective food assistance
Requires biannual consultations between USAID and
countries, and U.S. producer groups, who review
program. [Sec. 3001(f)]
the FAC, and requires FAC consultations on issuing
overall program effectiveness.
draft regulations. [Sec. 3011]
Title II program administration provides for various
Provides for program oversight, monitoring, and
Adds language allowing for payment to the World
administrative procedures including identification of
evaluation, and requires that systems be established
Food Program for indirect support costs of donated
developing country recipients, deadlines for USAID
to accomplish these tasks. Requires an
commodities, along with a report to the relevant
acceptance (or rejection) of a proposal, specifying
implementation report be prepared, to be reviewed by
congressional committees on such payments.
reasons for denial of proposals, issuance of
GAO, along with annual reporting. Authorizes
Clarifies the authority to pay indirect costs associated
regulations, and deadlines for submission of
appropriations up to $15 million of funds be made
with funds received or generated for programs to
commodity orders. Requires the Administrator to
available annually (FY2008-12). Requires procedures
PVOs and coops, and requires that project reports be

---

CRS-62
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
report by December 1 each year to relevant
be developed for providing commodities overseas in
submitted in a form that can be readily displayed for
committees on program, countries, and commodities
a timely manner and according to delivery schedules.
public use on the USAID website. [Sec. 3012]
approved to date and on the total amount of funds
Changes the date of the required program reports,
approved for transportation and administrative costs.
among other changes. [Sec. 3001 (g)]
[7 U.S.C. 1726a]
Provisions on assistance for stockpiling and rapid
Reauthorizes program and increases appropriations
Reauthorizes program and increases appropriations
transportation, delivery, and distribution of shelf-
authority from $3 million to $7 million annually for
authority from $3 million to $8 million annually for
stable prepackaged foods. Authorizes appropriated
FY2008-12. [Sec. 3001(h)]
FY2008-12. [Sec. 3013]
grants at $3 million annually. [7 U.S.C. 1726b]
No comparable provision.
Authorizes to be appropriated not less than $40
Establishes a pilot program for local and regional
million to carry out Sec. 491 of the Foreign
purchase of commodities for emergency food aid.
Assistance Act of 1961 (22 U.S.C.2292) to provide
Authorizes appropriations of $25 million annually for
for famine prevention and relief. [Sec. 3016]
FY2009-12. [Sec. 3014]
Provisions on commodity determinations establish
No comparable provision.
Strikes the requirement that a USDA determination
criteria for eligibility of commodities for disposition.
of domestic supply needs be made before a
[7 U.S.C. 1731]
commodity is available for food aid. [Sec. 3015]
Provisions on the use of the CCC lists the expenses
No comparable provision.
Adds costs incurred to improve food aid quality to
that may be covered by the CCC in carrying out food
the list of expenses that can be covered by CCC
aid programs. [7 U.S.C. 1736]
through advanced appropriations acts. [Sec. 3016]
Provisions regarding prepositioning authorize
Extends authorization for prepositioning through
Extends authorization for prepositioning through
USAID to use Title II (and Title III) funds to procure
FY2012. Increases the limit that may be used to
FY2012. Increases cap on funds from $2 million to
transport, and store commodities for prepositioning
preposition commodities from $2 million to $8
$4 million, among requirements for non-emergency
(limited to $2 million). [7 U.S.C. 18736(c)]
million. [Sec. 3001 (I)]
assistance agreements. [Sec. 3017(1)]
Annual reporting requirements specify that an annual
Changes the annual report submission date from
Changes the date of report submission from January
report on P.L. 480 food aid programs be submitted
January 15 to March 1. Requires an assessment on
15 to April 1 each year, and requires its distribution
by January 15 of each year to the relevant
the progress to reduce food insecurity in countries
to the public by electronic and other means.
congressional committees. [7 U.S.C. 1736a]
receiving U.S. food assistance. [Sec. 3001(j)]
[Sec. 3017(2)]
Authority to enter into new P.L. 480 agreements
Extends the authority to enter into P.L. 480
Similar to the House bill. [Sec. 3018]
provided through December 31, 2007. [Sec. 408, 7
agreements to December 31, 2012. [Sec. 3001(k)]
U.S.C. 1736b]

---

CRS-63
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Authorizes to be appropriated such sums as may be
Authorizes appropriations of such sums as may be
Reauthorizes discretionary appropriations for P.L.
necessary to carry out P.L. 480 food aid programs. [7
necessary for Title I and III programs, and
480 programs and strikes authority to transfer funds
U.S.C. 1736f]
appropriations of $2.5 billion for Title II emergency
between P.L. 480 Titles. [Sec. 3019]
and non-emergency programs. [Sec. 3001(l)]
No comparable provision.
Requires that non-emergency food assistance of not
Provides that not less than $600 million be available
less than $450 million be available for non-
annually for FY2008-12 to for Title II non-
emergency programs. [Sec. 3013]
emergency programs. [Sec. 3019(b)]
The Micronutrient Fortification Program establishes
Extends authorization for the program through
Reauthorizes the program through December 31,
a micronutrient fortification program in food aid
December 31, 2012, and amends purposes. [Sec.
2012. Adds new authority to improve food quality,
recipient countries through year-end 2007. [7 U.S.C.
3001(m)]
safety, and other aspects. Eliminates limitation to five
1736g-2]
countries. [Sec. 3020]
The John Ogonowski and Doug Berueter Farmer-to-
Provides minimum program funding of $10 million.
Extends program through 2012. [Sec. 3022]
Farmer Program authorizes voluntary technical
Authorizes appropriations of $10 million to carry out
assistance to raise farm production/incomes in
the program in Sub-Saharan African and Caribbean
developing and middle income countries, emerging
Basin countries, and $5 million for all other
markets, and in Sub-Saharan Africa and the
countries. [Sec. 3001(n)]
Caribbean Basin. [7 U.S.C. 1737]
Other Food Aid Programs
The Food for Progress Act provides commodities to
Extends program through 2012.
Extends program through 2012. Raises the cap on
support countries that have made commitments to
[Sec. 3004]
coverage of costs of transporting commodities to $48
expand free enterprise in their agricultural
million annually (FY2009-10). [Sec. 3106]
economies. [7 U.S.C. 1736o]
The McGovern-Dole International Food for
Extends program through 2012. Authorizes USDA
Extends program through 2012. [Sec. 3107]
Education and Child Nutrition Program makes
to carry out the program, providing mandatory
available U.S. agricultural commodities, financial
(CCC) funding as follows: $0 (FY2008); $140
and technical assistance to carry out food for
million (FY2009); $170 million (FY2010); $230
education and child nutrition programs in foreign
million (FY2011); $300 million (FY2012); and $0
countries. Authorizes CCC funding of $100 million
(FY2013). [Sec. 3005]
in FY2003 and such sums as may be necessary in
FY2004-07. [7 U.S.C. 1736o-1]
The Bill Emerson Humanitarian Trust
Reauthorizes through 2012. [Sec. 3006]
Reauthorizes through 2012 [Sec. 3201(6)], with some

---

CRS-64
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
establishes a reserve of up to 4 million metric tons
changes including (1) provides that the Trust can be
(mmt) of wheat, rice, corn and sorghum to meet
held as a combination of cash and commodities (not
emergency food needs in developing countries when
to exceed 4 mmt.) [Sec. 3201(1)]; (2) allows the
there are unanticipated needs or when U.S. domestic
commodities in the Trust to be exchanged for funds
supplies are short. The Trust can also hold cash.
available under Title II or the McGovern-Dole
[7 U.S.C. 1736f-1 note]
Program, or for sale in the market (in some cases)
[Sec. 3201(2)]; (3) lists the rules for the release of
commodities or funds from the Trust; defines
emergency in cases of release [Sec. 3201(3)]; and (4)
provides rules for USDA to manage the Trust. [Sec.
3201(4)]
Export Programs
Export Credit Guarantees provide for the repayment
Repeals the supplier credit guarantee program and
Similar to the House bill; also clarifies how USDA
of credit made available to finance commercial sales
the intermediate credit guarantee program. Lifts the
should evaluate the creditworthiness of participating
of U.S. agricultural commodities. [7 U.S.C. 5622]
1% origination fee cap. Reduces the term of short
countries. Reduces the minimum volume of
term credit guarantees to six months beginning in
guarantees annually from $5.5 billion to $5 billion.
FY2008. [Sec. 3002]
[Sec. 3101]
The Market Access Program (MAP) provides for
Makes organic agricultural commodities eligible for
Makes organic agricultural products eligible for CCC
CCC funding of export market development for U.S.
MAP promotions. Increases annual MAP funding
funds. Increases funding above baseline level of
agricultural commodities by eligible trade
from $200 million (FY2007) to $225 million
$200 million by raising it $10 million annually until
organizations. Authorizes CCC funding of $200
(FY2008-12). [Sec. 3003]
FY2011, with $200 million for FY2012. [Sec. 3102].
million annually. [7 U.S.C. 5623]
Technical Assistance for Specialty Crops (TASC) [7
Extends authority for CCC funding of TASC through
Extends authority to use CCC funds for TASC
U.S.C. 5680] authorizes USDA to address barriers
FY2012. Increases funding from $2 million annually
through FY20012 and increases funding by $19
prohibiting or threatening exports of U.S. specialty
to $4 million in FY2008, and rising to $10 million in
million over the baseline level. [Sec. 1835]
crops. Authorizes CCC funds of $2 million annually
FY2011-12. [Sec. 3007]
(FY2002-07).
No comparable provision.
Authorizes USDA to enhance U.S. participation in
No comparable provision.
international standard-setting bodies (e.g., Codex
Alimentarius Commission; International Plant
Protection Convention; and the World Animal Health
Organization). Authorizes appropriations as
necessary for FY2007-12. [Sec. 3009]

---

CRS-65
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Foreign Market Development Cooperator Program
Extends through FY2012. [Sec. 3010]
Increases mandatory funding for FMDP from its
(FMDP) [7 U.S.C. 5721] requires USDA to establish
current annual level of $34.5 million for FY2007 by
and carry out a program to maintain and develop
$5 million annually for FY2008-09, by $10 million
foreign markets for U.S. agricultural commodities
in FY2010. Reverts to baseline levels in 2011 and
and products.
thereafter.
The Emerging Markets Program (EMP) [7 U.S.C.
Reauthorizes through FY2012. [Sec. 3011]
Reauthorizes through FY2012. [Sec. 3202 (1)]
5622 note] promotes U.S. agricultural exports in
Permits waiving the requirement that U.S. goods be
emerging markets. Authorizes direct credits or
used in the construction of a facility, if such goods
export credit guarantees of not less that $1 billion for
are not available or their use is not practicable.
exports to emerging markets. Requires a portion of
Provides for a guarantee that the term of the
export credit guarantees be available to establish or
depreciation schedule for the facility will not exceed
improve facilities and services for U.S. products.
20 years. [Sec. 3202(2)]
The Export Enhancement Program (EEP) (Section
Extends through FY2012. [Sec. 3012]
Repeals authority for EEP. [Sec. 3103]
301, Agricultural Trade Act of 1978) authorizes the
CCC to encourage the sale of U.S. agricultural
exports in world markets at competitive prices. The
CCC may pay a bonus to exporters in markets where
the competition is subsidized. [7 U.S.C. 5651]
Other Trade Provisions
No comparable provision.
Requires USAID to contribute to the Global Crop
Similar to the House bill. [Sec. 3021]
Diversity Trust for germ plasm conservation (up to
$60 million over five years, but may not exceed one-
fourth of the total of funds contributed to the Trust
from all sources). [Sec. 3014]
No comparable provision.
Directs USAID and USDA to submit a report on
No comparable provision
efforts to improve planning for food and
transportation procurement, including efforts to
eliminate bunching of food purchases. [Sec. 3015]
No comparable provision.
No comparable provision.
Requires USDA, in cooperation with the Department
of Labor, to develop standards to certify that U.S.
agricultural imports were not produced with the use
of abusive forms of child labor. [Sec. 3104]

---

CRS-66
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
The Biotechnology and Agricultural Trade Program
No comparable provision
Extends authority through FY2012. [Sec. 3203]
[7 U.S.C. 5679] provides for a biotechnology and
agricultural trade program to remove, resolve, or
mitigate nontariff barriers on U.S. agricultural
commodities produced through biotechnology.
Authorizes annual appropriations of $6 million
(FY2002-07).
No comparable provision.
Authorizes USDA to provide technical assistance to
Similar to the House bill. [Sec. 3204]
limited resource persons that are involved in trade
disputes. Authorizes appropriations as necessary.
[Sec. 3008]
No comparable provision.
No comparable provision
Requires the Secretary of Health and Human
Services to report to Congress on the importation and
use of high protein food ingredients. [Sec. 3206]
NUTRITION (TITLE IV)
Reauthorization
Authorities in the Food Stamp Act and other laws
Extends all expired authorities in the Food Stamp Act
Extends all significant expired authorities in the Food
covered by the nutrition title generally expired in
and other laws covered by the nutrition title through
Stamp Act and other laws covered by the nutrition
FY2007. [7 U.S.C. 612c note, 1431e(2), 2020(t),
FY2012. [Sec. 4016, 4019-4021, 4025, 4027, 4028,
title indefinitely, with the exception of funding for
2025(h), 2025(k), 2026(b), 2028(a), 2034, 2036,
4201, 4202, 4203] Amendments made in the House
community food projects (extended through
3007(a), 3171 note, 7508(a)]
bill generally are part of permanent law.
FY2012). [Sec. 4110, 4701, 4801-4803]
Amendments generally terminate with FY2012.
Food Stamp Program
The Food Stamp program is established under the
Renames the Food Stamp program as the “Secure
Renames the Food Stamp program as the “Food and
Food Stamp Act. [7 U.S.C. 2011 et seq]
Supplemental Nutrition Assistance Program”
Nutrition Program.” [Sec. 4001]
(SSNAP). [Sec. 4001]
Sec. 5(e)(1) of the Food Stamp Act specifies that
Increases the minimum standard deduction to $145
Increases the minimum standard deduction to $140
when determining benefits and, in some cases,
per month, annually indexed to inflation. [Sec.
per month, annually indexed to inflation. [Sec.
judging income eligibility, a standard portion of
4006]
4102]
households’ monthly income be disregarded
(deducted), as a “standard deduction.” The minimum

---

CRS-67
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
standard deduction is $134 per month per household
(with differing amounts for AK, HI, the Virgin
Islands, and Guam). [7 U.S.C. 2014(e)(1)]
Sec. 5(e)(3) of the Food Stamp Act specifies that
Removes the caps on dependent care deductions.
Same as the House bill. [Sec. 4103]
when determining benefits and, in some cases,
[Sec. 4007]
judging income eligibility, dependent care expenses
related to employment, training, or education be
disregarded (deducted) from household monthly
income. This deduction is capped at $200 per month
for each dependent under age 2 and $175 per month
for all other dependents. [7 U.S.C. 2014(e)(3)]
Sec. 8(a) of the Food Stamp Act sets the minimum
Increases the minimum benefit to 10% of the
Same as the House bill. [Sec. 4109]
benefit for households of one and two persons at $10
inflation-indexed cost of the “Thrifty Food Plan” (the
per month. [7 U.S.C. 2017(a)]
maximum benefit) for a one-person household. [Sec.
4013]
Under terms stipulated in USDA appropriations acts
Places into law an exclusion for combat-related
Same as the House bill. [Sec. 4101]
since FY2005, combat-related military pay is
military pay. [Sec. 4005]
excluded from household income when determining
eligibility and benefits. (Most recently, the
Consolidated Appropriations Act, 2008, P.L. 110-
161.)
No comparable provision.
Bars those disqualified from the Food Distribution
Same as the House bill. [Sec. 4501]
Program on Indian Reservations (the FDPIR) from
the (renamed) food stamp program. [Sec. 4004]
Sec. 5(g) of the Food Stamp Act specifies differing
Indexes to inflation the dollar limits on assets
Increases the dollar limits on assets to $3,500 ($4,500
that eligible households’ liquid assets may not be
annually (adjusted to the nearest $100). [Sec. 4008]
for households with an elderly/disabled member) and
more than $2,000 (or $3,000 for a household with an
indexes to inflation these dollar limits annually
elderly or disabled member). [7 U.S.C. 2014(g)]
(adjusted down to the nearest $250). [Sec. 4104]
No comparable provision.
Excludes tax-qualified education savings as
Same as the House bill. [Sec. 4104]
countable assets in judging eligibility. [Sec. 4009]
Sec. 5(g) of the Food Stamp Act specifies rules as to
Excludes all tax-qualified retirement
Same as the House bill. [Sec. 4104]

---

CRS-68
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
which types of retirement plans/accounts/savings are
plans/accounts/savings from countable assets in
excluded from countable assets in judging eligibility.
judging eligibility. [Sec. 4010]
[7 U.S.C. 2014(g)]
Sec. 6(o) of the Food Stamp Act limits the eligibility
No comparable provision.
Lengthens the basic eligibility period for ABAWDs
requirements of able-bodied adults without
to 6 months in every 36-month period. Eliminates
dependents (ABAWDs) who are (1) not working
the current provision extending eligibility for
(20+ hours a week), (2) in an employment/training
ABAWDs who subsequently fail to meet
program, or (3) in a workfare program three months
work/training tests. [Sec. 4107]
in every 36-month period. ABAWDs who gain
eligibility by meeting one of the three above tests,
but later fail to meet these tests, may remain eligible
for an additional 3 consecutive months.
[7 U.S.C. 2015(o)]
Sec. 11(s) of the Food Stamp Act allows states to
No comparable provision.
Adds permission for states to provide up to 5-
provide up to five months of transitional food
months’ transitional food assistance benefits to
assistance benefits to households that stop receiving
households with children that cease to receive cash
federally funded cash assistance under the
aid under a state-funded public assistance program.
Temporary Assistance for Needy Families (TANF)
[Sec. 4108]
program. [7 U.S.C. 2020(s)]
No comparable provision.
No comparable provision.
Disqualifies persons found by a court or
administrative agency to have intentionally obtained
cash by misusing program benefits to obtain money
for return of deposits on containers. Disqualifies
persons found by a court or administrative agency to
have intentionally sold any food that was purchased
with program benefits. [Sec. 4305]
Sec. 11(e) of the Food Stamp Act specifies that state
Specifies that only state agency merit system
No comparable provision.
“merit system” employees must certify households’
employees are authorized to make eligibility
program eligibility. [7 U.S.C. 2020(e)(6)]
certifications or: (1) represent the state in
communications with client households regarding
their application/ participation, (2) participate in
making any determinations regarding a household’s
substantive or procedural compliance with program

---

CRS-69
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
requirements, or (3) make any other required
program determinations. Provides exemptions from
these restrictions for nonprofit agencies assisting in
program outreach and for contracts with automated
systems, benefit issuance services, and program
information activities. Prohibits use of federal funds
for any contract that does not comply with the above
requirements, and bars waivers of program rules that
do not comply with these requirements. Allows use
of employees not in compliance with these
requirements in cases of disasters. [Sec. 4015]
No comparable provision.
No comparable provision.
Requires USDA to develop standards for identifying
major changes in state agency operations (e.g.,
substantial increases in reliance on automated
systems, or potential increases in administrative
burdens on applicant or recipient households). If a
state implements a major change in operations, it
must notify USDA and collect any information
USDA needs to identify/correct adverse effects on
program integrity/access. [Sec. 4211]
No comparable provision.
No comparable provision.
Requires that computerized systems for state program
operations must (1) be tested adequately before and
after implementation, and (2) be operated under a
plan for continuous updating (to reflect changed
policies and circumstances) and testing (for effects
on households and payment accuracy). [Sec. 4212]
Sec. 13(b) of the Food Stamp Act specifies that states
Permits USDA to make a determination that a state
Same as the House bill. [Sec. 4301]
must attempt to collect all over-issued benefits,
agency has over-issued benefits to a substantial
unless the state agency demonstrates that collection is
number of households because of a “major systemic
not cost-effective. [7 U.S.C. 2022(b)]
error.” If this determination is made, USDA may (1)
prohibit the state agency from collecting any
resulting over-issuances, and (2) collect the cost of
the over-issuances from the state. [Sec. 4018]

---

CRS-70
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Sec. 6(c) of the Food Stamp Act specifies that states
No comparable provision.
Allows states to require periodic reporting of changes
may require households (except for migrant/seasonal
in household circumstances (versus reporting
farmworkers, the homeless, and elderly/disabled
changes when they occur) by migrant/ seasonal
households with no earned income) to file periodic
farmworkers, the homeless, and elderly/disabled
reports of household circumstances. Households not
households with no earned income. Limits the
required to file periodic reports must report any
frequency with which these households must report
changes in circumstances when they occur. [7 U.S.C.
changes (other than changes whereby they exceed
2015(c)]
monthly income eligibility limits). [Sec. 4105]
Sec. 12 of the Food Stamp Act specifies that
Increases the maximum civil money penalty to
Same as the House bill. Also eases conditions under
participating food retailers and wholesalers may be
$100,000 per violation. Removes the provision that
which bonds are required of a participating food
disqualified for violation of program rules (or, in
limits the imposition of money penalties to cases
retailer and wholesaler who has violated food stamp
cases where disqualification would cause hardship to
where disqualification would cause hardship to food
rules and wishes to be re-approved for participation.
food stamp households, receive a civil money penalty
stamp households. Permits the imposition of both a
The provision limits the period of time for which
of up to $10,000 per violation). Disqualification is to
disqualification and a money penalty. Removes the
bonding is required. [Sec. 4303]
be: (1) six months to five years (first violation), (2)
6-month and 10-month minimum disqualification
10 months to 10 years (second violation), and (3)
requirements. Requires the establishment of
permanent on a third violation, a disqualification
procedures whereby participating food concerns may
based on trafficking in benefits, or a finding of the
be immediately suspended for “flagrant violations,”
sale of firearms, ammunition, explosives, or
pending appeal. [Sec. 4017]
controlled substances. An alternative to permanent
disqualification allows civil money penalties of up to
$20,000 per incident to be imposed. [7 U.S.C. 2021]
No comparable provision.
No comparable provision.
Requires USDA to issue regulations defining dietary
supplements: multivitamin-mineral supplements
providing prescribed minimum amounts of essential
vitamins, minerals and certain prescribed amounts of
folic acid and calcium. Requires proposed
regulations within one year of enactment, and final
regulations within two years of enactment. No
dietary supplements may be purchased with program
benefits until final regulations have been issued or a
voluntary system of labeling for the identification of
eligible dietary supplements is certified by USDA.
[Sec. 4402]

---

CRS-71
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Fruits and Vegetables
Sec. 18(g) of the Richard B. Russell National School
Expands the existing fresh fruit and vegetable
Replaces the existing fresh fruit and vegetable
Lunch Act requires a fresh fruit and vegetable
program in elementary and secondary schools.
program. The new program provides mandatory
program. Most recently, this program was funded at
Increases annual mandatory funding to $70 million
funding of $225 million in the first year (indexed for
a total of $18.9 million for FY2008 ($9 million of
and makes the program available nationwide in (1)
inflation in later years) to make free fresh fruits and
which is mandatory), and $9.9 million of which was
35 elementary and secondary schools in each state
vegetables available in selected (by states)
provided by the Consolidated Appropriations Act of
and (2) additional schools in each state in proportion
elementary schools. Allocates funding among states
2008 (P.L. 110-161). This program makes fresh
to the state’s student population. No new Indian
under a formula distributing about half the money
fruits and vegetables available in selected elementary
reservations would be added specifically. Up to 1%
equally among states and apportioning the remainder
and secondary schools in a limited number of states
of funds may be reserved for federal administration,
based on population. At least 100 schools chosen to
and on three Indian reservations. [42 U.S.C. 1769(g)]
and states may use up to 5% of their allocation for
participate must be on Indian reservations. Annual
administrative expenses. [Sec. 4303]
per-student grants would be determined by states, but
must be between $50 and $75. Requires an
evaluation, providing $3 million in funding. [Sec.
4904]
Sec. 10603 of the 2002 farm bill states that USDA is
Increases the set-aside for the Department of Defense
Provides that, in lieu of purchases required under
required to use not less than $200 million a year in
Fresh program (“DoD Fresh”) to $75 million a year.
Sec. 10603, USDA purchase fruits, vegetables, and
Section 32 funding to purchase fruits, vegetables, and
[Sec. 4301]
nuts for use in domestic food assistance programs
certain other specialty food crops. Of this amount, at
using Section 32 funds. Minimum purchase amounts
least $50 million a year must be used to acquire fresh
are $390 million for FY2008, rising to $406 million
fruits and vegetables for schools through the “DoD
in FY2012 and for each year thereafter. [Sec. 4907]
Fresh” program (using the Defense Department as
the procurement agent).
[7 U.S.C. 612c-4]
The Emergency Food Assistance Program (TEFAP)
Sec. 27 of the Food Stamp Act to use $140 million
Increases required funding for TEFAP commodities
Increases required annual funding for TEFAP
of annual appropriations under the Food Stamp Act
to $250 million for FY2008; for later years, this
commodities to $250 million. [Sec. 4110] Increases
to purchase food commodities for distribution
amount is indexed annually for food-price inflation.
the annual authorization of appropriations for TEFAP
through TEFAP emergency feeding organizations.
[Sec. 4028] Increases the annual authorization of
administrative and distribution costs to $100 million.
Sec. 204(a) of the Emergency Food Assistance Act
appropriations for TEFAP administrative and
[Sec. 4802]
authorizes annual appropriations of $60 million for
distribution costs to $100 million. [Sec. 4201]
TEFAP administrative and distribution costs.
[7 U.S.C. 2036 and 7508(a)]

---

CRS-72
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Commodity Supplemental Food Program (CSFP)
Income eligibility limits for the CSFP are set at 130%
Requires USDA to establish income eligibility limits
Permits CSFP projects to serve low-income elderly
of the federal income poverty guidelines for elderly
for the CSFP that are the same for all applicants. The
persons with income up to 185% of the poverty
applicants and 185% of the guidelines for house-
limits may not exceed 185% of the poverty
guidelines, if USDA determines that annual
holds composed of women, infants, and children.
guidelines. [Sec. 4203]
appropriations have enabled every state seeking to
[7 U.S.C. 612c note; regulations under Sec. 5 of the

participate in the CSFP to participate. [Sec. 4802]
1973 Agriculture and Consumer Protection Act]
Food Distribution Program on Indian Reservations (FDPIR)
Sec. 4 of the Food Stamp Act states that, at the
Authorizes annual appropriations of $5 million for a
Similar to the House bill, but: (1) provides authority
request of Indian tribal organizations, a FDPIR may
fund to purchase traditional and locally grown foods
for the purchase of bison meat for the FDPIR (subject
be operated on Indian reservations in lieu of food
for the FDPIR. Requires that at least 50% of these
to appropriations), (2) requires a survey of
stamps. [7 U.S.C. 2013]
foods be produced by Native American farmers,
participants to determine which traditional foods are
ranchers, and producers. Requires a report reviewing
most desired, and (3) does not include a House
the procedures for determining the contents of
requirement that at least 50% of distributed foods be
FDPIR food packages and the adequacy of the
produced by Native American farmers, ranchers, and
packages and any plans to revise them to conform
producers. [Sec. 4501]
with dietary guidelines. [Sec. 4004]
Senior Farmers’ Market Nutrition Program (SFMNP)
Sec. 4402 of the Farm Security and Rural Investment
Authorizes additional appropriations of $20 million
Provides annual mandatory funding of $10 million.
Act of 2002 established the SFMNP to provide low-
for FY2008, rising to $75 million by FY2012. Adds
The value of SFMNP benefits cannot be considered
income seniors with vouchers for fresh, locally
honey to the list of items that may be purchased.
income or resources for any purposes under any
grown fruits, vegetables and herbs usable at farmers’
Provides that the value of benefits not be considered
federal, state, or local law. States and localities also
markets, roadside stands, and community-supported
income or resources for any purposes under any
are prohibited from collecting sales taxes on food
agriculture programs. Provides annual mandatory
federal, state, or local law. Prohibits states and
purchased with SFMNP vouchers.
funding of $15 million. [7 U.S.C. 3007]
localities from collecting sales taxes on SFMNP
[Sec. 4701& 4702]
food-voucher purchases. [Sec. 4401]
Community Food Projects
Sec. 25 of the Food Stamp Act authorizes USDA to
Expands the list of projects to be given preference to
Provides $10 million in annual mandatory funding.
make grants to non-profit agencies for community
include emergency food infrastructure initiatives,
[Sec. 4801]
food projects that require a one-time infusion of
those dealing with retail access in under-served
assistance to become self-sustaining. Certain types
markets, those integrating urban and metro-area food

---

CRS-73
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
of projects are to be given preference. The term of a
production, and those providing assistance for youth,
grant may not exceed three years. Not more than $5
socially disadvantaged individuals, and groups with
million of annual appropriations under the Food
limited resources. Increases the maximum term for
Stamp Act may be used for community food project
grants to five years. Authorizes annual appropriations
grants. Of available funds, $200,000 must be
of $30 million and increases the set-aside for the
allocated to a special project grant for addressing
grant for common community food problems to
common community food problems. Federal cost-
$500,000. Raises the federal cost-sharing limit to
sharing is not to exceed 50%. [7 U.S.C. 2034]
75%. [Sec. 4027]
Geographic Preference (Purchase of Locally Produced Foods)
Sec. 9(j) of the Richard B. Russell National School
Removes provisions for start-up grant funding to help
Same as the House bill, except that geographic
Lunch Act requires USDA to encourage schools to
carry out the locally produced food purchase policy.
preference would be allowed only for locally grown
purchase locally produced foods to the maximum
Requires USDA to allow schools and other
fruits and vegetables. [Sec. 4902]
extent practicable and appropriate. Authorizes
institutions receiving funds under the National
appropriations of $400,000 a year (including for
School Lunch and Child Nutrition Acts to use
start-up grants for equipment and incurred costs).
geographic preference for the procurement of locally
[42 U.S.C. 1758(j)] By regulation, any procurement
produced foods. The Defense Department, acting as
under USDA entitlement programs, including school
a fresh fruit and vegetable procurement agent for
meal and other child nutrition programs, must be
schools, also is covered by this rule. [Sec. 4304]
conducted in a manner that prohibits the use of
statutorily or administratively imposed in-state or
local geographic preferences (except in cases where
federal statute expressly mandates or encourages
geographic preference). [7 CFR 3016.60(c),
3016.36(c)(2)]
Special Initiatives
No comparable provision.
Authorizes annual appropriations of $10 million for a
Provides total mandatory funding of $50 million for
demonstration competitive grant program (“Initiative
pilot projects to develop and test methods of using
to Address Obesity Among Low-Income
the (renamed) Food Stamp program to improve the
Americans”) to develop and implement strategies to
dietary and health status of participants, including
reduce obesity in the low-income population. Project
obesity. Project initiatives are to increase the
proposals would be evaluated against criteria
availability and purchase of healthy foods and may
including identification of a low-income target
include expanded program benefits, greater access to
audience, incorporation of scientifically based
farmers’ markets, incentives to participating food

---

CRS-74
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
strategies to improve diet quality, commitment to a
concerns, new approval requirements for
rigorous evaluation, and inclusion of strategies for
participating food concerns, point-of-purchase
after-school food service and improvement of
incentives for program recipients to buy healthy
children’s health. Prohibits the use of demonstration
foods, and education programs. Up to 50% of the
funds for projects that limit the use of benefits. [Sec.
funding must be used for point-of-purchase incentive
4023]
projects. [Sec. 4403]
No comparable provision.
Directs a comprehensive study of extending the
Same as the House bill, but also provides $1 million
regular (renamed) Food Stamp program to Puerto
in mandatory funding for the study. [Sec. 4206]
Note: Puerto Rico receives an annual (indexed)
Rico. [Sec. 4026]
nutrition assistance block grant in lieu of operating a
regular Food Stamp program.
No comparable provision.
No comparable provision.
Provides mandatory funding ($5 million) for grants
to projects for expanding the number of farmers’
markets that accept electronic benefit transfer (EBT)
cards used in the (renamed) Food Stamp program.
[Sec. 4210]
No comparable provision.
No comparable provision.
Requires a periodically updated study of hunger in
the U.S., assessing data and hunger-reduction
measures and making policy recommendations.
Authorizes annual appropriations of $50 million for
matching grants (1) to food program service
providers and nonprofits to assess community hunger
problems and meet goals for achieving “hunger-free
communities” and (2) to emergency feeding
organizations for infrastructure development.
Authorizes $50 million a year for these studies and
grants. [Sec. 4405]
No comparable provision.
No comparable provision.
Requires periodic USDA surveys of foods purchased
by schools in the School Lunch program and
provides mandatory funding of $3 million for each
survey. [Sec. 4901]
Sec. 19 of the Child Nutrition Act authorizes
No comparable provision.
Provides annual mandatory funding of $3 million for
appropriations for “Team Nutrition Network” grants
Team Nutrition Network grants. [Sec. 4905]

---

CRS-75
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
to states and local education agencies to carry out
nutrition education activities for schoolchildren. [42
U.S.C. 1788]
No comparable provision.
No comparable provision.
Establishes a pilot project to provide whole grain
products as meal supplements (snacks) in after-
school programs operated by a limited number of
elementary and secondary schools in 6 states and on
one Indian reservation. Provides mandatory funding
of $4 million to carry out and evaluate project.
Funds are to be derived equally from money
otherwise available for the Senior Farmers’ Market
Nutrition program and community food projects.
[Sec. 4912]
No comparable provision.
No comparable provision.
Authorizes a “food employment empowerment and
development” (FEED) program with USDA
providing grants to public and private nonprofit
agencies to encourage the use of community
resources to combat hunger through projects that
recover unused food and provide job training related
to food recovery and preparation. [Sec. 4914]
No comparable provision.
No comparable provision.
Authorizes competitive grants totaling $10 million
annually to expand the capacity and infrastructure of
food banks so as to improve their ability to handle
“time-sensitive” (perishable) food products, their
identification of potential food donors, and
procurement of locally produced foods. [Sec. 4915]
AGRICULTURAL CREDIT (TITLE V)
USDA Farm Ownership Loans
Requires borrowers for USDA direct farm ownership
No comparable provision.
Expands and clarifies the qualification criteria to
loans to have training, or farming and ranching
allow USDA to take “into consideration all farming
experience, that “is sufficient to assure reasonable
experience...without regard to any lapse between
prospects of success in the proposed farming
farming experiences.” [Sec. 5001] Same provision

---

CRS-76
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
operations.” [7 U.S.C. 1922(a)(2)] Same provision
for farm operating loans Sec. 5101(1)-(2)]
for farm operating loans. [7 U.S.C. 1941(a)(2)]
Allows direct farm ownership loans to be used for
No comparable provision.
Adds another loan purpose to allow beginning
buying a farm or ranch, capital improvements,
farmers and ranchers to use a direct farm ownership
closing costs, soil/water conservation projects, and
loan to refinance a guaranteed farm ownership loan.
refinancing bridge loans. [7 U.S.C. 1923(a)(1)]
[Sec. 5002]
Allows direct and guaranteed loans for soil and water
Replaces prior law provision with a new conservation
Adds additional purposes for the conservation loan to
conservation projects. Gives priority to conservation
loan guarantee program. Provides loan guarantees or
include (1) conversion to organic production and (2)
structures or practices that comply with 16 U.S.C.
interest rate subsidies for qualified conservation
certain environmental quality practices. Gives
3812. Maximum loan size is $50,000.
projects to farmers, ranchers or other entities
priority to beginning farmers or ranchers, socially
[7 U.S.C. 1924]
primarily engaged in farming. Gives priority to
disadvantaged farmers or ranchers, and management
beginning farmers and ranchers, socially
practices that comply with 16 U.S.C. 3812.
disadvantaged farmers or ranchers, conversion to
Eliminates the maximum loan size provision. [Sec.
sustainable or organic production, or structures or
5003]
practices that comply with 16 U.S.C. 3812.
Maximum loan size is $1 billion, for up to 10 years.
Allows guarantees up to $1 million on between 80%
to 90% of the loan amount. Interest rate subsidies
range from 3-5%, depending on loan. Authorizes
discretionary appropriations of such sums as
necessary (FY2008-12). [Sec. 5001]
Sets a maximum per borrower of $200,000 for direct
Raises to $300,000 the maximum loan per borrower.
Similar to House bill, except does not have clause
farm ownership loans. [7 U.S.C. 1925]
Requires USDA to establish plans to encourage
about graduation to other sources of credit. [Sec.
borrowers to graduate to private or commercial
5004]
credit. [Sec. 5002]
Authorizes down payment loans on farm real estate
Expands eligibility to include socially disadvantaged
Similar to House bill, except interest rate equals the
to beginning farmers and ranchers up to 40% of the
farmers and ranchers. Raises loan limit to 45% of the
greater of 2% or the regular direct farm ownership
purchase price or appraised value. Maximum
lowest of the purchase price, appraised value, or
interest rate minus 4%. [Sec. 5005]
property value is $250,000. Loan duration up to 15
$500,000. Removes limit on property value. Extends
years. Interest rate equals 4%. Requires borrower
loan duration up to 20 years. Interest rate equals the
down payment of 10%. [7 U.S.C. 1935]
greater of 1% or the regular direct farm ownership
interest rate minus 4%. Reduces borrower down
payment requirement to 5%. Requires USDA to

---

CRS-77
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
establish annual performance goals. [Sec. 5003]
Creates a pilot program to guarantee loans made by a
Makes permanent and nationwide the guarantee
Similar to House bill, except does not include
private seller of a farm or ranch to a beginning
program for privately financed contract land sales.
socially disadvantaged farmers and ranchers, and
farmer or rancher on a contract land sales basis.
Expands eligibility to socially disadvantaged farmers
does not include seller’s choice for guaranteed
Available in 5 States, up to 5 loans per state in each
and ranchers. Requires a 5% down payment. Sets
payment of 90% of outstanding principal. [Sec.
of fiscal years 2003-07. [7 U.S.C. 1936]
maximum purchase price at $500,000 and a 10-year
5006]
maximum guarantee. Seller chooses a guarantee plan
of either 3 amortized annual installments, or 90% of
the outstanding principal. [Sec. 5004]
Authorizes USDA loans to any Indian Tribe or tribal
Authorizes loans to purchasers of highly fractioned
Similar to House bill. [Sec. 5401]
corporation to acquire lands within the tribe’s
land. [Sec. 5005]
reservation or a community in Alaska.
[25 U.S.C. 488]
USDA Farm Operating Loans
Limits direct farm operating loans to (1) beginning
No comparable provision.
Extends by one year (to seven years) the eligibility
farmers or ranchers, or (2) farmers or ranchers who
for a direct operating loan. [Sec. 5101(3)]
have received direct operating loans for 6 or fewer
years. [7 U.S.C. 1941(c)(1)]
Sets a maximum per borrower of $200,000 for direct
Raises to $300,000 the maximum per borrower.
Similar to House bill. [Sec. 5102]
farm operating loans. [7 U.S.C. 1943]
[Sec. 5011]
Limits eligibility for guaranteed operating loans to 15
Extends the suspension of term limits for guaranteed
Repeals the term limits provision on guaranteed
years (a.k.a., term limits). The 2002 farm bill and
operating loans through Jan. 1, 2008. [Sec. 5012]
operating loans. [Sec. 5103]
successive legislation suspended application of this
limit. [7 U.S.C. 1949(b)(1)]
Administrative Provisions
No comparable provision.
No comparable provision.
Creates a pilot program of individual development
accounts for beginning farmers and ranchers in at
least 15 States. Producers make deposits into savings
accounts and receive a matching deposit ranging
between 3 to 1 per dollar deposited (maximum
$9,000 matching per year). Withdrawals allowed to

---

CRS-78
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
buy farmland; make mortgage payments; buy
equipment, breeding stock, or trees; harvest timber;
or pay for training. Withdrawals must be made within
two years after the last match. Program delivered
through private entities that apply for grants up to
$300,000; requires non-federal matching of 25%.
Duration is five years, plus two years for
withdrawals. Authorizes appropriations of $10
million annually in FY2008-12. [Sec. 5201]
Requires USDA to include beginning farmers and
Gives first priority to socially disadvantaged farmers
Similar to House bill, except does not give priority to
ranchers in the process when selling or leasing
and ranchers when USDA sells or leases property.
socially disadvantaged farmers over beginning
USDA-acquired property. [7 U.S.C. 1985(c)]
Adds socially disadvantaged farmers to beginning
farmers. [Sec. 5202(a)]
farmers when discussing steps in the process.
[Sec. 5021]
Reserves loan amounts for beginning farmers and
Increase the reservation for beginning farmers and
Similar to House bill, except refers to “joint
ranchers: 70% of direct farm ownership loans, and of
ranchers: 75% of direct farm ownership loans, and of
financing arrangements” instead of “participation
this amount, 60% for down payment loans. Reserves
this amount b for the down payment and
loans.” [Sec. 5202(b)]
35% of direct operating loans (FY2003-07). Reserves
participation loans. Reserves 50% of direct operating
25% of guaranteed farm ownership loans, and 40%
loans in FY2008-12. Reserves 40% of guaranteed
of guaranteed operating loans. [7 U.S.C. 1994(b)(2)]
farm ownership loans. [Sec. 5022]
Sets loan authorization levels totaling $3.796 billion
No comparable provision.
Raises loan authorization levels to $4.226 billion for
for each of FY2003-07, including $770 million for
each of FY2008-12, including $1.2 billion for direct
direct loans ($205 million for farm ownership loans,
loans ($350 million for farm ownership loans and
and $565 million for operating loans), and $3.026
$850 million for operating loans). No increases for
billion for guaranteed loans ($1 billion farm
guaranteed loans. [Sec. 5204]
ownership loans, and $2.026 billion for operating
loans). [7 U.S.C. 1994(b)(1)]
No comparable provision.
Requires USDA to promote the goal of moving
Similar to House bill. [Sec. 5203]
borrowers to commercial or other sources of credit
when writing regulations. [Sec. 5023]
Requires an interest rate reduction program for
No comparable provision.
Clarifies that the interest rate reduction program be
guaranteed loans. [7 U.S.C. 1999(a)]
available for new guaranteed operating loans or
restructured guaranteed operating loans. [Sec. 5205]

---

CRS-79
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Allows re-amortization of the repayment of a shared
No comparable provision.
Clarifies that deferral is an available loan servicing
appreciation agreement that is delinquent. [7 U.S.C.
tool and that deferral may not exceed one year.
2001(e)(7)(D)]
[Sec. 5206]
No comparable provision.
Prohibits USDA from studying or entering into a
Similar to House bill. [Sec. 5207]
contract for competitive sourcing in the rural
development or farm loan programs. [Sec. 5025]
Allows a borrower-owner who is occupying a
Extends the right of first refusal to reacquire
No comparable provision.
homestead that is in the possession of USDA because
homestead property during the occupancy period to
of foreclosure or bankruptcy to have the right of first
members of the immediate family of a borrower-
refusal to reacquire the homestead property at any
owner who is a socially disadvantaged farmer or
time during occupancy. [7 U.S.C. 2000(c)(4)(B)]
rancher. [Sec. 5024]
Authorizes the Farm Service Agency emergency
No comparable provision.
Adds eligibility for emergency loans to equine
disaster loans for farmers, ranchers, and aquaculture
farmers and ranchers. [Sec. 5404]
operations under certain conditions. [7 U.S.C.
1961(a)]
Defines “farmer” and “farming” to include fish
No comparable provision.
Adds commercial fishing to the definition of farmer
farming. [7 U.S.C. 1991(a)(1)-(2)]
and farming. [Sec. 6020(c)]
Farm Credit System (FCS)
Allows voting stock in Banks for Cooperatives to be
Allows other categories of persons and entities who
No comparable provision.
held only by (1) cooperative associations that are
are eligible to borrow from Banks for Cooperatives
eligible to borrow from the banks; and (2) other
to hold voting stock, as determined by the board of
banks for cooperatives. [12 U.S.C. 2124(c); 12
directors. [Sec. 5031]
U.S.C. 2154a(c)(1)(D)]
Sets the par value of capital stock in the Bank for
No comparable provision.
Makes a technical correction to refer to par value.
Cooperatives. [12 U.S.C. 2124(b)]
[Sec. 5302]
Requires that members of the Farm Credit
No comparable provision.
Requires Senate confirmation of the President’s
Administration Board be appointed by the President
choice of chairman. [Sec. 5303]
and confirmed by the Senate. The President
designates one as chairman. [12 U.S.C. 2242(a)]
Defines what types of loans are eligible for the
Allows rural utility (electric or telephone facility)
Similar to House bill, except (1) it recasts loan

---

CRS-80
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
agricultural mortgage secondary market (Farmer
loans to qualify for the agricultural mortgage
standards in terms of agricultural mortgages, and (2)
Mac). [12 U.S.C. 2279aa(9)]
secondary market (Farmer Mac). Does not apply
removes congressional review of standards (in 12
certain requirements for guarantees and standards to
U.S.C. 2279aa-8). [Sec.5306(a)-(c)]
rural utility loans. [Sec. 5032]
Establishes a risk-based capital test for the Federal
Provides for separate consideration of rural utility
Similar to House bill. [Sec. 5306(d)]
Agricultural Mortgage Corporation (Farmer Mac) to
(electric and telephone) loans when determining
determine a sufficient level of capitalization. [12
credit risk. [Sec. 5034]
U.S.C. 2279bb-1(a)]
Allows any Farm Credit System bank to charge
Replaces the formula for computing assessments with
Similar to House bill, except it specifies that the
associations in its district for the cost of premiums
a requirement that the assessment be computed in an
equitable manner be determined by the FCS
due to the Farm Credit System Insurance Corporation
equitable manner. [Sec. 5033(a)]
Insurance Corporation. [Sec. 5301(a)]
(FCSIC) by using a specified formula based on
accrual status and various government guarantees.
[12 U.S.C. 2020(b)]
Gives the FCSIC Board of Directors power to issue
Gives rule-making authority for “authority to pass
Similar to House bill. [Sec. 5301(b)]
rules and regulations. [12 U.S.C. 2277a-7(10)]
along cost of insurance premiums” to FCSIC Board
of Directors. [Sec. 5033(h)]
Allows the FCSIC to collect premiums annually.
Removes specification of “annual” when referring to
Similar to House bill. [Sec. 5304]
When the Insurance Fund does not exceed the secure
FCSIC premiums. Changes formula for premiums by
base amount, premiums equal different rates
using different rates and classes of assets: insured
multiplied by outstanding principal of accrual
obligations after deducting 90% of federally-insured
(0.0015), non-accrual (0.0025), and various
accrual loans and investments and 80% of state-
government-guaranteed (0.00015-0.0003) loans.
insured accrual loans and investments (0.002), non-
Allows reduced premiums when the Fund exceeds
accrual loans (0.001), and other than temporarily-
the secure base amount. The base amount is 2% of
impaired investments (0.001). Revises the secure
outstanding insured obligations of all insured System
base amount definition to include federal- and state-
banks reduced by 90% of federally-insured loans and
guaranteed investments. Calculate outstanding
80% of state-insured loans. Excess premiums
principal to include investments. Calculate excess
collected in the Fund over the secure base amount are
funds using year-end balances and simplify formula
allocated to insurance reserve accounts for each bank
to allocate among banks. Terminates reserve fund for
and the Financial Assistance Corporation using
Financial Assistance Corp. [Sec. 5033(b)-(f)]
average daily balances. [12 U.S.C. 2277a-4]
Requires annual certification, reporting of loan
Gives discretion to FCSIC for timing of certification.
Similar to House bill. [Sec. 5305]

---

CRS-81
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
balances, and payment of premiums by FCS banks to
Premiums are not to be collected more than quarterly.
the FCSIC. [12 U.S.C. 2277a-5]
[Sec. 5033(g)]
No comparable provision.
No comparable provision.
Changes lending authorities of FCS associations (in
AL, MS, and LA) by allowing Federal Land Bank
Associations to make short-and intermediate-term
loans, and Production Credit Associations to make
long-term loans. Requires board of directors and
stockholder approval. Effective Jan. 1, 2010. [Sec.
5307]
RURAL DEVELOPMENT (TITLE VI)
Defining Rural Eligibility
Sec. 343(a) of the Consolidated Farm and Rural
Directs USDA to submit a report to the Agriculture
Creates a standard definition of rural area that
Development Act (Con Act), as amended, defines
Committees: (1) assessing the varying definitions of
excludes (1) cities of 50,000 or more, (2) urbanized
rural as any area other than a city or town with a
rural used by USDA; (2) describing the effect of
area contiguous and adjacent to a city of 50,000 or
population greater than 50,000 and the urbanized
varying definitions on USDA’s programs; and (3)
more, and (3) any collection of contiguous census
area contiguous and adjacent to such a city or town.
recommending changes to better target funds through
blocks with a specific housing density, or adjacent to
[7 U.S.C. 1991(a)]
rural development programs. [Sec. 6001]
a city of 50,000 or urban area. [Sec. 6020]
No comparable provision.
Authorizes USDA to review socioeconomic variables
No comparable provision.
as consideration factors in awarding rural
development loans and grants, and to issue
regulations. [Sec. 6014]
Rural Infrastructure: Water and Waste Disposal
The 2002 farm bill amended the Con Act to authorize
Reauthorizes through 2012. [Sec. 6002]
Reauthorizes through 2012. [Sec. 6001].
USDA to make water and wastewater grants for
development projects for the storage, treatment,
purification, or distribution of water or the collection,
treatment, or disposal of waste in rural areas.
Authorizes $30 million in annual appropriations for
FY2002-07.[7 U.S.C. 1926(a)(2)(B)(vii)]

---

CRS-82
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
The 2002 farm bill amended the Con Act to authorize
Reauthorizes through 2012, authorizing $25 million
Reauthorizes through 2012, authorizing $20 million
appropriations for a water/wastewater circuit rider
for FY2008. [Sec. 6004]
for FY2008. [Sec. 6004]
program, providing technical assistance based on a
National Rural Water Association program. [7 U.S.C.
1926(a)(22)(C)] Authorizes appropriations of $15
million for FY2003 and each year thereafter.
The 2002 farm bill amended the Con Act to authorize
Reauthorizes through FY2012.
Reauthorizes through FY2012.
USDA to provide Emergency and Imminent
[Sec. 6006]
[Sec. 6011]
Community Water Assistance Grants to rural areas
and small communities comply with the Water
Pollution Control Act or Safe Drinking Water Act.
[7 U.S.C. 1926a(i)(2)] Authorizes an appropriation
of $35 million annually for FY2003-07.
No comparable provision.
No comparable provision.
Provides $135 million in mandatory spending for
pending water/wastewater loans, grants and
emergency community assistance grants, to be
available until expended. [Sec. 6033]
The Con Act, as amended, authorizes USDA to make
Reauthorizes through FY2012.
Reauthorizes through FY2013. Amends program to
grants for water systems for rural and native villages
[Sec. 6007]
provide grants to the Denali Commission for solid
in Alaska. Authorizes appropriations of $30 million
waste management and for rural drinking water sites
annually for FY2001-07. [7 U.S.C. 1926d(d)(1)]
in Alaska (not more than 5% of total program
funding). [Sec. 6012]
The 2002 farm bill amended the Con Act to authorize
Reauthorizes through FY2012. Amends program to
Reauthorizes through FY2012.
USDA to make grants to private nonprofits for loans
authorize USDA to make grants to private non-
[Sec. 6013]
to eligible low-income individuals to construct,
profits for loans to eligible low-income individuals.
refurbish, and service household water well systems
[Sec. 6008]
in rural areas (giving priority to certain grant
applicants). Authorizes appropriations of $10 million
annually for FY2003-07. [7 U.S.C. 1926e(d)]
The 2002 farm bill amended the Con Act to establish
No comparable provision.
Reauthorizes SEARCH grants and amends program.
a SEARCH grant program, providing technical
Provides up to 4% of funds available for water, waste
assistance for water and waste disposal facilities. [7
disposal, and essential community facilities to

---

CRS-83
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
U.S.C. 2009ee]
financially distressed communities. Directs USDA to
develop a simplified application for applicants. [Sec.
6010]
Rural Broadband and Telecommunications Development
The 2002 farm bill amended the Con Act to authorize
Reauthorizes grants through FY2012.
Similar to the House bill. [Sec. 6026]
grants to acquire radio transmitters to increase rural
[Sec. 6018]
coverage by all-hazards weather radio broadcasts of
the National Oceanic and Atmospheric
Administration. Authorizes appropriation of such
sums as needed for FY2002-07. [7 U.S.C. 2008p]
The 2002 farm bill amended the Rural Electrification
Reauthorizes through FY2012. Redefines eligibility
Reauthorizes through FY2012. Redefines eligibility
Act (REA) of 1936 [7 U.S.C. 901 et seq.] by
and prioritizes loan applications to areas based on
and prioritizes loan applications. Prohibits loans to
authorizing USDA to provide loans and loan
number of service providers. Amends definition of
areas served by 3 or more providers. Authorizes $25
guarantees for the costs of providing broadband
rural area. Limits loan terms to 35 years. Extends
million annually (FY2008-12). Authorizes a National
service to rural areas, as part of the Enhancement of
authority to provide loans to FY2012. Authorizes a
Center for Rural Telecommunications Assessment
Access to Broadband Service in Rural Areas
National Center for Rural Telecommunications
and authorizes $1 million in appropriations annually.
provisions. [7 U.S.C. 950bb]
Assessment and authorizes $1 million in
[Sec. 6110] Establishes which areas are eligible for
appropriations annually. [Sec. 6023]
REA assistance. [Sec. 6105]
Sec. 601(a) et seq. of the REA, as amended,
Authorizes the Community Connect Grant Program
Authorizes the Connect the Nation Act and creates a
authorizes USDA to provide loans and loan
to provide broadband service for education, public
competitive matching grant program to encourage
guarantees to electric utilities to serve customers in
safety, and health care in rural areas. Authorizes
state initiatives for public-private partnerships [Sec.
rural areas. [7 U.S.C. 950bb(b)]
appropriations of $25 million annually (FY2008-12).
6201] and authorizes grants to encourage state
[Sec. 6024]
initiatives [Sec. 6202] to provide broadband service
to rural areas. Authorizes appropriations of $40
million annually (FY2008-12).
Sec. 2333 of the 1990 farm bill (Food, Agriculture,
Reauthorizes the grant program to assist rural public
Reauthorizes appropriations through FY2012.
Conservation, and Trade Act, P.L. 101-624) provides
television stations in making the transition from
Amends provision: (1) adds library connectivity and
grants to non-commercial television that serve rural
analog to digital broadcast equipment. [Sec. 6028]
public television station digital conversion into the
areas. [7 U.S.C. 950aaa-2] Also, Sec. 2335A
Reauthorizes Telemedicine and Distance Learning
notification; (2) species requirements on how
authorizes Telemedicine and Distance Learning
Services in Rural Areas through FY2012. [Sec. 6029]
financial assistance is to be used and criteria for
Services in Rural Areas by providing loans/grants to
prioritizing; (3) requires USDA to notice the amount
schools and medical facilities for telecom
of financial assistance available to applicants, among
technologies. [7 U.S.C. 950aaa5]
other provisions. Renames program the

---

CRS-84
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Telemedicine, Library Connectivity, Public
Television, and Distance Learning in Rural Areas,
and reauthorizes through FY2012. [Sec. 6302]
The Con Act, as amended, authorizes appropriations
No comparable provision.
Reauthorizes through FY2012. [Sec. 6016]
for grants for broadcasting systems, funded at $5
million annually (FY2002-07). [7 U.S.C. 1932(f)]
No comparable provision.
Directs USDA to prepare a report that develops a
Directs the Federal Communications Commission, in
comprehensive national broadband strategy. [Sec.
coordination with USDA, to submit a report to
6031]
Congress describing a comprehensive rural
broadband strategy. [Sec. 6111] Instructs the U.S.
Comptroller General of to conduct a study of the
Rural Utilities Service administration and of Federal
assistance for broadband programs, with
recommendations. [Sec. 6113]
The 2002 farm bill amended the REA to authorize
Reauthorizes through FY2012. [Sec. 6022]
Reauthorizes through FY2012. Expands eligibility to
USDA to expand 911 access and make telephone
emergency communication providers. Authorizes
loans for rural emergency services. [7 U.S.C. 940e]
USDA to use funds made available for telephone or
broadband loans; requires USDA promulgate
regulations [Sec. 6107]
Agricultural-Based Rural Economic Development
The 2002 farm bill amended the Con Act to authorize
Establishes new criteria for loans and loan
Similar to the House bill, but also: defines “under-
appropriations for direct and guaranteed loans for
guarantees, directing USDA to favor projects that
served community;” establishes priorities for projects
rural business development. [7 U.S.C.
support local/regionally produced agricultural
that support community development and marketing,
1926(a)(11)(D)]
products. [Sec. 6010]
distributing, storing, aggregating, or processing a
locally-produced product; sets a per-facility limit of
up to $250,000 in loan/loan guarantees to
modify/update facilities; and requires USDA to
submit an annual report to Congress. [Sec. 6017]
No comparable provision.
Authorizes appropriations for Appropriate
Similar to the House bill. [Sec. 6018]
Technology Transfer for Rural Areas at $5 million
annually (FY2008-12). [Sec. 6011]

---

CRS-85
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
No comparable provision.
Establishes Artisanal Cheese Centers to provide
educational technical assistance to eligible cheese
manufacturing and marketing businesses. [Sec.
6023]
Sec. 231 of the Agricultural Risk Protection Act of
Authorizes mandatory funding of $30 million
Expands the definition of value-added products.
2000 [7 U.S.C. 1621], as amended by the 2002 farm
annually (FY2008-12). [Sec. 6027]
Reduces the maximum grant amount to $300,000.
bill, authorizes USDA to make Value-Added
Authorizes appropriations of such sums as are
Agricultural Product Development Grants to assist
necessary annually (FY2008-12). [Sec. 6401]
agricultural producers to establish businesses to
produce value-added agricultural products, and
provide for technical assistance and planning.
No comparable provision.
No comparable provision.
Amends the Con Act to provide reimbursement
payments to “geographically disadvantaged farmers”
(e.g., AK, HI) for costs associated with transporting
or producing an agricultural commodity. [Sec. 6021]
The 2002 farm bill amended the Con Act authorizing
Reauthorizes through FY2012 and gives priority to
Similar to the House bill; also establishes a grant may
a program to restore historic barns. [7 U.S.C.
projects that identify, document, and conduct
be made for projects that rehabilitate or repair
2008o(c)]
research on historic barns and develop and evaluate
historic barns; preserve historic barns; and identify,
appropriate techniques or best practices for
document, survey, and conduct research on historic
protecting historic barns. [Sec. 6017]
barns/structures. [Sec. 6025]
The 2002 farm bill authorized an Agricultural
Reauthorizes the program and provides $6 million
No comparable provision
Innovation Center Demonstration program. [7 U.S.C.
annually (FY2008-12).
1621]
[Sec. 6025]
Regional Economic Development and Planning
The Con Act, as amended, authorizes a Delta
Reauthorizes appropriations through FY2012. [Sec.
Reauthorizes appropriations through FY2012;
Regional Authority, providing funds for 240 counties
6019]
amends program to allow for grants for health care
in 8 states in Mississippi Delta. [7 U.S.C. 2009aa-1]
facility development. [Sec. 6029]
The 2002 farm bill amended the Con Act authorizing
Amends program to eliminate prioritization of
Eliminates requirement of a federal member of the
the Northern Great Plains Regional Authority to
activities to be funded. Modifies federal share of
commission, unless appointed. Broadens list of
make grants and loans and implement a regional
administrative expenses. Eliminates Isolated Areas
eligible organizations. Provides assistance to states
development plan. [7 U.S.C. 2009bb-1]
of Distress designation. [Sec. 6020]
in providing regional plans for renewable energy and

---

CRS-86
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
transportation. [Sec. 6030]
No comparable provision.
No comparable provision.
Amends the Con Act to authorize a new Northern
Border Economic Development Commission (VT,
NY, NH, and ME); authorizes appropriations of $40
million annually (FY2008-12). [Sec. 6034]
The Con Act, as amended, authorizes USDA to make
No comparable provision.
Reauthorizes through FY2012. [Sec. 6005]
grants to multi-jurisdictional regional planning and
development organizations; $30 million annually
through FY2007. [7 U.S.C. 1926(a)(23)]
The Con Act, as amended, authorizes loans and
No comparable provision.
Directs USDA to continue Rural Economic Area
grants for business and community development. [7
Partnership Zones (NY, ND, and VT) with areas of
U.S.C. 1932]
high unemployment/poverty. [Sec. 6019]
No comparable provision.
Directs USDA, in coordination with the Department
No comparable provision.
of Transportation, to prepare a report on railroad
issues regarding the movement of agricultural
products, renewable fuels, and economic
development. [Sec. 6032]
Rural Entrepreneurship and Business Investment Programs
The 2002 farm bill amended the Con Act to authorize
Reauthorizes through FY2012. [Sec. 6003]
Similar to the House bill. [Sec. 6002]
USDA to make Rural Business Opportunity Grants
for business development or labor training in rural
areas. Authorizes appropriations of $15 million
annually through FY2007. [7 U.S.C. 1926(a)(11)]
The Con Act, as amended, authorizes appropriations
Authorizes USDA to give preference to grant
Similar to House bill. Allows USDA to award
for grants to cooperative development centers. [7
applications that establish centers for rural
multi-year grants to programs as deemed by the
U.S.C. 1932(e)(5)]
cooperative development that demonstrate specified
Secretary; establishes a cooperative research
requirements. Authorizes $50 million annually
program; and creates a reserve for socially
(FY2008-12). [Sec. 6009]
disadvantaged communities. [Sec. 6015].

---

CRS-87
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
Authorizes a new Rural Entrepreneur and
Authorizes a new Rural Microenterprise Assistance
Microenterprise Assistance Program. Authorizes $20
Program, with mandatory spending of $40 million for
million annually (FY2008-12). [Sec. 6013]
FY2008, available until expended. [Sec. 6022]
The 2002 farm bill amended the Con Act, authorizing
Limits discretionary funding of not more than $25
Authorizes a new Rural Collaborative Investment
the Rural Strategic Investment Program, providing an
million annually FY2008-2012. Adds planning grant
Program, with mandatory spending of $135 million
equity generating program for rural business
eligibility for “rural heritage sites.” [Sec. 6021]
for grants and administrative activities. [Sec. 6032]
development modeled on the Small Business
Investment Companies of the Small Business
Administration. [7 U.S.C. 2099dd et seq.]
The 2002 farm bill amended the Con Act, authorizing
No comparable provision.
Reauthorizes through FY2012, with modifications:
the Rural Business Investment Program to make
debentures may be prepaid at any time; distributions
loans/grants through regional investment boards.
may be made to cover tax liability; USDA fees are
[7 U.S.C. 2009cc-5]
limited to an application fee of $500; and USDA will
not be required to operate the program with other
federal agencies. [Sec. 6031]
Community Development Programs
The 2002 farm bill authorizes grants for units of
Reauthorizes the Rural Firefighters and Emergency
No comparable provision.
general local government, Indian tribes, to pay the
Personnel Grant Program, appropriations up to $30
cost of training firefighters and emergency medical
million annually (FY2008-12). Expands the types of
personnel. [7 U.S.C. 1621]
eligible entities. [Sec. 6026]
The 2002 farm bill amended the Con Act to authorize
Reauthorizes through FY2012. [Sec. 6016]
Reauthorizes through FY2012. [Sec. 6024]
the National Rural Development Partnership, a state-
federal partnership of community rural development
entities. [7 U.S.C. 2008m]
The 2002 farm bill amended the Con Act to authorize
No comparable provision.
Authorizes $40 million in mandatory spending for
loans and grants for “essential community facilities”
loans, grants, and loan guarantees to construct child
(incl. child day care). [7 U.S.C. 1926(a)(19)]
day care facility grants. [Sec. 6003]
The Con Act, as amended, authorizes the Community
No comparable provision
Reserves 0.5% of the funds for community facilities
Facility Grants Program, limited to $10 million per
to eligible entities located in freely associated states
fiscal year for grants to local governments,
or outlying areas as defined in the Elementary and
nonprofits, and Indian tribes to provide the federal
Secondary Education Act of 1965. [Sec. 6008]

---

CRS-88
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
share of the cost of developing specific essential
community facilities authorizes funds for essential
community facilities. [7 U.S.C. 1926(a) 19]
The Con Act, as amended, authorizes funds for
No comparable provision
Amends to give priority for community facility
essential community facilities; the maximum amount
projects that are carried out with a non-Federal share
of a community facility grant cannot exceed 75% of
of funds that is substantially greater than the
the project costs. [7 U.S.C. 1926(a) 19B]
minimum requirement, as determined by USDA
regulation. [Sec. 6009]
The 2002 farm bill amended the Con Act to authorize
Reauthorizes through FY2012. Amends program to
Reauthorizes through FY2012. Increases the
USDA to provide cost-share grants to tribal colleges
direct USDA to establish a maximum percentage of
maximum federal grant tribal colleges and
and universities for developing essential community
the cost of a facility covered by a grant. Caps non-
universities receive for the cost of developing
facilities in rural areas and universities, as defined in
federal support to no more than 5% of the facility’s
essential community facilities in rural areas to 95%.
the Higher Education Act of 1965 for developing
total cost. [Sec. 6005]
[Sec. 6007]
essential community facilities in rural areas.
Authorizes $10 million in annual appropriation for
FY2003-07. [7 U.S.C.1926(a)(25)]
No comparable provision.
No comparable provision
Makes technical changes to address funding for
cooperative organizations by allowing for business
guarantees of loans. [Sec. 6014]
No comparable provision.
No comparable provision.
Provides grants to expand rural employment
opportunities for individuals with disabilities.
Authorizes $2 million annually (FY2008-12).
[Sec. 6028]
The Con Act authorizes grants to train farm workers
No comparable provision.
Reauthorizes through FY2012. [Sec. 6027]
in new technologies and in specialized skills for
higher value crops; authorizes appropriations of $10
million annually through FY2007 [7 U.S.C.
1981q(c)]
No comparable provision.
Amends the Con Act to authorize grants to improve
Authorizes loans and loan guarantees to improve the
the technical infrastructure of rural health care
technical infrastructure of rural health care facilities.
facilities at $30 million annually (FY2008-12).
Provides $50 million in mandatory spending (with at
Identifies types of eligible rural health facilities.
least $25 million for hospitals with less than 50 acute

---

CRS-89
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
[Sec. 6012]
care beds). [Sec. 6006]
No comparable provision.
No comparable provision.
Authorizes the Secretary of Housing and Urban
Development to provide financial assistance for
community-based housing development entities and
affordable housing projects, and other requirements.
Authorizes appropriations of $10 million (FY2008);
$15 million annually (FY2009-10). [Secs. 6501-
6505]
Other Rural Development Provisions
The REA, as amended, authorizes USDA to make
No comparable provision.
Inserts “efficiency and” before “conservation;”
loans for rural electrification and telephone services
makes technical changes to loan and grants for
and to assist borrower in implementing
electric generation; establishes fees for baseload
improvements to electrical and telephone service. [7
generation loan guarantees; defers loan payments for
U.S.C. 901 et seq.]
improved energy efficiency; defines “rural” and
“farm” for borrowing eligibility; and specifies
procedures for borrowers. [Secs. 6101-6104; 6109]
The REA, as amended, authorizes USDA to issue
Reauthorizes through FY2012. [Sec 6030]
Similar to the House bill, but limits guarantees to no
bonds for rural electrical generation or telephone
more than $1 billion and establishes technical
purposes. [7 U.S.C. 940c-1(f)]
provisions for bond guarantees. [Sec. 6106]
The REA, as amended, authorizes USDA to make
No comparable provision.
Defines “qualified energy source” and permits loans
loans for electrical generation in rural areas. [7
for electrical generation from renewable sources sold
U.S.C. 940f]
to non-rural residents at sets loan rates. [Sec. 6108]
The REA, as amended, authorizes USDA to make
No comparable provision.
Defines “substantially underserved trust areas” and to
exceptions for electrification borrowers to relieve
authorize USDA to make loan rates as low as 2% to
them of regulatory requirements. [7 U.S.C. 936e]
qualified utilities serving these areas. [Sec. 6112]
The 1990 farm bill, as amended, authorizes a rural
No comparable provision.
Reauthorizes through FY2012.
electronic commerce extension program to provide
[Sec. 6301]
assistance to rural businesses. [7 U.S.C. 59239e]
The Housing Act of 1949, as amended, authorizes a
No comparable provision.
Amends program to include aquacultural workers.
loan and grant program to provide housing
[Sec. 6420]
construction and assistance to farm labor. [42 U.S.C.

---

CRS-90
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
1484(f)(3)]
AGRICULTURAL RESEARCH (TITLE VII)
Structure and Funding of Research, Education, and Extension
Current policy functionally categorizes Cooperative
Formally categorizes each existing CSREES program
Formally categorizes each existing CSREES program
State Research, Education, and Extension Service
as a “capacity program” or “competitive program,”
as an “infrastructure program” (i.e., capacity
(CSREES) programs for state-level research,
and designates the current level of funding for each
program) or “competitive program,” as in the House
education, or extension activities as “formula
category as “critical base funding.” [Sec. 7101]
provision. [Sec. 7401]
funded” or “competitive.”
The 1994 USDA reorganization act merged the
Establishes a National Agricultural Research
Directs the Undersecretary to coordinate the
Extension Service with the Cooperative State
Program Office (NARPO) under the Undersecretary,
programs under the authority of the ARS and
Research Service to establish CSREES. The
with six sub-offices organized by research focus. The
CSREES national program leaders, as well as the
Agricultural Research Service (ARS) was established
provision integrates the administrative functions of
Director of the National Institute of Food and
in its current form in 1953. Both agencies are under
ARS’s and CSREES’s respective National Program
Agriculture. [Sec. 7402]
the jurisdiction of the Undersecretary for Research,
Leaders, but retains the separate agencies.
Extension, and Economics. [7 U.S.C. 6971]
[Sec. 7104]
The National Research Initiative (NRI) grant
Merges the existing NRI and IFAFS grant programs
CSREES is terminated as an agency; all of its
program is an expansion of a 1990 farm bill program
and groups them with all other competitive grant
competitive and infrastructure programs are to be
initially authorized in 1965, funded by annual
programs currently administered by CSREES to
administered under the National Institute of Food and
appropriations. The Initiative for Future Agriculture
become the National Institute of Food and
Agriculture. [Sec. 7401]
and Food Systems (IFAFS) is a mandatory-funded
Agriculture (NIFA). [Sec. 7105]
grant program, which was first authorized in the
Agricultural Research, Extension, and Education
Reform Act of 1998 (AREERA, P.L. 105-185),
reauthorized in the 2002 farm bill. [IFAFS 7 U.S.C.
7621; NRI 7 U.S.C. 450(b)]
Matching funds are not required for NRI and IFAFS
Creates two categories of research grants;
No comparable provision.
grants; they may be required for certain applied
fundamental research (to be called NRI grants); and
research grants. [IFAFS 7 U.S.C. 7621; NRI 7
applied research (to be called IFAFS grants).
U.S.C. 450(b)]
Matching funds are required for IFAFS grants, not
for NRI grants. Authorizes $500 million in annual
appropriations, and transfers mandatory IFAFS funds
to support the merged NRI/IFAFS program.

---

CRS-91
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
[Sec. 7106]
Most current research and extension programs appear
Requires the President to submit an annual budget
No comparable provision.
as individual line items in the President’s annual
making a single line item request for capacity
budget request.
programs and a single line item request for
competitive programs. [Sec. 7102]
Sec. 1403 of the National Agricultural Research,
Adds integrating and organizing all USDA research,
Directs the USDA to submit a “roadmap” that,
Extension, and Teaching Policy Act of 1977
extension, and education programs; minimizing
among other things, describes recommended funding
(NARETPA, Title XIV of P.L. 97-98) sets out the
duplication; and maximizing cooperation to the
for competitive programs and infrastructure programs
purposes of agricultural research and extension.
purposes of the Department’s research mission.
as unified categories, with some flexibility in
[7 U.S.C. 3101]
[Sec. 7103]
implementation. [Sec. 7402]
Current law limits eligibility for formula funded and
Expands eligibility for these programs to public non-
Requires the “roadmap” to include consideration of
other non-competitive research, extension, and
land grant institutions offering four-year degrees in
the needs of ASCARR institutions in addition to
education programs to 1862 and 1890 institutions,
agriculture (American Association of State Colleges
those of the 1862, 1890, 1994, and Hispanic-serving
1994 institutions (tribally controlled colleges), and
of Agriculture and Renewable Resources, or
institutions. [Sec. 7402]
Hispanic-serving institutions. [7 U.S.C. 361a, 343 ]
ASCARR institutions). [Sec. 7102]
Current law authorizes capacity-building grant
Authorizes the appropriation of such sums as
No comparable provision.
programs for 1890 and 1994 institutions, and
necessary for a new capacity-building grant program
Hispanic-serving institutions. [7 U.S.C. 3152]
for ASCARR institutions. [Sec. 7107]
Sec. 1417 of NARETPA makes land grant and non-
Expands eligibility for grants/fellowships for food
Similar to the House bill. [Sec. 7007]
land grant, high minority enrollment, and secondary
and agricultural sciences education to include
and post-secondary institutions eligible for higher
Agriculture in the K-12 Classroom programs,
education grants. [7 U.S.C. 3152]
nonprofit organizations, and other institutions of
higher education. [Sec. 7206]
The Hatch Act and Smith-Lever Acts set the
Sets 25% as the minimum amount of federal formula
No comparable provision.
minimum amount of federal formula funds spent on
funds that must be expended on multistate research
multi-state research and extension projects at either
and extension projects. [Sec. 7603]
25% or twice the percentage of state matching funds,
whichever is less. [7 U.S.C. 361a, 343 ]
Annual work plans are required from states to receive
Requires USDA to prepare a report for Congress on
Similar to the House bill. [Sec. 7503]
federal funds under NARETPA, the Hatch Act of
how to streamline the submission, reporting
1887 (for research), and the Smith-Lever Act (for
requirements, and implementation of plan-of-work

---

CRS-92
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
extension). [7 U.S.C. 3101, 361a, 343 ]
requirements. [Sec. 7602]
The 1998 reseach act (AREERA) requires CSREES
Provides for the continuation, under NIFA, of the
No comparable provision.
to conduct merit reviews of non-competitive research
mandatory merit and peer review processes for non-
and extension grants, and peer reviews of grants. [7
competitive and competitive grants. [Sec. 7601]
U.S.C. 7613]
Sec. 1462(a) of NARETPA currently limits the
Amends Sec. 1462(a) to apply the 19% limitation on
Raises the limitation on reimbursement of indirect
amount of indirect costs that USDA reimburses to
indirect cost reimbursement to any grant the
costs from 19% to 30% for competitively awarded
institutions that are awarded research, extension, and
institution receives, not just competitively awarded
research, extension, and teaching grants.
teaching grants to 19%. [7 U.S.C. 3310]
grants. [Sec. 7225]
[Sec. 7027]
Sec. 1408(g)(1) of NARETPA authorizes the
Increases authorized appropriations for the Advisory
Similar to the House bill. [Sec. 7002]
National Agricultural Research, Extension,
Board from $350,000 to $500,000 annually.
Education, and Economics Advisory Board.
[Sec. 7201]
[7 U.S.C. 3123]
Subtitle K of NARETPA authorizes miscellaneous
No comparable provision.
Authorizes $19 million annually through FY2012 for
programs. [7 U.S.C. 3311]
grants to the Consortium for Agricultural and Rural
Transportation Research and Education. [Sec. 7051]
Provisions Affecting Certain Research Institutions
Sec. 1417 of NARETPA authorizes
Specifies that the University of the District of
Similar to the House bill. [Sec. 7004]
grants/fellowships to land grant colleges and
Columbia (UDC) be eligible to receive education
universities for food and agricultural sciences
grants and fellowships. [Sec. 7204]
education. [7 U.S.C. 3152]
Sec. 1447 of NARETPA authorizes grants to upgrade
Extends eligibility to UDC for grants to upgrade
Similar to the House bill. [Sec. 7020]
agriculture and food science facilities at the 1890
facilities, and authorizes appropriations of $750,000
institutions. [7 U.S.C. 3222b]
annually through FY2012. [Sec. 7212]
The District of Columbia Public Post-secondary
Makes UDC eligible to receive funds for the
Similar to the House bill. [Sec. 7313]
Education Reorganization Act (P.L. 93-471)
Expanded Food and Nutrition Education Program
designates UDC as a land grant institution, with
(EFNEP). [Sec. 7512]
certain exceptions. [88 Stat. 1423]
The Hatch Act of 1887 authorizes federal funding for
Exempts UDC from the matching funds requirement
Similar to the House bill. [Sec. 7304]
agricultural research in the states/U.S. territories.
for Hatch Act funds. [Sec. 7513]

---

CRS-93
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
[7 U.S.C. 361a]
The 2002 farm bill amended NARETPA Sec.
Increases the level of required federal support for (1)
Similar to the House bill. [Secs. 7017-7018]
1444(a)(2) to require that (1) federal support for
extension at the 1890 institutions to 20% of the
extension at the 1890 institutions be at least 15% of
amount appropriated for 1862 extension programs
the amount appropriated for extension at 1862
[Sec. 7215], and (2) research at the 1890 schools to
universities [7 U.S.C. 3221], and (2) federal support
30% of the amount appropriated for research at the
for research at the 1890 institutions be at least 25% of
1862 schools [Sec. 7216]
the amount appropriated for research at the 1862
universities. [7 U.S.C. 3222]
Sec. 1434(b) of NARETPA defines which
No comparable provision.
Specifies that 1890 institutions are eligible to receive
institutions are eligible for animal health/disease
funding for animal health and disease research.
funding. [7 U.S.C. 3196]
[Sec. 7016]
The 2002 farm bill amended NARETPA Sec. 1449 to
Makes permanent the requirement that states provide
Similar to the House bill. [Sec. 7022]
phase in increasing state matching funds for federal
a 100% match to federal funds for research and
formula funds for research and extension at the 1890
extension at the 1890 colleges. [Sec. 7220]
institutions, reaching the 100% matching level in
FY2007. [7 U.S.C. 3222d]
Sec. 3 of the Smith-Lever Act (extension) authorizes
No comparable provision.
Makes 1890 institutions eligible for the Children,
federal funds for cooperative state extension
Youth, and Families Education and Research
programs. [7 U.S.C. 343]
Network funds. [Sec. 7303]
The McIntire-Stennis Cooperative Forestry Act (P.L.
No comparable provision.
Makes the 1890 institutions eligible for McIntire-
87-788) authorizes certain forestry research
Stennis forestry research funds. [Sec. 7310]
programs. [16 U.S.C. 582]
Sec. 1447 of NARETPA authorizes grants to upgrade
Authorizes $8 million annually for grants to land
No comparable provision.
facilities at 1890 institutions. [7 U.S.C. 3222]
grant institutions in insular areas to upgrade
agriculture and food science facilities. [Sec. 7237]
Funding for tropical and subtropical research
No comparable provision.
Within miscellaneous programs, adds authority for a
currently is provided under the Special Research
Tropical and Subtropical Agricultural Research
grant program to the land grant institutions in U.S.
competitive grant program limited to the insular area
insular areas. [7 U.S.C. 450i]
land grant institutions and divided equally between
the Caribbean and Pacific basins. Authorizes

---

CRS-94
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
appropriations of such sums as necessary.
[Sec. 7038]
Subtitle K of NARETPA authorizes miscellaneous
No comparable provision
Establishes a grant program for research, extension,
programs. [7 U.S.C. 3311]
and education programs at land grant institutions in
the American Pacific region (AK, HI). [Sec. 7041]
Sec. 1425(c)(2)(B) of NARETPA sets a minimum
Authorizes annual appropriations of $90 million; sets
Establishes UDC’s eligibility to receive EFNEP
distribution level and a formula for distribution of
a minimum $100,000 annual distribution in EFNEP
funds. [Sec. 7313] The bill does not contain other
any annual appropriation for the Expanded Food and
funds to each land grant institution; sets minimum
comparable provisions in the House bill.
Nutrition Education Program (EFNEP) in excess of
funding percentages for the 1890 institutions through
the previous year’s level. [7 U.S.C. 3175]
FY2013; establishes a formula to distribute funds to
states after FY2013; and establishes UDC’s eligibility
to receive EFNEP funds. [Sec. 7604]
Sec. 1417(b)(4) of NARETPA authorizes capacity-
Extends eligibility for higher education capacity-
Similar to the House bill. [Sec. 7005]
building grants for research and teaching at high
building grants and fellowships to extension
minority-enrollment institutions. [7 U.S.C. 3152]
programs at high minority-enrollment institutions.
[Sec. 7605]
Sec. 1455 of NARETPA authorizes grants to
Establishes an endowment fund for Hispanic-serving
Similar to the House bill. [Sec. 7024] Also, clarifies
Hispanic-serving institutions to strengthen
institutions for basic institutional support.
Hispanic-serving institutions’ eligibility for programs
educational capacity, and authorized $20 million
Authorizes appropriations through FY2012 for grant
authorized under NARETPA. [Sec. 7001]
annually in appropriations through FY2007.
programs and for collaborative extension projects at
[7 U.S.C. 3241]
1862 institutions. [Sec. 7222]
The current definition of “Hispanic-serving
Changes the definition of a Hispanic-serving
Similar to the House bill. [Sec. 7001]
institution” in NARETPA is based on a formula
institution in NARETPA from one based on a
found in Sec. 316(b)(1) of the Higher Education Act
formula to one based on the total enrollment of
of 1965. [20 U.S.C. 1059]
students being at least 25% Hispanic. [Sec. 7234]
Sec. 1458 of NARETPA authorizes USDA agencies
Extends eligibility for participation in international
Similar to the House bill. [Sec. 7025]
and land grant institutions to participate in
research, extension, and teaching programs to
international research, extension, and teaching
Hispanic-serving institutions. [Sec. 7223]
programs. [7 U.S.C. 3291]
Organic Agricultural Research
Sec. 1672B of the 1990 farm act, as amended,
Adds emphasis on the environmental impact of
Provides $16 million annually in mandatory funds

---

CRS-95
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
provides $3 million annually in mandatory funds to
organic farming and on new plant varieties suited to
through FY2012 to support the organic research and
support an organic agriculture research and extension
organic farming. Authorizes annual appropriations
extension initiative. [Sec. 7104]
initiative. [7 U.S.C. 5925]
through FY2012 of $25 million; and provides $25
million annually in mandatory funds through
FY2012. [Sec. 7310]
No comparable provision.
Sense of Congress that in-house funding for ARS
Similar to the House bill. [Sec. 7505]
research on organic agriculture be at least
commensurate with its share of the U.S. food market.
[Sec. 7608]
Sec. 7405 of the 2002 farm bill established the
No comparable provision.
Authorizes annual appropriations of $30 million
Beginning Farmer and Rancher Development
through FY2012; permits grants for farmers/ranchers
program. [7 U.S.C. 3319f]
who convert to certified organic production.
[Sec. 7309]
Specialty Crops Research
The Specialty Crop Competitiveness Act of 2004
Expand information that the specialty crop
No comparable provision.
(P.L. 108-465) established a specialty crop
committee provides the Advisory Board to include a
committee to inform the Advisory Board on research
comprehensive analysis of the specialty crop sector.
needs. [7 U.S.C. 3123a(c)]
[Sec. 7204]
Sec. 1672 of the 1990 farm act authorizes research
Adds new specialty crop research initiative to the
Similar to the House bill, but authorizes $16 million
and extension grants on specialty crops as a high-
1998 research act (AREERA). Authorizes annual
annually in mandatory funds through FY2012. [Sec.
priority research area. [7 U.S.C. 5925]
appropriations of $100 million through FY2012;
7211]
provides $215 million annually in mandatory funds.
[Sec. 7411]
Food safety research is part of USDA’s research,
Authorizes USDA to make competitive grants to
No comparable provision.
extension, and education mission area, and is
universities/others to design and implement programs
included in both intra- and extramural programs.
to improve the safety of fresh-cut produce; authorizes
appropriation as necessary, with $25 million annually
in mandatory funds through FY2012. [Sec. 7511]
Section 1419A of NARETPA authorizes the
Requires the Food and Agricultural Policy Research
No comparable provision.
Secretary to enter into a wide variety of grants and
Institute (a university-based economic research
other collaborative agreements with private and
institute, in part supported by federal funds) to

---

CRS-96
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
public educational institutions, corporations, and
establish a corollary institute specializing in specialty
individuals to conduct independent research and
crop policy research (drawing on university expertise
public policy analysis on food and agriculture.
in states with specialty crop production). [Sec. 7235]
[7 U.S.C. 3155]
Bioenergy Research
No comparable provision.
Establishes a renewable energy committee to report
No comparable provision.
to the Advisory Board concerning research needs and
budget recommendations. [Sec. 7203]
Sec. 404 of the 1998 research act (AREERA)
Establishes a network of federal, state, and private
No comparable provision.
establishes an agricultural bioenergy and biobased
labs to carry out a bioenergy and biobased products
products research initiative, and authorizes the
research initiative, coordinated by the National
appropriation of such sums as necessary. [7 U.S.C.
Agricultural Research Program Office. Awards
7624]
grants to entities in the network; authorizes $50
million annually in appropriations through FY2012.
[Sec. 7410]
No comparable provision.
Establishes a New Era Rural Technology Program
Similar to the House bill. [Sec. 7043]
that makes grants available to rural community
colleges and technical centers to support training a
workforce in bioenergy, renewable energy, and pulp
and paper manufacturing; authorizes appropriation as
necessary. [Sec. 7312]
Other Research Provisions
No comparable provision.
Authorizes USDA to establish animal disease
Requires USDA to issue a permit to the Department
laboratories, conduct research on diseases that
of Homeland Security (DHS) for work on live Foot
constitute a threat to the livestock industry, and gives
and Mouth Disease virus at the National Bio- and
USDA discretion over the importation and movement
Agro-defense Lab; clarifies only the Secretary of
of live viruses. [Sec. 7108]
Agriculture has the authority to grant and revoke
such permits. [Sec. 11016]
The ARS National Animal Disease Center in Ames,
No comparable provision.
Authorizes $16 million annually through FY2012 to
Iowa, is currently the highest bio-security lab for
construct a higher-level bio-secure ARS animal

---

CRS-97
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
animal disease research.
health and disease facility in Bozeman, MT. [Sec.
7508]
Sec. 1415A of NARETPA authorizes a program to
No comparable provision.
Amends program to require USDA to favor large and
defray the school loans of veterinary medical school
mixed animal practitioner shortages in rural areas in
graduates who agree to serve for limited time periods
initial phases of program implementation.
in under-served areas. [7 U.S.C. 3151]
[Sec. 7003]
Sec. 1672(e) of the 1990 farm bill, as amended,
Adds nine new subjects to the list of high priority
No comparable provision.
authorizes USDA to make grants for research and
research and extension areas. [Sec. 7305]
extension projects in a variety of high priority topic
areas. [7 U.S.C. 5925]
Sec. 410 of the 1998 research act (AREERA)
Amends the 1998 act to encourage flexibility in
Reauthorizes appropriations through FY2012.
provides a one-time transfer of $8 million in
making grants to youth organizations; allows the
[Sec. 7209]
mandatory funds to make grants to four national
organizations to redistribute grant funds among
youth groups to support pilot projects in rural areas;
themselves; authorizes the appropriation of such
also provides authority for appropriations through
sums as necessary through FY2012. [Sec. 7408]
FY2007. [7 U.S.C. 7630]
A number of international agricultural research
Authorizes appropriations to establish a Borlaug
Similar to the House bill. [Sec. 7042]
exchange opportunities currently are available under
International Agricultural Science and Technology
several different statutes.
Fellowship Program to promote collaboration
between U.S. and foreign agricultural professionals
and international research systems. [Sec. 7606]
The Act of March 4, 1927, authorizes the
Authorizes the construction of a Chinese garden at
Also authorizes construction of a Chinese garden at
establishment of the National Arboretum.
the National Arboretum, using federal appropriations.
the arboretum, but forbids use of appropriated funds.
[20 U.S.C. 191]
[Sec. 7509]
[Sec. 7312]
Subtitle K of NARETPA authorizes miscellaneous
No comparable provision.
Authorizes appropriations for grants to nonprofits to
programs. [7 U.S.C. 3311]
distribute donated vegetable seeds to community
food projects in low-income areas. [Sec. 7046]

No comparable provision.
Authorizes appropriations for grants to support farm
safety education/outreach. [Sec. 7047]
No comparable provision.
Authorizes appropriations for grants to increase
participation of women/under-represented minorities

---

CRS-98
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
from rural areas in science, technology, engineering,
and math education/careers. [Sec. 7408]
No comparable provision.
Establishes a National Farm Management Center to
create a public benchmarking database and improve
farm financial management training. [Sec. 7037]
No comparable provision.
Authorizes appropriations for a research program to
develop plant, marine, and microbial products.
[Sec. 7049]
No comparable provision.
Authorizes a $1 million annual appropriation to
support nonprofit research on international anti-
hunger and nutrition activities. [Sec. 7050]
No comparable provision.
Authorizes appropriations for competitive grants to
establish regional centers of excellence in food
systems veterinary medicine. [Sec. 7052]
No comparable provision.
Authorizes appropriations for land grant institutions
to establish regional centers of excellence for
agricultural commodities (incl. poultry
sustainability); requires matching funds. [Sec. 7039]
No comparable provision.
Prohibits USDA from disposing of land or facilities
No comparable provision.
at the Grazinglands Research Laboratory in El Reno,
OK. [Sec. 7109] Authorizes USDA to lease land at
the El Reno facility to the University of Oklahoma.
[Sec. 7111]
No comparable provision.
Requires scientists conducting research on biotech
No comparable provision
crops to receive training in USDA’s biotech
regulatory regime. Authorizes the certification of
third-party providers of such training. [Sec. 7110]
No comparable provision.
Authorizes appropriations for a grant to update
No comparable provision.
USDA’s Nutrient Composition Handbook for Beef.
[Sec. 7112]

---

CRS-99
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
Sense of Congress that there should be greater
No comparable provision.
support for USDA human nutrition research.
[Sec. 7113]
Sec. 1433 of NARETPA authorizes animal health
Encourages setting priorities for animal
No comparable provision.
and disease research. [7 U.S.C. 3195]
health/disease research through regular
regional/national meetings. [Sec. 7213]
Sec. 1424(b) of NARETPA authorizes a human
Adds as a focus of human nutrition research
No comparable provision.
nutrition research initiative.
examination of the efficacy of current agriculture
[7 U.S.C. 3174]
policies in promoting the health and welfare of
economically disadvantaged populations. [Sec. 7236]
Sec. 1672(d) of the 1990 farm bill, as amended,
Requires USDA to give funding priority to
No comparable provision.
encourages USDA to give funding priority to high-
collaborative research grants. [Sec. 7303]
priority collaborative research proposals. [7 U.S.C.
5925]
The 1990 farm bill, as amended, authorizes research
Changes the focus of aflatoxin research and
No comparable provision.
and extension on aflatoxin. [7 U.S.C. 5925]
extension from controlling aflatoxin to improving
and commercializing control technologies.
[Sec. 7304]
The 1990 farm bill, as amended, authorizes a nutrient
Adds dairy cattle waste and regional concerns to the
No comparable provision.
management research and extension initiative. [7
purposes of the nutrient management research and
U.S.C. 5925]
extension initiative. [Sec. 7307]
Sec. 1417(i) of NARETPA authorizes a National
No comparable provision.
Adds extension and research to the award program
Food and Agricultural Sciences Teaching Awards.
and requires at least one cash award be made per
[7 U.S.C. 3152]
year. [Sec. 7006]
Sec. 604 of AREERA, the 1998 research act,
No comparable provision.
Authorizes annual appropriations of $2.5 million
authorizes the Food Animal Residue Avoidance
through FY2012. [Sec. 7213]
Databank. [7 U.S.C. 7642]
USDA’s FY2000 appropriations act (P.L. 106-7)
No comparable provision.
Permits the Alaskan consortia of institutions to
authorizes grants for education at Alaska Native- and
designate fiscal agents for each member institution,
Native Hawaiian-serving institutions.
and to allocate funds among members. [Sec. 7308]
[7 U.S.C. 3242]

---

CRS-100
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
In 1994, the Federal Crop Insurance Reform and
No comparable provision.
Gives USDA authority to exchange, sell, or
Department of Agriculture Reauthorization Act (P.L.
otherwise dispose of ARS’ animals, animal products,
103-354) reorganized USDA, including the merger
plants, and plant products (except for seeds,
and realignment of certain research agencies.
germplasm). [Sec. 7314] Authorizes a pilot program
[7 U.S.C. 6971]
to allow property at the ARS research center and the
National Agricultural Library to be leased out.
[Sec.7316]
Research on antibiotic-resistant bacteria in livestock
No comparable provision.
Authorizes a competitive grant program for targeted
is authorized under general statutory authority for
research on antibiotic-resistant bacteria in livestock.
federal and state agricultural research.
[Sec. 7317]
No comparable provision.
No comparable provision.
Directs USDA to prepare a report, in coordination
with other federal agencies, on the prevalence of
areas in the U.S. with limited access to affordable
and nutritious food, and to make recommendations.
[Sec. 7504]
No comparable provision.
No comparable provision.
Requires USDA to prepare a report on: (1) domestic
and international markets for products from cloned
animals; and (2) the safety of foods from cloned
animals (particularly milk). [Sec. 7507]
No comparable provision.
No comparable provision.
Provision concerning the recruitment and hiring
processes for ARS and the Forest Service, but does
not directly affect research policy. [Sec. 7502]
No comparable provision.
No comparable provision.
Provision concerning the National Finance Center
and National Information Technology Center, but not
related to USDA’s research mission.[Sec. 7502]
FORESTRY (TITLE VIII)
Cooperative Forestry Programs
The Forest Land Enhancement Program provided
No reauthorization provision, allowing program to
No reauthorization provision, allowing program to
financial aid for private forest practices (mandatory
terminate.
terminate.

---

CRS-101
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
spending of $100 million for FY2002-07). Only
about half of $100 million was spent; the remainder
was borrowed for firefighting or cancelled by
Congress. [16 U.S.C. 2103] General program
authority is provided for under the Cooperative
Forestry Assistance Act of 1978 (CFAA, P.L. 95-
313), as amended, authorizes USDA to establish a
variety of cooperative programs to protect and
manage nonfederal forest lands.
[16 U.S.C. 2101-2114]
No comparable CFAA provision.
Adds new priorities: (1) conserving working forests,
Similar to the House bill, but with subtle differences
(2) protecting forests from natural threats and
in priorities for protecting and restoring forests and
restoring forests, and (3) enhancing public benefits
for enhancing benefits. [Sec. 8001]
from private forests. [Sec. 8001]
No comparable CFAA provision.
No comparable provision.
Authorizes new cost-share grants for local
governments, tribes, and non-profits to acquire lands
threatened by conversion to non-forest uses and
provide public benefits. [Sec. 8002]
No comparable CFAA provision.
Adds requirements for financial assistance: state-
Adds new requirements for financial assistance:
wide forest assessment of conditions, trends, threats,
statewide forest plan to identify critical areas; address
and priorities and strategies to address threats and
regional needs; and plan for managing and moni-
describe resources. [Sec. 8002]
toring forests, achieving national priorities. [Sec.
8004]
Sec. 2109(d)(1) of the CFAA defines “State” to
Replaces “Trust Territory of the Pacific Islands” with
Similar to the House bill. [Sec. 8005]
include “Trust Territory of the Pacific Islands.” [16
“the Federated States of Micronesia, the Republic of
U.S.C. 2109]
the Marshall Islands, the Republic of Palau.”
[Sec. 8003]
Subsections of the CFAA provide for a USDA Coor-
Replaces USDA Committee with new Forest
Exempts projects proposed by Indian tribes from
dinating Committee, to coordinate among agencies,
Resource Coordinating Committee, to coordinate
State Coordinating Committee recommendations.
and for State Coordinating Committees, to coordinate
among agencies, state agency representatives, and
[Sec. 8003]
with state foresters and other interested parties. [16
others. [Sec. 8004] Modifies state committee duties
U.S.C. 2113]
to include recommendations concerning the new
state-wide forest assessment and strategies. [Sec.

---

CRS-102
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
8005]
No comparable CFAA provision.
Requires a Secretary-determined portion of funds to
No comparable provision.
be allocated competitively among states. [Sec. 8006]
No comparable CFAA provision.
Authorizes up to 5% of funding for cost-shared
No comparable provision.
competitively-allocated innovative education,
outreach, or technology transfer projects. [Sec. 8006]
Other Forestry Provisions
No comparable provision.
No comparable provision.
Includes definitions and makes tribes eligible for
Forest Legacy funding (16 U.S.C. 2103c) and forest
management assistance. Authorizes Cultural and
Heritage Cooperation, with purposes, definitions, and
prohibition on disclosing information, and provides
for reburial of human remains and cultural items; for
temporary area closures for traditional and cultural
purposes; and for free use of forest products for
traditional and cultural purposes. [Sec. 8101]
The Healthy Forests Restoration Act of 2003 (P.L.
Extends program with $10 million from the CCC an-
No comparable provision.
108-148) authorized easements through FY2008 to
nually through FY2012. [Sec. 8101]
protect private forests for endangered species and
biodiversity. [16 U.S.C. 6578]
The Cooperative Forestry Assistance Act of 1978
Authorizes a new Emergency Reforestation program
No comparable provision.
(P.L. 95-313) permanently authorized an Emergency
as part of the Emergency Conservation program (16
Reforestation program. [16 U.S.C. 2106a] It has not
U.S.C. 2201-2204). [Sec. 8102]
been funded since FY1993.
The Renewable Resources Extension Act of 1978
No comparable provision.
Extends the program through FY2012. [Sec. 8201]
(P.L. 95-306) authorized educational and technical
aid via state extension agencies and eligible
universities and colleges. [16 U.S.C. 1671-1676]
The Global Climate Change Prevention Act of 1990
Extends the program through FY2012. [Sec. 8103]
Extends the program through FY2012. [Sec. 8202]
within the 1990 farm bill authorized the Forest
Service Office of International Forestry through

---

CRS-103
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
FY2007. [7 U.S.C. 6704(d)]
The 1990 farm bill, as amended, authorized Rural
Extends the program through FY2012. [Sec. 8104]
No comparable provision.
Revitalization Through Forestry via technology
transfer, business assistance, and local training,
through FY2008. [7 U.S.C. 6601(d)(2)]
No comparable provision.
Authorizes competitive forestry grants to Hispanic-
No comparable provision.
serving institutions to recruit, retain, and train
“Hispanics and other under-represented groups.”
[Sec. 8201]
No comparable provision.
No comparable provision.
Amends the Lacey Act Amendments of 1981 (P.L.
97-79; 16 U.S.C. 3371-78) to expand restrictions on
and penalties for importing wild plants/parts (e.g.,
lumber, logs) removed in violation of U.S. or foreign
laws. [Sec. 8204]
No comparable provision.
No comparable provision.
Expands boundary of Green Mountain National
Forest (VT) to allow additional land acquisition.
Authorizes exchange/ sale of specific forest lands to
Bromley Mountain Ski Resort, with directions on
proceeds use. [Secs. 8204-05]
No comparable provision.
No comparable provision.
For non-salvage timber sale contracts awarded
between 7/1/04 and 12/31/06, the purchasers may
request that the contract be cancelled, the contract
payment rate be redetermined, or a substitute
Producer Price Index be used. USDA may agree to
the contract modification, if the specified terms and
limitations are met. [Sec. 8301]
No comparable provision.
No comparable provision.
Sense of Senate that the President should act to
ensure that imports of softwood lumber from Canada
are consistent with the U.S.-Canada Softwood
Lumber Agreement. [Sec. 11903]

---

CRS-104
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
ENERGY (TITLE IX)
Farm and Community Energy Systems
Sec. 9005 of the 2002 farm bill authorizes
Extends program through FY2012. Funding
Extends program through FY2012, but folds it into
appropriations for the Energy Audit and Renewable
continues of such sums as necessary for FY2008-12.
the new Rural Energy for America Program where
Energy Development Program for grants to state
[Sec. 9004]
mandatory funding is available (see next section).
agencies and organizations to assist farmers and rural
[Sec. 9007]
businesses to be energy efficient. [7 U.S.C. 8105]
Sec. 9006 of the 2002 farm bill authorizes the
Renames program “Rural Energy for America
Renames program similar to House bill. Implements
Renewable Energy Systems and Energy Efficiency
Program.” Adds production and sale of electricity by
energy audits for state agencies, coops, educational
Program to assist farmers, ranchers, and rural
renewable energy systems to loan purposes, and
institutions and utilities. Provides grants, loan
businesses with renewable energy systems and
assistance for feasibility studies. Reserves 15% for
guarantees and incentive payments for energy
improving energy efficiency. $23 million annual
small projects. Mandatory CCC funds: $50 million
efficiency and renewable energy, and
mandatory CCC funding for FY2003-07, but with
(FY2008), $75 million (FY2009), $100 million
manure-to-energy projects. Reserves 20% for small
annual spending, shortfalls lapse.
(FY2010), $125 million and $125 million
projects. Establishes the Rural Energy Star program.
[7 U.S.C. 8106]
(FY2011-FY2012), respectively. [Sec. 9005]
Mandatory funds of $230 million (FY2008),
available until expended. [Sec. 9007]
No comparable provision.
Establishes the Farm Energy Production Pilot
No comparable provision.
Program, with matching grants (up to 75% of cost) to
demonstrate energy neutral-farms with existing
technologies. Authorizes appropriations of $5 million
(FY2008-12). [Sec. 9010]
No comparable provision.
Establishes Future Farmsteads Program to equip and
Similar to the House bill. [Sec. 9025]
demonstrate five farms and farm households in five
regions with energy efficient/producing technologies.
Authorized appropriations of such sums as necessary.
[Sec. 9015]
No comparable provision.
Establishes Community Wood Energy Program, with
Provides matching grants for use of local, sustainable
matching grants (up to 50%) for use of local,
wood sources for a community wood energy system
sustainable wood sources for a community wood
based on a Community Wood Energy Plan.
energy system. Authorizes appropriations of such
Authorizes appropriations of $5 million annually
sums as necessary. [Sec. 9019]
(FY2008-12). [Sec. 9014]

---

CRS-105
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
No comparable provision.
Establishes New Century Farm Project to develop
and operate sustainable and integrated biomass —
biofuel production systems. Authorizes one-time
funding of $15 million (FY2008-FY2012) until
spent. [Sec. 9011]
No comparable provision.
No comparable provision.
Establishes Rural Energy Systems Renewal program,
with matching grants (up to 50% of project cost) to
fund community energy renewal projects.
Authorizes annual appropriations of $5 million
(FY2008-12). [Sec. 9015]
No comparable provision.
No comparable provision.
Establishes program to provide grants to Northeast
land-grant universities for research, extension, and
demonstration projects for dairy nutrient
management and energy development in the
Northeast. Authorizes discretionary funds of such
sums as are necessary. [Sec. 9023]
No comparable provision.
No comparable provision.
Establishes Voluntary Renewable Biomass
Certification Program to certify biomass feedstocks
meet standards designed to reduce greenhouse
emissions and improve soil carbon content while
protecting wildlife habitat/environment. No funds
authorized. [Sec. 9016]
No comparable provision.
No comparable provision.
Creates Rural Energy Self Sufficiency program (five
annual matching grants up to 75% of cost) for rural
communities with other institutions to increase
energy self-sufficiency through integrated renewable
energy systems. Authorizes $5 million (FY2008)
and sums as necessary (FY2009-12). [Sec. 9011]
Biofuel Feedstocks
Sec. 9008 of the 2002 farm bill extended the Biomass
Extends the Biomass Research & Development Act
Extends the Biomass Research & Development Act
Research and Development Act of 2000 (P.L.
of 2000 from 2007 to 2012. Mandatory CCC
of 2000 from 2007 to 2012, and incorporates it into
106-224), providing grants and financial assistance
funding of $35 million (FY2008), $60 million
the farm bill. Mandatory CCC funding of $15

---

CRS-106
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
from the Department of Energy (DOE) and USDA to
(FY2009), $75 million (FY2010), $100 million
million (FY2008), $25 million (FY2009), $35
establish a technical advisory committee and a
(FY2011), $150 million (FY2012). Authorizes
million (FY2010). Authorizes appropriations of $85
Biomass Research and Development Board.
appropriations of $200 million annually
million annually (FY2008-12). [Sec. 9008]
Mandatory funds of $5 million (FY2002); $14
(FY2006-15). [Sec. 9008]
million annually (FY2003-07). Authorized
additional annual appropriations of $49 million
(FY2002-07). [7 U.S.C. 8101]
No comparable provision.
Establishes the Feedstock Flexibility Program,
Similar to the House bill. [Sec. 1501]
authorizing the use of CCC funds to purchase sugar
to be resold as a biomass feedstock to produce
bioenergy. Mandatory funding of such sums as
necessary. [Sec. 9013]
No comparable provision.
Establishes the Renewable Woody Biomass for
Similar to the House bill. Authorizes $5 million
Energy Program, providing Forest Service grants to
annually (FY2008-12). [Sec. 9013]
encourage the use of woody renewable biomass for
energy. Mandatory funds of $15 million annually
(FY2008-12). [Sec. 9019]
No comparable provision.
Establishes the Biomass Energy Reserve (BER).
Establishes the Biomass Crop Transition Program,
Provides financial and technical assistance to
providing technical/financial assistance to
landowners and operators to grow dedicated energy
agricultural producers for production, collection,
crops as feedstock for cellulosic ethanol and other
harvest, storage and transportation of biomass crops
energy production. Incentives cover harvesting,
for use in a biorefinery. Directs USDA to collect and
storing, and transporting of biomass to bioenergy
disseminate information on production potential,
facilities. BER projects would be within a 50-mile
environmental impacts, and best practices.
radius of a bioenergy facility. Authorizes mandatory
Authorizes mandatory funds: $130 million for
funding of such sums as necessary. [Sec. 9018]
FY2008 and $10 million annually for FY2009- 11,
available until expended. [Sec. 9004]
No comparable provision.
No comparable provision.
Establishes Regional Biomass Crop Experiment
Grants for regional biomass production experiments
by land grant institutions. Mandatory CCC funds:
$10 million (FY2008), $20 million (FY2009), $10
million (FY2010); also authorizes appropriations of
such as necessary (FY2008-12). [Sec. 9010]

---

CRS-107
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Sec. 9002 of the 2002 farm bill requires federal
Extends the federal procurement program; sets
Extends the program and refines federal procurement
agencies to purchase biobased products and
biobased component of product at 5% minimum; and
rules for biobased products. Requires federal
authorizes a voluntary biobased labeling program.
revises the deadline for USDA to set labeling
agencies to maximize procurement of biobased
USDA sets procurement regulations. Provides $1
requirements. Authorizes appropriations of $1
products and submit reports to Congress. Continues
million in mandatory CCC annual funding
million for procurement provisions and $1 million
voluntary labeling. Establishes testing centers and
(FY2002-07) for testing biobased products.
for labeling provisions (FY2008-13). [Sec. 9002]
education grants. Authorizes $3 million in annual
[7 U.S.C. 8102]
mandatory funds (FY2008-12). [Sec. 9002]
Sec. 9003 of the 2002 farm bill provides grants to
Renames as “Biorefinery and Repowering
Renames as “Biorefinery and Repowering
help finance biorefineries and biofuel plants for
Assistance.” Provides cost sharing grants; adds loan
Assistance.” Provides cost sharing grants (up to 50%)
demonstration. No mandatory funds were authorized;
guarantees for new and developing technologies for
and loan guarantees (up to 80%) to assist new and
no discretionary funds were appropriated.
advanced cellulosic bioenergy production and
developing technologies focusing on advanced
Implementing regulations have been developed. [7
biorefinery repowering. Mandatory CCC funds: $75
cellulosic bioenergy production and biorefinery
U.S.C. 8103]
million (FY2008); $100 million (FY2009); $125
repowering. Authorizes mandatory CCC funds of
million (FY2010); $200 million (FY2011); and $300
$300 million for FY2008 to be made available until
million (FY2012). [Sec. 9003]
expended. [Sec. 9005]
No comparable provision.
No comparable provision.
Establishes E-85 fuel program, providing grants for
E-85 fuel infrastructure. Authorizes discretionary
funding of $20 million (FY2008-12) to be available
until expended. [Sec 9021]
Biofuel Research and Education
The 2002 farm bill amended the Sun Grant Research
Extends program through FY2012, and adds new
Similar to the House bill. Provides grants to other
Initiative Act of 2003 to establish bioenergy research
center in Hawaii. [Sec. 9008]
land grant institutions within each region, in addition
programs through grants to land grant institutions and
to designated centers. Mandatory funds: $5 million
five regional centers. Authorizes appropriations: $25
(FY2008) and $10 million (FY2009-10) until
million (2005), $50 million (2006), and $75 million
expended; authorizes annual appropriations of $70
annually (FY2007-10). [7 U.S.C. 8109]
million (FY2008-15). [Sec. 9009]
Sec. 7134 of the 2002 farm bill provides research
No comparable provision.
Extends grants through FY2012. [Sec. 7008]
grants on production/marketing of alcohols and
industrial hydrocarbons from agricultural and forest
products. Authorized annual appropriations of $20
million (FY1991-2007). [7 U.S.C. 3154]
Sec. 9004 of the 2002 farm bill provides for the
Extends biodiesel education grants. Provides annual
Similar to the House bill. [Sec 9003]

---

CRS-108
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Biodiesel Fuel Education Program with grants to
mandatory funding of $2 million (FY2008-12).
educate fleet operators and the public on biodiesel
[Sec 9017]
benefits. Annual mandatory CCC funding of $1
million (FY2003-07). [7 U.S.C. 8104]
Sec. 9009 of the 2002 farm bill provides for
No comparable provision.
No comparable provision, but authorizes USDA to
Cooperative Research and Extension projects,
continue to provide for grants to the Consortium for
encouraging research on carbon sequestration in soils
Agricultural Soils Mitigation of Greenhouse Gases to
and plants, and the role of agriculture in greenhouse
develop, analyze, and implement carbon cycle and
gas emissions. [7 U.S.C. 6711]
greenhouse gas management research through
cooperative research at the land grant universities.
Authorizes appropriations of $15 million annually
(FY2008-12). [Sec. 7315]
Sec. 9010 of the 2002 farm bill provides for the
Renews and extends the “Bioenergy Program for
Similar to the House bill. Bases payments on: biofuel
Bioenergy Program, continuing incentive payments
Advanced Biofuels” through FY2012. Excludes
production; feedstock prices; and net non-renewable
to biofuel producers based on year-to-year
ethanol produced from corn starch; expands
energy fuel content. Benefits purchasers of
production increases. Annual mandatory CCC
eligibility for production incentives for combined
feedstocks for cellulosic biofuels and biodiesel;
funding of $150 million (FY2002-06), but no
heat and power production using biomass at biofuels
excludes those who claim a biofuel production tax
funding authorized for FY2007. [7 U.S.C. 8108]
plants. Provides mandatory CCC funding of $225
credit or who produce more than 150 million gallons
million (FY2008), $250 million (FY2009), $275
per year. One-time mandatory funding of $245
million (FY2010), $300 million (FY2011), and $350
million (FY2008-12), available until expended. [Sec.
million (FY2012). [Sec. 9007]
9006]
No comparable provision.
Establishes grants for Biochar Research,
No comparable provision.
Development, and Demonstration. Annual
authorized appropriations of $3 million (FY2008-12).
[Sec. 9012]
No comparable provision.
Sense of Congress on renewable energy production,
No comparable provision.
use, and benefits. [Sec. 9016]
No comparable provision.
No comparable provision.
Sense of Congress on ethanol blends, and need for
inter-agency cooperation to encourage increased
production of intermediate ethanol blends between
E-10 and E-85. [Sec 9002]
No comparable provision.
No comparable provision.
Sense of Congress regarding research, extension and

---

CRS-109
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
education programs on biofuels and bioproducts.
[Sec. 9004]
No comparable provision.
No comparable provision.
Authorized appropriations for a pilot program for
academic internships with government, private, or
non-profit institutions. [Sec. 9015]
No comparable provision.
No comparable provision.
Directs USDA and other agencies to submit reports:
growth potential for cellulosic material [Sec. 9024];
biofuels infrastructure [Sec, 9018]; rural nitrogen
fertilizers [Sec. 9019]; and life-cycle analysis of
biofuels [Sec. 9020].
No comparable provision.
No comparable provision.
Directs USDA and other agencies on Research and
Development of Renewable Energy, including farm
to fuel research on biofuel production; and research
on small scale wind and solar energy production and
fuel cells. Annual authorized appropriations of $5
million (FY2008-12), and annual appropriations of
$110 million for cellulosic biofuel research (USDA)
and $110 million for smaller-scale biorefineries and
plant research (DOE). [Sec. 9022]
Other Renewable Energy Provisions
No comparable provision.
No comparable provision.
Directs USDA report on the potential economic
issues (including costs) associated with animal
manure used in normal agricultural operations and as
a bioenergy feedstock. [Sec. 10307]
Sec. 9001of the 2002 farm bill provides for
Same as prior law.
Keeps prior law definitions, but adds definitions for
definitions, including biomass, biobased product,
advanced biofuels, biofuel, biomass conversion
biomass, renewable energy and small rural business
facility, biorefinery, feedstock, among others. Adds
[7 U.S.C. 8101]
ocean and hydroelectric to the renewable energy
definition. [Sec. 9001]
No comparable provision.
Establishes the USDA Energy Council to coordinate
Similar to the House bill, in that it would establish an
energy related activities within USDA and between
entity at USDA to provide oversight and

---

CRS-110
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
USDA and other agencies. [Sec. 9017] Establishes
coordination, liaise with other federal departments,
an entity at USDA to provide oversight and
evaluate new biobased products, and maintain a
coordination, liaison activities, biobased product
database of biobased research and best practices.
evaluation, and database maintenance. [Sec. 9009]
[Sec. 9017]
CROP INSURANCE & DISASTER ASSISTANCE (TITLE XI)
Timing of Crop Insurance Payments and Receipts
The federal government provides three levels of
Changes the timing of crop insurance receipts
Similar, but not identical, language as the House bill,
subsidies to the crop insurance program: (1)
(premium collections) and the timing of payments to
which effectively requires premiums to be collected
subsidizing a portion of the farmer-paid premium, (2)
the insurance companies. Two insurance years of
from producers slightly earlier, and payments to the
reimbursing the private crop insurance companies for
program receipts will be received in the same fiscal
insurance companies to be made slightly later,
most administrative and operating expenses, and (3)
year (FY2012) and payments will be delayed until
beginning in the 2012 crop year, so that savings can
absorbing most of the program losses. [7 USC 1501
the next fiscal year, thus scoring budget savings in
be scored in the last year of the five-year farm bill
et seq.]
FY2012. [Secs. 11001(c), 11001(e), and 11010]
(FY2012). [Secs. 1906 and 1914]
Reimbursement of Administrative and Operating Expenses
Current law prohibits companies from receiving a
Beginning in the 2009 reinsurance year, the
Beginning in the 2009 reinsurance year, the
reimbursement greater than 24.5% of total premiums.
reimbursement rate to the insurance companies for
reimbursement rate for additional coverage policies
The current Standard Reinsurance Agreement (SRA)
their administrative and operating expenses for all
falls by 2 percentage points. An exception is any
establishes the reimbursement rate below the
policies declines by 2.9 percentage points from the
reinsurance year in any state that has a loss ratio
statutory maximum for all insurance plans, ranging
current rate. The range of reimbursement rates
greater than 1.2 (i.e., when indemnity payments
from 18.1% to 24.2%. [7 USC 1508(k)(4)(A)]
declines to between 15.2% to a maximum of 21.3%.
exceed total premiums by more than 20%.) The
[Sec. 11001(d)(1)]
reimbursement rate for policies based on area-wide
losses is reduced to 17% of premiums. [Sec. 1912]
Premiums and Fees
For catastrophic (CAT) coverage, producers pay no
Increases the producer-paid fee for catastrophic
Similar to the House bill for raising the CAT fee to
premium, but pay an administrative fee of $100 per
coverage to $200 per crop per county. For NAP, the
$200. The NAP fee is increased to $200 per crop per
crop per county. [7 USC 1508(b)(5)(A)] Growers of
fee also is raised to $200 per crop per county, or
county, or $600 per producer per county, not to
uninsurable crops are eligible for a Noninsured
$600 per producer per county, not to exceed $1800
exceed $1,500 per producer. [Secs. 1905 and 1926]
Assistance Program (NAP) and pay a fee of $100
per producer. [Secs. 11002 and 11009]
per crop, or $300 per producer per county, not to
exceed $900 per producer. [7 USC 7333(k)(1)]
When permitted by state law, a cooperative or trade
Limits the ability of associations to pay the CAT fee
Revises current law to clarify that the provision

---

CRS-111
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
association may pay on behalf of its members, any or
on behalf of a producer. [Sec. 11001(b)] Prohibits
applies only to fees for CAT coverage. [Sec. 1905]
all of the administrative fee for CAT coverage.
insurance companies from paying or rebating
[7 USC 1508(b)(5)(B)] .
premiums, or making any inducements to purchase
crop insurance. [Sec. 11001(a)]
Authorizes crop insurance companies to offer
Strikes authority for companies to offer a Premium
Similar to the House bill and requires USDA to
customers a discount when the insurance companies
Reduction Plan (PRP). [Sec. 1101(f)]
commission a study on the feasibility of the PRP
adopt efficiencies that reduce their administrative and
within 18 months of enactment. [Sec. 1908]
operating costs. [7USC 1508(b)(5)(A)]
No comparable provision.
Reduces the premium subsidy for area risk plans by 4
No comparable provision.
percentage points. [Sec. 11013]
Requires USDA to set premiums so that the overall
No comparable provision
Reduces the statutory loss ratio to 1.0, meaning that
program loss ratio is 1.075.
total premiums should be established to equal
[7 USC 1506(n)]
expected total indemnity payments. [Sec. 1903]
Authorizes an Agricultural Management Assistance
No comparable provision
Allows USDA to use AMA funds to match state
(AMA) program to in part help certain states make
funds used to provide additional premium discounts
better use of risk management tools. [7 USC 1524(b)]
to underserved states. [Sec. 1923]
Standard Reinsurance Agreement and Risk-Sharing
The current Standard Reinsurance Agreement (SRA)
Requires the private insurance companies to reinsure
No comparable provision.
between the federal government and private crop
at least 22% of their retained premiums with the
insurance companies determines levels of risk
government, and in return the government will
sharing. The current agreement requires companies to
provide a ceding commission of 2% to companies,
reinsure 5% of their retained premium with the
allowing the government to receive some
government.
underwriting gains that would otherwise accrue to the
companies. [Sec. 11014]
No comparable provision.
USDA can renegotiate the SRA starting with the
Similar to the House bill, except that USDA has
2012-13 reinsurance year, and once every five years
discretion to renegotiate the SRA more frequently
thereafter. Insurance companies can confer with each
than every five years, with congressional notification
other during the process. [Sec. 11001(d)(2)]
of such action. [Sec. 1913]
Program Integrity (Waste, Fraud, and Abuse)
Annual mandatory funds of $23 million for data
Authorizes mandatory funding of $11 million in
Requires USDA to establish a program whereby crop

---

CRS-112
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
mining and program integrity activities expired at the
FY2008, and $7 million in FY2009 and subsequent
insurance companies pay USDA a fee for access to
end of FY2005. [7 USC 1516(k)] Annual
years for crop insurance program compliance and
its data mining system, and USDA uses proceeds for
appropriations acts provided $3.6 million in annual
integrity activities, including data mining.
its data system. [Sec. 1915] Prohibits farmers from
discretionary funds (FY2006, FY2007). FY2008
[Sec. 11008]
collecting commissions as agents on policies in
appropriations act authorized mandatory funds of
which their family has a substantial interest.
$11.2 million.
[Sec. 1904]
Risk Management Research and Development
USDA is required to reimburse an applicant for the
Authorizes USDA to use no more than $30 million
Reduces mandatory funding for R&D from $15
R&D costs associated with developing a new plan of
annually in mandatory funds for grants for R&D and
million to $7.5 million, and for contracting and
crop insurance that is approved by USDA [7 USC
education and information programs, of which $5
partnerships from $25 million to $12.5 million.
1522] and with developing crop insurance education
million is for underserved states. Stipulates criteria
Prohibits a surcharge on premiums for organic crops,
programs. [7 USC 1524] Current annual mandatory
for which grants will be awarded. Requires USDA to
unless greater loss history is confirmed. Establishes
funding is $15 million for R&D reimbursements and
enter into contracts to improve coverage for organic
an alternative reimbursement grant process. Requires
$25 million for contracting and partnerships. [7 USC
crops, and to address the needs of beginning and
USDA to enter into contracts to expand coverage for
1522(e)]
minority farmers. [Secs. 11003-11006]
organic crops, aquaculture, energy crops such as
switchgrass, and to address the needs of beginning
and minority farmers. [Secs. 1917-1919, 1907]
Other Crop Insurance Provisions
No comparable provision.
Establishes a National Drought Council within
No comparable provision.
USDA and national drought preparedness plans,
including a Drought Assistance Fund to provide
technical and financial assistance to states for
mitigating drought risk. [Sec. 11012]
Ad-hoc emergency disaster payments are available to
Prohibits USDA from using production data from the
Similar to the House bill. Also requires USDA to
producers who experienced significant losses to a
sweet potato crop insurance pilot program in
extend the disaster application deadline for sweet
2005, 2006, or 2007 crop. (Sec. 9001 of P.L.
determining crop disaster payments for 2005 and
potato growers, if necessary, to implement this
110-28, as amended by P.L. 110-161).
2006. [Sec. 11016]
provision. [Sec. 1927]
Authorizes USDA to create crop insurance pilot
Mandates a sesame insurance pilot program for
Creates pilot programs for sesame [Sec. 1921],
programs. [7 USC 1523]
Texas. [Sec. 11011]
camelina [Sec. 1920], and enterprise/whole farm
units [Sec. 1909].
No comparable provision.
No comparable provision.
Makes contract livestock producers eligible for crop

---

CRS-113
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
insurance, if not covered by other policies. [Sec.
1916] Requires a USDA report on issues regarding
declining crop insurance yields, especially for
perennials. [Sec. 1928]
“Sodsaver” Provisions Related to Farmland Conservation — see section on Conservation Programs (above)
Disaster Assistance
Congress periodically provides ad-hoc emergency
No comparable provision.
Creates permanent authority for a disaster payment
disaster payments to crop and livestock growers to
program that provides payments to crop and livestock
supplement income following a natural disaster.
growers who experience significant production losses
Most recently, Congress provided emergency
in a USDA-declared disaster area. For FY2008-12,
supplemental assistance for 2005, 2006, or 2007
the program is funded through a transfer of 3.34% of
production losses. [Sec. 9001 of P.L. 110-28, as
annual customs receipts from the U.S. Treasury.
amended by P.L. 110-161].
Payments are made under new permanent programs:
crop disaster; livestock indemnity; tree assistance and
emergency livestock assistance. [Sec. 12101]
The Small Business Administration offers low
No comparable provision.
Makes many changes to SBA disaster loan program
interest, fixed-rate loans to small businesses to help
authority including raising the loan cap from $1.5
them recover from economic injury caused by a
million to $2 million; extending assistance to non-
natural disaster. [15 USC 636(b), (c), and (f)]
profits; enhancing SBA and FEMA coordination of
Note: Farmers generally are not eligible for SBA
disaster response, among other provisions. [Secs.
loans, and instead receive assistance through USDA
11111-11161]
programs.
Sec. 9012 of the U.S. Troop Readiness, Veterans’
Amends Sec. 9012 by stating that “the purchase of a
No comparable provision.
Care, Katrina Recovery, and Iraq Accountability
Non-insured Assistance Program (NAP) policy shall
Appropriations Act of 2007 (P.L. 110-28) required
not be a requirement to receive any Federal livestock
that “in carrying out crop disaster and livestock
disaster assistance.” [Sec. 11015]
assistance in this title, the Secretary shall require
forage producers to have participated in a crop
Note: The House farm bill was passed prior to
insurance pilot program or the Non-Insured Crop
enactment of P.L. 110-80, which removed the crop
Disaster Assistance Program (NAP) during the crop
insurance or NAP purchase requirement for forage
year for which compensation is received.”
producers.
In August 2007, separate legislation was enacted

---

CRS-114
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
(P.L. 110-80), removing this requirement of forage
producers.
MISCELLANEOUS FOOD SAFETY PROVISIONS (TITLE XI)
Agricultural Biosecurity
No comparable provision.
No comparable provision.
Defines the terms for purposes of program: agent,
agricultural biosecurity, agricultural countermeasure,
agricultural disease, agriculture, agroterrorist act,
animal, department, development, plant, and
qualified agricultural counter-measure. [Sec. 11011]
No comparable provision, but Homeland Security
No comparable provision.
Establishes (1) a National Plant Disease Recovery
Presidential Directive 9 (HSPD-9) instructs USDA
System of countermeasures to respond to an outbreak
and DHS to develop a National Plant Disease
of plant disease within a single growing season; and
Recovery System and a National Veterinary
(2) a National Veterinary Stockpile of counter-
Stockpile. [HSPD-9(18)]
measures, available to state veterinarians within 24
hours to leverage the strategic national stockpile.
[Sec. 11012]
No comparable provision.
No comparable provision.
Establishes a competitive grant program at USDA to
stimulate R&D of agricultural countermeasures.
Waves competitive process in emergencies. Provides
for coordination with DHS grants and
countermeasure development. Authorizes annual
appropriations of $50 million for FY2008-12. [Sec.
11013]
No comparable provision, but HSPD-9 instructs
No comparable provision.
Establishes a veterinary workforce grant program at
USDA to support the development and promotion of
USDA to increase the number of veterinarians
higher education programs for the protection of
trained in biosecurity. Authorizes appropriations
animal and plant health. [HSPD-9(20)]
(such sums as necessary) for FY2008-12. [Sec.
11014]
No comparable provision.
No comparable provision.
Provides grants for biosecurity training programs in
planning, preparedness and response for food science
professionals/ veterinarians. Authorizes

---

CRS-115
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
appropriations (such sums as necessary) for FY2008-
12. Provide grants and low-interest loans to states to
assess response capability for food science and
veterinary biosecurity. Authorizes annual
appropriations of $25 million for FY2008-12. [Sec.
11015]
Prohibits importation of the foot and mouth disease
Allows explicitly for USDA to conduct FMD (and
Requires USDA to issue a permit to DHS to possess
(FMD) virus, and limits research on FMD virus to
other hazardous virus) research on the U.S. mainland
and work with live FMD virus at the proposed
locations outside of the U.S. mainland to lessen the
without issuing itself a permit. Prohibits anyone
National Bio- and Agro-Defense Facility, subject to
likelihood that an accidental laboratory release of
other than USDA from possessing certain viruses on
compliance with USDA rules for handling “select
FMD might reach domestic animals. By statute,
a USDA-prescribed list, unless USDA issues a
agents.” Leaves unchanged the current restrictions
USDA must explicitly permit research on FMD virus
permit. But the prohibition would not apply to “select
on possession of FMD and other dangerous viruses.
to be performed on the mainland of the United States,
agents,” and FMD virus is a select agent. [Sec. 7108]
[Sec. 11016]
and has not yet done so. [21 U.S.C. 113a]
Sets civil penalties for violations of the Plant
No comparable provision.
Amends civil penalties as follows: $500,000 for each
Protection Act: $50,000 in the case of any individual
violation adjudicated in a single proceeding; adds a
(civil penalty may not exceed $1,000 in the case of
penalty of $1 million for each violation adjudicated
an initial violation for moving regulated articles not
in a single proceeding involving a genetically
for monetary gain); $250,000 in the case of any other
modified organism. Requires action on a violation no
person for each violation; $500,000 for all violations
later than five years after the date of violation. [Sec.
adjudicated in a single proceeding; or twice the gross
11017]
gain or gross loss for any violation, forgery, counter-
feiting, unauthorized use, etc. [7 U.S.C. 7734(b)]
No comparable provision.
No comparable provision.
Requires a DHS report on regulations for the
possession of propane in certain quantities, including
number of agricultural facilities, alternative security
programs, and compliance costs. [Sec. 11070]
Food Safety Commission
Sec. 10807 of the Farm Security and Rural
No comparable provision.
Establishes a Congressional Bipartisan Food Safety
Investment Act of 2002 (P.L. 107-171) established a
Commission to study and make recommendations to
15-member Food Safety Commission appointed by
modernize food safety programs, including
the President to make recommendations to enhance
organizational and resource requirements which
the U.S. food safety system. Provision not
emphasize prevention and are based on risk

---

CRS-116
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
implemented. [21 U.S.C. 341 note]
assessment and best-available science. Specifies
membership requirements, meeting procedures and
timetables, and other aspects of the commission’s
report [Sec. 11060] Requires the President review
the report and submit proposed legislation based on
recommendations. Expresses Sense of the Senate on
the need for additional resources and direction for
federal food safety agencies, for agreements between
the U.S. and its trading partners, and for
comprehensive food safety legislation. [Sec. 11072]
Foods from Cloned Animals
FDA had asked companies to voluntarily not
No comparable provision.
Prohibits FDA from issuing a final risk assessment
introduce meat and milk from cloned animals and
and lifting the voluntary moratorium until completion
offspring until it completes a final risk assessment
of newly mandated National Academy of Sciences
and guidance on their safety. FDA published the
and USDA studies on, respectively, the safety and on
final risk assessment/guidance on 1/15/08; USDA has
the market impacts of introducing products from
asked that the moratorium on cloned animals (but not
cloned animals. [Sec. 7507]
offspring) continue until markets are educated on
safety.
Invasive Species
A number of federal agencies, including USDA, have
No comparable provision.
Requires cooperation among these federal agencies
statutory responsibilities aimed at preventing the
and Hawaii in preventing and controlling the spread
introduction of and controlling invasive species.
of invasive species in the state; establishes expedited
procedures for Hawaii to seek federal approval to
adopt restrictions on movements into the state in
addition to federal restrictions; authorizes
appropriations of such sums as necessary (FY2008-
12). [Sec. 11063]
USDA is authorized under several authorities to
No comparable provision.
Clarifies that USDA may provide funds on an
provide financial assistance to eradicate outbreaks of
emergency basis to assist states in combating
invasive pests and diseases, including on an
invasive pest and disease outbreaks for any
emergency basis.
appropriate period of years after the date of initial
detection, as determined by USDA. [Sec. 11078]

---

CRS-117
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
The Plant Protection Act (PPA) [7 U.S.C. 7701 et
No comparable provision.
Establishes a revolving loan fund for eligible local
seq.] authorizes USDA’s Animal and Plant Health
governments to borrow up to $5 million (2%
Inspection Service (APHIS) to cooperate with states,
interest), to finance purchases of equipment to
localities and others to prevent the spread of and
monitor, remove, dispose of and replace infested
eradicate invasive pests and diseases, some which are
trees within their jurisdictions; spells out repayment
affecting trees in urban areas, including the Asian
terms. Authorizes appropriations of such sums as
Longhorned Beetle and the Emerald Ash Borer.
necessary. [Sec. 11090] Requires USDA, in
cooperation with states, to allow states to pass along
cost-sharing assistance to local government for
activities relating to invasive species infestations.
[Sec. 11091]
Animal Welfare Act
No comparable provision under the Animal Welfare
Amends the AWA to prohibit use of live animals for
No comparable provision on medical marketing.
Act (AWA) as amended [7 U.S.C. 2131 et seq.],
marketing medical devices. Increases the cap for
which is intended to ensure the humane treatment of
AWA violations from $2,500 to $10,000 per
research animals, bred for commercial sale, exhibited
violation, and specifies that each day and each animal
to the public, or commercially transported; and to
subject to a violation be considered a separate
prevent animal fighting activities.
offense, among other things. [Sec. 11316]
Sec. 7 of the AWA prohibits research facilities from
Replaces language in Sec. 7 to expand the definition
Same as the House provision except a provision
buying dogs or cats except from certain persons
of a person regulated under this section; and to
directing that use of random source dogs and cats
regulated under the AWA.
stipulate permissible sources of dogs and cats for
from “Class B dealers” be phased out within five
research facilities. Introduces an additional penalty
years of enactment. [Sec. 11079]
of $1,000 for each violation of this section of the
AWA. [Sec. 11317]
Sec. 26 of the AWA spells out a series of prohibited
No comparable provisions on animal fighting or
Amends the AWA to require HHS and USDA
acts related to animal fighting and establishes
commercial importation of young dogs.
regulations prohibiting importing for resale dogs less
penalties for violations. [18 U.S.C. 49] Enables the
than six months of age, unless USDA determines the
federal government to collect costs incurred for
Amends the AWA to strengthen prohibitions on dog
dog is in good health and has all necessary
caring for seized animals. There is no comparable
and other animal fighting activities; defines a dog
vaccinations (exemptions for research or veterinary
provision on importation of young dogs in current
fighting venture; and appears to expand who can
treatment). [Sec. 3205]
law.
collect for costs of care of seized animals. Increases
the maximum imprisonment from three to five years.
[Sec. 11076]

---

CRS-118
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Other APHIS-Related Provisions
FDA since 1975 has banned the sale of pet turtles
No comparable provision.
Requires FDA to study the prevalence of Salmonella
under four inches long due to health concerns (i.e.,
in legally-sold reptiles and amphibians in the U.S.
the risk of children getting Salmonella infections
compared with the level in pet turtles. If prevalence
from them). Does not ban sale of other pet reptiles
is similar, USDA is to take additional specified
and amphibians. [21 C.F.R. 1240.62 (b)]
actions. [Secs. 11101-11103]
USDA’s APHIS operates a program (other legislative
Requires USDA to coordinate fruit and vegetable
No comparable provision.
authority) that provides certification as a service to
market analyses with its Foreign Agricultural Service
U.S. exporters desiring to meet foreign sanitary and
and with the private sector; requires USDA to list on
phytosanitary (SPS) requirements.
the Internet the status of all plant-related export
petitions, and provide SPS-related information. [Sec.
11307]
The 1990 farm bill, as amended, authorizes APHIS to
No comparable provision.
Exempts from AQI user fees trucks transiting Canada
collect agricultural quarantine inspection (AQI) user
between Alaska and the lower 48 states (and vice
fees for both APHIS and DHS’s Customs and Border
versa), so long as they remain sealed when in
Protection services in connection with preclearance
Canada. [Sec. 11080]
or the port-of-entry arrival of international
passengers and of commercial vessels, trucks, loaded
railroad cars, aircraft. [21 U.S.C. 136a]
The USDA-APHIS Wildlife Services program is
No comparable provision.
Sense of Senate that USDA’s Wildlife Services
charged with helping to alleviate wildlife damage to
program should not compete with or condone
agricultural, urban, and natural resources.
competition with the private sector in managing
[7 U.S.C. 426]
nuisance birds in urban areas [Sec. 11085]
APHIS is responsible for preventing, detecting,
No comparable provision.
Requires USDA to issue regulations for the national
eradicating, and controlling animal diseases and pests
aquatic health improvement program, in accordance
under authority of the Animal Health Protection Act
with AHPA and recommendations of a new General
[AHPA; 7 U.S.C. 8301 et seq.]
Advisory Committee for Oversight of National
Aquatic Animal Health. Establishes an
indemnification fund to compensate aquatic farmers
for losses due to the eradication of aquatic animal
diseases. Provides for cost-sharing of plan

---

CRS-119
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
implementation. Authorizes appropriations of $15
million annually (FY2008-09). [Sec. 11086]
OTHER MISCELLANEOUS PROVISIONS (TITLE XI)
Miscellaneous Provision Related to Payments to Deceased Farmers — see section on Commodity Programs (above)
Socially Disadvantaged and Limited Resource Producers
Sec. 2501(a)(1) of the 1990 farm bill established
Amends program to specify that technical and
Similar to the House bill, with technical differences.
Outreach and Assistance for Socially Disadvantaged
outreach assistance program is to be used to enhance
Authorizes appropriations of up to $50 million
Farmers and Ranchers and Limited Resource Farmers
the coordination, outreach, technical assistance, and
annually for FY2008-12. No more than 5% of funds
and Ranchers, authorizing USDA to carry out
education efforts authorized under USDA programs.
are to be used for administrative expenses. Allows
outreach and technical assistance to assist socially
Mandates CCC funding of $15 million annually for
USDA to not require matching funds to award a
disadvantaged farmers and ranchers in: owning and
FY2008-12. No more than 5% of funds are to be
grant, contract or cooperative agreement.
operating farms and ranches; and in participating
used for administrative expenses. [Sec. 11201]
[Secs. 11052-53]
equitably in the full range of agricultural programs
offered by USDA [7 U.S.C. 2279]
Sec. 2501(g)(1) of the 1990 farm bill directs USDA
Reauthorizes improved program delivery by USDA
Similar to the House bill, with technical differences.
to improve service delivery on Indian reservations.
on Indian reservations. [Sec. 11202]
[Sec. 11054]
[7 U.S.C. 2279(g)(1)]
Sec. 2501A(c)(1) of the 1990 farm bill directs USDA
Directs USDA annually to compile program
Similar to the House bill. Directs USDA, acting
to annually compute the participation rate of socially
application and participation rate data on socially
through USDA’s Assistant Secretary for Civil Rights,
disadvantaged farmers and ranchers as a percentage
disadvantaged farmers and ranchers for each county
to use the enhanced data collection [Sec. 11056], but
of the total participation of all farmers and ranchers
and state. Data are to be made public.
also to conduct of oversight and evaluation of civil
for each USDA program [7 U.S.C. 2279]
[Sec. 11203]
rights compliance. [Sec. 11064]
Sec. 7405 of the 2002 farm bill establishes the
Reauthorizes program, and provides $15 million in
Authorizes $30 million in annual appropriations.
Beginning Farmer and Rancher Development
mandatory funding annually (FY2008-12). [Sec.
Incorporates energy conservation efficiency and
Program; provides training, education,
11204]
transition to organic farming into program, limiting
outreach/technical assistance initiatives. [7 U.S.C.
grants to $250,000 each. [Sec. 7309]
3319f]
No comparable provision.
Authorizes USDA to provide a receipt for service or
Specifies that the USDA’s Farm Service Agency and
denial of service upon request to any applicant for
USDA’s Natural Resources Conservation Service as
USDA loans and grants. [Sec. 11205]
the agencies subject to this provision; requires USDA
receipt upon request. [Sec. 11057]

---

CRS-120
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No comparable provision.
Directs USDA to ensure that the Census of
Similar to the House bill. [Sec. 11055]
Agriculture and USDA’s Economic Research Service
(ERS) track socially disadvantaged and limited
resource farmers and ranchers. [Sec. 11206]
No comparable provision.
Directs USDA to prepare a plan to join the technical
No comparable provision.
and support assistance for socially disadvantaged
farmers/ranchers within the Office of Outreach, and
to relocate USDA’s office. [Sec. 11208]
No comparable provision.
Directs USDA to establish an Advisory Committee
No comparable provision.
on Minority Farmers under USDA’s Office of
Outreach, which will be responsible for reviewing
civil rights cases and ensuring they are processed in a
timely manner. [Sec. 11209]
No comparable provision.
Directs USDA to establish a Coordinator for
No comparable provision.
Chronically Underserved Rural Areas, to be located
in USDA’s Office of Outreach and to direct resources
to high need, poverty rural areas. [Sec. 11210]
No comparable provision.
No comparable provision.
Creates an Office of Small Farms and Beginning
Farmers and Ranchers to coordinate USDA activities
across agencies to ensure access to all USDA
programs for small, beginning, and socially
disadvantaged farmers and ranchers, representation
in Agriculture Census data, and development of and
access to enhanced outreach programs. [Sec. 11088]
Pigford Discrimination Decision
Commonly known as the “Pigford decision,” pertains
Permits any claimant in the Pigford decision who has
Similar to the House bill, but with technical
to a federal district court decision resolving a class
not previously obtained a determination on the merits
differences. Authorizes appropriations of such sums
action discrimination suit between USDA and black
of a claim, to petition in civil court to obtain such a
as necessary beyond the $100 million in mandatory
farmers. The suit claimed USDA discriminated
determination (limits total amount of payment/debt
funding. [Sec. 5402]
against black farmers on the basis of race and failed
relief pursuant to this court action to $100 million).
to investigate or properly respond to complaints from
Restricts USDA from starting foreclosure of a loan if
1983-1997. [Pigford v. Glickman, No. 97-1978 and
the borrower is a Pigford claimant who can show that

---

CRS-121
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
No. 98-1693 (D.D.C. July 14, 2000)]
a pending foreclosure is related to a Pigford claim.
[Sec. 11312]
Miscellaneous Rural Development Provisions
No comparable provision.
Prohibits closure or relocation of USDA Farm
Prohibits any expenditures to close “critical access
Service Agency (FSA), Rural Development Agency,
county FSA offices” through 2012, unless approved
and Natural Resources Conservation Service county
by Congress. [Sec. 11071]
offices until one year after enactment. [Sec. 11306]
No comparable provision.
Authorizes USDA to make grants to reduce the
Similar to the House bill. [Sec. 11062]
availability of anhydrous ammonia to curtail the
production of methamphetamine (up to $15 million)
for FY2008-12. [Sec. 11308]
No comparable provision.
Authorizes USDA to make available to rural areas
No comparable provision.
any excess and surplus USDA computers. [Sec.
11303]
No comparable provision.
No comparable provision.
Provides emergency grants to community-based
agencies to assist low-income migrant and seasonal
farmworkers (for use in transportation, food,
clothing, housing). [Sec. 11061]
No comparable provision.
Sense of Congress regarding “food deserts” or
No comparable provision.
geographically isolated neighborhoods/communities
with limited or no access to major chain grocery
stores. Directs USDA, in coordination with other
agencies/non-profits, to conduct a national
assessment. [Sec. 11311]
No comparable provision.
No comparable provision.
Authorizes USDA to make grants to community-
based organizations to improve the supply, stability,
safety, and training of farmworkers. [Sec. 11066]
No comparable provision.
No comparable provision.
Directs GAO, in consultation with other agencies and
organizations to issue a report on access to health
care for farmers. [Sec. 11074]

---

CRS-122
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Various sections of the Department of Agriculture
Directs USDA to create a Farmworker Coordinator
Similar to the House bill, but amends different
Reorganization Act of 1994 pertain to the
(working in consultation with other agencies and
section of the Department of Agriculture
reorganization of USDA. [7 U.S.C. 6933; 7 U.S.C.
organizations) to assist and support farmworkers and
Reorganization Act of 1994. [Sec. 11059]
7014]
migrant seasonal workers. [Sec.11207]
No comparable provision.
No comparable provision.
Directs USDA to conduct a study on the economic
impacts of local food systems and commerce. [Sec.
11089]
Other Miscellaneous Title Provisions
Provision pertaining to U.S. government claims
Eliminates the statute of limitations applicable to
Similar to the House bill. [Sec. 11069]
collected from a person through administrative offset.
collection of debt by administrative offset. [Sec.
[31 U.S.C. 3716(e)]
11314]
No comparable provisions.
No comparable provisions.
Other miscellaneous provisions:
—
Additional contracting authority. [Sec. 11053]
—
Amendment to the Right to Financial Privacy
Act of 1978. [Sec. 11068]
—
Action by President/Congress based on report.
[Sec. 11072]
— Chihuahuan Desert Nature Park land
conveyance. [Sec. 11075]
— Management and oversight regulations. [Sec.
11077]
—
USDA conference transparency. [Sec. 11081]
—
Report on ending of childhood hunger in U.S.
[Sec. 11082]
—
Emergency grant for effects of Kansas tornado.
[Sec. 11083]
—
Program report. [Sec. 11084]
—
Southwest regional dairy program. [Sec.
11092]
No comparable provisions.
Other miscellaneous provisions:
No comparable provisions.
—
Permanent debarment from participation in
USDA programs for fraud. [Sec. 11304]
—
No discrimination against use of pesticide

---

CRS-123
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
products. [Sec. 11305]
— Provisions regarding USDA Graduate School.
[Sec. 11309]
—
Prevention/investigation of fraud and error.
[Sec. 11310]
—
Study of wastewater infrastructure near
U.S.-Mexico border. [Sec. 11310]
REVENUE AND OFFSETTING COST PROVISIONS (TITLES XII AND XIII)
Revenue-Increasing Provisions
Tax-Treaty Withholding Tax Rates. The U.S.
Provides in IRC section 894 that if a U.S. subsidiary
No comparable provision.
Internal Revenue Code (IRC) [IRC sec. 871] applies
makes a deductible payment to a foreign corporation
a 30% withholding tax to interest, dividends, and
that has a common foreign parent, and the
similar “fixed and determinable” income payments
withholding tax rate on the payment would be higher
made to foreign persons and firms residing outside
if the payment were made directly to the common
the U.S. (nonresident aliens). The tax rate is
parent, the higher rate will be applied. [Sec. 12001]
reciprocally reduced or eliminated in many cases by
one of the many bilateral tax treaties the U.S. has
signed (acknowledged in IRC sec. 894).
Corporate estimated tax payments. Corporations
Increases the amount of required corporate estimated
Increases the amount of required corporate estimated
are required to make quarterly tax payments
tax payments falling in the last quarter of FY2012 to
tax payments falling in the last quarter of FY2012 to
generally equal to a specified percentage of their
115.75% of the amount otherwise required (a 1.25
121.5% of the otherwise required amount and
estimated tax liability for the year. [IRC sec. 6655]
percentage-point increase over P.L. 110-28) and
reduces firms’ next required payments by a
In 2005, P.L. 109-222 increased the amount of
reduces firms’ next required payments by a
corresponding amount. [Sec. 12506]
estimated tax payments due in the last quarter of
corresponding amount. (Note, however, that P.L.
federal FY2012 to 106.25% of the amount otherwise
110-142, passed after the House approved H.R. 2419,
due and reduced firms’ next required payments by a
increased the required payments by 1.50 percentage
corresponding amount. The provision shifted a
points, rendering the House-passed provision
portion of payments forward from FY2013 to
inapplicable. [Sec. 13003]
FY2012. In 2007, P.L. 110-28 increased the amount
thus shifted to 114.5% of the amount otherwise
required.
Limitation on farm losses. No provision in current
No comparable provision.
Modifies IRC section 461 to limit deductible farm
law, although the tax code’s passive activity rules
losses for the year in which losses are incurred to

---

CRS-124
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
[IRC sec. 469] may limit farm losses where the
$200,000 in cases where the taxpayer receives
taxpayer does not materially participate in the farm
Agriculture Program Payments or CCC loans. [Sec.
business. Section 461 contains special rules
12501]
governing when deductions can be claimed.
Limitation on tax deferral for like-kind exchanges.
No comparable provision.
Denies non-recognition treatment for like-kind
Under current law, no gain or loss is recognized if
exchanges that include unimproved real estate in
property used in a trade or business is exchanged for
cases where the owner receives Agriculture Program
property of a like kind used in a trade or business.
Payments or CCC loans. [Sec. 12504]
[IRC section 1031].
Increase in information return penalties. The tax
No comparable provision.
Increases penalties for failure to file information
code requires information returns to be filed that
returns. [Sec. 12508]
report on a variety of transaction types. [IRC secs.
6721 — 6723] The returns are one of the tax
system’s tool for boosting tax compliance and for
monitoring tax shelters. There are penalties for
failure to file required information returns.
Economic substance doctrine. The “economic
No comparable provision.
“Clarifies” the economic substance doctrine by
substance” doctrine is a judicial doctrine that has
integrating a part of it into the IRC (generally section
developed in regard to tax shelter cases. In general
7701, relating to definitions). In cases where a court
terms, it denies the use of tax benefits in transactions
determines the economic substance doctrine is
not having an economic substance not related to
relevant, applies a two-part (“conjunctive”) test to a
taxes.
transaction, requiring that (1) the transaction change
the taxpayer’s economic position in a meaningful
way (an “objective” test); and (2) the taxpayer has a
substantial non-federal-tax purpose for engaging in
the transaction. [Sec. 12521]
No comparable provisions.
No comparable provisions.
Other miscellaneous provisions:
—
Increases index dollar threshold for computing
net earnings from self-employment. [Sec.
12502]
—
Denies deduction for certain fines and
penalties. [Sec. 12507]
—
Modifies penalties for failure to file partnership

---

CRS-125
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
returns. [Sec. 12511]
—
Denies deduction for interest paid in certain
tax-motivated transactions. [Sec. 12523]
Supplemental Agricultural Disaster Assistance — see section on Miscellaneous Programs (above)
Tax-Related Conservation Provisions
Conservation Reserve Tax Credit. USDA provides
No comparable provision.
Creates a new elective conservation reserve tax credit
a conservation reserve program under which farmers
that can be claimed in place of payments received
receive annual federal payments for contracting to
under the conservation reserve program. [Sec. 12201]
establish resource-conserving covers on farmland

(Title XII of the Food Security Act of 1985). There
is no related tax credit under current law, although
taxpayers may currently deduct charitable donations
made for conservation purposes under IRC sec. 170.
Application of Self-Employment Contributions
No comparable provision.
Exempts conservation reserve program payments
Act (SECA) social security tax to conservation
received by persons receiving social security benefits
reserve payments. In December 2006, the Internal
from SECA tax. [Sec. 12202]
Revenue Service (IRS) issued a notice (Notice 2006-
108) proposing to apply SECA tax [IRC sec. 1401]
to conservation reserve program payments.
Charitable contributions for conservation
No comparable provision.
Makes permanent the temporary relaxation of the
purposes. Deductible contributions of capital gain
deduction cap for contributions of conservation
property are limited by IRC sec. 170 to generally
property. [Sec. 12203]
30% of an individual’s income. Rules were
temporarily liberalized (through 2007) for
contributions of property for conservation purposes;
contributions are deductible to the extent they exceed
50% of what is generally an individual’s income over
other contributions.
No comparable provision.
No comparable provision.
Creates a new tax credit for costs incurred or the loss
in value to property to carry out a habitat
management plan. The credit’s rate varies with the
length of the qualifying plan. [Sec. 12204]

---

CRS-126
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Deductions for endangered species recovery
No comparable provision.
Permits farmers to treat outlays made pursuant to the
expenditures. No provision, but under current IRC
Endangered Species Act in the same manner as soil
sec. 175, farmers are permitted to “expense” (deduct
or water conservation outlays (i.e., the outlays can be
immediately) outlays for soil or water conservation
expensed). [Sec. 12205]
rather than treating the outlays as capital
expenditures — a treatment that would generally
delay the deductions.
Tax-exempt bonds for forest conservation. In
No comparable provision.
Establishes (in limited amounts) a new type of tax-
general, interest on bonds issued by state and local
exempt private activity bond for bonds whose
governments is tax-exempt if used for governmental
proceeds are used to finance forest conservation.
purposes (IRC section 103). However, not all state
[Sec. 12211]
and local bonds used to finance private activities are
tax exempt; private activity bonds are subject to
certain restrictions and are subject to caps. [IRC secs.
141-142]
Deduction for qualified timber gain and timber
No comparable provision.
Adds new section 1203 to the Internal Revenue
real estate investment trust (REIT) provisions.
Code, which permits taxpayers to elect to deduct
For tax years beginning before 2011, individuals’
60% of timber gain from taxable income. (The
long term capital gain is taxed at reduced rates
remaining 40% would be taxed at ordinary-income
(generally, 15%; section 1 of the tax code).
rates.) Also includes several provisions affecting
Taxpayers are permitted to treat the cutting of timber
timber REITs, including clarification that timber gain
as a sale eligible for capital gains treatment. [IRC
is qualified real estate income for a REIT. [Sec.
sec. 631] REITs are specially-defined “pass through
12212-12217]
entities” that are permitted to deduct dividends they
distribute from taxable income, thus eliminating
corporate-level tax from distributed income. [IRC
secs. 856-859] REITs are subject to several
minimum-distribution requirements and 75% of
REIT gross income must consist of certain types of
real estate income.
No comparable provisions.
No comparable provisions.
Other miscellaneous provisions:
—
Exclusion for programs and payments for fish,
wildlife, forest protection, and pest
management. [Sec. 12206]

---

CRS-127
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
—
Elective tax credits for payments under
conservation programs [Sec. 12207]
Tax-Related Energy Provisions
Credit for cellulosic fuel production. IRC sec. 40
No comparable provision.
Provides a fourth tax credit under section 40 for
provides an alcohol fuels 3-part credit consisting of:
small producers who produce alcohol fuel from
(1) a 10¢ per gallon small-producer tax credit for
cellulosic materials (e.g., corn stover or switchgrass).
ethanol production; (2) a 60¢ per gallon tax credit for
The credit is $1.25 per gallon less the amount of
alcohol used in a mixture of alcohol and gasoline or
small-producer ethanol credit claimed and the
other fuels; and (3) a 60¢ per gallon credit for
alcohol mixture credit claimed for ethanol. [Sec.
production of alcohol that is not used in a mixture.
12312]
(The latter two credits are 51¢ per gallon in the case
of ethanol.) The credit expires at the end of 2010.
Alcohol Fuels Credit. For ethanol, the rates for the
No comparable provision.
Reduces the tax credit rate for ethanol credits to 46¢
alcohol mixture credit and the alcohol credit are 51¢
from 51¢ per gallon.
per gallon rather than the 60¢ per gallon rate that
[Sec. 12315]
otherwise applies.
Small-Producer Ethanol Credit. One component
No comparable provision.
Extends the small producer ethanol credit for two
of the 3-part credit is the 10¢ per gallon tax credit for
years through 2012. [Sec. 12313]
small ethanol producers. The credit is scheduled to
expire year-end 2010.
As described in the preceding entries, IRC sec. 40
No comparable provision.
Provides a fourth component of the alcohol fuels
provides a three-part tax credit for alcohol fuels. There
credit consisting of a 10¢ per gallon credit for fossil-
is no comparable provision in current law providing for
free alcohol fuels. The credit terminates at the end of
a small producer credit for fossil-free alcohol.
2012. [Sec. 12314]
Alternative Fuels Excise Tax Credits. Current law
No comparable provision.
Extends the two alternative fuels credits through
provides two alternative fuels tax credits that can be
December 2010 for all fuels other than hydrogen.
claimed against federal excise taxes: the alternative
[Sec. 12331]
fuels tax credit and the alternative fuel mixture credit.
[IRC secs. 6426-6427] The credits generally expire
at the end of September 2009, but the credit for
hydrogen expires at the end of September 2014.

---

CRS-128
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Tax Credits for Biodiesel Fuels. IRC sec. 40A
No comparable provision.
Generally extends the biodiesel fuel credits and
provides income tax credits for biodiesel (scheduled
payment provisions for two years (through 2010).
to expire at the end of 2008): (1) biodiesel mixture
The small producer agri-biodiesel credit is extended
credit; (2) biodiesel credit; and (3) the small producer
through 2012. [Sec. 12321]
agri-biodiesel credit. Other IRC provisions include
an excise tax credit for biodiesel fuel mixtures and
payments for biodiesel fuel mixtures.
Renewable diesel fuel incentives. Current law
No comparable provision.
Extends the renewable diesel fuel incentives for two
provides a tax incentive of $1.00 per gallon for
years, through 2010. It also places a cap on the credit
qualified renewable diesel fuel. It can be claimed as
that can be claimed for co-produced fuel.
an excise tax credit [IRC secs. 6426-6427], an
[Sec. 12321]
income tax credit [IRC sec. 40A], or a government
payment. It is scheduled to expire at the end of 2008.
No comparable provisions.
No comparable provisions.
Other miscellaneous provisions:
—
Wind credit [Sec. 12301]
—
Landowner incentive for electric transmission.
[Sec. 12302]
—
Modified treatment of energy grants/loans.
[Sec. 12303]
—
Expansion of depreciation for biofuel plants.
[Sec. 12311]
—
Modification of alcohol credit [Sec. 12315],
and calculation of fuel credits. [Sec. 12316]
—
Extension of temporary duty on ethyl alcohol.
[Sec. 12317]
—
Limits on drawback of duty on imported
ethanol. [Sec. 2318]
—
Treatment of qualified fuel mixtures. [Sec.
12322]
—
Extension of credit for installing alternative
fuel refueling property. [Sec. 12332]
Agricultural Tax Provisions
Installment Sale Rules for Farm Property.
No comparable provision.
Repeals the immediate recognition of recapture

---

CRS-129
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Taxpayers in some cases are permitted to recognize
income for sales of single-purpose agricultural or
income from installment sales gradually, as income is
horticultural structures (i.e., barns and similar farm
actually received. [IRC sec. 453] Separately,
buildings). [Sec. 12402]
taxpayers who recognize gain from the sale of
depreciable assets are required to “recapture” a
portion of the gain in accordance with depreciation
deductions that have been claimed on the asset;
recaptured gain is taxed at ordinary income tax rates
rather than capital gains rates. [IRC secs. 1245 and
1250] Under current law, income that is treated as
ordinary income under the recapture rules is taxed in
the year of the property’s disposition rather than in
installments.
Tax-credit bonds for investment in qualified rural
No comparable provision.
Creates a new type of tax credit bond (rural
infrastructure projects. In general, interest on
renaissance bonds) under new section 54A of the tax
bonds issued by state and local governments is tax-
code for investment in certain rural projects,
exempt if used for governmental purposes. [IRC sec.
generally including utilities programs, distance
103] However, not all state and local bonds used to
learning or telemedicine projects, electric programs,
finance private activities are tax exempt; private
rural telephone programs, broadband access
activity bonds are subject to certain restrictions and
programs, and rural community facility programs.
are subject to caps. An additional type of tax-favored
The amount of such bonds that can be issued is
bond are “tax credit” bonds, for which the purchaser
limited to $400 million. [Sec. 12404]
can claim a tax credit rather than receive a tax
exemption. Several different types of tax credit
bonds have been created in recent decades, including
qualified zone academy bonds [IRC sec. 1397E],
clean renewable energy bonds [IRC sec. 54], and
gulf tax credit bonds [IRC sec. 1400N].
No comparable provision.
No comparable provision.
Creates a new tax credit under new IRC section 45P
equal to 50% of a taxpayer’s expenditures on the
testing of new drugs for “minor” species (e.g., sheep
and goats, but not cattle and poultry).
[Sec. 12406]
Reduced depreciation recovery period for certain
No comparable provision.
Shortens the recovery period for farm machinery and

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CRS-130
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
farm machinery and equipment. Federal tax rules
equipment to 5 years from 10 years. The shortened
(generally IRC sec. 167 and related regulations)
recovery period applies only to assets placed in
specify the rules regarding income tax deductions for
service before 2010. [Sec. 12407]
depreciation of tangible capital assets, including
recovery periods (years over which deductions must
be spread) and recovery methods (portion of an
assets cost that can be deducted in each year).
Current law generally assigns a recovery period of 10
years to farm machinery.
No comparable provision.
No comparable provisions.
Other miscellaneous provisions:
—
Increased loan limit for issue bonds for
farming. [Sec. 12401]
— Exchange treatment involving mutual ditch,
reservoir, or irrigation stock. [Sec. 12403]
—
Agriculture business security tax credit. [Sec.
12405]
—
Expensing of broadband internet access. [Sec.
12408]
—
Tax credit for energy-efficient motors. [Sec.
12409]
Other Provisions
Authorization for the Commodity Futures Trading
No comparable provision.
Reauthorizes the CFTC [Sec. 13001-13204].
Commission (CFTC), a “sunset” agency established
Clarifies the CFTC’s jurisdiction over foreign
in 1974, expired on September 30, 2005. In the past,
exchange contracts offered to retail customers.
Congress has used the reauthorization process to
Expands CFTC’s authority over non-exchange
consider amendments to the Commodity Exchange
“electronic trading facilities” where contracts based
Act (CEA), which provides the basis for federal
on metals and energy commodities are traded. If the
regulation of commodity futures trading. The last
CFTC determined that trading on such a market
reauthorization resulted in the enactment of the
played a significant role in price discovery, the
Commodity Futures Modernization Act of 2000
facility would have to comply with several core
(CFMA), the most significant amendments to the
regulatory principles, including maintaining and
CEA since the CFTC was created in 1974. [7 U.S.C.
enforcing rules to prevent price manipulation. Such
2(c)(2))] Both chambers considered reauthorization
markets would also have to publish data on prices
bills in the 109th Congress, but none was enacted.
and trading volume.

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CRS-131
HOUSE-PASSED BILL
SENATE-PASSED SUBSTITUTE AMENDMENT
CURRENT LAW/POLICY
(H.R. 2419)
(H.R. 2419)
Key provisions covering income tax relief in times of
No comparable provision.
Provides several tax relief measures for areas in
disaster: casualty loss deductions [IRC sec. 165];
Kansas affected by the tornados of May 2007.
deferral of gain from involuntary conversions [IRC
Among the proposals are suspension of limits on
sec. 1231]; delayed filing deadlines; abatement of
certain casualty losses and relaxation of time
fines/fees (P.L. 109-73); and tax exemption for
requirements in the case of involuntary conversions.
certain disaster relief payments. [IRC section 139]
[Sec. 12701]
No comparable provisions.
No comparable provisions.
Other miscellaneous provisions:
—
Income treatment of Exxon Valdez litigation.
[Sec. 12801]
—
Extension of special rule for charitable
contributions of food inventory. [Sec. 12802]
—
Increase exclusion amount for mileage
reimbursements to volunteers. [Sec. 12803]
—
Technical correction for treatment of stock
basis in S corporations making charitable
contributions. [Sec. 12804]
—
Payment test for pro-sports facility bonds. [Sec.
12805]
—
Rehabilitation credit and depreciation
schedules to low-income housing for the
elderly. [Sec. 12806]
—
Modifies awards authority for advanced coal-
based electricity credits and gasification
credits. [Sec. 12807]
— Tax treatment for forestry conservation bonds.
[Sec. 12808]
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