Order Code RL34696
The 2008 Farm Bill:
Major Provisions and Legislative Action
October 3, 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, Mark Jickling, and N. Eric Weiss
Government and Finance Division

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The 2008 Farm Bill:
Major Provisions and Legislative Action
Summary
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, “2008 farm
bill”) was enacted into law on June 18, 2008. It contains 15 titles covering support
for commodity crops, horticulture and livestock production, conservation, nutrition,
trade and food aid, agricultural research, farm credit, rural development, energy,
forestry, and other related programs. It also includes provisions that make certain
changes to tax laws, in order to offset some new spending initiatives in the final bill.
The enacted bill succeeds the most recent 2002 farm bill (P.L. 107-171) and is to
guide most federal farm and food policies through 2012. Many provisions of the
2002 farm bill expired in September 2007, but were extended under a series of
temporary extensions prior to final enactment of the 2008 bill.
The enacted 2008 farm bill continues and/or modifies most existing farm and
commodity programs, and also creates new programs and provisions. For farm
commodities, the bill generally continues the framework of the 2002 farm bill,
revises payment limitations (tightening certain limits and relaxing others), adjusts
support prices for some commodities, and creates a new revenue support program,
in addition to the traditional direct, counter-cyclical, and marketing loan programs
for major supported crops. The bill also adds new stand-alone titles containing
provisions to address horticulture and livestock issues, including new mandatory
funding for specialty crop block grants and to support organic production; and
provisions to address meat and poultry inspection, country-of-origin labeling, and
livestock competition. Other provisions include changes to the current crop
insurance program, a new provision for ongoing disaster assistance, and expanded
borrowing opportunities for beginning and socially disadvantaged farmers.
The bill’s nutrition title increases food stamp benefits and sets new standards
that will make more households eligible, and also raises funding for fresh fruits and
vegetables in most domestic food programs. For research, the bill requires the
reorganization of USDA’s research, extension, and economic agencies. For most
other titles — conservation, international trade and food aid, rural development,
forestry, and energy — the enacted law reauthorizes, expands, and/or modifies many
of the existing programs, creates new programs and initiatives, and allows some
programs to expire.
The Congressional Budget Office (CBO) estimates the total cost of the 2008
farm bill (i.e., baseline plus new spending, using its March 2007 baseline) at just
under $284 billion in total budget authority over five years (FY2008-FY2012).
About $42 billion (15%) in projected spending will support commodity crops, $189
billion (67%) will support the cost of domestic nutrition programs, $24 billion (9%)
will support conservation programs, and $22 billion (8%) will support crop
insurance. Another $14 billion is expected to be spent on supplemental disaster
assistance, trade, horticulture and livestock production, rural development, research,
forestry and energy, and other programs. Offsets from tax provisions and proceeds
from the credit, crop insurance, and commodity program titles are estimated at $10
billion (FY2008-FY2012).

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Key CRS Policy Staff
Area of Expertise
Name
Telephone
Report Coordinator/Overview
Renée Johnson
7-9588
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; Disaster Assistance
Ralph M. Chite
7-7296
Renée Johnson
7-9588
Conservation
Tadlock Cowan
7-7600
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
Geoffrey S. Becker
7-7287
and Regulatory Programs; Food Safety
Rural Development
Tadlock Cowan
7-7600
Forestry
Ross Gorte
7-7266
Domestic Food Assistance and Nutrition
Joe Richardson
7-7325
Programs
Revenue-Raising Tax Provisions
Donald J. Marples
7-3739
Small Business Disaster Response
N. Eric Weiss
7-6209
Commodity Futures Trading Commission Mark Jickling
7-7784
(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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Contents
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2008 Farm Bill Policy Setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Budgetary Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Trade Negotiations and Commitments . . . . . . . . . . . . . . . . . . . . . . . . . 3
The Administration’s Policy Recommendations . . . . . . . . . . . . . . . . . . 3
Other Recommendations/Proposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Legislative Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Brief Overview of Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Projected Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2008 Farm Bill Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Summary of the 2008 Farm Bill Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Title I: Commodity Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Grains, Oilseeds, and Cotton Support . . . . . . . . . . . . . . . . . . . . . . . . . 11
Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Title II: Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Land Retirement/Easement Programs . . . . . . . . . . . . . . . . . . . . . . . . . 17
Working Lands Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
New Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Title III: Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Food Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Title IV: Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Supplemental Nutrition Assistance Program . . . . . . . . . . . . . . . . . . . . 22
The Emergency Food Assistance Program . . . . . . . . . . . . . . . . . . . . . 23
Other Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Title V: Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Farm Service Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Farm Credit System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Title VI: Rural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Title VII: Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Research Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Title VIII: Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Title IX: Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Title X: Horticulture and Organic Agriculture . . . . . . . . . . . . . . . . . . . . . . . 31
Title XI: Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Competition and Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Country-of-Origin Labeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Inspection, Registries, and Grading . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Title XII: Crop Insurance and Disaster Assistance Programs . . . . . . . . . . . 35
Crop Insurance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Other Disaster Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Title XIII: Commodity Futures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

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Title XIV: Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Socially Disadvantaged and Limited Resource Producers . . . . . . . . . . 39
Agricultural Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Title XV: Trade and Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Supplemental Agricultural Disaster Assistance . . . . . . . . . . . . . . . . . . 40
Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Major Provisions of the Enacted 2008 Farm Bill (P.L. 110-246) Compared
with Previous Law and the House- and Senate-Passed Bills (H.R. 2419) . . 43
Title I: Commodities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Grains, Cotton, Peanuts, and Minor Commodities . . . . . . . . . . . . . . . . . . . 43
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Base Acres and Program Yields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Prohibition on Small Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Producer Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Planting Flexibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Direct Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Counter-cyclical Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Revenue-based Counter-cyclical Payments . . . . . . . . . . . . . . . . . . . . . 53
Nonrecourse Marketing Loans and Other Recourse Loans . . . . . . . . . 56
Payment Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Adjusted Gross Income Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Administrative Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Dairy Price Support Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Dairy Forward Pricing Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Dairy Export Incentive Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Dairy Indemnity Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Dairy Promotion and Research Program . . . . . . . . . . . . . . . . . . . . . . . 73
Federal Milk Marketing Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Mandatory Dairy Commodity Price Reporting . . . . . . . . . . . . . . . . . . 74
Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
No Net Cost Directive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Price Support Levels, Loans and Payments . . . . . . . . . . . . . . . . . . . . . 74
Marketing Allotments and Allocations . . . . . . . . . . . . . . . . . . . . . . . . 75
Trade-Related Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Title II: Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Program Definitions and Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Highly Erodible and Wetland Conservation . . . . . . . . . . . . . . . . . . . . 77
Comprehensive Conservation Enhancement Program . . . . . . . . . . . . . 78
Conservation Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Wetlands Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Conservation Security Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Environmental Quality Incentives Program . . . . . . . . . . . . . . . . . . . . . 84
Farmland Protection Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Grassland Reserve Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Wildlife Habitat Incentives Program . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Other Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
New Conservation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Title III: Agricultural Trade and Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
P.L. 480 Food Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Other Food Aid Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

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Export Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Other Trade Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Provision Regarding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Title IV: Nutrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Reauthorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Food Stamp Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Fruits and Vegetables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
The Emergency Food Assistance Program . . . . . . . . . . . . . . . . . . . . 114
Commodity Supplemental Food Program . . . . . . . . . . . . . . . . . . . . . 115
Food Distribution Program on Indian Reservations . . . . . . . . . . . . . 115
Senior Farmers’ Market Nutrition Program . . . . . . . . . . . . . . . . . . . . 115
Community Food Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Geographic Preference (Purchase of Locally Produced Foods) . . . . . 116
Special Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Title V: Agricultural Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
USDA Farm Ownership Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
USDA Farm Operating Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Administrative Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Farm Credit System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Title VI: Rural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Defining Rural Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Rural Infrastructure: Water and Waste Disposal . . . . . . . . . . . . . . . . 126
Rural Broadband and Telecommunications Development . . . . . . . . 128
Agricultural-Based Rural Economic Development . . . . . . . . . . . . . . 130
Regional Economic Development and Planning . . . . . . . . . . . . . . . . 131
Rural Entrepreneurship and Business Investment Programs . . . . . . . 132
Community Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . 133
Other Rural Development Provisions . . . . . . . . . . . . . . . . . . . . . . . . 135
Title VII: Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Structure and Funding of Research, Education, and Extension . . . . . 136
Provisions Affecting Certain Research Institutions . . . . . . . . . . . . . 139
Organic Agricultural Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Specialty Crops Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Bioenergy Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Other Research Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Extended Program Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Repeal of Program Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Title VIII: Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Cooperative Forestry Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Other Forestry Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Title IX: Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Farm and Community Energy Systems . . . . . . . . . . . . . . . . . . . . . . . 155
Biofuel Feedstocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Biofuel Research and Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Other Renewable Energy Provisions . . . . . . . . . . . . . . . . . . . . . . . . . 162
Title X: Horticulture and Organic Production . . . . . . . . . . . . . . . . . . . . . . 162
Marketing and Trade Promotion, Consumer Access . . . . . . . . . . . . . 162
Organic Agriculture Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Pest and Disease Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Food Safety Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Disaster Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Specialty Crop Sector Data Collection . . . . . . . . . . . . . . . . . . . . . . . 167

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Other Commodity-Specific Provisions . . . . . . . . . . . . . . . . . . . . . . . 168
Title XI: Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Livestock Mandatory Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Meat and Poultry Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Seafood Grading and Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Country of Origin Labeling (COOL) . . . . . . . . . . . . . . . . . . . . . . . . . 170
Agricultural Fair Practices Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Packers and Stockyards Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Animal Pest and Disease Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 172
National Animal Identification System . . . . . . . . . . . . . . . . . . . . . . . 173
Other Commodity-Specific Provisions . . . . . . . . . . . . . . . . . . . . . . . 174
Title XII: Crop Insurance & Disaster Assistance Programs . . . . . . . . . . . 174
Timing of Crop Insurance Payments and Receipts . . . . . . . . . . . . . . 174
Reimbursement of Administrative and Operating Expenses . . . . . . . 175
Premiums and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Standard Reinsurance Agreement and Risk-Sharing . . . . . . . . . . . . . 176
Program Integrity (Waste, Fraud, and Abuse) . . . . . . . . . . . . . . . . . . 177
Risk Management Research and Development . . . . . . . . . . . . . . . . . 177
Small Business Disaster Loan Program . . . . . . . . . . . . . . . . . . . . . . . 178
Title XIII: Commodity Futures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Title XIV: Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Section 32 Funding for Nutrition Programs . . . . . . . . . . . . . . . . . . . . 179
Socially Disadvantaged and Limited Resource Producers . . . . . . . . . 180
Pigford Discrimination Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Agricultural Biosecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Food Safety Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Foods from Cloned Animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Invasive Species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Animal Welfare Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
Other APHIS-Related Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
Miscellaneous Rural Development Provisions . . . . . . . . . . . . . . . . . 188
Other Miscellaneous Title Provisions . . . . . . . . . . . . . . . . . . . . . . . . 189
Title XV: Revenue & Offsetting Cost Provisions . . . . . . . . . . . . . . . . . . . 191
Supplemental Agriculture Disaster Assistance . . . . . . . . . . . . . . . . . 191
Customs User Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Other Revenue and Tax-Related Provisions . . . . . . . . . . . . . . . . . . . 192
Tax-Related Conservation Provisions . . . . . . . . . . . . . . . . . . . . . . . . 194
Tax-Related Energy Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Agricultural Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
Appendix: 2007-2008 Farm Bill Debate Timeline . . . . . . . . . . . . . . . . . . . . . . 204
List of Tables
Table 1. 2002 Farm Bill Actual Spending (FY2002-FY2007 est.) and the March 2007
CBO Baseline (FY2008-FY2013) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Table 2. CBO Estimated Costs for the 2008 Conference Agreement on the Farm Bill
(FY2008-FY2012) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

---

The 2008 Farm Bill:
Major Provisions and Legislative Action
Overview
Roughly every five years, Congress debates legislation governing federal farm
and food policy. The 2002 farm bill (P.L. 107-171) covered a wide range of
programs including commodity price and income support, farm credit, agricultural
conservation, research, rural development, and foreign and domestic food programs,
among others. In 2007, both the House and Senate completed committee and floor
action on their respective versions of the new farm bill. However, conference
negotiations were initially delayed because of differences between committee
leadership and the Administration’s position, largely over tax-related provisions
needed to offset new spending in the bill. Many provisions of the 2002 farm bill
expired in September 2007, but were continued under a series of temporary
extensions to allow more time to resolve differences between the House- and Senate-
passed bills.
On May 8, 2008, 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 agreement on the 2008 farm bill. The Bush
Administration vetoed the legislation, but both the House and Senate voted to
override the veto. On May 22, the 2008 farm bill was enacted into law (P.L. 110-
234). However, the newly enacted law contained only 14 of the 15 farm bill titles
because an enrolling error resulted in one title of the bill being omitted from the
version that was sent to the White House. To resolve this issue, both the House and
Senate passed a version of the 2008 farm bill with all 15 original bill titles (H.R.
6124). The President vetoed H.R. 6124 on June 18. That same day, both the House
and Senate voted to override the veto and the bill became law (P.L. 110-246),
replacing P.L. 110-234.
Congressional Action
2008 Farm Bill Policy Setting
The 2007/2008 farm bill debate differed from the 2002 debate in some
important ways. First, the 2008 farm bill faced potentially significant budgetary and
spending constraints, while the 2002 farm bill was crafted during a period of budget
surplus. Second, the 2008 farm bill debate was set against a backdrop of an ongoing
multilateral negotiation, which targeted farm subsidies and challenged U.S. support
and legal programs under existing trade rules. Third, the Bush Administration
submitted its own detailed proposal for the new farm bill, whereas for other recent

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CRS-2
farm bills the Administration had not issued specific recommendations. Fourth,
many other groups, including both traditional and non-agricultural interests, also
submitted specific recommendations that ranged from maintaining the status quo to
making dramatic policy changes.
Budgetary Considerations. As with all federal programs, the farm bill
debate was influenced by budgetary constraints imposed by Congress. Recent federal
deficits raised concerns with respect to reauthorization or expansion of current farm
programs. Prior to congressional consideration of a new farm bill, budget projections
showed a lower baseline budget for agriculture programs, mainly because high
commodity prices had caused projections of future farm program spending to fall
sharply below previous projections. The Congressional Budget Office’s (CBO’s)
March 2007 baseline budget served as the official benchmark for the FY2008 budget
resolution and for scoring the budgetary impacts of the new farm bill. The CBO
baseline assumed continuation of current farm bill policies under expected economic
conditions. The budget resolution set the actual spending constraints for the
agriculture committees as they drafted a new farm bill.
In May 2007, Congress approved the FY2008 budget resolution, which adopted
the baseline budget as the fiscal parameter for the next farm bill. It also included a
$20 billion reserve fund (above baseline) for new farm bill spending over five years.1
However, any new spending was required to be deficit-neutral, meaning that it would
have to be offset with equivalent reductions in other federal spending for existing
mandatory programs, or by raising revenues. Large increases in the market prices of
corn and other commodities since the summer of 2006 contributed to a lower March
2007 baseline for farm program spending. For example, the March 2007 baseline
projected spending for commodity support payments under current law to be $42.4
billion for the FY2008-FY2013 period, about $30 billion lower than actual spending
in the previous six years (Table 1). Baseline estimates for mandatory conservation
and nutrition programs for the next six years were higher compared to the previous
six years.
Table 1. 2002 Farm Bill Actual Spending (FY2002-FY2007 est.)
and the March 2007 CBO Baseline (FY2008-FY2013)
(outlays in $ millions)
Commodity
Food
Conservation
Exports
Total
Support
Stamps
Baseline (FY08-FY13)
42,446
26,496
2,005
225,845
296,792
Actual (FY02-FY07)
72,934
18,323
1,648
178,158
271,063
Baseline vs. Actual
-30,488
+8,173
+357
+47,687
+25,729
Source: Compiled by CRS from various Congressional Budget Office (CBO) baselines for 2007. The
FY2008-2013 baseline is as of March 2007 and does not include the cost of the 2008 farm bill. The report
section titled “Projected Cost” provides cost estimates of the 2008 farm bill.
1 Concurrent Resolution on the Budget for Fiscal Year 2008, Deficit-Neutral Reserve Fund
for the Farm Bill (H.Rept. 110-153, conference report, Section 307).

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CRS-3
Trade Negotiations and Commitments. The farm bill debate was also
influenced by obligations concerning the design and size of farm subsidies under the
World Trade Organization (WTO) Agreement on Agriculture, as well as by the U.S.
position in the Doha Round of multilateral negotiations.
Agreement in the Doha Round was expected to converge in 2007 with the
expiration of the 2002 farm bill, and to occur well before the June 30, 2007,
expiration of Trade Promotion Authority (TPA), which provides for expedited
congressional consideration of trade agreements. Some policymakers wanted a Doha
Round agreement so that the next farm bill could be made consistent with new farm
trade rules; others argued that the United States should not unilaterally change its
own subsidy programs ahead of any multilateral trade agreement. Progress on the
Doha Round stalled in 2006 and again in 2008, and criticisms and legal challenges
by some WTO member countries of current U.S. farm programs have continued.2
The Administration’s Policy Recommendations. In January 2007, the
Bush Administration released its own detailed recommendations for the farm bill that
aimed to substantially alter many aspects of the current commodity support system
and other existing farm bill programs.3 The Administration’s stated approach for
designing its 2007 farm bill recommendations was to take a “reform-minded and
fiscally responsible approach to making farm policy more equitable, predictable and
protected from challenge.”4 In part, this referred to the perceived need to more
evenly distribute federal program spending and benefits across a larger share of the
U.S. farm community, as well as the perceived need to modify current farm programs
to better comply with WTO obligations and limit future legal challenges from other
countries. Some of these same concerns were voiced in recommendations and
proposals by other organizations and interest groups.
The Administration’s proposed changes would have also faced potential funding
obstacles, given budget constraints for the 2008 farm bill. Nevertheless, President
Bush repeatedly threatened to veto any legislation that included certain revenue and
tax-related provisions being considered by Congress, as well as legislation that failed
to implement certain policy changes, including cuts in farm income subsidies, among
other policy issues and concerns.5 Also during the debate, the Administration
2 For more information, see CRS Report RL33144, WTO Doha Round: The Agricultural
Negotiations; CRS Report RL33697, Potential Challenges to U.S. Farm Subsidies in the
WTO; and CRS Report RL33853, Canada’s WTO Case Against U.S. Agricultural Support.
3 USDA, USDA’s 2007 Farm Bill Proposals, January 31, 2007, at [http://www.usda.gov/
documents/07finalfbp.pdf]. Reports and other related materials are at [http://www.usda.
gov/wps/portal/!ut/p/_s.7_0_A/7_0_1UH?navid=FARM_BILL_FORUMS]. Also see CRS
Report RL33916, The USDA 2007 Farm Bill Proposal: Possible Questions.
4 USDA, “Johanns Unveils 2007 Farm Bill Proposals,” Release No. 0020.07, January 31,
2007, at [http://www.usda.gov/wps/portal/usdahome].
5 Office of Management and Budget (OMB), Statement of Administration Policy, H.R. 2419,
at [http://www.whitehouse.gov/omb/legislative/sap/110-1/hr2419sap-r.pdf] (House, May 25,
2007) and [http://www.whitehouse.gov/omb/legislative/sap/110-1/hr2419sap-s.pdf] (Senate,
Nov. 6, 2007).

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CRS-4
recommended that Congress consider a one- or two-year extension of the current
farm bill and take up a new farm bill in the next session.6
On May 21, President Bush vetoed the conference agreement on H.R. 2419. A
second bill containing all 15 original farm bill titles, H.R. 6124, was again vetoed on
June 18. Among the reasons cited by the Administration for the veto were Congress’
inclusion of certain revenue and tax-related provisions in both bills. The
Administration was also concerned that the legislation did not include certain policy
reforms in farm income subsidies, and was concerned about possible incompatibility
with U.S. obligations under the WTO, among other policy issues. Doha Round
negotiations are continuing, however. If agreement is reached, then implementing
legislation could require changes in some farm bill programs and limit spending on
farm support.
Other Recommendations/Proposals. The 2007/2008 farm bill debate
differed from the 2002 debate in the number and scope of proposals seeking a range
of changes to existing programs, as well as the addition of new ones. Many of these
recommendations gained support within and outside Congress. In addition to the
Administration proposal, several organizations and interest groups released their own
farm bill recommendations. These included state organizations, national farm
groups, commodity associations, conservation and rural development organizations,
nutrition program advocates, and several non-traditional interest groups. These
policy recommendations represented diverse interests seeking objectives ranging
from maintaining current programs to substantially altering or eliminating them.
Some recommendations were incorporated into bills introduced by some Members
of Congress during the debate, who sought to directly challenge the existing farm
legislation and programs through comprehensive and broad-based proposed
legislative changes. Others in Congress were reluctant to change current programs
because they are strongly supported by the long-time beneficiaries.
Legislative Development
In anticipation of the 2007 farm bill, both the House and Senate Agriculture
Committees conducted hearings in Washington DC and across the country during
2006, and continued to hold hearings early in 2007.7 Early in 2007, the chairmen of
both the House and Senate Agriculture Committees indicated their intention to
complete work on a new farm bill prior to the August 2007 recess, with full
congressional action by September. 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 amendment to the House bill
(H.R. 2419).
6 For information about what could have happened if a new farm bill was not enacted and
various provisions of the 2002 farm bill were to expire, see CRS Report RL34154, Possible
Expiration of the 2002 Farm Bill.
7 Information on House and Senate Agriculture Committee hearings is at [http://agriculture.
house.gov/hearings/index.html] and [http://agriculture.senate.gov/Hearings/hearings.cfm].

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CRS-5
Conference negotiations were initially delayed because of differences between
committee leadership and the Administration, and also differences between the
House and Senate on how to resolve approaches to finance new spending above
baseline using tax provisions not usually associated with farm bills. During this time,
many provisions in the 2002 farm bill were set to expire in September 2007. Certain
provisions were extended until March 15, 2008, under the Consolidated
Appropriations Act for FY2008 (P.L. 110-161). Following this extension, Congress
approved a series of additional temporary extensions, including a one-month
extension and four consecutive short-term extensions lasting through May 23, 2008.8
Conferees began official meetings in April 2008.
On May 8, 2008, 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). 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. Concurrently, on May 14, both the House and Senate passed,
by voice vote, the final temporary extension of current law lasting until the earlier of
May 23, 2008, or the date the 2008 farm bill was signed into law.
On May 21, 2008, the Bush Administration vetoed the legislation. The House
voted to override the veto by a vote of 316-108 also on May 21, followed by a Senate
veto override by a vote of 82-13 the next day. On May 22, the 2008 farm bill was
enacted into law (P.L. 110-234). However, an enrolling error resulted in one title of
the bill (Title III, Trade) being omitted from the version that was sent to the White
House. The newly enacted law contained 14 of 15 farm bill titles. To resolve this
issue, both the House and Senate passed a version of the 2008 farm bill with all 15
original bill titles (H.R. 6124). The President vetoed H.R. 6124 on June 18, 2008.
That same day both the House (80-14) and the Senate (317-109) voted to override the
veto and the bill became law (P.L. 110-246), replacing P.L. 110-234. A timeline
showing a chronology of major events is provided at the end of this report.
Brief Overview of Provisions
The enacted 2008 farm bill contains 15 titles covering support for commodity
crops, horticulture and livestock production, conservation, nutrition, trade and food
aid, agricultural research, farm credit, rural development, energy, forestry, and other
related programs. It also includes tax-related provisions that make certain changes
to tax laws in order to offset new spending initiatives in the rest of the bill. The 2008
farm bill replaces many of the provisions of the 2002 farm bill (P.L. 107-171) and
guides most federal farm and food policies through 2012.
The 2008 farm bill includes five new titles that were not in the 2002 farm bill,
covering horticulture and livestock products, crop insurance and disaster assistance,
commodity futures, and various tax and trade provisions. The text box shows the
titles of the 2008 farm bill and briefly describes some title provisions.
8 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 (P.L. 110-231). Information about what could have happened if the
new farm bill was not enacted and provisions of the 2002 farm bill had expired is discussed
in CRS Report RL34154, Possible Expiration (or Extension) of the 2002 Farm Bill.

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CRS-6
The 2008 Farm Bill: Titles and Respective Programs and Policies
! Title I, Commodities: Income support to growers of selected commodities, including
wheat, feed grains, cotton, rice, oilseeds, peanuts, sugar, and dairy. Support is largely
through direct payments, counter-cyclical payments, and marketing loans. Other
support mechanisms include government purchases for dairy, and marketing quotas
and import barriers for sugar.
! Title II, Conservation: Environmental stewardship of farmlands and improved
management practices through land retirement and working lands programs, among
other programs geared to farmland conservation, preservation, and resource protection.
! Title III, Agricultural Trade and Food Aid: U.S. agriculture export and
international food assistance programs, and various World Trade Organization (WTO)
obligations.
! Title IV, Nutrition: Domestic food and nutrition and commodity distribution
programs, such as food stamps and supplemental nutrition assistance.
! Title V, Farm Credit: Federal direct and guaranteed farm loan programs. Also
specifies loan eligibility rules and other policies.
! Title VI, Rural Development: Business and community programs for planning,
feasibility assessments, and coordination activities with other local, state, and federal
programs, including rural broadband access.
! Title VII, Research: Agricultural research and extension programs, including
biosecurity and response, biotechnology, and organic production.
! Title VIII, Forestry: USDA Forest Service programs, including forestry
management, enhancement, and agroforestry programs.
! Title IX, Energy: Bioenergy programs and grants for procurement of biobased
products to support development of biorefineries and assist eligible farmers, ranchers,
and rural small businesses in purchasing renewable energy systems, as well as user
education programs.
! Title X, Horticulture and Organic Agriculture: A new farm bill title covering fruits,
vegetables, and specialty crops and organic agriculture.
! Title XI, Livestock: A new farm bill title covering livestock and poultry production,
including provisions that amend existing laws governing livestock and poultry
marketing and competition, country-of-origin labeling requirements for retailers, and
meat and poultry state inspections, among other provisions.
! Title XII, Crop Insurance and Disaster Assistance: A new farm bill title covering
crop insurance and assistance previously included in the miscellaneous title (not
including the supplemental disaster assistance provisions in the Trade and Tax title).
! Title XIII, Commodity Futures: A new farm bill title covering reauthorization of the
Commodity Futures Trading Commission (CFTC) and other changes to current law.
! Title XIV, Miscellaneous: Other types of farm programs and assistance not covered
in other bill titles, including provisions to assist limited-resource and socially
disadvantaged farmers, agricultural security, and other provisions.
! Title XV, Trade and Tax Provisions: A new title covering tax-related provisions
intended to offset spending initiatives for some programs, including those in the
nutrition, conservation, and energy titles. The title also contains other provisions,
including the new supplemental disaster assistance and disaster relief trust fund.

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CRS-7
For commodities (Title I), the enacted 2008 farm bill generally continues the
framework of the 2002 farm bill, but with changes to program eligibility criteria and
payment limitations, and adjustments to target prices and loan rates for some
commodities, covering the 2008 through 2012 crop years. The bill creates a new
Average Crop Revenue Election (ACRE) program beginning in crop year 2009. It
also adds new provisions to address horticulture and livestock issues, and creates two
new titles to address these sectors (Title X and Title XI). The bill provides
mandatory funding for specialty crop block grants and adds new provisions
supporting pest and disease programs, new funding for growth of farmers’ markets
and for transitioning producers to organic production, and price reporting and organic
data collection, among other provisions. New animal agriculture provisions include
changes to existing laws governing livestock and poultry marketing and competition,
and changes in country-of-origin labeling requirements and meat and poultry
inspections.
The nutrition title (Title IV) reauthorizes and increases funding for most farm
bill authorized programs. It increases benefits and makes more households eligible
under in the Food Stamp program, which the farm bill conferees have renamed the
Supplemental Nutrition Assistance program. The 2008 farm bill also provides new
spending to increase purchases of commodities for The Emergency Food Assistance
Program (TEFAP), expands the Fresh Fruit and Vegetable program, and adds funding
for the Senior Farmers’ Market Nutrition program (SFMNP). The bills’ international
food aid and trade provisions (Title III) reauthorize funding for USDA’s international
food aid export market development, export credits, and export guarantees, and also
address barriers to U.S. agriculture exports.
Under the conservation (Title II), energy (Title IX), rural development (Title
VI), and forestry titles (Title VIII), the 2008 farm bill reauthorizes, expands, and
modifies many existing programs, creates new programs and initiatives, and allows
some programs to expire. The bill also reauthorizes, expands, and modifies many of
the existing provisions under the research title (Title VII) by requiring the
reorganization of USDA’s research, extension, and economic agencies.
The 2008 farm bill expands borrowing opportunities under USDA’s Farm
Service Agency loan program (Title V). It also creates a new farm bill title to modify
crop insurance (Title XII), which provides significant savings to offset the cost of
new spending in other parts of the bill. Provisions in the bill also provide ongoing
disaster assistance (Title XV) and address agricultural security and animal quarantine
inspections (Title XIV).
The bill includes revenue and offsetting cost provisions that are outside the
jurisdiction of the agriculture committees. These provisions make certain changes
to tax laws that are intended to offset additional spending in the farm bill, and were
added by both chambers to comply with current pay-go budget rules (Title XV). The
2008 farm bill also includes the reauthorization of and modifications to the
Commodity Futures Trading Commission (CFTC).
The report section titled “Summary of the 2008 Farm Bill Provisions” provides
more detailed discussions of the major provisions in the final conference agreement
and in the House and Senate versions of the farm bill.

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CRS-8
Projected Cost
The Congressional Budget Office (CBO) estimates the total cost of the 2008 bill
(i.e., baseline plus new funding, using the March 2007 baseline) at $284 billion over
FY2008-FY2012 and $604 billion over FY2008-FY2017 (Table 2).9 The costs
discussed in this report are mandatory outlays that do not require appropriations
actions. The farm bill also authorizes discretionary programs that require
appropriators to allocate funds and thus are not reflected in the table.
Table 2 provides a title-by-title breakdown of CBO spending estimates for the
enacted 2008 farm bill, covering both FY2008-FY2012 and FY2008-FY2017. The
overwhelming share (more than 95%) of estimated total net outlays for programs
included in the farm bill is anticipated to be spent on programs and activities covered
by the nutrition (67%), the commodities (15%), the conservation (9%), and crop
insurance titles (8%). Of the $284 billion in projected total five-year net outlays for
programs under the farm bill — including revenue and cost-offset provisions in the
bill — about $42 billion in projected spending will support commodity crops, $189
billion will support the cost of food stamps and commodity assistance, $24 billion
will support conservation programs, and $22 billion will support crop insurance. For
FY2008-FY2012, the enacted bill also includes nearly $4 billion in new spending for
supplemental disaster assistance (included under Title XV). Another $10 billion is
expected to be spent on trade, horticulture and livestock production, rural
development, research, forestry and energy, and other programs.
Tax-related provisions — particularly from customs user fees and corporate
estimated tax payments in the bill — along with cost savings from some farm bill
programs, are expected to generate additional funding to offset any new spending.
CBO estimates that offsets in the bill total more than $10 billion over five years
(FY2008-2012) (Table 2), which includes tax-related provisions, and proceeds from
the credit, crop insurance, and commodity program titles. Disaster assistance and
programs under the nutrition and conservation titles account for the majority of the
new spending in the bill.
2008 Farm Bill Implementation
Many of the program changes included in the 2008 farm bill will require action
by USDA to develop regulations and guidelines. How USDA interprets these
changes and follows through with modifications at the program level will likely be
subject to additional scrutiny over the coming year, especially since many of these
legislative changes must be made by dates specified in the farm bill.
9 Estimates reflect the cost of the bills’ mandatory programs only. The bills also include
authorization of appropriations for discretionary programs not included in these estimates.
The March 2007 baseline is used because the House, the Senate, and the conferees
structured their provisions in relation to this baseline. If the March 2008 baseline were used,
the bill’s cost would be at least $4 billion over FY2008-FY2017.

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CRS-9
Table 2. CBO Estimated Costs for the
2008 Conference Agreement on the Farm Bill (FY2008-FY2012)
(outlays in million $)
FY2008-FY2012
FY2008-FY2017
Baseline
CBO Score
Total
Baseline
CBO Score
Total
(change)
(change)
Commodities (Title I)
43,354
(1,726)
41,628
87,179
(1,658)
85,521
Conservation (Title II)
21,392
2,720
24,112
50,699
4,000
54,699
Trade/Food Aid (Title III)
1,823
30
1,853
3,715
(78)
3,637
Nutrition (Title IV)a
186,005
2,897
188,902
397,131
9,218
406,349
Credit (Title V)
(1,046)
(378)
(1,424)
(2,321)
(306)
(2,627)
Rural Development (Title VI)
72
122
194
72
149
221
Research (Title VII)
290
31
321
1,290
(907)
383
Forestry (Title VIII)
0
38
38
0
45
45
Energy (Title IX)
41
602
643
43
836
879
Horticulture/Organic (Title X)
—
402
402
—
938
938
Livestock (Title XI)
—
1
1
—
1
1
Crop Insurance (Title XII)
25,718
(3,860)
21,858
52,743
(5,591)
47,152
Commodity Futures (Title XIII)
—
0
0
—
0
0
Miscellaneous (Title XIV)b
6,338
44
6,382
13,668
(138)
13,530
Disaster Assistance (Title XV)
—
3,807
3,807
—
3,807
3,807
Tax/Other (Title XV)
—
(4,798)
(4,798)
—
(10,429)
(10,429)
283,987
(66)
283,921
604,218
(107)
604,111
Source: Compiled by CRS using the Congressional Budget Office (CBO) March 2007 baseline and CBO score of the
conference agreement for H.R. 2419, the Food, Conservation, and Energy Act of 2008; also Senate Finance Committee,
Estimated Revenue Effects of the Conference Agreement for Title XV of H.R. 2419, Fiscal Years 2008-2018, 08-2 068 R10
(Preliminary), May 13, 2008. May not add due to rounding.
a. New outlays for the expanded Fresh Fruit and Vegetable program required in the nutrition title, $274 million
(FY2008-FY2012) and $1.020 billion (FY2008-FY2017), are not reflected in this table because they are effectively
offset with money from permanent appropriations under Section 32, mandated in Title XIV.
b. Excludes estimates for crop insurance provisions previously included as part of the farm bill’s miscellaneous provisions.
Requirements and/or regulatory guidelines will be needed to implement various
newly enacted or modified program provisions. For example, these include the new
revenue-based counter-cyclical program and new requirements on producer payment
limits (Title I); new mandatory country-of-origin labeling for certain livestock, and
poultry, and other products, as well as new state meat and seafood inspections (Title
XI); and new mandatory provisions for fruit and vegetable crops and organic
agriculture (Title X). The farm bill’s new Supplemental Agricultural Assistance
programs (Title XV) will require regulations to implement, with the biggest
implementation issue involving the timeliness of payments under the crop disaster
assistance portion of the programs. In addition, the farm bill’s research title (Title
VII) takes major step in consolidating programs and planning in USDA’s agricultural
research, education, and economics mission area, which will merge three existing
USDA agencies.
The farm bill’s nutrition title (Title IV) contains several provisions that create
new or replace existing programs affecting school nutrition that will require
regulatory guidelines and that will likely continue to be debated in the 111th Congress

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CRS-10
as part of the reauthorization of child nutrition programs. Among these programs are
a new fruit and vegetable program that replaces the existing pilot program to provide
for a new mandatory program for most states and schools and a “geographic
preference” rule for schools to buy local produce, among other programs and
initiatives. Other programs and provisions throughout the farm bill — covering
conservation, forestry, energy, and rural development, among others — will also
require new requirements and regulatory guidelines to implement.
In June, 2008, USDA announced its plans for developing implementation
structures and procedures for the 2008 farm bill.10 As part of this plan, USDA began
working on a timeline for various priority items and regulatory development,
identifying responsible implementing agencies and also cross-cutting issues, working
with the Office of Management and Budget (OMB) on the rulemaking process, and
identifying action items for immediate action, among other steps. Early media
reports, however, have USDA asserting it might need more money beyond the $50
million that Congress provided to implement the new farm bill;11 other reports
suggested that technology needs at USDA could slow down delivery of these enacted
program changes.12 These types of issues may resurface as USDA works to develop
regulations for implementing the 2008 farm bill.
Summary of the 2008 Farm Bill Provisions
The following is a discussion of the major provisions in the 2008 farm bill. As
with any omnibus bill covering many issues and laws, the 2008 farm bill may contain
technical inconsistencies that are likely to be rectified in a later law. The effects of
these inconsistencies are not reflected in the following side-by-side.
Following the discussion is a detailed side-by-side comparison summarizing the
major provisions in the 2008 farm bill and comparing the enacted bill provisions with
previous law and provisions in the House- and Senate-passed bills. USDA’s
Economic Research Service (ERS) also has published a side-by-side comparison of
the 2008 and the 2002 farm bills, as enacted.13
10 USDA, “USDA Implementation of the 2008 Farm Bill (as of June 17, 2008).” Provided
to House Agriculture Committee staff.
11 J. Hagstrom, “USDA Says It Needs More Cash to Implement Farm Bill,” National
Journal, June 26, 2008.
12 S. Wyant, “USDA Forges Ahead with Farm Bill Implementation,” High Plains Journal,
June 5, 2008, at [http://hpj.com/archives/2008/jun08/jun9/USDAforgesaheadwithfarmbill.
cfm].
13 USDA, ERS, The 2008 Farm Bill Side-By-Side Comparison, at [http://www.ers.usda.gov/
FarmBill/2008/].

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CRS-11
Title I: Commodity Programs
Grains, Oilseeds, and Cotton Support. The enacted 2008 farm bill
generally continues the farm commodity price and income support framework of the
2002 farm bill. It revises payment limitations by tightening some limits and relaxing
others, and adjusts target prices and loan rates for some commodities. It continues the
direct payment, counter-cyclical payment, and marketing loan programs for the 2008
through 2012 crop years. The enacted bill also creates a pilot revenue-based
counter-cyclical program beginning with the 2009 crop year. It also has a pilot
program for planting flexibility, restrictions on base acres developed for residential
use, and a new provision that eliminates benefits to farms with fewer than 10 acres.
For direct payments, the payment rates per commodity remain the same as under
the 2002 farm bill, but the overall formula contains a 2% reduction in direct
payments for crop years 2009-2011. This is accomplished by changing the ratio of
base acres on which direct payments are made from 85% to 83.3% of base acres. The
85% ratio is restored for the 2012 crop year to maintain baseline for the next farm bill
at a higher level. The reduction to 83.3% does not affect the counter-cyclical
payment formula. The final bill also adopts House and Senate provisions that
eliminate making advance direct payments in the 2012 crop year and thereafter. This
provision delays payment of 22% of the direct payment amount from December to
the following October, thus into a new fiscal year and allowing the farm bill to score
budget savings of about $1.1 billion in FY2012. Farmers will have to wait longer, but
will receive their full payment.
Support levels for counter-cyclical payments and marketing loans are adjusted
with many crops receiving notable increases, and support for cotton being reduced
slightly. Several commodity groups felt that their support levels were not high
enough relative to other commodities in the 2002 farm bill, and did not receive
counter cyclical support ever or as often (e.g., wheat, soybeans). For counter-cyclical
payments, six out of 10 commodities have an increase in their target price (wheat,
sorghum, barley, oats, soybeans and minor oilseeds), one has a small decrease
(cotton), and four are new in 2009 (dry peas, lentils, small chickpeas, large
chickpeas). For marketing loans, eight out of 20 commodities have an increase in
their loan rate (wheat, barley, oats, minor oilseeds, graded wool, honey, cane sugar,
beet sugar), two have a decrease (dry peas, lentils), and one is new in 2009 (large
chickpeas).
The 2008 farm bill does not change the “beneficial interest” rules, and thus
continues to allow farmers to lock in their loan deficiency payments (LDP) when
market prices are low, continue to own the commodity, and sell it at a future and
possibly higher market price. Policy makers want farmers to continue to have the
flexibility to market their commodities in response to market signals and benefit from
the program, but advocates for change point out that if farmers can sell their crop for
more than the support price, then government support should be unnecessary. The
Bush Administration had identified this as one of its priorities for commodity title
reform.
For the new revenue counter-cyclical option — the Average Crop Revenue
Election (ACRE) program — the final bill adopted the Senate approach, but with

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CRS-12
significant modifications. Compared to the Senate-passed bill, the ACRE program
starts a year earlier in 2009 with less change to its interaction with direct payments
and marketing loans. The House-passed farm bill offered a pilot revenue
counter-cyclical program based on national-level revenues, while the Senate-passed
bill offered a state-level revenue counter-cyclical pilot program beginning in 2010
that replaced direct payments with a “fixed payment” and offered only recourse
loans.
Farmers will choose either the traditional price-triggered counter-cyclical
program or the new revenue-based ACRE option. Participants in the ACRE program
will continue to receive direct payments, but at a 20% reduced rate. Participants will
also continue to be eligible for nonrecourse marketing loans, but with a 30% lower
loan rate. To receive an ACRE payment, two triggers need to be met. First, the
actual state revenue for a supported crop during the crop year must be less than the
state-level revenue guarantee amount. Second, an individual farm’s actual revenue
for a supported crop during the crop year must be less than the farm’s benchmark
revenue. Benchmark yields at the state and farm levels are Olympic averages
(dropping the highest and lowest price) of the most recent five years. Price
guarantees are averages of the marketing year price (or the marketing loan rate
reduced by 30%, if greater) for the most recent two years. If both triggers are met,
an individual farm will receive an ACRE payment that is based on the state-level
difference between actual revenue and the ACRE guarantee per acre multiplied by
a percentage (83.3% or 85% depending on the crop year) of the farm’s planted
acreage, but pro-rated based on the individual farm’s yield history compared to the
state’s yield history.
The White House has criticized the ACRE program because its two-year price
guarantee feature will incorporate the historically high recent market prices into the
guarantee, and consequently possibly require large payments to farmers if market
prices decline from their currently record high levels in 2007 and 2008. The White
House has argued that the CBO score does not reflect the magnitude of this
possibility because market prices in the baseline are assumed to remain high.
The 2008 farm bill also includes a pilot planting flexibility program for fruits
and vegetables for processing, while continuing the overall restriction on planting
fruits and vegetables on base acreage. The pilot program begins in 2009, and allows
farmers in seven midwestern states to plant base acres to cucumbers, green peas, lima
beans, pumpkins, snap beans, sweet corn, and tomatoes grown for processing. Their
base acres are temporarily reduced for the year (resulting in lower direct and
counter-cyclical payments), but restored for the next crop year. The states include
Minnesota (34,000 acres), Wisconsin (9,000 acres), Michigan (9,000 acres), Illinois
(9,000 acres), Indiana (9,000 acres), Ohio (4,000 acres), and Iowa (1,000 acres).
The farm bill includes a Senate provision that eliminates base acres on land that
had been subdivided into multiple residential units or other non-farming uses. Prior
rules have eliminated base only for land developed for nonagricultural commercial
or industrial use.
The farm bill also eliminates payments to farms with fewer than 10 base acres
of all crops, except for farms owned by socially disadvantaged or limited-resource

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CRS-13
farmers and ranchers. The acreage approach is different than a House provision
which set a minimum threshold of $25 per type of payment. The Senate had no
similar provision.
The bill requires USDA to reconcile social security numbers of program
recipients with a Social Security database twice a year to assure program
beneficiaries are alive, and to issue regulations describing how long a deceased
person’s estate may continue to qualify for program benefits. This is less specific
than the Senate provision, which specified a two-year period. This provision is in
response to a 2007 GAO report showing that farm commodity payments continue to
be paid to deceased farmers or their estates beyond the two-year regulation.
Payment Limits. Two types of payment limits exist. One sets the maximum
amount of farm program payments that a person can receive per year. The other sets
the maximum amount of income that an individual can earn and still remain eligible
for program benefits (a means test).
Regarding the limit on the amount of payments, the enacted 2008 farm bill
continues the $40,000 limit on direct payments and $65,000 limit on counter-cyclical
payments. The counter-cyclical limit will apply to both traditional and revenue
counter-cyclical payments. The final bill does not place any limit on marketing loan
benefits, and thus they are now unlimited. In the 2002 farm bill, marketing loan
benefits were limited to $75,000 per farm per year, but use of commodity certificates
and forfeiture were unlimited, thus creating equity issues.
The 2008 farm bill still allows doubling of those limits by having a spouse, but
eliminates the “three-entity rule” that formerly allowed an alternative means of
doubling by having multiple farms with different ownership arrangements. Along
with elimination of the three-entity rule, the conference agreement requires “direct
attribution” of program benefits to a living person. If a program payment cannot be
traced to a living person within four levels of ownership, the payment to the original
entity owning the farm is reduced proportionately.
Under the 2002 farm bill, the limit on payments was commonly regarded as
$360,000 per farm per year.14 Given the elimination of limits on the marketing loan
program, an equivalent comparison to the 2008 farm bill is difficult. The limit on
direct and counter-cyclical payments continues to be $210,000 per farmer couple per
year.15
Regarding the adjusted gross income (AGI) limit, the 2008 farm bill adopts a
slightly different approach than the 2002 farm bill or the House or Senate bills.
Formerly, the AGI limit had an exception if a certain proportion of AGI (e.g., 75%)
was earned from farming sources. The 2008 farm bill eliminates the exception and
creates two new measures of AGI: adjusted gross nonfarm income, and adjusted
gross farm income.
14 Calculated as follows: $40,000 + $65,000 + $75,000 = $180,000 (doubled to $360,000).
15 Calculated as follows: $40,000 + $65,000 = $105,000 (doubled to $210,000).

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CRS-14
First, if a three-year average of nonfarm AGI exceeds $500,000, then no
program benefits are allowed (direct, counter-cyclical and marketing loan). Second,
if a three-year average of farm AGI exceeds $750,000, then no direct payments are
allowed (but counter-cyclical and marketing loan benefits are allowed for these
higher-income farmers). Program participants can have income from both sources,
but the caps for each type are “hard” caps (that is, there are no exceptions to the cap
as with “soft” caps, except that the cap on farm AGI applies only to direct payments).
For example, if a full-time farmer has nonfarm AGI over $500,000, their program
payments are eliminated regardless of their farm income. A taxpayer’s AGI may also
be between $750,000 and $1.25 million and still receive program benefits if the
income is split in such a way to remain below the caps on farm and nonfarm income.
Moreover, the 2008 farm bill adopts a Senate provision that allows AGI of a married
couple to be divided as if separate tax returns were filed. While in principle this
provision could allow doubling of the AGI limits, the income needs to be legitimately
allocated between the spouses, likely by Social Security numbers or equivalent
identifiers.
For more information on the commodity programs above and payment limits,
see CRS Report RL34594, Farm Commodity Programs in the 2008 Farm Bill.
Dairy. Two federal programs that support milk prices and dairy farm income
were among the farm bill programs set to expire in 2007 — the dairy price support
program (DPSP) and the Milk Income Loss Contract (MILC) program. In the past
under the DPSP, USDA had been required to indirectly support the farm price of
milk, most recently at $9.90 per cwt. (100 pounds), which it has done by purchasing
surplus butter, nonfat dry milk, and cheese at specified minimum prices. The 2008
farm bill continues the DPSP through December 2012, but modifies the program by
specifying, in the law itself, the minimum purchase prices for these manufactured
dairy products. If net removals (essentially, USDA’s surplus purchases) for 12
consecutive months exceed statutory limits, USDA may reduce product purchase
prices, under the final law.
Under expiring law, the MILC program had paid participating farmers 34% of
the difference between a target price of $16.94 per cwt. and the monthly market price
for farm fluid milk in New England, when the market price is below the target. Per
farm payments had been limited to the first 2.4 million lbs. of annual milk
production. The enacted 2008 farm bill extends the program, but generally increases
the payment factor to 45% of the price differential for the period from October 1,
2008, through August 31, 2012, as proposed by the Senate. Conferees also increased
the production limit for payments to 2.985 million pounds, compared with a Senate
proposal that would have raised the limit to 4.15 million pounds. Furthermore, the
$16.94 per cwt. payment rate must be adjusted to reflect feed cost increases above
trigger levels specified in the enacted farm bill. CBO has estimated the total net
five-year increase in outlays for the bill’s key dairy provisions at $386 million.
A third ongoing federal dairy policy tool, federal milk marketing orders, require
dairy processors to pay a minimum price for farm milk depending on its end use (i.e.,
the type of product produced). Federal orders are permanently authorized, but a
number of issues were brought to the attention of Congress for the farm bill debate.
Dairy processors had been seeking a change in statute to exempt them from paying

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CRS-15
the federal milk marketing order minimum price whenever they forward contract
prices with dairy farmers. The 2008 farm bill authorizes farmers to voluntarily enter
into forward price contracts until September 30, 2012, with none to extend beyond
September 30, 2015. The legislation contains safeguards designed to ensure that
dairy farmers are not compelled by processors to participate in the program. The
final bill also establishes, subject to the availability of appropriations, a commission
to review and evaluate federal milk marketing order policies and procedures, and in
the meantime revises the formal hearing procedures used to consider amendments to
the orders.
Other dairy-related provisions in the enacted bill bring Alaska, Hawaii, the
District of Columbia, and Puerto Rico into the dairy research and promotion (check-
off) program; lower the promotion program’s assessment rate for imported products
to 7.5 cents per cwt.; extend the dairy indemnity program; and provide for new
USDA directives related to dairy product price reporting. For more information, see
CRS Report RL34036, Dairy Policy and the 2008 Farm Bill.
Sugar. The sugar program is designed to guarantee the price received by
growers and processors of sugar beets and sugarcane, but at no cost to the U.S.
Treasury. To accomplish this, USDA limits the amount of sugar that processors can
sell domestically under “marketing allotments” and restricts imports, in order to keep
market prices above support levels. This way, the incentive exists for sugar cane
processors and beet refiners to repay nonrecourse price support loans16 extended by
USDA rather than hand over processed sugar as payment (commonly referred to as
loan forfeitures).
To address the potential for a U.S. sugar surplus caused by unrestricted imports
from Mexico under the North American Free Trade Agreement (NAFTA) and from
other countries under other free trade agreements, and the resulting loan forfeitures,
the 2008 farm bill mandates a sugar-for-ethanol program. USDA is now required to
purchase U.S.-produced sugar roughly equal to excess imports, if necessary to
maintain market prices above support levels. The sugar purchased must then be sold
to bioenergy producers for processing into ethanol. USDA’s Commodity Credit
Corporation will provide open-ended funding for this program. Other provisions
increase the raw sugar and refined beet loan rates by 4%-5% by FY2012, mandate an
85% domestic market share for the U.S. sugar producing sector, and remove some
of the discretionary authority that USDA exercises to administer import quotas.
Though CBO scored some savings for the ethanol program, it projects the sugar
program will cost about $650 million over five years. The Bush Administration
opposed the program, arguing that instead of reform, its provisions “actually increase
government intervention to drive up sugar prices.” It asserted that the sugar-for-
16 A type of loan where farmers or processors pledge a commodity as collateral to obtain a
loan from the Commodity Credit Corporation (CCC) at a commodity-specific, per-unit loan
rate. The borrower may repay the loan, with interest, within a specified period and regain
control of the commodity. Alternatively, the commodity can be forfeited to the CCC with
no penalty if market prices fall below the loan rate at the end of the term. The government
takes no recourse beyond accepting the commodity as full settlement of the loan.

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CRS-16
ethanol component will operate at a “huge loss” as excess sugar supply is auctioned
off to ethanol processors.17
For more background, see CRS Report RL34103, Sugar Policy and the 2008
Farm Bill.
Title II: Conservation
The 2008 farm bill reauthorizes almost all 2002 farm bill conservation
programs, modifies several programs, and creates several new conservation
programs. CBO-estimated new spending on the conservation title — not including
estimated conservation-related revenue and cost-offset provisions in the bill — is
projected to increase by $2.7 billion over 5 years and $4.0 billion over 10 years.
Total mandatory spending (new spending plus baseline) for the conservation title is
projected at $24.3 billion over 5 years (FY2008-FY2012) and $55.2 billion over 10
years (FY2008-FY2017).
Conservation programs administered by USDA can be broadly grouped into
land retirement programs and so-called “working lands” programs. In general, land
retirement and easement programs take land out of crop production and provide for
program rental payments and cost-sharing to establish longer term conservation
coverage, in order to convert the land back into forests, grasslands, or wetlands.
Working lands programs provide technical and financial assistance to assist farmers
to improve land management practices. Major land retirement and easement
programs include the Conservation Reserve Program (CRP) and the Conservation
Reserve Enhancement Program (CREP), the Wetlands Reserve Program (WRP), the
Grasslands Reserve Program (GRP), and the Farmland Protection Program (FPP),
among other programs. Major working lands programs include the Environmental
Quality Incentives Program (EQIP), the (renamed) Conservation Stewardship
Program (CSP), the Agricultural Management Assistance (AMA) program, and the
Wildlife Habitat Incentives Program (WHIP), among others.
Changes to existing programs address eligibility requirements, program
definitions, enrollment and payment limits, contract terms, evaluation and ranking
criteria, and other administrative issues. In general, the conservation title includes
certain changes that expand eligibility and the delivery of technical assistance under
most programs to cover more broadly, for example, forested and managed lands,
pollinator habitat and protection, and identified natural resource areas, among other
expansions. Producer coverage across most programs is also expanded to include
beginning, limited resource, and socially disadvantaged producers; speciality crop
producers; and producers transitioning to organic production. The enacted bill also
creates new conservation programs to address emerging issues and priority resource
areas, and also new subprograms under existing programs.
17 White House, Office of the Press Secretary, “Fact Sheet: Congress’ Farm Bill Is Bad for
American Taxpayers,” May 9, 2008, available at [http://www.whitehouse.gov/news/releases/
2008/05/print/20080509.html].

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CRS-17
The majority of the agriculture and farmland conservation groups have
responded favorably to the expanded provisions and increased funding for programs
in the conservation title of the 2008 farm bill. However, a few wildlife groups have
expressed concern about changes that were made to some provisions during the
conference negotiations, which they perceive as providing fewer benefits for the
protection of wildlife and wildlife habitat. Among the concerns expressed by these
groups are the reduction in the CRP acreage enrollment cap, easing of the
requirements under the so-called sodsaver provision, limitations on the types of lands
eligible under WHIP, and the new permanent disaster fund, which could encourage
marginal land plantings, among other concerns.
Land Retirement/Easement Programs. The largest conservation program
in terms of total annual funding is the CRP. The enacted bill caps CRP enrollment
at 32 million acres, down from its previous cap of 39.2 million acres. The managers
report on the conference agreement states this reduction is “not ... an indicator of
declining or reduced support for CRP;” however, in other sections of the report
USDA is encouraged to assist producers who are transitioning from land retirement
to working lands conservation. The bill makes certain program changes, including
allowing for USDA to address state, regional, and national conservation initiatives;
expanding the program to cover beginning and socially disadvantaged farmers/
ranchers; allowing for certain types of managed grazing and installation of wind
turbines on enrolled lands (but at reduced rates); requiring that program participants
manage lands according to a conservation plan; requiring USDA to survey annually
the per-acre estimates of county cash rents paid to CRP contract holders; clarifying
the status of alfalfa grown as part of a rotation practice; and establishing cost-sharing
rates for certain types of conservation structures. The bill also modifies the pilot
program that allows for wetland and buffer acreage to enroll in CRP, subject to state
acreage and maximum size limitations.18
The bill increases the WRP maximum enrollment cap to over 3.014 million
acres (up from a previous cap of 2.275 million acres), and expands eligible lands to
include certain types of private and tribal wetlands, croplands, and grasslands, as well
as lands that meet the habitat needs of specific wildlife species. The 2008 farm bill
authorizes a new Wetlands Reserve Enhancement Program, to establish agreements
with states similar to that for CREP, which includes a Reserved Rights Pilot program
to explore whether reserving grazing rights is compatible with WRP. The bill makes
certain program changes, including changing the payment schedule for easements;
specifying criteria for ranking program applications; requiring that USDA conduct
an annual survey starting with FY2008 of the Prairie Pothole Region in the northern
Great Plains area; and requiring USDA to submit a report to Congress on long-term
conservation easements under the program.
For GRP, the enacted bill adopts a new acreage enrollment goal of an additional
1.2 million acres by 2012, with 40% of funds for rental contracts (10-, 15-, and 20-
year duration) and 60% for permanent easements. The bill modifies terms and
conditions of GRP contracts and easements to permit fire presuppression and
18 Acreage in CREP — a subprogram within CRP — would be excluded from the CRP
county acreage cap in order to encourage greater program participation.

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CRS-18
addition of grazing-related activities, such as fencing and livestock watering. It does
not include a Grassland Reserve Enhancement provision, as proposed in the House.
For FPP, the bill makes several technical changes to the program, covering the
program’s administrative requirements, appraisal methodology, and terms and
conditions, among other issues. The farm bill conferees did not to rename FPP as the
“Farm and Ranchland Protection Program,” as the program is often referred to by
USDA. The bill provides additional budget authority for FPP of $773 million
(FY2008-2012).
Working Lands Programs. EQIP and CSP are the two largest USDA
working lands programs, and received additional budget authority under the 2008
farm bill. The enacted bill did not adopt a Senate proposal that would have closely
coordinated CSP and EQIP under the so-called Comprehensive Stewardship
Incentives Program.
For EQIP, the enacted bill expands the program to cover practices that enhance
soil, surface and ground water, and air quality, and conserve energy; it also covers
grazing land, forestland, wetland, and other types of land and natural resources that
support wildlife. The bill sets aside 5% of EQIP spending for beginning farmers and
ranchers and 5% for socially disadvantaged farmers and ranchers, providing up to
90% of the costs of implementing an EQIP plan for these farmers. It also provides
payments to assist tribal or native corporation members, and producers transitioning
to organic production. The bill lowers the EQIP payment limit to $300,000 (down
from $450,000) in any six-year period per entity, except in cases of special
environmental significance, including projects involving methane digesters, as
determined by USDA. Projects with organic production benefits are capped at
$20,000 annually or $80,000 in any six-year period. The enacted bill retains the
requirement that 60% of funds be made available for cost-sharing to livestock
producers, including incentive payments for producers who develop a comprehensive
nutrient management plan.
The bill modifies EQIP’s Conservation Innovation Grants program to cover air
quality concerns associated with agriculture (including greenhouse gas emissions).
It also replaces the Ground and Surface Water Conservation Program within EQIP
with a new Agricultural Water Enhancement Program (AWEP) to address water
quality and quantity concerns on agricultural land, highlighting certain priority areas
and providing additional mandatory funds for the program. The bill provides
additional budget authority for EQIP of $3.4 billion (FY2008-2012).
For CSP, the enacted bill replaces the Conservation Security Program with a
new and renamed Conservation Stewardship Program (CSP).19 The new CSP,
beginning in 2009, will continue to encourage conservation practices on working
lands, but will be different than the former program in that it eliminates the three-tier
approach, removes 10-year contracts, and requires direct attribution of payments,
among other changes, thus requiring that USDA promulgate new rules for the
program. The bill sets a target of enrolling more than 13 million acres annually in
the new program, with individual producer payments limited to $200,000 per entity
19 Funding is made available for contract under the former CSP program.

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CRS-19
in any five-year period. The types of eligible lands are expanded to include priority
resource concerns, as identified by states; certain private agricultural and forested
lands; and also some nonindustrial private forest lands (limited to not more than 10%
of total annual acres under the program). Technical assistance will also be provided
to specialty crop and organic producers, along with pilot testing of producers who
engage in innovative new technologies. Supplemental payments may be available
to producers who engage in certain types of crop rotations. Program payments may
not be used for the design, construction, or maintenance of animal waste storage or
treatment facilities or associated waste transport or transfer devices.
Among other programs, the 2008 farm bill reauthorizes WHIP at current
funding levels, but limits program eligibility to focus on lands “for the development
of wildlife habitat on private agricultural land, nonindustrial private forest land, and
tribal lands,” thus potentially excluding some previously covered areas. It also
allows USDA to provide priority to projects that address issues raised by state,
regional, and national conservation initiatives. The bill raises the limit on cost-share
payments to 25% for long-term projects under WHIP and limits total payments to
$50,000 per year. The bill also authorizes increased funding for several programs,
including the Grassroots Source Water Protection Program and the Small Watershed
Rehabilitation Program; it also provides additional mandatory funding for AMA and
includes Hawaii as an eligible state under that program.
New Conservation Programs. The 2008 farm bill expands the range of
USDA conservation activities and creates several new programs, including a program
expanding conservation activities in the Chesapeake Bay region, a new state grants
program, a provision to limit production on native sod, and provisions promoting
market-based approaches to conservation.
The new Chesapeake Bay Watershed Program applies to all tributaries,
backwaters, and side channels, including watersheds, draining into the Chesapeake
Bay, but gives priority to the Susquehanna, Shenandoah, Potomac, and Patuxent
Rivers. The bill authorizes $438 million in total mandatory funding for FY2009-
FY2012. The Voluntary Public Access and Habitat Incentives Program (also referred
to as the “Open Fields” program) authorizes state grants to encourage landowners to
provide public access for wildlife-dependent recreation, subject to a 25% reduction
for the total grant amount if the opening dates for migratory bird hunting in the state
are not consistent for residents and non-residents. The bill provides $50 million in
mandatory funds for FY2009-FY2012 for the program. The so-called sodsaver
provision makes producers that plant an insurable crop (over 5 acres) on native sod
ineligible for crop insurance and the noninsured crop disaster assistance program for
the first five years of planting. The enacted 2008 farm bill states that this provision
may apply to virgin prairie converted to cropland in the Prairie Pothole National
Priority Area, if elected by the state. Finally, the bill includes a provision intended
to facilitate the participation of farmers and landowners in emerging environmental
services markets, such as water and air quality, habitat protection, and carbon storage.
The farm bill directs USDA to establish a framework for developing consistent
standards and processes for quantifying environmental services from the agriculture
and forestry sectors, but does not authorize funding for this effort.

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For more detailed information, see CRS Report RL34060, Conservation and
the 2008 Farm Bill. For more information on individual conservation programs and
past conservation funding, see CRS Report RL33556, Soil and Water Conservation:
An Overview. For more information on conservation programs and funding, see CRS
Report RL32940, Agricultural Conservation Programs: A Scorecard.
Title III: Trade
The 2008 farm bill reauthorizes, in Title III of the farm bill, programs that
provide international food aid and that promote U.S. commercial agricultural exports.
A relatively few export programs are terminated, while selected others receive
increased funding.
Food Aid. The United States is the world’s largest provider of food aid,
accounting for about 60% of total global food aid over the last decade. The bill
extends P.L. 480 food aid programs through 2012 and changes the title of the
underlying act from Agricultural Trade Development and Assistance Act to Food for
Peace Act. The bill also removes export market development as an objective of the
programs under the statute. P.L. 480 Title II is the largest U.S. food aid program.
The bill authorizes $2.5 billion to be appropriated annually for P.L. 480 Title II,
which provides U.S. commodities for emergency relief and non-emergency
(development) projects overseas. Were Congress to make the full appropriation, that
amount would represent a substantial increase over the average annual appropriation
of $1.2 billion in recent years. Although authorized in the farm bill, P.L. 480 Title
II is administered by the U.S. Agency for International Development (USAID).
The 2008 farm bill increases the amounts of P.L. 480 funds that can be allocated
to various food aid program activities. It increases the amount available for
administrative and distribution expenses of food aid project implementing
organizations from between 5% to 10% to between 7.5% and 13% of the funds
available for Title III. The bill also provides $4.5 million for FY2009-2001 to study
and improve food aid quality issues. The limit on funding available for pre-
positioning of commodities overseas to help expedite delivery is increased from its
2002 farm bill level of $2 million to $10 million each fiscal year. The bill also
reauthorizes a program of assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable, prepackaged foods and increases the
program’s funding from $3 million to $8 million each fiscal year. For monitoring
and evaluation of Title II non-emergency programs, the bill provides up to $22
million annually, not more than $8 million of which could be used for USAID’s
Famine Early Warning System (FEWS).
Both the House- and Senate-passed versions of the farm bill had contained hard
earmarks for non-emergency or development food aid. The farm bill retains an
earmark for development food aid (termed a “safe box”) beginning at $375 million
in FY2009 and ending at $450 million in FY2012. The safe box designation can only
be waived if the President determines that an extraordinary food emergency exists
and that resources available from the Bill Emerson Humanitarian Trust (see below)
have been exhausted, and if the President has submitted a request to Congress for
additional appropriations equal to the reduction in safe box and Emerson Trust levels.
Private voluntary organizations (PVOs) argued for the safe box, maintaining that it

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would give them assurances of supply of the commodities they rely on to carry out
development projects. The Administration opposed the safe box concept, saying that
it would deprive it of the flexibility needed to respond to emergency food aid needs.
The 2008 farm bill reauthorizes other smaller programs that provide food aid
to countries promoting the development of market-oriented agricultural sectors (Food
for Progress, FFP) or for school feeding and nutrition programs (the McGovern-Dole
International School Feeding and Child Nutrition Program). USDA administers
these smaller food aid programs. The bill reauthorizes FFP without lifting the cap
on CCC-funded transportation of commodities (an action that the Senate farm bill
had recommended), which effectively determines the volume of commodities that
can be provided. For the McGovern-Dole program, the bill provides an additional
$84 million of CCC funds to remain available until expended. The House-passed
bill, however, had proposed changing the funding basis of McGovern-Dole from
discretionary to mandatory and increasing spending from $140 million in FY2009 to
$300 million in FY2012. The final enacted bill also reauthorizes the Bill Emerson
Humanitarian Trust, providing a reserve of commodities and cash that can be used
to provide food aid in the event of unanticipated emergency food needs.
The final bill authorizes $60 million of CCC funds to carry out a pilot program
for local or regional purchase of agricultural commodities for food aid programs for
FY2009-2012. Under current law, the United States can use P.L. 480 funds only to
purchase U.S. commodities. The Administration’s proposal for local/regional
purchase, its only farm bill food aid proposal, would have provided for up to 25% of
the funds available for P.L. 480 Title II to be allocated to this purpose. In FY2007,
that would have amounted to up to $447 million. Local or regional purchases, the
Administration argued, would make the U.S. response to emergencies more timely
and cost-effective. Opponents of the proposal, however, maintained that it would
undermine the coalition of producers, shippers, and charitable organizations that
support U.S. food aid and would result in less U.S. food aid being provided.
Congress’s rejection of the local/regional purchase proposal is one of the reasons
listed by the Administration for its veto of the farm bill.
Trade. The 2008 farm bill extends USDA’s export market development
programs through FY2012. Although both the House- and Senate-passed farm bills
had proposed increased funding for the Market Access Program (MAP), the bill
maintains funding at the FY2007 level — $200 million annually. Similarly, the bill
maintains funding for the Foreign Market Development Program (FMDP) — $34.5
million annually — over the life of the bill. MAP promotes mainly high value farm
exports, while FMDP promotes mainly bulk or generic commodity exports. The bill
revises the export credit guarantee programs to bring them into compliance with a
WTO dispute settlement decision in the U.S.-Brazil cotton case that the United States
lost. Changes include elimination of the 1% cap on origination fees for export credit
guarantees and repeal of legislative authority for the supplier credit program (a short-
term credit guarantee) and the intermediate export credit guarantee program (3-10
years). The 2008 farm bill repeals authority for the Export Enhancement Program
(EEP), a direct export subsidy. The Administration requested repeal of EEP because,
it argued, the program had been inactive since 1995 and repealing it would be in line
with the U.S. effort to eliminate all export subsidies in ongoing multilateral trade
negotiations. Additional funding is provided for the Technical Assistance for

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Specialty Crops (TASC) program, which focuses on eliminating sanitary and
phytosanitary (food safety) barriers to U.S. agricultural exports.
Finally, the 2008 farm bill includes a provision requiring USDA to establish a
softwood lumber importer declaration program. Importers will report their lumber
imports, allowing data to be collected, verified, and reconciled, to assure
implementation of the U.S.-Canada Softwood Lumber Agreement. The Senate had
included a sense-of-the-Senate resolution encouraging the President to ensure lumber
imports consistent with that bilateral agreement.
For background information on farm bill trade and food aid programs, see CRS
Report RL33553, Agricultural Export and Food Aid Programs; for a discussion of
food aid and the farm bill, see CRS Report RL34145, International Food Aid and the
2008 Farm Bill; for a discussion of export programs and the farm bill, see CRS
Report RL34227, Agricultural Exports and the 2008 Farm Bill.
Title IV: Nutrition
The farm bill’s nutrition title accounts for well over half of all spending on
programs and activities covered by the bill, with the overwhelming majority
financing the Food Stamp program. The most significant issues in (and provisions
of) this title address the administration of, eligibility for, and benefits under the Food
Stamp program, funding for The Emergency Food Assistance Program (TEFAP), and
support for a program of making free fresh fruits and vegetables available in schools.
The enacted 2008 farm bill includes provisions that extend expiring authorities
in covered programs (generally, through FY2012) and increase spending for most
programs above what would be expected under prior law (above the “baseline”). The
nutrition title covers the Food Stamp program, TEFAP, the fresh fruit and vegetable
program in schools, the Senior Farmers’ Market Nutrition program, programs in lieu
of food stamps in Puerto Rico and American Samoa and on Indian reservations, rules
governing procurement of food for school meal programs, and various special
nutrition projects. Under previous law, these programs would cost nearly $40 billion
a year and be expected to grow to almost $50 billion in FY2017.
Total spending on these and other nutrition programs (including amounts offset
by other savings) is boosted by an estimated $3.2 billion (outlays) over 5 years
(FY2008-FY2012) and $10.2 billion over 10 years (FY2008-FY2017).
Supplemental Nutrition Assistance Program. The largest share of the
new spending mandated by the nutrition title results from changes that increase food
stamp benefits and establish new standards to make more households eligible under
the Food Stamp program. The farm bill also renames the existing program as the
Supplemental Nutrition Assistance Program (SNAP). Added food stamp spending
is estimated to total $2.3 billion over 5 years and $7.82 billion over 10 years — 73%
and 77%, respectively — of the title’s total new spending. The major food stamp
revisions:
! boost the minimum amount of income that is disregarded when
benefits are calculated by increasing and then indexing the “standard

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deduction,”resulting in a small, but growing, general benefit increase
in addition to regular increases for food-price inflation (around $4
a month in FY2009);
! increase and then index the minimum monthly benefit guarantee,
setting at it at 8% of the indexed maximum benefit for one person
(raising it from the current $10 to at least $14 in FY2009);
! disregard all income spent on dependent care when calculating
benefits (removing existing caps on this disregard); and
! substantially loosen eligibility rules relating to assets by indexing the
dollar limits on allowable liquid assets and disregarding all
retirement savings/plans and education savings.
Other provisions (1) continue inflation-indexed funding for nutrition assistance
grants (in lieu of food stamps) to Puerto Rico and American Samoa, (2) extend the
authority to operate a Food Distribution Program on Indian reservations, (3) simplify
some administrative processes (like reporting requirements), (4) expand the
availability of “transitional” benefits for those leaving public assistance programs,
(5) give the federal government a great deal more flexibility in imposing penalties on
retail food stores that violate food stamp rules, (6) add disqualification penalties for
those selling food bought with food stamp benefits and those using benefits to obtain
cash for container deposits, and (7) require greater federal scrutiny and oversight of
state efforts to “privatize” and expand the use of computers in their administration
of food stamps. The overwhelming majority of food stamp provisions represent
policy changes that were included in both the House and Senate bills (although
budget limits forced changes), or that were non-controversial. However, a number
of significant initiatives were not adopted, generally for policy rather than cost
reasons. These notably included a House proposal to place major limits on state
privatization of food stamp administration, and the Senate’s provisions loosening
eligibility rules for able-bodied adults without dependents and eventually permitting
the use of food stamp benefits to buy dietary supplements.
The Emergency Food Assistance Program. The nutrition title’s second-
largest share of new spending is for TEFAP, with estimated additional outlays of
$526 million over FY2008-FY2012 and $1.26 billion over FY2008-FY2017 (17%
and 12%, respectively, of the title’s total estimated cost). Closely following the
provisions of both the House and Senate bills, this provision in the final law greatly
increases mandatory funding of food purchases for the program to levels well above
the current requirement to acquire $140 million a year. Required commodity buys
are expanded by (1) an immediate infusion of $50 million in FY2008 and (2) raising
annual mandatory purchases to $250 million in FY2009 (indexed annually for food-
price inflation in later years).
Other Programs. Another major initiative in the nutrition title is a dramatic
increase in funding for the fresh fruit and vegetable program in schools. In FY2008,
approximately $20 million is available for this effort. The bill boosts mandatory
outlays by $274 million (FY2008-FY2012) and $1 billion (FY2008-FY2017),
representing some 10% of total new spending.
In addition to the changes in major programs noted above, the 2008 farm bill (1)
includes limited authority for schools in school meal programs to use geographic

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preference for locally grown and raised agricultural products when procuring food,
(2) increases mandatory funding for the Senior Farmers’ Market Nutrition program
(from $15 million a year to $20.6 million a year), (3) continues and expands support
for community food projects, (4) provides money for an initiative to use the
(renamed) Food Stamp program to promote health and nutrition, and (5) authorizes
(and, in some cases, funds) several projects related to food distribution efforts, school
gardens, “hunger-free community” initiatives, provision of whole grain products to
schools, and an urban food enterprise center.
In all but a very few cases (e.g., privatization and dietary supplement
provisions), there were no important policy differences between the House- and
Senate-passed versions of the farm bill. However, the bills diverged greatly in the
amount of new spending they proposed. For example, the FY2008-FY2012
estimated cost (outlays) of the House bill’s nutrition title was $4.2 billion versus the
Senate’s $5.3 billion. The bills also differed in funding priorities. The House
devoted 78% of new funding to new food stamp spending, 14% to extra funding for
TEFAP, and 7% to expanding the fresh fruit and vegetable program. In contrast, the
Senate bill provided 66% of its projected funding to new food stamp spending, along
with 10% for TEFAP and 21% for the fruit and vegetable initiative. The House and
Senate measures further differed in another matter. The House would have made its
policy amendments part of permanent law, producing a 10-year (through FY2017)
cost estimate of $11.5 billion. On the other hand, most of the Senate’s significant
revisions (e.g., increased food stamp benefits) were scheduled to terminate after
FY2012, resulting in a much lower 10-year cost estimate than the House or than
would have been the case with permanent changes (outlays totaling $6.7 billion).
Finally, the House and Senate bills provided for different extensions of expiring
authorities (like the authorization of appropriations for food stamps). The House
extended these authorities through FY2012, while the Senate opted for indefinite
extension in most cases. The final 2008 farm bill deals with funding level issues and
issues of allocation among programs as discussed earlier in this section, makes all
policy changes permanent law (as in the House version), and generally extends
expiring authorities through FY2012 (as in the House version).
For more information, see CRS Report RL33829, Domestic Food Assistance:
The Farm Bill and Other Legislation in the 110th Congress.
Title V: Credit
Farm bills usually contain provisions that modify the permanent statutes for two
government-related farm lenders. First, the USDA Farm Service Agency (FSA) is
a federal government lender of last resort that makes direct loans or guarantees loans
made by commercial lenders to farmers who cannot qualify for commercial loans.
Second, the Farm Credit System (FCS) is a private lender with a statutory
requirement, and limitation, to lend to farmers and certain farm-related businesses.
For more information, see CRS Report RS21977, Agricultural Credit: Institutions
and Issues.
Farm Service Agency. The 2008 farm bill (1) further prioritizes and
subsidizes Farm Service Agency lending for beginning and socially disadvantaged
farmers, (2) increases lending limits per individual to $300,000 (up from $200,000)

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for each of the direct farm ownership and direct operating loan programs, and (3)
extends and expands the guarantee program for seller-financed land loans. It creates
a conservation loan guarantee program for conservation projects. Regarding “term
limits” on guaranteed operating loans, which require farmers to graduate from FSA
credit to commercial lenders, the enacted 2008 farm bill extends the suspension of
the enforcement of “term limits” until December 31, 2010. It also creates a pilot
program of “individual development accounts” for beginning farmers and ranchers.
The Pigford Decision. The 2008 farm bill adopts a Senate provision that
would permit any claimant in the Pigford decision (a 1999 suit based on past
discrimination against minority farmers applying for USDA loans) who has not
received compensation to petition in civil court to obtain such compensation. The
total amount of payment and debt relief would be limited to $100 million. USDA
would be restricted from beginning a foreclosure if the borrower can show
foreclosure is related to a Pigford claim. A similar provision is also included in the
House-passed bill. See CRS Report RS20430, The Pigford Case: USDA Settlement
of a Discrimination Suit by Black Farmers.
Farm Credit System. In recent years, FCS has sought to expand its lending
authority beyond traditional farm loans and into more rural housing and non-farm
businesses. Commercial banks oppose expanding FCS lending authority, saying that
the availability of commercial credit in rural areas is not constrained, and that FCS’s
government-sponsored enterprise (GSE) status provides an unfair competitive
advantage. The enacted bill, like the House and Senate bills, does not allow any
expansion of Farm Credit System lending authority. It does address technical
changes in the payment of insurance premiums by FCS banks to the FCS Insurance
Corporation, and expands the list of borrowers eligible to own Bank for Cooperatives
voting stock. For more information, see CRS Report RS21977, Agricultural Credit:
Institutions and Issues.
Title VI: Rural Development
More than 88 programs administered by 16 different federal agencies target rural
economic development. The Rural Development Policy Act of 1980 (P.L. 96-355)
named USDA the lead federal agency for rural development. USDA administers
most of the existing rural development programs and has the highest average of
program funds going directly to rural counties (approximately 50%). Three mission
agencies, Rural Housing Service, Rural Business-Cooperative Service, and Rural
Utilities Service, administer the various loan and grant programs. More information
on these programs is in CRS Report RL31837, An Overview of USDA Rural
Development Programs.
The enacted 2008 farm bill reauthorizes and/or amends rural development loan
and grant programs and authorizes several new provisions. The bill adopts the
Senate measure to redefine “rural” with certain modifications, most notably, striking
the housing density criterion; however, it also directs USDA to conduct rulemaking
to develop restrictions on areas where housing density is greater than 200 units per
square mile. The bill does not change current law with respect to rural eligibility for
water and waste water disposal loans and grants and the community facility program.
The bill requires USDA to prepare a report assessing the various definitions of

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“rural” and the effect these various definitions have on programs administered by
USDA Rural Development.
Although both the House and Senate farm bills included mandatory funding for
several programs, the enacted 2008 farm bill reduced that spending, while in some
cases adding discretionary authorization. The enacted bill provides $194 million
(FY2008-FY2012) in mandatory spending for rural development programs. This is
a reduction from up to $550 million proposed in the House- and Senate-passed bills.
The bill provides mandatory spending for a one-time funding of backlogged water
and wastewater applications ($120 million); a Rural Microentrepreneur Assistance
program ($13 million in mandatory and $40 million annually in discretionary
spending); and Value-Added Product Grants ($15 million in mandatory spending).
The bill provides no mandatory funding for rural health care facilities or the
construction of child care facilities, although such funds were proposed by the
Senate.
Other provisions authorized in the enacted bill include support for locally
produced agricultural food products20 and grants for assisting employment
opportunities for disabled individuals in rural areas. The enacted bill also establishes
a new Rural Collaborative Investment Program and provides support for several
water and wastewater programs, and adopts the Senate proposed measure to
authorize a new interest rate structure for water and wastewater projects based on an
index of outstanding municipal obligations. The bill also adopts other Senate
provisions that authorize assistance to the Housing Assistance Council and
reauthorize the Rural Business Investment Program, as well as the appropriate
technology transfer to rural areas program (ATTRA). The bill deletes the House
measure reauthorizing the Rural Strategic Investment Program, and deletes both
House and Senate proposals providing guaranteed loans and grants to improve rural
health care facilities.
The enacted bill adopted several House and Senate provisions to assist rural
broadband development. The bill reauthorizes the Access to Broadband
Telecommunications Services in Rural Areas and grants to broadcasting systems;
directs the Secretary to develop a comprehensive national broadband strategy for
rural areas; and authorizes a new National Center for Telecommunications
Assessment. The bill also reauthorizes the Distance Learning and Telemedicine
program and includes a provision to make library connectivity a feature of the
program. However, the farm bill deleted various House- and Senate-passed
proposals and grant programs targeting broadband service.
The 2008 farm bill reauthorizes several rural development and grant programs,
including the Rural Economic Area Partnership; the National Rural Development
Partnership; SEARCH grants; and Rural Business Opportunity Grants. The bill also
reauthorizes the Delta Regional Authority and the Northern Great Plains Regional
Authority. In addition to these two reauthorized commissions, the bill creates three
new regional development authorities: the Southeast Crescent Regional Commission,
20 A provision in the Senate bill to authorize artisanal cheese centers was deleted in
conference.

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the Southwest Border Regional Commission, and the Northern Borders Economic
Development Commission (included under the Title XIV, Miscellaneous). The bill
also includes a provision directing USDA to conduct studies on rural transportation
issues and on rural electric power generation.
For more information, see CRS Report RL34126, Rural Development and
Provisions of the 2008 Farm Bill.
Title VII: Agricultural Research
Under the mission area called Research, Extension, and Economics (REE), the
USDA is responsible for conducting agricultural research at the federal level, and for
providing partial support for cooperative research, extension, and post-secondary
agricultural education programs in the states. The USDA’s intramural activities are
carried out by the Agricultural Research Service (ARS), Economic Research Service
(ERS), National Agricultural Statistics Service (NASS), and National Agriculture
Library (NAL). The federally funded extramural activities are managed by the
Cooperative State Research, Education, and Extension Service (CSREES). For more
information on these agencies’ activities, see CRS Report RL33327, Agricultural
Research, Education, and Extension: Issues and Background.
The issues confronting Congress concerning federal agricultural research can
be generally categorized under two topics: the structure of the management
organization and the level of research funding, both of which are long-standing
issues. Congress addressed the management issue in the 2002 farm bill by directing
USDA to examine and report on the structure of Agricultural Research Service
(ARS) management and the merits of establishing a National Institute of Food and
Agriculture (possibly modeled after the National Institutes of Health). With respect
to funding, there has long been a struggle under persistent budget constraints to
obtain increased appropriations even sufficient to keep up with inflation. With farm
commodity support as a model, the research community has attempted to obtain a
portion of its money in mandatory funds, with less reliance on discretionary
appropriations.
The USDA task force report, National Institute for Food and Agriculture: A
Proposal, was issued July 2004.21 The proposal was presented to Congress in
USDA’s 2007 Farm Bill Proposals.22 While the USDA task force was conducting
its review, the National Association of State Universities and Land-Grant Colleges
(NASULGC) developed a proposal called Create Research, Extension, and Teaching
Excellence for the 21st Century (CREATE-21).23 CREATE-21 was presented to
Congress as H.R. 2398 and S. 1094.
21 National Institute for Food and Agriculture: A Proposal, report of the Research,
Education, and Economics Task Force of USDA, July 2004. The report is available at
[http://www.ars.usda.gov/Research/Research.htm].
22 A link to the USDA farm bill research proposal is at [http://www.usda.gov/wps/portal/
!ut/p/_s.7_0_A/7_0_1UH?contentidonly=true&contentid=2007_Farm_Bill_Title7.xml].
23 Available at [http://www.create-21.org/].

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The research provisions in the individual House and Senate farm bills drew
heavily on the recommendations of the USDA and NASULGC.24
Research Management. The enacted 2008 farm bill represents an amalgam
of the research reorganization provisions in the House and Senate bills. The bill
creates an umbrella coordinating entity known as the Research, Extension, and
Education Office (REEO) in Office of the Under Secretary for Research, Education,
and Economics, and designates the Under Secretary as the Chief Scientist of USDA.
The new REEO will contain six divisions, each with its own director, representing
the broad range of subject areas addressed by agricultural research, extension, and
education programs.
The division directors are expected to work with the National Agricultural
Research, Extension, Education, and Economics Advisory Board to coordinate all of
the mission area’s activities across the Department, including intramural research
(ARS, ERS, NASS) and extramural research. CSREES, which currently is
responsible for managing extramural research, will be eliminated as an agency and
will become the National Institute of Food and Agriculture (NIFA). The conferees
intend NIFA to be an independent, scientific, policy-setting agency for the food and
agricultural sciences whose primary role is to administer competitive grants.
The enacted bill ends the National Research Initiative (NRI) and the Initiative
for Future Agriculture and Food Systems (IFAFS) as distinct competitive grant
programs, and establishes within NIFA an Agriculture and Food Research Initiative
(AFRI) to award competitive grants for fundamental and applied research, extension,
and education. The farm bill authorizes annual appropriations of $700 million for
AFRI, representing the combined level of authorized and mandatory funding that the
NRI and IFAFS were authorized to receive in previous years (appropriators have
prohibited the use of mandatory funds for IFAFS since 2002). The Under Secretary
(chief scientist) is required to submit a unified annual budget covering all activities
of the REEO and NIFA. The budget is to represent the balance of several factors,
including fundamental and applied research, funding for research capacity and
infrastructure, and increased support for Hispanic-serving agricultural colleges and
universities, for non-land grant colleges of agriculture, and for the University of the
District of Columbia.
Funding. Apart from mandatory funding of $230 million over five years for
a Specialty Crop Research Initiative, and $78 million in mandatory funding for the
Organic Research and Extension Initiative (included in the Horticulture and Organic
Agriculture title), the 2008 farm bill authorizes annual appropriation of such sums
as necessary for research, extension, and education programs, much the same as in
the previous farm bill. The House bill would have preserved mandatory funding of
$200 million for competitive grants under a merged NRI/IFAFS program for
FY2010-FY2012.
24 A more complete examination of the issues and legislative proposal is in CRS Report
RS22693, Agricultural Research, Education, and Extension in the 2007 Farm Bill.

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For more information, see CRS Report RL34352, Agricultural Research,
Extension, and Education: Farm Bill Issues.
Title VIII: Forestry
Farm bills typically deal with forestry both directly (usually in a forestry title)
and indirectly (for example, by including forests and forestry practices in more
general conservation programs). For a description of existing programs, see CRS
Report RL31065, Forestry Assistance Programs.
The enacted 2008 farm bill includes a forestry title (Title VIII) with several
sections addressing statewide forest resource planning. One section establishes
“national private forest conservation priorities” as (1) conserving and managing
working forest landscapes for multiple values and uses; (2) protecting forests from
threats and restoring appropriate forest types; and (3) enhancing public benefits from
private forests. Other sections require statewide assessments and strategies for forest
resources (with periodic revision). The bill creates a new Forest Resource
Coordinating Committee, requires the competitive allocation of a portion of state
assistance funding (based on how the statewide assessments and strategies fulfill the
national priorities), and allows up to 5% of state assistance funding for competitively
allocated innovative projects to address the national priorities. The bill also creates
a new community forest and open space conservation grant program for local entities
to protect forests threatened with conversion to non-forest uses, and creates an
Emergency Forest Restoration Program to provide assistance for restoration efforts
for forests damaged by natural disaster.
The 2008 farm bill extends, through 2012, the authorizations for the Office of
International Forestry, the Rural Revitalization Technologies Program, the
Renewable Resources Extension Act, and the Healthy Forest Reserves Program (with
minor changes) under the Healthy Forests Restoration Act of 2003 (P.L. 108-148, 16
U.S.C. Sec. 501, et seq.). The bill also amends existing law to restrict imports of
illegally logged wood. A separate subtitle — Cultural and Heritage Cooperation
Authority — provides for tribal-Forest Service cooperative relations and assistance.
The bill authorizes a competitive grant program to Hispanic-serving institutions to
increase diversity in forestry and related fields, and allows contract modification
options for certain Forest Service timber sales.
The enacted bill includes forestry-related provisions other than in the forestry
title. In Title II (Conservation), numerous programs were modified to include
forestry among approved conservation activities. In Title III (Trade), it requires
USDA to required to establish a softwood lumber importer declaration program, for
import data to be collected, verified, and reconciled to assure implementation of the
U.S.-Canada Softwood Lumber Agreement. In Title IX (Energy), two programs were
created to use woody biomass for energy production. In Title XV (Tax Provisions),
the agreement authorizes a new type of tax-exempt private bond whose proceeds are
used to finance forest conservation. It also modifies income tax deductions for
qualified timber gains, and includes several provisions to modernize and clarify the
tax treatment of timber real estate investment trusts (REITs).
See also CRS Report RL33917, Forestry in the 2008 Farm Bill.

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Title IX: Energy
Interest in renewable energy has grown rapidly since late 2005 due, in large part,
to a strong rise in domestic and international fuel prices and a dramatic acceleration
in domestic biofuel production (mostly ethanol). Many policymakers view
agriculture-based biofuels as both a catalyst for rural economic development and a
response to growing energy import dependence. Renewable energy’s role in the 2002
farm bill was contained in the farm bill’s energy title (Title IX), which concentrated
on grants, loan, and loan guarantees to foster research on agriculture-based renewable
energy, to share development risk, and to promote the adoption of renewable energy
systems. USDA’s Bioenergy Program (Sec. 9006 of P.L. 107-171) — funding for
which expired in FY2006 — had been the primary exception in that it provided
incentives to expand actual production of bioenergy.
The enacted 2008 farm bill expands and extends the provisions in the energy
section of the 2002 farm bill, and provides additional funding. The bill makes
numerous changes to the programs in the energy title. For example, the bill
combines the so-called Section 9006 program with the Energy Audit and Renewable
Energy Development Program under the new Renewable Energy for America
Program. The bill also creates new programs, including a Biomass Crop Assistance
Program to provide financial assistance to producers for growing biomass crops and
developing conversion facilities, and the Agricultural Bioenergy Feedstock and
Energy Efficiency Research and Extension Initiative to provide for competitive
grants to fund projects with a focus on supporting on-farm biomass crop research and
extension. This latter initiative is under the bill’s research title (Title VII) and
includes other bioenergy research programs.
The enacted bill continues programs for federal purchase of biobased products
under the Biobased Markets Program. The bill includes a Senate-proposed provision,
Biorefinery Assistance, which provides grants and loan guarantees for construction
and retrofitting of biorefineries for the production of advanced biofuels. The bill also
provides for grants for constructing demonstration-scale biorefineries, and loan
guarantees for the development and construction of commercial-scale biorefineries
that use technologies that are either pre-commercial or commercially available. The
bill provides for the repowering of existing biorefineries. It incorporates the Biomass
Research and Development Act of 2000 as part of the bill’s energy title and will fund
projects that address the critical need for integrated research and technology
development in the area of biofuels. It continues the Biodiesel Fuel Education
Program with an expanded list of entities targeted. Also, among the miscellaneous
provisions (Title XV), the ethanol production tax credit is lowered from 51 to 46
cents per gallon beginning in the first year following that in which ethanol production
of 7.5 billion gallons is achieved. Finally, the 2008 farm bill establishes the
cellulosic biofuel producer credit of $1.01 per gallon with special provisions for
small cellulosic ethanol producers.
Mandatory spending for the enacted bill’s agriculture-based energy programs
are projected at about $600 million (FY2008-FY2012) and $900 million (FY2008-
FY2017). This reflects a reduction compared to funding levels proposed in the
House- and Senate-passed bills. The House bill had authorized more than $3 billion
in new mandatory funding and more than $1 billion in discretionary funding for

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provisions of the energy title; the Senate bill authorized more than $1 billion in new
mandatory funding and more than $2 billion in discretionary funding. Both the
House and the Senate sought to fund these provisions through various revenue and
cost offset provisions in both bills, although in very different ways.
For more information on agriculture and bioenergy, see CRS Report RL34130,
Renewable Energy Policy in the 2008 Farm Bill; CRS Report RL32712, Agriculture-
based Renewable Energy Production; CRS Report RL33290, Fuel Ethanol:
Background and Public Policy Issues; and CRS Report RL33572, Biofuels
Incentives: A Summary of Federal Programs.
Many of the federal programs that currently support renewable energy
production in general, and agriculture-based energy production in particular, are
outside the purview of USDA and have legislative origins outside of the farm bill.
For example, the energy act signed into law in December 2007 (P.L. 110-140) covers
a wide range of topics with extensive attention to biofuels. In particular, it includes
a dramatic expansion of the renewable fuels mandate to 36 billion gallons by 2022
with carve-outs for biodiesel (1 billion gallons by 2012), cellulosic ethanol (16
billion gallons by 2022), and corn-starch ethanol (15 billion gallons by 2015).
Legislative proposals focused on renewable energy are summarized in CRS Report
RL33831, Energy Efficiency and Renewable Energy Legislation in the 110th
Congress.
Title X: Horticulture and Organic Agriculture
Sales of specialty crops, such as fruits, vegetables, and tree nuts, account for
nearly one-third of U.S. crop cash receipts and one-fifth of U.S. agricultural exports,
according to USDA. When floriculture, greenhouse, and nursery crop sales are
included, total specialty crops account for nearly 50% of all U.S. farm crop cash
receipts. However, specialty crop producers are not eligible for commodity income
support programs; also, few provisions in the farm bill’s 2002 conservation, trade,
research, and nutrition titles specifically addressed the specialty crop industry. For
more information, see CRS Report RL33520, Specialty Crops: 2008 Farm Bill
Issues.
The enacted 2008 farm bill contains a new Horticulture and Organic Agriculture
title (Title X). Among the key provisions is reauthorization of the specialty crop
block grant program established by the Specialty Crops Competitiveness Act of 2004
(P.L. 108-465). Under this program, each state receives a grant to support marketing
research and promotion to enhance the competitiveness of specialty crops grown in
the state. The 2004 act authorized appropriations to support the program (it received
$7 million in each of FY2006-FY2008). The enacted 2008 farm bill provides
mandatory funding in the amounts of $10 million for FY2008, $49 million for
FY2009, and $55 million annually in FY2010 through FY2012.
Another key provision affecting specialty crops includes mandatory funding of
$207 million through FY2012 to (1) establish cooperative agreements with state
departments of agriculture for early plant pest detection activities; (2) establish a
threat identification and mitigation program for foreign pests and diseases; and (3)
provide funds and technical assistance to specialty crop producers to develop audit-

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based certification systems to lessen the risks of pest emergence and movement. The
2008 farm bill also provides $20 million over four years to establish centers where
the specialty crop industry can obtain pest- and disease-free plant source material,
and authorizes appropriations to establish a Pest and Disease Revolving Loan Fund
to help local governments purchase equipment for the speedy removal of trees that
must be destroyed to stop the spread of a pest or disease infestation.
The enacted bill also contains several provisions to encourage the consumption
of fresh fruits and vegetables. One provides $33 million through FY2012 to expand
the existing Farmers’ Market Promotion Program, with a requirement that 10% of the
funds be used to make it possible for beneficiaries of federal nutrition programs to
use their electronic benefits cards at farmers’ markets. Another provides $5 million
to establish a Healthy Urban Food Enterprise Development Center designed to help
make affordable, nutritious fresh foods more readily available in low-income
communities and neighborhoods. Finally, the bill contains provisions to increase the
amount of fresh fruits and vegetables to be purchased for USDA nutrition programs
(see Title IV, Nutrition programs).
Another major component of Title X of the 2008 farm bill includes provisions
supporting organic agriculture. The bill reauthorizes the National Organic Cost-share
Program25 and provides a one-time transfer of $22 million in FY2008 (available until
expended) to help defray farmers’ costs for obtaining certification under the National
Organic Program; the amount that an individual farmer can receive in cost-share
assistance is raised from $500 to $750. The conference report also includes $5
million in mandatory funding for data collection on organically grown crops,
authorizes the appropriation of an additional $25 million over five years for that
purpose, and requires USDA to spend $3.5 million of the total to collect and
distribute up-to-date price data for the organic market. Another provision authorizes
increased appropriations to support the administrative work of the National Organic
Program office. Title II (Conservation) contains a provision making producers who
want to convert from conventional to organic farming eligible for cost-share and
technical assistance under the Environmental Quality Incentives Program.
See also CRS Report RL31595, Organic Agriculture in the United States:
Program and Policy Issues.
Title XI: Livestock
Competition and Marketing. Rapid changes have occurred in recent
decades in the structure and business methods of agriculture in general and of animal
agriculture in particular. Production and marketing have been moving toward fewer
and larger operations (sometimes referred to as consolidation or concentration), and
toward vertical integration, although the pace of these changes has varied widely
across the sectors. Debate has revolved around the impact of such changes on farm
prices, on the traditional system of independent, family-based agriculture, on
consumers, and on global competitiveness. Inherent in these questions is the role
25 In the 2002 farm bill, Congress established this program and provided a one-time transfer
of $5 million in mandatory funds to help transition farmers to organic production.

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government should play in monitoring and regulating agricultural markets. For more
information see CRS Report RL33958, Animal Agriculture: 2008 Farm Bill Issues.
The enacted 2008 farm bill contains a new title on Livestock (Title XI) that
scales back much of the language in the Senate-passed bill aimed at more closely
regulating livestock and poultry markets. For example, conferees deleted Senate
language that would have prohibited most major packers from owning, feeding, or
controlling livestock except within 14 days of slaughter. Also deleted was a Senate
provision to establish at USDA a new Special Counsel for Agricultural Competition
to investigate and prosecute violations of competition laws. Title XI of the enacted
2008 farm bill changes the Agricultural Fair Practices Act to alter the definitions of
associations and handlers. Not included in the enacted bill were various Senate
provisions intended to strengthen USDA’s oversight and enforcement of the act.
Also not included in the enacted bill were Senate provisions to give USDA stronger
enforcement authorities over live poultry dealers, among other provisions, under the
Packers and Stockyards Act (P&SA), which governs market competition in the meat
packing sectors. In their place, conferees added language requiring an annual report
detailing investigations into possible violations of the P&SA.
Also narrowed was Senate language governing contractual arrangements
between producers and integrators. Under the final farm bill, a poultry or swine
grower — a more limited definition of a contract producer than in the original Senate
bill — has the right to cancel a production contract within 3 business days of
execution, unless a later date is specified in the contract. In lieu of Senate language
limiting the conditions under which a contractor could require a producer to make
additional capital investments, the 2008 farm bill stipulates that the possibility of
such an investment be conspicuously stated in the contract. Several other provisions
retained, in somewhat modified form, in the enacted bill are intended to give
producers additional protections when disputing contract terms.
The enacted bill contains provisions intended to improve electronic reporting
under the Livestock Mandatory Price Reporting program administered by USDA’s
Agricultural Marketing Service (AMS), and to study the effects of requiring pork
processing plants to report wholesale pork price information.
Country-of-Origin Labeling. The 2002 farm bill (Sec. 10816 of P.L.
107-171) required retailers to provide country-of-origin labeling (COOL) for fresh
produce, red meats, peanuts, and seafood by September 30, 2004. Congress twice
postponed implementation for all but seafood; COOL now must be implemented by
September 30, 2008. Exempted from COOL are COOL-processed versions of these
products, and dining-out establishments. There has been vigorous debate over
whether this new program is desirable and necessary, its purposes, and its likely
impacts on farmers, processors, retailers, and consumers. Opponents of mandatory
COOL prefer a voluntary or market-driven program or at least some relaxation of the
COOL law’s compliance language. Supporters have continued to seek Congress’s
and USDA’s assurance that the mandatory program will be implemented
expeditiously. For a more detailed description of current law, requirements and
issues see CRS Report RS22955, Country-of-Origin Labeling for Foods.

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The 2008 farm bill implements the mandatory program on its current schedule,
and adds goat meat, chicken (which competes with red meats in the market and
which, unlike red meats, primarily are domestically produced), ginseng, pecans, and
macadamia nuts as covered commodities. However, for red meats, it creates several
new types of label categories that are intended to facilitate and simplify compliance
in specifying the country or countries of the products. For all covered commodities,
the bill also seeks to ease recordkeeping and verification requirements, and lower
noncompliance penalties.
Inspection, Registries, and Grading. The 2008 farm bill includes
provisions covering state-inspected meat and poultry, reportable meat and poultry
registries, and catfish grading and inspection, among other provisions.
Federal law has prohibited state-inspected meat and poultry plants from
shipping their products across state lines, a ban that many states and small plants
have long sought to overturn. Limiting state-inspected products to intrastate
commerce is unfair, many state agencies and state-inspected plants have argued,
because the 27 current state-operated programs by law already must be, and are, “at
least equal” to the federal system. Those who have opposed allowing state-inspected
products in interstate commerce argued that state programs are not required to have,
and do not have, the same level of safety oversight as the federal, or even the foreign,
plants. Both the House and Senate farm bills contained language to enable state-
inspected plants to sell products in interstate commerce, but under divergent policy
approaches.
Conferees adopted the Senate’s version, whereby state-inspected plants with 25
employees or fewer may opt into a new program that subjects them to federal laws
and oversight, for which they may gain the federal mark of inspection and the ability
to ship interstate. They would still be inspected by state employees, but these
employees would be under the supervision of a federal official who will oversee
training, inspection, compliance, and other activities. States would receive at least
60% reimbursement of their costs (compared with 50% under the existing federal-
state program provisions, which also continues). The Senate language was a
compromise package acceptable to both supporters and opponents of the House-
passed language, which among other things could have enabled many plants currently
under federal inspection to apply for state inspection and continue to ship interstate.
Opponents of the House option feared that many would seek to leave the federal
system if they believed they could receive more lenient oversight by the states. (For
background, see CRS Report RL34202, State-Inspected Meat and Poultry: Issues for
Congress.)
Conferees modified a provision in the Senate but not the House bill to require
USDA to establish “reportable food registries” for meat and poultry and their
products, whereby establishments would have to report whenever there is a
probability of such foods causing adverse health consequences. (The FDA
amendments legislation passed in 2007 (P.L. 110-85) establishes a similar registry
for FDA-regulated foods.) The enacted farm bill amends the meat and poultry laws
to require an establishment to promptly notify USDA if it has reason to believe that
an adulterated or misbranded product has entered commerce. Another adopted

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provision requires meat and poultry establishments to prepare and maintain written
recall plans.
Conferees modified Senate bill language to provide for two new USDA
initiatives affecting farm-raised domestic catfish: a voluntary grading program
administered through the Agricultural Marketing Service (AMS), and mandated
safety inspection of such products by Food Safety and Inspection Service (i.e.,
making catfish an amenable species along with the major meat and poultry species).
The House bill lacked this language. The final version provides for catfish grading
as a voluntary fee-based program, with producers of other seafood species eligible
to petition USDA for a similar service. Conferees agreed to extend mandatory
inspection to catfish processors, further authorizing FSIS to take into account the
conditions under which catfish are raised and transported. Although other fish and
shellfish are not covered by the final amendment, conferees noted in their
accompanying report that the Secretary of Agriculture has standing authority to add
species if appropriate.
The conference report states the intent of Congress “that catfish be subject to
continuous inspection and that imported catfish inspection programs be found to be
equivalent under USDA regulations before foreign catfish may be imported into the
United States.” Language in the bill itself instructs the Secretary to define the term
“catfish.” However, the 2002 farm bill (P.L. 107-171, Sec. 10806) had amended the
Federal Food, Drug, and Cosmetic Act to limit the acceptable definition to one family
of catfish (“Ictaluridae”), effectively prohibiting the labeling of certain Asian-grown
fish as catfish. So, the scope of the regulatory definition developed by the Secretary
of Agriculture could be of some interest.
Other Provisions. Conferees deleted two provisions in the Senate bill. One
provision would have established a Congressional Bipartisan Food Safety
Commission that would have been required to report, within one year, on
recommendations for modernizing food programs. The provision was intended to be
in response to recent food safety incidents linked to both imported and domestic
foods, which have brought into focus the question of whether there is a need for
changes in federal food safety oversight. At issue is whether the current system has
the statutory authorities, resources, and structural organization to protect consumers
from unsafe food. The second deleted provision would have prohibited FDA from
issuing a final risk assessment or from lifting the voluntary moratorium until
completion of newly mandated studies on the safety and market impacts of
introducing products from cloned animals. The provision was intended to be in
response to FDA’s request issued in late 2008 that companies refrain voluntarily
from marketing meat and milk from cloned animals or their progeny until it can
complete a final assessment of their safety (see CRS Report RL33334, Biotechnology
in Animal Agriculture: Status and Current Issues).
See also CRS Report RL33958, Animal Agriculture: 2008 Farm Bill Issues.
Title XII: Crop Insurance and Disaster Assistance Programs
The enacted 2008 farm bill contains a new title covering crop insurance and
disaster assistance programs (Title X). In addition, the enacted bill contains other

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provisions authorizing “Supplemental Agricultural Disaster Assistance,” provided
for under the bill’s Title XV (Trade and Tax Provisions).
Crop Insurance Program. The federal crop insurance program is designed
to protect crop producers from unavoidable risks associated with adverse weather,
weather-related plant diseases, and insect infestations. Although the scope of the
crop insurance program has widened significantly over the past 25 years, the
anticipated goal that it would replace ad hoc disaster payments has not been
achieved.
The crop insurance program is permanently authorized and hence does not
require consideration in the farm bill. Some policymakers expressed interest in
expanding the crop insurance program in the context of the farm bill and/or
complementing it with a permanent disaster payment program. However, many
viewed the crop insurance program as a potential target for program cost reductions,
where savings could be used to fund new initiatives in various titles of the farm bill.
The Administration and others contend that the private companies should be required
to absorb more of the program losses, and that the reimbursement rate for their
operating expenses needs to be reduced as a means of reducing federal costs. The
insurance companies and many farm groups are concerned that significant reductions
in federal support will negatively impact the financial health of the crop insurance
industry and possibly jeopardize the delivery of crop insurance, particularly in high-
risk areas.
Like the House- and Senate passed farm bills, the enacted 2008 farm bill
contains several revisions to the crop insurance program, many of which are designed
to reduce program costs. For the enacted crop insurance title, CBO has estimated net
savings of $3.9 billion over five years (FY2008-2012), compared with estimated
savings of $4.0 billion in the House bill and $3.7 billion in the Senate bill.
Approximately $2.8 billion of the estimated savings in the enacted bill (as in the
House and Senate bills) is achieved through changes in the timing of premium
receipts from farmers, and payments to the companies, which has no effect on overall
subsidies to participating farmers or insurance companies. A portion of the five-year
savings is realized by requiring insurance companies and farmers to share more in
program costs. The enacted bill increases the administrative fees paid by farmers for
catastrophic crop insurance coverage (and for participation in the separate noninsured
assistance program) to new levels that are higher than both the House and Senate
bills. The bill also reduces reimbursement rates to private companies for their
administrative and operating expenses by 2.3 percentage points. Conferees did not
include a House provision that would have required the insurance companies to share
more of their underwriting gains with the federal government.
Among its other provisions, the crop insurance title of the 2008 farm bill also
(1) requires USDA to ensure that premiums are established at a level so that total
premiums equal total indemnity payments over time; (2) allows USDA to
periodically renegotiate its standard reinsurance agreement, which contains the
obligations and financial terms of the relationship between the government and the
participating private crop insurance companies; (3) reduces available mandatory
funding for reimbursing private initiatives for the research and development of new
crop insurance products, and revises the manner in which reimbursements are

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provided; and (4) provides $36 million in mandatory funding over 10 years for
USDA to enhance its activities to reduce waste, fraud, and abuse within the crop
insurance program.
For more background information on crop insurance, see CRS Report
RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm Bill.
Other Disaster Assistance Programs. Title XII includes other disaster
assistance provisions, including the addition of the Small Business Disaster Response
and Loan Improvements Act of 2008 (Subtitle B). This subtitle makes significant
changes to the Small Business Administration’s (SBA) response to disaster. SBA
has responsibility for making disaster loans to individuals and non-agricultural
businesses (15 U.S.C. 636(b)). Hurricane Katrina, and the SBA response, which was
widely viewed as slow and flawed, prompted may suggestions from Members and
others on how to improve the disaster loan system. In general, this act requires SBA
to implement new planning, management oversight, and reporting procedures and
authorizes private lending to supplement the disaster loans that SBA makes directly.
SBA will continue to make six types of disaster loans for damages that were not
covered by insurance:
! Personal property disaster loans (maximum $40,000) are made to
individuals to replace or repair personal property such as cars and
furniture. Home owners and renters may apply.
! Real property disaster loans (maximum $200,000) are made to home
owners to repair or replace primary residences.
! Physical disaster loans (maximum $1.5 million) are made to
businesses and nonprofits, regardless of size, to repair or replace real
property, inventory, machinery, equipment, fixtures, etc. not covered
by insurance.
! Economic injury disaster loans (maximum $1.5 million) are made to
businesses to provide operating funds following a disaster. The act
makes nonprofits eligible for these economic injury disaster loans
and adds ice storms and blizzards to the list of disasters that can
trigger these loans.
! Military reservist economic injury disaster loans (maximum $1.5
million) are made to businesses to help them overcome problems
caused by a key employee being called to active military duty.
! GO Loans (Gulf Opportunity Pilot Loans, maximum $150,000),
which were made to certain small businesses affected by Hurricane
Katrina.
The act provides for SBA-guaranteed private disaster loans to supplement the
current system of direct SBA disaster loans. Lenders in the SBA’s Preferred Lender
Program would be eligible to participate. The SBA would guarantee 85% of loans,
subject to a maximum loan size of $2 million. Following a major disaster, the SBA
can also hire private contractors to assist in processing disaster loan applications.
In the event of a major disaster with extraordinary levels of damage or
disruption (such as Hurricane Katrina), SBA may make economic injury disaster

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loans to small businesses affected by the disaster regardless of location, but priority
may be given to small businesses within the disaster area. Usually, only businesses
within a disaster area are eligible.
The enacted farm bill also requires SBA to create an Immediate Disaster
Assistance Program, providing loans to small businesses affected by a disaster with
a maximum amount of $25,000 and an 85% SBA guarantee. SBA may defer
payments on existing disaster loans for up to four years for those taking out new
disaster loans. SBA is also required to assign at least 800 employees to the Office
of Disaster Assistance and 1,000 employees to the Disaster Cadre. In FY2007, the
SBA had 2,300 employees working on disaster loans; the Administration requested
921 employees for these functions for FY2009.
Title XIII: Commodity Futures
Title XIII of the enacted 2008 farm bill includes provisions that reauthorize
appropriations for the Commodity Futures Trading Commission (CFTC) for
FY2008-FY2013. The bill also makes several amendments to the Commodity
Exchange Act to (1) clarify CFTC jurisdiction over retail financial contracts based
on foreign currencies, (2) make the CFTC’s anti-fraud authority applicable to certain
off-exchange or over-the-counter derivatives contracts, (3) increase civil monetary
and criminal penalties for violations, (4) permit cross-margining of accounts in
security futures and options, and (5) establish CFTC regulation over certain
exchange-like trading facilities that are currently exempt from most regulation.
The last section is the most controversial, and deals with an issue — sometimes
referred to as the “Enron loophole” — that Congress has addressed several times
since 2000.26 These provisions of the bill would apply to electronic markets, other
than regulated futures exchanges, where contracts based on energy commodities,
metals, and other non-agricultural and non-financial commodities are traded. Under
current law, such markets (or electronic trading facilities) are required to notify the
CFTC of their operations, but are generally exempt from substantive regulation
provided that small public investors are not permitted to trade there.
Under the enacted bill, if the CFTC determined (according to criteria set forth
in the bill) that such an electronic market played a significant role in the price-setting
process (that is, if market participants looked to prices generated there as a guide to
their own transactions in the underlying commodities), the market would become
subject to a set of regulatory “core principles.” These principles amount to a
regulatory regime roughly comparable to (but somewhat less extensive than) CFTC
regulation of futures exchanges. Markets where “significant price discovery”
contracts are traded will be required to prevent price manipulation, monitor trading,
report daily figures on price and trade volume, guard against conflicts of interest, and
disclose large positions held by individual traders. Failure to comply with these
principles would give the CFTC grounds to suspend or revoke the market’s
registration.
26 For more information, see CRS Report RL34555, Speculation and Energy Prices:
Legislative Responses, and CRS Report RS22912, The Enron Loophole.

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Title XIV: Miscellaneous
The miscellaneous provisions in the 2008 farm bill cover various provisions that
are discussed in other sections of this report, including in the research, energy, and
rural development title sections. Below is a discussion of the first two subtitles,
covering socially disadvantaged and limited resource producers (Subtitle A) and
agricultural security (Subtitle B). The title also includes other miscellaneous
provisions (Subtitle C), some of which are not separately detailed in this report.
Socially Disadvantaged and Limited Resource Producers. Several
provisions in the enacted bill address outreach and assistance for socially
disadvantaged farmers and ranchers and limited-resource farmers and ranchers,
producers targeted by Section 2501 of the 1990 farm bill. Both the House- and
Senate-passed farm bills contained this provision. Other farm bill titles in the bill
contain similar provisions for the Section 2501 program, including conservation
(Title II), farm credit (Title V), rural development (Title VI), agricultural research
(Title VII), and crop insurance and disaster assistance (Title XII).
The enacted bill specifies that the Technical and Outreach Assistance Program
is to be used to enhance the coordination, outreach, education, and assistance
authorized under various USDA programs, and provides $75 million in mandatory
funding through FY2012. The bill requires USDA to document the number, location,
and economic contributions of socially disadvantaged and limited-resource farmers
and ranchers. As part of the efforts to address the needs of socially disadvantaged
and limited-resource farmers and ranchers, the bill also authorizes a new USDA
Office of Advocacy and Outreach to carry out the Section 2501 program, and also to
oversee the Minority Farmer Advisory Committee and carry out the functions of the
Office of Outreach and Diversity previously handled by the Office of Assistant
Secretary for Civil Rights. The bill also authorizes a new Office of Small Farms and
Beginning Farmers and Ranchers, to be subsumed into the Office of Advocacy and
Outreach.
The bill also addresses the so-called Pigford decision regarding the 1999 class
action discrimination suit against USDA. Both the House- and Senate-passed farm
bills contained this provision. The bill provides that Pigford claimants who have not
had their cases determined on the merits may, in a civil action, obtain such a
determination. The enacted bill further specifies steps USDA must take with regard
to settling the claim and provides mandatory funding of $100 million for FY2008 to
pay for successful claims.
Agricultural Security. The 2008 farm bill creates an Office of Homeland
Security within USDA to coordinate the department’s agroterrorism and agricultural
disease efforts and to be a liaison with other federal agencies. It also creates an
agricultural biosecurity communications center, and a competitive grant program for
agricultural biosecurity and countermeasures development.
Regarding foreign animal diseases, the enacted bill adopts the Senate provision
that would compel USDA to issue a permit to Department of Homeland Secutiry
(DHS) to possess and work with live foot and mouth disease (FMD) virus at the
proposed and yet-to-be-built National Bio- and Agro-Defense Facility, subject to

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compliance with USDA rules for handling “select agents.” For more information,
see CRS Report RL34160, The National Bio- and Agro-Defense Facility: Issues for
Congress.
Title XV: Trade and Tax Provisions
Supplemental Agricultural Disaster Assistance. During the
congressional debate on the omnibus farm bill, some policymakers wanted to make
permanent in the farm bill some level of disaster payments to supplement the crop
insurance program. Consequently, Title XV authorizes a new $3.8 billion trust fund
to cover the estimated cost of making agricultural disaster assistance available on an
ongoing basis over the next four years (FY2008-FY2011) through five new
programs.
The largest of the new farm disaster assistance programs authorized through the
2008 farm bill is a supplemental revenue assistance payment program for crop
producers. The program is designed to compensate eligible producers for a portion
of crop losses that are not eligible for an indemnity payment under the crop insurance
program (i.e., the portion of losses that is part of the deductible on the policy). An
eligible producer can receive a payment equal to 60% of the difference between a
target level of revenue and the actual total farm revenue for the entire farm. The
target level of revenue will be based on the level of crop insurance coverage selected
by the farmer, thus increasing if a farmer opts for higher levels of coverage. To be
eligible for a payment, a producer must be in or contiguous to a county that has been
declared a disaster area by either the President or the Secretary of Agriculture.
Payments are limited so that the disaster program guarantee level cannot exceed 90%
of what income likely would have been in the absence of a natural disaster.27
The producer also must have at least the minimum level of crop insurance
(CAT) coverage for insurable crops and participate in the NAP program for
non-insurable crops. The statute makes an exception for the 2008 crop year by
allowing producers who did not purchase crop insurance or NAP coverage in advance
to be eligible for the program, as long as they pay the equivalent administrative fee
for coverage within 90 days of enactment (September 16, 2008). Final payments for
2008 crop losses cannot be determined until late 2009, since a portion of the disaster
payment formula is based on the national average market price of the commodity,
which is determined at the end of the marketing year. For example, the 2008
marketing year for corn and soybeans ends September 30, 2009.
In addition to the supplemental crop revenue assistance payment program
described above, the 2008 farm bill also authorizes and funds four smaller disaster
programs also through FY2011: (1) Livestock Indemnity Payments, which
compensate ranchers at a rate of 75% of market value for livestock mortality caused
by a disaster; (2) Livestock Forage Disaster Program, to assist ranchers who graze
livestock on drought-affected pastureland or grazing land; (3) Emergency Assistance
27 For a more detailed description of the authorized payment formula, see the full page text
box in CRS Report RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm
Bill.

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for Livestock, Honey Bess and Farm Raised Fish, which will provide up to $50
million to compensate these producers for disaster losses not covered under other
disaster programs; and (4) the Tree Assistance Program, for orchardists and nursery
growers who can receive a payment to cover 70% of the cost of replanting trees or
nursery stock following a disaster (up to $100,000 per year per producer).
For more information on crop insurance and disaster assistance, see CRS Report
RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm Bill, and CRS
Report RS21212, Agricultural Disaster Assistance.
Tax Provisions. The tax portions (Title XV) of the 2008 farm bill differ
markedly from those in either the House- or the Senate-passed versions of the bill.
The enacted bill’s tax cuts consist of six groups, respectively containing provisions
for revenue, an agriculture disaster reserve fund, conservation, energy, agriculture,
and other provisions.
The single largest revenue-raising provision in the 2008 farm bill involves a
change in the estimated tax payment of corporations. This provision increases the
estimated tax payments of corporations due in the July through September 2012 by
a factor of 7.75 percentage points, and raises approximately $4.5 billion in revenue
through 2012. Other revenue-raising provisions limit the excess farming losses of
certain taxpayers and modify the incentives related to alcohol fuels.
The single largest revenue-losing provision in the 2008 farm bill pertains to the
agriculture disaster reserve fund, discussed above. Other revenue-losing provisions
reduce the depreciable life of race horses 2 years or younger (from seven years to two
years), increase the credit for cellulosic biofuel (to $1.01 per gallon less the amount
of small-producer ethanol credit claimed and the alcohol mixture credit claimed for
ethanol), and create a qualified forest conservation bond pilot program.
The enacted farm bill contains tax-related and revenue provisions related to
conservation, energy, and agricultural provisions, among other revenue provisions.
For example, among the conservation provisions, the bill authorizes a new type of
tax-exempt private bond whose proceeds are used to finance $500 million in forest
conservation; it also modifies income tax deductions for qualified timber gains.
The farm bill also includes several provisions which loosen the rules associated
with the tax treatment of timber real estate investment trusts (REITs). For example,
the allowable size of a REIT’s taxable REIT subsidiary was expanded to 25% of
REIT assets; the treatment of mineral royalty income as REIT qualified income; the
reduction in the excise tax safe-harbor holding period from 4 years to 2 years for
timber property sold to a qualified organization exclusively for conservation
purposes.
Although the enacted farm bill contains many of the provisions from the Senate-
passed bill and one of the two tax provisions in the House-passed bill, it does not
include the largest single revenue-raising provision from either bill. The Senate bill
included a provision designed to curtail the use of tax shelters, involving the
codification of the judicial “economic substance” doctrine that has developed in court

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cases related to tax shelters.28 In general terms, the doctrine denies the use of tax-
reducing items, such as tax deductions and credits, generated by transactions that do
not result in a meaningful change in the taxpayer’s economic position. The House
bill included a provision designed to curb what is sometimes termed “treaty
shopping” — situations where a foreign firm with a U.S. subsidiary routes payments
from its U.S. subsidiary through a subsidiary in another country so as to take
advantage of tax-treaty benefits. These provisions were not included as part of the
enacted 2008 farm bill.
28 For additional information on the tax provisions of the House and Senate farm bills, see
CRS Report RS22759, Farm Legislation and Taxes in the 110th Congress.

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Major Provisions of the Enacted 2008 Farm Bill (P.L. 110-246)
Compared with Previous Law and the House- and Senate-Passed Bills (H.R. 2419)
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
“Farm Security and Rural Investment Act
“Farm, Nutrition, and Bioenergy Act of
“Food and Energy Security Act of 2007”
“Food, Conservation, and Energy Act of
of 2002” [7 U.S.C. 7901 note]
2007” [Sec. 1]
[Sec. 1]
2008” [P.L. 110-246]
TITLE I: COMMODITIES
GRAINS, COTTON, PEANUTS, AND MINOR COMMODITIES (TITLE I)
Definitions
Agricultural Act of 1949: 7 U.S.C. 1421
Agricultural Act of 1949: same as prior
No comparable definition.
No comparable definition.
et seq. as in effect before the suspensions
law, with the addition of reference to
under the 1996 farm bill (Federal
suspensions under the 2002 farm bill and
Agricultural Improvement and Reform
Sec. 1502(b) of this act. [Sec. 1001(1)]
Act, P.L. 104-127). [7 U.S.C. 7901(1)]
No comparable definition.
No comparable definition.
Average Crop Revenue Payment: A
Average Crop Revenue Election
payment made to producers under
Payment: Adopts Senate definition, with
average crop revenue payment
change of name. [Sec. 1001(1)]
provisions. [Sec. 1001(1)]
Base acres: the number of base acres
Base acres: the number of base acres of
Base acres: same as House definition,
Base acres: Adopts House provision,
established by the owner of the farm
a covered commodity on a farm
except covered commodity does not
with special mention of peanuts. [Sec.
under base acre provisions. [7 U.S.C.
established under the 2002 farm bill (7
include peanuts. [Sec. 1001(2)] Same
1001(2)] Same definition for peanuts.
7901 (2)] Same definition for peanuts. [7
U.S.C. 7911, 7952), as in effect the day
definition for peanuts. [Sec. 1301(1)]
[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:
No comparable definition.
No comparable definition.
upland cotton 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
Counter-cyclical payment: a payment to
Counter-cyclical payment: a payment to
Counter-cyclical payment: Adopts
producers on a farm under counter-
producers on a farm under traditional or
producers on a farm under traditional
Senate provision. [Sec. 1001(3)] Same
cyclical payment provisions. [7 U.S.C.
revenue-based counter-cyclical payment
counter-cyclical payment provisions.
definition for peanuts. [Sec. 1301(2)]
7001(3)] Same definition for peanuts. [7
provisions. [Sec. 1001(4)]
[Sec. 1001(3)] Same definition for
U.S.C. 7951(2)]
peanuts. [Sec. 1301(2)]

---

CRS-44
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Covered commodity: wheat, corn, grain
Covered commodity: same as prior law,
Covered commodity: same as prior law,
Covered commodity: Adopts Senate
sorghum, barley, oats, upland cotton,
except adds peanuts. [Sec. 1001(5)]
except differentiates between long and
definition. Includes wheat, corn, grain
rice, soybeans, and other oilseeds. [7
medium grain rice, and adds pulse crops.
sorghum, barley, oats, upland cotton,
U.S.C. 7901(4)]
[Sec. 1001(4)]
long grain rice, medium grain rice, pulse
crops, soybeans, and other oilseeds. [Sec.
1001(4)]
Direct payment: a payment made to
Direct payment: same as prior law. [Sec.
Direct payment: same as prior law. [Sec.
Direct payment: Adopts Senate
producers on a farm under direct
1001(6)]
1001(5)] Same definition for peanuts.
definition. [Sec. 1001(5)] Same
payment provisions. [7 U.S.C. 7901(5)]
[Sec. 1301(3)]
definition for peanuts. [Sec. 1301(3)]
Effective price: for a covered
Effective price: same as prior law. [Sec.
Effective price: same as prior law. [Sec.
Effective price: Adopts Senate
commodity for a crop year, the price
1001(7)]
1001(6)] Same definition for peanuts.
definition. [Sec. 1001(6)] Same
calculated by USDA under counter-
[Sec. 1301(4)]
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)
Extra long staple cotton: same as prior
Extra long staple cotton: same as prior
Extra long staple cotton: Adopts House
is produced from pure strain varieties of
law. [Sec. 1001(8)]
law. [Sec. 1001(7)]
provision. [Sec. 1001(7)]
the Barbadense species or any hybrid of
the species, or other similar types of extra
long staple cotton having characteristics
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
No comparable definition.
No comparable definition.
Thursday 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
Loan commodity: same as prior law,
Loan commodity: same as House
Loan commodity: Adopts Senate
sorghum, barley, oats, upland cotton,
except differentiates feed barley and malt
definition, except does not differentiate
definition, but differentiates graded wool
extra long staple cotton, rice, soybeans,
barley; differentiates long, medium, and
types of barley; does not include small
and nongraded wool. Includes wheat,

---

CRS-45
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
other oilseeds, wool, mohair, honey, dry
short grain rice; and includes peanuts.
grain rice directly (although included in
corn, grain sorghum, barley, oats, upland
peas, lentils, and small chickpeas.
[Sec. 1001(10)]
definition of medium grain rice);
cotton, extra long staple cotton, long
[7 U.S.C. 7901(8)]
excludes peanuts which are treated
grain rice, medium grain rice, soybeans,
separately; and includes large chickpeas.
other oilseeds, graded wool, nongraded
[Sec. 1001(8)]
wool, mohair, honey, dry peas, lentils,
small chickpeas, and large chickpeas.
[Sec. 1001(8)]
No comparable definition.
No comparable definition.
Medium grain rice: includes short grain
Medium grain rice: Adopts Senate
rice. [Sec. 1001(9)]
definition. [Sec. 1001(9)]
Other oilseed: sunflower seed, rapeseed,
Other oilseed: sunflower seed, rapeseed,
Other oilseed: same as House definition,
Other oilseed: Adopts House definition.
canola, safflower, flaxseed, mustard seed,
canola, safflower, flaxseed, mustard seed,
except adds camelina. [Sec. 1001(10)]
[Sec. 1001(10)]
or, if designated by the Secretary, another
crambe, sesame seed, or, if designated by
oilseed. Crambe and sesame seed were
the Secretary, another oilseed. [Sec.
added by P.L. 108-7, Division A, Sec.
1001(11)]
763. [7 U.S.C. 7901(9)]
Payment acres: 85% of the base acres
Payment acres: same as prior law. [Sec.
Payment acres: same as prior law. [Sec.
Payment acres: Generally, 85% of base
for the covered commodity on which
1001(12)]
1001(11)] Same definition for peanuts.
acres for the covered commodity for
direct payments and counter-cyclical
[Sec. 1301(5)]
direct and counter-cyclical payments.
payments are made. [7 U.S.C. 7901(10)]
Exception: 83.3% of base acres for direct
Same definition for peanuts. [7 U.S.C.
payments only for crop years 2009-2011.
7951(6)]
[Sec. 1001(11)] Same definition for
peanuts. [Sec. 1301(5)]
Payment yield: in general, the yield
Payment yield: the yield established for
Payment yield: same as House
Payment yield: Adopts Senate
established under Sec. 1102 for a covered
direct payments and counter-cyclical
definition, except does not include
definition, and includes yields established
commodity. “Updated payment yield”
payments for a farm for a covered
peanuts. [Sec. 1001(12)] Same definition
for new commodities in Sec. 1102. [Sec.
means the yield established to calculate
commodity and peanuts under the 2002
for peanuts. [Sec. 1301(6)]
1001(12)] Same definition for peanuts.
counter-cyclical payments. [7 U.S.C.
farm bill as in effect on the day before
[Sec. 1301(6)]
7901(11) Same definition for peanuts. [7
the date of the enactment of this act.
U.S.C. 7951(7)]
[Sec. 1001(13)]
Producer: generally, an owner, operator,
Producer: same as prior law. [Sec.
Producer: same as prior law. [Sec.
Producer: Adopts Senate definition.
landlord, tenant, or sharecropper that
1001(14)]
1001(13)] Same definition for peanuts.
[Sec. 1001(13)] Same definition for
shares in the risk of producing a crop and
[Sec. 1001(7)]
peanuts. [Sec. 1301(7)]
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

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CRS-46
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
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
Pulse crop: Adopts Senate definition.
chickpeas, and large chickpeas. [Sec.
[Sec. 1001(14)]
1001(14)]
Secretary: the Secretary of Agriculture.
Secretary: same as prior law. [Sec.
No comparable definition.
No comparable definition.
[7 U.S.C. 7901(13)] Same definition for
1001(15)]
peanuts. [7 U.S.C. 7951(9)]
State: each of the U.S. States, the District
State: same as prior law. [Sec. 1001(16)]
State: same as prior law. [Sec. 1001(15)]
State: Adopts Senate definition. [Sec.
of Columbia, the Commonwealth of
Same definition for peanuts. [Sec.
1001(15)] Same definition for peanuts.
Puerto Rico, or U.S. territory/possession.
1301(8)]
[Sec. 1301(8)]
[7 U.S.C. 7901(14)] Same definition for
peanuts. [7 U.S.C. 7951(10)]
Target price: the price per unit of a
Target price: same as prior law. [Sec.
Target price: same as prior law. [Sec.
Target price: Adopts Senate definition.
covered commodity used to determine
1001(17)]
1001(16)] Same definition for peanuts.
[Sec. 1001(16)] Same definition for
the payment rate for counter-cyclical
[Sec. 1301(9)]
peanuts. [Sec. 1301(9)]
payments. [7 U.S.C. 7901(15)] Same
definition for peanuts. [7 U.S.C.
7951(11)]
United States: when used in a
United States: same as prior law. [Sec.
United States: same as prior law. [Sec.
United States: Adopts Senate definition.
geographical sense, all of the States. [7
1001(18)]
1001(17)] Same definition for peanuts.
[Sec. 1001(17)] Same definition for
U.S.C. 7901(16)] Same definition for
[Sec. 1301(10)]
peanuts. [Sec. 1301(10)]
peanuts. [7 U.S.C. 7951(12)]
No comparable definition.
United States Premium Factor: the
No comparable definition.
United States Premium Factor: Adopts
percentage by which the difference in the
the House definition. [Sec. 1001(18)]
U.S. loan schedule premiums for Strict
Middling (SM) 1 1/8-inch cotton and for
M 1 3/32-inch exceeds the difference in
the applicable premiums for comparable
international qualities delivered C/F Far
East. [Sec. 1001(19)]

---

CRS-47
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Base Acres and Program Yields
Base acres: for each covered commodity
Base acres: no choice of updating base
Base acres: same as House bill, except
Base acres: Adopts Senate provision.
on a farm, base acres are established by
acres or payment yields, except requires
provides for adjustment to include pulse
[Sec. 1101(a)-(c)(1)] Same provision for
the owner’s choice of (1) average of
USDA to provide base acre adjustments
crops, camelina, or newly designated
peanuts. [Sec. 1302(a)-(c)(1)]
1998-2001 plantings, or (2) the sum of
when a CRP contract ends. [Sec. 1101]
oilseed acreage. [Sec. 1101(a)-(c)(1)]
production flexibility contract acreage
Same provision for peanuts. [Sec.
under 1996 farm bill plus average oilseed
1302(a)-(c)(1)]
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:
Adopts Senate provision, with
suspend direct, counter-cyclical, and
modification. Reduction in base acres is
average crop revenue payments and
required for land that is “subdivided and
reduce base acres for land that is no
developed for multiple residential units
longer used for farming. Specifically,
or other nonfarming uses” unless the
land that has been developed for
producers “demonstrate that the land
“commercial or industrial use or has been
remains devoted to commercial
subdivided and developed for multiple
agriculture production or is likely to be
residential units or other nonfarming
returned to agricultural use.” [Sec.
uses” unless producer demonstrates the
1101(c)(2)] Same provision for peanuts.
land is devoted exclusively to agricultural
[Sec. 1302(c)(2)]
production. [Sec. 1101(c)(2)] Same
provision for peanuts. [Sec. 1302(c)(2)]
No comparable provision.
No comparable provision.
Requires USDA to track reconstitutions
Adopts Senate provision. [Sec.
of land and report to Congress to ensure
1101(c)(3)] Same provision for peanuts.
that commercial or residential land is not
[Sec. 1302(c)(3)]
eligible for payments. [Sec. 1101(c)(3)]
Same provision for peanuts. [Sec.
1302(c)(3)]
Direct payment yield: for each covered
No provision to change payment yield;
Payment yields: Establishes payment
Payment yields: Adopts Senate
commodity on a farm, a direct payment
payment yields are continued from prior
yields for designated oilseeds, camelina,
provision. [Sec. 1102]
yield is the yield established for the 1995
law by definition.
or pulse crops using 1998-2001 farm
crop; the yield for oilseeds is the average
yields, adjusted back to the national

---

CRS-48
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
from 1998-2001, adjusted back to the
average from 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.
Apportion base acres for long grain and
Adopts the Senate provision. [Sec. 1108]
medium grain rice based on average
acreage planted to each type of rice in the
applicable state during the 2003-2006
crop years to make counter-cyclical
payments. Producers may elect to use
farm-level planting history. Established
totals of base acres, payment acres, and
yields are maintained. [Sec. 1107]
Prohibition on Small Payments
No comparable provision.
No payments under $25: no payment
No comparable provision.
No direct, counter-cyclical, or average
will be made if the total direct payment
crop revenue election payments will be
to a producer on a farm for all covered
made on farms with less than a total of 10
commodities is less than $25. [Sec.
bases acres, except for limited resource
1102(e)] Same provision is made for
or socially disadvantaged farms.
counter-cyclical payments [Sec. 1102(e)],
Requires USDA to report on the effect of
and revenue-based counter-cyclical
the provision. [Sec. 1101(d)] Same
payments. [Sec. 1104(i)]
provision for peanuts. [Sec. 1302(d)]
Report language instructs USDA to allow
for aggregation of farms when
implementing the 10-acre requirement.
Producer Agreement
Eligibility for payments requires
Same as prior law. [Sec. 1105(a)]
Same as prior law, except adds provision
Adopts House provision, except adds a
producers to comply with conservation,
that land cannot be used for a residential
provision that land cannot be used for a
wetland, and planting flexibility
use (including land subdivided and
residential use, and requires farmers in
requirements; use base acres for
developed into residential units or other
the ACRE program to report production.
agricultural or conserving use, and not
nonfarming uses, or that is otherwise no
[Sec. 1106(a)] Same provision for
for nonagricultural commercial or
longer intended to be used in conjunction
peanuts. [Sec. 1305(a)]
industrial use; control noxious weeds and
with farming (like Sec. 1101(c)(2)).

---

CRS-49
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
maintain sound agricultural practices. [7
[Sec. 1105(a)] Same provision for
U.S.C. 7915(a)] Same provision for
peanuts. [Sec. 1305(a)] Same provision
peanuts. [7 U.S.C. 7955(a)]
for Average 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
Same as prior law. [Sec. 1105(b)-(e)]
Same as prior law, except adds that no
Adopts Senate provision, and applies to
in base acres. Requires acreage reports.
penalty shall be assessed for inaccurate
ACRE program. [Sec. 1106(b)-(e)] Same
Protects interests of tenants and
acreage report unless producers
provision for peanuts. [Sec. 1305(b)-(e)]
sharecroppers and provides for sharing of
knowingly and willfully falsified the
payments on a farm on an equitable
report. [Sec. 1105(b)-(e)] Same
basis. [7 U.S.C. 7915(b)-(e)] Same
provision for peanuts. [Sec. 1305(b)-(e)]
provision for peanuts. [7 U.S.C. 7955(b)-
Same provision for Average Crop
(e)]
Revenue program. [Sec. 1402(b)-(e)]
Planting Flexibility
Any crop may be planted on base acres,
Same as prior law, and incorporates
Same as prior law, but the exception
Adopts Senate provision. [Sec. 1107(a)-
except restrictions are placed on planting
peanuts as a covered commodity. [Sec.
allows planting mung beans and pulse
(c)] Same provision for peanuts. [Sec.
of fruits, vegetables, and wild rice on
1106(a)-(c)]
crops. [Sec. 1106(a)-(c)] Same provision
1306]
base acres. Penalties apply if the fruit
for peanuts. [Sec. 1306(a)-(c)] Same
and vegetable restriction is violated.
provision for Average Crop Revenue
Provides an exception for lentils, mung
program. [Sec. 1403(a)-c)]
beans, and 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
Same as House provision for traditional
Creates a pilot program beginning in
planting tomatoes for processing on up to
direct and counter-cyclical program
2009 in seven midwestern states to allow
10,000 base acres in Indiana during the
participants, except applies only to 2008
planting of fruits and vegetables for
2008-2012 crop years. Base acres
and 2009 crop years. [Sec. 1106(d)]
processing on base acres. Limited to
temporarily reduced for each acre of
No comparable provision for peanut base
cucumbers, green peas, lima beans,

---

CRS-50
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
tomatoes, and are protected for future
acres in Sec. 1306.
pumpkins, snap beans, sweet corn, and
use. [Sec. 1106(d)]
tomatoes grown for processing. States
For participants in the ACR program,
include Minnesota (34,000 acres),
establishes pilot Farm Flex project for
Wisconsin (9,000 acres), Michigan
planting any fruit or vegetable for
(9,000 acres), Illinois (9,000 acres),
processing on up to 10,000 acres in
Indiana (9,000 acres), Ohio (4,000 acres),
certain states (IL, IN, IA, MI, MN, OH,
and Iowa (1,000 acres). Base acres are
WI). Available for the 2010-2012 crop
temporarily reduced for the year, but are
years. Base acres temporarily reduced
restored for the next crop year and
for each acre of fruit and vegetables, and
“considered planted” for any future base
protected for future use. [Sec. 1403(d)]
calculations. [Sec. 1107(d)]
Direct Payments
Direct payments: available to producers
Direct payments: continues prior law to
Direct payments: continues prior law to
Direct payments: Continues prior law to
on farms with payment yields and base
cover 2008-2012 crop years. [Sec.
cover 2008-2012 crop years. Excludes
cover 2008-2012 crop years.
acres. Covers 2002-2007 crop years. [7
1102(a)]
participants in the ACR program under
[Sec.1103(a)] Direct payment for peanuts
U.S.C. 7913(a)] Direct payments for
Sec. 1401. [Sec. 1103(a)] Direct
continued separately [Sec. 1303(a)]
peanuts authorized separately. [7 U.S.C.
payments for peanuts authorized
7953(a)]
separately. [Sec. 1303(a)]
Direct payment rates:
Same as prior law; incorporates peanuts
Same as prior law, except differentiates
Adopts Senate provision. [Sec. 1103(b)]
Wheat, bushel (bu.), $0.52
into same section. [Sec. 1102(b)]
between long grain rice and medium
Separate provision for peanuts. [Sec.
Corn, bu., $0.28
grain rice (both at $2.35 per cwt.). [Sec.
1303(b)]
Grain sorghum, bu., $0.35
1103(b)] Peanuts, ton, $36 [Sec.
Barley, bu., $0.24
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
Same as prior law. [Sec. 1102(c)]
Same as House provision. [Sec. 1103(c)]
Same as prior law, except a ratio of
85% of base acres, times direct payment
Separate provision for peanuts [Sec.
83.3% of base acres is used for crop
yield. [7 U.S.C. 7913(c)] Same formula
1303(c)]
years 2009-2011. [Sec. 1103(c)] Separate
for peanuts. [7 U.S.C. 7953(d)]
provision for peanuts. [Sec. 1303(c)]
Timing: Generally paid after October 1
Timing: Same as prior law, except (1)
Same as House provision. [Sec. 1103(d)]
Adopts Senate provision. [Sec. 1103(d)]
of the calendar year of the year of
applies to peanuts in the same section,
Separate provision for peanuts [Sec.
Separate provision for peanuts [Sec.

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CRS-51
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
harvest. Advance payments up to 50%
and (2) the 22% advance payment option
1303(d)]
1303(d)]
(later reduced to 22% by P.L. 109-171)
applies only to crop years 2008-2011. No
beginning as early as December 1 of the
advance payment for crop year 2012 and
calendar year before harvest, at the
thereafter. [Sec. 1102(d)]
option of the 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
Counter-cyclical payments: same as
Counter-cyclical payments: same as
Counter-cyclical payments: continues
effective price for a covered commodity
prior law, except it covers 2008-2012
prior law, except it covers 2008-2012
prior law to cover 2008-2012 crop years.
is less than the target price, a payment is
crop years. [Sec. 1103(a)]
crop years. Excludes participants in the
[Sec.1104(a)] Counter-cyclical payments
available to producers on farms with
ACR program. [Sec. 1104(a)] Counter-
for peanuts continued separately [Sec.
payment yields and base acres. Covers
cyclical payments for peanuts authorized
1304(a)]
2002-2007 crop years. [7 U.S.C.
separately. [Sec.1304(a)]
7914(a)] Counter-cyclical payments for
peanuts authorized separately. [7 U.S.C.
7954(a)]
Effective price: the higher of (1) the
Same as prior law, except applies to
Same as prior law, except computed for
Adopts Senate provision. [Sec. 1104(b)]
national season average market price or
peanuts and clarifies that effective price
rice using prices by type of rice. [Sec.
Adopts Senate provision for peanuts.
(2) national average loan rate plus the
for rice and barley are to be computed
1104(b)] Same as prior law for peanuts.
[Sec. 1304(b)]
direct payment rate. [7 U.S.C. 7914(b)]
notwithstanding separate loan rates by
[Sec. 1304(b)]
Same provision for peanuts. [7 U.S.C.
type of rice or barley. [Sec. 1103(b)]
7954(b)]
Target prices for 2004-2007 crop years:
Target prices:
Target prices:
Target prices:
Wheat, bu., $3.92
Wheat, bu., $4.15
Wheat, bu., $4.20
2008 crop year (same as prior law,
Corn, bu., $2.63
Corn, bu., $2.63
Corn, bu., $2.63
except cotton lower) [Sec. 1104(c)(1)]
Grain sorghum, bu., $2.57
Grain sorghum, bu., $2.57
Grain sorghum, bu., $2.63
Wheat, bu., $3.92
Barley, bu., $2.24
Barley, bu., $2.73
Barley, bu., $2.63
Corn, bu., $2.63
Oats, bu., $1.44
Oats, bu., $1.50
Oats, bu., $1.83
Grain sorghum, bu., $2.57
Upland cotton, lb., $0.7240
Upland cotton, lb., $0.70
Upland cotton, lb., $0.7225
Barley, bu., $2.24
Rice, cwt., $10.50
Rice, cwt., $10.50
Long grain rice, cwt., $10.50
Oats, bu., $1.44
Medium grain rice, cwt., $10.50
Upland cotton, lb., $0.7125
Soybeans, bu., $5.80
Soybeans, bu., $6.10
Soybeans, bu., $6.00
Long grain rice, cwt., $10.50
Other oilseeds, lb., $0.1010
Other oilseeds, lb., $0.1150
Other oilseeds, cwt., $12.74
Medium grain rice, cwt., $10.50
Peanuts, ton, $495 [Sec. 1103(c)]
Dry peas, cwt., $8.33
Soybeans, bu., $5.80
Lentils, cwt., $12.82
Other oilseeds, cwt., $10.10

---

CRS-52
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
(Different target prices applied to 2002-
Small chickpeas, cwt., $10.36
Peanuts, ton, $495 [Sec. 1304(c)]
2003 crop years). [7 U.S.C. 7914(c)]
Large chickpeas, cwt., $12.82
Peanuts, ton, $495 [7 U.S.C. 7954(c)]
[Sec. 1104(c)]
2009 crop year (same as 2008, except
Peanuts, ton, $495 [Sec. 1304(c)]
four new crops: dry peas, lentils, small
and large chickpeas) [Sec. 1104(c)(2)]
Wheat, bu., $3.92
Corn, bu., $2.63
Grain sorghum, bu., $2.57
Barley, bu., $2.24
Oats, bu., $1.44
Upland cotton, lb., $0.7125
Long grain rice, cwt., $10.50
Medium grain rice, cwt., $10.50
Soybeans, bu., $5.80
Other oilseeds, cwt., $10.10
Dry peas, cwt., $8.32
Lentils, cwt., $12.81
Small chickpeas, cwt., $10.36
Large chickpeas, cwt., $12.81
Peanuts, ton, $495 [Sec. 1304(c)]
2010-2012 crop years (increases for
wheat, sorghum, barley, oats, soybeans,
and minor oilseeds) [Sec. 1104(c)(3)]
Wheat, bu., $4.17
Corn, bu., $2.63
Grain sorghum, bu., $2.63
Barley, bu., $2.63
Oats, bu., $1.79
Upland cotton, lb., $0.7125
Long grain rice, cwt., $10.50
Medium grain rice, cwt., $10.50
Soybeans, bu., $6.00
Other oilseeds, cwt., $12.68
Dry peas, cwt., $8.32
Lentils, cwt., $12.81
Small chickpeas, cwt., $10.36
Large chickpeas, cwt., $12.81
Peanuts, ton, $495 [Sec. 1304(c)]

---

CRS-53
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Payment amount = target price minus
Same as prior law. [Sec. 1103(d)-(e)]
Same as prior law. [Sec. 1104(d)-(e)]
Adopts Senate provision. [Sec. 1104(d)-
effective price (if the difference is greater
Same formula for peanuts. [Sec. 1304(d)-
(e)] Adopts Senate provision for peanuts.
than 0), times 85% of base acres, times
(e)]
[Sec. 1304(d)-(e)]
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
Timing: generally, the later of (1) the
Timing: generally, beginning October 1
Adopts Senate provision, with
12-month marketing year. Advance
end of the 12-month marketing year, or
after the end of the marketing year.
modification. [Sec. 1104(f)] Same
payments are available; for the 2007 crop
(2) October 1 of the same calendar year
Advance payments same as in House bill.
provision for peanuts. [Sec. 1304(f)]
year, one advance payment of 40% of
as the end of the marketing year.
[Sec. 1104(f)] Same provision for
expected payment after first 6 months of
Advance payments for 2008-2010 crop
peanuts. [Sec. 1304(f)]
marketing year (for 2002-2006, two
years: one advance payment of 40% after
advance payments, each 35% of the
first 6 months of marketing year. No
expected payment, in October of harvest
advance payments after 2010 crop year.
year, and after February 1 of the next
[Sec. 1103(f)]
calendar year). [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
Average Crop Revenue (ACR)
Average Crop Revenue Election
Payments (RCCP): an alternative to
program: an alternative to traditional
(ACRE) program: Adopts Senate
traditional counter-cyclical payments.
direct payments, counter-cyclical
approach, with significant modifications.
Covers crop years 2008-2012. Producers
payments, and nonrecourse marketing
An alternative to traditional counter-
have one opportunity to elect RCCP
loans for covered commodities and
cyclical payments for covered
option soon after enactment. Traditional
peanuts. Producers have one opportunity
commodities and peanuts, with a
counter-cyclical payments remain the
to elect ACR option: for 2010-12 crop
reduction in direct payments and
default if no election is made. [Sec.
years, 2011-12. or 2012. Traditional
marketing loan rates for participants.
1104(a)]
programs remain the default if no
Producers can enter any year of the 2009-
election is made. [Sec. 1401(a)]
2012 crop years, but cannot return to the
traditional counter-cyclical program.
[Sec. 1105(a)]
— No comparable provision. (Continue
— Fixed payment component = $15
— Continue traditional direct payments,
using traditional direct payments.)
per acre times 100% of base acres. [Sec.
but reduce them by 20% for ACRE
1401(b)(2)]
participants. [Sec. 1105(a)(1)]
— Revenue-based payment if national
— Revenue-based component if actual
— Revenue-based payment based on a
actual revenue per acre is less than the
state revenue is less than a guaranteed
two-part trigger: (1) if actual state
national target revenue per acre for the
level for the covered commodity. [Sec.
revenue is less than a guaranteed state

---

CRS-54
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
covered commodity. [Sec. 1104(b)]
1401(b)(3)]
level for the covered commodity, and (2)
if actual farm revenue is less than a farm
ACRE benchmark for the covered
commodity. [Sec. 1105(b)]
— No comparable provision. (Continue
— Recourse loans available on actual
— Continue using nonrecourse
using traditional marketing loan
production of a covered commodity.
marketing loan program, but reduce loan
program.)
Loans must be repaid in full; traditional
rates by 30% for ACRE participants.
nonrecourse loans, loan deficiency
[Sec. 1105(a)(1)]
payments, and marketing loan gains
unavailable. [Sec. 1401(f)]
National actual revenue per acre =
Actual state revenue per acre = actual
Actual state revenue per acre = actual
national average yield for the year times
state yield, times the ACR harvest price.
state yield, times the national average
the higher of (1) national season average
Actual state yield is the actual quantity
market price. Actual state yield is the
market price, or (2) loan rate. An all-rice
produced in the state during the crop
actual quantity produced in the state
and all-barley loan rate will be used for
year, divided by planted acres. ACR
during the crop year, divided by planted
those commodities. [Sec. 1104(c)]
harvest price is the harvest price used to
acres. National average market price is
calculate revenue under Federal Crop
the greater of the national average price
Insurance program. [Sec. 1401(c)]
received during the 12-month marketing
year, or the marketing loan rate after
being reduced by 30%. [Sec. 1105(c)]
National target revenue per acre:
Average crop revenue guarantee per
ACRE program guarantee per acre =
Wheat, $149.92/acre
acre = 90% times the expected state yield
90% times the benchmark state yield,
Corn, $344.12/acre
per planted acre, times the average of the
times the ACRE program guarantee
Grain Sorghum, $131.28/acre
pre-planting price for the crop year and
price. The benchmark state yield is a 5-
Barley, $153.30/acre
the preceding 2 crop years. The expected
year Olympic average state yield. The
Oats, $92.10/acre
state yield for a crop year is projected
ACRE program guarantee price is a 2-
Upland cotton, $496.93/acre
from a trend using 1980-2006 data. The
year average of the national average
Rice, $548.06/acre
pre-planting price is the price used to
market price, as defined above. The
Soybeans, $231.87/acre
calculate revenue under the Federal Crop
ACRE program guarantee cannot change
Other oilseeds, $129.18/acre
Insurance program, and cannot decrease
more than 10% from the previous year.
Peanuts, $683.83/acre
or increase more than 15% from the
If more than 25% of a state’s acreage is
[Sec. 1104(d)]
preceding year. [Sec. 1401(d)]
irrigated and 25% is non-irrigated,
separate guarantees shall apply. [Sec.
National payment yield:
1105(d)]
Wheat, 36.1 bu./acre
Corn, 114.4 bu./acre
Actual farm revenue per acre = actual
Grain Sorghum, 58.2 bu./acre
farm yield, times the greater of the
Barley, 48.6 bu./acre
national average price received during

---

CRS-55
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Oats, 49.8 bu./acre
the 12-month marketing year or the
Upland cotton, 634 lb./acre
marketing loan rate after being reduced
Rice, 51.28 cwt./acre
by 30%. [Sec. 1105(e)]
Soybeans, 34.1 bu./acre
Other oilseeds, 1167.6 lb./acre
Farm ACRE benchmark revenue per
Peanuts, 1.496 ton/acre
acre = the 5-year Olympic average farm
[Sec. 1104(e)]
yield, times the ACRE program
guarantee price; plus the crop insurance
National payment rate = National target
premium per acre. [Sec. 1105(f)]
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
Revenue-based payment amount = the
Payment amount = the product of (1)
rate, times 85% of base acres, times
average crop revenue program guarantee
the lesser of (a) the ACRE program
payment yield. [Sec. 1104(g)]
minus the actual state revenue (if the
guarantee minus actual state revenue or
difference is greater than 0), times 85%
(b) 25% of the ACRE program guarantee,
of the base acres on the farm for the
times (2) 83.3% (2009-2011) or 85%
covered commodity, times the ratio of the
(2012) of the acreage planted of the
actual production history (APH) on the
covered commodity (not to exceed base
farm divided by the expected state yield,
acres of the commodity), times (3) the 5-
times 90%. This formula multiplies a
year Olympic average farm yield divided
state-level payment rate per acre times
by the 5-year Olympic average state
85% of base acres, then pro-rates the
yield. This formula multiplies a state-
payment based on the farm’s yield
level payment rate per acre (up to a
history compared to the expected state
maximum of 25% of the guarantee level)
yield; the payment is then reduced by
times a percentage of planted acreage,
10%. [Sec. 1401(e)]
then pro-rates the payment based on the
farm’s yield history compared to the
state’s yield history. [Sec. 1105(g)]
Timing: Generally, later of (1) end of the
Timing: Beginning October 1 after the
Timing: Beginning October 1 after the
12-month marketing year, or (2) October
end of the marketing year for both the
end of the marketing year. No advance
1 of the same calendar year as the end of
fixed payment and the revenue-based
payments. [Sec. 1105(b)(3)]
the marketing year. Advance payments
component. No advance payments. This
for 2008-2010 crop years: 40% of
delays the ACR direct payment
expected payment after the first 6 months
component one year compared to
of marketing year. No advance payments
traditional direct payments. [Sec.
after 2010 crop year. [Sec. 1104(h)]
1401(b)(4)]

---

CRS-56
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Nonrecourse Marketing Loans and Other Recourse Loans
Nonrecourse marketing loans: available
Same as prior law, except it covers 2008-
Same as prior law, except it covers 2008-
Generally continues prior law to cover
for any amount of a loan commodity
2012 crop years, and includes peanuts.
2012 crop years, and excludes
2008-2012 crop years. [Sec.1201]
produced in crop years 2002-2007.
[Sec. 1201(a)-(d)]
participants in the ACR program. [Sec.
Nonrecourse marketing loans for peanuts
Addresses commingled commodities, and
1201] Nonrecourse marketing loans for
continued separately [Sec. 1307(a)(1)-
requires compliance with conservation
peanuts authorized separately. [Sec.
(3)] Deletes House and Senate provisions
and wetlands requirements. [7 U.S.C.
1303(a)(1)-(4)]
for commingled commodities and
7931] Nonrecourse marketing loans for
peanuts.
peanuts authorized separately. [7 U.S.C.
7957(a)(1)-(3)]
For peanuts, nonrecourse marketing loans
Same as prior law, except it covers 2008-
For peanuts, same as House provision
For peanuts, adopts Senate provisions,
available in crop years 2002-2007. May
2012 crop years, and payment for peanut
[Sec. 1307(a)(5)-(6), (8)], except it
including payments for peanut storage,
be obtained through marketing
storage costs is not authorized. [Sec.
authorizes payment of storage, handling,
except storage payments begin with 2008
cooperative or association approved by
1201(e)]
and associated costs, and does so in such
crop year. [Sec. 1307(a)(4)-(7)]
USDA. Storage to be provided on a non-
a way that handling and associated costs
discriminatory basis and under any
are not deducted from a producer’s loan,
additional requirements. Payment of
but instead advanced when peanuts are
peanut storage costs authorized for 2002-
placed under loan and repaid when
2006 crops. [7 U.S.C. 7957(a)(4)-(7)]
peanuts are redeemed. [Sec. 1307(a)(7)]
Loan rates for 2004-2007 crop years:
Loan rates:
Loan rates:
Loan rates:
Wheat, bu., $2.75
Wheat, bu., $2.94
Wheat, bu., $2.94
2008 crop year (same as prior law)
Corn, bu., $1.95
Corn, bu., $1.95
Corn, bu., $1.95
Wheat, bu., $2.75
Grain sorghum, bu., $1.95
Grain sorghum, bu., $1.95
Grain sorghum, bu., $1.95
Corn, bu., $1.95
Barley, bu., $1.85
Malt barley, bu., $2.50
Barley, bu., $1.95
Grain sorghum, bu., $1.95
Feed barley, bu., $1.90
Barley, bu., $1.85
Oats, bu., $1.33
Oats, bu., $1.46
Oats, bu., $1.39
Oats, bu., $1.33
Upland cotton, lb., $0.52
Base quality 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
Extra long staple cotton, lb., $0.7977
Rice, cwt., $6.50
Long grain 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
Medium grain rice, cwt., $6.50
Soybeans, bu., $5.00
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
Other oilseeds, cwt., $9.30
Dry peas, cwt., $6.22
Dry peas, cwt., $5.40
Dry peas, cwt., $5.40
Dry peas, cwt., $6.22
Lentils, cwt., $11.72
Lentils, cwt., $11.28
Lentils, cwt., $11.28
Lentils, cwt., $11.72
Small chickpeas, cwt., $7.43
Small chickpeas, cwt., $8.54
Small chickpeas, cwt., $7.43
Small chickpeas, cwt., $7.43
Large chickpeas, cwt., $11.28
Graded wool, lb., $1.00
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
Nongraded wool, lb., $0.40
Mohair, lb., $4.20

---

CRS-57
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Mohair, lb., $4.20
Mohair, lb., $4.20
Mohair, lb., $4.20
Honey, lb., $0.60 [Sec. 1202(a)]
Honey, lb., $0.60
Honey, lb., $0.60
Honey, lb., $0.72 [Sec. 1202(a)]
Peanuts, ton, $355 [Sec. 1307(b)]
(Different loan rates applied to 2002-
Peanuts, ton, $355.00 [Sec. 1202(a)]
Peanuts, ton, $355 [Sec. 1307(b)]
2003 crop years.) [7 U.S.C. 7932(b)]
2009 crop year (same as 2008, except
Peanuts, ton, $355 [7 U.S.C. 7957(b)]
one new crop (large chickpeas) and
decreases for dry peas and lentils.
Wheat, bu., $2.75
Corn, bu., $1.95
Grain sorghum, bu., $1.95
Barley, bu., $1.85
Oats, bu., $1.33
Base quality upland cotton, lb., $0.52
Extra long staple cotton, lb., $0.7977
Long grain rice, cwt., $6.50
Medium grain rice, cwt., $6.50
Soybeans, bu., $5.00
Other oilseeds, cwt., $9.30
Dry peas, cwt., $5.40
Lentils, cwt., $11.28
Small chickpeas, cwt., $7.43
Large chickpeas, cwt., $11.28
Graded wool, lb., $1.00
Nongraded wool, lb., $0.40
Mohair, lb., $4.20
Honey, lb., $0.60 [Sec. 1202(b)]
Peanuts, ton, $355 [Sec. 1307(b)]
2010-2012 crop years (increases for
wheat, barley, oats, minor oilseeds,
graded wool, and honey)
Wheat, bu., $2.94
Corn, bu., $1.95
Grain sorghum, bu., $1.95
Barley, bu., $1.95
Oats, bu., $1.39
Base quality upland cotton, lb., $0.52
Extra long staple cotton, lb., $0.7977
Long grain rice, cwt., $6.50
Medium grain rice, cwt., $6.50
Soybeans, bu., $5.00

---

CRS-58
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Other oilseeds, cwt., $10.09
Dry peas, cwt., $5.40
Lentils, cwt., $11.28
Small chickpeas, cwt., $7.43
Large chickpeas, cwt., $11.28
Graded wool, lb., $1.15
Nongraded wool, lb., $0.40
Mohair, lb., $4.20
Honey, lb., $0.69 [Sec. 1202(c)]
Peanuts, ton, $355 [Sec. 1307(b)]
Adjustment of loans: establish a single
Same as prior law. [Sec. 1202(b)]
Same as prior law. [Sec. 1202(b)]
Same as prior law. [Sec. 1202(d)]
loan rate in each county for each kind of
“other oilseeds” [7 U.S.C. 7932(c)]
No comparable provision.
Establish a single county loan rate for
Same as House provision [Sec. 1202(d)]
No comparable provision.
corn and grain sorghum in each county;
establish a single national average loan
rate for corn and grain sorghum. [Sec.
1202(c)(1)]
No comparable provision.
Administer the applicable loan,
Same as House provision, except does
No comparable provision.
marketing loan, counter-cyclical and
not specifically apply to counter-cyclical
related programs using a single loan rate
program. [Sec. 1210(e)]
for corn and grain sorghum that is
identical 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
Amends prior law by excepting cotton
Same as House provision, except the
Adopts the Senate provision, with
for any commodity based on differences
and rice from the general provision for
exception applies only to cotton, removes
modifications to composition of private
in grade, type, quality, location, and other
adjustment, with separate adjustment
warehouse location differentials, and
sector consultative committee. [Sec.
factors. Allows county loan rates as low
rules for cotton and rice. Encourages
requires private sector consultation for
1210] Same basic provision for peanuts.
as 95% of the U.S. average, if it does not
private sector consultation for cotton.
cotton. [Sec. 1210(a)-(d), (f)] Same as
[Sec. 1308]
increase outlays; prohibits adjustment of
For rice, prohibits adjustments except for
prior law for peanuts. [Sec. 1308]
U.S. average loan rate. [7 U.S.C. 7282]
grade and quality. [Sec. 1505]

---

CRS-59
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Establish quality grades for dry peas as
No comparable provision.
Establishes grading basis for pulse crops
No comparable provision; however the
U.S. feed peas; for lentils as U.S. number
based on a grade not less than grade
statement of managers calls for USDA
3 lentils; and for small chickpeas as U.S.
number 2 or other factors, including fair
regulations that reflect number 2 quality.
number 3 small chickpeas that drop
and average crop quality (adjusted to
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: 9 months after the day
Same as prior law. [Sec. 1203]
Same as prior law. [Sec. 1203] Same
Adopts the Senate provision. [Sec. 1203]
the loan is made; no extensions. [7
provision for peanuts. [Sec. 1307(c)]
Same provision for peanuts. [Sec.
U.S.C. 7933] Same term for peanuts. [7
1307(c)]
U.S.C. 7957(c)]
Loan repayment: loans may be repaid at
Same as prior law, except delineates
Same as prior law, except delineates long
Adopts Senate provision, except adds an
the lesser of (1) the loan rate plus
long, medium, and short grain rice. [Sec.
and medium grain rice. [Sec. 1204(a)]
option that the repayment rate is based on
interest, or (2) a rate determined by
1204(a)]
Same provision for peanuts. [Sec.
a 30-day average. [Sec. 1204(a)] Adopts
USDA that will minimize forfeitures,
1307(d)]
Senate provision for peanuts. [Sec.
accumulation of stocks, storage costs,
1307(d)(1)]
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. [7 U.S.C. 7957(d)]
For upland cotton and rice, repayment
Same as prior law, except delineates
Same as prior law, except delineates long
Adopts Senate provision. [Sec. 1204(b)]
may be at the lesser of the loan rate plus
long, medium, and short grain rice. [Sec.
and medium grain rice. [Sec. 1204(b)]
interest, or the prevailing world price for
1204(b)]
the commodity adjusted to U.S. quality
and location. [7 U.S.C. 7934(b)]
For ELS cotton, repayment must be at the
Same as prior law. [Sec. 1204(c)]
Same as prior law. [Sec. 1204(c)]
Same as prior law. [Sec. 1204(c)]
loan rate plus interest. [7 U.S.C. 7934(c)]
Prevailing world market prices for cotton
Same as prior law, except specifies that
Same as prior law, except delineates long
Adopts the Senate provision. [Sec.
and rice are determined and announced
the Far East price be used to determine
and medium grain rice. [Sec. 1204(d)]
1204(d)]
under USDA regulations, adjusted to
the prevailing world market price.
U.S. quality and location. [7 U.S.C.
[Sec.1204(d)]
7934(d)]

---

CRS-60
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Prevailing world market price for upland
Provides for adjustment to prevailing
No comparable provision.
Adopts the House provision, without
cotton adjusted if (a) it is less than 115%
world market prices for rice and upland
reference to Comparable United States
of the loan rate; and (b) the Friday
cotton. For rice, for U.S. quality and
Quality. [Sec. 1204(e)(1)-(2)(A)]
through Thursday average price for the
condition. For upland cotton, for U.S.
lowest priced U.S. growth for Middling
quality and location (premiums for
(M) 1 3/32-inch cotton delivered C.I.F.
Comparable United States Quality and
Northern Europe is greater than the
reduction to United States Premium
Friday through Thursday average price of
Factor higher than Middling 1 3/32-inch;
five lowest-priced growths of upland
and costs to market the commodity. [Sec.
cotton, as quoted for Middling (M) 1
1204(e)]
3/32-inch cotton delivered C.I.F.
Northern Europe. [7 U.S.C. 7934(e)(1)]
Prevailing world market price for upland
Adjusts prevailing world market price for
Same as House provision, except the
Adopts the Senate provision.
cotton further adjusted based on data
upland cotton further to minimize loan
further adjustment is to U.S. quality and
[Sec.1204(e)(2)(B)]
including U.S. share of world exports,
forfeitures and accumulation of stocks,
location. With respect to transition, uses
level of export sales and shipment, and
improve marketing, and ensure
the term “insufficient” current-crop price
other data USDA determines relevant. [7
competitiveness and transition between
quotations, rather than “less than three”
U.S.C. 7934(e)(2)]
current-crop and future-crop price
current-crop price quotations in the
quotations. [Sec. 1204(f)]
House bill. [Sec. 1204(e)]
For confectionary and other kinds of
Same as prior law. [Sec. 1204(g)]
Same as prior law. [Sec.1204(f)]
Same as prior law. [Sec. 1204(f)]
sunflower seeds (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)]
For dry peas, lentils, and small chickpeas,
Same as prior law. [Sec. 1204(h)]
For pulse crops, loans shall be repaid at
No comparable provision.
loans shall be repaid at the quality grades
the quality grades for the applicable
for the applicable commodity specified in
commodity as specified in Sec. 1202(c).
7 U.S.C. 7932(d). [7 U.S.C. 7934(g)]
[Sec. 1204(g)]
Provide payment of storage for upland
Ends the practice of paying for upland
Requires payment of cotton storage costs
Adopts Senate provision to pay cotton
cotton, as allowed under general
cotton storage, handling and other costs
in same manner and at same rates as was
storage costs, except a 10% reduction
authorities of the CCC. [7 C.F.R.
starting with the 2011 crop. [Sec. 1510]
provided for the 2006 crop, effective for
applies to 2008-2011 crop years, and a
1427.19(h)]
2008-12 crop years. [Sec. 1204(h)]
20% reduction in the 2012 crop year.
[Sec. 1204(g)]
No comparable provision.
No comparable provision.
No comparable provision.
Provides USDA authority to temporarily,
an on a short-term basis only, adjust the

---

CRS-61
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
repayment rates in the event of a severe
disruption to marketing, transportation or
related infrastructure. [Sec. 1204(h)]
Same for peanuts. [Sec. 1307(d)(2)]
Loan deficiency payments (LDP):
Same as prior law, except for 2008-2012
Same as House provision, except that for
Adopts House provision. [Sec. 1205]
available to producers who agree to
crop years. [Sec. 1205]
the 2008 crop year the payment rate is
Same provision for peanuts. [Sec.
forego marketing loans. LDP computed
established as of the date that producers
1307(e)]
by multiplying the payment rate (the
lose beneficial interest. [Sec. 1205]
amount that the loan rate exceeds the rate
Same provision for peanuts. [Sec.
at which a marketing loan may be repaid)
1307(e)]
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
Same as prior law. [Sec. 1206]
Same as prior law. [Sec. 1206]
Same as prior law. [Sec. 1206]
acreage of wheat, barley, oats, or
triticale. [7 U.S.C. 7936]
Special Marketing Loan Provisions for
Same as prior law, except uses Far East
Same as House provision, except
Adopts the Senate provision. [Sec.
Upland Cotton: imposes a special import
price. Special import quota defined.
specifies the price of American cotton
1207(a)]
quota on upland cotton when U.S. prices
Limits imports under quota to 10 weeks
“delivered to a definable and significant
exceed Northern European prices by
of consumption by domestic mills. [Sec.
international market.” [Sec. 1207(a)]
more than 1.25¢ for 4 weeks. [7 U.S.C.
1207(a)]
7937(b)]
Limited global import quota is imposed
Same as prior law. [Sec. 1207(b)]
Same as prior law. [Sec. 1207(b)]
Same as prior law. [Sec. 1307(b)]
on upland cotton when U.S. prices
average 130% of the previous 3-year
average of U.S. prices [7 U.S.C. 7937(c)]

---

CRS-62
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
Provides Economic Adjustment
Provides Economic Adjustment
Adopts the Senate provision, with
Assistance to Users of Upland Cotton via
Assistance to Users of Upland Cotton via
modification. Effective August 1, 2008,
marketing certificates or cash payments
assistance of 4¢/lb. to domestic users of
through July 31, 2012 at 4¢/lb.; payment
of 4¢/lb. to domestic upland cotton users
upland cotton for uses of all cotton
rate drops to 3¢ on August 1, 2012. [Sec.
for all cotton uses regardless of origin for
regardless of origin for the same
1207(c)]
acquisition, construction, installation,
purposes as the House provision.
modernization, development, conversion,
Effective August 1, 2008, through June
or expansion of land, plant, buildings,
30, 2013; payment rate drops to 0¢ on
equipment, facilities, or machinery.
July 1, 2013, which terminates future
Effective through July 31, 2013. [Sec.
funding. [Sec. 1207(c)]
1207(c)]
Special competitiveness program for ELS
Same as prior law. [Sec. 1208]
Same as prior law, except it does not
Adopts the Senate provision. [Sec. 1208]
cotton provides marketing certificates or
specify form of payment (cash or
cash payments available to domestic
certificates). [Sec. 1208]
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 4-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
Same as prior law. [Sec. 1209]
Same as prior law. [Sec. 1209]
Same as prior law. [Sec. 1209]
grains and 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
No comparable provision.
No comparable provision.
repayment no 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]

---

CRS-63
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
Authorizes quality incentive payments
Similar to House provision, except it has
Adopts the Senate provision, with
for healthy oilseeds with special traits to
fewer requirements for proposals, does
modifications, and adds compliance and
enhance human health. Provides for
not specify multi-year contracts, and
penalty provisions. Authorization of
discretionary appropriations of such sums
provides for protection of proprietary
such sums as necessary for FY2009-
as necessary. Crop years 2009-2013.
information. Does not specify crop
2012. [Sec. 1605]
USDA to solicit proposals; successful
years, but authorizes discretionary
applicants enter contracts with producers
appropriations of $400 million for the
and are reimbursed after premiums paid
period FY2008-12. [Sec. 1705]
to producers. [Sec. 1211]
Payment Limits
Establishes payment limits on direct
Continues limits for direct payments and
Continues limits for direct payments and
Continues prior law limits for direct
payments, counter-cyclical payments,
counter-cyclical payments, as amended
counter-cyclical payments, as amended
payments and counter-cyclical payments.
and certain marketing loan benefits under
below. Deletes payment limit for
below. Deletes payment limit for
Deletes payment limit for marketing loan
the Food Security Act of 1985, as
marketing loan program. Establishes
marketing loan program. Establishes
program. Establishes direct attribution to
amended, to a “person” as broadly
direct attribution to natural person;
direct attribution to natural person;
natural person; eliminates 3 entity rule.
defined below [7 U.S.C. 1308-1308-3(a)]
eliminates 3 entity rule. [Sec. 1503]
eliminates 3 entity rule. [Sec. 1703(a)]
[Sec. 1603(a)]
Person: defined as an individual, partner
Person: “a natural person, and does not
Person: same as House definition. [Sec.
Person: adopts the House definition.
in a general partnership or joint venture,
include a legal entity.” [Sec. 1503(b)(1)]
1703(b)(2)]
[Sec. 1603(b)(1)]
trust, corporation, joint 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
Legal entity: same as House definition.
Legal entity: adopts the House
federal or state law that (1) owns land or
[Sec. 1703(b)(2)]
definition. [Sec. 1603(b)(1)]
an agricultural commodity, or (2)
produces an agricultural commodity.
No comparable definition.
No comparable definition.
Family member: “an individual to
Family member: “a person to whom a
whom a member in the farming operation
member in the farming operation is
is related as lineal ancestor, lineal
related as lineal ancestor, lineal
descendant, sibling, or spouse.” [Sec.
descendant, sibling, spouse, or otherwise
1703(b)(1)]
by marriage.” [Sec. 1603(b)(1)]
Maximum amount of payments per
Maximum amount of payments per
Maximum amount of payments per
Maximum amount of payments per
year to a person for the sum of all
year to a person or legal entity for the
year to a person or legal entity for the
year to a person or legal entity for the

---

CRS-64
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
covered commodities (except peanuts,
sum of all covered commodities, except
sum of all covered commodities, except
sum of all covered commodities, except
wool, mohair, and honey):
peanuts:
peanuts:
peanuts:
— Direct payments: $40,000
— Direct payments: $60,000
— Direct payments and fixed ACR
— Direct payments: $40,000
payment: $40,000
— Direct payments under ACRE:
$40,000 minus the reduction required of
an ACRE participant in Sec. 1105(a)(1).
— Counter-cyclical payments: $65,000
— Counter-cyclical payments: $65,000
— Counter-cyclical payments and
— Counter-cyclical payments: $65,000
[Sec. 1503(a)(1)-(2)]
revenue-based ACR payment: $60,000
— ACRE payments: $65,000 plus the
reduction in the direct payment limit.
— Marketing loan gains/LDP: $75,000
— Marketing loan gains/LDP: no limit.
— 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)]
[Sec. 1603(b)(2)]
Maximum payment amount per year to
Maximum payment amount per year to
Maximum payment amount per year to
Maximum payment amount per year to
a person for the sum of peanuts, wool,
a person or legal entity for peanuts:
a person or legal entity for peanuts:
a person or legal entity for peanuts:
mohair, and honey:
— Direct payments: $40,000
— Direct payments: $60,000
— Direct payments and fixed ACR
— Direct payments: $40,000
payment: $40,000
— Direct payments under ACRE:
$40,000 minus the reduction required of
an ACRE participant in Sec. 1105(a)(1).
— Counter-cyclical payments: $65,000
— Counter-cyclical payments: $65,000
— Counter-cyclical payments, and
— Counter-cyclical payments: $65,000
[Sec. 1503(a)(1)-(2)
revenue-based ACR payment: $60,000
— ACRE payments: $65,000 plus the
reduction in the direct payment limit.
— Marketing loan gains/LDP: $75,000
— Marketing loan gains/LDP: no limit
— Marketing loan gains/LDP: no limit
— Marketing loan gains/LDP: no limit
[7 U.S.C. 1308(b)(2), (c)(2), (d)(2)]
[Sec. 1503(b)(2)]
[Sec. 1703(b)(2)]
[Sec. 1603(b)(2)]
No comparable provision.
Direct attribution: the total amount of
Direct attribution: same as House
Direct attribution: Adopts the Senate
direct and counter-cyclical payments are
provision, except payments to a legal
provision. [Sec. 1603(b)(3)]
attributed to a person by taking into
entity are reduced proportionately based
account direct and indirect ownership in
on the ownership shares of a person or
a legal entity. Payments made directly to
entity that exceeds the limit.
a person will be combined with the
[Sec. 1703(b)(3)]
person’s pro rata share of payments to a
legal entity. Payments to a legal entity
shall not exceed the limits above, and
shall be attributed to persons with an

---

CRS-65
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
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
Continue prior law rules for minor
Same as House provision.
Adopts House provision. [Sec.
attributed to parents; marketing coops are
children, marketing cooperatives, trusts
[Sec. 1703(b)(3)]
1603(b)(3)]
not subject to the limits; trusts and estates
and estates, and cash rent tenants. [Sec.
qualify under certain rules; cash rent
1503(b)(2)]
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
Makes federal agencies, states and
Same as House provision, except has no
Same as House provision, except replaces
allowed to receive payments under the
political subdivisions ineligible for
new exception for state and local
7 U.S.C. 1308(f) with new paragraph (g)
definition of person. Payment limits do
payments, but tenants on such
governments to receive payments to
that allows states and political
not apply to land owned by a public
government-owned land may receive
maintain a public school. Such an
subdivisions to receive payments to
entity to maintain a public school.
payments. An exception allows states and
exemption remains in prior law provision
maintain a public school. A separate
[7 U.S.C. 1308(f)]
political subdivisions to receive payments
(7 U.S.C. 1308(f)), which is redesignated
payment limit of $500,000 on total direct,
to maintain a public school, but payment
as subparagraph (g). [Sec. 1703(b)(3)]
counter cyclical, and ACRE payments
limits apply [Sec. 1503(b)(2)]. However,
applies to each state, except for states
existing law (7 U.S.C. 1308(f)) remains
with less than 1.5 million population.
in effect, which exempts states and
[Sec. 1603(b)(3)]
political subdivisions from payment
limits to maintain a public school.
3-entity rule: no person may receive
Repeals the 3-entity rule. Requires
Same as House provision. [Sec. 1703(c)]
Adopts House provision. [Sec. 1603(c)]
payments from more than three entities in
notification to USDA, including names
which the person holds substantial
and social security number or tax

---

CRS-66
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
beneficial interest. [7 U.S.C. 1308-1(a)]
identification number. [Sec. 1503(c)]
Requires a person or entity to be actively
Continues prior law provisions and adds
Same as House provision. [Sec. 1703(d)]
Adopts House provision. [Sec. 1603(d)
engaged in farming based on
an exception that if one spouse is
contributions of land, labor, equipment,
determined to be actively engaged, the
and management, and requires profits be
other spouse shall be determined to meet
commensurate and at risk. [7 U.S.C.
requirements of personal labor or active
1308-1(b)]
personal management. [Sec. 1503(d)]
Disqualifies a person from payments in
Disqualifies a person or entity for a 2-5
Same as House provision, except adds
Adopts Senate provision. [Sec. 1603(e)]
the crop year if the person adopted a
year period for evasion of payment limit
joint and several liability for members of
scheme or device to evade payment
rules. Benefits denied on a pro-rata basis
an entity regarding amounts payable to
limits. [7 U.S.C. 1308-2]
according to ownership.
USDA, and authority for USDA to
[Sec. 1503(b)(2)]
release a person from liability if they
cooperate. [Sec. 1703(e)]
No comparable provision.
Prior law shall apply to payments made
Same as House provision. [Sec. 1703(g)]
Prior law shall apply to payments made
for the 2007 crop year. [Sec. 1503(e)]
for the 2007 and 2008 crop years. [Sec.
1603(h)]
Adjusted Gross Income Limitation
No firm cap (a cap without exceptions).
Sets a firm AGI cap of $1 million (no
No firm cap.
Divides AGI into two parts: farm AGI
exceptions) to be eligible to receive
and non-farm AGI; both are averages
direct and counter-cyclical payments,
over a 3 year period.
marketing loan gains or LDPs, and
—
Sets a firm cap of $500,000 non-
conservation benefits. Applies through
farm AGI to receive any
the 2012 crop year. [Sec. 1504(b)(1)]
commodity program benefits,
MILC, noninsured crop assistance,
or disaster payments.
—
Sets a firm cap of $750,000 farm
AGI to receive direct payments
(but counter-cyclical, ACRE and
marketing loan benefits may
continue if farm AGI exceeds
$750,000). [Sec. 1604(a)]
Sets a soft cap of $2.5 million Adjusted
Sets a soft AGI cap of $500,000, unless
Sets a gradually-declining soft AGI cap
No comparable provision.
Gross Income Limitation (AGI) over a 3-
66.66% of the 3-year average AGI is
for direct payments, counter-cyclical
year average for individuals or entities to
derived from farming, ranching, or
payments, and marketing loan gains or
be eligible to receive program payments.
forestry operations. Applies through the
LDPs, unless 66.66% of the 3-year

---

CRS-67
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Limit may be exceeded if at least 75% of
2012 crop year. [Sec. 1504(b)(1)]
average AGI is derived from farming,
the AGI is derived from farming,
ranching, or forestry operations:
ranching, or forestry operations. Applies
— $2.5 million in crop year 2008,
to direct payments, counter-cyclical
— $1 million in 2009, and
payments, marketing loan benefits, and
— $750,000 in 2010-2012
conservation program payments for the
[Sec. 1704(c)]
2003-07 crop years. [7 U.S.C. 1308-3a]
AGI cap for conservation programs same
AGI cap for conservation programs same
For conservation programs, continues
For conservation programs, sets a soft
as for commodity programs.
as for commodity programs.
prior law level of $2.5 million AGI, with
cap of $1 million non-farm AGI, unless
exception for 75% of AGI derived from
more than 66.66% of AGI is farm AGI.
farming, ranching or forestry. [Sec.
Provides USDA discretion to waive the
1704(c)]
limit for “environmentally sensitive land
of special significance.” [Sec. 1604(a)]
USDA determines types of income as
Defines certain types of income as
Same as House provision, except does
Adopts Senate provision, with additional
derived from farming, ranching or
farming, ranching or forestry. Includes
not limit sale of equipment to non-dealers
and expansion for the inclusion of
forestry income. [7 U.S.C. 1308-
production of crops, livestock or raw
and does not reference depreciable
livestock, insurance indemnities.
3a(b)(1)]
forestry products; sale of land or rights;
equipment; includes income from water
Specifies that sale of inputs to farmers
sale of equipment but not as a dealer;
or hunting rights; includes packing and
can be included if more than 66.66% of
rental of land; supplying inputs and
shedding in processing and storing; and
income is from farming. Generally, not
services to farmers; processing, storing
includes government payments from
to exclude anything reported on IRS
and transporting agricultural products.
commodity and conservation programs.
Schedule F. [Sec. 1604(a)]
[Sec. 1503(b)(3)]
[Sec. 1704(c)]
No comparable provision.
No comparable provision.
Allows the allocation of AGI among the
Adopts the Senate provision. [Sec.
individuals filing a joint tax return, under
1604(a)]
certain conditions. [Sec. 1704(b)]
Administrative Provisions
Authorizes use of funds, facilities, and
Same as prior law. [Sec. 1501]
Same as prior law. [Sec. 1701(a)-(d)]
Same as prior law. [Sec. 1601(a)-(d)]
authorities of 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)]

---

CRS-68
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Advanced direct and counter-cyclical
No comparable provision.
Same as prior law, applied to the 2008
Adopts Senate provision. [Sec. 1601(e)]
payments are taxable in the year received
farm bill. [Sec. 1701(e)]
(rather than when producer has option to
receive payment). [7 U.S.C. 7991(d)]
Suspends the permanent price support
Same as prior law, except applies to
Same as House provision, except does
Adopts House provision. [Sec. 1602]
authority of the Agricultural Adjustment
2008-2012 crop years, and milk through
not mention peanuts in paragraph (a).
Act of 1938 and the Agricultural
December 31, 2012. [Sec. 1502]
[Sec. 1702]
Adjustment Act of 1949 for the 2002-07
crops (covered commodities, peanuts,
and sugar), and for milk through
December 31, 2007. [7 U.S.C. 7992]
Exempts producers from liability for
Same as prior law. [Sec. 1506]
Same as prior law. [Sec. 1709]
Same as prior law. [Sec. 1606]
certain deficiencies in collateral to secure
any nonrecourse loan. [7 U.S.C. 7284]
Authorizes the use of commodity
Same as prior law. [Sec. 1507]
Same as prior law. [Sec. 1710]
Same as prior law, except terminates
certificates, including to repay marketing
authority to use commodity certificates to
loans. [7 U.S.C. 7286]
repay loans after the 2009 crop year.
[Sec. 1607]
Requires that assignment of payments
Same as prior law. [Sec. 1508]
Same as prior law. [Sec. 1711]
Same as prior law. [Sec. 1608]
must be done in accordance with USDA
regulations. [7 U.S.C. 7995]
Requires tracking of program benefits
Same as prior law. [Sec. 1509]
No comparable provision.
Same as prior law. [Sec. 1609]
under commodity and conservation titles
that are made directly or indirectly to
individuals and entities. [7 U.S.C. 7997]
Prohibits publication of cotton price
Strikes the prior law prohibition on the
Same as House provision. [Sec. 1714]
Adopts House and Senate provision.
forecasts in any governmental report, or
publication of cotton price forecasts.
[Sec. 1610]
bulletin. [12 U.S.C. 1141j]
[Sec. 1511]
Allows payments to estates of deceased
Requires reports to Congress of deceased
Prohibits any agricultural payment to any
Generally adopts the House approach.
farmers [7 U.S.C. 1308(e)(2)(B)(ii)], but
persons that received payments for more
deceased individual or estate after two
Requires regulations that describe the
without reference to a time period.
than two crop years following death.
program years after the date of death.
circumstances allowing payments to a
USDA regulations establish a 2-year
Establishes deadlines for notification of
Require annual reports to Congress on
deceased person to settle and estate, and
period for estates to qualify. [7 C.F.R.
death, and denies payments and recoup
the number and amount of payments to
to stop payments for those ineligible.
1400.206]
losses for failure to comply. Reconcile
deceased individuals and the length of
Reconcile tax identification numbers with

---

CRS-69
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
tax identification numbers with Internal
time the estate has been open. [Sec.
IRS data twice a year to determine living
Revenue Service (IRS) data twice a year
11073]
status. [Sec. 1611]
to determine living status. [Sec. 1512]
Provide incentive payments to producers
No comparable provision.
Provides incentive payments to producers
Adopts Senate provision, except
of hard white wheat on up to 2 million
of hard white wheat of at least $20¢/bu.
authorizes discretionary appropriations
acres. Total mandatory funding of $20
and at least $2/acre on up to 2.9 million
rather mandatory funding. [Sec. 1612]
million for the 2003-2005 crop years.
acres. Mandatory funding of $35 million
[7 U.S.C. 7999]
for the 2008-12 crop years. [Sec. 1706]
No comparable provision.
No comparable provision.
Authorizes compensation up to 50% of
Adopts Senate provision. [Sec. 1613]
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
No comparable provision.
Establishes a storage facility loan
Adopts Senate provision, with
USDA regulations via the general
program for producers of grains,
modification to security and lien
authorities of the CCC. For commodities
oilseeds, pulse crops, hay, renewable
requirements. [Sec. 1614]
other than sugar, maximum term of loan
biomass, and other storable commodities
is 7 years and $100,000 per borrower. [7
(other than sugar) to construct or upgrade
C.F.R. 1436]
storage and 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
Revises the authorization for cotton
Revises the authorization for cotton
Adopts the Senate provision, with
be available to producers of cotton, and
classification services through FY2012 to
classification services for an indefinite
modification. [Sec. 14201]
for the collection of fees and
include leasing of property exceeding 5
time period, including consultation with
appropriations to pay for such services.
years. [Sec. 11302]
the cotton industry, investment of funds,
[7 U.S.C. 473a]
and long term lease of property.
Provides authorization for appropriations.
[Sec. 1712]
Defines cotton-producing state, for
Revises definition of cotton-producing
Same as House provision. [Sec. 1713]
Adopts the House provision. [Sec.
purposes of a cotton research and
state to explicitly include Kansas,
14202]
promotion, using a historical measure of
Virginia, and Florida beginning with the
production. [7 U.S.C. 2116(f)]
2008 crop. [Sec. 11301]
Instructs USDA to appoint committees of
No comparable provision.
For combined or consolidated area
Adopts the Senate provision, with
farmers in a fair and representative
committees, requires 3-11 members that
modification for USDA to develop

---

CRS-70
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
manner. [16 U.S.C. 590h(b)(5)(B)(ii)]
are representative of the area and elected,
procedures to main representation of
and ensures representation of socially
socially disadvantaged farmers. [Sec.
disadvantaged farmers. [Sec. 1715]
1615]
Authorizes USDA to collect commodity
No comparable provision.
Prohibits USDA from charging fees for
Adopts Senate provision. [Sec. 1616]
assessments from proceeds of marketing
the collection of commodity assessments
assistance loans, if assessment is required
in its agreement with the State. [Sec.
under state law. [7 U.S.C. 7416a]
1716]
No comparable provision.
No comparable provision.
Requires that, if USDA approves a
Adopts the Senate provision, with
document containing signatures of
modification. [Sec. 1617]
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
Requires a report by an outside party that
Service Agency information technology
describes USDA’s technology problems
systems to ensure timely and efficient
and a plan to improve service. [Sec.
program delivery. [Sec. 1718]
1618]
No comparable provision.
No comparable provision.
Requires USDA to consolidate geospatial
Adopts the Senate provision, with
database systems into a single system that
modification to limit disclosure of
is readily available to all agencies within
information. [Sec. 1619]
two years of enactment. [Sec. 1719]
No comparable provision.
No comparable provision.
Allows the CCC to lease space for USDA
Requires a report on the cost of leasing
agencies if the space is jointly occupied
procedures of the General Services
by the agencies. [Sec. 1720]
Administration compared to USDA. [Sec.
1620]
No comparable provision.
No comparable provision.
Provides payments to “geographically
Adopts the Senate provision, with
disadvantaged farmers” in insular areas,
modification. [Sec. 1621]
Alaska, and Hawaii for transporting a
commodity or input more than 30 miles.
Reimbursement based on federal salary
differentials defined elsewhere, with
maximum of 25% transportation cost.
Authorizes $15 million of discretionary
appropriations annually. [Sec. 6021]

---

CRS-71
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
No comparable provision.
Provides $50 million of mandatory funds
from the CCC to implement Title I. [Sec.
1622]
Establishes a “Commission on the
No comparable provision.
Repeals the authorization for the payment
Adopts the Senate amendment to repeal
Application of Payment Limitations for
limits commission. [Sec. 1721(a)]
the commission. [Sec. 1623(a)]
Agriculture.” [7 U.S.C. 7993]
Authorizes market loss assistance and
No comparable provision.
Repeals market loss assistance and other
Adopts the Senate amendment to repeal
other emergency assistance to persons
emergency assistance to persons that
the continued assistance. [Sec. 1623(b)]
that were eligible to receive assistance
failed to receive assistance under earlier
but did not receive assistance before a
authorities. [Sec. 1721(b)]
certain date. [7 U.S.C. 8000]
DAIRY (TITLE I)
Dairy Price Support Program
Mandatory support for farm price of milk
Mandates the direct support of cheese,
Similar to the House bill.
Adopts House provision. [Sec. 1501(b)]
at $9.90 per hundredweight (cwt.).
nonfat dry milk, and butter at specified
[Secs. 1601(a)-(b)]
Program authority expired on December
prices for five years (through December
31, 2007, but was extended until March
31, 2012). This is a change from
15, 2008 by P.L. 110-161. [7 U.S.C.
supporting the farm price of milk. [Secs.
7981a-c]
1401(a)-(b)]
Farm support price of $9.90 indirectly
Specifies minimum purchase prices of:
Similar to the House bill.
Adopts House provision. [Sec. 1501(c)]
maintained by USDA offer to purchase
block cheese, $1.13/lb.; barrel cheese,
[Secs. 1601(b)-(c)]
butter, cheese, and nonfat dry milk from
$1.10/lb.; butter, $1.05/lb.; and nonfat
processors at prices determined by
dry milk, $0.80/lb (same levels currently
USDA that allow buyers to pay farmers
used to support the farm price at $9.90
at least the support price. [7 U.S.C.
per cwt.) Allows USDA sale of acquired
7981a-c]
products when market prices rise to
110% of purchase price. [Sec. 1401(b)]
No more than twice annually, USDA can
Allows reduction of mandated purchase
No comparable provision.
Adopts House provision. [Sec. 1501(d)]
adjust the purchase prices of butter and
prices when USDA acquisitions exceed
nonfat dry milk (reduce one and raise the
specified levels. [Sec. 1401(c)]
other) in order to minimize acquisitions.
[7 U.S.C. 7981d]

---

CRS-72
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Milk Income Loss Contract Payments
The 2002 farm bill mandated a new
Extends the MILC program for five
Increases, through August 31, 2012, the
For the period October 1, 2008 through
counter-cyclical payment program, the
years, through September 30, 2012, at the
payment rate to 45%, and raises the cap
August 31, 2012,increases the payment
Milk Income Loss Contract (MILC)
current target price of $16.94/cwt.
on eligible annual production to 4.15 mil.
factor to 45%, and the annual eligible
program. When the monthly fluid milk
Payment rate remains at 34% of any
lbs. per farm. Payment rate and
payment quantity to 2.985 million
price falls below $16.94/cwt., all dairy
deficiency between the market price and
production cap would return to 34% and
pounds. After that, payment factor and
farmers are paid an amount equal to 34%
the target price, and eligible production
2.4 mil. lbs. for the last month of
payment quantity revert to 34% and 2.4
of the difference between $16.94 and the
continues to be capped at 2.4 mil. lbs. per
program authority in September 2012.
million pounds, respectively. The $16.94
lower market price. Payments per farm
farm per year. [Sec. 1406]
[Sec. 1602]
per cwt. payment rate must be adjusted to
are limited to 2.4 million lbs. of annual
reflect feed cost increases above trigger
production. MILC authority expired
levels, as specified in the final law.
Sept. 30, 2005, but several subsequent
[Sec. 1506]
extensions continue it through March 15,
2008. [7 U.S.C. 7982]
Dairy Forward Pricing Program
The FY2000 omnibus appropriations act
Authorizes a dairy forward pricing
Similar (but not identical) to the House
Adopts House provision. [Sec. 1502]
authorized a pilot dairy forward pricing
program similar to the pilot program of
bill. [Sec. 1606]
program implemented from mid-2000
2000-2004. Price paid by milk handlers
until its required expiration date of
under the contracts are deemed to satisfy
December 31, 2004. It exempted
the minimum price requirements of
handlers from having to pay farmers the
federal milk marketing orders. Applies
federal order price when the forward
only to milk purchased for manufactured
contract price turns out to be lower.
products (Classes II, III, and IV), and
[7 U.S.C. 627]
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.
Extends DEIP through December 31,
Extends DEIP through December 31,
Adopts House provision. [Sec. 1503]
dairy exporters, subject to World Trade
2012, with a reference to the Uruguay
2012. [Sec. 1603(a)]
Organization obligations to limit export
Round Agreements Act. [Sec. 1403]
subsidies. No DEIP bonuses have been
awarded since FY2004. Legislative
authority expires March 15, 2008.
Intended to counter foreign (mostly EU)

---

CRS-73
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
dairy subsidies. [15 U.S.C. 713a-14(a)]
Dairy Indemnity Program
Authorizes payments to dairy farmers
Extends the Dairy Indemnity Program
Similar to the House bill. [Sec. 1603(b)]
Adopts House provision. [Sec. 1505]
when a public regulatory agency directs
fthrough December 31, 2012. [Sec. 1405]
removal of their raw milk 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
Extends promotion and research program
Extends program authority through Sep.
Adopts House provision with changes to
1983 authorized a generic dairy product
authority through Sep. 30, 2012. Amends
30, 2012. Does not address the issue
reduce the assessment rate on imported
promotion, research, and nutrition
the 1983 Act to require producers in all
involving the import assessment.
products to 7.5¢/cwt. Authorizes USDA
education program, funded by a
50 states, the District of Columbia, and
[Sec. 1604]
to issue regulations on time and method
mandatory 15¢/cwt assessment on milk
Puerto Rico to pay the 15¢/cwt. [Sec.
of importer payments. [Sec. 1507]
produced/marketed in the 48 contiguous
1407]
states. 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
Creates a Federal Milk Marketing Order
Creates a Federal Milk Marketing Order
Creates a Federal Milk Marketing Order
by USDA place requirements on the first
Review Commission to review and
Review Commission, with same overall
Review Commission with 14 members
buyers or handlers of milk, including
evaluate the current federal and similar
functions and purposes as the House bill,
appointed by USDA; objectives of the
paying at least minimum prices for the
state order systems. The 18-member
but with some differences in the
commission are similar to but modified
milk depending on its end use. Perm-
Commission is to consider legislative and
appointment of members and issues to be
from the House version. [Sec. 1509]
anent federal authority to regulate the
administrative options for: ensuring the
studied. [Sec. 1608]
handling of milk was first provided in the
competitiveness of farmers and
Agricultural Adjustment Act of 1933,
processors, and simplifying and
and subsequently revised by the Agri-
streamlining the federal order system.
cultural Marketing Agreement Act of
Report is due within two years of the first
1937, as amended. [7 U.S.C. 601 et seq.]
meeting. [Sec. 1409]

---

CRS-74
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
When USDA amends federal orders, it
Revises order amendment procedures by
Also revises amendment procedures by
Includes elements of both bills with
must issue a notice of a hearing at least
placing time constraints on USDA at
establishing a timetable for certain
regard to the time constraint provisions,
three days prior to the hearing.
various steps of the amendment process.
actions, but with some differences.
avoidance of duplication, and use of feed
[7 U.S.C. 608c(17)]
[Sec. 1404]
[Sec. 1605]
and fuel costs for hearings involving
adjustments to make allowances.
[Sec. 1504]
In late April 2007, USDA announced an
Requires USDA, within 90 days of
Similar to the House bill, except that the
Adopts Senate provision. [Sec. 1508]
error in nonfat dry milk prices reported to
enactment, to submit a report to Congress
report is to be filed with the House and
them by manufacturers over the previous
on price reporting procedures for nonfat
Senate Agriculture Committees. [Sec.
12 months. The error contributed to
dry milk, and the effect these procedures
1607)
lower farm milk prices than would
have had on marketing order pricing
otherwise have been the case.
since July 1, 2006. [Sec. 1408]
Mandatory Dairy Commodity Price Reporting
Dairy Market Enhancement Act of 2000
No comparable provisions.
Requires manufacturers to report sales
Authorizes USDA to establish an
requires manufacturers to report to
transactions daily. Requires USDA to
electronic reporting system (subject to
USDA the price, quantity, and moisture
publish the data each reporting day and
available funds), after which increased
content of dairy products sold. [7 U.S.C.
compare it with other dairy market
frequency in mandatory reporting of
1637b]
statistics on a quarterly basis.
dairy product sales would be required.
[Secs. 1609 and 1610]
Provides for quarterly audits of submitted
information and comparison with related
dairy market statistics. [Sec. 1510]
SUGAR (TITLE I)
No Net Cost Directive
Requires USDA to the maximum extent
Retains current no-net-cost requirement.
Similar to the House bill. [Secs. 1501
Continues no-cost requirement found in
practicable to operate the sugar
[Secs. 1301 and 1303(b)]
and 1504(b)]
prior law. [Secs. 1401, 1403] Requires
nonrecourse loan program at no net cost
USDA to operate sugar-for-ethanol
by avoiding sugar forfeitures to the CCC.
program (in Energy title) to ensure this
[7 U.S.C. 7272 (g), 7 U.S.C. 1359bb (b),
no-cost directive is met. [Sec. 9001]
7 U.S.C. 1359cc (b)(2)]
Price Support Levels, Loans and Payments
Sets raw cane and refined beet sugar loan
Increases raw cane sugar and refined beet
Increases raw cane sugar loan rate to
Increases raw cane sugar loan rate to
rates at 18.0¢ and 22.9¢/lb through
sugar loan rates to 18.5¢/lb. and 23.5¢/lb
19.0¢/lb. by FY2013, in 1/4¢ increments
18.75¢/lb. in FY2012 and FY2013, in
FY2008. Expands loan eligibility to in-
for FY2009 through FY2013. [Sec. 1301]
beginning in FY2010. Increases beet
1/4¢ increments beginning in FY2010.
process sugars and syrups at 80% of the
sugar loan rate, to be set at 128.5% of the
Sets refined beet sugar loan rate at

---

CRS-75
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
applicable loan rates. Makes
raw cane rate in effect each year (e.g.,
22.9¢/lb. in FY2009. Starting in
nonrecourse loans available to processors
reaching 24.42¢/lb. in FY2013). [Sec.
FY2010, sets beet sugar rate equal to
under certain conditions. Sets 9-month
1501]
128.5% of the raw cane rate in effect,
repayment term for such loans. [7 U.S.C.
(e.g., rising to 24.1¢/lb. in FY2012 and
7272 (a, b, d, e, f)]
FY2013). Continues other provisions
found in prior law. [Sec. 1401]
Authorizes CCC to accept bids from
Continues in-kind authority. Stipulates
Similar to the House bill. [Sec. 1501]
Continues in-kind authority and adds
sugar processors to purchase USDA-
that planted beets or cane diverted from
House/Senate provision. [Sec. 1401]
owned sugar in conjunction with reduced
production can only be used as bioenergy
production of new sugar crops. [7 U.S.C.
feedstock. [Sec. 1301]
7272 (g)]
USDA now pays storage rates of 8¢/cwt.
No comparable provision.
Requires (only through crop year 2011)
Adopts Senate provision. [Sec. 1405]
for raw cane and 10¢ per cwt. for refined
USDA minimum storage payment rates
beet sugar that has been forfeited under
of 10¢/cwt. and 15¢/cwt. on forfeited raw
the nonrecourse loan program. [15
cane and refined beet sugar. [Sec. 1503]
U.S.C. 714b & 714c; 7 CFR Part 1423]
Authorizes CCC to provide financing to
No comparable provision.
Retains authority, but stipulates that loans
Continues prior law and adds Senate
processors of domestic sugar to construct
shall not require any prepayment penalty.
provision. [Sec. 1404]
or upgrade storage and handling
[Sec. 1502]
facilities. [Sec. 1402]
Marketing Allotments and Allocations
To avert loan forfeitures, USDA limits
Continues purpose and structure of
Similar to the House bill.
Continues marketing allotment authority
the amount of sugar processors can sell
marketing allotments and allocations, but
[Sec. 1504(a)-(d)]
and adopts House/Senate provisions
each year (according to a national
changes some key provisions. Changes
requiring USDA to set OAQ at not less
“overall allotment quantity” (OAQ)
formula to require USDA to set OAQ at
than 85% of estimated U.S. human
divided between cane and beet sectors,
not less than 85% of estimated human
consumption, and eliminating allotment
then allocated to individual processors).
food and beverage sugar use. Eliminates
suspension trigger. [Sec. 1403(a)-(d)]
The OAQ must accommodate WTO and
allotment suspension provision.
NAFTA import commitments (1.532
[Sec. 1303(a)-(d)]
million short tons). If imports are larger,
USDA’s authority to implement
allotments is suspended. [7 U.S.C.
1359aa, 1359bb, 1359cc, and 1359dd]
Directs USDA to reassign unused raw
Requires that any reassignment of unused
Similar to the House bill. [Sec. 1504(e)]
Adopts House/Senate change to prior
cane and beet sugar marketing allocations
cane and beet allocations to imports [in
law. [Sec. 1403(e)]

---

CRS-76
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
first to other cane states and beet
the fourth step] must be met by imports
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,
Makes no changes to import quota
Makes no changes to import quota
Makes no change to current U.S. trade
USDA sets an annual global sugar import
commitments found in various trade
commitments.
commitments.
quota of not less than 1.256 mil. short
agreements and laws.
tons. USTR allocates the quota among
eligible countries, and also administers
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
Repeals requirement for reallocating
Similar to the House bill.
Adopts House/Senate repeal provision.
unused country quota allocations to other
sugar import quota shortfalls.
[Sec. 1504(i)]
[Sec. 1403(i)]
quota-holding countries with sugar to
[Sec. 1303(i)]
sell. [7 U.S.C. 1359kk]
USDA has discretion to increase the size
Requires USDA to set quotas for raw
Similar to the House bill.
Adopts House/Senate provision on
of global raw cane and refined sugar
cane and refined sugar at the minimum
[Sec. 1504(j)]
setting initial import quotas at minimum
import quotas when domestic sugar
level necessary to comply with U.S. trade
levels and laying out steps to be followed
supplies are inadequate to meet U.S.
agreement obligations. In cases of sugar
to increase imports in the event of a sugar
demand at reasonable prices. [Chapter
shortages, supplies are to be increased
shortage. [Sec. 1403(j)]
17, additional note 5, of the U.S.
first by reassigning allotment deficits to
Harmonized Tariff Schedule; 19 CFR
imports of raw cane sugar, second by
Part 2001, Subpart A]
increasing the refined sugar quota, and
third by increasing raw cane sugar quota.
[Sec. 1303(i)]
To protect domestic sugar prices, USDA
Requires USDA to establish “orderly
No comparable provision.
Deletes House “shipping patterns”
regulated the flow of sugar imports from
shipping patterns” for major suppliers of
provision.
large quota holders (through 2005).
sugar to the U.S. market. [Sec. 1303(i)]

---

CRS-77
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The U.S.-Mexican agreement on bilateral
No comparable provision.
Expresses sense of Senate that U.S. &
Deletes Senate provision.
market access for sugar and high-fructose
Mexican governments should coordinate
corn syrup created an industry and
their sugar policies to be consistent with
government task force to address
U.S. international commitments, to avoid
problems that might arise after the
disruptions of each country’s sweetener
elimination of tariffs on sweeteners on
markets (sugar and high-fructose corn
January 1, 2008. [Exchange of Letters
syrup). [Sec. 1505]
between USTR and Mexico’s Secretariat
of Economy, July 27, 2006]
The U.S. withdrew from the International
Requires the Secretary of Agriculture to
Similar to the House bill.
Adopts House provision. [Sec. 1402]
Sugar Organization (ISO) in 1992
work with the Secretary of State to
[Sec. 1504]
because of opposition to the allocation of
restore U.S. membership in the ISO
country contributions to ISO’s budget.
within one year. [Sec. 1302]
TITLE II: CONSERVATION
Program Definitions and Funding
Sec. 1201 of the Food Security Act of
No provisions.
Adds definitions of beginning farmer or
Adopts Senate provision with changes.
1985 (FSA) (P.L. 99-198, or the 1985
rancher, Indian tribe, nonindustrial
Removes the test of net worth. Adopts
farm bill), as amended, defines 18 terms.
(Note: some terms added by the Senate
private forest land, socially
the 1990 farm bill definition of a socially
[16 U.S.C. 3801]
bill in this section are defined for specific
disadvantaged farmer or rancher, and
disadvantaged farmer or rancher, with
conservation programs, as noted below.)
technical assistance. Authorizes USDA
changes to define farm, integrated pest
to employ a test of net worth or other
management, person and legal entity, and
measure to qualify. [Sec. 2001]
livestock. [Sec. 2001]
Sec. 1241(a) of the FSA, as amended,
Extends reauthorization through FY2012
Extends reauthorization through FY2012
Extends reauthorization through FY2012
authorizes mandatory funding through
with funding specified for CSP, FPP,
with funding specified for CSP, FPP,
with the following in additional new
FY2007 to carry out various conservation
EQIP, and WHIP. [Sec. 2401(a)]
EQIP, WHIP, GRP, and the Voluntary
budget authority: CSP ($1.1 billion);
programs. [16 U.S.C. 3841]
Public Access and Habitat Incentives
EQIP ($3,393 million); and FPP ($773
Program. [Sec. 2401(a)]
million). [Sec. 2701]
Note: Authorized funding levels for
various programs is provided in
individual program sections below.
Highly Erodible and Wetland Conservation
Secs. 1211-1212 of the FSA, as amended,
No comparable provision.
Adds a second level of review by the
Adopts Senate provision, providing for
makes violators of the conservation
state or district director, with technical
review of good faith determinations
compliance program ineligible for certain
concurrence from USDA’s Natural
related to highly erodible land
program benefits, with some exceptions
Resources Conservation Service (NRCS)
conservation. [Sec. 2002]

---

CRS-78
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
from full loss of eligibility. [16 U.S.C.
if the Secretary has determined that this
3811-3812a and 3812f]
exception should apply. [Sec. 2101]
Secs. 1221-1222 of the FSA, as amended,
No comparable provision.
Add a second level of review by the state
Adopts Senate provision, providing for
makes swampbuster ineligible for certain
or district director, with technical
review of good faith determinations
program benefits, with some exceptions
concurrence from NRCS if the Secretary
related to wetland conservation.
from full loss of eligibility. [16 U.S.C.
has determined that this exemption
[Sec. 2003]
3821-3824, and 3822h]
should apply. [Sec. 2201]
Comprehensive Conservation Enhancement Program
The 1990 farm bill amended Sec. 1230 of
No comparable provision. (Note:
Deletes Section 1243 in prior law, and
Does not reauthorize the CCEP. The
the FSA to establish a program later
Amendments to Sec. 1243 described
moves some provisions, amended, into
Healthy Forest Reserve Program is
renamed the Comprehensive
below in the “other conservation
this (and other) sections. Extends CCEP
retained in the forestry title [Sec. 8205];
Conservation Enhancement Program
programs” subsection .)
through FY2012. Makes changes that
the county acreage cap is addressed
(CCEP). The CCEP, which includes the
reduce administrative burdens, streamline
elsewhere [Sec. 2708]. The agreement
Conservation Reserve Program (CRP),
the application process, and promote
adopts a provision to exclude CREP
Wetlands Reserve Program (WRP), and
partnerships. Deletes EQIP from CCEP
acreage and continuous CRP acreage
the Environmental Quality Incentives
and adds the Healthy Forests Reserve
from the 25% cap if the county
Program (EQIP), promotes long-term
Program. Adds a new exception whereby
government concurs, and further
protection for environmentally sensitive
USDA may exceed the enrollment
specifies this provision is separate and
lands through easements and technical/
limitation when a state or local regulation
distinct from the existing waiver
financial assistance. [16 U.S.C. 3830]
prohibits agricultural water use, requiring
authority. [Sec. 2106] Additional
USDA to enroll the land within 180 days
guidance is provided in the Managers
Note: Administration of CCEP, the
of receiving a request and pay a rental
statement.
subject of Sec. 1243, is described below.
rate that reflects the rate prior to
implementing the regulation. [Sec. 2301]
The 1990 farm bill amended Sec. 1243 of
Amends administration provisions by
Amends to streamline application
Adopts House provision with changes
the FSA to authorize administration of
moving sections on acreage enrollment
process, add new endangered species
and names the initiative the Cooperative
CCEP. Provisions include avoiding
limits, tenant protection, and obtaining
provisions, and establish new
Conservation Partnership Initiative
duplication of required conservation
technical assistance. Establishes a new
partnerships and cooperation projects for
(CCPI). [Sec. 2707] Allows USDA to
plans, limiting enrollment under CRP and
Cooperative Conservation Partnership
special projects (up to 5 years) with
make consider local circumstances, goals,
WRP to 25% of the cropland in a county,
Initiative to carry out projects/initiatives
multiple producers and eligible partners
and objectives, and provides for
protecting the interests of share croppers
using competitive (2-5 years) grants.
to address state conservation
adjustments to provide producers
and tenants, allowing approved sources
Specifies 14 criteria to be used in
recommendations. Specifies five project
preferential enrollment in the applicable
to provide technical assistance, and using
reviewing applications and 9 project
purposes, lists application contents, and
program as part of the special project.
up to 5% of the funds from the
priorities. Specifies duties of participant
identifies USDA’s duties and priorities
Applies to all USDA conservation
mandatory funded conservation programs
and USDA. Specifies program will be
when selecting projects (including 14
programs except CRP, WRP, FPP and
to foster cooperation through
funded with 10% of funds for CSP,
priority water project areas); also requires
GRP. The stated intent is to provide for
partnerships. [16 U.S.C. 3844]
EQIP, and WHIP. The federal share for
monitoring and evaluation. Specifies
applications that include innovative

---

CRS-79
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
each project will be at least 75% of costs;
funding of 10% of the mandatory funds
combinations of covered initiative
90% of the funds will be allocated at the
allocated to each state (except CRP, CSP,
programs, and applications that might
state level (incentives and bonus
WRP, and the new Conservation
work in tandem with the enhancement
payments may be used for specified
Stewardship Program), with 75% of
programs under CRP or WRP. Additional
purposes). Limits administrative costs to
funds for intra-state and 25% for multi-
guidance is provided in the Managers
5% of any grant. [Sec. 2403]
state projects. [Sec. 2405]
statement.
Conservation Reserve Program
Sec. 1231(a-d) of the 1985 farm bill
Extends authorization through CY2012;
Extends authorization through CY2012.
Extends authorization through CY2012,
(FSA) authorizes the CRP; the program is
retains current acreage enrollment limit
Retains current acreage enrollment limit.
and allows USDA to address issues under
currently authorized through CY2007 at
(39.2 million acres). [Sec. 2101(a-b)]
Adds pollinator habitat to the general
State, regional, and national conservation
39.2 million acres. [16 U.S.C. 3831(a-d)]
purposes. Expands eligible land to
initiatives. Caps enrollment at 32 million
include some types of marginal pasture-
acres [Sec. 2103]. Clarifies that alfalfa
land and land enrolled in a new flooded
grown as part of a rotation practice is a
farmland program. [Sec. 2311(a-c)]
commodity for crop history purposes.
[Secs. 2101-2102, 2105] Provides for
pollinator habitats. [Secs. 2706, 2708]
Sec. 1231(f) of the FSA, as amended,
Deletes states but retains Chesapeake Bay
Similar to the House bill; also adds to the
Adopts House provision to include all
lists priority areas as the Chesapeake Bay
region. [Sec. 2101(b)]
list the prairie pothole region, the Grand
States that make up the Chesapeake Bay
region (PA, MD, VA) , the Great Lakes
Lake St Mary’s Watershed, and the
Region as the Conservation Priority Area.
Region, and Long Island Sound. [16
Eastern Snake Plain Aquifer. [Sec.
[Sec. 2104]
U.S.C. 3831f]
2311(d)]
Sec. 1231(h) of the FSA, as amended,
Extends program through CY2012. [Sec.
Extends program through CY2012;
Adopts Senate provision with changes.
authorizes a one million acre pilot
2101(e)]
expands eligibility to include certain
amendment. Enrollment is capped at
program within the CRP for wetlands and
shallow water areas and certain
100,000 acres in any State and 1 million
buffer areas. [16 U.S.C. 3831h]
agricultural drainage water treatment
acres total. Adds conforming changes to
collection areas, and expands the eligible
the Emergency Forestry Conservation
buffer acreage. Directs USDA to
Reserve Program. Expands enrollment
establish the maximum size of the buffer
of wetland and buffer acreage to include
acreage to be enrolled along with eligible
land that had been cropped during 3 of
lands. Increases the maximum wetland
10 crop years prior to 2002 and after
size to 40 contiguous acres and makes all
1990 and is subject to a natural overflow
acres eligible for payment. [Sec. 2311(e)]
of a prairie wetland. [Sec. 2106]
Sec. 1232(a)(7) of the FSA, as amended,
Allows managed haying and grazing to
Allows managed haying and grazing to
Adopts House provision with changes,
specifies a duty of participants is limiting
control invasive species, and adds detail
control invasive species and permits
allowing for routine grazing, including
commercial uses, including haying and
on allowed uses, enrolled lands, and
managed haying and grazing that is a part
grazing to control invasive species.
grazing on enrolled lands; allows
adjustments to annual contract payments.
of a conservation plan. [Sec. 2311(h)]
Additional guidance is provided in the

---

CRS-80
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
managed haying/grazing under certain
[Sec. 2101(f)]
Managers statement. [Sec. 2108] Grants
circumstances. [16 U.S.C. 3832a(7)]
“management on land” should not result
in a reduced payment, if done in
accordance with the contract. [Sec. 2107]
Sec. 1234(c) of the FSA, as amended,
Requires USDA to conduct and make
Similar to the House bill; also requires
Requires USDA to survey annually the
establishes a framework for calculating
available an annual survey of dryland and
USDA to give preference to local owners
per acre estimates of county cash rents
annual rental payments. [16 U.S.C.
irrigated cropland cash rental rates in all
or operators when considering competing
paid to contract holders, and requires that
3834c]
counties with more than 20,000 acres of
offers providing equivalent benefits.
USDA give priority to offers from local
crop and pasture land. [Sec. 2101(g)]
[Sec. 2311(j)]
residents if conservation benefits are
equivalent among offers. [Sec. 2110 ]
Sec. 1235(e) of the FSA, as amended,
Allows USDA to terminate any contract
Allow USDA to terminate a contract if a
Adopts House provision. [Sec. 2111]
allows USDA to terminate CRP contracts
after 5 years, but prohibits terminating
retired or disabled producer has endured
after 5 years if contract was in effect
contracts for land enrolled under a
financial hardship because of taxes on
before 1/1/95. [16 U.S.C. 3835e]
continuous signup. [Sec. 2101(i) and (j)]
rental payments. [Sec. 2311(k)]
No comparable provision.
No comparable provision.
No comparable provision.
Specifies a 50% federal share of cost
sharing payments relating to trees,
windbreaks, shelterbelts, and wildlife
corridors. [Sec. 2109]
The 2002 farm bill amended Sec. 1244(a)
Facilitates the transfer of CRP land from
No comparable provision.
Adopts House provision with
of the FSA to authorize USDA to provide
a retiring owner to a beginning / socially-
modifications. [Sec. 2111]
incentives to beginning farmers/ranchers
disadvantaged producer to return land to
(Note: Support for socially disadvantaged
and Indian tribes to participate in con-
production, and allows new owner to
and limited resource farmers/ranchers are
servation programs. [16 U.S.C. 3844(a)]
begin land improvements or start organic
in other bill sections.)
certification process one year before CRP
contract expires. [Sec. 2101(h)]
No comparable provision.
No comparable provision.
Creates new Flooded Farmland Program
Deletes this section and modifies CRP
for the Prairie Pothole region within the
and WRP to accomplish the intent of the
CRP. Allows continuous enrollment.
Senate amendment, including expanding
Eligible land parcels must exceed 5 acres,
eligible lands under the CRP pilot
been incapable of production preceding 3
program for wetlands and buffer areas
crop years, have a cropping history, and
[Sec. 2106] and expands eligible lands
have no natural outlet. [Sec. 2312]
under WRP. [Sec. 2201]
No comparable provision.
No comparable provision.
Creates new Wildlife Habitat Program
Deletes this section and modifies CRP to
for CRP participants with established
accommodate the intent of the Senate
softwood pine stands using management
amendment. Additional guidance is

---

CRS-81
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
practices that benefit wildlife (contracts
provided in the Managers statement.
up to 5 years). Program ends September
30, 2011. [Sec. 2313]
Wetlands Reserve Program
The 1996 farm bill amended Sec. 1237(a)
Adds to the purposes to create and to
No comparable provision.
Amends purposes to restore, protect, or
of the FSA to authorize WRP, stating its
enhance wetlands, and to purchase
enhance wetlands on private or tribal
purpose to restore and protect wetlands.
floodplain easements. [Sec. 2102(a)]
lands. [Sec. 2201]
[16 U.S.C. 3837a]
Sec. 1237(b) of the FSA, as amended,
Sets maximum enrollment at 3.605
Sets annual fiscal year enrollment goal of
Sets maximum enrollment at 3.041
sets maximum enrollment at 2.275
million acres. Sets an annual fiscal year
250,000 acres, with no enrollment after
million acres. Sets annual fiscal year
million acres, with an annual calendar
enrollment goal of 250,000 acres, of
FY2012. [Sec. 2321]
enrollment goal of 250,000 acres through
year enrollment goal of 250,000 acres.
which not more than 10,000 acres may be
FY2012. [Sec. 2202-2203]
[16 U.S.C. 3837b]
flood plain easements. [Sec. 2102(b)]
New section adds language authorizing
WRP from FY2008-12. [Sec. 2402(h)]
Sec. 1237(c) of the FSA, as amended,
Adds riparian areas to eligible wetlands,
Expands eligible lands under WRP to
establishes requirements for eligible
and makes eligible floodplain land
include cropland or grassland that was
lands through 2007. [16 U.S.C. 3837c]
flooded in the past calendar year or at
used for agricultural production prior to
least twice in the past 10 years, and land
flooding from the natural overflow of a
that contributes to flood water storage,
closed basin lake or pothole. [Sec. 2203]
flow, or erosion control. [Sec. 2102(c)]
Adds terms to “meet habitat needs of
specific wildlife species.” [Sec. 2204]
Sec. 1237(e) of the FSA, as amended,
Expands ineligible lands to include
No comparable provision.
Expands ineligible lands to include
identifies ineligible land to include lands
floodplains where restoration practices
farmed wetland or converted wetland,
already planted to timber in the CRP. [16
would not be productive or the land is
together with the adjacent land that is
U.S.C. 3837e]
already protected. [Sec. 2102(d)]
functionally dependent on the wetlands,
except wetlands converted before
December 23, 1985. [Sec. 2203]
Sec. 1237A(f) of the FSA, as amended,
Limits compensation to lowest of 4
Limits compensation to lowest of 3
Adopts House provision with changes,
states compensation to be paid in cash (in
options: percentage of the fair market
options: an amount necessary to
revising the process for determining the
5 to 30 payments) and not to exceed the
value; percentage of market value
encourage enrollment; a limit for a
value of easements and contracts by
fair market value, as reduced by the
determined by a survey; a geographic
geographic area; or a landowner’s offer.
requiring USDA to provide the lowest
easement. [16 U.S.C. 3837a(f)]
cap; or a landowner’s offer. Allows
Compensation may be in 1 to 30
amount of compensation based on a
USDA to use non-federal contributions to
payments. [Sec. 2322(b)(3-4)]
comparison of the fair market value of
administer program [Sec. 2102(e)]
the land, a geographic cap, or an offer

---

CRS-82
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
made by the landowner. Provides that
easements with values less than $500,000
be paid out over 1-30 years; easements
with values greater than $500,000 are to
be paid out over 5-30 years. [Sec. 2208]
Provides for the repeal of payment
limitations (exception for State
agreements for new Wetlands Reserve
Enhancement Program. [Sec. 2209]
Sec.1237C(c) of the FSA, as amended,
Adds new additional criteria for ranking
No comparable provision.
Adopts House provision. [Sec. 2207]
lists three considerations USDA is to use
offers (conservation benefits; cost-
when considering offers for WRP
effectiveness; and offer of a financial
contracts. [16 U.S.C. 3837c(c)]
contribution) and conservation benefits
of floodplain lands. [Sec. 2102(f)]
Sec. 1237D(c)(4) of the FSA, as
Replaces provision with a new language
Authorizes a Wetlands Reserve
Adopts Senate provision authorizing
amended, waives limits for public entities
on Wetland Reserve Enhancement
Enhancement Program (WREP). Makes
WREP for agreements with States similar
receiving payments through the wetland
program, where states contribute funds so
a conforming change to allow payments
to CREP. Authorizes a Reserved Rights
and environmental enhancement
as to increase payments. [Sec. 2102(g)]
for 30-year contracts. [Sec. 2322(c)]
Pilot program. [Sec. 2205-2206]
programs. [16 U.S.C. d(c)(4)]
No comparable provision.
No comparable provision.
Requires a report to House and Senate
Adopts Senate provision. [Sec. 2210]
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 the FSA to
Establishes a new CSP for FY2012-2017.
Authorizes through FY2012 a new CSP
Defines program terms for the new CSP.
establish the Conservation Security
Eligible producers must submit an offer
as a conforming amendment, and
Adopts elements of the Senate provision.
Program (CSP) for FY2003-11. Defines
addressing “at least one priority resource
reauthorizes current CSP for existing
Expands eligible lands to include
eligible producers and eligible lands and
of concern to a minimum level of
contracts only. Future CSP contracts
nonindustrial private forest land (limited
excluded lands (land enrolled in
management intensity.” Eligible land
would be replaced by a Comprehensive
to not more than 10% of total annual
multiyear land retirement programs and
excludes incidental forest land. Limits
Stewardship Incentives Program
acres under the program). Permits 5-year
land not in crop production at least 4 of
program to one type of contract of 5
consisting of a Conservation Stewardship
extension of contracts. Excludes under
the preceding 6 years). Specifies terms
years; describes five elements to be in all
Program with similar provisions of the
the program, land used for cropland that
for 3 tiers of conservation contracts.
contracts, but eliminates list of topics to
existing CSP and EQIP. Eligible land
had not been planted, considered to be
Identifies topics that may be addressed in
be addressed. Prohibits termination of
must have been planted to crops 4 of
planted, or devoted to crop production
contracts. Contracts are 5 years under tier
contracts, without penalty, by a producer
preceding 6 years. Specifies contract are
for 4 of the 6 years prior to the date of
1, and 5 to 10 years under tiers 2 and 3.
who is required to modify a contract.
for 5 years, with renewal under certain
enactment of the act (unless the land had

---

CRS-83
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Specifies circumstances and requirements
Allows contracts to be renewed for one
conditions. Allows for terminating and
previously been enrolled in CRP; had
for modifying, terminating, and renewing
additional 5 year period. Adds new
changing contracts. Specifies how to
been maintained in a long term crop
contracts. Contracts may be renewed for
provisions on evaluating offers from
evaluate contract offers, producer duties,
rotation; or was incidental land needed
5 to 10 years. Defines 15 terms
organic producers. Defines twelve terms
enhancement terms, and supple-mental
for efficient operation). [Sec. 2301]
pertaining to the program.
that are new terms or differ from prior
payments. Defines 15 terms. [Secs.
[16 U.S.C. 3838]
law. [Sec. 2103(a)]
2391 and 2341]
Secs 1238A(d-3) of the FSA, as
Limits program to 1 type of contract of 5
Defines eligible land and eligible
Adopts Senate provision with
amended, specifies terms for 3 tiers of
years and describes 5 elements to be in
producers; land must have been planted
modifications. Authorizes supplemental
conservation contracts. Identifies topics
all contracts, but eliminates list of topics
to crops 4 of preceding 6 years. Contents
payments for producers who adopt a
that may be addressed in contracts.
to be addressed. Contracts could no
of contracts are specified and are for 5
beneficial crop rotation that provide
Contracts are 5 years under tier 1, and 5
longer be terminated, without penalty, by
years, with renewal if certain conditions
significant conservation benefits and are
to 10 years under tiers 2 and 3. Specifies
a producer who is required to modify a
are met. Specifies considerations in
not limited to a particular crop, cropping
circumstances and requirements for
contract. Contracts may be renewed for
evaluating contract offers, producer
system, or region of the country. Allows
modifying, terminating, and renewing
1 additional 5 year period. New
duties, enhancement terms, and
for on-farm conservation research and
contracts. Contracts may be renewed for
provisions on evaluation of offers and
supplemental payments. Adds provisions
demonstration activities and pilot-testing
5 to 10 years [16 U.S.C. 3838a(d-e)]
coordination with organic certification
on terminating and changing contracts.
as part of contract offers. Allows for
are added. [Sec. 2103(a)]
[Sec. 2341]
contract modification. [Sec 2301]
Sec. 1238C of the FSA, as amended,
Alters duties of the Secretary to include
Alters duties of the Secretary to allow for
Provides that state acreage allocations be
specifies that duties of the Secretary
identification of priority resources of
continuous enrollment (allowing a
based on each state’s proportion of
include making payments early in each
concern at the state level (limited to 5
producer to apply at any time during the
eligible acres to the total eligible acres
fiscal year, the components of payments
concerns in any geographic area of a
year), providing assistance to producers,
nationwide (available to all producers,
for each tier, annual payment limits for
state). Limits total payments under a
and maintaining contract and payment
not only specific watersheds/geographic
each tier ($20,000 for tier 1, $35,000 for
contract to $150,000 (5 years); allows
information that will support program
regions), allowing for input from USDA.
tier 2, and $45,000 for tier 3), minimum
for the environmental needs associated
monitoring and evaluation, and enabling
Directs USDA to adopt continuous
requirements for practices, and
with agriculture to be considered in state
specialty crop producers to participate.
enrollment, but allows for USDA to
requirements for implementing
allocations; requires USDA to compile
Specifies an acreage allocation, limiting
determine when to rank applications.
regulations [16 U.S.C. 3838c]
data of specified program contract and
payments to $240,000 (6-year).
Directs USDA to provide technical
payment topics. [Sec. 2103 (a)]
[Secs. 2391 and 2341]
assistance to specialty crop and organic
producers. Directs USDA to encourage
producers who are transitioning from
land retirement programs to enroll in
CSP and other working lands programs.
Limits payments to $200,000 in any 5-
year period. [Sec. 2301]
No comparable provision.
No comparable provision.
Provides for enrollment of up to 79.628
Deletes Senate provision. Enrolls an
million acres and attempted annual
additional 12.8 million acres annually
enrollment of 13.273 million acres,
FY2008-2017. [Sec. 2301]
nationwide and at a average annual cost

---

CRS-84
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
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
Deletes Senate provision. Directs USDA
180 days of enactment. [Sec. 2341]
to promulgate regulations. [Sec. 2301]
Sec. 1241(a)(3) of the FSA, as amended,
Prohibits any new contracts under the
Prohibits any new contracts under the
Adopts Senate provision. The Manager’s
authorizes mandatory funding for the
terms of the 2002 CSP, such that no new
terms of the 2002 CSP, such that no new
report states that the bill provides for a
CSP at $1.954 billion for FY2006-10 and
CSP contracts may be entered into after
CSP contracts may be entered into after
$1.1 billion increase in budget authority
$5.65 billion from FY2006-15. [16
October 1, 2007 (although payments may
October 1, 2007 (although payments may
above current baseline (FY2008-2017).
U.S.C. 3841(a)(3)]
be continued until contracts expire). For
be continued until contracts expire).
Provides such sums as necessary to carry
contracts signed before 10/1/07, provides
Authorizes $2.3 billion in mandatory
out existing CSP contracts. [Sec. 2701]
a total of $1.5 billion in mandatory
funding for contracts entered into before
funding for FY2007-12, and $1.9 billion
the date of enactment, (available until
for FY2012-17. For contract signed after
spent) and an unspecified amount for the
10/1/11, provides $0.5 billion for
new CSP (enrollment in the new program
FY2012 and $4.6 billion for FY2012-17.
is measured in acres rather than dollars).
[Sec. 2401(b)]
[Sec. 2401(a)(3-4)]
Environmental Quality Incentives Program
The 1996 farm bill amended Sec. 1240 of
Adds forest management and organic
Adds forest management to the statement
Adds forest management to purposes,
the FSA to authorize EQIP, stating its
transition to the program purposes.
of program purposes, and recognizes
and adds language regarding forest lands
purpose as promoting production and
Revises the descriptions of 2 of the 5
pollinators and fuels management in the
on EQIP program plan and duplication.
environmental quality as compatible
purposes to recognize energy
amplifying statements. [Secs. 2351,
[Secs. 2505-2506] Adopts the Senate
goals, and optimizing environmental
conservation and conservation on forest
2352, and 2354] Adds aquaculture to the
provisions with an amendment to modify
benefits by working in 5 specified areas.
lands. [Sec. 2105(a)] Adds forestry,
“eligible land” definition; forestry is
eligible land. [Sec. 2502] Allows for
[16 U.S.C. 3839aa] Defines 6 terms:
forest management practices, and
added to the “land management
technical assistance to farmers that
beginning farmer or rancher, eligible
coordinated implementation to the “land
practice” definition; adds conservation
promote pollinator habitats, and farmers
land, land management practice,
management practice” definition. Adds
planning practices to “practices;” defines
transitioning to organic farming, among
livestock, practice, and structural
alpacas and bison to the “livestock”
“producer” to include custom feeding
activities. [Sec. 2501] Further clarifies
practice.
definition. Adds definitions of
businesses and contract growers; and
duties of the Secretary. [Sec. 2507]
“integrated pest management” and
adds firebreaks to “structural practice.”
“socially disadvantaged farmer or
[Sec. 2352]
rancher.” [Sec. 2105(b)]
Sec. 1240B(a-c) of the FSA, as amended,
Reauthorizes through FY2012. Expands
Reauthorizes through FY2012. Expands
Reauthorizes through FY2012. Limits
authorizes EQIP through FY2010.
types of eligible practices to include
permitted practices to include
payments to 75% of costs. [Sec. 2503]
Eligible practices are defined. Contracts
organic certification using technical
conservation planning. Limits contracts
Lowers individual payment limits from

---

CRS-85
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
are 1 to 10 years. [16 U.S.C. 3839aa-
services from approved providers, and
to a maximum of 5 years. Removes
$450,000 to $300,000 during any 6-year
2(a-c)]
improved energy efficiency, renewable
prohibitions on bidding down. [Sec.
period , except in cases of special
energy systems. [Sec. 2105(c)]
2353(a-c)]
environmental significance (including
projects involving methane digesters),
allowing USDA to raise the limit to not
more than $450,000. [Sec. 2508]
Directs USDA to develop criteria for
evaluating applications to address
national, State, and local conservation
priorities, allowing for prioritization and
grouping of applications based on cost-
effectiveness, how address the designated
resource concern(s), how best fulfills the
purpose of EQIP, and if improves conser-
vation practices or systems. [Sec. 2504]
Sec. 1240B(d)(2) of the FSA, as
Sets the federal cost share at 90% for
Sets the federal cost share at 90% for
Adopts Senate proposal. [Sec. 2503]
amended, allows limited resource and
socially disadvantaged producers.
socially disadvantaged producers.
beginning producers to receive not more
Provides increased federal cost-share of
Allows for advanced payments to
than a 90% federal cost share. [16 U.S.C.
90% for using gasifier technology for
purchase materials and contracting. [Sec.
3839aa-2(d)]
certain purposes. [Sec. 2105(d-e)]
2353(c)]
Sec. 1240B(e) of the FSA, as amended,
Expands purposes for incentive
Expands purposes receiving special
Adopts House provision. [Secs. 2503.
provides incentive payments to perform
payments: (1) receiving technical
emphasis to include predator species
2706 and 2708] Includes special rule
land management practices, with special
services from approved third party
protected under the Endangered Species
that USDA may accord significance to
emphasis given to practices that promote
providers, (2) developing a
Act, gray wolves, grizzly bears, and
practices promoting residue, nutrient, air
specified goals. [16 U.S.C. 3839aa-2(e)]
comprehensive nutrient management
black bears. [Sec. 2353(c)(3)]
quality, pest, and invasive species
plan, and (3) implementing energy
management; pollinator habitat; and
efficiency and renewable energy
animal carcass management technology.
projects. Pollinator habitats will receive
The conference report recognizes as
special emphasis. [Sec. 2105(f)]
consistent with the purposes of EQIP
options to deter predators protected by
the Endangered Species Act, and also
delisted populations.
Sec. 1240B(g) of the FSA, as amended,
Extends through FY2012 the 60% of
Similar to the House bill.
Extends through FY2012 the 60% of
requires that 60% of payments go to
payments to livestock production
[Sec. 2353]
payments to livestock production
practices related to livestock production
requirement. [Sec. 2105(g)(2)]
requirement. [Sec. 2503]
requirement. [16 U.S.C. 3839aa-2(g)]

---

CRS-86
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
Requires USDA to reserve at least 5% of
Amends the cost-share rate exception for
Adopts Senate provision for advance
program funds for beginning and socially
beginning and socially disadvantaged
payments for beginning, socially
disadvantaged producers for at least 90
farmers or ranchers to allow variable
disadvantaged and limited resource
days after the program funds have been
payment, not to exceed 90%, and
farmers or ranchers and deletes
made available. [Sec. 2105(g)]
authority to provide advance payments
Senate provision for guaranteed loan
up to 30% for the purchase of materials
eligibility. Adopts Senate provision with
or contracting. [Sec. 2353]
an amendment for cost-share rates and
advance payments for beginning, socially
disadvantaged, and limited resource
farmers or ranchers. [Sec. 2503]
No comparable provision.
No comparable provision.
Gives priority to improving water
Deletes Senate provision.
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
Expands ‘producer’ eligibility to include
Adopts Senate provision with an
and custom feeders. [Sec. 2105(h)]
a custom feeding business and a contract
amendment to modify eligible land.
grower or finisher. [Sec. 2352]
[Sec. 2502]
Sec. 1240C of the FSA, as amended,
Identifies 5 priorities for program
Adds a higher priority for improving
Adopts House provision with changes to
gives higher priority for participation in
applications. Specifies a streamlined
conservation practices or systems in
prioritize State, regional, or local
EQIP to producers using cost-effective
evaluation process for operations with
place at the time of the contract offer.
resource concerns, and to allow for the
conservation practices and practices that
substantial and sound environmental
[Sec. 2354]
grouping of applications of similar
address national conservation priorities.
management systems involving a limited
agriculture operations. [Sec. 2502]
[16 U.S.C. 3839aa-3]
number of practices. [Sec. 2105(i)]
Sec. 1240E of the FSA, as amended,
Adds to the planning requirements the
Includes forestry language similar to
Adopts House forestry provision [Sec.
defines the general contents of a
need to be consistent with forest plans,
House bill, but also allows a producer
2502], but strikes Senate provision on
producer’s EQIP plan, and calls on
and allows as an acceptable plan
organization to act on behalf of its
producer organizations.
USDA to avoid duplication with other
consideration of an air or water quality
membership in submitting applications or
conservation plans. [16 U.S.C. 3839aa-5]
permit that meet regulatory requirements
conducting similar activities to facilitate
as an acceptable plan. [Sec. 2105(k)]
program participation. [Sec. 2356] Also
establishes a Chesapeake Bay Watershed
Conservation Program under EQIP to
assist producers in applying conservation
practices on agricultural/nonindustrial
private forestland in the Bay watershed to
address natural resource concerns related
to agriculture, funded at $165 million for

---

CRS-87
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
FY2008-12. [Sec. 2361]
Sec. 1240F of the FSA, as amended,
Lists 3 criteria that must be met before
No comparable provision.
Deletes House provision.
provides for USDA funding, information,
USDA can provide assistance for
and training to develop and implement
practices with a primary purpose of water
conservation plans. [16 U.S.C. 3839aa-6]
conservation. [Sec. 2105 (l)]
Sec. 1240H of the FSA, as amended by
Adds to the Conservation Innovation
Adds to the Conservation Innovation
Adopts House provisions related to forest
the 2002 farm bill, provides for a
Grants provisions under EQIP. Adds
Grants provisions under EQIP. Adds
resource management and air quality.
competitive grants program within EQIP,
detail on qualities of eligible projects,
nonindustrial private forest lands to the
Provides $37.5 million annually
on a matching basis, to implement
establishes a pilot program for
list of potential recipients of innovative
(FY2009-2012) to implement air quality
innovative conservation practices;
conservation planning in the Chesapeake
technologies. Adds two items to the list
plans. [Sec. 2509] The conference
examples listed are using market systems
Bay watershed, and adds a new
of examples: (1) transfers of innovative
report states conservation programs
in pollution reduction, and using
subsection to assist producers who are
technologies to nonindustrial private
should recognize the use of innovative
innovative practices, such as storing
meeting state and local regulatory air
forest land in production, and (2)
technology such as enhanced efficiency
carbon in soil; no funding is specified.
quality requirements. Provides funding
assistance for specialty crop production.
fertilizers.
[16 U.S.C. 3839aa-8]
from EQIP: $30 million (FY2008) rising
[Sec. 2358]
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
Replaces GSWCP with a Regional Water
Maintains GSWCP and provides an
Replaces GSWCP with the Agricultural
the 2002 farm bill, creates a Ground and
Enhancement Program to address water
increase in funding from $60million to
Water Enhancement Program (AWEP)
Surface Water Conservation Program
quality, make eligible governmental
$65 million annually. Provides funding
under EQIP. Provides mandatory
(GSWCP) within EQIP for activities that
entities (including irrigation and water
for each state that received funding under
funding: $73 million annually (FY2009-
will result in a net savings of ground or
districts) and Indian tribes, and to
the program in previous years (simple
2010), $74 million (FY2011), and $60
surface water; lists 6 types of eligible
implement program on a regional scale
average of funds provided for FY2002-
million annually (FY2012 and each year
activities (improve irrigation systems, for
through cooperative agreements.
2007 or the amount provided in 2007,
thereafter). Recognizes the purpose as
example), and provides mandatory
Expands the list of eligible activities and
whichever is greater), except for states
addressing water quality/quantity
funding of $25 million in FY2002,
requires the Secretary to identify priority
over the Ogallala Aquifer, which will
concerns on agricultural land, with the
growing to $60 million annually in
areas. Lists 5 priority areas, which
receive not less than the greater of $3
role of AWEP partners as leveraging
FY2004-07. [16 U.S.C. 3839-aa-9]
together may receive no more than 50%
million or the average of funds provided
federal funds and encouraging producers
of the available funds. Establishes a
for FY2002-2007. Provides at least $20
to address these concerns. The Managers
process for soliciting/selecting proposals
million for the Eastern Snake Plain
report emphasizes the importance of
and developing implementation
Aquifer. [Sec. 2359]
addressing groundwater management in
agreements. Provides mandatory funds
the Ogallala region, promoting water use
of $60 million annually through FY2012
efficiency projects, converting irrigated
(limits administrative expenses to no
farming operations to a dryland farming;
more than 3% of the total). [Sec. 2106]
and providing assistance to construct
onfarm reservoirs/irrigation ponds in
drought-stricken areas. Identifies six

---

CRS-88
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
priority areas: The Eastern Snake Plain
Aquifer region, Puget Sound, the
Ogallala Aquifer, the Sacramento River
watershed, Upper Mississippi River
Basin, the Red River of the North Basin,
and the Everglades. [Sec. 2510] Follows
same payment limits as under EQIP.
[Sec. 2508] Provides for a transition
period for the existing GSWCP through
September 30, 2008. [Sec. 2903]
Sec. 1240I(c)(2) of the FSA, as amended
Lists the Klamath River basin as one of
No comparable provision.
Deletes House provision.
by the 2002 farm bill, provides $50
the 5 listed priority areas under the
million to carry out water conservation
Regional Water Enhancement Program.
(Note: The Klamath Basin is listed as 1 of
activities in the Klamath River basin
[Sec. 2106 (b)(2)]
14 priority areas in the Partnerships and
(OR, CA) [16 U.S.C. 3839aa-9(c)(2)]
Cooperation Program; see above.)
No comparable provision.
No comparable provision.
Adds program at end of EQIP to assist
Adopts Senate provision. Includes
farmers who are converting to organic
organic practices as eligible management
production (with contracts of 3-4 years).
systems and limits payment to an
Payments are limited to $20,000 per year.
aggregate of $80,000 in any 6-year
[Sec. 2360]
period. [Secs. 2501 and 2503]
Sec. 1241(a)(6) of the FSA, as amended,
Authorizes EQIP funding: $1.25 billion
Authorizes EQIP funding: $1.27 billion
Provides additional budget authority.
authorizes EQIP funding, rising from
(FY2008), $1.6 billion (FY2009), $1.7
annually (FY2008-09), $1.3 billion each
Authorizes EQIP funding: $1.2 billion
$0.4 billion in FY2002 to $1.3 billion in
billion (FY2010), $1.8 billion (FY2011),
(FY2010-FY2012). [Sec. 2401(a)(7)]
(FY2008); $1.337 billion (FY2009);
FY2010. [16 U.S.C. 3841(a)(6)]
and $2 billion (FY2012). [Sec. 2401(d)]
$1.45 billion (FY2012); $1.588 billion
(FY2011); and $1.75 billion (FY2012).
[Sec. 2701]
Farmland Protection Program
The 1996 farm bill amended Sec. 1238H
Reauthorizes program, and renames to
Reauthorizes the program. Modifies
Reauthorizes the program through 2012,
of the FSA to authorize the Farmland
Farm and Ranchland Protection Program
definition of eligible forest land, and
but does not rename program. Changes
Protection Program (FPP), defining
(FRPP). Expands eligible land definition
makes eligible other land that is needed
administrative requirements, appraisal
eligible entity, land, Indian tribes, and
to include historic and archaeological
for efficient administration of an
methodology, and terms and conditions
programs. [16 U.S.C. 3838h-i] The
resources. States will be certified
easement. Changes purpose of program
of cooperative agreements. Adopts
program, as amended, provides for the
(reviewed every 3 years) to participate
from protecting topsoil to “protecting
terms/conditions for cooperative
purchase of conservation easements to
and receive program funds based on 4
agricultural use and related conservation
agreements similar to Senate provision.
protect topsoil by limiting the land’s
listed requirements. States may spend up
values.” Adds new requirements for
Clarifies the purpose of the program as
nonagricultural uses subject to a pending
to 10% of funds for administrative costs.
cooperative agreements with participants,
protecting land for agricultural use by

---

CRS-89
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
offer. The federal cost may not exceed
Lists terms and conditions for agreements
cost-sharing, and protection of the federal
limiting nonagri-cultural uses. Adopts
50% of the value of the easement; the
with eligible entities (reviewed every 3
investment. Allows USDA to enter into
Senate provision to modify the definition
value of a charitable donation by the
years). Provides that USDA may require
cooperative agreements with eligible
of eligible land to include forestland and
seller may not exceed 25% of the value
a contingent right to enforce easement,
entities under certain circumstances, and
other land that contributes to the econo-
of the easement. If multiple applications
and requires the use of a conservation
requires the protection of federal invest-
mic viability of an operation. Establishes
are comparable, USDA may not use cost
plan for highly erodible cropland.
ment through an executory limitation.
a certification process similar to the
alone to determine which ones will be
Retains a federal contingent right of
Limits the amount USDA can share in
House bill for all eligible entities. To
funded.
enforcement or executory limitation in an
the costs of purchasing the easement to
become certified, entities must have the
easement to ensure its enforcement.
50% of the appraised fair market value
authority and resources to enforce
Provides cost-share assistance for
and establishes minimum amounts
easements, polices in place that are
purchasing an easement, but assistance
entities pay based on the amount of
consistent with the purposes of the
may not exceed 50% of the appraised fair
landowner contributions. Requires
program, and clear procedures to protect
market value of the easement. The fair
appraisals based on uniform standards of
the integrity of the program. Includes a
market value is determined by an
professional appraisal practice or any
limit on impervious surfaces consistent
appraisal using an industry-approved
other industry- approved standard.
with agricultural activities, and clarifies
method. [Sec. 2110]
[Sec. 2371]
agreement terms for certified and non-
certified entities. [Sec. 2401-2402]
Sec. 1241(a)(4) of the FSA, as amended,
Mandatory funding for the renamed Farm
Mandatory funding for the FPP is
Provides additional budget authority.
authorizes mandatory funding for the
and Ranchland Protection Program is
authorized at $97 million annually from
Authorizes FPP funding: $97 million
FPP at; $50 million in FY2002, $100
authorized at; $125 million in FY2008,
FY2008 through FY2012. [Sec.
(FY2008); $121 million (FY2009);
million in FY2003, $125 million in
$150 million in FY2009, $200 million in
2401(a)(5)]
$150 million (FY2010); $175 million
FY2004 and FY2005, $100 million in
FY2010, $240 million in FY2011, and
(FY2011); and $200 million (FY2012).
FY2006, and $97 million in FY2007.
$280 million in FY2012. [Sec. 2401(c)]
[Sec. 2701]
[16 U.S.C. 3841(a)(4)]
Grassland Reserve Program
The 2002 farm bill amended Sec. 1238N
Sets the GRP enrollment ceiling at an
Adds definitions: eligible entity, eligible
Adopts an acreage enrollment goal of an
of the FSA to authorize the Grasslands
additional 1.34 million acres, with at least
land, and permanent conservation
additional 1.22 million acres by 2012.
Reserve Program (GRP), setting
60% of these acres to be enrolled using
easement. Eligible entity and authority
Includes 10-, 15-, and 20-year rental
maximum enrollment for at 2.0 million
30 year rental agreements and easements.
would allow for USDA to enter
contracts and permanent easements.
acres (all enrolled parcels in at least 40
[Sec. 2104(a) and (b)]
cooperative agreements with entities to
Deletes House priority for 60% of
contiguous acres). Requires 40% of land
purchase easements. Provides for GRP
acreage in long term contracts; retains
enrolled in 10-20 year, and 60% in 30
enrollment options through a 30 year
law that 60% of funds would be
year agreements. [16 U.S.C. 3838n]
contract, 30 year easement, and
dedicated to easements, while 40% of
permanent easement. [Sec. 2381]
funds would be dedicated to short term
contracts. Adopts Senate definition of
eligible entity, authority, and eligible
land (with technical corrections). Adopts
a priority for enrollment of CRP land

---

CRS-90
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
with a modification to clarify that the
priority applies upon expiration of the
CRP contract. [Sec. 2403]
No comparable provision.
Allows USDA to transfer certain land
Allows USDA to transfer certain land
Adopts House provision regarding the
currently in the CRP into the GRP, but
currently in the CRP to be transferred to
method for determining fair market value
limits the total in any calendar year to no
a permanent easement under GRP, but
with a technical correction. [Sec. 2403]
more than 10% of GRP acres enrolled.
limits the total transferred in any calendar
Requires USDA pay the lowest of four
year to 10% of the total funding available
specified ways to calculate fair market
for the GRP in that year. [Sec. 2381]
value. [Sec. 2104(c)]
Sec. 1238O of the FSA, as amended,
No comparable provision.
Specifies landowner duties and USDA
Adopts Senate provisions with changes.
specifies the duties and requirements of
considerations in evaluating offers.
[Sec. 2403]
landowners in the GRP, terms of
Specifies how to determine compensation
easements and agreements, and how
levels and technical assistance. Specifies
applications are to be evaluated. [16
terms/conditions that apply to GRP
U.S.C. 3838o]
contracts/easements, such as permitted
and prohibited uses, minimum require-
ments for cooperative agreements, and
other considerations. [Sec. 2381]
No comparable provision.
Authorizes a Grasslands Reserve
No comparable provision.
Deletes House provision.
Enhancement Program. [Sec. 2104 (d)]
Sec. 1238Q(a) of the FSA, as amended,
Requires USDA to transfer the title of an
Provides authority for USDA to enter
Adopts the Senate amendment provision
allows USDA to transfer the title of an
easement to a private organizations or a
into cooperative agreements with eligible
for cooperative agreements between
easement in the GRP to a state or private
state. [Sec. 2104 (e)]
entities for those entities to purchase,
USDA and eligible entities with a
organization. [16 U.S.C. 3838q(a)]
own, enforce, and monitor easements.
modification to the language specifying
[Sec. 2381]
that eligible entities shall assume costs of
administering and enforcing easements.
Adopts a requirement for a contingent
right of enforcement. [Sec. 2403]
Sec. 1241(a)(5) of the FSA, as amended,
No comparable provision.
Total GRP funding limited to $240
Deletes Senate provision.
limits funding for the GRP to a total of
million for FY2008-12, with no acreage
$254 million from FY2003-07. [16
(Note: Sets acreage enrollment limit in
enrollment limit. [Sec. 2401(a)(6]
U.S.C. 3841(a)(5)]
GRP provisions, but no funding limit.)

---

CRS-91
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Wildlife Habitat Incentives Program
The 1996 farm bill amended Sec. 1240N
Reauthorizes WHIP through FY2012;
Reauthorizes WHIP through FY2012;
Limits program eligibility to focus on
of the FSA to authorize Wildlife Habitat
allows additional funds to be used to
increases portion of funds for long-term
lands ‘’for the development of wildlife
Incentives Program (WHIP), providing
meet regulatory requirements that
agreements from 15% to 25% of funding;
habitat on private agricultural land,
cost-sharing to landowners who improve
“reduces the economic scope of the
requires USDA to give priority to
nonindustrial private forest land, and
habitat, with up to 15% of the total made
producer’s operation;” increases portion
projects that foster the goals of state,
tribal lands.” Raises limit on cost-share
available in any years for agreements that
of funds for long-term agreements from
regional, and national fish and wildlife
payments for long-term projects to 25%
are longer than 15 years.
15% to 25% of funding. [Sec. 2112]
conservation plans. [Sec. 2393]
and limits total payments to $50,000 per
[16 U.S.C. 3839bb-1]
year. Allows USDA to provide priority
to projects that address issues raised by
State, regional, and national conservation
initiatives. [Sec. 2602]
Sec. 1241(a)(7) of the FSA, as amended,
Mandatory funding for WHIP is
Similar to the House bill.
Reauthorizes program through FY2012 at
authorizes mandatory funding raising
authorized at $85 million annually
[Sec. 2401(a)(8)]
current levels. [Sec. 2701]
from $15 million to $60 million between
through FY2012. [Sec. 2401(e)]
FY2002-04, and $85 million annually
(FY2005-07). [16 U.S.C. 3841(a)(7)]
Other Conservation Programs
The 2002 farm bill amended the FSA to
Reauthorizes discretionary funding for
Reauthorizes discretionary funding for
Reauthorizes the program through 2012.
provide grants to implement a Farm
program through FY2012. [Sec. 2111]
program through FY2012. [Sec. 2396]
[Sec. 2402]
Viability Program. Authorizes
appropriations “such sums as are
necessary” through FY2007. [16 U.S.C.
3838j]
The 1996 farm bill amended Sec.
Extends authorization of appropriations
Extends authorization of appropriations
Extends authorization of appropriations
1240M(e) of the FSA to authorize the
through FY2012. [Sec. 2108]
through FY2012. [Sec. 2392]
through FY2012. [Sec. 2601]
Conservation of Private Grazing Land
Program. Authorizes appropriations of
$60 million annually through FY2007.
[16 U.S.C, 3839bb(e)]
The 2002 farm bill amended Sec. 1240O
Authorizes $20 million annually in
Authorizes $20 million annually in
Adopts Senate provision. [Sec. 2603]
of the FSA to authorize a Grassroots
discretionary funds (FY2008-12) and
discretionary funding (FY2008-12).
Source Water Protection Program to
one-time funding of $10 million in
[Sec. 2394]
assist state rural water associations that
mandatory funding to remain available
operate wellhead and groundwater
until spent. [Sec. 2107]

---

CRS-92
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
protection programs. Authorizes
appropriations of $5 million annually
through FY2007. [16 U.S.C. 3839bb-2]
The 2002 farm bill amended Sec. 1240P
Extends authorization of appropriations
Extends authorization of appropriations
Reauthorizes program, and authorizes $5
of the FSA to authorize a Great Lakes
through FY2012. [Sec. 2109]
through FY2012; specifies program will
million annually FY2008-2012.
Program for Soil Erosion and Sediment
help implement recommendations of a
[Sec. 2604]
Control, and provides $5 million
collaborative restoration strategy, giving
annually through FY2007. [16 U.S.C.
priority to certain projects. [Sec. 2395].
3839bb-3]
Sec. 524(b)(1) of the Federal Crop
Adds Hawaii and Virginia to the list of
Reauthorizes the program through
Adopts House provision with changes to
Insurance Act authorizes an Agricultural
eligible states. Allocates 50% of funds to
FY2012; adds Idaho to the list of eligible
include Hawaii as an eligible State.
Management Assistance (AMA) program
USDA’s NRCS; 10% to Agricultural
states. [Sec. 2601]
Provides an additional $25million in
for listed states that have historic low
Marketing Service (for organic
mandatory funding (FY2008-2012).
participation rates in the Federal Crop
certification assistance); and 40% to the
[Sec. 2801]
Insurance Program. [7 U.S.C. 1524(b)]
Risk Management Agency. [Sec. 2201]
Secs. 1528-1537 of the 1981 farm bill
Amends RC&D program to provide a
Similar to House provision, clarifying
Adopts Senate provision. [Sec. 2805]
(Agriculture and Food Act of 1981, P.L.
designated coordinator to assist each
that an area plan must be developed
108-7) authorizes the Resource
approved area. Eliminates requirement
through a locally led process, and that the
Conservation and Development Program
to submit a program evaluation to the
planning process, and that the planning
(RC&D) to develop and implement a
House and Senate Agriculture
process must be conducted by a local
regional plan to address conservation,
Committees before June 30, 2005.
council. Provides for a coordinator to
water/land management, or community
[Sec. 2202]
improve technical assistance to councils,
development. [16 U.S.C. 1528-1527]
as designated by USDA. [Sec. 2605]
Sec. 14(h) of the Watershed Protection
Authorizes $50 million annually in
Authorizes such sums as necessary in
Adopts House provision and provides
and Flood Prevention Act (P.L. 106-472)
mandatory funding (FY2009-12);
discretionary funding annually (FY2008-
$100 million in mandatory funding for
authorizes discretionary and mandatory
extends FY2007 discretionary funding
12). [Sec. 2604]
FY2009 to remain available until
funding for a Small Watershed
level through FY2012. [Sec. 2203]
expended. [Sec. 2803]
Rehabilitation Program. [16 U.S.C. 1012]
The 2002 farm bill amended Sec.
Annual funding for regional equity is
Annual funding for regional equity is
Adopts Senate provision with changes.
1241(d) of the FSA to authorize a
raised to at least $15 million [Sec. 2404]
raised to at least $15 million, and crop
[Sec. 2703]
program to promote regional equity,
insurance payments are added to this
giving each state a total of at least $12
calculation. Directs USDA to update
million annually from certain mandatory
state allocation formulas. [Sec. 2402]
programs. [16 U.S.C. 3841d]

---

CRS-93
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The 2002 farm bill amended Sec. 1242 of
Expands use of third party providers
Expands use of third party providers
Adopts Senate provision with changes
the FSA to authorize delivery of
using contracts. Specifies providers
using contracts. Directs USDA to
regarding the delivery of technical
technical assistance directly or using a
should get at least prevailing market
develop national certification criteria and
assistance. [Sec. 2706]
third party provider and specifies how
rates, calls for a review/update of all
approve established state standards.
providers are to be approved by USDA.
technical assistance specifications,
Provides funding through each
Authorizes cooperative agreements with
including the needs of specialty crop
conservation program, specifies
non-federal entities to provide technical
producers. [Sec. 2402]
minimum and maximum contract terms,
assistance. [16 U.S.C. 3842]
among other considerations. Includes
similar provisions for specialty crop
producers as the House bill. [Sec. 2404]
The 2002 farm bill amended Sec. 1244(a)
Expands access to program incentives to
Requires USDA to develop a streamlined
Adopts House provision with changes to
of the FSA to authorize USDA to provide
include socially disadvantaged and
application process for conservation
include certain acreage limitations and
incentives to beginning farmers/ranchers
limited resource farmers and ranchers.
programs. Provides for Safe Harbor
exemptions, and also a pollinator
and Indian tribes to participate in
Requires USDA to develop a streamlined
assurances to the landowner under the
protection provision. Requires USDA
conservation programs. [16 U.S.C.
application process. [Sec. 2405]
Endangered Species Act. Allows
report to Congress on the completion of
3844(a)]
producers to apply for programs through
the requirements not later than 1 year
a producer organization. [Sec. 2405]
after enactment. [Sec. 2708]
The 1990 farm bill amended Sec. 1261
Specifies STC have at least 12 producers
Adds non-industrial private forest land
Adopts House provision with changes to
of the FSA to authorize state technical
representing agriculture. Removes
owners to the list of groups represented
require USDA to develop standard
committees (STC), including members
requirement for persons knowledgeable
on the STC. Requires USDA to develop
committee operating procedures, updates
and interests to be represented, outlining
about conservation. Adds new provisions
standard operating procedures to be used
the names of participating agencies, and
duties, and specifying that committees
creating subcommittees issue areas.
by the State technical committee in the
deletes the requirement for establishing
are advisory with no implementation or
Describes responsibilities in more general
development of technical guidelines for
specific issue-area subcommittees.
enforcement authority. [16 U.S.C. 3861-
terms. [Sec. 2408]
the implementation of the conservation
Requires that public notice be given for
3862]
provisions of this title. Makes local work
meetings of the State technical committee
groups subcommittees of the State
and adds local working groups as
technical committee. [Sec. 2501]
subcommittees. Deletes the requirement
for establishing specific issue-area
subcommittees. [Sec. 2711]
The 1996 farm bill amended Sec. 351 of
No comparable provision.
Amends numerous provisions authorizing
Deletes Senate provision.
the FSA to authorize a National Natural
the Foundation. [Sec. 2606]
Resources Conservation Foundation to
raise private funds that will be used to
promote conservation. Program has
never been implemented. [16 U.S.C.
5801-5809]

---

CRS-94
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The 2002 farm bill amended Sec. 2507 of
No comparable provision.
Amends the desert terminal lakes
Adopts Senate provision with changes.
the FSA to authorize USDA to transfer
provision to allow funds to be used to
Provides $175 million in mandatory
$200 million of CCC funds to the Bureau
lease water or to purchase land and
funding. [Sec. 2807]
of Reclamation for water to at-risk
related interests in the Walker River
natural desert terminal lakes. [43 U.S.C.
Basin. [2607]
2211note]
New Conservation Programs
No comparable provision.
Authorizes a new Chesapeake Bay
No comparable provision.
Adopts House provision with changes.
Program for Nutrient Reduction and
Renames program Chesapeake Bay
Sediment Control to carry out restoration,
(Note: The Chesapeake Bay program is
Watershed Program. Applies to all
enhancement, and preservation projects.
authorized as a part of EQIP.)
tributaries, backwaters, and side
Identifies four specified watersheds. The
channels, including watersheds, draining
non-federal cost share for each project
into the Chesapeake Bay, but gives
will be at least 35%, but will not exceed
priority to the Susquehanna, Shenandoah,
$5 million. Sets mandatory funding at
Potomac, and Patuxent Rivers. Provides
$10 million (FY2008), rising to $55
mandatory funds of $23 million
million (FY2012). [Sec. 2301]
(FY2009); $43 million (FY2010); $72
million (FY2011); and $50 million
(FY2012). [Sec. 2605]
No comparable provision.
The so-called “Open Fields” provision
Similar to the House bill, and includes a
Adopts Senate provision with an
authorizes state grants through a new
priority to States where the location of
amendment, providing $50 million in
Voluntary Public Access and Habitat
participating lands would be available to
mandatory funds for the period FY2009-
Incentive Program to encourage land-
the public and provides $20 million per
2012. Includes a 25% reduction for the
owners to provide public access for
year in mandatory funding annually
total grant amount if the opening dates
wildlife-dependent recreation. Sets
(FY2008-2012). [Sec. 2399 and Sec.
for migratory bird hunting in the State
application contents and award priorities.
2401(a)(9)]
are not consistent for residents and
Authorizes discretionary funding of $20
non-residents. [Sec. 2606]
million annually through FY2012.
[Sec. 2303]
No comparable provision.
No comparable provision.
Creates a new Conservation Access
Adopts Senate provision with changes.
program, requiring 10% of the funds (or
Provides that 5% of CSP acres and 5% of
acres in the cases of WRP and CRP) be
EQIP funds be used to assist beginning
used to assist beginning and socially
farmers or ranchers, and an additional 5%
disadvantaged farmers and ranchers with
of each to assist socially disadvantaged
annual gross sales of $15,000 or more.
farmers or ranchers. [Sec. 2704]
[Sec. 2403]

---

CRS-95
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
Authorizes a new Muck Soils Conser-
No comparable provision.
Deletes provision.
vation Program 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 new payment limits, deleting
No comparable provision.
Deletes provision. Places payment limits
existing conservation payment limit
within each section of the bill and deletes
(Note: The 2002 farm bill limited CRP
language. Limits annual payments to
this section.
payments to $50,000 per year, set
$60,000 for any single program; limits
payment limits for each of 3 tiers in the
total payments to $125,000 under all
CSP, and limited EQIP payments to
conservation (except WRP, FRPP, GRP).
$450,000 for all contracts in any 6-year
Defines how payments should be
period. [16 U.S.C. 3834, 3838c, and
attributed to individuals. [Sec. 2409]
3839aa-7]
No comparable provision.
Requires USDA to submit an annual
No comparable provision.
Deletes provision. The managers report
report on specialty crop producer
states it has modified the compliance and
participation in conservation programs,
performance provisions of Section 1244
including how to improve producer
of FSA to accommodate the intent of the
program access. [Sec. 2406]
House bill.
No comparable provision.
Authorizes a new provision to develop
Authorizes a new provision to develop
Adopts House provision with changes.
agriculture and forestry based
agriculture and forestry based
Directs USDA to work in consultation
environmental services to promote
environmental service markets, giving
with other federal and state government
market-based conservation. Specifies use
priority to developing carbon storage.
agencies, nongovernmental interests and
of USDA-funded research, contracts, and
Directs USDA to use a collaborative
other interested persons, as determined
award grants. Establishes a USDA-led
process with specified government and
by USDA, to establish technical guide-
Environmental Services Standards Board
non-government interests to develop a
lines for measuring environmental
of senior federal officials to facilitate the
framework and identifies relevant
services and to establish a verification
development of credit markets and
framework components (quantification,
process (allowing for consideration of
disseminate performance standards to
accounting, and verification). Requires
third party verifiers). Directs USDA to
federal agencies. Authorizes $50 million
three reports to Congress. Authorizes
focus initially on carbon markets. Does
in discretionary funding, with
discretionary funding of “such sums as
not authorize funds, expecting USDA to
appropriated amounts to remain available
are necessary.” [Sec. 2406]
use available resources. [Sec. 2709]
until spent. [Sec. 2407]
No comparable provision.
Adds income from affiliated packing and
No comparable provision.
Deletes provision.
handling operations to definition of farm
income when calculating adjusted gross

---

CRS-96
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
income limitation to determine eligibility
for conservation programs. [Sec. 2501]
No comparable provision.
Allows USDA to encourage development
No comparable provision.
Deletes provision.
of voluntary sustainable practices for
specialty crops. [Sec. 2502]
No comparable provision.
Requires USDA to develop information
No comparable provision.
Deletes provision.
on the 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
Similar to House provision, but provided
Adopts Senate provision. [Sec. 2301]
producer for a 4 year crop rotation;
within CSP, directing USDA to provide
authorizes appropriations up to $10
additional payments to producers who
million annually (FY2008-FY2012).
agree to adopt resource-conserving crop
[Sec. 2504]
rotations to achieve optimal crop
rotations. [Sec. 2341]
No comparable provision.
See Section 2103 on the Conservation
Authorizes a new Comprehensive
Deletes Senate provision. Renames CSP
Security Program (described above), for
Stewardship Incentives Program to
the Conservation Stewardship Program.
(Note: See the Conservation Security
some related changes. For example, the
coordinate administration of a new
[Sec. 2301]
Program, above, in existing programs.)
House bill defines “priority resources of
Conservation Stewardship Program (see
concern;” however, the House bill does
above) and EQIP. Addresses defined
not create a new program.
resource concerns, 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
Deletes provision.
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]

---

CRS-97
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
Authorizes an Emergency Landscape
Deletes provision.
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.
Directs USDA to assist producers who
Deletes provision. Places payment limits
apply for programs indirectly through
within each section of the bill and deletes
certain organizations, if this will increase
this section.
participation and program benefits;
payment limits apply to each producer,
not the organization. [Sec. 2405]
No comparable provision.
No comparable provision.
Authorizes a new Agriculture
Adopts Senate provision, but limits
Conservation Experienced Service
individuals employed under this authority
Program, such that USDA can enter into
to providing only technical assistance
agreements with organizations to provide
(excluding administrative tasks).
technical assistance using qualified
[Sec. 2710]
individuals 55 years or older. [Sec. 2602]
No comparable provision.
No comparable provision.
Amends the Soil Conservation and
Adopts Senate provision. [Sec. 2802]
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 noncropland
Makes native sods planted to an insurable
Makes native sods planted to an insurable
(including native grassland and
crop (over 5 acres) ineligible for crop
crop (over 5 acres) ineligible for crop
pastureland) planted to an insurable crop
insurance and the noninsured crop
insurance and the noninsured crop
ineligible for crop insurance for the first
disaster assistance program. Directs
disaster assistance program for the first 5
4 years of planting. [Sec. 11007]
USDA to report within 180 days of
years of planting. May apply to virgin
enactment, and annually thereafter, on
prairie converted to cropland in the
changes in cropland acreage, by county,
Prairie Pothole National Priority Area, if
since 1995. [Sec. 2608]
elected by the state. [Sec. 12020]

---

CRS-98
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
Requires that no producers in Texas lose
Adopts Senate provision. [Sec. 2901]
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,
Adopts the Senate provision on payment
Fungicide, and Rodenticide Act (FIFRA)
of expenses. [Sec. 14209] Deletes Senate
[7 U.S.C. 136o(d)] to require the State
provision making technical corrections to
Department to pay expenses incurred by
pesticide registration, but includes a
EPA employees associated with certain
container recycling provision.
international activities. [Sec. 2610]
[Sec. 14109]
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]
Sec. 202(a) of the Colorado River
No comparable provision.
Amends the act to create a basin states
Adopts Senate provision. The Mangers
Salinity Control Act of 1974 authorizes
program implementing specified salinity
report states this provision to be fiscally
DOI to construct, operate, and maintain
control activities. Requires DOI to
neutral both as to appropriations and as to
the specific salinity control units as the
consult with the Colorado River Basin
draws on the basin funds. States there
initial stage of the Colorado River
Salinity Control Advisory Council related
are no changes to the cost share ratios
Basin salinity control program. [43
to assistance in the form of grants, grant
already established in the act; the
U.S.C. 1592(a)]
commitments, or the advancement of
percentage split between the two funds;
funds to federal or non-federal entities.
or the 15% cap requirement on the basin
Requires a planning report to Congress
states cost share derived from the Upper
describing the proposed program
Colorado River Basin Fund. [Sec. 2806]
implementation; stipulates that no funds
may be expended until 30 days after the
report is submitted. [Sec. 2611]
No comparable provision.
No comparable provision.
No comparable provision.
Authorizes USDA to accept contributions
to support conservation programs to
establish a sub-account for each USDA
conservation program to accept contri-
butions of non-Federal funds. Provides
that contributions of non- Federal funds
received for a conservation program be
deposited and shall be available to
USDA, without further appropriation and
until expended. [Sec. 2702]

---

CRS-99
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
No comparable provision.
Direct USDA to submit to Congress an
annual report regarding enrollments and
assistance under conservation programs,
including (1) WRP, FPP, and GRP
payments valued at $250,000 or greater;
(2) EQIP payments for land determined
to have special environmental signifi-
cance; and (3) AWEP payments subject
to the waiver of adjusted gross income
limitations. Allows for waivers granted
by USDA to protect environmentally
sensitive land of special significance.
[Sec. 2705]
No comparable provision.
No comparable provision.
No comparable provision.
Amends the Soil and Water Resources
Conservation Act of 1977 to require
USDA to conduct two comprehensive
appraisals and inventory of soil, water,
and related natural resource conservation
(completed by year-end 2010 and 2015).
Requires a report in early 2012 on the
types of improvements to appraisals and
programs. [Sec. 2804]
No comparable provision.
No comparable provision.
No comparable provision.
Other miscellaneous provisions:
—
Names the National Plant Materials
Center at Beltsville, MD, in honor
of Norman A. Berg. [Sec. 2902]
—
Directs USDA, in consultation with
the CCC, to promulgate regulations
not later than 90 days after the date
of enactment, necessary to
implement title II. [Sec. 2904]
TITLE III: AGRICULTURAL TRADE AND AID
P.L. 480 Food Aid
The Agricultural Trade Development and
No comparable provision.
Renames the law the “Food for Peace
Adopts Senate provisions.
Assistance Act of 1954 [7 U.S.C. 1691a],
Act.” Deletes language making
[Secs. 3001-3003]
as amended, authorizes the use of U.S.
expansion of U.S. agricultural exports an

---

CRS-100
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
agricultural commodities and local
objective of the program. Replaces the
currencies to combat world hunger and
Sense of Congress with language stating
malnutrition; promote sustainable
that, in negotiations, the President shall
development; expand international trade;
seek higher levels of food aid to meet
develop and expand markets for U.S.
legitimate needs of developing countries;
agricultural exports; foster development
ensure that nongovernmental
of private enterprise and democratic
organizations, recipient governments, and
participation in developing countries; and
international organizations continue to be
prevent conflicts. Declares the Sense of
eligible to receive food aid resources and
Congress that the President should
to implement programs; and options for
initiate consultations with other food aid
providing food aid shall not be subject to
donors to consider appropriate food aid
limitation with respect to in-kind
levels to meet needs of developing
commodities, funds for commodity
countries, and that the U.S. should
procurement, and monetization, under
increase its food aid contribution.
certain conditions. [Secs. 3001-3003]
Trade and Development Assistance (P.L.
Makes no changes in P.L. 480 Title I.
Renames Title I “Economic Assistance
Adopts Senate provision.
480 Title I) provides for concessional
and Food Security.” [Sec. 3004] Makes
[Sec. 3004]
financing , i.e., long-term, low-interest
improving trade capacity of the recipient
loans to developing countries to purchase
country an activity that can be supported
U.S. agricultural commodities. [7 U.S.C.
by local currency payments for P.L. 480
1701]
Title I loans.
Emergency and Private Assistance
Reauthorizes through FY2012, with
Reauthorizes through FY2012, with
Reauthorizes through FY2012, with
Programs (P.L. 480 Title II) provide U.S.
changes as outlined below.
changes as outlined below.
changes as outlined below.
agricultural commodities for emergency
and nonemergency assistance.
Provides that private voluntary
Provides that not less than 7% and not
Provides not less than 7.5% of total funds
Provides that the share of Title funds that
organizations and cooperatives that carry
more than 12% of funds available for
be available from all sources to support
can be used for administrative and
out Title II programs may receive not less
Title II for support of eligible
eligible organizations. Inserts language
distribution expenses will be from 7.5%
than 5% nor more than 10% of available
organizations. Funds may also be used
on “meeting specific administrative,
to 13%. [Sec. 3008]
funds (for establishing new programs or
for “developing, implementing and
management, personnel, programmatic,
meeting other administrative directives).
improving monitoring systems of
and operational activities, and internal
[7 U.S.C. 1722(e)(1)]
program receiving funds” under Title II.
transportation and distribution costs” for
[Secs. 3001(b)(1)and (b)(4)]
new and existing programs in foreign
countries. [Sec. 3008(2)(A)(ii)]
No comparable provision.
No comparable provision.
Authorizes the USAID Administrator to
Authorizes $4.5 million for fiscal years
use funds to assess the types and quality
2009-2011 to be used to study and
of agricultural commodities used for food
improve food aid quality. [Sec. 3008]

---

CRS-101
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
aid, and to adust products and
formulations to meet nutrient needs of
target populations. [Sec. 3008 (3)(h)]
Provisions regarding Private Voluntary
No comparable provision.
Provides for the inclusion of activities
Maintains monetization uses as
Organizations (PVOs) and cooperatives
involving micro-enterprise and village
prescribed in 7 U.S.C.1723. [Sec. 3009]
allow for the sale or barter of Title II
banking as an authorized use of Title II
commodities by PVOs and coops. Sec.
monetization (sales) proceeds.
203 allows for the monetization (sale) of
[Sec. 3009]
not less than 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 mmt of commodities
Extends authorized levels of assistance
Similar to the House bill. [Sec. 3010]
Adopts House bill. [Sec. 3010]
available annually through FY2007. Of
through 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)
Extends FAC through FY2012 and
Extends FAC through FY2012. Adds
Extends the FAC through FY2012 and
is composed of the Administrator of
requires USAID, in close consultation
representatives of the maritime
requires that a representative of the
USAID, the Secretary of Agriculture, and
with the FAC, to submit a report to
transportation sector involved in overseas
maritime transportation sector be
representatives of PVOs, coops,
certain congressional committees on
shipping of commodities to the member
included in the Group. [Sec. 3011]
indigenous NGOs in recipient countries,
efforts to achieve an integrated and
list. Requires biannual consultations
and U.S. producer groups, who review
effective food assistance program. [Sec.
between USAID and the FAC, and
overall program effectiveness.
3001(f)]
requires FAC consultations on issuing
[7 U.S.C. 1725]
draft regulations. [Sec. 3011]
Title II program administration provides
Provides for program oversight,
Adds language allowing for payment to
Adopts the House language to require
for various administrative procedures
monitoring, and evaluation, and requires
the World Food Program for indirect
specific oversight, monitoring and
including identification of developing
that systems be established to accomplish
support costs of donated commodities,
assessment activities and provides up to
country recipients, deadlines for USAID
these tasks. Requires an implementation
along with a report to the relevant
$22 million of Title II funds for
acceptance (or rejection) of a proposal,
report be prepared, to be reviewed by
congressional committees on such
monitoring and assessment activities for
specifying reasons for denial of
GAO, along with annual reporting.
payments. Clarifies the authority to pay
non-emergency programs. No more than
proposals, issuance of regulations, and
Authorizes appropriations up to $15
indirect costs associated with funds
$8 million of these funds may be used for
deadlines for submission of commodity
million of funds be made available
received or generated for programs to
the Famine Early Warning System

---

CRS-102
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
orders. Requires the Administrator to
annually (FY2008-12). Requires
PVOs and coops, and requires that
Network. Provides $2.5 million (of the
report by December 1 each year to
procedures be developed for providing
project reports be submitted in a form
$22 million) to upgrade information
relevant committees on program,
commodities overseas in a timely manner
that can be readily displayed for public
technology systems in FY2009 to
countries, and commodities approved to
and according to delivery schedules.
use on the USAID website. [Sec. 3012]
enhance monitoring of Title II non-
date and on the total amount of funds
Changes the date of the required program
emergency programs. [Sec. 3012]
approved for transportation and
reports, among other changes.
administrative costs. [7 U.S.C. 1726a]
[Sec. 3001 (g)]
Provisions on assistance for stockpiling
Reauthorizes program and increases
Reauthorizes program and increases
Adopts Senate provision, increasing the
and rapid transportation, delivery, and
appropriations authority from $3 million
appropriations authority from $3 million
level that can be appropriated to assist in
distribution of shelf-stable prepackaged
to $7 million annually for FY2008-12.
to $8 million annually (FY2008-12).
developing shelf-stable, pre-packaged
foods. Authorizes appropriated grants at
[Sec. 3001(h)]
[Sec. 3013]
foods for food aid programs to $8 million
$3 million annually. [7 U.S.C. 1726b]
annually. [Sec. 3013]
No comparable provision.
Authorizes to be appropriated not less
Establishes a pilot program for local and
Establishes a pilot program for local and
than $40 million to carry out Sec. 491 of
regional purchase of commodities for
regional purchase of commodities for
the Foreign Assistance Act of 1961 (22
emergency food aid. Authorizes
famine prevention to be conducted by
U.S.C.2292) to provide for famine
appropriations of $25 million annually
USDA with $60 million in mandatory
prevention and relief. [Sec. 3016]
for FY2009-12. [Sec. 3014]
funding (FY2009-2012). [Sec. 3206]
Provisions on commodity determinations
No comparable provision.
Strikes the requirement that a USDA
Adopts Senate provision. [Sec. 3014]
[7 U.S.C. 1731] establish criteria for
determination of domestic supply needs
eligibility of commodities for disposition.
be made before a commodity is available
for food aid. [Sec. 3015]
Provisions on the use of the CCC lists the
No comparable provision.
Adds costs incurred to improve food aid
Adopts Senate provision. [Sec. 3016]
expenses that may be covered by the
quality to the list of expenses that can be
CCC in carrying out food aid programs.
covered by CCC through advanced
[7 U.S.C. 1736]
appropriations acts. [Sec. 3016]
Provisions regarding prepositioning
Extends authorization for prepositioning
Extends authorization for prepositioning
Adopts Senate provision, but increases
authorize USAID to use Title II (and
through FY2012. Increases the limit that
through FY2012. Increases cap on funds
funding to $10 million and adds House
Title III) funds to procure transport, and
may be used to preposition commodities
available for prepositioning from $2
language on studying additional
store commodities for prepositioning
from $2 million to $8 million. Authorizes
million to $4 million, among other
prepositioning sites. [Sec. 3017 and Sec.
(limited to $2 million). [7 U.S.C.
assessment and possible establishment of
requirements for non-emergency
3018(a)]
18736(c)]
additional prepositioning sites. [Sec.
assistance agreements. [Sec. 3017(1)]
3001 (I)]
Annual reporting requirements specify
Changes the annual report submission
Changes the date of report submission
The conference report consolidates a
that an annual report on P.L. 480 food aid
date from January 15 to March 1.
from January 15 to April 1 each year, and
number of reporting requirements and
programs be submitted by January 15 of
Requires an assessment on the progress
requires its distribution to the public by
date changes from both House and

---

CRS-103
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
each year to the relevant congressional
to reduce food insecurity in countries
electronic and other means.
Senate bills. [Sec. 3018]
committees.
receiving U.S. assistance. [Sec. 3001(j)]
[Sec. 3017(2)]
Authority to enter into new P.L. 480
Extends the authority to enter into P.L.
Similar to the House bill. [Sec. 3018]
Adopts House provision. [Sec. 3020]
agreements provided through December
480 agreements to December 31, 2012.
31, 2007. [Sec. 408, 7 U.S.C. 1736b]
[Sec. 3001(k)]
Authorizes to be appropriated such sums
Authorizes appropriations of such sums
Reauthorizes discretionary appropriations
Adopts House provision. [Sec. 3020]
as may be necessary to carry out P.L. 480
as may be necessary for Title I and III
for P.L. 480 programs and strikes
food aid programs. [7 U.S.C. 1736f]
programs, and appropriations of $2.5
authority to transfer funds between P.L.
billion for Title II emergency and non-
480 Titles. [Sec. 3019]
emergency programs. [Sec. 3001(l)]
No comparable provision.
Requires that non-emergency food
Provides that not less than $600 million
Specifies funds for non-emergency food
assistance of not less than $450 million
be available annually for FY2008-12 to
aid: $375 million (FY2009), $400 million
be available for non-emergency
for Title II non-emergency programs.
(FY2010), $425 million (FY2011), and
programs. [Sec. 3013]
[Sec. 3019(b)]
$450 million (FY2012). Authority can be
waived only if the President determines
that an extraordinary food emergency
exists, that resources from the Bill
Emerson Trust have been exhausted, and
the President has submitted a request for
additional appropriations to Congress
needed. [Sec. 3022]
The Micronutrient Fortification Program
Extends authorization for the program
Reauthorizes the program through
Adopts Senate provision.
establishes a micro-nutrient fortification
through December 31, 2012, and amends
December 31, 2012. Adds new authority
[Sec. 3023]
program in food aid recipient countries
purposes. [Sec. 3001(m)]
to improve food quality, safety, and other
through year-end 2007. [7 U.S.C. 1736g-
aspects. Eliminates limitation to five
2]
countries. [Sec. 3020]
The John Ogonowski and Doug Berueter
Provides minimum program funding of
Extends program through 2012.
Farmer-to-Farmer Program authorizes
$10 million. Authorizes appropriations
[Sec. 3022]Adopts House provision.
voluntary technical assistance to raise
of $10 million to carry out the program in
[Sec. 3024]
farm production/incomes in developing
Sub-Saharan African and Caribbean
and middle income countries, emerging
Basin countries, and $5 million for all
markets, and in Sub-Saharan Africa and
other countries. [Sec. 3001(n)]
the Caribbean Basin. [7 U.S.C. 1737]

---

CRS-104
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Other Food Aid Programs
The Food for Progress Act provides
Extends program through 2012.
Extends program through 2012. Raises
Adopts House provision and requires the
commodities to support countries that
[Sec. 3004]
the cap on coverage of costs of
USDA to establish a project in Malawi
have made commitments to expand free
transporting commodities to $48 million
under this program. [Sec. 3105]
enterprise in their agricultural economies.
annually (FY2009-10). [Sec. 3106]
[7 U.S.C. 1736o]
The McGovern-Dole International Food
Extends program through 2012.
Extends program through 2012.
Adopts Senate provision, except that it
for Education and Child Nutrition
Authorizes USDA to carry out the
[Sec. 3107]
provides $84 million in mandatory funds
Program makes available U.S.
program, providing mandatory (CCC)
for this program for FY2009, to be
agricultural commodities, financial and
funding as follows: $0 (FY2008); $140
available until expended. [Sec. 3106]
technical assistance to carry out food for
million (FY2009); $170 million
education and child nutrition programs in
(FY2010); $230 million (FY2011); $300
foreign countries. Authorizes CCC
million (FY2012); and $0 (FY2013).
funding of $100 million in FY2003 and
[Sec. 3005]
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.
Adopts Senate provision with the
establishes a reserve of up to 4 million
3201(6)], with some changes including
following modifications: removes the 4
metric tons (mmt) of wheat, rice, corn
(1) provides that the Trust can be held as
million metric ton cap; does not allow for
and sorghum to meet emergency food
a combination of cash and commodities
the exchange of funds available under
needs in developing countries when there
(not to exceed 4 mmt.) [Sec. 3201(1)];
Title II or the McGovern-Dole program;
are unanticipated needs or when U.S.
(2) allows the commodities in the Trust
and does not require the transfer of
domestic supplies are short. The Trust
to be exchanged for funds available
foregone storage charges into the Trust.
can also hold cash. [7 U.S.C. 1736f-1
under Title II or the McGovern-Dole
[Sec. 3201]
note]
Program, or for sale in the market (in
some cases) [Sec. 3201(2)]; (3) allows
the funds in the Trust to be invested in
low-risk short-term securities or
instruments; and (4) lists the rules for
the release of commodities or funds from
the Trust; defines emergency in cases of
release [Sec. 3201(3), (4)].
Export Programs
Export Credit Guarantees provide for the
Repeals the supplier credit guarantee
Similar to the House bill; also clarifies
Adopts Senate provision, but in lieu of
repayment of credit made available to
program and the intermediate credit
how USDA should evaluate the
reducing the term for short-term (GSM-
finance commercial sales of U.S.
guarantee program. Lifts the 1%
creditworthiness of participating
102) guarantees beginning in FY2012, it

---

CRS-105
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
agricultural commodities. [7 U.S.C.
origination fee cap. Reduces the term of
countries. Reduces the minimum volume
includes a $40 million annual cap on the
5622]
short term credit guarantees to six
of guarantees annually from $5.5 billion
credit subsidy for the program, and
months starting in FY2008. [Sec. 3002]
to $5 billion. [Sec. 3101]
requires the CCC to make available each
year guarantees not more than the lesser
of $5.5 billion or the sum of guarantees
supported by $40 million in budget
authority plus the amount of guarantees
that the CCC can make available from
unobligated prior fiscal year balances.
[Sec. 3101]
The Market Access Program (MAP)
Makes organic agricultural commodities
Makes organic agricultural products
Adopts Senate provision, but maintains
provides for CCC funding of export
eligible for MAP promotions. Increases
eligible for CCC funds. Increases
funding at the level of $200 million
market development for U.S. agricultural
annual MAP funding from $200 million
funding above baseline level of $200
annually. [Sec. 3102]
commodities by eligible trade organiza-
(FY2007) to $225 million (FY2008-12).
million by raising it $10 million annually
tions. Authorizes CCC funding of $200
[Sec. 3003]
until FY2011, with $200 million for
million annually. [7 U.S.C. 5623]
FY2012. [Sec. 3102].
Technical Assistance for Specialty Crops
Extends authority for CCC funding of
Extends authority to use CCC funds for
Adopts House provision with annual
(TASC) authorizes USDA to address
TASC through FY2012. Increases
TASC through FY20012 and increases
funding ramped up to $9 million in
barriers prohibiting or threatening
funding from $2 million annually to $4
funding by $19 million over the baseline
FY2011 and FY2012. [Sec. 3203]
exports of U.S. specialty crops.
million in FY2008, and rising to $10
level. [Sec. 1835]
Authorizes CCC funds of $2 million
million in FY2011-12. [Sec. 3007]
annually (FY2002-07). [7 U.S.C. 5680]
No comparable provision.
Authorizes USDA to enhance U.S.
No comparable provision.
Deletes House provision.
participation in 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]
Foreign Market Development Cooperator
Extends through FY2012. [Sec.
Adopts House provision. [Sec. 3104]
Program (FMDP) requires USDA to
3010]Increases mandatory funding for
establish and carry out a program to
FMDP from its current annual level of
maintain and develop foreign markets for
$34.5 million for FY2007 by $5 million
U.S. agricultural commodities and
annually for FY2008-09, by $10 million
products. [7 U.S.C. 5721]
in FY2010. Reverts to baseline levels in
2011 and thereafter.

---

CRS-106
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The Emerging Markets Program (EMP)
Reauthorizes through FY2012.
Reauthorizes through FY2012.
Adopts Senate provision. [Sec. 3201]
[7 U.S.C. 5622 note] promotes U.S.
[Sec. 3011]
[Sec. 3202 (1)] Permits waiving the
agricultural exports in emerging markets.
requirement that U.S. goods be used in
Authorizes direct credits or export credit
the construction of a facility, if such
guarantees of not less that $1 billion for
goods are not available or their use is not
exports to emerging markets. Requires a
practicable. Provides for a guarantee that
portion of export credit guarantees be
the term of the depreciation schedule for
made available to establish or improve
the facility will not exceed 20 years.
facilities and services for U.S. products.
[Sec. 3202(2)]
The Export Enhancement Program (EEP)
Extends through FY2012. [Sec. 3012]
Repeals authority for EEP. [Sec. 3103]
Adopts Senate provision. [Sec. 3103]
(Section 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
Similar to the House bill. [Sec. 3021]
Adopts House provision. [Sec. 3202]
Global Crop Diversity Trust for germ
plasm conservation (up to $60 million
over 5 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
No comparable provision.
Adopts House provision. [Sec. 3022]
report on 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
Adopts Senate provision, modified to
Depart. of Labor, to develop standards to
establish a consultative group of
certify that U.S. agricultural importers
interested stakeholders changed with
were not produced with the use of
developing recommendations and
abusive forms of child labor. [Sec. 3104]
guidelines for monitoring and verifying
whether food products were made with
child labor. [Sec. 3104]

---

CRS-107
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The Biotechnology and Agricultural
No comparable provision
Extends authority through FY2012.
Deletes provision.
Trade Program [7 U.S.C. 5679] provides
[Sec. 3203]
for a biotechnology and agricultural trade
program to remove, resolve, or mitigate
nontariff barriers on U.S. agricultural
commodities produced through
biotechnology. Authorizes appropriations
of $6 million annually (FY2002-07).
No comparable provision.
Authorizes USDA to provide technical
Similar to the House bill. [Sec. 3204]
Deletes House and Senate provision.
assistance to 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
Deletes Senate provision.
Human Services to report to Congress on
the importation and use of high protein
food ingredients. [Sec. 3206]
Provision Regarding U.S.-Canada Softwood Lumber Agreement — see section on Forestry Programs (below)
TITLE IV: NUTRITION
Reauthorization
Authorities in the Food Stamp Act and
Extends all expired authorities in the
Extends all significant expired authorities
With some exceptions, extends expired
other laws covered by the nutrition title
Food Stamp Act and other laws covered
in the (renamed) Food Stamp Act and
authorities in the (renamed) Food Stamp
generally expired in FY2007. [7 U.S.C.
by the nutrition title through FY2012.
other laws covered by the nutrition title
Act and other laws covered by the
612c note, 1431e(2), 2020(t), 2025(h),
[Sec. 4016, 4019-4021, 4025, 4027,
indefinitely, with the exception of
nutrition title through FY2012. Includes
2025(k), 2026(b), 2028(a), 2034, 2036,
4028, 4201, 4202, 4203] Policy
funding for community food projects
those governing required funding or
3007(a), 3171 note, 7508(a)]
amendments made in the House bill
(extended through FY2012). [Sec. 4110,
appropriations authorizations for the
generally are part of permanent law.
4701, 4801-4803] Policy amendments
Food Stamp program (including grants
generally terminate with FY2012.
for simplified application projects),
nutrition assistance block grants for
Puerto Rico and American Samoa, The
Emergency Food Assistance Program
(TEFAP), the Food Distribution Program
on Indian Reservations (FDPIR), the
Commodity Supplemental Food Program
(CSFP), and the Senior Farmers’ Market
Nutrition Program (SFMNP). Extends

---

CRS-108
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
other expired authorities indefinitely:
community food project grants, authority
to reduce federal payments for state food
stamp administrative costs, cash-payment
food stamp pilot projects, and grants for
employment/training programs for food
stamp recipients. [Sec. 4406] Policy
amendments generally are part of
permanent law, as in the House bill.
Food Stamp Program
The Food Stamp program is established
Renames the Food Stamp program: the
Renames the Food Stamp program: the
Renames the Food Stamp program the
under the Food Stamp Act. [7 U.S.C.
“Secure Supplemental Nutrition Assis-
“Food and Nutrition Program.” Renames
Supplemental Nutrition Assistance
2011 et seq]
tance Program” (SSNAP). [Sec. 4001]
the Food Stamp Act: “The Food and
Program (SNAP). Renames the Food
Nutrition Act.” [Sec. 4001]
Stamp Act “The Food and Nutrition
Act.” [Sec. 4001]
Sec. 5(e)(1) of the Food Stamp Act
Increases the minimum standard
Increases the minimum standard
Increases the minimum standard
specifies that when determining benefits
deduction to $145 per month, annually
deduction to $140 per month, annually
deduction to $144 per month in FY2009,
and, in some cases, judging income
indexed to inflation beginning with
indexed to inflation beginning with
annually indexed to inflation beginning
eligibility, a standard portion of house-
FY2009. Provides comparable increases
FY2009. Provides comparable increases
with FY2010. Provides comparable
holds’ monthly income be disregarded
for Alaska, Hawaii, the Virgin Islands,
for Alaska, Hawaii, the Virgin Islands,
increases for Alaska, Hawaii, the Virgin
(deducted), as a “standard deduction.”
and Guam. [Sec. 4006]
and Guam. [Sec. 4102]
Islands, and Guam. [Sec. 4102]
The minimum standard deduction is $134
per month per household (with differing
amounts for Alaska, Hawaii, the Virgin
Islands, and Guam). [7 U.S.C.
2014(e)(1)]
Sec. 5(e)(3) of the Food Stamp Act
Removes the caps on dependent care
Same as the House bill. [Sec. 4103]
Removes the caps on dependent care
specifies that when determining benefits
deductions. [Sec. 4007]
deductions, as in the House bill and
and, in some cases, judging income
Senate amendment. [Sec. 4103]
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)]

---

CRS-109
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Sec. 8(a) of the Food Stamp Act sets the
Increases the minimum benefit to 10% of
Same as the House bill. [Sec. 4109]
Increases the minimum benefit to 8% of
minimum benefit for households of one
the inflation-indexed cost of the “Thrifty
the inflation-indexed cost of the “Thrifty
and two persons at $10 per month. [7
Food Plan” (the maximum benefit) for a
Food Plan” (the maximum benefit) for a
U.S.C. 2017(a)]
one — person household. [Sec. 4013]
one-person household. [Sec. 4107]
Under terms stipulated in USDA
Places into law an exclusion for combat-
Same as the House bill. [Sec. 4101]
Places into law an exclusion for combat-
appropriations acts since FY2005,
related military pay. [Sec. 4005]
related military pay, as in the House bill
combat-related military pay is excluded
and Senate amendment. [Sec. 4101]
from household income when
determining eligibility and benefits.
(Most recently, the Consolidated
Appropriations Act, 2008, P.L. 110-161.)
Sec. 5(g) of the Food Stamp Act
Indexes to inflation the dollar limits on
Increases the dollar limits on assets to
Indexes to inflation the dollar limits on
specifies that eligible households’ liquid
assets annually (adjusted to the nearest
$3,500 ($4,500 for households with an
assets annually (adjusted down to the
assets may not be more than $2,000 (or
$100). [Sec. 4008]
elderly/disabled member) and indexes to
nearest $250) beginning with FY2009.
$3,000 for a household with an elderly or
inflation these dollar limits annually
[Sec. 4104(a)]
disabled member). [7 U.S.C. 2014(g)]
(adjusted down to the nearest $250).
[Sec. 4104]
Sec. 5(g) of the Food Stamp Act specifies
Excludes all tax-qualified retirement
Same as the House bill. [Sec. 4104]
Adopts House and Senate provision to
differing rules as to which types of
plans/accounts/savings and all tax-
exclude all tax-qualified retirement
retirement plans/accounts/savings are
qualified education savings from
plans/accounts/savings and education
excluded from countable liquid assets in
countable liquid assets in judging
savings from countable liquid assets in
judging eligibility. No provision is made
eligibility. [Sec. 4009 & 4010.]
judging eligibility. [Sec. 4104 (b) & (c)]
for excluding education savings. [7
U.S.C. 2014(g)]
Sec. 6(o) of the Food Stamp Act limits
No comparable provision.
Lengthens the basic eligibility period for
Deletes Senate provision.
the eligibility of able-bodied adults
ABAWDs to 6 months in every 36-
without dependents (ABAWDs) — who
month period. Eliminates the current
are (1) not working (20+ hours a week),
provision extending eligibility for
(2) in an employment/training program,
ABAWDs who subsequently fail to meet
or (3) in a workfare program — to 3
work/training tests. [Sec. 4107]
months 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
No comparable provision.
Adds permission for states to provide
Adopts Senate provision to expand
states to provide eligibility for up to 5
eligibility for up to 5 months’ transitional
permission for states to provide

---

CRS-110
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
months of transitional food assistance
food assistance benefits to households
transitional benefits. [Sec. 4106]
benefits to households that stop receiving
with children that cease to receive cash
federally funded cash aid under the
aid under a state-funded public assistance
Temporary Assistance for Needy
program. [Sec. 4108]
Families (TANF) program. [7 U.S.C.
2020(s)]
No comparable provision.
No comparable provision.
Disqualifies persons found by a court or
Adds new program disqualification rules,
administrative agency to have
as in the Senate amendment. [Sec. 4131]
intentionally (1) obtained cash by
misusing program benefits to obtain
money for the return of deposits on
containers or (2) sold food purchased
with program benefits. [Sec. 4305]
No comparable provision.
Bars those disqualified from the Food
Same as the House bill. [Sec. 4501]
Adopts House and Senate provision to
Distribution Program on Indian
bar those disqualified from the FDPIR
Reservations (the FDPIR) from the
from the (renamed) food stamp program.
(renamed) food stamp program.
[Sec. 4211]
[Sec. 4004]
Sec. 6(c) of the Food Stamp Act specifies
No comparable provision.
Allows states to require periodic report-
Adopts Senate provision to change
that states may require households
ing of changes in household circum-
household reporting rules. [Sec. 4105]
(except for migrant/seasonal
stances (versus reporting changes when
farmworkers, the homeless, and
they occur) by migrant/ seasonal farm
elderly/disabled households with no
workers, the homeless, and elderly/
earned income) to file periodic reports of
disabled households with no earned
household circumstances. Households
income. Limits the frequency that these
not required to file periodic reports must
households must report changes (except
report any changes in circumstances
changes whereby they exceed monthly
when they occur. [7 U.S.C. 2015(c)]
income eligibility limits). [Sec. 4105]
Sec. 11(e) of the Food Stamp Act
Limits states’ ability to “privatize”
No comparable provision.
Deletes House provision.
specifies that state “merit system”
administrative functions. Specifies only
employees must certify households’
state agency merit system employees are
program eligibility. [7 U.S.C. 2020(e)(6)]
authorized to make eligibility
certifications or: (1) represent the state in
communications with client households
about their application/participation, (2)
participate in making any determinations
regarding a household’s substantive or
procedural compliance with program

---

CRS-111
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
requirements, or (3) make any other
required program determinations.
Exemptions include nonprofit agencies
assisting in outreach and contracts with
automated systems, benefit issuance
services, and program information
activities. Prohibits federal funds for any
contract that does not comply with these
requirements, and bars waivers of rules
that do not comply with requirements.
Allows use of employees not in
compliance with these requirements in
cases of disasters. [Sec. 4015]
No comparable provision.
No comparable provision.
Requires that USDA develop standards
Adopts Senate provision adding
for identifying major changes in state
requirements with regard to major
agency administrative operations (e.g.,
changes in state agency administrative
substantial increases in reliance on
operations. [Sec. 4116]
automated systems or potential increases
in administrative burdens on applicant/
recipient households). If a state
implements a major change in operations,
it must notify USDA and collect any
information needed to identify/correct
any adverse effects on program integrity
or access. [Sec. 4211]
No comparable provision.
No comparable provision.
Requires that computerized systems for
Adopts Senate provision adding
state program operations must (1) be
requirements for computerized state
tested adequately before and after
systems. [Sec. 4121]
implementation, and (2) be operated
under a plan for continuous updating (to
reflect changed policies/circumstances)
and testing (for effects on households and
payment accuracy). [Sec. 4212]
Sec. 13(b) of the Food Stamp Act
Permits USDA to make a determination
Same as the House bill. [Sec.4301]
Adopts House and Senate provision
specifies that states must attempt to
that a state agency has over-issued
permitting USDA to determine that a
collect all over-issued benefits from
benefits to a substantial number of
state has over-issued benefits because of
recipients, unless the state agency
households because of a “major systemic
major systemic error, to then prohibit the
demonstrates that collection is not cost-
error” by the state. If this determination
state from collecting resulting over-
effective. [7 U.S.C. 2022(b)] There is
is made, USDA may (1) prohibit the state
issuances from recipients, and also to

---

CRS-112
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
no specific provision for collection of the
agency from collecting any resulting
collect the cost of over-issuances from
cost of erroneously issued benefits from
over-issuances from recipients, and (2)
the state. [Sec. 4133]
state coffers.
collect the cost of the over-issuances
from the state. [Sec. 4018]
Sec. 12 of the Food Stamp Act specifies
Increases the maximum money penalty to
Same as the House bill. Also eases
Adopts Senate provision that changes
that participating retailers may be
$100,000 per violation. Removes the
conditions under which bonds are
money penalty and bonding rules for
disqualified for violation of program
provision that limits the imposition of
required of a participating retailer who
retailers and bars interchange fees on
rules (or, in cases where disqualification
money penalties in lieu of
has violated food stamp rules and wishes
retailers. [Sec. 4132 & Sec. 4115]
would cause hardship to food stamp
disqualification to cases where it would
to be re-approved for participation. The
households, receive a money penalty of
cause hardship to recipient households.
provision limits the period of time for
up to $10,000 per violation).
Permits the imposition of both a
which bonding is required. [Sec. 4303]
Disqualification is: (1) 6 months to 5
disqualification and a money penalty.
years (first violation), (2) 10 months to
Removes the 6-month and 10-month
Bars charging retailers “interchange fees”
10 years (second violation), and (3)
minimum disqualification requirements.
in connection with implementation of
permanent on a third violation, a
Requires the establishment of procedures
electronic benefit transfer (EBT) systems.
disqualification based on trafficking in
whereby participating retailers may be
[Sec. 4202]
benefits, or a finding of the sale of
immediately suspended for “flagrant
firearms, ammunition, explosives, or
violations,” pending appeal. [Sec. 4017]
controlled substances. [7 U.S.C. 2021]
No comparable provision.
No comparable provision.
Requires USDA to issue regulations
Deletes Senate provision.
defining dietary supplements: multi-
vitamin-mineral supplements providing
prescribed minimum amounts of essential
vitamins, minerals and certain prescribed
amounts of folic acid and calcium.
Requires proposed regulations within 1
year of enactment, and final regulations
within 2 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]
Sec. 7(h) of the Food Stamp Act provides
No comparable provision.
Limits “split issuance” of benefits by
Adopts Senate provision limiting split
that state agencies may stagger the
requiring that no staggered issuance
issuance of benefits. [Sec. 4113]
issuance of benefits over the course of
procedure may provide for more than 1
each month and specifies that any
issuance during a month — except in the
staggered issuance procedure must
case of a benefit correction. [Sec. 4203]

---

CRS-113
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
ensure that no household experiences an
interval between issuances longer than 40
days. Staggered issuance procedures
may include splitting monthly benefits
into more than one “issuance.” [7 U.S.C.
2016(h)]
Fruits and Vegetables
Sec. 18(g) of the Richard B. Russell
Expands the existing fresh fruit and
Replaces the existing fresh fruit and
Replaces existing fresh fruit/ vegetable
National School Lunch Act requires a
vegetable program in elementary and
vegetable program. The new program
program, beginning with the 2008-2009
fresh fruit and vegetable program. Most
secondary schools. Increases annual
provides mandatory funding of $225
school year. Similar to Senate provision,
recently, this program was funded at a
mandatory funding to $70 million and
million in the first year (indexed for
the new program is to operate in elemen-
total of $18.9 million for FY2008 ($9
makes the program available nationwide
inflation in later years) to make free fresh
tary schools selected by states and has
million of which is mandatory), and $9.9
in (1) 35 elementary and secondary
fruits and vegetables available in selected
mandatory Section 32 funding (see Sec.
million of which was provided by the
schools in each state and (2) additional
(by states) elementary schools. Allocates
14222): $40 million on October 1, 2008;
Consolidated Appropriations Act of 2008
schools in each state in proportion to the
funding among states under a formula
$65 million on July 1, 2009; $101 million
(P.L. 110-161). This program makes
state’s student population. No new
distributing about half the money equally
on July 1, 2010; and $150 million on July
fresh fruits and vegetables available in
Indian reservations would be added
among states and apportioning the
2011. Available money each succeeding
selected elementary and secondary
specifically. Up to 1% of funds may be
remainder based on population. Priority
July 1 is indexed for inflation. Allocates
schools in a limited number of states and
reserved for federal administration, and
is to be given to schools with high
funds by the formula proposed by the
on three Indian reservations. [42 U.S.C.
states may use up to 5% of their
proportions of lower-income students,
Senate provision, but includes no special
1769(g)]
allocation for administrative expenses.
and at least 100 schools chosen to
set-aside for Indian reservation schools.
[Sec. 4303]
participate must be on Indian
As in the Senate provision, gives priority
reservations. Annual per-student grants
to schools with high proportions of low-
would be determined by states, but must
income students, requires that annual per-
be between $50 and $75. Requires an
student costs be between $50-$75, and
evaluation, providing $3 million in
mandates a $3 million evaluation.
funding. [Sec. 4904]
Authorizes limited set-asides for federal
and state administrative costs, and
discretionary appropriations (in addition
to mandatory Section 32 funds). [Secs.
4304 & 14222]
Sec. 10603 of the 2002 farm bill states
Increases the set-aside for the
Provides that, in lieu of purchases
Provides that, in addition to the minimum
that USDA is required to use not less
Department of Defense Fresh program
required under Sec. 10603, USDA
($200 million-a-year) acquisitions
than $200 million a year in Section 32
(“DoD Fresh”) to $75 million a year.
purchase fruits, vegetables, and nuts for
required by the 2002 farm bill, USDA
funding to purchase fruits, vegetables,
[Sec. 4301]
use in domestic food assistance programs
will purchase fruits, vegetables, and nuts
and certain other specialty food crops.
using Section 32 funds. Minimum
for use in domestic nutrition assistance
Of this amount, at least $50 million a
purchase amounts are $390 million for
programs using Section 32 funds. The
year must be used to acquire fresh fruits
FY2008, rising to $406 million in
added purchases required are: $190
and vegetables for schools through the
FY2012 and for each year thereafter.
million (FY2008), $193 million

---

CRS-114
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
“DoD Fresh” program (using the Defense
[Sec. 4907]
(FY2009), $199 million (FY2010), $203
Department as the procurement agent).
million (FY2011), and $206 million
[7 U.S.C. 612c-4]
(FY2012 and each year thereafter).
Deletes direct mention of the use of the
DoD Fresh program as a procurement
agent for fresh fruits and vegetables for
schools, but retains a $50 million-a-year
requirement for USDA-sponsored fresh
fruit and vegetable acquisitions for
schools. [Sec. 4404]
The Emergency Food Assistance Program (TEFAP)
Sec. 27 of the Food Stamp Act to use
Increases required funding for TEFAP
Increases required annual funding for
Increases required funding for TEFAP
$140 million of annual appropriations
commodities to $250 million for
TEFAP commodities to $250 million.
commodities. For FY2008, an immediate
under the Food Stamp Act to purchase
FY2008; for later years, this amount is
[Sec. 4110] Also increases the annual
infusion of $50 million is directed. For
food commodities for distribution
indexed annually for food-price inflation.
authorization of appropriations for
FY2009, $250 million in TEFAP
through TEFAP emergency feeding
[Sec. 4028] Increases the annual
TEFAP administrative and distribution
commodities is mandated. For FY2010
organizations. Sec. 204(a) of the Emer-
authorization of appropriations for
costs to $100 million. [Sec. 4802]
through FY2012, the $250 million
gency Food Assistance Act authorizes
TEFAP administrative and distribution
Authorizes competitive grants totaling
provided for FY2009 is to be adjusted for
annual appropriations of $60 million for
costs to $100 million. [Sec. 4201]
$10 million annually to expand the
food-price inflation. Increases the annual
TEFAP administrative and distribution
capacity and infrastructure of food banks
authorization of appropriations for
costs. [7 U.S.C. 2036 and 7508(a)]
so as to improve their ability to handle
TEFAP administrative and distribution
“time-sensitive” (perishable) food
costs to $100 million. [Sec. 4201]
products, their identification of potential
Authorizes appropriations ($15 million a
food donors, and procurement of locally
year through FY2012) for “infrastructure
produced foods. [Sec. 4915]
grants.” Grants are to be made to
emergency feeding organizations
(emphasizing those serving mostly rural
communities) for projects that improve
the availability of perishable “time-
sensitive” foods, improve the security/
diversity of emergency food distribution
and recovery systems, make available
recovered foods to emergency food
providers, improve identifying potential
providers of donated food, and support
construction, expansion, or repair hunger
relief facilities/equipment. [Sec. 4202]

---

CRS-115
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Commodity Supplemental Food Program (CSFP)
Income eligibility limits for the CSFP are
Requires USDA to establish income
Permits the CSFP to serve low-income
Bars USDA from requiring that CSFP
set at 130% of the federal income poverty
eligibility limits for the CSFP that are the
elderly persons with income up to 185%
projects prioritize assistance to either (1)
guidelines for elderly applicants and
same for all applicants. The limits may
of the poverty guidelines, if USDA
the elderly or (2) women, infants, and
185% of the guidelines for households
not exceed 185% of the poverty
determines that appropriations have
children, but does not change eligibility
with women, infants, and children. [7
guidelines. [Sec. 4203]
enabled every state seeking to participate
rules. [Sec. 4221]
U.S.C. 612c note; regulations under Sec.

in the CSFP to participate. [Sec. 4802]
5 of the 1973 Agriculture and Consumer
Protection Act]
Food Distribution Program on Indian Reservations (FDPIR)
Sec. 4 of the Food Stamp Act states that,
Authorizes annual appropriations of $5
Similar to the House bill, but: (1)
Combines elements of both the House
at the request of Indian tribal
million for a fund to purchase “traditional
provides authority for the purchase of
and Senate bills. Adopts House
organizations, a FDPIR may be operated
and locally grown” foods for the FDPIR.
bison meat for the FDPIR (subject to
provisions authorizing appropriations for
on Indian reservations in lieu of food
At least 50% of these foods are to from
appropriations), (2) requires a survey of
a traditional and locally grown food fund,
stamps. [7 U.S.C. 2013]
Native American farmers, ranchers, and
participants to determine which
mandating a minimum purchases from
producers. Requires a report reviewing
traditional foods are most desired, and (3)
Native American producers, and
the procedures for determining the
does not include a House requirement
requiring a report on FDPIR food
contents of FDPIR food packages, the
that at least 50% of distributed foods be
packages. Adopts Senate provisions for
adequacy of the packages, and any plans
produced by Native American farmers,
bison meat purchases and a survey of
to revise them to conform with dietary
ranchers, and producers. [Sec. 4501]
FDPIR participants as to their preference
guidelines. [Sec. 4004]
among traditional foods. [Sec. 4211]
Senior Farmers’ Market Nutrition Program (SFMNP)
Sec. 4402 of the Farm Security and Rural
Authorizes additional appropriations of
Provides added mandatory funding of
Increases total mandatory funding to
Investment Act of 2002 established the
$20 million for FY2008, rising to $75
$10 million a year. The value of SFMNP
$20.6 million a year and, as in the House
SFMNP to provide low-income seniors
million by FY2012. Adds honey to the
benefits cannot be considered income or
bill, adds honey to items that may be
with vouchers for fresh, locally grown
list of items that may be purchased.
resources for any purposes under any
purchased. Adopts House and Senate
fruits, vegetables and herbs usable at
Provides that the value of benefits not be
federal, state, or local law. States and
provisions barring consideration of
farmers’ markets, roadside stands, and
considered income or resources for any
localities also are prohibited from
SFMNP benefits as income/resources and
community-supported agriculture
purposes under any federal, state, or local
collecting sales taxes on food purchased
the collection of sales taxes on SFMNP
programs. Provides annual mandatory
law. Prohibits states and localities from
with SFMNP vouchers.
purchases. [Sec. 4231 & Sec. 4406(c)]
funding of $15 million. [7 U.S.C. 3007]
collecting sales taxes on SFMNP food-
[Sec. 4701& 4702]
voucher purchases. [Sec. 4401]
Community Food Projects
Sec. 25 of the Food Stamp Act
Expands the list of projects to be given
Provides $10 million in annual
Requires USDA to provide a grant to a
authorizes USDA to make grants to non-
preference to include emergency food
mandatory funding. [Sec. 4801]
nonprofit organization to establish and

---

CRS-116
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
profit agencies for community food
infrastructure initiatives, those dealing
support a “healthy urban food enterprise
projects that require a one-time infusion
with retail access in under-served
development center” for activities that
of assistance to become self-sustaining.
markets, those integrating urban and
increase access to healthy affordable
Certain types of projects are to be given
metro-area food production, and those
foods (including locally produced food)
preference. The term of a grant may not
providing assistance for youth, socially
in “underserved communities.” The
exceed 3 years. Not more than $5
disadvantaged individuals, and groups
center is to provide technical assistance
million of annual appropriations under
with limited resources. Increases the
and information to small and medium-
the Food Stamp Act may be used for
maximum term for grants to 5 years.
sized agricultural producers, food
community food project grants. Of
Authorizes annual appropriations of $30
wholesalers and retailers, schools, and
available funds, $200,000 must be
million and increases the set-aside for the
other entities regarding “best practices”
allocated to a special project grant for
grant for common community food
and the availability of assistance for
addressing common community food
problems to $500,000. Raises the federal
aggregating, storing, processing, and
problems. Federal cost-sharing is not to
cost-sharing limit to 75%. [Sec. 4027]
marketing locally produced food and
exceed 50%. [7 U.S.C. 2034]
increasing availability in underserved
communities. Provides mandatory
funding of $1 million a year (FY2009-
2011); authorizes appropriations of $2
million (FY2012). [Sec. 4402]
No comparable provision.
No comparable provision.
Requires USDA give priority to projects
Adopts Senate provision with an
promoting healthy food education be
amendment to strike the authorization of
replicated in schools. Authorizes a new
appropriations to carry out the provision.
pilot project ($10 million) in not more
[Sec. 4303]
than 5 States to provide grants to
“high-poverty” schools for initiatives
with hands-on gardening. No
cost-sharing is required. [Sec. 4903]
Geographic Preference (Purchase of Locally Produced Foods)
Sec. 9(j) of the Richard B. Russell
Removes provisions for start-up grant
Same as the House bill, except that
Adopts House and Senate provision
National School Lunch Act requires
funding to help carry out the locally
geographic preference would be allowed
removing provisions for start-up grant
USDA to encourage schools to purchase
produced food purchase policy. Requires
only for locally grown fruits and
funding. Requires USDA to allow
locally produced foods to the maximum
USDA to allow schools and other
vegetables. [Sec. 4902]
schools and other institutions receiving
extent practicable and appropriate.
institutions receiving funds under the
funds under the National School Lunch
Authorizes appropriations of $400,000 a
National School Lunch and Child
and Child Nutrition Acts (and the
year (including for start-up grants for
Nutrition Acts to use geographic
Defense Department acting as a fresh
equipment and incurred costs).
preference for the procurement of locally
fruit and vegetable buying agent) to use
[42 U.S.C. 1758(j)] By regulation, any
produced foods. The Defense
geographic preference for the
procurement under USDA entitlement
Department, acting as a fresh fruit and
procurement of “unprocessed agricultural
programs, including school meal and
vegetable procurement agent for schools,
products, both locally grown and locally
other child nutrition programs, must be
also is covered by this rule. [Sec. 4304]
raised.” [Sec. 4302]

---

CRS-117
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
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) and 3016.36(c)(2)]
Special Initiatives
No comparable provision.
Authorizes annual appropriations of $10
Provides total mandatory funding of $50
Combines House and Senate provisions
million for a demonstration competitive
million for pilot projects to develop and
to authorize pilot projects that develop
grant program (“Initiative to Address
test methods of using the (renamed) Food
and test methods of using the (renamed)
Obesity Among Low-Income
Stamp program to improve the dietary
Food Stamp program to improve the
Americans”) to develop and implement
and health status of participants and
dietary and health status of participants
strategies to reduce obesity in the low-
reduce overweight, obesity, and diet-
and reduce overweight, obesity, and diet-
income population. Project proposals
related diseases. Project initiatives are to
related diseases. Specifies that project
would be evaluated against criteria
increase the availability and purchase of
proposals will be evaluated against the
including identification of a low-income
healthy foods and may include expanded
criteria laid out in the House bill, and
target audience, incorporation of
program benefits, greater access to
specifies projects may not limit the use of
scientifically based strategies to improve
farmers’ markets, incentives to
benefits. Project initiatives may include
diet quality, commitment to a rigorous
participating food concerns, new
those listed in the Senate provision, and
evaluation, and inclusion of strategies for
approval requirements for participating
independent project evaluations are
after-school food service and improve-
food concerns, point-of-purchase
required. Authorizes annual appropria-
ment of children’s health. Prohibits the
incentives for program recipients to buy
tions (set at “such sums as are necessary”
use of demonstration funds for projects
healthy foods, and education programs.
annually through FY2012) to carry out
that limit the use of benefits. [Sec. 4023]
Independent evaluations of the projects
these health and nutrition promotion pilot
are mandated, and up to 50% of the
projects. Provides mandatory funding (a
funding must be used for point-of-
one-time $20 million) for point-of-
purchase incentive projects. [Sec. 4403]
purchase incentive projects. [Sec. 4141]
No comparable provision.
Directs a comprehensive study of
Same as the House bill, but also provides
Adopts Senate provision to direct a study
Note: Puerto Rico receives an annual
extending the regular (renamed) Food
$1 million in mandatory funding for the
of extending the (renamed) Food Stamp
(indexed) nutrition assistance block grant
Stamp program to Puerto Rico. [Sec.
study. [Sec. 4206]
program to Puerto Rico and provide
in lieu of operating a regular Food Stamp
4026]
mandatory funding of $1 million.
program.
[Sec. 4142]
No comparable provision.
No comparable provision.
Provides mandatory funding ($5 million)
Deletes Senate provision.
for grants to projects for expanding the
number of farmers’ markets that accept
Note: Sec. 10106 effectively adopts
electronic benefit transfer (EBT) cards
Senate provision to provide funding for
used in the (renamed) Food Stamp
similar programs.

---

CRS-118
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
program. [Sec. 4210]
No comparable provision.
No comparable provision.
Requires a periodically updated study of
Similar to the Senate provision,
hunger in the U.S., assessing data and
authorizes appropriations (“such sums as
hunger-reduction measures and making
are necessary” through FY2012) for
policy recommendations. Authorizes
matching grants (1) to food program
matching grants (1) to food program
service providers and nonprofits for
service providers and nonprofits for
collaborative efforts to assess community
collaborative efforts to assess community
hunger problems and to achieve “hunger-
hunger problems and to achieve “hunger-
free communities” and (2) to emergency
free communities” and (2) to emergency
feeding organizations for infrastructure
feeding organizations for infrastructure
development. Any available funding is
development. Authorizes $50 million a
to be divided equally between these to
year for these studies and grants.
grant initiatives, and the federal matching
[Sec. 4405]
percentage is limited to 80%. [Sec. 4405]
No comparable provision.
No comparable provision.
Requires periodic USDA surveys of
Similar to Senate provision, requires a
foods purchased by schools in the School
USDA survey of foods purchased by
Lunch program and provides mandatory
schools in the School Lunch program and
funding of $3 million for each survey.
provides mandatory one-time funding of
[Sec. 4901]
$3 million. [Sec. 4307]
Sec. 19 of the Child Nutrition Act
No comparable provision.
Provides annual mandatory funding of $3
Deletes Senate provision.
authorizes appropriations for “Team
million for Team Nutrition Network
Nutrition Network” grants to states and
grants. [Sec. 4905]
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
Similar to Senate provision, requires
whole grain products as meal
USDA to purchase whole grains and
supplements (snacks) in after-school
whole grain products for use in school
programs operated by a limited number
meal programs and an evaluation of this
of elementary and secondary schools in 6
initiative. From mandatory Section 32
states and on one Indian reservation.
funding made available under Sec.
Provides mandatory funding of $4
14222, provides $4 million (in FY2009)
million to carry out and evaluate project.
to carry out the whole grain project. [Sec.
Funds are to be derived equally from
4305 & Sec. 14222(d)]
money otherwise available for the Senior
Farmers’ Market Nutrition program and
community food projects. [Sec. 4912]

---

CRS-119
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
Authorizes a “food employment
Deletes Senate provision.
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]
Section 4404 of the Farm Security and
Restates Sec. 4404 with provisions
Same as the House bill, except that the
Adopts Senate provision restating and
Rural Investment Act of 2002 authorizes
similar to those contained in prior law.
Senate amendment (1) authorizes
revising Sec. 4404. [Sec. 4401]
a Congressional Hunger Fellows program
Provisions differ primarily by authorizing
issuance of “grants” to the Hunger Center
to encourage future U.S. leaders to
annual appropriations of $3 million and
(as opposed to “contracts”) and
pursue careers in humanitarian and public
by specifically naming the Congressional
authorizes appropriations at “such sums
service and provide aid to people in need.
Hunger Center as the administering entity
as are necessary.” [Sec. 4404]
Two types of fellowships are authorized:
for Emerson and Leland fellowships.
(1) Bill Emerson fellowships relating to
[Sec. 4402]
domestic hunger and humanitarian needs
and (2) Mickey Leland fellowships that
address international hunger and other
humanitarian needs. Establishment of a
trust fund is authorized to support these
fellowships through an agreement with
the Congressional Hunger Center (which
administers the fellowships).
Note: The trust fund has not been funded.
Instead, the Congressional Hunger Center
typically receives $2.5 million as part of
the annual USDA appropriations.
TITLE V: AGRICULTURAL CREDIT
USDA Farm Ownership Loans
Requires borrowers for USDA direct
No comparable provision.
Expands and clarifies the qualification
Adopts Senate provision. [Sec. 5001]
farm ownership loans to have training, or
criteria to allow USDA to take “into
farming and ranching experience, that “is
consideration all farming
sufficient to assure reasonable prospects
experience...without regard to any lapse
of success in the proposed farming
between farming experiences.” [Sec.
operations.” [7 U.S.C. 1922(a)(2)] Same
5001] Same provision for farm operating

---

CRS-120
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
provision for farm operating loans.
loans Sec. 5101(1)-(2)]
[7 U.S.C. 1941(a)(2)]
Allows direct farm ownership loans to be
No comparable provision.
Adds another loan purpose to allow
Deletes Senate provision.
used for buying a farm or ranch, capital
beginning farmers and ranchers to use a
improvements, closing costs, soil/water
direct farm ownership loan to refinance a
conservation projects, and refinancing
guaranteed farm ownership loan.
bridge loans. [7 U.S.C. 1923(a)(1)]
[Sec. 5002]
Allows direct and guaranteed loans for
Replaces prior law provision with a new
Adds additional purposes for the
Adopts House provision, with
soil and water conservation projects.
conservation loan guarantee program.
conservation loan to include (1)
modification. Allows USDA to make
Gives priority to conservation structures
Provides loan guarantees or interest rate
conversion to organic production and (2)
loans or issue loan guarantees. Does not
or practices that comply with 16 U.S.C.
subsidies for qualified conservation
certain environmental quality practices.
specify a maximum amount or duration,
3812. Maximum loan size is $50,000.
projects to farmers, ranchers or other
Gives priority to beginning farmers or
but says that guarantees should be 75%
[7 U.S.C. 1924]
entities primarily engaged in farming.
ranchers, socially disadvantaged farmers
of the loan principal. Does not include
Gives priority to beginning farmers and
or ranchers, and management practices
interest subsidies. Managers statement
ranchers, socially disadvantaged farmers
that comply with 16 U.S.C. 3812.
says loan limits for other Farm Service
or ranchers, conversion to sustainable or
Eliminates the maximum loan size
Agency operating loans should apply.
organic production, or structures or
provision. [Sec. 5003]
[Sec. 5002]
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 appropriations of such sums
as necessary (FY2008-12). [Sec. 5001]
Sets a maximum per borrower of
Raises to $300,000 the maximum loan
Similar to House provision, except does
Adopts Senate provision. [Sec. 5003]
$200,000 for direct farm ownership
per borrower. Requires USDA to
not have clause about graduation to other
loans. [7 U.S.C. 1925]
establish plans to encourage borrowers to
sources of credit. [Sec. 5004]
graduate to private or commercial credit.
[Sec. 5002]
Authorizes down payment loans on farm
Expands eligibility to include socially
Similar to House provision, except
Adopts House provision, with
real estate to beginning farmers and
disadvantaged farmers and ranchers.
interest rate equals the greater of 2% or
modification. The interest rate equals the
ranchers up to 40% of the purchase price
Raises loan limit to 45% of the lowest of
the regular direct farm ownership interest
greater of 1.5% or the regular direct farm
or appraised value. Maximum property
the purchase price, appraised value, or
rate minus 4%. [Sec. 5005]
ownership interest rate minus 4%. [Sec.
value is $250,000. Loan duration up to
$500,000. Removes limit on property
5004]
15 years. Interest rate equals 4%.
value. Extends loan duration up to 20
Requires borrower down payment of
years. Interest rate equals the greater of

---

CRS-121
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
10%. [7 U.S.C. 1935]
1% or the regular direct farm ownership
interest rate minus 4%. Reduces borrower
down payment requirement to 5%.
Requires USDA to establish annual
performance goals. [Sec. 5003]
Creates a pilot program to guarantee
Makes permanent and nationwide the
Similar to House provision, except does
Adopts House provision, with
loans made by a private seller of a farm
guarantee program for privately financed
not include socially disadvantaged
modification. Provides a transition
or ranch to a beginning farmer or rancher
contract land sales. Expands eligibility to
farmers and ranchers, and does not
period until 2011. [Sec. 5005]
on a contract land sales basis. Available
socially disadvantaged farmers/ranchers.
include seller’s choice for guaranteed
in 5 States, up to 5 loans per state in
Requires a 5% down payment. Sets
payment of 90% of outstanding principal.
each of fiscal years 2003-07. [7 U.S.C.
maximum purchase price at $500,000
[Sec. 5006]
1936]
and a 10-year 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
Authorizes loans to purchasers of highly
Similar to House provision. [Sec. 5401]
Adopts Senate provision. [Sec. 5501]
Tribe or tribal corporation to acquire
fractioned land. [Sec. 5005]
lands within the tribe’s reservation or a
community in Alaska. [25 U.S.C. 488]
USDA Farm Operating Loans
Limits direct farm operating loans to (1)
No comparable provision.
Clarifies that USDA may consider all
Adopts Senate provision, but does not
beginning farmers or ranchers, or (2)
farming experience for eligibility.
extend the duration of eligibility. [Sec.
farmers or ranchers who have received
Extends by one year (to 7 years) the
5101]
direct operating loans for 6 or fewer
eligibility for a direct operating loan.
years. [7 U.S.C. 1941(c)(1)]
[Sec. 5101(3)]
Sets a maximum per borrower of
Raises to $300,000 the maximum per
Same as House provision. [Sec. 5102]
Adopts House provision. [Sec. 5102]
$200,000 for direct farm operating loans.
borrower. [Sec. 5011]
[7 U.S.C. 1943]
Limits eligibility for guaranteed
Extends the suspension of term limits for
Repeals the term limits provision on
Adopts House provision, except extends
operating loans to 15 years (a.k.a., term
guaranteed operating loans through Jan.
guaranteed operating loans. [Sec. 5103]
the suspension of term limits through
limits). The 2002 farm bill and
1, 2008. [Sec. 5012]
Dec. 31, 2010. [Sec. 5103]
successive legislation suspended
application of this limit. [7 U.S.C.
1949(b)(1)]

---

CRS-122
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
USDA Emergency Loans
Authorizes Farm Service Agency
No comparable provision.
Adds eligibility for emergency loans to
Adopts Senate provision. Managers’
emergency disaster loans for farmers,
equine farmers and ranchers. [Sec. 5404]
statement notes horses for racing,
ranchers, and aquaculture operations
showing, recreation, or pleasure are not
under certain conditions.
eligible. [Sec. 5201]
[7 U.S.C. 1961(a)]
Administrative Provisions
No comparable provision.
No comparable provision.
Creates a pilot program of individual
Adopts Senate provision, with
development accounts for beginning
modification. Reduces matching deposit
farmers and ranchers in at least 15 States.
to between 2 to 1 per dollar deposited
Producers make deposits into savings
(maximum $6,000 matching per year),
accounts and receive a matching deposit
reduces grants to $250,000 maximum,
ranging between 3 to 1 per dollar
increases non-federal matching to 50%,
deposited (maximum $9,000 matching
limits administrative cost to 10%, reduces
per year). Withdrawals allowed to buy
authorization for appropriation to $5
farmland; make mortgage payments; buy
million annually. [Sec. 5301]
equipment, breeding stock, or trees;
harvest timber; or pay for training.
Withdrawals must be made within 2
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 5 years, plus 2 years for withdrawals.
Authorizes appropriations of $10 million
annually in FY2008-12. [Sec. 5201]
Requires USDA to include beginning
Gives first priority to socially
Similar to House provision, except does
Adopts Senate provision. [Sec. 5302(a)]
farmers and ranchers in the process when
disadvantaged farmers and ranchers
not give priority to socially
selling or leasing USDA-acquired
when USDA sells or leases property.
disadvantaged farmers over beginning
property. [7 U.S.C. 1985(c)]
Adds socially disadvantaged farmers to
farmers. [Sec. 5202(a)]
beginning farmers when discussing steps
in the process. [Sec. 5021]
Reserves loan amounts for beginning
Increase the reservation for beginning
Same reservations as the House
Adopts Senate provision. [Sec. 5302(b)]
farmers and ranchers: 70% of direct farm
farmers and ranchers: 75% of direct farm
provision, except refers to “joint
ownership loans, and of this amount,
ownership loans, and of this amount b
financing arrangements” instead of
60% for down payment loans. Reserves
for the down payment and participation
“participation loans.” [Sec. 5202(b)]

---

CRS-123
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
35% of direct operating loans in FY2003-
loans. Reserves 50% of direct operating
07. Reserves 25% of guaranteed farm
loans in FY2008-12. Reserves 40% of
ownership loans, and 40% of guaranteed
guaranteed farm ownership loans.
operating loans. [7 U.S.C. 1994(b)(2)]
[Sec. 5022]
Sets loan authorization levels totaling
No comparable provision.
Raises loan authorization levels to $4.226
Adopts Senate provision. [Sec. 5303]
$3.796 billion for each of FY2003-07,
billion for each of FY2008-12, including
including $770 million for direct loans
$1.2 billion for direct loans ($350 million
($205 million for farm ownership loans,
for farm ownership loans and $850
and $565 million for operating loans),
million for operating loans). No
and $3.026 billion for guaranteed loans
increases for guaranteed loans. [Sec.
($1 billion farm ownership loans, and
5204]
$2.026 billion for operating loans).
[7 U.S.C. 1994(b)(1)]
No comparable provision.
Requires USDA to promote the goal of
Same as House provision. [Sec. 5203]
Adopts House provision. [Sec. 5304]
moving borrowers to commercial or
other sources of credit when writing
regulations. [Sec. 5023]
Allows a borrower-owner who is
Extends the right of first refusal to
No comparable provision.
Adopts House provision. [Sec. 5305]
occupying a homestead that is in the
reacquire homestead property during the
possession of USDA because of
occupancy period to members of the
foreclosure or bankruptcy to have the
immediate family of a borrower-owner
right of first refusal to reacquire the
who is a socially disadvantaged farmer or
homestead property at any time during
rancher. [Sec. 5024]
occupancy. [7 U.S.C. 2000(c)(4)(B)]
Requires an interest rate reduction
No comparable provision.
Clarifies that the interest rate reduction
Deletes Senate provision.
program for guaranteed loans. [7 U.S.C.
program be available for new guaranteed
1999(a)]
operating loans or restructured
guaranteed operating loans. [Sec. 5205]
Allows re-amortization of the repayment
No comparable provision.
Clarifies that deferral is an available loan
Deletes Senate provision.
of a shared appreciation agreement that is
servicing tool and that deferral may not
delinquent. [7 U.S.C. 2001(e)(7)(D)]
exceed 1 year. [Sec. 5206]
No comparable provision.
Prohibits USDA from studying or
Similar to House provision. [Sec. 5207]
Adopts House provision. [Sec. 5306]
entering into a contract for competitive
sourcing in the rural development or farm
loan programs. [Sec. 5025]

---

CRS-124
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Defines “farmer” and “farming” to
No comparable provision.
Adds commercial fishing to the definition
Deletes Senate provision.
include fish farming. [7 U.S.C.
of farmer and farming. [Sec. 6020(c)]
1991(a)(1)-(2)]
Farm Credit System (FCS)
Allows voting stock in Banks for
Allows other categories of persons and
No comparable provision.
Adopts House provision. [Sec. 5403]
Cooperatives to be held only by (1)
entities who are eligible to borrow from
cooperative associations that are eligible
Banks for Cooperatives to hold voting
to borrow from the banks; and (2) other
stock, as determined by the board of
banks for cooperatives. [12 U.S.C.
directors. [Sec. 5031]
2124(c); 12 U.S.C. 2154a(c)(1)(D)]
Sets the par value of capital stock in the
No comparable provision.
Makes a technical correction to refer to
Adopts Senate provision. [Sec. 5402]
Bank for Cooperatives. [12 U.S.C.
par value. [Sec. 5302]
2124(b)]
Requires that members of the Farm
No comparable provision.
Requires Senate confirmation of the
Deletes Senate provision.
Credit Administration Board be
President’s choice of chairman. [Sec.
appointed by the President and confirmed
5303]
by the Senate. The President designates
one as chairman. [12 U.S.C. 2242(a)]
Defines what types of loans are eligible
Allows rural utility (electric or telephone
Similar to House provision, except (1) it
Adopts Senate provision.
for the agricultural mortgage secondary
facility) loans to qualify for the
recasts loan standards in terms of
[Sec. 5406(a)-(c)]
market (Farmer Mac). [12 U.S.C.
agricultural mortgage secondary market
agricultural mortgages, and (2) removes
2279aa(9)]
(Farmer Mac). Does not apply certain
congressional review of standards (in 12
requirements for guarantees and
U.S.C. 2279aa-8). [Sec.5306(a)-(c)]
standards to rural utility loans. [Sec.
5032]
Establishes a risk-based capital test for
Provides for separate consideration of
Similar to House provision. [Sec.
Adopts Senate provision. [Sec. 5406(d)]
the Federal Agricultural Mortgage
rural utility (electric and telephone) loans
5306(d)]
Corporation (Farmer Mac) to determine a
when determining credit risk. [Sec. 5034]
sufficient level of capitalization. [12
U.S.C. 2279bb-1(a)]
Allows any Farm Credit System bank to
Replaces the formula for computing
Similar to House provision, except it
Adopts Senate provision. [Sec. 5401(a)]
charge associations in its district for the
assessments with a requirement that the
specifies that the equitable manner be
cost of premiums due to the Farm Credit
assessment be computed in an equitable
determined by the FCS Insurance
System Insurance Corporation (FCSIC)
manner. [Sec. 5033(a)]
Corporation. [Sec. 5301(a)]

---

CRS-125
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
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
Gives rule-making authority for
Same as House provision. [Sec. 5301(b)]
Adopts House provision. [Sec. 5401(b)]
power to issue rules and regulations. [12
“authority to pass along cost of insurance
U.S.C. 2277a-7(10)]
premiums” to FCSIC Board of Directors.
[Sec. 5033(h)]
Allows the FCSIC to collect premiums
Removes specification of “annual” when
Similar to House provision. [Sec. 5304]
Adopts Senate provision. [Sec. 5404]
annually. When the Insurance Fund does
referring to FCSIC premiums. Changes
not exceed the secure base amount,
formula for premiums by using different
premiums equal different rates multiplied
rates and classes of assets: insured
by outstanding principal of accrual
obligations after deducting 90% of
(0.0015), non-accrual (0.0025), and
federally-insured accrual loans and
various government-guaranteed
investments and 80% of state-insured
(0.00015-0.0003) loans. Allows reduced
accrual loans and investments (0.002),
premiums when the Fund exceeds the
non-accrual loans (0.001), and other than
secure base amount. The base amount is
temporarily-impaired investments
2% of outstanding insured obligations of
(0.001). Revises the secure base amount
all insured System banks reduced by 90%
definition to include federal- and state-
of federally-insured loans and 80% of
guaranteed investments. Calculate
state-insured loans. Excess premiums
outstanding principal to include
collected in the Fund over the secure base
investments. Calculate excess funds
amount are allocated to insurance reserve
using year-end balances and simplify
accounts for each bank and the Financial
formula to allocate among banks.
Assistance Corporation using average
Terminates reserve fund for Financial
daily balances. [12 U.S.C. 2277a-4]
Assistance Corp. [Sec. 5033(b)-(f)]
Requires annual certification, reporting
Gives discretion to FCSIC for timing of
Similar to House provision. [Sec. 5305]
Adopts Senate provision. [Sec. 5405]
of loan balances, and payment of
certification. Premiums are not to be
premiums by FCS banks to the FCSIC.
collected more than quarterly. [Sec.
[12 U.S.C. 2277a-5]
5033(g)]
No comparable provision.
No comparable provision.
Changes lending authorities of FCS
Adopts Senate provision. [Sec. 5407]
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

---

CRS-126
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
stockholder approval. Effective Jan. 1,
2010. [Sec. 5307]
TITLE VI: RURAL DEVELOPMENT
Defining Rural Eligibility
Sec. 343(a) of the Consolidated Farm and
Directs USDA to submit a report to the
Creates a standard definition of rural area
Adopts the Senate provision but deletes
Rural Development Act (Con Act), as
Agriculture Committees: (1) assessing
that excludes (1) cities of 50,000 or more,
the housing density criterion from the
amended, defines rural as any area other
the varying definitions of rural used by
(2) any urbanized area contiguous and
definition of “rural.” Permits USDA to
than a city or town with a population
USDA; (2) describing the effect of
adjacent to a city of 50,000 or more, and
include “areas rural in character” if they
greater than 50,000 and the urbanized
varying definitions on USDA’s
(3) any collection of contiguous census
meet certain non-urban criteria
area contiguous and adjacent to such a
programs; and (3) recommending
blocks with a specific housing density, or
(excluding Honolulu, HI, and San Juan,
city or town. [7 U.S.C. 1991(a)]
changes to better target funds through
adjacent to a city of 50,000 or urban area.
PR). Does not change eligibility for water
rural development programs. [Sec. 6001]
[Sec. 6020]
and waste water funding. [Sec. 6018]
No comparable provision.
Authorizes USDA to review socio-
No comparable provision.
Deletes the House provision.
economic variables as factors in
awarding rural development loans and
grants, and issue regulations. [Sec. 6014]
Rural Infrastructure: Water and Waste Disposal
The 2002 farm bill amended the Con Act
Reauthorizes through 2012. [Sec. 6002]
Reauthorizes through 2012. [Sec. 6001]
Reauthorizes through 2012. [Sec. 6001]
to authorize 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)]
The Con Act, as amended, sets interest
No comparable provision
Senate provision establishes interest rates
Adopts the Senate provision. [Sec. 6011]
rate levels not to exceed current market
for water and waste water loans based on
yields for outstanding municipal
a market index of loans to ensure that
obligations. Low-income rural residents
interest rates for intermediate and poverty
receive interest rates below this
rate loans are tied to the current market
maximum level. [7 U.S.C. 1927 (a)(3)
rate. The poverty rate is set at 60% of the
(A)]
market rate and the intermediate rate is
set at 80% of market rate. [Sec. 12602]

---

CRS-127
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The 2002 farm bill amended the Con Act
Reauthorizes through 2012, authorizing
Reauthorizes through 2012, authorizing
Adopts the House provision. [Sec. 6006]
to authorize appropriations for a
$25 million for FY2008. [Sec. 6004]
$20 million for FY2008. [Sec. 6004]
water/wastewater circuit rider 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
Reauthorizes through FY2012.
Reauthorizes through FY2012.
Reauthorizes through FY2012.
to authorize USDA to provide
[Sec. 6006]
[Sec. 6011]
[Sec. 6008]
Emergency and Imminent 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
Adopts the Senate provision. Provides
spending for pending water/wastewater
$120 million in mandatory spending.
loans, grants and emergency community
[Sec.6029]
assistance grants, to be available until
expended. [Sec. 6033]
The Con Act, as amended, authorizes
Reauthorizes through FY2012.
Reauthorizes through FY2013. Amends
Adopts House provision with an
USDA to make grants for water systems
[Sec. 6007]
program to provide grants to the Denali
amendment to provide $1.5 million
for rural and native villages in Alaska.
Commission for solid waste management
annually FY2008-2012 to the Denali
Authorizes appropriations of $30 million
and for rural drinking water sites in
Commission for solid waste
annually for FY2001-07. [7 U.S.C.
Alaska (not more than 5% of total
management. [Sec. 6009]
1926d(d)(1)]
program funding). [Sec. 6012]
The 2002 farm bill amended the Con Act
Reauthorizes through FY2012. Amends
Reauthorizes through FY2012.
Adopts House provision with changes,
to authorize USDA to make grants to
program to authorize USDA to make
[Sec. 6013]
striking consideration of matching funds
private nonprofits for loans to eligible
grants to private non-profits for loans to
and increasing the assistance limit for
low-income individuals to construct,
eligible low-income individuals.
each well from $8,000 to $11,000. [Sec.
refurbish, and service household water
[Sec. 6008]
6010]
well systems in rural areas (giving
priority to certain applicants). Authorizes
appropriations of $10 million annually
for FY2003-07. [7 U.S.C. 1926e(d)]

---

CRS-128
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision
Amends the ConAct to authorize grants
Deletes Senate provision.
to develop wells in isolated rural areas.
Provides $10 million annually FY2008-
2012. [Sec. 6013]
The 2002 farm bill amended the Con Act
No comparable provision.
Reauthorizes SEARCH grants and
Adopts Senate provision. [Sec. 6002]
to establish a SEARCH grant program,
amends program. Provides up to 4% of
providing technical assistance for water
funds available for water, waste disposal,
and waste disposal facilities. [7 U.S.C.
and essential community facilities to
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
Reauthorizes grants through FY2012.
Reauthorizes grants through FY2012.
Reauthorizes grants through FY2012.
to authorize grants to acquire radio
[Sec. 6018]
[Sec. 6026]
[Sec. 6021]
transmitters to increase rural 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
Reauthorizes through FY2012. Redefines
Reauthorizes through FY2012. Redefines
Adopts Senate provision with changes.
Electrification Act (REA) of 1936 [7
eligibility and prioritizes loan
eligibility and prioritizes loan
Permits assistance to areas with more
U.S.C. 901 et seq.] by authorizing USDA
applications to areas based on number of
applications. Prohibits loans to areas
than 3 providers under certain conditions.
to provide loans and loan guarantees for
service providers. Amends definition of
served by 3 or more providers.
Gives highest priority to applicants
the costs of providing broadband service
rural area. Limits loan terms to 35 years.
Authorizes $25 million annually
serving the most rural residents. Prohibits
to rural areas, as part of the Enhancement
Extends authority to provide loans to
(FY2008-12). Authorizes a National
eligibility to providers res serving more
of Access to Broadband Service in Rural
FY2012. Authorizes a National Center
Center for Rural Telecommunications
than 20% of the market. Permits USDA
Areas provisions. [7 U.S.C. 950bb]
for Rural Telecommunications
Assessment and authorizes $1 million in
to require cost-share funding. [Sec. 6110]
Assessment and authorizes $1 million in
appropriations annually. [Sec. 6110]
Adopts House and Senate measure to
appropriations annually. [Sec. 6023]
Establishes which areas are eligible for
authorizes National Center for Rural
REA assistance. [Sec. 6105]
Telecommunications. [Sec. 6111].
Adopts Senate provision defining REA
eligibility. Eligible rural areas exclude
town of 20,000 or more. [Sec. 6104]
Sec. 601(a) et seq. of the REA, as
Authorizes the Community Connect
Authorizes the Connect the Nation Act
No change to current law.
amended, authorizes USDA to provide
Grant Program to provide broadband
and creates a competitive matching grant

---

CRS-129
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
loans and loan guarantees to electric
service for education, public safety, and
program to encourage state initiatives for
utilities to serve customers in rural areas.
health care in rural areas. Authorizes
public-private partnerships [Sec. 6201]
[7 U.S.C. 950bb(b)]
appropriations of $25 million annually
and authorizes grants to encourage state
(FY2008-12). [Sec. 6024]
initiatives [Sec. 6202] to provide broad-
band service to rural areas. Authorizes
appropriations of $40 million annually
(FY2008-12).
Sec. 2333 of the 1990 farm bill (Food,
Reauthorizes the grant program to assist
Reauthorizes appropriations through
Adopts Senate provision with changes
Agriculture, Conservation, and Trade
rural public television stations in making
FY2012. Amends provision: (1) adds
that only libraries are added as eligible
Act, P.L. 101-624) provides grants to
the transition from analog to digital
library connectivity and public television
entities. Makes public television stations
non-commercial television that serve
broadcast equipment. [Sec. 6028]
station digital conversion into the
eligible for funding for high-speed
rural areas. [7 U.S.C. 950aaa-2] Also,
Reauthorizes Telemedicine and Distance
notification; (2) species requirements on
telecommunications for educational
Sec. 2335A authorizes Telemedicine and
Learning Services in Rural Areas
how financial assistance is to be used and
programming in rural areas. [Sec. 6201]
Distance Learning Services in Rural
through FY2012. [Sec. 6029]
criteria for prioritizing; (3) requires
Areas by providing loans/grants to
USDA to notice the amount of financial
schools and medical facilities for telecom
assistance available to applicants, among
technologies. [7 U.S.C. 950aaa5]
other provisions. Renames program the
Telemedicine, Library Connectivity,
Public Television, and Distance Learning
in Rural Areas, and reauthorizes through
FY2012. [Sec. 6302]
The Con Act, as amended, authorizes
No comparable provision.
Reauthorizes through FY2012. [Sec.
Reauthorizes through FY2012
appropriations for grants for broadcasting
6016]
[Sec. 6014]
systems, funded at $5 million annually
(FY2002-07). [7 U.S.C. 1932(f)]
No comparable provision.
Directs USDA to prepare a report that
Directs the Federal Communications
Adopts Senate provision. Requires an
develops a comprehensive national
Commission, in coordination with
update of the report in the third year
broadband strategy. [Sec. 6031]
USDA, to submit a report to Congress
following enactment. [Sec. 6112] Adopts
describing a comprehensive rural
Senate provision striking an obsolete
broadband strategy. [Sec. 6111]
reference to dial-up Internet and place the
Instructs the U.S. Comptroller General of
provision in a separate section. [Sec.
to conduct a study of the Rural Utilities
6005]. Deletes Senate provision for a
Service administration and of Federal
GAO study.
assistance for broadband programs, with
recommendations. [Sec. 6113]
The 2002 farm bill amended the REA to
Reauthorizes through FY2012. [Sec.
Reauthorizes through FY2012. Expands
Adopts the Senate provision changes to
authorize USDA to expand 911 access
6022]
eligibility to emergency communication
make emergency communication

---

CRS-130
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
and make telephone loans for rural
providers. Authorizes USDA to use funds
equipment providers eligible for loans.
emergency services. [7 U.S.C. 940e]
made available for telephone or
[Sec. 6107]
broadband loans; requires USDA
promulgate regulations [Sec. 6107]
Agricultural-Based Rural Economic Development
The 2002 farm bill amended the Con Act
Establishes new criteria for loans and
Similar to the House bill, but also:
Adopts Senate provision with changes
to authorize appropriations for direct and
loan guarantees, directing USDA to favor
defines “under-served community;”
that extend the distance a product can
guaranteed loans for rural business
projects that support local/regionally
establishes priorities for projects that
travel and be eligible. Defines
development. [7 U.S.C. 1926(a)(11)(D)]
produced agricultural products. [Sec.
support community development and
“underserved community” and gives
6010]
marketing, distributing, storing,
priority to entities providing products to
aggregating, or processing a locally-
these communities.
produced product; sets a per-facility limit
[Sec. 6015]
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
Similar to the House bill. [Sec. 6018]
Adopts the Senate provision with minor
Appropriate Technology Transfer for
changes to elaborate on the purpose of
Rural Areas at $5 million annually
the program. [Sec. 6016]
(FY2008-12). [Sec. 6011]
No comparable provision.
No comparable provision.
Establishes Artisanal Cheese Centers to
Deletes the provision.
provide educational technical assistance
to eligible cheese manufacturing and
marketing businesses. [Sec. 6023]
Sec. 231 of the Agricultural Risk
Authorizes $6 million subject to
Expands the definition of value-added
Adopts the Senate provision with
Protection Act of 2000 [7 U.S.C. 1621],
appropriations annually (FY2008-12).
products. Reduces the maximum grant
modification. Reserves 10% of funds for
as amended by the 2002 farm bill,
[Sec. 6027]
amount to $300,000. [Sec. 6401]
projects benefitting beginning farmers
authorizes USDA to make Value-Added
and ranchers and socially disadvantaged
Agricultural Product Development
farmers and ranchers, and 10% of funds
Grants to assist agricultural producers to
for projects to develop mid-tier value
establish businesses to produce value-
chains. Provides $15 million in
added agricultural products, and provide
mandatory funding. [Sec. 6202]
for technical assistance and planning.
No comparable provision.
No comparable provision.
Amends the Con Act to provide
Adopts Senate provision with technical
reimbursement payments to
changes. [Sec. 1621]

---

CRS-131
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
“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
Reauthorizes through FY2012 and gives
Similar to the House bill; also establishes
Adopts House provision with technical
authorizing a program to restore historic
priority to projects that identify,
a grant may be made for projects that
changes. [Sec. 6020]
barns. [7 U.S.C. 2008o(c)]
document, and conduct research on
rehabilitate or repair historic barns;
historic barns and develop and evaluate
preserve historic barns; and identify,
appropriate techniques or best practices
document, survey, and conduct research
for protecting historic barns. [Sec. 6017]
on historic barns/structures. [Sec. 6025]
The 2002 farm bill authorized an
Reauthorizes the program and provides
No comparable provision
Adopts the House provision.
Agricultural Innovation Center
$6 million annually (FY2008-12).
[Sec. 6203]
Demonstration program. [7 U.S.C. 1621]
[Sec. 6025]
Regional Economic Development and Planning
The Con Act, as amended, authorizes a
Reauthorizes appropriations through
Reauthorizes appropriations through
Adopts House provision with changes.
Delta Regional Authority, providing
FY2012. [Sec. 6019]
FY2012; amends program to allow for
Adds counties to be eligible. Establishes
funds for 240 counties in 8 states in
grants for health care facility
separate Health Care Services section and
Mississippi Delta. [7 U.S.C. 2009aa-1]
development. [Sec. 6029]
defines eligibility to mean Mississippi
River Delta region. [Secs. 6024-6025]
The 2002 farm bill amended the Con Act
Amends program to eliminate
Eliminates requirement for a federal
Adopts Senate provision with changes.
authorizing the Northern Great Plains
prioritization of activities to be funded.
commission member, unless appointed.
Requires the Commission to coordinate
Regional Authority to make grants and
Modifies federal share of administrative
Broadens list of eligible organizations.
with tribal leaders if no federal co-chair
loans and implement a regional
expenses. Eliminates Isolated Areas of
Provides assistance to states in providing
is names. Defines organizations that may
development plan. [7 U.S.C. 2009bb-1]
Distress designation. [Sec. 6020]
regional plans for renewable energy and
serve in the capacity of federal co-chair.
transportation. [Sec. 6030]
[Sec. 6026]
No comparable provision.
No comparable provision.
Amends the Con Act to authorize a new
Adopts Senate provision. Authorizes 3
Northern Border Economic Development
additional regional commissions and
Commission (VT, NY, NH, and ME);
provides them $30 million each FY2002-
authorizes appropriations of $40 million
2012. [See Sec. 14217]
annually (FY2008-12). [Sec. 6034]
The Con Act, as amended, authorizes
No comparable provision.
Reauthorizes through FY2012.
Deletes Senate provision.
grants to multi-jurisdictional regional
[Sec. 6005]
planning and development organizations;
$30 million annually through FY2007.

---

CRS-132
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
[7 U.S.C. 1926(a)(23)]
The Con Act, as amended, authorizes
No comparable provision.
Directs USDA to continue Rural
Adopts Senate provision. [Sec. 6017]
loans and grants for business and
Economic Area Partnership Zones (NY,
community development. [7 U.S.C.
ND, and VT) with areas of high
1932]
unemployment/poverty. [Sec. 6019]
No comparable provision.
Directs USDA, in coordination with the
No comparable provision.
Adopts House provision. Includes other
Department of Transportation, to prepare
transportation systems in addition to rail.
a report on railroad issues regarding the
[Sec. 6206]
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
Reauthorizes through FY2012. [Sec.
Similar to the House bill. [Sec. 6002]
Adopts Senate provision. [Sec. 6003]
to authorize USDA to make Rural
6003]
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
Authorizes USDA to give preference to
Similar to House bill. Allows USDA to
Adopts Senate provision with minor
appropriations for grants to cooperative
grant applications that establish centers
award multi-year grants to programs as
modifications. [Sec. 6013]
development centers. [7 U.S.C.
for rural cooperative development that
deemed by the Secretary; establishes a
1932(e)(5)]
demonstrate specified requirements.
cooperative research program; and
Authorizes $50 million annually
creates a reserve for socially
(FY2008-12). [Sec. 6009]
disadvantaged communities. [Sec. 6015]
No comparable provision.
Authorizes a new Rural Entrepreneur and
Authorizes a new Rural Microenterprise
Adopts House provision with changes.
Microenterprise Assistance Program.
Assistance Program, with mandatory
Provides $15 million in mandatory
Authorizes $20 million annually
spending of $40 million for FY2008,
funding. [Sec. 6022]
(FY2008-12). [Sec. 6013]
available until expended. [Sec. 6022]
The 2002 farm bill amended the Con Act,
Limits discretionary funding of not more
Authorizes a new Rural Collaborative
Adopts Senate provision with changes to
authorizing the Rural Strategic
than $25 million annually FY2008-2012.
Investment Program, with mandatory
include adding rural heritage as a goal of
Investment Program, providing an equity
Adds planning grant eligibility for “rural
spending of $135 million for grants and
the program. Authorizes $135 million in
generating program for rural business
heritage sites.” [Sec. 6021]
administrative activities. [Sec. 6032]
discretionary funds for the period
development modeled on the Small
FY2009-2012. [Sec. 6028]

---

CRS-133
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Business Investment Companies of the
Small Business Administration. [7
U.S.C. 2099dd et seq.]
The 2002 farm bill amended the Con Act,
No comparable provision.
Reauthorizes through FY2012, with
Adopts the Senate provision with
authorizing the Rural Business
changes: debentures may be pre-paid at
modifications. Removes provision
Investment Program to make loans/grants
any time; distributions may be made to
allowing distributions to cover tax
through regional investment boards.
cover tax liability; USDA fees are limited
liability. Limits on funding from certain
[7 U.S.C. 2009cc-5]
to an application fee of $500; and USDA
financial institutions is raised to 25%.
will not be required to operate program
[Sec. 6027]
with other federal agencies. [Sec. 6031]
Community Development Programs
The 2002 farm bill authorizes grants for
Reauthorizes the Rural Firefighters and
No comparable provision.
Adopts House provision with minor
units of general local government, Indian
Emergency Personnel Grant Program,
modifications. [Sec. 6204]
tribes, to pay the cost of training
appropriations up to $30 million annually
firefighters and emergency medical
(FY2008-12). Expands the types of
personnel. [7 U.S.C. 1621]
eligible entities. [Sec. 6026]
The 2002 farm bill amended the Con Act
Reauthorizes through FY2012.
Reauthorizes through FY2012.
Reauthorizes through FY2012.
to authorize the National Rural
[Sec. 6016]
[Sec. 6024]
[Sec. 6019]
Development Partnership, a state-federal
partnership of community rural
development entities. [7 U.S.C. 2008m]
The 2002 farm bill amended the Con Act
No comparable provision.
Authorizes $40 million in mandatory
Adopts Senate provision, but specifies
to authorize loans and grants for
spending for loans, grants, and loan
that the program not receive mandatory
“essential community facilities” (incl.
guarantees to construct child day care
funding. [Sec. 6004]
child day care). [7 U.S.C. 1926(a)(19)]
facility grants. [Sec. 6003]
The Con Act, as amended, authorizes the
No comparable provision
Reserves 0.5% of the funds for
Deletes Senate provision.
Community Facility Grants Program,
community facilities to eligible entities
limited to $10 million per fiscal year for
located in freely associated states or
grants to local governments, nonprofits,
outlying areas as defined in the
and Indian tribes to provide the federal
Elementary and Secondary Education
share of the cost of developing specific
Act of 1965. [Sec. 6008]
essential community facilities authorizes
funds for essential community facilities.
[7 U.S.C. 1926(a) 19]

---

CRS-134
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The Con Act, as amended, authorizes
No comparable provision
Amends to give priority for community
Deletes Senate provision
funds for essential community facilities;
facility projects that are carried out with a
the maximum amount of a community
non-Federal share of funds that is
facility grant cannot exceed 75% of the
substantially greater than the minimum
project costs. [7 U.S.C. 1926(a) 19B]
requirement, as determined by USDA
regulation. [Sec. 6009]
The 2002 farm bill amended the Con Act
Reauthorizes through FY2012. Amends
Reauthorizes through FY2012. Increases
Adopts House provision. [Sec. 6007]
to authorize USDA to provide cost-share
program to direct USDA to establish a
the maximum federal grant tribal colleges
grants to tribal colleges and universities
maximum percentage of the cost of a
and universities receive for the cost of
for developing essential community
facility covered by a grant. Caps non-
developing essential community facilities
facilities in rural areas and universities,
federal support to no more than 5% of the
in rural areas to 95%. [Sec. 6007]
as defined in the Higher Education Act of
facility’s total cost. [Sec. 6005]
1965 for developing 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
Adopts Senate provision with technical
funding for cooperative organizations by
changes. [Sec. 6012]
allowing for business guarantees of
loans. [Sec. 6014]
No comparable provision.
No comparable provision.
Provides grants to expand rural
Adopts Senate provision with minor
employment opportunities for individuals
changes. [Sec. 6023]
with disabilities. Authorizes $2 million
annually (FY2008-12). [Sec. 6028]
The Con Act authorizes grants to train
No comparable provision.
Reauthorizes through FY2012. [Sec.
Deletes Senate provision.
farm workers in new technologies and in
6027]
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
Authorizes loans and loan guarantees to
Deletes both House and Senate
to improve the technical infrastructure of
improve the technical infrastructure of
provisions.
rural health care facilities at $30 million
rural health care facilities. Provides $50
annually (FY2008-12). Identifies types
million in mandatory spending (with at
of eligible rural health facilities. [Sec.
least $25 million for hospitals with less
6012]
than 50 acute care beds). [Sec. 6006]

---

CRS-135
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
Authorizes the Secretary of Housing and
Adopts Senate provision with changes to
Urban Development to provide financial
permit GAO to use private audits for
assistance for community-based housing
review of the Housing Assistance
development entities and affordable
Council. [Secs. 6301-6305]
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
No comparable provision.
Inserts “efficiency and” before
Adopts Senate provision authorizing
to make loans for rural electrification and
“conservation;” makes technical changes
energy efficiency program. [Sec. 6101].
telephone services and to assist borrower
to loan and grants for electric generation;
Deletes provision for loans and grants for
in implementing improvements to
establishes fees for baseload generation
electric generation. [Sec. 6102]. Deletes
electrical and telephone service. [7
loan guarantees; defers loan payments for
Senate provision on fees for loan
U.S.C. 901 et seq.]
improved energy efficiency; defines
guarantees, but requires a study of
“rural” and “farm” for borrowing
electric generating needs in rural areas.
eligibility; and specifies procedures for
[Sec. 6113]. Adopts Senate provision to
borrowers. [Secs. 6101-6104; 6109]
allow energy audits. [Sec. 6104]. Makes
technical changes for certain financing.
The REA, as amended, authorizes USDA
Reauthorizes through FY2012. [Sec
Similar to the House bill, but limits
Adopts Senate provision. [Sec. 6106]
to issue bonds for rural electrical
6030]
guarantees to no more than $1 billion and
generation or telephone purposes. [7
establishes technical provisions for bond
U.S.C. 940c-1(f)]
guarantees. [Sec. 6106]
The REA, as amended, authorizes USDA
No comparable provision.
Defines “qualified energy source” and
Adopts Senate provision with
to make loans for electrical generation in
permits loans for electrical generation
modifications. Defines “renewable
rural areas. [7 U.S.C. 940f]
from renewable sources sold to non-rural
energy source.” [Sec. 6108]
residents at sets loan rates. [Sec. 6108]
The REA, as amended, authorizes USDA
No comparable provision.
Defines “substantially underserved trust
Adopts Senate provision with changes.
to make exceptions for electrification
areas” and to authorize USDA to make
[Sec. 6105]
borrowers to relieve them of regulatory
loan rates as low as 2% to qualified
requirements. [7 U.S.C. 936e]
utilities serving these areas. [Sec. 6112]
Title III of the REA establishes agency
No comparable provision
Requires the Rural Utility Service (RUS)
Adopts Senate provision regarding
funding procedures for direct loans and
follow new procedures in dealing with
bonding requirements and strikes the
loan guarantee. [7 U.S.C. 940-c 1]
borrowers. Allows USDA to adjust
other provisions. [Sec. 6109]
population limitations related to digital

---

CRS-136
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
mobile wireless service; requires USDA
to review bonding requirements for all
programs administered by RUS. [Sec
6109]
The 1990 farm bill, as amended,
No comparable provision.
Reauthorizes through FY2012.
Deletes Senate provision.
authorizes a rural electronic commerce
[Sec. 6301]
extension program to provide assistance
to rural businesses. [7 U.S.C. 59239e]
The Housing Act of 1949, as amended,
No comparable provision.
Amends program to include aquacultural
Adopts Senate provision.
authorizes a loan and grant program to
workers. [Sec. 6420]
[Sec. 6205]
provide housing construction and
assistance to farm labor. [42 U.S.C.
1484(f)(3)]
TITLE VII: AGRICULTURAL RESEARCH
Structure and Funding of Research, Education, and Extension
Existing policy functionally categorized
Formally categorizes each existing
Formally categorizes each existing
Defines the terms capacity, infrastructure,
Cooperative State Research, Education,
CSREES program as a “capacity
CSREES program as an “infrastructure
and competitive programs [Sec. 7511];
and Extension Service (CSREES)
program” or “competitive program,” and
program” (i.e., capacity program) or
critical base funding; Hispanic-serving
programs for state-level research,
designates the current level of funding
“competitive program,” as in the House
institutions; non-land grant colleges of
education, or extension activities as
for each category as “critical base
provision. [Sec. 7401]
agriculture [Sec. 7101]; and 1862, 1890,
“formula funded” or “competitive.”
funding.” [Sec. 7101]
and 1994 institutions for the purposes of
restructuring the Research, Extension,
and Economics mission area as outlined
in this act. [Sec. 7501]
The 1994 USDA reorganization act
Establishes a National Agricultural
Directs the Undersecretary to coordinate
Reflects the House provision but changes
merged the Extension Service with the
Research Program Office (NARPO)
the programs under the authority of the
the name to the Research, Extension, and
Cooperative State Research Service to
under the Under Secretary, with six sub-
ARS and CSREES national program
Education Office (REEO). Establishes a
establish CSREES. The Agricultural
offices organized by research focus. The
leaders, as well as the Director of the
National Institute of Food and
Research Service (ARS) was established
provision integrates the administrative
National Institute of Food and
Agriculture as of October 1, 2009. The
in its current form in 1953. Both
functions of ARS’s and CSREES’s
Agriculture. [Sec. 7402]
new Institute comprises all the programs
agencies are under the jurisdiction of the
respective National Program Leaders, but
of the former CSREES. [Sec. 7511]
Undersecretary for Research, Extension,
retains the separate agencies. [Sec. 7104]
and Economics. [7 U.S.C. 6971]

---

CRS-137
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The National Research Initiative (NRI)
Merges the existing NRI and IFAFS
CSREES is terminated as an agency; all
Amends the statute authorizing the NRI
grant program is an expansion of a 1990
grant programs and groups them with all
of its competitive and infrastructure
to create a new Agriculture and Food
farm bill program initially authorized in
other competitive grant programs
programs are to be administered under
Research Initiative to make competitive
1965, funded by annual appropriations 7
currently administered by CSREES to
the National Institute of Food and
grants for fundamental and applied
U.S.C. 450i). The Initiative for Future
become the National Institute of Food
Agriculture. [Sec. 7401]
research, and for purchasing research
Agriculture and Food Systems (IFAFS) is
and Agriculture (NIFA). [Sec. 7105]
equipment. Repeals 7 U.S.C. 7621
a mandatory-funded grant program,
(IFAFS) Authorizes $700 million
which was first authorized in the
annually from FY2008 through FY2012.
Agricultural Research, Extension, and
[Sec. 7406]
Education Reform Act of 1998
(AREERA, P.L. 105-185), reauthorized
in the 2002 farm bill. [7 U.S.C. 7621]
Matching funds are not required for NRI
Creates two categories of research grants;
No comparable provision.
Requires 50% matching funds for
and IFAFS grants; they may be required
fundamental research (to be called NRI
equipment grants and 100% matching
for certain applied research grants.
grants); and applied research (to be called
funds for applied research grants on
[IFAFS 7 U.S.C. 7621; NRI 7 U.S.C.
IFAFS grants). Matching funds are
topics that are commodity-specific and
450(b)]
required for IFAFS grants, not for NRI
not of national scope. [Sec. 7406]
grants. Authorizes $500 million in
annual appropriations, and transfers
mandatory IFAFS funds to support the
merged NRI/IFAFS program. [Sec. 7106]
Most research and extension programs
Requires the President to submit an
Directs the Under Secretary for Research,
Requires the President to submit an
appear as individual line items in the
annual budget making a single line item
Education, and Economics to submit a
annual budget making a single line item
President’s annual budget request.
request for capacity programs and a
“roadmap” that, among other things,
request for all programs under the
single line item request for competitive
describes recommended funding for
Research, Extension, and Economics
programs. [Sec. 7102]
competitive programs and infrastructure
mission area. Retains Senate language
programs as unified categories, with
regarding a “roadmap.” Recommends
some flexibility in implementation. [Sec.
that budget emphasis within the request
7402]
for capacity/infrastructure base funding
be on certain institutions, and within
competitive base funding, on emerging
problems. [Sec. 7504 and 7506]
Sec. 1403 of the National Agricultural
Adds integrating and organizing all
No comparable provision.
Deletes House provision.
Research, Extension, and Teaching
USDA research, extension, and education
Policy Act of 1977 (NARETPA, Title
programs; minimizing duplication; and
XIV of P.L. 97-98) sets out the purposes
maximizing cooperation to the purposes
of agricultural research and extension.
of the Department’s research mission.
[7 U.S.C. 3101]
[Sec. 7103]

---

CRS-138
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Prior law limited eligibility for formula
Expands eligibility for these programs to
Requires the “roadmap” to include
Adopts Senate provision. [Sec. 7504]
funded and other non-competitive
public non-land grant institutions
consideration of the needs of ASCARR
research, extension, and education
offering 4-year degrees in agriculture
institutions in addition to those of the
programs to 1862 and 1890 institutions,
(American Association of State Colleges
1862, 1890, 1994, and Hispanic-serving
1994 institutions (tribally controlled
of Agriculture and Renewable Resources,
institutions. [Sec. 7402]
colleges), and Hispanic-serving
or ASCARR institutions). [Sec. 7102]
institutions. [7 U.S.C. 361a, 343 ]
Prior law authorized capacity-building
Authorizes the appropriation of such
No comparable provision.
Authorizes capacity-building grants to
grant programs for 1890 and 1994
sums as necessary for a new capacity-
ASCARR institutions [Sec. 7138]; and
institutions, and Hispanic-serving
building grant program for ASCARR
changes the term from ASCARR
institutions. [7 U.S.C. 3152]
institutions. [Sec. 7107]
institutions to non-land grant college of
agriculture (NLGCA) institutions. [Sec.
7101]
Sec. 1417 of NARETPA makes land
Expands eligibility for grants/fellowships
Similar to the House bill. [Sec. 7007]
Adopts House provision. [Sec. 7109]
grant and non-land grant, high minority
for food and agricultural sciences
enrollment, and secondary and post-
education to include Agriculture in the
secondary institutions eligible for higher
K-12 Classroom programs, nonprofit
education grants. [7 U.S.C. 3152]
organizations, and other institutions of
higher education. [Sec. 7206]
The Hatch Act and Smith-Lever Acts set
Sets 25% as the minimum amount of
No comparable provision.
Deletes House provision.
the minimum amount of federal formula
federal formula funds that must be
funds spent on multi-state research and
expended on multistate research and
extension projects at either 25% or twice
extension projects. [Sec. 7603]
the percentage of state matching funds,
whichever is less. [7 U.S.C. 361a, 343 ]
Annual work plans are required from
Requires USDA to prepare a report for
Similar to the House bill. [Sec. 7503]
Requires a review of annual plans of
states to receive federal funds under
Congress on how to streamline the
work, but does not require a report on
NARETPA, the Hatch Act of 1887 (for
submission, reporting requirements, and
how to streamline the plan-of-work
research), and the Smith-Lever Act (for
implementation of plan-of-work
process. [Sec. 7505]
extension). [7 U.S.C. 3101, 361a, 343 ]
requirements. [Sec. 7602]
The 1998 reseach act (AREERA)
Provides for the continuation, under
No comparable provision.
Deletes House provision.
requires CSREES to conduct merit
NIFA, of the mandatory merit and peer
reviews of non-competitive research and
review processes for non-competitive and
extension grants, and peer reviews of
competitive grants. [Sec. 7601]
grants. [7 U.S.C. 7613]

---

CRS-139
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Sec. 1462(a) of NARETPA limits the
Amends Sec. 1462(a) to apply the 19%
Raises the limitation on reimbursement
Raises the limitation on reimbursement
amount of indirect costs that USDA
limitation on indirect cost reimbursement
of indirect costs from 19% to 30% for
of indirect costs from 19% to 22%.
reimburses to institutions that are
to any grant the institution receives, not
competitively awarded research,
[Sec. 7132]
awarded research, extension, and
just competitively awarded grants.
extension, and teaching grants.
teaching grants to 19%. [7 U.S.C. 3310]
[Sec. 7225]
[Sec. 7027]
Sec. 1408(g)(1) of NARETPA authorizes
Increases authorized appropriations for
Similar to the House bill. [Sec. 7002]
Increases the maximum annual
the National Agricultural Research,
the Advisory Board from $350,000 to
appropriations for the Advisory Board to
Extension, Education, and Economics
$500,000 annually. [Sec. 7201]
$500,000. Reduces the number of Board
Advisory Board. [7 U.S.C. 3123]
members from 31 to 24. Adds represen-
tation from crop, livestock, aquaculture
producer organizations. [Sec. 7102]
Subtitle K of NARETPA authorizes
No comparable provision.
Authorizes $19 million annually through
Adopts Senate provision. [Sec 7529]
miscellaneous programs. [7 U.S.C. 3311]
FY2012 for grants to the Consortium for
Agricultural and Rural Transportation
Research and Education. [Sec. 7051]
Sec. 103(a) of AREERA authorizes peer
No provision.
No provision.
Amends AREERA to prohibit
and merit review of research and
consideration of the availability of
extension grant applications. [7
matching funds in reviewing grant
U.S.C.7613(a)]
proposals. [Sec. 7301]
Provisions Affecting Certain Research Institutions
Sec. 1417 of NARETPA authorizes
Specifies that the University of the
Similar to the House bill. [Sec. 7004]
Makes UDC eligible to compete for food
grants/fellowships to land grant colleges
District of Columbia (UDC) be eligible to
and agricultural sciences education
and universities for food and agricultural
receive education grants and fellowships.
grants. [Sec. 7106]
sciences education. [7 U.S.C. 3152]
[Sec. 7204]
Sec. 1447 of NARETPA authorizes
Extends eligibility to UDC for grants to
Similar to the House bill. [Sec. 7020]
Authorizes $750,000 in annual
grants to upgrade agriculture and food
upgrade facilities, and authorizes
appropriations to upgrade agriculture and
science facilities at the 1890 institutions.
appropriations of $750,000 annually
food science facilities at UDC.
[7 U.S.C. 3222b]
through FY2012. [Sec. 7212]
[Sec. 7124]
The District of Columbia Public Post-
Makes UDC eligible to receive funds for
Similar to the House bill. [Sec. 7313]
Makes UDC eligible for EFNEP grants.
secondary Education Reorganization Act
the Expanded Food and Nutrition
[Sec. 7417]
(P.L. 93-471) designates UDC as a land
Education Program (EFNEP). [Sec.
grant institution, with certain exceptions.
7512]
[88 Stat. 1423]

---

CRS-140
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The Hatch Act of 1887 authorizes federal
Exempts UDC from the matching funds
Requires 50% matching funds from the
Adopts Senate provision. [Sec. 7404]
funding for agricultural research in the
requirement for Hatch Act funds.
District of Columbia in order for UDC to
states/U.S. territories. [7 U.S.C. 361a]
[Sec. 7513]
be eligible for Hatch Act funds. [Sec.
7304]
The 2002 farm bill amended NARETPA
Increases the level of required federal
Identical to the House bill.
Adopts House and Senate provision.
Sec. 1444(a)(2) to require that (1) federal
support for (1) extension at the 1890
[Sec. 7017-7018]
[Sec. 7121-7122]
support for extension at the 1890
institutions to 20% of the amount
institutions be at least 15% of the amount
appropriated for 1862 extension
appropriated for extension at 1862
programs [Sec. 7215], and (2) research at
universities [7 U.S.C. 3221], and (2)
the 1890 schools to 30% of the amount
federal support for research at the 1890
appropriated for research at the 1862
institutions be at least 25% of the amount
schools [Sec. 7216]
appropriated for research at the 1862
universities. [7 U.S.C. 3222]
Sec. 1434(b) of NARETPA defines
No comparable provision.
Specifies that 1890 institutions are
Adopts Senate provision. [Sec. 7120]
which institutions are eligible for animal
eligible to receive funding for animal
health/disease funding. [7 U.S.C. 3196]
health and disease research. [Sec. 7016]
The 2002 farm bill amended NARETPA
Makes permanent the requirement that
Similar to the House bill. [Sec. 7022]
Extends 100% matching funds require-
Sec. 1449 to phase in increasing state
states provide a 100% match to federal
ment for research and extension at the
matching funds for federal formula funds
funds for research and extension at the
1890 colleges through FY2012 and
for research and extension at the 1890
1890 colleges. [Sec. 7220]
amends NARETPA to update permanent
institutions, reaching the 100% matching
law and clarify current requirement of
level in FY2007. [7 U.S.C. 3222d]
providing equal matching funds from
non-federal sources. [Sec. 7127]
Sec. 3 of the Smith-Lever Act (extension)
No comparable provision.
Makes 1890 institutions eligible for the
Adopts Senate provision. Also stipulates
authorizes federal funds for cooperative
Children, Youth, and Families Education
that funds for Smith-Lever 3(d) programs
state extension programs. [7 U.S.C. 343]
and Research Network funds
(of which CYFERNet is one) are
(CYFERNet). [Sec. 7303]
competitively awarded. [Sec. 7403]
The McIntire-Stennis Cooperative
No comparable provision.
Makes the 1890 institutions eligible for
Adopts Senate provision. [Sec. 7412]
Forestry Act (P.L. 87-788) authorizes
McIntire-Stennis forestry research funds.
certain forestry research programs. [16
[Sec. 7310]
U.S.C. 582]
Sec. 1447 of NARETPA authorizes
Authorizes $8 million annually for grants
No comparable provision.
Amends NARETPA to authorize
grants to upgrade facilities at 1890
to land grant institutions in insular areas
assistance to insular area land grant
institutions. [7 U.S.C. 3222]
to upgrade agriculture and food science
institutions, and authorizes $8 million in

---

CRS-141
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
facilities. [Sec. 7237]
annual appropriations through FY2012.
[Sec. 7125]
Funding for tropical and subtropical
No comparable provision.
Within miscellaneous programs, adds
Adds Tropical and Subtropical
research is provided under the Special
authority for a Tropical and Subtropical
Agricultural Research to the list of high-
Research grant program to the land grant
Agricultural Research competitive grant
priority research and extension initiatives
institutions in U.S. insular areas. [7
program limited to the insular area land
under Sec. 1672 of the 1990 farm bill.
U.S.C. 450i]
grant institutions and divided equally
Extends authorization of Sec. 1672
between the Caribbean and Pacific
through FY2012. [Sec. 7204]
basins. Authorizes appropriations of
such sums as necessary. [Sec. 7038]
Subtitle K of NARETPA authorizes
No comparable provision
Establishes a grant program for research,
Adds Agricultural Development in the
miscellaneous programs. [7 U.S.C. 3311]
extension, and education programs at
American-Pacific Region to the list of
land grant institutions in the American
high-priority research and extension
Pacific region (AK, HI). [Sec. 7041]
initiatives. [Sec. 7204]
Sec. 1425(c)(2)(B) of NARETPA sets a
Authorizes annual appropriations of $90
Establishes UDC’s eligibility to receive
UDC is eligible to receive EFNEP funds
minimum distribution level and a formula
million; sets a minimum $100,000 annual
EFNEP funds. [Sec. 7313] The bill does
[Sec. 7417]. Amends NARETPA to
for distribution of any annual
distribution in EFNEP funds to each land
not contain other comparable provisions
increase the authorization of
appropriation for the Expanded Food and
grant institution; sets minimum funding
in the House bill.
appropriations to $90 million annually.
Nutrition Education Program (EFNEP) in
percentages for the 1890 institutions
Authorizes each institution to receive
excess of the previous year’s level. [7
through FY2013; establishes a formula to
$100,000as a base amount. [Sec. 7116]
U.S.C. 3175]
distribute funds to states after FY2013;
and establishes UDC’s eligibility to
receive EFNEP funds. [Sec. 7604]
Sec. 1417(b)(4) of NARETPA authorizes
Adds extension capacity-building as one
Similar to the House bill. [Sec. 7005]
Adopts House provision. [Sec. 7107]
capacity-building grants for research and
of the purposes for which grants and
teaching at high minority-enrollment
fellowships may be made to high
institutions. [7 U.S.C. 3152]
minority-enrollment institutions. [Sec.
7605]
Sec. 1455 of NARETPA authorizes
Authorizes the grant program through
Amends NARETPA to require that
Adopts Senate provision. [Sec. 7128]
grants to Hispanic-serving institutions to
FY2012 at $20 million annually. [Sec.
Hispanic-serving institutions compete for
strengthen educational capacity, and
7221]
strengthening grants; and increases the
authorized $20 million annually in
authority for appropriations to $40
appropriations through FY2007.
million annually through FY2012. [Sec.
[7 U.S.C. 3241]
7023]

---

CRS-142
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
Establishes an endowment fund for
Similar to the House bill. [Sec. 7024]
Amends NARETPA to establish an
Hispanic-serving institutions for basic
endowment fund, institutional capacity-
institutional support. Authorizes
building program, and a competitive
appropriations through FY2012 for grant
grant program to benefit Hispanic-
programs and for collaborative extension
serving agricultural colleges and
projects at 1862 institutions. [Sec. 7222]
universities; authorizes necessary funds
to be appropriated through FY2012.
[Sec. 7129]
The definition of “Hispanic-serving
Changes the definition of a Hispanic-
Similar to the House bill. [Sec. 7001]
Adopts House and Senate provision.
institution” in NARETPA is based on a
serving institution in NARETPA from
[Sec. 7101]
formula found in Sec. 316(b)(1) of the
one based on a formula to one based on
Higher Education Act of 1965. [20
the total enrollment of students being at
U.S.C. 1059]
least 25% Hispanic, as it is in the Higher
Education Act of 1965. [Sec. 7234]
Sec. 1458 of NARETPA authorizes
Extends eligibility for participation in
Similar to the House bill. [Sec. 7025]
Adopts House and Senate provision and
USDA agencies and land grant
international research, extension, and
adds anti-hunger, nutrition, and food
institutions to participate in international
teaching programs to Hispanic-serving
availability to the purposes of
research, extension, and teaching
institutions. Gives priority to institutions
international programs. [Sec. 7130]
programs. [7 U.S.C. 3291]
with existing cooperative agreements
with federal or state agencies. [Sec.
7223]
Organic Agricultural Research
Sec. 1672B of the 1990 farm act, as
Adds emphasis on the environmental
Provides $16 million annually in
Reflects the House bill language
amended, provides $3 million annually in
impact of organic farming and on new
mandatory funds through FY2012 to
concerning new areas of program
mandatory funds to support an organic
plant varieties suited to organic farming.
support the organic research and
emphasis. Provides a total of $78 million
agriculture research and extension
Authorizes annual appropriations through
extension initiative. [Sec. 7104]
in mandatory funds in Fiscal Years 2009-
initiative. [7 U.S.C. 5925]
FY2012 of $25 million; and provides $25
2012. [Sec. 7206]
million annually in mandatory funds
through FY2012. [Sec. 7310]
No comparable provision.
Sense of Congress that in -house funding
Similar to the House bill. [Sec. 7505]
Deletes House and Senate provisions.
for ARS 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
No comparable provision.
Authorizes annual appropriations of $30
Provides $18 million in mandatory funds
established the Beginning Farmer and
million through FY2012; permits grants
for the program in FY2009, and $19

---

CRS-143
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Rancher Development program.
for farmers/ranchers who convert to
million in mandatory funds in FY2010-
[7 U.S.C. 3319f]
certified organic production. [Sec. 7309]
2012. Authorizes $30 million in annual
appropriations (FY2008-12). [Sec. 7410]
Specialty Crops Research
The Specialty Crop Competitiveness Act
Expand information that the specialty
No comparable provision.
Adopts House provision. [Sec. 7103]
of 2004 (P.L. 108-465) established a
crop committee provides the Advisory
specialty crop committee to inform the
Board to include a comprehensive
Advisory Board on research needs.
analysis of the specialty crop sector.
[7 U.S.C. 3123a(c)]
[Sec. 7204]
Sec. 1672 of the 1990 farm act authorizes
Adds new specialty crop research
Similar to the House bill, but authorizes
Provides $230 million in mandatory
research and extension grants on
initiative to the 1998 research act
$16 million annually in mandatory funds
funds over 5 years for a specialty crop
specialty crops as a high-priority research
(AREERA). Authorizes annual
through FY2012. [Sec. 7211]
research and extension initiative;
area. [7 U.S.C. 5925]
appropriations of $100 million through
provides $25 million for grants to
FY2012; provides $215 million annually
research fresh produce food safety; and
in mandatory funds. [Sec. 7411]
authorizes an additional $100 million in
appropriated funds annually. [Sec. 7311]
Food safety research is part of USDA’s
Authorizes USDA to make competitive
No comparable provision.
Includes a food safety research emphasis
research, extension, and education
grants to universities/others to design and
in Sec. 7311, above.
mission area, and is included in both
implement programs to improve the
intra- and extramural programs.
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
Requires the Food and Agricultural
Amends NARETPA to specify four
Adopts Senate provision. [Sec. 7111]
the Secretary to enter into a wide variety
Policy Research Institute (a university-
university-based policy research centers
of grants and other collaborative
based economic research institute, in part
as eligible to receive grants under
agreements with private and public
supported by federal funds) to establish a
existing authority. Adds specialty crops
educational institutions, corporations, and
corollary institute specializing in
policy issues as a priority focus for these
individuals to conduct independent
specialty crop policy research (drawing
centers’ activities. [Sec. 7009]
research and public policy analysis on
on university expertise in states with
food and agriculture. [7 U.S.C. 3155]
specialty crop production). [Sec. 7235]
Bioenergy Research
No comparable provision.
Establishes a renewable energy
No comparable provision.
Amends NARETPA to authorize the
committee to report to the Advisory
establishment of a permanent renewable

---

CRS-144
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Board concerning research needs and
energy subcommittee to the Advisory
budget recommendations. [Sec. 7203]
Board. [Sec. 7104]
Sec. 404 of the 1998 research act
Extends this authority through 2012.
Contains an identical provision. [Sec.
Adopts House and Senate provision.
(AREERA) authorizes public-private
[Sec. 7403]
7204]
[Sec. 7304
cooperative agreements to conduct pilot
projects to develop biobased products
with commercial potential, and
authorizes the appropriation of such sums
as necessary. [7 U.S.C. 7624]
Section 1419 of NARETPA authorizes
Establishes a bioenergy and biobased
No comparable provision.
Repeals the authority under NARETPA
grants for research on production and
products research initiative, coordinated
[Sec. 7110] and amends the 1998
marketing of alcohols and industrial
by the National Agricultural Research
research act (AREERA) to authorize a
hydrocarbons from agricultural
Program Office, focused on the
bioenergy and biobased products
commodities and forest products. [7
conversion of biomass to renewable
research initiative as in the House
U.S.C. 3154]
fuels. Authorizes $50 million annually in
provision. Incorporates several
appropriations through FY2012. [Sec.
additional provisions from House bill and
7410]
Senate amendment energy titles
authorizing research on: 1) on-farm
renewable energy [H. Sec. 9010 and S.
Sec. 9011]; 2) using sweet sorghum and
switchgrass to supplement corn as an
ethanol feedstock [H. Sec. 9020]; 3)
regional biomass crop experiments [S.
Sec. 9010]; 4) renewable energy at a
laboratory in Colorado [S. Sec. 9022];
and 5) farm energy demonstration
projects [S. Sec. 9025]. [Sec. 7207]
No comparable provision.
Establishes a New Era Rural Technology
Similar to the House bill. [Sec. 7043]
Adopts House provision. [Sec. 7137]
Program 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]

---

CRS-145
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Other Research Provisions Related to Bioenergy Programs — see section on Energy Programs (below)
Other Research Provisions
No comparable provision.
Authorizes USDA to establish animal
Requires USDA to issue a permit to the
Adopts Senate provision, but replaces the
disease laboratories, conduct research on
Department of Homeland Security (DHS)
tern National Bio- and Agro-defense Lab
diseases that constitute a threat to the
for work on live Foot and Mouth Disease
with more general language. [Sec. 7524]
livestock industry, and gives USDA
virus at the National Bio- and Agro-
discretion over the importation and
defense Lab; clarifies only the Secretary
movement of live viruses. [Sec. 7108]
of Agriculture has the authority to grant
and revoke such permits. [Sec. 11016]
Sec. 1433(a) of NARETPA authorizes
Requires the Secretary to encourage
No comparable provision.
Adopts House provision. [Sec. 7118]
animal health and disease research. [7
cooperation among institutions eligible to
U.S.C. 3195(a)]
receive these funds. [Sec. 7213]
The ARS National Animal Disease
No comparable provision.
Authorizes $16 million annually through
Deletes Senate provision.
Center in Ames, Iowa, is currently the
FY2012 to construct a higher-level bio-
highest bio-security lab for animal
secure ARS animal health and disease
disease research.
facility in Bozeman, MT. [Sec. 7508]
Sec. 1415A of NARETPA authorizes a
No comparable provision.
Amends program to require USDA to
Adopts Senate provision and clarifies that
program to defray the school loans of
favor large and mixed animal practitioner
large and mixed animal practitioner
veterinary medical school graduates who
shortages in rural areas in initial phases
shortages have priority. Requires USDA
agree to serve for limited time periods in
of program implementation. [Sec. 7003]
to return to the Food Safety and
under-served areas. [7 U.S.C. 3151]
Inspection Service fund that had been
transferred to CSREES. [Sec. 7105]
Sec. 1672(e) of the 1990 farm bill, as
Adds nine new subjects to the list of high
Adds 14 subjects to the list of high
Adopts House and Senate lists of priority
amended, authorizes USDA to make
priority research and extension areas.
priority research and extension areas.
areas to add 23 subjects. Eliminates
grants for research and extension projects
[Sec. 7305]
[Sec. 7102]
certain specified areas from the list
in a variety of high priority topic areas.
enacted in the 1990 farm bill; includes
[7 U.S.C. 5925]
some of these in the larger priority area
categories in the new law. [Sec. 7204]
Sec. 410 of the 1998 research act
Amends the 1998 act to encourage
Reauthorizes appropriations through
Adopts House provision. [Sec. 7309]
(AREERA) provides a one-time transfer
flexibility in making grants to youth
FY2012. [Sec. 7209]
of $8 million in mandatory funds to make
organizations; allows the organizations to
grants to four national youth groups to
redistribute grant funds among
support pilot projects in rural areas; also
themselves; authorizes the appropriation
provides authority for appropriations
of such sums as necessary through

---

CRS-146
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
through FY2007. [7 U.S.C. 7630]
FY2012. [Sec. 7408]
A number of international agricultural
Authorizes appropriations to establish a
Similar to the House bill. [Sec. 7042]
Adopts Senate provision, which amends
research exchange opportunities currently
Borlaug International Agricultural
NARETPA to authorize the program and
are available under several different
Science and Technology Fellowship
annual appropriations. [Sec. 7139]
statutes.
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
Also authorizes construction of a Chinese
Adopts House provision. [Sec. 7415]
establishment of the National Arboretum.
garden at the National Arboretum, using
garden at the arboretum, but forbids use
[20 U.S.C. 191]
federal appropriations. [Sec. 7509]
of appropriated funds. [Sec. 7312]
Subtitle K of NARETPA authorizes
No comparable provision.
Authorizes appropriations for grants to
Adopts Senate provision. [Sec. 7523]
miscellaneous programs. [7 U.S.C. 3311]
nonprofits to distribute donated vegetable
seeds to community food projects in low-
income areas. [Sec. 7046]

No comparable provision.
Authorizes appropriations for grants to
Included in Sec. 7204 (high priority
support farm safety education/outreach.
research and extension areas).
[Sec. 7047]
No comparable provision.
Authorizes appropriations for grants to
Included in Sec. 7204 (high priority
increase participation of women/under-
research and extension areas).
represented minorities from rural areas in
science, technology, engineering, and
math education/careers. [Sec. 7408]
No comparable provision.
Establishes a National Farm Management
Authorizes competitive research and
Center to create a public benchmarking
extension grants to improve farm
database and to improve farm financial
management skills and create a financial
management training. [Sec. 7037]
management database. [Sec. 7208]
No comparable provision.
Authorizes appropriations for a research
Adopts Senate provision. [Sec. 7525]
program to develop pharmaceuticals and
agrichemicals from plant, marine, and
microbial sources. [Sec. 7049]
No comparable provision.
Authorizes a $1 million annual
Adds the purposes of the Senate
appropriation to support nonprofit
provision to the authorization for

---

CRS-147
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
research on international anti-hunger and
international agricultural research,
nutrition activities. [Sec. 7050]
extension, and education. [Sec. 7130]
No comparable provision.
Authorizes appropriations for
Adds food systems veterinary medicine
competitive grants to establish regional
to the list of high priority research and
centers of excellence in food systems
extension areas. [Sec. 7204]
veterinary medicine. [Sec. 7052]
No comparable provision.
Authorizes appropriations for land grant
Adds regional centers of excellence to
institutions to establish regional centers
the list of high priority research and
of excellence for agricultural commo-
extension areas. [Sec. 7204]
dities (incl. poultry sustainability);
requires matching funds. [Sec. 7039]
No comparable provision.
Establishes a farm and ranch stress
Adopts Senate provision. [Sec. 7522]
assistance network to provide behavioral
programs to U.S. producers. [Sec. 7044]
No comparable provision.
Establishes a grant program focusing on
Adopts Senate provision with additional
critical rural and agricultural
language to give priority to collaborative
transportation and logistics issues facing
efforts. [Sec. 7529]
producers and rural businesses. [Sec.
7051]
No comparable provision.
Prohibits USDA from disposing of land
No comparable provision.
Adopts House provisions. [Sec. 7502 and
or facilities at the Grazinglands Research
7503]
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
No comparable provision
Deletes provision.
on biotech 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
No comparable provision.
Deletes provision.
update USDA’s Nutrient Composition
Handbook for Beef. [Sec. 7112]

---

CRS-148
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
Sense of Congress that there should be
No comparable provision.
Deletes provision.
greater support for USDA human
nutrition research. [Sec. 7113]
Sec. 1433 of NARETPA authorizes
Encourages setting priorities for animal
No comparable provision.
Contains the House provision.
animal health and disease research.
health/disease research through regular
[Sec. 7119]
[7 U.S.C. 3195]
regional/national meetings. [Sec. 7213]
Sec. 1424(b) of NARETPA authorizes a
Adds as a focus of human nutrition
No comparable provision.
Adopts House provision. [Sec. 7113]
human nutrition research initiative.
research examination of the efficacy of
[7 U.S.C. 3174]
current agriculture policies in promoting
the health and welfare of economically
disadvantaged populations. [Sec. 7236]
Sec. 1672(d) of the 1990 farm bill, as
Requires USDA to give funding priority
No comparable provision.
Adopts House provision. [Sec. 7203]
amended, encourages USDA to give
to collaborative research grants. [Sec.
funding priority to high-priority
7303]
collaborative research proposals. [7
U.S.C. 5925]
The 1990 farm bill authorizes research
Changes the focus of aflatoxin research
No comparable provision.
Adds the House bill language to the
and extension on aflatoxin.
and extension from controlling aflatoxin
authority for high priority research and
[7 U.S.C. 5925]
to improving and commercializing
extension projects on aflatoxin. [Sec.
control technologies. [Sec. 7304]
7204]
The 1990 farm bill, as amended,
Adds dairy cattle waste and regional
Establishes a consortium of northeast
Adds House bill language to section
authorizes a nutrient management
concerns to the purposes of the nutrient
colleges for research on dairy nutrient
reauthorizing the nutrient management
research and extension initiative. [7
management research and extension
management and energy production.
research and extension initiative.
U.S.C. 5925]
initiative. [Sec. 7307]
[Sec. 9023] Establishes a southwest
[Sec. 7205] Deletes Senate provisions.
regional dairy, environment, and private
land research program. [Sec. 11092]
Sec. 1417(i) of NARETPA authorizes a
No comparable provision.
Adds extension and research to the award
Adopts Senate provision. [Sec. 7108]
National Food and Agricultural Sciences
program and requires at least one cash
Teaching Awards. [7 U.S.C. 3152]
award be made per year. [Sec. 7006]
Sec. 604 of AREERA, the 1998 research
No comparable provision.
Authorizes annual appropriations of $2.5
Adopts Senate provision. [Sec. 7312]
act, authorizes the Food Animal Residue
million through FY2012. [Sec. 7213]
Avoidance Databank. [7 U.S.C. 7642]

---

CRS-149
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
USDA’s FY2000 appropriations act (P.L.
No comparable provision.
Permits the Alaskan consortia of
Adds Senate bill language to reauthori-
106-7) authorizes grants for education at
institutions to designate fiscal agents for
zation of the education grants program at
Alaska Native- and Native Hawaiian-
each member institution, and to allocate
Alaska Native- and Native Hawaiian-
serving institutions. [7 U.S.C. 3242]
funds among members. [Sec. 7308]
serving institutions. [Sec. 7112]
In 1994, the Federal Crop Insurance
No comparable provision.
Gives USDA authority to exchange, sell,
Adopts Senate provision. [Sec. 7408]
Reform and Department of Agriculture
or otherwise dispose of ARS’ animals,
Reauthorization Act (P.L. 103-354)
animal products, plants, and plant
reorganized USDA, including the merger
products (except for seeds, germplasm).
and realignment of certain research
[Sec. 7314] Authorizes a pilot program
agencies. [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
No comparable provision.
Authorizes a competitive grant program
Adopts Senate provision. [Sec. 7521]
in livestock is authorized under general
for targeted research on antibiotic-
statutory authority for federal and state
resistant bacteria in livestock. [Sec. 7317]
agricultural research.
No comparable provision.
No comparable provision.
Directs USDA to prepare a report, in
Adopts Senate provision. [Sec. 7527]
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:
Deletes provision.
(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
Adopts Senate provision. [Sec. 7528]
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
No comparable provision.
Finance Center and National Information
Technology Center, but not related to
USDA’s research mission.[Sec. 7502]

---

CRS-150
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Extended Program Authorizations
Program under prior law in some cases.
Comparable provision in some cases.
Comparable provision in some cases.
—
Human nutrition intervention and
health promotion research program
[Sec. 7114]
—
Pilot research program to combine
medical/agricultural research [Sec.
7115]
— Continuing animal health and
disease research [Sec.7117]
—
Grants to upgrade agricultural and
food sciences facilities at 1890 land
grant colleges, incl. Tuskegee
University [Sec. 7123]
—
National research and training
virtual centers [Sec. 7126]
—
Competitive grants for international
agricultural science and education
[Sec. 7131]
— Equipment grants [Sec. 7133]
—
University research [Sec. 7134]
—
Extension Service [Sec. 7135]
—
Supplemental and alternative crops
[Sec. 7136]
—
Aquaculture assistance programs
[Sec. 7140]
— Rangeland grants [Sec. 7141]
—
Authorization for biosecurity
planning/response [Sec. 7142]
—
Resident instruction & distance
education grants program for
insular area institutions of higher
education [Sec. 7143]
—
National genetic resources program
[Sec. 7201]
—
National Agricultural Weather
Information System [Sec. 7202]
—
Assistive technology program for
farmers with disabilities [Sec.
7210]

---

CRS-151
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
—
National Rural Information Center
Clearinghouse [Sec. 7212]
—
Integrated research, education, and
extension competitive grants
program [Sec. 7306]
— Fusarium graminearum grants [Sec.
7307]
— Bovine Johne’s disease control
program [Sec. 7308]
—
Agricultural biotechnology
research and development for
developing countries [Sec. 7310]
— Office of pest management policy
[Sec. 7313]
—
Critical Agricultural Materials Act
[Sec. 7401]
—
Equity in Educational Land-Grant
Status Act of 1994 [Sec. 7402]
—
Agricultural Experiment Station
Research Facilities Act [Sec. 7405]
—
Agricultural Risk Protection Act of
2000 [Sec. 7407]
—
National Aquaculture Act of 1980
[Sec. 7414]
—
National Agricultural Research,
Extension, and Teaching Policy
Act Amendments of 1985 [Sec.
7416]
Repeal of Program Authorizations
Program under prior law in some cases.
Comparable provision in some cases.
Comparable provision in some cases.
—
Agricultural telecommuni-cations
program [Sec. 7209]
—
Research on honey bee diseases
[Sec. 7211]
— Partnerships for high value
agricultural product quality
research [Sec. 7302]
—
Precision agriculture [Sec. 7303]
—
Biobased products [Sec. 7304]
— Public education regarding the use

---

CRS-152
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
of biotechnology in producing food
for human consumption [Sec.
7411]
TITLE VIII: FORESTRY
Cooperative Forestry Programs
The Forest Land Enhancement Program
No reauthorization provision, allowing
No reauthorization provision, allowing
No reauthorization provision, allowing
provided financial aid for private forest
program to terminate.
program to terminate.
program to terminate.
practices (mandatory 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 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
Similar to the House bill, but with subtle
Adopts House provision with
working forests, (2) protecting forests
differences in priorities for protecting and
modifications. [Sec. 8001]
from natural threats and restoring forests,
restoring forests and for enhancing
and (3) enhancing public benefits from
benefits. [Sec. 8001]
private forests. [Sec. 8001]
No comparable CFAA provision.
No comparable provision.
Authorizes new cost-share grants for
Adopts Senate provision, creating the
local governments, tribes, and non-profits
Community Forest and Open Space
to acquire lands threatened by conversion
Conservation Program. [Sec. 8003]
to non-forest uses and provide public
benefits. [Sec. 8002]
No comparable CFAA provision.
Adds requirements for financial
Adds new requirements for financial
Adopts House provision with
assistance: state-wide forest assessment
assistance: statewide forest plan to
modifications. [Sec. 8002]
of conditions, trends, threats, and
identify critical areas; address regional
priorities and strategies to address threats
needs; and plan for managing and moni-
and describe resources. [Sec. 8002]
toring forests, achieving national
priorities. [Sec. 8004]

---

CRS-153
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Sec. 2109(d)(1) of the CFAA defines
Replaces “Trust Territory of the Pacific
Same as the House bill. [Sec. 8005]
Adopts House provision. [Sec. 8004]
“State” to include “Trust Territory of the
Islands” with “the Federated States of
Pacific Islands.” [16 U.S.C. 2109]
Micronesia, the Republic of the Marshall
Islands, the Republic of Palau.”
[Sec. 8003]
Subsections of the CFAA provide for a
Replaces USDA Committee with new
Exempts projects proposed by Indian
Adopts House provision with
USDA Coordinating Committee, to
Forest Resource Coordinating Com-
tribes from State Coordinating Com-
modifications. [Sec. 8005 & 8006]
coordinate among agencies, and for State
mittee, to coordinate among agencies,
mittee recommendations. [Sec. 8003]
Coordinating Committees, to coordinate
state agency representatives, and others.
with state foresters and other interested
[Sec. 8004] Modifies state committee
parties. [16 U.S.C. 2113]
duties to include recommendations
concerning the new state-wide forest
assessment and strategies. [Sec. 8005]
No comparable CFAA provision.
Requires a Secretary-determined portion
No comparable provision.
Adopts House provision. [Sec. 8007]
of funds to be allocated competitively
among states. [Sec. 8006]
No comparable CFAA provision.
Authorizes up to 5% of funding for cost-
No comparable provision.
Adopts House provision. [Sec. 8008]
shared competitively-allocated innova-
tive education, outreach, or technology
transfer projects. [Sec. 8006]
CFAA permanently authorized an Emer-
Authorizes a new Emergency Reforesta-
Establishes new emergency landscape
Adopts House provision with changes,
gency Reforestation program. [16 U.S.C.
tion program as part of the Emergency
restoration program to rehabilitate
creating the Emergency Forest
2106a] It has not been funded since
Conservation program (16 U.S.C. 2201-
croplands, grasslands, and private non-
Restoration Program. Provides
FY1993.
2204). [Sec. 8102]
industrial forests following natural
definitions of disaster; and authorizes
disasters. [Sec. 2398]
such sums as needed. [Sec. 8203]
Other Forestry Provisions
No comparable provision.
No comparable provision.
Includes definitions and makes tribes
Deletes provision.
eligible for Forest Legacy funding [16
U.S.C. 2103c] and forest management
assistance. [Sec. 8101-8112]
No comparable provision.
No comparable provision.
Authorizes Cultural and Heritage Co-
Adopts Senate provision.
operation, with purposes, definitions, and
[Sec. 8101-8107]
prohibition on disclosing information,
and provides for reburial of human
remains and cultural items; for temporary
area closures for traditional and cultural

---

CRS-154
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
purposes; and for free use of forest
products for traditional and cultural
purposes. [Sec. 8121-8127]
The Healthy Forests Restoration Act of
Extends program with $10 million from
Moves section to Title II (Conservation)
Adopts House provision with changes.
2003 (P.L. 108-148) authorized
the CCC annually through FY2012. [Sec.
and authorizes such sums as necessary.
Provides $9.75 million annually
easements through FY2008 to protect
8101]
Expands purposes to support endangered
(FY2009-2012). Provides permanent
private forests for endangered species
species, carbon storage, and biodiversity.
easements instead of 99-year easements.
and biodiversity. [16 U.S.C. 6578]
Replaces 99-year easement option with
Encourages tribal participation.
permanent easement, and encourages
[Sec. 8205]
tribes to participate. [Sec. 2331]
The Renewable Resources Extension Act
Extends the program through FY2012.
Extends the program through FY2012.
Extends the program through FY2012.
of 1978 (P.L. 95-306) authorized educa-
[Sec. 7507]
[Sec. 8201]
[Sec. 7413]
tional and technical aid via state exten-
sion agencies and eligible universities
and colleges. [16 U.S.C. 1671-1676]
The Global Climate Change Prevention
Extends the program through FY2012.
Extends the program through FY2012.
Extends the program through FY2012.
Act of 1990 within the 1990 farm bill
[Sec. 8103]
[Sec. 8202]
[Sec. 8202]
authorized the Forest Service Office of
International Forestry through FY2007.
[7 U.S.C. 6704(d)]
The 1990 farm bill, as amended,
Extends the program through FY2012.
No comparable provision.
Adopts House provision. [Sec. 8201]
authorized Rural Revitalization Through
[Sec. 8104]
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
No comparable provision.
Adopts House provision. [Sec. 8402]
Hispanic-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
Adopts Senate provision with changes.
1981 (P.L. 97-79; 16 U.S.C. 3371-78) to
Provides definition of plant; excludes
expand restrictions on and penalties for
recycled materials; clarifies impact on
importing wild plants/parts (e.g., lumber,
exports; and specifies need for
logs) removed in violation of U.S. or
regulations to further define plant.
foreign laws. [Sec. 8204]
[Sec. 8204]
No comparable provision.
No comparable provision.
Expands boundary of Green Mountain
Adopts Senate provisions.
National Forest (VT) to allow additional
[Sec. 8301 & 8303]

---

CRS-155
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
land acquisition. Authorizes exchange/
sale of specific forest lands to Bromley
Mountain Ski Resort, with directions on
proceeds use. [Sec. 8203 & 8205]
No comparable provision.
No comparable provision.
Authorizes certain land conveyance in
Adopts Senate provision, amended to
New Mexico. [Sec. 11075]
authorize a land conveyance in Virginia.
[Sec. 8302]
No comparable provision.
No comparable provision.
For non-salvage timber sale contracts
Adopts Senate provision with
awarded between 7/1/04 and 12/31/06,
modifications. [Sec. 8401]
the purchasers may request that the
contract be cancelled, the contract
payment rate be redetermined, or a sub-
stitute 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
Amends the Tariff Act of 1930 to require
act to ensure that imports of softwood
a softwood lumber importer declaration
lumber from Canada are consistent with
program to verify and reconcile data on
the U.S.-Canada Softwood Lumber
softwood lumber imports, to assure
Agreement. [Sec. 11903]
implementation of U.S.-Canada
Softwood Lumber Agreement.
[Sec. 3301]
TITLE IX: ENERGY
Farm and Community Energy Systems
Sec. 9005 of the 2002 farm bill
Extends program through FY2012.
Extends program through FY2012, but
Folds the Energy Audit and Renewable
authorizes appropriations for the Energy
Funding continues of such sums as
folds it into the new Rural Energy for
Energy Development Program into the
Audit and Renewable Energy
necessary for FY2008-12. [Sec. 9004]
America Program where mandatory
Rural Energy for America Program.
Development Program to provide grants
funding is available (see next section).
Amended section 9007.
to state agencies and organizations to
[Sec. 9007]
[Sec. 9001]
assist farmers and rural businesses to be
energy efficient. [7 U.S.C. 8105]
Sec. 9006 of the 2002 farm bill
Renames program “Rural Energy for
Renames program similar to House bill.
Establishes the Rural Energy for America
authorizes the Renewable Energy
America Program.” Adds production and
Implements energy audits for state
Program to promote energy efficiency
Systems and Energy Efficiency Program
sale of electricity by renewable energy
agencies, coops, educational institutions
and renewable energy development for
to assist farmers, ranchers, and rural
systems to loan purposes, and assistance
and utilities. Provides grants, loan
agricultural producers and rural small

---

CRS-156
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
businesses with renewable energy
for feasibility studies. Reserves 15% for
guarantees and incentive payments for
businesses. Provides grants up to 25% of
systems and improving energy efficiency.
small projects. Mandatory CCC funds:
energy efficiency and renewable energy,
cost for energy audits, renewable energy
$23 million annual mandatory CCC
$50 million (FY2008), $75 million
and manure-to-energy projects. Reserves
development, and financial assistance
funding for FY2003-07, but with annual
(FY2009), $100 million (FY2010), $125
20% for small projects. Establishes the
(20% of funds for grants less than
spending, shortfalls lapse.
million and $125 million (FY2011-
Rural Energy Star program. Mandatory
$20,000). Total assistance limited to
[7 U.S.C. 8106]
FY2012), respectively. [Sec. 9005]
funds of $230 million (FY2008),
75% of cost. Provides mandatory funds:
available until expended. [Sec. 9007]
$55 million (FY2009), $60 million
(FY2010), $70 million (FY2011), and
$70 million (FY2012). Authorizes $25
million in discretionary funds annually
(FY2009-12). Amended section 9007.
[Sec. 9001]
No comparable provision.
Establishes the Farm Energy Production
No comparable provision.
Deletes provision. The conferees state
Pilot Program, with matching grants (up
the goals of this provision are addressed
to 75% of cost) to demonstrate energy-
in Section 7207 of Title VII (Research).
neutral farms with existing technologies.
Authorizes appropriations of $5 million
(FY2008-12). [Sec. 9010]
No comparable provision.
Establishes Future Farmsteads Program
Similar to the House bill. [Sec. 9025]
Deletes provision. The conferees state
to equip and demonstrate five farms and
the goals of this provision are addressed
farm households in five regions with
in Section 7207 of Title VII (Research).
energy efficient/producing technologies.
Authorized appropriations of such sums
as necessary. [Sec. 9015]
No comparable provision.
Establishes Community Wood Energy
Provides matching grants for use of local,
Establishes the Community Wood
Program, with matching grants (up to
sustainable wood sources for a
Energy Program, providing grants of up
50%) for use of local, sustainable wood
community wood energy system based
to $50,000 for up to 50% of the cost for
sources for a community wood energy
on a Community Wood Energy Plan.
communities to plan and install wood
system. Authorizes appropriations of
Authorizes appropriations of $5 million
energy systems in public buildings.
such sums as necessary. [Sec. 9019]
annually (FY2008-12). [Sec. 9014]
Authorizes $5 million in discretionary
funds annually (FY2009-12). Amended
section 9013. [Sec. 9001]
No comparable provision.
No comparable provision.
Establishes New Century Farm Project to
Deletes provision. The conferees state
develop and operate sustainable and
the goals of this provision are addressed
integrated biomass — biofuel production
in Section 7207 of Title VII (Research).
systems. Authorizes one-time funding of
$15 million (FY2008-FY2012) until
spent. [Sec. 9011]

---

CRS-157
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
Establishes the Rural Energy Self-
Establishes the Rural Energy Systems
Establishes the Rural Energy Self-Suffi-
Sufficiency Initiative, providing grants to
Renewal program, with matching grants
ciency Initiative, providing cost- share
increase community energy self-
(up to 50% of project cost) to fund
(up to 50%) grants for rural communities
sufficiency. Provides discretionary
community energy renewal projects.
to assess energy systems and to make
appropriations of $5 million authorized
Authorizes annual appropriations of $5
improvements. Authorizes $5 million in
for FY2008 and such sums as necessary
million (FY2008-12). [Sec. 9015]
discretionary funds annually (FY2009-
for FY2009-12). [Sec. 9013]
12). Amended section 9009. [Sec. 9001]
No comparable provision.
No comparable provision.
Establishes program to provide grants to
Deletes provision. The conferees state
Northeast land-grant universities for
that the nutrient management research
research, extension, and demonstration
and extension initiative are addressed in
projects for dairy nutrient management
Section 7204 of Title VII (Research).
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
Deletes provision.
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
Deletes provision. The conferees state
program (five annual matching grants up
the goals of this provision are addressed
to 75% of cost) for rural communities
in section 7204 of Title VII (Research).
with other institutions to increase energy
self-sufficiency through integrated
renewable energy systems. Authorizes
$5 million (FY2008) and such sums as
necessary (FY2009-12). [Sec. 9011]
Biofuel Feedstocks
Sec. 9008 of the 2002 farm bill extended
Extends the Biomass Research &
Extends the Biomass Research &
USDA and DOE shall continue to
the Biomass Research and Development
Development Act of 2000 from 2007 to
Development Act of 2000 from 2007 to
coordinate biofuels and biobased
Act of 2000 (P.L. 106-224), providing
2012. Mandatory CCC funding of $35
2012, and incorporates it into the farm
products research and development
grants and financial assistance from the
million (FY2008), $60 million (FY2009),
bill. Mandatory CCC funding of $15
programs under the Biomass Research &
Department of Energy (DOE) and USDA
$75 million (FY2010), $100 million
million (FY2008), $25 million (FY2009),
Development Act of 2000 through the
to establish a technical advisory
(FY2011), $150 million (FY2012).
$35 million (FY2010). Authorizes
Biomass Research and Development
committee and a Biomass Research and
Authorizes appropriations of $200
appropriations of $85 million annually
Board. Provides competitive grants,

---

CRS-158
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Development Board. Mandatory funds
million annually (FY2006-15). [Sec.
(FY2008-12). [Sec. 9008]
contracts, and financial assistance for
of $5 million (FY2002); $14 million
9008]
research, development, and demon-
annually (FY2003-07). Authorized
stration of biofuels and biobased products
additional annual appropriations of $49
Provides mandatory funding: $20 million
million (FY2002-07). [7 U.S.C. 8101]
(FY2009), $28 million (FY2010), $30
million (FY1022), and $40 million
(FY2012). Authorizes $35 million in
discretionary funds (FY2009-12).
Amended section 9008. [Sec. 9001]
No comparable provision.
Establishes the Feedstock Flexibility
Similar to the House bill. [Sec. 1501]
Adopts the House provision with
Program, authorizing the use of CCC
modifications. Amended section 9010.
funds to purchase sugar to be resold as a
[Sec. 9001]
biomass feedstock to produce bioenergy.
[Sec. 9013]
No comparable provision.
Establishes the Renewable Woody
Similar to the House bill. Authorizes $5
Requires the Forest Service to conduct a
Biomass for Energy Program, providing
million annually (FY2008-12). [Sec.
competitive research and development
Forest Service grants to encourage the
9013]
program to encourage use of forest
use of woody renewable biomass for
biomass for energy. Adopts the House
energy. Mandatory funds of $15 million
provision with amendments. Authorizes
annually (FY2008-12). [Sec. 9019]
$15 million per year for FY2009-12.
Amended section 9012. [Sec. 9001]
No comparable provision.
Establishes the Biomass Energy Reserve
Establishes the Biomass Crop Transition
Establishes the Biomass Crop Assistance
(BER). Provides financial and technical
Program, providing technical/financial
Program (BCAP). Provides USDA
assistance to landowners and operators to
assistance to agricultural producers for
contracts with producers to promote the
grow dedicated energy crops as feedstock
production, collection, harvest, storage
production of bioenergy feedstock crops
for cellulosic ethanol and other energy
and transportation of biomass crops for
not primarily grown for food or animal
production. Incentives cover harvesting,
use in a biorefinery. Directs USDA to
feed. Also provides payments to eligible
storing, and transporting of biomass to
collect and disseminate information on
entities through contracts for collection,
bioenergy facilities. BER projects would
production potential, environmental
harvest, storage, and transportation of
be within a 50-mile radius of a bioenergy
impacts, and best practices. Authorizes
renewable biomass material for use in a
facility. Authorizes mandatory funding
mandatory funds: $130 million for
biomass conversion facility. Provides
of such sums as necessary. [Sec. 9018]
FY2008 and $10 million annually for
discretionary CCC funding of such sums
FY2009- 11, available until expended.
as necessary annually for FY2008-12.
[Sec. 9004]
Amended section 9011. [Sec. 9001]
No comparable provision.
No comparable provision.
Establishes Regional Biomass Crop
Establishes a program to award
Experiment Grants for regional biomass
competitive grants for projects with a
production experiments by land grant
focus on supporting on-farm biomass
institutions. Mandatory CCC funds: $10
crop research and the dissemination of

---

CRS-159
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
million (FY2008), $20 million (FY2009),
results to enhance the production of
$10 million (FY2010); also authorizes
biomass energy crops and the integration
appropriations of such sums as necessary
of such with the production of bioenergy.
(FY2008-12). [Sec. 9010]
Moves this provision to Title VII
(Research). [Sec. 7207]
Sec. 9002 of the 2002 farm bill requires
Extends the federal procurement
Extends the program and refines federal
Adopts Senate provision with changes.
federal agencies to purchase biobased
program; sets biobased component of
procurement rules for biobased products.
Extends the federal biobased procure-
products and authorizes a voluntary
product at 5% minimum; and revises the
Requires federal agencies to maximize
ment program. Eliminates the 5%
biobased labeling program. USDA sets
deadline for USDA to set labeling
procurement of biobased products and
minimum biobased content. Continues
procurement regulations. Provides $1
requirements. Authorizes appropriations
submit reports to Congress. Continues
voluntary labeling. Authorizes
million in mandatory CCC annual
of $1 million for procurement provisions
voluntary labeling. Establishes testing
mandatory funding of $1 million for
funding (FY2002-07) for testing
and $1 million for labeling provisions
centers and education grants. Authorizes
FY2008 and $2 million annually for
biobased products. [7 U.S.C. 8102]
(FY2008-13). [Sec. 9002]
$3 million in annual mandatory funds
FY2009-12. Authorizes discretionary
(FY2008-12). [Sec. 9002]
appropriations of $2 million annually for
FY2009-2012 for testing and labeling.
Amended section 9002. [Sec. 9001]
Sec. 9003 of the 2002 farm bill provides
Renames as “Biorefinery and
Renames as “Biorefinery and
Provides funds for repowering assistance
grants to help finance biorefineries and
Repowering Assistance.” Provides cost
Repowering Assistance.” Provides cost
to reduce or eliminate their use of fossil
biofuel plants for demonstration. No
sharing grants; adds loan guarantees for
sharing grants (up to 50%) and loan
fuels for biorefineries in existence at
mandatory funds were authorized; no
new and developing technologies for
guarantees (up to 80%) to assist new and
enactment. Provides mandatory CCC
discretionary funds were appropriated.
advanced cellulosic bioenergy production
developing technologies focusing on
funding of $35 million, available until
Implementing regulations have been
and biorefinery repowering. Mandatory
advanced cellulosic bioenergy production
expended. Provides discretionary
developed. [7 U.S.C. 8103]
CCC funds: $75 million (FY2008); $100
and biorefinery repowering. Authorizes
funding of $15 million annually for
million (FY2009); $125 million
mandatory CCC funds of $300 million
FY2009-12. Amended section 9004.
(FY2010); $200 million (FY2011); and
for FY2008 to be made available until
[Sec. 9001]
$300 million (FY2012). [Sec. 9003]
expended. [Sec. 9005]
No comparable provision.
No comparable provision.
Establishes E-85 fuel program, providing
Deletes provision.
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
Extends program through FY2012, and
Similar to the House bill. Provides grants
Continues sun grant program. Provides
Grant Research Initiative Act of 2003 to
adds new center in Hawaii. [Sec. 9008]
to other land grant institutions within
matching grants to sun grant centers to
establish bioenergy research programs
each region, in addition to designated
develop, distribute, and implement
through grants to land grant institutions
centers. Authorizes mandatory funds of
biobased energy technologies and to
and five regional centers. Authorizes
$5 million (FY2008) and $10 million
promote diversification and sustainability

---

CRS-160
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
appropriations: $25 million (2005), $50
(FY2009-10) until expended, and
of agricultural production, and economic
million (2006), and $75 million annually
discretionary annual appropriations of
diversification in rural areas through
(FY2007-10). [7 U.S.C. 8109]
$70 million (FY2008-15). [Sec. 9009]
biobased energy and product
technologies. Establishes a Sun Grant
Information Analysis Center. Requires
annual reports. Discretionary funds of
$75 million for FY2008-12 are
authorized. [Sec. 7526]
Sec. 7134 of the 2002 farm bill provides
No comparable provision.
The House bill amends Section 1417(j)
Adopts Senate provision with
research grants on production/marketing
of NARETPA by adding agriculture
amendment to repeal this section from
of alcohols and industrial hydrocarbons
programs for grades K-12 to the purposes
prior law. [Sec. 7110]
from agricultural and forest products.
of these grants. [Sec. 7008]
Authorized annual appropriations of $20
million (FY1991-2007). [7 U.S.C. 3154]
Sec. 9004 of the 2002 farm bill provides
Extends the Biodiesel Fuel Education
Similar to the House bill. [Sec 9003]
Adopts House and Senate provision
for the Biodiesel Fuel Education Program
Program. Provides annual mandatory
except provides mandatory CCC funding
with grants to educate fleet operators and
funding of $2 million (FY2008-12). [Sec
of $1 million annually (FY2008-12).
the public on biodiesel benefits. Annual
9017]
Amended section 9006. [Sec. 9001]
mandatory CCC funding of $1 million
(FY2003-07). [7 U.S.C. 8104]
Sec. 9009 of the 2002 farm bill provides
The House bill extends the section 221of
No comparable provision, but authorizes
Adopts House provision. [Sec. 7407]
for Cooperative Research and Extension
the Agricultural Risk Protection Act of
USDA to continue to provide for grants
projects, encouraging research on carbon
2000 (ARPA) through 2012. (Section
to the Consortium for Agricultural Soils
sequestration in soils and plants, and the
7506)
Mitigation of Greenhouse Gases to
role of agriculture in greenhouse gas
develop, analyze, and implement carbon
emissions. [7 U.S.C. 6711]
cycle and 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
Renews and extends the “Bioenergy
Similar to the House bill. Bases payments
Establishes the Bioenergy Program for
for the Bioenergy Program, continuing
Program for Advanced Biofuels” through
on: biofuel production; feedstock prices;
Advanced Biofuels. Provides payments
incentive payments to biofuel producers
FY2012. Excludes ethanol produced
and net non-renewable energy fuel
to producers to support and expand
based on year-to-year production
from corn starch; expands eligibility for
content. Benefits purchasers of
production of advanced biofuels.
increases. Annual mandatory CCC
production incentives for combined heat
feedstocks for cellulosic biofuels and
Provides mandatory funding of $55
funding of $150 million (FY2002-06),
and power production using biomass at
biodiesel; excludes those who claim a
million (FY2009), $55 million (FY2010),
but no funding authorized for FY2007.
biofuels plants. Provides mandatory
biofuel production tax credit or who
$85 million (FY2011), and $105 million
[7 U.S.C. 8108]
CCC funding of $225 million (FY2008),
produce more than 150 million gallons
(FY2012). Authorizes additional

---

CRS-161
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
$250 million (FY2009), $275 million
per year. One-time mandatory funding of
appropriations of $25 million annually
(FY2010), $300 million (FY2011), and
$245 million (FY2008-12), available
(FY2009-12)Amended section 9005.
$350 million (FY2012). [Sec. 9007]
until expended. [Sec. 9006]
[Sec. 9001]
No comparable provision.
Establishes grants for Biochar Research,
No comparable provision.
Deletes provision. Includes biochar
Development, and Demonstration.
research as a high-priority area in Title
Annual authorized appropriations of $3
VII (Research). [Sec. 7203].
million (FY2008-12). [Sec. 9012]
No comparable provision.
Sense of Congress on renewable energy
No comparable provision.
Deletes provision.
production, use, and benefits. [Sec. 9016]
No comparable provision.
No comparable provision.
Sense of Congress on ethanol blends, and
Deletes provision.
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,
Deletes provision. The managers
extension and education programs on
encourage USDA to continue to allow
biofuels and bioproducts. [Sec. 9004]
and support these activities.
No comparable provision.
Authorized appropriations for a pilot
No comparable provision.
Deletes this provision.
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
Requires joint USDA, DOE, EPA
submit reports: growth potential for
studies: (1) infrastructure needs
cellulosic material [Sec. 9024]; biofuels
associated with significant expansion in
infra-structure [Sec, 9018]; rural nitrogen
biofuels production and use [Sec. 9002];
fertilizers [Sec. 9019]; and life-cycle
and (2) rural nitrogen fertilizer study,
analysis of biofuels [Sec. 9020].
with appropriations authorized at $1
million (FY2009) [Sec. 9003]
No comparable provision.
No comparable provision.
Directs USDA and other agencies on
Deletes provision. The conferees state
Research and Development of Renewable
the goals of this provision are addressed
Energy, including farm to fuel research
in section 7207 of Title VII (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

---

CRS-162
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
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
Adopts Senate provision. [Sec. 11014]
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
Same as prior law.Keeps prior law
Keeps prior law definitions, but adds
Adopts Senate provision with changes.
for definitions, including biomass,
definitions, but adds definitions for
definitions for advanced biofuels,
Adds definitions for advanced biofuels to
biobased product, biomass, renewable
advanced biofuels, biofuel, biomass
biofuel, biomass conversion facility,
include home heating fuels and aviation
energy and small rural business
conversion facility, biorefinery,
biorefinery, feedstock, among others.
and jet fuels from cellulosic biomass.
[7 U.S.C. 8101]
feedstock, among others. Adds ocean and
Adds ocean and hydroelectric power to
Amended section 9001. [Sec. 9001]
hydroelectric to the renewable energy
the renewable energy definition. [Sec.
definition. [Sec. 9001]
9001]
No comparable provision.
Establishes the USDA Energy Council to
Similar to the House bill, in that it would
Deletes the House and Senate provision.
coordinate energy related activities
establish an entity at USDA to provide
The managers express their support of a
within USDA and between USDA and
oversight and coordination, liaise with
single entity at USDA to coordinate
other agencies. [Sec. 9017] Establishes
other federal departments, evaluate new
activities in the Senate bill.
an entity at USDA to provide oversight
biobased products, and maintain a
and coordination, liaison activities,
database of biobased research and best
biobased product evaluation, and
practices. [Sec. 9017]
database maintenance. [Sec. 9009]
No comparable provision.
No comparable provision.
No comparable provision.
Directs the Secretary of the Treasury, in
consultation with other agencies, to
request that the National Academy of
Sciences produce an analysis of current
scientific findings relating to the future
production of biofuels and its domestic
impacts. [Sec. 15322]
TITLE X: HORTICULTURE AND ORGANIC PRODUCTION
Marketing and Trade Promotion, Consumer Access
No comparable provision.
No comparable provision.
Sets definitions to apply throughout one
Adopts Senate provision with an
of the bill’s subtitles the terms “specialty
amendment to remove the definition of

---

CRS-163
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
crop”, “state”, and “state department of
the term “State.” [Sec. 10001]
agriculture.” [Sec. 1801]
No comparable provision.
Requires an independent evaluation of
No comparable provision.
Adopts House provision with changes to
the commodity purchasing processes and
require the Secretary to arrange to have
the importance of increasing purchases of
performed an independent evaluation of
specialty crops. [Sec. 10104]
the purchasing processes used by USDA
to implement the requirement that funds
available under Section 32 be principally
devoted to perishable agricultural
commodities. [Sec. 10101]
The Specialty Crops Competitiveness Act
Reauthorizes the block grant program
Contains an identical provision, except
Adopts House provision with changes to
of 2004 [P.L. 108-465, 7 U.S.C. 1621
through FY2012 and provides mandatory
that funding ends after FY2011.
specify that any funds made available for
note] established a program of block
funding starting at $60 million in
Specifies that turfgrass sod and herbal
a fiscal year under the program that are
grants to states to support projects in
FY2008, rising to $95 million in
crops also are specialty crops.
not expended by certain date, to be
marketing, research, pest management,
FY2012. Increases the number of U.S.
[Sec. 1841]
determined by USDA, will be reallocated
and food safety, among other purposes.
insular areas eligible to receive grants.
to other States; change the minimum
Authorizes $44.5 million annually
[Sec. 10102]
grant amount to $100,000 or one-third of
through FY2009.
1% of the overall funding allocated to the
program in a given fiscal year (whichever
is higher). Provides mandatory funding:
$10 million (FY2008); $49 million
(FY2009); and $55 million annually
(FY2010-2012). [Sec. 10109]
The Farmer-to-Consumer Direct
Expands the types of activities that are
Reauthorizes the Farmers’ Market
Adopts Senate provision with an
Marketing Act established a Farmers’
eligible for funding. Renames program
Promotion Program and provides
amendment to specify that 10% of the
Market Promotion Program promote
the Farmer Marketing Assistance
mandatory funds of $5 million annually
funds available to carry out the program
farmers’ markets, authorizing annual
Program. Provides annual mandatory
in FY2008-11, and $10 million in
be used to implement electronic benefit
appropriations for grants to local
funds of $5 million (FY2008-10) and $10
FY2012. [Sec. 1812]
transfer systems at farmers’ markets;
governments, and nonprofit
million (FY2011-12). [Sec. 10404]
and to specify mandatory funding:
organizations. [7 U.S.C. 3005]
$3 million (FY2008); $5 million annually
(FY2009-2010); $10 million annually
(FY2011-2012). [Sec. 10106]
No comparable provision.
Authorizes grants to a variety of public
Similar to the House bill, but with minor
Adopts House provision with changes to
and private entities to improve
technical differences.
allow national/state/regional organiza-
transporting specialty crops to markets.
[Sec. 1842]
tions of producers, shippers or carriers to
be eligible for grants. [Sec. 10403]

---

CRS-164
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
Requires the Government Accountability
Deletes Senate provision.
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
Deletes Senate provision.
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
Authorizes a grant program to establish a
Adopts Senate provision with changes to
Healthy Food Urban Enterprise Program
Healthy Food Enterprise Development
place language for the Healthy Urban
to support feasibility studies on
Center, providing information and
Food Enterprise Development Center
improving the access of underserved
technical assistance to entities to make
within the Community Food Projects
communities to affordable, locally
affordable, locally produced, nutritious
statute. Clarifies that subgrants may be
produced, nutritious food. Authorizes
food available in underserved
used to establish and facilitate enterprises
annual appropriations for this purpose.
communities. Provides $1 million in
that process, distribute, aggregate, store,
[Sec. 10405]
mandatory funds (FY2009); $2 million
and market healthy affordable foods.
annually (FY2010-12). [Sec. 1843]
Limits allocations for administrative
expenses. Provides $1 million in funding
annually (FY2009-2011) and authorizes
$2 million (FY2012). [Sec. 4402]
Specialty Crop Provisions Related to Nutrition Programs — see section on Nutrition Programs (below)
Organic Agriculture Production
The 2002 farm bill established a cost-
Provides a one-time transfer (FY2008) of
Similar to the House bill, and requires an
Adopts Senate provision but deletes the
share program to help producers and
$22 million in mandatory funds to
annual report to the House and Senate
cap on the federal cost share.
handlers of organic products obtain
continue the cost-share program, caps the
Agriculture Committees on cost-share
[Sec. 10301]
certification under the National Organic
federal share of certification cost at no
expenditures in each state. [Sec. 1823]
Program (NOP), and provided a one-time
more that 75%, and raises the maximum
transfer of $5 million in mandatory crop
amount a producer can receive from $500
insurance funds. [7 U.S.C. 1524]
to $750. [Sec. 10301]
The 2002 farm bill required USDA to
Provides $3 million in mandatory CCC
Similar to the House bill and provides a
Adopts Senate provision with changes to
keep segregated data on organic
funds to support data collection and
one-time transfer of $5 million for
clarify USDA’s data collection, analysis,
production and marketing. [7 U.S.C.
analysis on organic production,
segregated data collection and analysis.
and survey development requirements,
5925c]
marketing, pricing, and crop loss risk.
[Sec. 1821]
and to specify the contents of USDA’s

---

CRS-165
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
[Sec. 10302]
report to the House/Senate Agriculture
Committees. Provides $5 million in
mandatory funding, with an additional
authorization of appropriations of $25
million (FY2008-2012), further
specifying that $3.5 million in funding be
allocated to AMS to collect and distribute
comprehensive reporting of prices
relating to organically produced
agricultural products. [Sec. 10302]
No comparable provision.
Authorizes $50 million subject to
Provides for technical assistance and
Deletes House provision, but includes
appropriations over the life of the farm
cost-sharing under the Environmental
language addressing the goal of
bill to provide technical assistance and
Quality Incentives Program (EQIP) to
providing technical assistance to farmers
cost-sharing grants to producers seeking
producers seeking to convert to organic
transitioning to organic farming under
to convert from conventional to organic
production. [Sec. 2361] Authorizes
the EQIP program [Sec. 2501] of the
production. [Sec. 10303]
grants for this purpose under the
conservation title.
Beginning Farmer and Rancher
Development Program. [Sec. 7309]
Assessments are exempted under
No comparable provision.
Allows producers who have part of their
Deletes Senate provision.
marketing orders for conventionally-
farm certified organic under the NOP to
grown fruits and vegetables, for
receive the exemption. [Sec. 1822]
producers whose operations are 100%
organic. [7 U.S.C. 7401]
The Organic Foods Production Act of
No comparable provision.
Specifies increased authorized annual
Adopts Senate provision with changes to
1990 authorizes appropriations of such
funding levels for the NOP, starting at $5
provide such additional sums as are
sums as necessary for the National
million in FY2008 and rising to $11
necessary. [Sec. 10303]
Organic Program. [7 U.S.C. 6522]
million in FY2012. [Sec. 1824]
No comparable provision.
Provides grants using Section 32 funds (7
No comparable provision.
Deletes House provision.
U.S.C. 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
Similar to the House bill, with technical
Adopts Senate provision with changes to
state agriculture departments to conduct
differences. Provides mandatory funds
describe the application process; prohibit

---

CRS-166
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
early pest detection and surveillance
starting at $10 million (FY2008), rising
USDA from considering nonfederal
activities and create action plans, among
to $64 million (FY2012). [Sec. 12101(f)]
funds; direct USDA to consider risk
other things. Provides mandatory funds
factors when considering an application;
starting at $10 million (FY2008), rising
and express disapproval of a cost-sharing
to $70 million (FY2012). [Sec. 10201]
rule for animal and health emergency
programs. Specifies mandatory funds:
$12 million (FY2009); $45 million
(FY2010); $50 million (FY2011); and
$50 million (FY2012). [Sec. 10201]
No comparable provision.
Authorizes the appropriation of $15
No comparable provision.
Deletes House provision.
million for the 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
Similar to the House bill, with technical
Adopts Senate provision with an
funds through FY2012, in addition to $20
differences. [Sec. 1851]
amendment to add NLGCA institutions
million annually in mandatory funds, to
to the list of entities that USDA shall
create a National Clean Plant Network
consult with to carry out the program.
where the specialty crop industry can
Specifies mandatory funding: $5 million
obtain pest- and disease-free planting
annually (FY2009-2012). [Sec. 10202]
stock. [Sec. 10404]
The Plant Protection Act (PPA) [7 U.S.C.
No comparable provision.
Modifies penalties in the PPA as
Adopts Senate provision with changes to
7701 et seq.] authorizes USDA’s Animal
follows: $500,000 for each violation
strike the change to the statute of
and Plant Health Inspection Service
adjudicated in a single proceeding;
limitations, to expand the penalties to
(APHIS) to cooperate with states,
$1,000,000 for each violation adjudicated
cover any willful violation of the PPA,
localities and others to prevent the spread
in a single proceeding involving a
and to clarify subpoena authorities of
of and eradicate invasive pests and
genetically modified organism. Requires
USDA under the PPA. Modifies the
diseases.
an action, suit or proceeding regarding a
ability of the executive branch to delay
violation of the PPA to be considered no
the provision of compensation for
later than 5 years after the date the
economic losses. [Sec. 10203]
violation is initially discovered by
Identical amendments were made to the
USDA. [Sec. 11017]
Animal Health Protection Act in the
livestock title. [Sec. 11012]
The PPA [7 U.S.C. 7701 et seq.]
No comparable provision.
Requires USDA, no later than 18 months
Adopts Senate provision, with
authorizes USDA’s activities under the
after enactment, to take action on each
modification. [Sec. 10204]
Federal Coordinated Framework for the
issue identified in the document “Lessons
Regulation of Biotechnology. APHIS
Learned and Revisions under Consider-

---

CRS-167
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
regulated the importation, interstate
ation for APHIS’ Biotechnology Frame-
movement, and field testing of
work,” dated October 4, 2007; and as
genetically engineered organisms that
USDA considers appropriate, to
may pose a plant risk.
promulgate regulations to improve the
management and oversight of articles
regulated under the PPA, among other
specified action items. [Sec. 11077]
Food Safety Provisions
The Agricultural Adjustment Act governs
Authorizes the implementation of
No comparable provision.
Deletes House provision.
the terms and conditions of marketing
quality-related food safety programs
orders applicable to specified
under marketing orders for specialty
commodities. [7 U.S.C. 608c(6)]
crops. [Sec. 10106]
No comparable provision.
Authorizes appropriation of necessary
Similar to the House bill, and authorizes
Adopts Senate provision, authorizing
sums to implement a program to educate
$1 million in annual appropriations for
appropriations of $1 million annually
fresh produce industry personnel and
that purpose. [Sec. 1813]
(FY2008-2012) to remain available until
consumers about ways to reduce
expended. [Sec. 10105]
pathogens in fresh produce. [Sec. 10110]
Disaster Assistance
The 2002 farm bill established the Tree
Makes nursery tree growers eligible for
Makes nursery tree growers eligible for
Adopts Senate provision with changes to
Assistance Program to compensate
disaster assistance under the program,
disaster assistance, increases the limit on
modify the reimbursement cost of
commercial orchardists for losses due to
increases the limitation on annual
annual assistance to $100,000, adds
replanting trees lost from a natural
natural disasters and authorized annual
assistance from $75,000 to $150,000, and
reimbursement for orchard management
disaster; amend the Federal Crop
appropriations for the program. [7 U.S.C.
continues appropriations authority.
to repair losses, and provides necessary
Insurance Act with a provision identical
8201]
[Sec. 10101]
mandatory funding over the life of the
to that in the Trade Act of 1974; and to
farm bill. [Sec. 1210(e)]
make other technical changes. The
Manager’s report clarifies the insurance
requirement for eligibility applies only to
insurance on crops and not underlying
vines/trees. [Secs. 12033 and 15101]
Specialty Crop Sector Data Collection
No comparable provision.
Authorizes necessary funds through
Authorizes $9 million annually in funds
Adopts Senate provision with changes to
FY2012 to support the collection and
to support market news and price
authorize appropriations $9 million
dissemination of market news for
information on specialty crops.
annually (FY2008-2012) to remain
specialty crops. [Sec. 10402]
[Sec. 1811]
available until expended, in addition to

---

CRS-168
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
available annual appropriations for
market news services. [Sec. 10107]
The 1997 Census of Agriculture Act
Amends the 1997 law to include a census
Allows USDA to include a census of
Adopts House provision. [Sec. 10103]
(P.L. 105-113) authorizes a Census of
of specialty crops as part of the Census of
specialty crops in the Census or to
Agriculture to be taken every 5 years.
Agriculture. [Sec. 10107]
conduct a separate census of specialty
[7 U.S.C. 2204g(a)]
crops not later than the end of FY2008
and every 5 years thereafter. [Sec. 1814]
Other Commodity-Specific Provisions
No comparable provision.
Requires USDA to submit a report on the
No comparable provision.
Deletes House provision.
investigation of honey bee colony
collapse disorder and strategies to combat
the problem. [Sec. 10001]
The Honey Research, Promotion, and
No comparable provision.
Amends the Honey Research, Promotion,
Adopts Senate provision with changes to
Consumer Information Act (P. L.
and Consumer Information Act with
discontinue the current Honey Board
98-590), as amended, provides for
provisions regarding the Honey Board
after USDA conducts a referendum for
coordinated research, promotion, and
and referenda on the honey research and
honey producers or honey packers,
consumer information to expand their
promotion order. [Sec. 1854]
importers and handlers. Requires USDA
markets for honey. [7 U.S.C. 4601 note]
to act as a fiduciary in conducting the
referenda. [Sec. 10401]
No comparable provision.
No comparable provision.
Amends 7 U.S.C. 1622(h) to require the
Adopts Senate provision with changes to
USDA grading or inspection mark be
specify that violations of the labeling
located close to the country of origin
requirements of this section, with respect
label on packaged honey. [Sec. 1855]
to honey, may be deemed by USDA as
sufficient cause for debarment from the
benefits of the Agricultural Marketing
Act of 1946. [Sec 10402]
The Agricultural Adjustment Act requires
Adds clementines to the list of
Similar to the House bill. [Sec. 3207]
Adopts the House and Senate provision.
that imported commodities that are under
commodities to which this requirement
[Sec. 10102]
marketing orders in the U.S. meet the
applies. [Sec. 10105]
order’s standards. [7 U.S.C. 608e-1(a)]
The Agricultural Marketing Act of 1946
Adds a section to the 1946 act to regulate
Authorizes USDA to initiate the process
Adopts Senate provision. [Sec. 10108]
governs research and marketing
the minimum maturity of all Hass
of establishing a marketing order
programs for agricultural products.
avocados sold in the United States.
regulating the grades and standards of
[7 U.S.C. 1641]
[Sec. 10108]
Hass avocados, if a U.S. organization

---

CRS-169
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
submits such a proposal. [Sec. 1856]
A 1990 law contains the terms and
Makes changes to the geographic
Similar to the House bill, with technical
Adopts House provision with changes to
conditions of the mushroom marketing
composition of the Mushroom Board,
differences. [Sec. 1853]
clarify that the mushroom council may
order. [7 U.S.C. 6104]
and other provisions. [Sec. 10109]
develop and propose to USDA programs
for good agricultural and good handling
practices and related activities for
mushrooms. [Sec. 10104]
No comparable provision.
No comparable provision.
Establishes a program to compensate
Adopts Senate provision. [Sec. 10404]
asparagus growers for losses in 2004 —
2007 due to imports. Provides $15
million in mandatory funds for this
purpose. [Sec. 1852]
The 2002 farm bill did not include a
Creates new farm bill title, Horticulture
No new title; includes most horticulture
Creates new farm bill title, Horticulture
separate title for horticultural products or
and Organic Agriculture (Title X).
and organic agriculture provisions as part
and Organic Agriculture (Title X).
organic production.
of the Commodity Title I.
TITLE XI: LIVESTOCK
Livestock Mandatory Reporting
The Livestock Mandatory Reporting Act
No comparable provision.
Changes the time of the afternoon swine
Directs USDA to conduct a study of the
of 1999 [7 U.S.C. 1635-1636h]
report. After an economic study of
economic impacts of requiring plants to
established a program of mandatory
wholesale pork product prices, USDA is
report pork product sales, focusing on
reporting of information regarding the
authorized to establish mandatory packer
wholesale pork cuts. Also directs USDA
marketing of live cattle, boxed beef,
reporting of wholesale pork product
to improve electronic reporting and
swine, and lambs. Requires packers,
sales, specifying that USDA will make
publishing under the program. [Sec.
processors, and importers to provide
this information publicly available.
11001]
periodic reporting of price, volume,
[Sec. 10001]
contract, and demand information to
USDA. The information is used to create
price reports for livestock producers.
Meat and Poultry Inspection
The Federal Meat Inspection Act (FMIA)
Requires USDA to report to Congress on
Provides for a new opt-in program for
State inspection provisions generally the
[21 U.S.C. 601 et seq.] and the Poultry
the effectiveness of each state inspection
state-inspected plants with 25 or fewer
same as the Senate bill, without the
Products Inspection Act (PPIA) [21
program and on the changes necessary to
employees, which subjects them to
provision to provide 100%
U.S.C. 451 et seq.] permit states to
ensure enforcement of federal
federally-directed inspection using state
reimbursement for programs with
operate their own meat and poultry
requirements. Replaces current federal-
employees. During the first 3 years, state
pathogen testing that exceed federal
inspection programs, if they are at least
state cooperative inspection program
plants with 26-35 employees may also
testing. [Sec. 11015] Amends the FMIA

---

CRS-170
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
“equal to” (but not necessarily identical
with a new program whereby USDA
apply. Sets federal reimbursement at not
and PPIA to require all establishments to
to) the federal program. State-inspected
would approve the shipment of state-
less than 60% for both meat and poultry
promptly notify USDA if they have
meat and poultry cannot be shipped in
inspected meat and poultry from a state
programs and permits 100%
reason to believe an adulterated or
interstate commerce.
where key program requirements are
reimbursements if pathogen testing
misbranded product has entered
identical to federal requirements; permits
exceeds typical federal testing, among
commerce. Requires establishments to
many plants currently under federal
other provisions. [Sec. 11067] Requires
prepare, and maintain in writing, a
inspection to shift to state inspection;
USDA to establish “reportable food
product recall plan.
raises the federal reimbursement
registries” for meat and poultry and their
[Sec. 11017]
maximum from 50% to 60% for poultry
products. Requires all establishments to
programs only; among other things.
include recall plans in their safety
[Sec. 11103] No comparable provisions
prevention (i.e., HACCP) plans, and
regarding reportable food registries,
requires all beef establishments to have
recall plans, E. coli reassessment, or
an E. coli reassessment. Directs HHS
sanitary food transportation.
and USDA to issue sanitary food
transportation regulations. [Sec. 11087]
Seafood Grading and Inspection
The 2002 farm bill identifies the market
No comparable provision.
Authorizes the establishment of a
Makes “catfish,” as defined by the
and common name for catfish for
voluntary USDA grading program for
Secretary, an amenable species under the
labeling purposes. [21 U.S.C. 321d]
catfish. Requires USDA to provide
FMIA, thus subjecting catfish products to
Sec. 203(c) of the Agricultural Marketing
inspection activities for catfish, by
mandatory inspection; authorizes USDA
Act (AMA) of 1946 [7 U.S.C. 1622]
adding catfish to the list of “amenable
to take into account the conditions under
authorizes USDA to develop standards to
species” under the FMIA. Specifies that
which catfish are raised and transported.
encourage uniformity and consistency in
new catfish grading and certification
Amends the 1946 AMA to authorize
commercial marketing. Sec. 1(w) of
programs shall not duplicate, impede, or
USDA to establish a voluntary fee-based
FMIA [21 U.S.C. 601 et seq.] defines
undermine similar activities conducted
grading program for catfish and to permit
“amenable species” subject to mandatory
by the Department of Commerce or by
other farm-raised seafood industries to
inspection.
the Food and Drug Administration. [Sec.
apply for such grading.
10002]
[Sec. 11016]
Country of Origin Labeling (COOL)
Sec. 10816 of the 2002 farm bill
Continues to require COOL implemen-
Similar to the House bill, but further
Continues to require COOL implemen-
amended the AMA of 1946 by requiring
tation by 2008 for red meats and other
makes macadamia nuts and chicken
tation by Sept. 30, 2008, for covered
retailers (excl. restaurants) to provide
covered commodities. Adds meat
covered commodities. [Sec. 10003]
commodities, to which are added goat
country of origin labeling (COOL) for
produced from goats. Makes changes to
Creates a separate program for ginseng
meat, chicken, macadamia nuts, pecans,
beef, lamb, pork, seafood, peanuts, and
the labeling requirements for fresh red
for country of harvest labeling. [Sec.
and ginseng. Changes the labeling
perishable agricultural commodities.
meats, by creating a new labeling system
10004]
requirements for fresh red meats by
Specifies requirements on labeling USA
for red meats with new designation
creating a new labeling system for red
products, on recordkeeping, certification,
categories, e.g., defines U.S. origin as a
meats with new designation categories,
and on enforcement and fines for non-
product from an animal exclusively born,
e.g., defines U.S. origin as a product

---

CRS-171
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
compliance. Annual appropriations bills
raised and slaughtered in the U.S. (or
from an animal exclusively born, raised
delayed implementation of mandatory
present in the U.S. before Jan. 1, 2008).
and slaughtered in the U.S. (or present in
COOL for all covered commodities until
For all covered commodities, eases
the U.S. before July 15, 2008). For all
Sept. 30, 2008 (except wild and farm-
record-keeping, certification
covered commodities, eases record-
raised fish and shellfish, which went into
requirements, and reduces fines for
keeping, certification requirements, and
effect in 2005.) [7 U.S.C. 1621 et seq.]
noncompliance. [Sec. 11104]
reduces fines for noncompliance. [Sec.
11002]
Agricultural Fair Practices Act
The Agricultural Fair Practices Act
No provision.
Amends AFPA as follows:
Amends AFPA to modify the previous
(AFPA) of 1967 (P.L. 90-288) allows
—
Expands the definition of
definition of “association of producers”
farmers to file complaints with USDA if
“association of producers” to also
to include organizations with
a processor refuses to deal with them
include general livestock, poultry
membership exclusively limited to
because they are members of a
and farm groups. [Sec. 10101]
agricultural producers and dedicated to
bargaining or marketing association of
—
Broadens the types of prohibited
promoting their products. Also modifies
producers. Makes it unlawful for
practices. [Sec. 10102]
the definition of “handler.” [Sec. 11003]
handlers to coerce, intimidate, or
—
Amends the enforcement
discriminate against producers because
provisions; clarifies civil actions
they belong to such groups. [7 U.S.C.
against handlers, providing for
2301 et seq.]
preventive relief, damage, and
attorneys fees. [Sec. 10103]
—
Directs USDA to promulgate
rules/regulations. [Sec. 10104]
Packers and Stockyards Act
The Packers and Stockyards Act (P&S
Amends the P&S Act to direct USDA to
Amends the P&S Act as follows:
Amends the P&S Act as follows:
Act) of 1921 (P.L. 67-51), as amended,
establish regulatory standards for
—
Creates a new special counsel at
— Requires an annual report from
provides USDA with the basic authority
arbitration provisions in livestock and
USDA to investigate/prosecute
USDA on detailed investigations
to regulate marketing practices in the
poultry contracts. Among other things,
violations of competition laws.
into possible violations of the P&S
livestock, poultry, and meat industries.
such regulations are intended to permit a
[Sec. 10201]
Act; [Sec. 11004]
The law is to prevent unfair, deceptive,
producer to seek relief in a small claims
— Strengthens USDA enforcement
—
Permits poultry and swine
and monopolistic trade practices,
court, if within the court’s jurisdiction,
authorities over live poultry
producers to cancel their contracts
focusing on livestock terminal and
regardless of a contract’s arbitration
dealers. [Sec. 10202]
up to 3 business days after signing,
auction markets, livestock marketing
clause. [Sec. 11102]
—
Specifies conditions regarding
unless a later date is specified in
agencies, dealers, meat packers, and live
cancelling and securing contracts.
the contract; and requires clear
poultry dealers. [7 U.S.C. 181 et seq.]
Provides for producer choice of
disclosure in contracts of
jurisdiction and venue, including
cancellation terms;
arbitration. [Sec. 10203]
—
Requires poultry/swine contracts to
—
Allows growers to discuss contract
contain a conspicuous statement
terms. [Sec. 10204]
that additional large capital

---

CRS-172
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
—
Allows producers to seek remedy
investments may be required
for violations. [Sec. 10205]
during the term of the contract;
—
Allows USDA to seek outside
—
Contains provisions intended to
counsel to aid in investigations and
assist producers deal with contract
civil cases. [Sec. 10206]
disputes, including arbitration
—
Prohibits major packers from
terms, venue for any litigation.
owning, feeding, or controlling
[Sec. 11005]
livestock more than 14 days prior
—
Requires USDA to issue rules on
to slaughter. [Sec. 10207]
such criteria as, for example, the
—
Directs USDA to promulgate
reasonable period of time a
regulations. [Sec. 10208]
producer should be given to
remedy a breach of contract before
it is cancelled. [Sec. 11006]
Animal Pest and Disease Programs
Sec. 2506(d) of the 1990 farm bill
Sense of Congress regarding
Similar to the House bill, and also
Similar to the House bill, also
authorizes appropriations and directs
pseudorabies eradication program that
recognizing the threat to the entire
recognizing the threat to the entire
USDA to carry out pseudorabies
USDA recognize the threat feral swine
livestock industry. [Sec. 10301]
livestock industry. [Sec. 11007]
eradication in U.S. swine populations.
pose to the domestic swine population,
Current concerns are that this disease
and the need for a surveillance program
persists in feral populations and may be
for monitoring and eradication.
reintroduced. [21 U.S.C. 114i]
[Sec. 11101]
Sec. 10409 of the Animal Health
No comparable provision.
Directs USDA to establish and
Directs USDA to establish and
Protection Act (AHPA), enacted as part
implement a trichinae certification
implement a voluntary trichinae
of the 2002 farm bill, directs USDA to
program. Authorizes appropriations of
certification program. Requires USDA to
carry out operations and measures to
$1.25 million annually for FY2008-12.
use not less than $6.2 million for the
detect, control, or eradicate any livestock
[Sec. 10304]
program, subject to availability of
pest or disease, incl. animals at
appropriations. Authorizes annual
slaughterhouse, stockyard, or other point
appropriations of $1.5 million for
of concentration. [7 U.S.C. 8308]
FY2008-2012. [Sec. 11010]
USDA has authority to cooperate with
Sense of Congress regarding the cattle
Same as the House bill. [Sec. 10302]
Adopts House and Senate provision.
states on laws that exclude, eradicate,
fever tick eradication program that the
[Sec. 11008]
and/or control agricultural pests within
cattle fever tick and the southern cattle
the AHPA [7 U.S.C. 8301 et seq.] and
tick are vectors of the causal agent of
the Talmadge-Aiken Act [7 U.S.C. 450].
babesiosis, a severe and often fatal
Sections of 21 U.S.C., Title 21 (Food and
disease of cattle; and that implementing a
Drugs) also cover the prevention and
national strategic plan for the cattle fever
spread of contagion. Current concerns
tick eradication program is a high
are about pesticide-resistant populations
priority, among other things.

---

CRS-173
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
of the southern cattle tick in Mexico.
[Sec. 11106]
Sec. 10407(d)(2) of APHA specifies
Sense of Congress regarding the
Amends AHPA to compensate any
Amends the AHPA to require the
compensation amounts for seizure,
voluntary control program for low
poultry contract grower or owner
Secretary to compensate industry
quarantine, and disposal of animals that
pathogenic avian influenza program; and
participating in the voluntary control
participants and state agencies that
may carry or have been infected with or
that USDA should continue to provide
program for low pathogenic avian
cooperate in voluntary detection and
exposed to pests or diseases, and are
compensation payments to poultry
influenza under the National Poultry
control of diseases with low
moved through interstate commerce or
owners and cooperating state agencies at
Improvement Plan. Specifies payments
pathogenicity at 100% of eligible costs.
are imported. [7 U.S.C. 8306(d)(2)]
100% of eligible costs. [Sec. 11105]
to cooperating state agencies to be 100%
[Sec. 11011]
of the eligible costs. [Sec. 10306]
No comparable provision.
No comparable provision.
Sense of Senate that USDA should work
Deletes provision.
with the private insurers to implement an
expedited approach for indemnification
of livestock producers in cases of cata-
strophic disease outbreaks. [Sec. 10308]
Sec. 10411 of AHPA authorizes USDA
No comparable provision.
Establishes an advisory committee on
Permits USDA to enter into cooperative
cooperative agreements with eligible
national aquatic animal health; details
agreements to carry out a project under a
entities, including other governments and
committee membership; requires USDA
national aquatic animal health plan under
associations, to conduct animal health
regulations establishing a national aquatic
Sec. 10411 of the AHPA. Requires
activities. [7 U.S.C. 8310]
animal health improvement program
USDA to determine the nonfederal share
under AHPA authority; authorizes
of costs (to be either cash or in-kind) on a
appropriations of $15 million for FY2008
case-by-case basis. Authorizes such
and FY2009 for a new producer
sums as necessary in each fiscal year,
indemnification fund and for
FY2008-FY2012. [Sec. 11013]
implementation of an animal health task
force plan. [Sec. 11086]
National Animal Identification System
No comparable provision in AHPA.
No comparable provision.
Requires USDA to issue regulations,
Deletes provision.
Under this authority, in 2004, USDA
subject to public comment, addressing
accelerated work on a voluntary
“the protection of trade secrets and other
National Animal Identification System
proprietary and/or confidential business
(NAIS) to trace animals from slaughter
information that farmers and ranchers
through all premises within 48 hours of
disclose in the course of participation” in
an animal disease outbreak.
an animal ID system. [Sec. 10305]

---

CRS-174
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Livestock Provision Related to Bioenergy Programs — see section on Energy Programs (below)
Other Commodity-Specific Provisions
Sec. 375 of the Consolidated Farm and
Reauthorizes appropriations of $10
Also eliminates statutory requirement to
Similar to Senate provision, but does not
Rural Development Act (Con Act), as
million annually (FY2008-12).
eventually privatize the revolving fund.
rename the program. [Sec. 11009]
amended, established the National Sheep
Eliminates statutory requirement to
Renames the program as the National
Industry Improvement Center to provide
eventually privatize the revolving fund.
Sheep and Goat Industry Improvement
financial assistance for the enhancement
[Sec. 6015]
Center, and provides for new mandatory
and marketing of U.S. sheep or goat
funding of $1 million for FY2008, to be
products, focusing on infrastructure
available until expended. Authorizes
development. Funding includes manda-
appropriations of $10 million annually
tory funds of $28 million for a revolving
for FY2008-12. [Sec. 10303]
fund, and appropriations authorized at
$30 million. [7 U.S.C. 2008j]
No comparable provision.
No comparable provision.
Requires USDA study and report on the
Requires USDA study and report on
potential economic issues (including
animal manure use as agricultural
costs) associated with animal manure
fertilizer, potential impact on consumers
used in normal agricultural operations
and agriculture from limitations on its
and as a bioenergy feedstock. [Sec.
utilization, and effects on agriculture of
10307]
increasing its use for bioenergy
production. [Sec. 11014]
The 2002 farm bill does not include a
No new title; includes most animal
Creates new farm bill title, Livestock
Creates new farm bill title, Livestock
separate title for animal agriculture.
agriculture provisions as part of the
Marketing, Regulatory, and Related
(Title XI).
Miscellaneous Title XI.
Programs (Title X).
TITLE XII: CROP INSURANCE & DISASTER ASSISTANCE PROGRAMS
Timing of Crop Insurance Payments and Receipts
The federal government provides three
Changes the timing of crop insurance
Similar, but not identical, language as the
Adopts the House provision that changes
levels of subsidies to the crop insurance
receipts (premium collections) and the
House bill, which effectively requires
the premium billing date to August 15
program: (1) subsidizing a portion of the
timing of payments to the insurance
premiums to be collected from producers
[Sec. 12007], the Senate provisions that
farmer-paid premium, (2) reimbursing
companies, beginning with the 2012
slightly earlier, and payments to the
change the timing of reimbursements to
the private crop insurance companies for
reinsurance year (which starts July 1,
insurance companies to be made slightly
the private companies for operating
most administrative and operating
2011). Two insurance years of program
later, beginning in the 2012 crop year, so
expenses to between October 1 and 31
expenses, and (3) absorbing most of the
receipts will be received in the same
that savings can be scored in the last year
[Sec. 12015] and underwriting gains to
program losses. [7 USC 1501 et seq.]
fiscal year (FY2012) and payments will
of the 5-year farm bill (FY2012). [Secs.
October 1 [Sec. 12018], thus allowing the
be delayed until the next fiscal year, thus
1906 and 1914]
scoring of budget savings in FY2012.
scoring budget savings in FY2012. [Secs.
11001(c), 11001(e), and 11010]

---

CRS-175
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Reimbursement of Administrative and Operating Expenses
Prior law prohibited companies from
Beginning in the 2009 reinsurance year,
Beginning in the 2009 reinsurance year,
Beginning in the 2009 reinsurance year,
receiving a reimbursement greater than
the reimbursement rate to the insurance
the reimbursement rate for additional
the reimbursement rate for additional
24.5% of total premiums. The Standard
companies for their administrative and
coverage policies falls by 2 percentage
coverage policies falls by 2.3 percentage
Reinsurance Agreement (SRA)
operating expenses for all policies
points. An exception is any reinsurance
points. Restores one-half of the
established the reimbursement rate below
declines by 2.9 percentage points from
year in any state that has a loss ratio
reduction in states with a loss ratio
the statutory maximum for all insurance
the current rate. The range of
greater than 1.2 (i.e., when indemnity
greater than 1.2. The reimbursement rate
plans, ranging from 18.1% to 24.2%. [7
reimbursement rates declines to between
payments exceed total premiums by more
for policies based on area-wide losses is
USC 1508(k)(4)(A)]
15.2% to a maximum of 21.3%. [Sec.
than 20%). The reimbursement rate for
reduced to 12% of total premiums. [Sec.
11001(d)(1)]
policies based on area-wide losses is
12016]
reduced to 17% of total premiums. [Sec.
1912]
Premiums and Fees
For catastrophic (CAT) coverage,
Increases the producer-paid fee for
Similar to the House bill for raising the
Raises the CAT fee to $300 per crop per
producers pay no premium, but pay an
catastrophic coverage to $200 per crop
CAT fee to $200. The NAP fee is
county. [Sec.12006] Increases the NAP
administrative fee of $100 per crop per
per county. For NAP, the fee also is
increased to $200 per crop per county, or
fee to $250 per crop per county, or $750
county. [7 USC 1508(b)(5)(A)] Growers
raised to $200 per crop per county, or
$600 per producer per county, not to
per producer per county, not to exceed
of uninsurable crops are eligible for a
$600 per producer per county, not to
exceed $1,500 per producer. [Secs. 1905
$1,875 per producer. [Sec. 12028]
separate Noninsured Assistance Program
exceed $1800 per producer. [Secs. 11002
and 1926]
(NAP) and pay a fee of $100 per crop, or
and 11009]
$300 per producer per county, not to
exceed $900 per producer. [7 USC
7333(k)(1)]
When permitted by state law, a
Limits the ability of associations to pay
Revises prior law to clarify that the
Adopts the provision in Sec. 1905 of the
cooperative or trade association may pay
the CAT fee on behalf of a producer.
provision applies only to fees for CAT
Senate bill which clarifies that coop-
on behalf of its members, any or all of
[Sec. 11001(b)] Prohibits insurance
coverage. [Sec. 1905]
eratives and trade associations can pay
the administrative fee for CAT coverage.
companies from paying or rebating
only the fees for catastrophic coverage on
[7 USC 1508(b)(5)(B)] .
premiums, or making any inducements to
behalf of their members. [Sec. 12006]
purchase crop insurance. [Sec. 11001(a)]
Adopts the provision in Sec. 11001(a) of
the House bill that prohibits the rebating
of premiums, with certain exceptions for
entities that have already been approved
for rebating. [Sec. 12004]
Authorizes crop insurance companies to
Strikes authority for companies to offer a
Strikes authority for PRP only, and
Strikes authority for the PRP only.
offer customers a discount when the
Premium Reduction Plan (PRP) or
requires USDA to commission a study on
[Sec. 12010]
insurance companies adopt efficiencies
Premium Rate Reduction Pilot program.
the feasibility of the PRP within 18

---

CRS-176
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
that reduce their administrative and
[Sec. 1101(f)]
months of enactment. [Sec. 1908]
operating costs. [7USC 1508(b)(5)(A)]
No comparable provision.
Reduces the premium subsidy for area
No comparable provision.
Adopts House provision.
risk plans by 4 percentage points. [Sec.
[Sec. 12012]
11013]
Requires USDA to set premiums so that
No comparable provision
Reduces the statutory loss ratio to 1.0,
Adopts Senate provision.
the overall program loss ratio is 1.075.
meaning that total premiums should be
[Sec. 12003]
[7 USC 1506(n)]
established to equal expected total
indemnity payments. [Sec. 1903]
Authorizes an Agricultural Management
No comparable provision
Allows USDA to use AMA funds to
Deletes Senate provision.
Assistance (AMA) program to in part
match state funds used to provide
help certain states make better use of risk
additional premium discounts to
management tools. [7 USC 1524(b)]
underserved states. [Sec. 1923]
Standard Reinsurance Agreement and Risk-Sharing
The Standard Reinsurance Agreement
Requires the private insurance companies
No comparable provision.
Deletes House provision.
(SRA) between the federal government
to reinsure at least 22% of their retained
and private crop insurance companies
premiums with the government, and in
determines levels of risk sharing. The
return the government will provide a
agreement requires companies to reinsure
ceding commission of 2% to companies,
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
Similar to the House bill, except that
Allows USDA to renegotiate the SRA
with the 2012-13 reinsurance year, and
USDA has discretion to renegotiate the
beginning with the 2010-11 reinsurance
once every 5 years thereafter. Insurance
SRA more frequently than every 5 years,
year and once every 5 years thereafter.
companies can confer with each other
with congressional notification of such
Adopts the Senate provision to allow
during the process. [Sec. 11001(d)(2)]
action. Allows crop insurance companies
companies to confer with each other and
to confer with each other and collectively
collectively with USDA during
with USDA during the renegotiation
renegotiation. SRA can be renegotiated
process. [Sec. 1913]
more than once in a 5-year period if one
of the changes is required by law, and
Congress is notified. [Sec. 12017]

---

CRS-177
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Program Integrity (Waste, Fraud, and Abuse)
Annual mandatory funds of $23 million
Authorizes mandatory funding of $11
Requires USDA to establish a program
Provides mandatory funding of up to $4
for data mining and program integrity
million in FY2008, and $7 million in
whereby crop insurance companies pay
million per year beginning in FY2009 for
activities expired at the end of FY2005.
FY2009 and subsequent years for crop
USDA a fee for access to its data mining
data mining, and requires periodic
[7 USC 1516(k)] Annual appropriations
insurance program compliance and
system, and USDA uses proceeds for its
competition for the funds. Adds a new
acts provided $3.6 million in annual
integrity activities, including data
data system. [Sec. 1915] Prohibits
subsection to provide mandatory funds of
discretionary funds (FY2006, FY2007).
mining. [Sec. 11008]
farmers from collecting commissions as
up to $15 million per year over 4 years
FY2008 appropriations act authorized
agents on policies in which their family
(FY2009-13) to upgrade USDA’s
mandatory funds of $11.2 million.
has a substantial interest. [Sec. 1904]
computer technology for crop insurance.
[Sec. 12021] Adopts Senate provision
that prohibits farmers from collecting
commissions as agents on policies in
which their family has an interest,
modifying the definitions of “family” and
“compensation.” [Sec. 12005]
Risk Management Research and Development
USDA is required to reimburse an
Authorizes USDA to use no more than
Reduces annual mandatory funding for
Adopts Senate provision to reduce
applicant for the R&D costs associated
$30 million annually in mandatory funds
R&D from $15 million to $7.5 million,
mandatory funding for R&D to $7.5
with developing a new plan of crop
for grants for R&D and education and
and for contracting and partnerships from
million and for contracting/partnerships
insurance that is approved by USDA [7
information programs, of which $5
$25 million to $12.5 million. Prohibits a
to $12.5 million. [Sec. 12024]
USC 1522] and with developing crop
million is for underserved states.
surcharge on premiums for organic crops,
Applicants with approved concept papers
insurance education programs. [7 USC
Stipulates criteria for which grants will
unless greater loss history is confirmed.
for a new policy can receive up to 50%
1524] Annual mandatory funding is $15
be awarded. Requires USDA to enter into
Establishes an alternative reimbursement
of expenses in advance, and the balance
million for R&D reimbursements and
contracts to improve coverage for
grant process. Requires USDA to enter
upon approval. [Sec. 12022] Adopts
$25 million for contracting and
organic crops, and to address the needs of
into contracts to expand coverage for
House provision to enter into contracts to
partnerships. [7 USC 1522(e)]
beginning and minority farmers. [Secs.
organic crops, aquaculture, energy crops
improve coverage for organic crops, and
11003-11006]
such as switchgrass, and to address the
Senate provisions for energy crops and
needs of beginning and minority farmers.
aquaculture, and other new provisions for
[Secs. 1917-1919, 1907]
poultry, beekeepers, and beginning
farmers. [Sec. 12023] Requires USDA to
develop risk management education
programs for beginning, immigrant,
socially disadvantaged, retiring, and
transitioning farmers. [Sec. 12026]

---

CRS-178
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Small Business Disaster Loan Program
The Small Business Administration
No comparable provision.
Makes many changes to SBA disaster
Adopts Senate provision with changes.
offers low interest, fixed-rate loans to
loan program authority including raising
[Secs. 12051-12086]
small businesses to help them recover
the loan cap from $1.5 million to $2
from economic injury caused by a natural
million; extending assistance to non-
disaster. [15 USC 636(b), (c), and (f)]
profits; enhancing SBA and FEMA
Note: Farmers generally are not eligible
coordination of disaster response, among
for SBA loans, and instead receive
other provisions. [Secs. 11111-11161]
assistance through USDA programs.
Supplemental Agriculture Disaster Assistance — see section on Trade and Tax Provisions (Title XV)
“Sodsaver” Provisions Related to Farmland Conservation — see section on Conservation Programs (Title II)
Other Crop Insurance Provisions
No comparable provision.
Establishes a National Drought Council
No comparable provision.
Deletes House provision.
within 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
Prohibits USDA from using production
Similar to the House bill. Also requires
Adopts Senate provision. [Sec. 12029]
available to producers who experienced
data from the sweet potato crop insurance
USDA to extend the disaster application
significant losses to a 2005, 2006, or
pilot program in determining crop
deadline for sweet potato growers, if
2007 crop. (Sec. 9001 of P.L. 110-28, as
disaster payments for 2005 and 2006.
necessary, to implement this provision.
amended by P.L. 110-161).
[Sec. 11016]
[Sec. 1927]
Authorizes USDA to create crop
Mandates a sesame insurance pilot
Creates pilot programs for sesame [Sec.
Authorizes separate insurance pilot
insurance pilot programs. [7 USC 1523]
program for Texas. [Sec. 11011]
1921], camelina [Sec. 1920], and
programs, for sesame, camelina, grass
enterprise/whole farm units [Sec. 1909].
seed [Sec. 12025] and for enterprise and
whole farm units (with modifications to
the Senate provision) [Sec. 12011]
No comparable provision.
No comparable provision.
Makes contract livestock producers
No provision addressing the eligibility of
eligible for crop insurance, if not covered
contract livestock producers. Adopts the
by other policies. [Sec. 1916] Requires a
requirement that USDA report on
USDA report within 180 days of
declining yield issues. [Sec. 12030]
enactment on issues regarding declining
crop insurance yields, especially for
perennials. [Sec. 1928]

---

CRS-179
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
Defines an organic crop as any
Adopts Senate provision. [Sec. 12001]
agricultural commodity organically
produced consistent with Section 2103 of
the Organic Foods Production Act of
1990 (7 U.S.C. 6502). [Sec. 1901]
TITLE XIII: COMMODITY FUTURES
Authorization for the Commodity Futures
No comparable provision.
Reauthorizes the CFTC. [Sec. 13001-
Reauthorizes appropriations for the
Trading Commission (CFTC), a “sunset”
13204] Clarifies the CFTC’s jurisdiction
CFTC (FY2008-FY2013). Amends the
agency established in 1974, expired on
over foreign exchange contracts offered
Commodity Exchange Act to (1) clarify
Sept. 30, 2005. In the past, Congress has
to retail customers. Expands CFTC’s
CFTC jurisdiction over retail financial
used the reauthorization process to
authority over non-exchange “electronic
contracts based on foreign currencies, (2)
consider amendments to the Commodity
trading facilities” where contracts based
make the CFTC’s anti-fraud authority
Exchange Act, which provides the basis
on metals and energy commodities are
applicable to certain off-exchange or
for federal regulation of commodity
traded. If the CFTC determined that
over-the-counter derivatives contracts,
futures trading. The last reauthorization
trading on such a market played a
(3) increase civil monetary and criminal
resulted in the enactment of the Commo-
significant role in price discovery, the
penalties for violations, (4) permit
dity Futures Modernization Act of 2000
facility would have to comply with
cross-margining of accounts in security
(CFMA), the most significant amend-
several core regulatory principles,
futures and options, and (5) establish
ments to the CEA since the CFTC was
including maintaining and enforcing
CFTC regulation over certain
created in 1974. [7 U.S.C. 2(c)(2))] Both
rules to prevent price manipulation. Such
exchange-like trading facilities that are
chambers considered reauthorization bills
markets would also have to publish data
currently exempt from most regulation.
in the 109th Congress; none was enacted.
on prices and trading volume.
[Sec. 13001- 13204]
TITLE XIV: MISCELLANEOUS
Section 32 Funding for Nutrition Programs
Section 32 of the Act of August 24, 1935,
No comparable provision.
No comparable provision.
Provides explicit instructions on how
authorizes a permanent appropriation
each year’s Section 32 money must be
equal to 30% of annual U.S. customs
allocated, in order to fund the fresh fruit
receipts, to be used by USDA only for:
and vegetable program (Sec. 4304 of the
(1) encouraging the export of farm
nutrition title). Essentially caps Section
products through producer payments or
32 “unobligated” funds — i.e., the
other means; (2) encouraging the
amount the Secretary (through AMS) is
domestic consumption of farm products
permitted to spend after transfers for use
by diverting surpluses from normal
in the child nutrition programs and to
channels or increasing their use by
Commerce for fisheries activities. The
low-income groups; (3) reestablishing
program under Sec. 4304 is to be funded
farmers’ purchasing power. The
with a portion of these unobligated funds.
Secretary of Agriculture has considerable
[Sec. 14222] To fund a new

---

CRS-180
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
discretion in deciding how to achieve
requirement (in the nutrition title under
these broad objectives.
Sec. 4305) to purchase whole grain
[7 U.S.C. 612c]
products for the school lunch and
breakfast programs, the Secretary must
make available, in FY2009, $4 million in
Section 32 money. [Sec. 14222]
Socially Disadvantaged and Limited Resource Producers
Sec. 2501(a)(1) of the 1990 farm bill
Amends program to specify that technical
Similar to the House bill, with technical
Allows additional contracting authority
established Outreach and Assistance for
and outreach assistance program is to be
differences. Authorizes appropriations of
and does not require matching funds.
Socially Disadvantaged Farmers and
used to enhance the coordination,
up to $50 million annually for
[Sec. 11053]Adopts Senate provisions
Ranchers and Limited Resource Farmers
outreach, technical assistance, and
FY2008-12. No more than 5% of funds
with modification to delete language
and Ranchers, authorizing USDA to
education efforts authorized under USDA
are to be used for administrative
pertaining to renewal of contracts, review
carry out outreach and technical
programs. Mandates CCC funding of
expenses. [Sec. 11052]
of proposals, coordination of with
assistance to assist socially disadvantaged
$15 million annually for FY2008-12. No
USDA’s Office of Outreach, and
farmers and ranchers in: owning and
more than 5% of funds are to be used for
additional contracting authority. Provides
operating farms and ranches; and in
administrative expenses. [Sec. 11201]
$75 million in mandatory funding for the
participating equitably in the full range of
Outreach and Assistance for Socially
agricultural programs offered by USDA
Disadvantaged Farmers and Ranchers
[7 U.S.C. 2279]
and Limited Resource Farmers and
Ranchers program. [Sec. 14004]
Sec. 2501(g)(1) of the 1990 farm bill
Reauthorizes improved program delivery
Similar to the House bill, with technical
Adopts House provision.
directs USDA to improve service
by USDA on Indian reservations. [Sec.
differences. [Sec. 11054]
[Sec. 14001]
delivery on Indian reservations. [7 U.S.C.
11202]
2279(g)(1)]
No comparable provision in statute, but
No comparable provision.
Places a moratorium on USDA farm loan
Adopts the Senate provision, with
USDA guidance prohibits loan
foreclosures when there exists a pending
modification; places provision in
foreclosure when a pending claim of
claim of discrimination against USDA.
different U.S. Code section. [Sec. 14002]
discrimination against USDA exists.
Sec. 2501A(c)(1) of the 1990 farm bill
Directs USDA annually to compile
Similar to the House bill. Directs USDA,
Adopts House provision.
directs USDA to annually compute the
program application and participation
acting through USDA’s Assistant
[Sec. 14006]
participation rate of socially
rate data on socially disadvantaged
Secretary for Civil Rights, to use the
disadvantaged farmers and ranchers as a
farmers and ranchers for each county and
enhanced data collection [Sec. 11056],
percentage of the total participation of all
state. Data are to be made public.
but also to conduct oversight and
farmers and ranchers for each USDA
[Sec. 11203]
evaluation of civil rights compliance.
program [7 U.S.C. 2279]
[Sec. 11064]

---

CRS-181
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Sec. 7405 of the 2002 farm bill
Reauthorizes program, and provides $15
Authorizes $30 million in annual
Adopts Senate provision. Moves the
establishes the Beginning Farmer and
million in mandatory funding annually
appropriations. Incorporates energy
program to Title VII (Research) and
Rancher Development Program; provides
(FY2008-12). [Sec. 11204]
conservation efficiency and transition to
deletes several provisions. Adds $15
training, education, outreach/technical
organic farming into program, limiting
million in mandatory funding for
assistance initiatives. [7 U.S.C. 3319f]
grants to $250,000 each. [Sec. 7309]
FY2009 and $20 million annually
FY2010-2012. [Section 7410]
No comparable provision.
Authorizes USDA to provide a receipt
Specifies that the USDA’s Farm Service
Adopts Senate provision. Adds USDA
for service or denial of service upon
Agency and USDA’s Natural Resources
Rural Development to the agencies
request to any applicant for USDA loans
Conservation Service as the agencies
subject to the provision.
and grants. [Sec. 11205]
subject to this provision; requires USDA
[Sec. 14003]
receipt upon request. [Sec. 11057]
No comparable provision.
Directs USDA to ensure that the Census
Similar to the House bill.
Adopts Senate provision.
of Agriculture and USDA’s Economic
[Sec. 11055]
[Sec. 14005]
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
No comparable provision.
Adopts House provision with
the technical and support assistance for
modifications. [Sec. 14013]
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
No comparable provision.
Adopts House provision with changes.
Committee on Minority Farmers under
Deletes components pertaining to review
USDA’s Office of Outreach, which will
of civil rights enforcement, annual
be responsible for reviewing civil rights
reporting on civil rights, and program
cases and ensuring they are processed in
review. Revises membership of the
a timely manner. [Sec. 11209]
committee. [Sec. 14008]
No comparable provision.
Directs USDA to establish a Coordinator
No comparable provision.
Adopts House provision with an
for Chronically Underserved Rural
amendment to locate the Coordinator in
Areas, to be located in USDA’s Office of
USDA Rural Development instead of the
Outreach and to direct resources to high
Office of Outreach. [Sec. 14118]
need, poverty rural areas. [Sec. 11210]
No comparable provision.
No comparable provision.
Creates an Office of Small Farms and
Adopts Senate provision with an
Beginning Farmers and Ranchers to
amendment that the provision subsume

---

CRS-182
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
coordinate USDA activities across
this office into USDA’s Office of
agencies to ensure access to all USDA
Advocacy and Outreach. [Sec. 14013]
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
Permits any claimant in the Pigford
Similar to the House bill, but with
Adopts Senate provision with
decision,” pertains to a federal district
decision who has not previously obtained
technical differences. Authorizes
modifications. [Sec. 14012]
court decision resolving a class action
a determination on the merits of a claim,
appropriations of such sums as necessary
discrimination suit between USDA and
to petition in civil court to obtain such a
beyond the $100 million in mandatory
black farmers. The suit claimed USDA
determination (limits total amount of
funding. [Sec. 5402]
discriminated against black farmers on
payment/debt relief pursuant to this court
the basis of race and failed to investigate
action to $100 million). Restricts USDA
or properly respond to complaints from
from starting foreclosure of a loan if the
1983-1997. [Pigford v. Glickman, No.
borrower is a Pigford claimant who can
97-1978 and No. 98-1693 (D.D.C. July
show that a pending foreclosure is related
14, 2000)]
to a Pigford claim. [Sec. 11312]
Agricultural Biosecurity
No comparable provision.
No comparable provision.
Identifies Subtitle A of Title XI with the
Gives the subtitle the name “Agricultural
heading, “Agricultural Security.”
Security Act of 2008.” [Sec. 14101]
No comparable provision.
No comparable provision.
Defines the terms for purposes of
Adopts Senate provision, with
program: agent, agricultural biosecurity,
modifications. Adds definition for
agricultural countermeasure, agricultural
agricultural disease emergency. [Sec.
disease, agriculture, agroterrorist act,
14102]
animal, department, development, plant,
and qualified agricultural counter-
measure. [Sec. 11011]
No comparable provision, but USDA
No comparable provision.
No comparable provision.
Creates an “Office of Homeland
created a “Homeland Security Staff” after
Security” within USDA to coordinate
the events of September 11, 2001.
agroterrorism and agricultural disease
efforts and to be a liaison with other
agencies. Codifies the functions of the

---

CRS-183
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
former homeland security staff. [Sec.
14111]
No comparable provision.
No comparable provision.
No comparable provision.
Creates an “Agricultural Biosecurity
Communications Center” to collect and
share information. [Sec. 14112]
No comparable provision, but Homeland
No comparable provision.
Establishes (1) a National Plant Disease
Deletes Senate provision.
Security Presidential Directive 9 (HSPD-
Recovery System of countermeasures to
9) instructs USDA and DHS to develop a
respond to an outbreak of plant disease
National Plant Disease Recovery System
within a single growing season; and (2) a
and a National Veterinary Stockpile.
National Veterinary Stockpile of counter-
[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
Adopts Senate provision, with
at USDA to stimulate R&D of
modifications to remove specificity,
agricultural countermeasures. Waves
including for coordination with DHS.
competitive process in emergencies.
[Sec. 14121]
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
No comparable provision.
Establishes a veterinary workforce grant
Adopts Senate provision, with
instructs USDA to support the
program at USDA to increase the number
modification. Expands program to
development and promotion of higher
of veterinarians trained in biosecurity.
agriculture, veterinary medicine, and
education programs for the protection of
Authorizes appropriations (such sums as
food science. [Sec. 14122]
animal and plant health. [HSPD-9(20)]
necessary) for FY2008-12. [Sec. 11014]
No comparable provision.
No comparable provision.
Provides grants for biosecurity training
Adopts Senate provision. [Sec. 14113].
programs in planning, preparedness and
response for food science professionals/
veterinarians. Authorizes 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]

---

CRS-184
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Prohibits importation of foot and mouth
Allows explicitly for USDA to conduct
Requires USDA to issue a permit to DHS
Adopts Senate provision, with
disease (FMD) virus, and limits research
FMD (and other hazardous virus)
to possess and work with live foot and
modification. Refers to successor facility
on FMD virus to locations outside of the
research on the U.S. mainland without
FMD virus at the proposed National Bio-
to Plum Island (rather than NBAF
U.S. mainland to lessen the likelihood
issuing itself a permit. Prohibits anyone
and Agro-Defense Facility (NBAF),
specifically), limits issuance of permit to
that an accidental laboratory release of
other than USDA from possessing certain
subject to compliance with USDA rules
one facility. [Sec. 7524]
FMD might reach domestic animals. By
viruses on a USDA-prescribed list, unless
for handling “select agents.” Leaves
statute, USDA must explicitly permit
USDA issues a permit. But the
unchanged the current restrictions on
research on FMD virus to be performed
prohibition would not apply to “select
possession of FMD and other dangerous
on the mainland of the United States, and
agents,” and FMD virus is a select agent.
viruses. [Sec. 11016]
has not yet done so. [21 U.S.C. 113a]
[Sec. 7108]
Sets civil penalties for violations of the
No comparable provision.
Amends civil penalties as follows:
Adopts Senate provision with
Plant Protection Act: $50,000 in the case
$500,000 for each violation adjudicated
modification. No change in statute of
of any individual (civil penalty may not
in a single proceeding; adds a penalty of
limitations, expand scope of penalties,
exceed $1,000 in the case of an initial
$1 million for each violation adjudicated
and clarify subpoena authorities. [Sec.
violation for moving regulated articles
in a single proceeding involving a
10203] Identical changes made to the
not for monetary gain); $250,000 in the
genetically modified organism. Requires
Animal Health Protection Act. [Sec.
case of any other person for each
action on a violation no later than 5 years
11012]
violation; $500,000 for all violations
after the date of violation. [Sec. 11017]
adjudicated in a single proceeding; or
twice the gross gain or gross loss for any
violation, forgery, counterfeiting,
unauthorized use, etc. [7 U.S.C. 7734(b)]
No comparable provision.
No comparable provision.
Requires a DHS report on regulations for
Adopts Senate provision with
the possession of propane in certain
modification. [Sec. 14206]
quantities, including number of facilities,
alternative security programs, and
compliance costs. [Sec. 11070]
Food Safety Commission
Sec. 10807 of the Farm Security and
No comparable provision.
Establishes a Congressional Bipartisan
Deletes Senate provision.
Rural Investment Act of 2002 (P.L. 107-
Food Safety Commission to study and
171) established a 15-member Food
make recommendations to modernize
Safety Commission appointed by the
food safety programs, including
President to make recommendations to
organizational and resource requirements
enhance the U.S. food safety system.
emphasizing prevention and to be based
Provision not implemented. [21 U.S.C.
on risk assessment and best-available
341 note]
science. Specifies membership
requirements, meeting procedures and

---

CRS-185
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
timetables, and other reporting aspects.
[Sec. 11060] Requires the President to
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
No comparable provision.
Prohibits FDA from issuing a final risk
Deletes Senate provision.
not introduce meat and milk from cloned
assessment and lifting the voluntary
animals and offspring until it completes a
moratorium until completion of newly
final risk assessment and guidance on
mandated National Academy of Sciences
their safety. FDA published the final risk
and USDA studies, respectively, on the
assessment/guidance on 1/15/08; USDA
safety and on the market impacts of
has asked that the moratorium on cloned
introducing products from cloned
animals (but not offspring) continue until
animals. [Sec. 7507]
markets are educated on safety.
Invasive Species
A number of federal agencies, including
No comparable provision.
Sets forth new requirements to require
Deletes Senate provision.
USDA, have statutory responsibilities
cooperation among federal agencies and
aimed at preventing the introduction of
specifically Hawaii to prevent/control the
and controlling invasive species.
spread of invasive species in the state;
establishes expedited procedures for
Hawaii to seek federal approval to adopt
restrictions. Authorizes appropriations of
such sums as necessary (FY2008-12).
[Sec. 11063]
USDA is authorized under several
No comparable provision.
Clarifies that USDA may provide funds
Deletes Senate provision.
authorities to provide financial assistance
on an emergency basis to assist states in
to eradicate outbreaks of invasive pests
combating invasive pest and disease
and diseases, including on an emergency
outbreaks for any appropriate period of
basis.
years after the date of initial detection, as
determined by USDA. [Sec. 11078]

---

CRS-186
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
The Plant Protection Act (PPA) [7 U.S.C.
No comparable provision.
Establishes a revolving loan fund for
Adopts Senate provision with changes to
7701 et seq.] authorizes USDA’s Animal
eligible local governments to borrow up
replace the term “invasive species” with
and Plant Health Inspection Service
to $5 million (at 2% interest), to finance
the term “pest and disease.” Moves
(APHIS) to cooperate with states,
purchases of equipment to monitor,
provision to Title X (Horticulture and
localities and others to prevent the spread
remove, dispose of and replace infested
Organic Agriculture). [Sec. 10205]
of and eradicate invasive pests and
trees within their jurisdictions; spells out
Generally adopts Senate language on
diseases, some which are affecting trees
repayment terms. Authorizes
cooperative agreements, also moving the
in urban areas, including the Asian
appropriations of such sums as necessary
provision to Title X. [Sec. 10206]
Longhorned Beetle and the Emerald Ash
[Sec. 11090] Requires USDA, in
Borer.
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
Amends the AWA to prohibit use of live
No comparable provision on medical
Increases maximum fines for AWA
Animal Welfare Act (AWA) as amended
animals for marketing medical devices.
marketing.
violations from $2,500 to $10,000 per
[7 U.S.C. 2131 et seq.], which is intended
Increases the cap for AWA violations to
violation. Deletes House provision on
to ensure the humane treatment of
$10,000 per violation, and specifies that
medical device marketing. [Sec. 14214]
research animals, bred for commercial
each day, each violation, and each animal
sale, exhibited to the public, or
subject to a violation be considered a
commercially transported; and to prevent
separate offense, among other things.
animal fighting activities. Authorizes
[Sec. 11316]
fines of up to $2,500 per violation; each
violation and each day is considered a
separate offense.
Sec. 7 of the AWA prohibits research
Replaces Sec. 7 with new language on
Same as the House provision with an
Directs USDA to review “any
facilities from buying dogs or cats except
the definition of a person regulated under
additional provision directing that use of
independent reviews by a nationally
from certain persons regulated under the
this section, and on permissible sources
random source dogs and cats from “Class
recognized panel of experts” on Class B
AWA.
of dogs and cats for research facilities.
B dealers” is to be phased out within 5
use by researchers, and to report on any
Introduces an additional penalty of
years of enactment. [Sec. 11079]
recommendations applying to USDA.
$1,000 for each violation of this section
[Sec. 14216]
of the AWA. [Sec. 11317]
Sec. 26 of the AWA spells out a series of
No comparable provisions on animal
Amends the AWA to strengthen
Animal fighting provisions generally
prohibited acts related to animal fighting
fighting or commercial importation of
prohibitions on dog and other animal
reflect Senate language. [Sec. 14207]
and establishes penalties for violations.
young dogs.
fighting activities; defines a dog fighting
Dog importation provisions generally
[18 U.S.C. 49] Enables the federal
venture; and appears to expand who can
reflect Senate language, with additional

---

CRS-187
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
government to collect costs incurred for
collect for costs of care of seized animals.
limited exceptions for those imported
caring for seized animals. No
Increases the maximum imprisonment
into Hawaii. [Sec. 14210]
comparable AWA provision on
from 3 to 5 years. [Sec. 11076]
importation of young dogs.
Amends the AWA to require HHS and
USDA regulations prohibiting importing,
for resale, unless they are at least 6
months of age, in good health, and have
all necessary vaccinations (exemptions
for research or veterinary treatment).
[Sec. 3205]
Other APHIS-Related Provisions
FDA since 1975 has banned the sale of
No comparable provision.
Requires FDA to study the prevalence of
Deletes Senate provision.
pet turtles under four inches long due to
Salmonella in legally-sold reptiles and
health concerns (i.e., the risk of children
amphibians in the U.S. compared with
getting Salmonella infections from them).
the level in pet turtles. If prevalence is
Does not ban sale of other pet reptiles
similar, USDA is to take additional
and amphibians. [21 C.F.R. 1240.62 (b)]
specified actions. [Secs. 11101-11103]
USDA’s Animal and Plant Health
Requires USDA to coordinate fruit and
No comparable provision.
Adopts House language with changes to
Inspection Service (APHIS) operates a
vegetable market analyses with its
include a provision, in the Technical
program (other legislative authority) that
Foreign Agricultural Service and with the
Assistance for Specialty Crops program
provides certification as a service to U.S.
private sector; requires USDA to list on
(in Title III), requiring an annual USDA
exporters desiring to meet foreign
the Internet the status of all plant-related
report on sanitary and phyto-sanitary
sanitary and phytosanitary (SPS)
export petitions, and provide SPS-related
trade barriers. [Sec. 3203]
requirements.
information. [Sec. 11307]
The 1990 farm bill, as amended,
No comparable provision.
Exempts, from AQI user fees, trucks
Deletes Senate provision.
authorizes APHIS to collect agricultural
transiting Canada between Alaska and
quarantine inspection (AQI) user fees for
the lower 48 states (and vice versa), so
both APHIS and DHS’s Customs and
long as they remain sealed when in
Border Protection services in connection
Canada. [Sec. 11080]
with preclearance 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
No comparable provision.
Sense of Senate that USDA’s Wildlife
Deletes Senate provision.
program is charged with helping to
Services program should not compete
alleviate wildlife damage to agricultural,
with or condone competition with the

---

CRS-188
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
urban, and natural resources. [7 U.S.C.
private sector in managing nuisance birds
426]
in urban areas [Sec. 11085]
Miscellaneous Provision Related to Payments to Deceased Farmers — see section on Commodity Programs (above)
Miscellaneous Rural Development Provisions
No comparable provision.
No comparable provision.
Amends the Con Act to authorize a new
Adopts Senate provision with
Northern Border Economic Development
modifications to authorize the Northern
Commission (VT, NY, NH, and ME);
Border Development Commission.
authorizes appropriations of $40 million
Authorizes 3 additional regional
annually (FY2008-12). [Sec. 6034]
development commissions: Southeast
Crescent Commission, the Southwest
Border Regional Commission. Provides
each with $30 million each FY2002-
2012. [ Sec. 14217]
No comparable provision.
Prohibits closure or relocation of
Prohibits any expenditures to close
Adopts the House provision with
USDA’s Farm Service Agency (FSA),
“critical access county FSA offices”
modification. Extends prohibition to two
Natural Resources Conservation Service,
through 2012, unless approved by
years after enactment; allows exceptions
and Rural Development Agency county
Congress. [Sec. 11071]
and requires notice. [Sec. 14212]
offices until one year after enactment.
[Sec. 11306]
No comparable provision.
Authorizes USDA to make grants to
Similar to the House bill, except it
Adopts Senate provision.
reduce the availability of anhydrous
provides that a grant can be used either
[Sec. 14203]
ammonia to curtail the production of
for a physical lock or a chemical
methamphetamine (up to $15 million for)
substance. [Sec. 11062]
FY2008-12. [Sec. 11308]
No comparable provision.
Authorizes USDA to make available to
No comparable provision.
Adopts House provision with amendment
rural areas any excess and surplus USDA
to ensure that the activities authorized
computers. [Sec. 11303]
under this section are in addition to, and
would not replace, activities conducted
under other existing authorities of USDA
on property disposal. [Sec. 14220]
No comparable provision.
No comparable provision.
Provides emergency grants to
Deletes Senate provision.
community-based agencies to assist
low-income migrant and seasonal
farmworkers (for use in transportation,

---

CRS-189
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
food, clothing, housing). [Sec. 11061]
No comparable provision.
Sense of Congress regarding “food
No comparable provision.
Adopts Senate provision with an
deserts” or geographically isolated
amendment to move the provision to
neighborhoods/communities with limited
Title VII (Research), to define the term
or no access to major grocery stores.
“food desert,” and to include an
Directs USDA, in coordination with other
authorization of appropriations for the
agencies/nonprofits, to conduct a national
national assessment. [Sec. 7527]
assessment. [Sec. 11311]
No comparable provision.
No comparable provision.
Authorizes USDA to make grants to
Adopts Senate provision with an
community -based organizations to
amendment to clarify the eligible services
improve the supply, stability, safety, and
that may be provided with grant funds
training of farmworkers.
under the program. Specifies assistance
[Sec. 11066]
may be provided to farm-workers who
are citizens or otherwise legally present
in the United States. [Sec. 14204]
No comparable provision.
No comparable provision.
Directs GAO, in consultation with other
Deletes Senate provision.
agencies and organizations to issue a
report on access to health care for
farmers. [Sec. 11074]
Various sections of the Department of
Directs USDA to create a Farmworker
Similar to the House bill, but amends
Adopts Senate provision with an
Agriculture Reorganization Act of 1994
Coordinator (working in consultation
different section of the Department of
amendment to specify the Coordinator
pertain to the reorganization of USDA. [7
with other agencies and organizations) to
Agriculture Reorganization Act of 1994.
shall have responsibility for assisting
U.S.C. 6933; 7 U.S.C. 7014]
assist and support farmworkers and
[Sec. 11059]
farmworkers in becoming producers and
migrant seasonal workers. [Sec.11207]
landowners. [Sec. 14013]
No comparable provision.
No comparable provision.
Directs USDA to conduct a study on the
Deletes Senate provision.
economic impacts of local food systems
and commerce.
[Sec. 11089]
Other Miscellaneous Title Provisions
Provision pertaining to U.S. government
Eliminates the statute of limitations
Similar to the House bill. [Sec. 11069]
Adopts House provision. [Sec. 14219]
claims collected from a person through
applicable to collection of debt by
administrative offset. [31 U.S.C. 3716(e)]
administrative offset. [Sec. 11314]

---

CRS-190
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Allows disclosure of financial
Allow financial institutions to disclose an
Similar to House bill. [Sec. 11068]
Adopts Senate provision. [Sec. 14205]
information in certain circumstances. [12
individual’s financial records to the
U.S.C. 3413]
government to prevent fraud. [Sec.
11310]
No comparable provision.
No comparable provision.
Requires reporting of USDA conference
Adopts the Senate provision, with
expenditures over $10,000. [Sec. 11081]
modification. [Sec. 14208]
No comparable provision.
No comparable provision.
Requires a report on ending childhood
Deletes Senate provision.
hunger in the U.S. by 2013. [Sec. 11082]
No comparable provision.
No comparable provision.
Facilitates use of emergency funds for
Deletes Senate provision.
effects of Kansas tornado. [Sec. 11083]
No comparable provision.
No comparable provision.
Requires a report on USDA programs
Deletes Senate provision. Managers
with poor scores in the Program
statement encourages progress reports.
Assessment Rating Tool (PART). [Sec.
11084]
No comparable provision.
Permanent debarment from participation
No comparable provision.
Adopts House provision with changes.
in USDA programs for fraud. [Sec.
Debarment may be reduced to 10 years.
11304]
Excludes debarment in food assistance
programs. [Sec. 14211]
No comparable provision.
Prohibits discrimination against use of
No comparable provision.
Deletes the House provision.
pesticide in conservation programs. [Sec.
11305]
Authorizes the USDA Graduate School
Prohibits USDA from operating the
No comparable provision.
Adopts House provision with changes.
as a non-appropriated fund
USDA Graduate School after Oct. 1,
Provides for the transition of the USDA
instrumentality. [7 U.S.C. 2279b]
2008. [Sec. 11309]
graduate school to a non-government
entity by Oct. 1, 2009. [Sec. 14213]
No comparable provision.
Requires a study of wastewater
No comparable provision.
Deletes the House provision.
infrastructure near the U.S.-Mexico
border. [Sec. 11313]

---

CRS-191
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
TITLE XV: REVENUE & OFFSETTING COST PROVISIONS
Supplemental Agriculture Disaster Assistance
Congress periodically provides ad-hoc
No comparable provision.
Authorizes a permanent agricultural
Adopts a variation of the Senate
emergency disaster payments to crop and
disaster trust fund that will fund a series
provision. For FY2008-11, five new
livestock growers to supplement income
of disaster programs that provide
disaster programs are authorized and
following a natural disaster. Most
payments to crop and livestock growers
funded through a transfer of 3.08% of
recently, Congress provided emergency
who experience significant production
annual customs receipts. The five new
supplemental assistance for 2005, 2006,
losses in a USDA-declared disaster area.
programs are: 1) Supplemental Revenue
or 2007 production losses. [Sec. 9001 of
For FY2008-12, the program is funded
Assistance Payments (for crops); 2)
P.L. 110-28, as amended by P.L.
through a transfer of 3.34% of annual
Livestock Indemnity Payments; 3)
110-161].
customs receipts from the U.S. Treasury.
Livestock Forage Disaster Program; 4)
Payments are made under four new
Emergency Assistance for Livestock,
programs: 1) Supplemental Revenue
Honeybees, and Farm-Raised Catfish;
Assistance Payments (for crops); 2)
and 5) Tree Assistance Program.
Livestock Indemnity Payments; 3)
[Sec. 15101]
Emergency Assistance for Livestock,
Honeybees, and Farm-Raised Catfish;
and; 4) Tree Assistance Program. [Sec.
12101]
Sec. 9012 of the U.S. Troop Readiness,
Amends Sec. 9012 by stating that “the
No comparable provision.
No comparable provision.
Veterans’ Care, Katrina Recovery, and
purchase of a Non-insured Assistance
Iraq Accountability Appropriations Act
Program (NAP) policy shall not be a
of 2007 (P.L. 110-28) required that “in
requirement to receive any Federal
carrying out crop disaster and livestock
livestock disaster assistance.” [Sec.
assistance in this title, the Secretary shall
11015]
require forage producers to have
participated in a crop insurance pilot
Note: The House farm bill was passed
program or the Non-Insured Crop
prior to enactment of P.L. 110-80, which
Disaster Assistance Program (NAP)
removed the crop insurance or NAP
during the crop year for which
purchase requirement for forage
compensation is received.”
producers.
In August 2007, separate legislation was
enacted (P.L. 110-80), removing this
requirement of forage producers.

---

CRS-192
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Customs User Fees
Extension of custom user fees. Sec.
No comparable provision.
No comparable provision.
Amends Section 13031 of the
13031 of the Consolidated Omnibus
Consolidated Omnibus Budget
Budget Reconciliation Act of 1985
Reconciliation Act of 1985 to extend the
(“COBRA”) authorizes the Secretary of
passenger and conveyance processing
the Treasury to collect certain customs
fees through September 30, 2017, and
services fees. Customs user fees include
extend the merchandise processing fees
passenger and conveyance processing
through November 14, 2017. [Sec.
fees and merchandise processing fees.
15201]
Congress has authorized collection of the
passenger and conveyance processing
fees through December 27, 2014. The
authorization for the collection of the
merchandise processing fees is through
December 27, 2014.
Other Revenue and Tax-Related Provisions
Tax-Treaty Withholding Tax Rates.
Provides in IRC Section 894 that if a U.S.
No comparable provision.
Deletes House provision.
The U.S. Internal Revenue Code (IRC)
subsidiary makes a deductible payment to
applies a 30% withholding tax to interest,
a foreign corporation that has a common
dividends, and similar “fixed and
foreign parent, and the withholding tax
determinable” income payments made to
rate on the payment would be higher if
foreign persons/firms residing outside the
the payment were made directly to the
U.S. (nonresident aliens). [IRC Sec. 871]
common parent, the higher rate will be
The tax rate is reciprocally reduced or
applied. [Sec. 12001]
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.
Increases the amount of required
Increases the amount of required
Increases the amount of required
Corporations are required to make
corporate estimated tax payments falling
corporate estimated tax payments falling
corporate estimated tax payments falling
quarterly tax payments generally equal to
in the last quarter of FY2012 to 115.75%
in the last quarter of FY2012 to 121.5%
in the last quarter of FY2012 to 122.25%
a specified percentage of their estimated
of the amount otherwise required (a 1.25
of the otherwise required amount and
of the otherwise required amount and
tax liability for the year. [IRC Sec. 6655]
percentage-point increase over P.L. 110-
reduces firms’ next required payments by
reduces firms’ next required payments by
In 2005, P.L. 109-222 increased the
28) and reduces firms’ next required
a corresponding amount. [Sec. 12506]
a corresponding amount. [Sec. 15202]
amount of estimated tax payments due in
payments by a corresponding amount.
the last quarter of federal FY2012 to
(Note, however, that P.L. 110-142,
106.25% of the amount otherwise due
passed after the House approved H.R.
and reduced firms’ next required
2419, increased the required payments by

---

CRS-193
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
payments by a corresponding amount.
1.50 percentage points, rendering the
The provision shifted a portion of
House-passed provision inapplicable.
payments forward from FY2013 to
[Sec. 13003]
FY2012. In 2007, P.L. 110-28 increased
the amount thus shifted to 114.5% of the
amount otherwise required.
Increase in information return
No comparable provision.
Increases penalties for failure to file
Deletes Senate provision.
penalties. The tax code requires
information returns. [Sec. 12508]
information returns to be filed that 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
No comparable provision.
“Clarifies” the economic substance
Deletes this provision.
“economic substance” doctrine is a
doctrine by integrating a part of it into
judicial doctrine that has developed in
the IRC (generally Section 7701, relating
regard to tax shelter cases. In general
to definitions). In cases where a court
terms, it denies the use of tax benefits in
determines the economic substance
transactions not having an economic
doctrine is relevant, applies a two-part
substance not related to taxes.
(“conjunctive”) test to a 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:
Other miscellaneous provision:
—
Denies deduction for certain fines
—
Deletes Senate provisions.
and penalties. [Sec. 12507]
—
Modifies penalties for failure to file
partnership returns. [Sec. 12511]
—
Denies deduction for interest paid
in certain tax-motivated
transactions. [Sec. 12523]

---

CRS-194
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Tax-Related Conservation Provisions
Conservation Reserve Tax Credit.
No comparable provision.
Creates a new elective conservation
Deletes Senate provision.
USDA provides a conservation reserve
reserve tax credit that can be claimed in
program under which farmers receive
place of payments received under the
annual federal payments for contracting
conservation reserve program.
to establish resource-conserving covers
[Sec. 12201]
on farmland (Title XII of the 1985 farm
bill). There is no related tax credit,
although taxpayers may deduct charitable
donations made for conservation
purposes under IRC Sec. 170.
Application of Self-Employment
No comparable provision.
Exempts conservation reserve program
Exempts conservation reserve program
Contributions Act (SECA) social
payments received by persons receiving
payments received by persons receiving
security tax to conservation reserve
social security benefits from SECA tax.
social security benefits from SECA tax.
payments. In December 2006, the
[Sec. 12202]
[Sec. 15301]
Internal 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
No comparable provision.
Makes permanent the temporary
Two year extension of the temporary
conservation purposes. Deductible
relaxation of the deduction cap for
relaxation of the deduction cap for
contributions of capital gain property are
contributions of conservation property.
contributions of conservation property.
limited by IRC Sec. 170 to generally
[Sec. 12203]
[Sec. 15302]
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
Deletes Senate provision.
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-195
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Deductions for endangered species
No comparable provision.
Permits farmers to treat outlays made
Adopts Senate provision, except that
recovery expenditures. No provision,
pursuant to the Endangered Species Act
provision is effective for expenditures
but under IRC Sec. 175, farmers are
in the same manner as soil or water
paid or incurred after December 31,
permitted to “expense” (deduct
conservation outlays (i.e., the outlays can
2008. [Sec. 15303]
immediately) outlays for soil or water
be expensed). [Sec. 12205]
conservation rather than treating the
outlays as capital expenditures — a
treatment that would generally delay the
deductions.
Tax-exempt bonds for forest
No comparable provision.
Establishes (in limited amounts) a new
Deletes Senate provision.
conservation. In general, interest on
type of tax-exempt private activity bond
bonds issued by state and local
for bonds whose proceeds are used to
governments is tax-exempt if used for
finance forest conservation. [Sec. 12211]
governmental purposes (IRC Section
103). However, not all state 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
No comparable provision.
Adds new Section 1203 to the Internal
Redesigns Section 1201 of the Internal
and timber real estate investment trust
Revenue Code, which permits taxpayers
Revenue Code, which reduces the rate of
(REIT) provisions. For tax years
to elect to deduct 60% of timber gain
gain on qualified timber gains of
beginning before 2011, individuals’ long
from taxable income. (The remaining
corporations to 15%. REIT provisions
term capital gain is taxed at reduced rates
40% would be taxed at ordinary-income
follow the Senate amendment.
(generally, 15%; section 1 of the tax
rates.) Also includes several provisions
[Sec. 15311-15315]
code). Taxpayers are permitted to treat
affecting timber REITs, including
the cutting of timber as a sale eligible for
clarification that timber gain is qualified
capital gains treatment. [IRC Sec. 631]
real estate income for a REIT.
REITs are specially-defined “pass
[Sec. 12212-12217]
through 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.

---

CRS-196
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provisions.
No comparable provisions.
Other miscellaneous provisions:
Deletes Senate provisions.
— Exclusion for programs and
payments for fish, wildlife, forest
protection, and pest management.
[Sec. 12206]
—
Elective tax credits for payments
under conservation programs [Sec.
12207]
Tax-Related Energy Provisions
Credit for cellulosic fuel production.
No comparable provision.
Provides a fourth tax credit under section
Provides a fourth tax credit under section
IRC Sec. 40 provides an alcohol fuels 3-
40 for small producers who produce
40, the Cellulosic Biofuel Producer
part credit consisting of: (1) a 10¢ per
alcohol fuel from cellulosic materials
Credit. The credit is $1.01 per gallon
gallon small-producer tax credit for
(e.g., corn stover or switchgrass). The
less the amount of small-producer
ethanol production; (2) a 60¢ per gallon
credit is $1.25 per gallon less the amount
ethanol credit claimed and the alcohol
tax credit for alcohol used in a mixture of
of small-producer ethanol credit claimed
mixture credit claimed for ethanol.
alcohol and gasoline or other fuels; and
and the alcohol mixture credit claimed
[Sec. 15321]
(3) a 60¢ per gallon credit for production
for ethanol. [Sec. 12312]
of alcohol that is not used in a mixture.
(The latter two credits are 51¢ per gallon
in the case of ethanol.) The credit is
scheduled to expire at the end of 2010.
Alcohol Fuels Credit. For ethanol, the
No comparable provision.
Reduces the tax credit rate for ethanol
Adopts Senate provision with changes to
rates for the alcohol mixture credit and
credits to 46¢ from 51¢ per gallon.
modify the alcohol credit to reduce the ta
the alcohol credit are 51¢ per gallon
[Sec. 12315]
credit rate for ethanol to 45¢ per gallon.
rather than the 60¢ per gallon rate that
[Sec. 15331]
otherwise applies.
Small-Producer Ethanol Credit. One
No comparable provision.
Extends the small producer ethanol credit
Deletes Senate provision.
component of the 3-part credit is the 10¢
for two years through 2012. [Sec. 12313]
per gallon tax credit for small ethanol

producers. The credit is scheduled to
expire year-end 2010.
As described in the preceding entries,
No comparable provision.
Provides a fourth component of the
Deletes Senate provision.
IRC Sec. 40 provides a three-part tax
alcohol fuels credit consisting of a 10¢
credit for alcohol fuels. There is no
per gallon credit for fossil-free alcohol
comparable provision for a small
fuels. The credit terminates at the end of
producer credit for fossil-free alcohol.
2012. [Sec. 12314]

---

CRS-197
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
Alternative Fuels Excise Tax Credits.
No comparable provision.
Extends the two alternative fuels credits
Deletes Senate provision.
Provides two alternative fuels tax credits
through December 2010 for all fuels
that can be claimed against federal excise
other than hydrogen. [Sec. 12331]
taxes: the alternative 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.
Tax Credits for Biodiesel Fuels.
No comparable provision.
Generally extends the biodiesel fuel
Deletes Senate provision.
IRC Sec. 40A provides income tax
credits and payment provisions for two
credits for biodiesel (scheduled to expire
years (through 2010). The small
at the end of 2008): (1) biodiesel mixture
producer agri-biodiesel credit is extended
credit; (2) biodiesel credit; and (3) the
through 2012. [Sec. 12321]
small producer 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.
No comparable provision.
Extends the renewable diesel fuel
Deletes Senate provision.
Provides a tax incentive of $1.00 per
incentives for two years, through 2010.
gallon for qualified renewable diesel fuel.
It also places a cap on the credit that can
It can be claimed as an excise tax credit
be claimed for co-produced fuel.
[IRC secs. 6426-6427], an income tax
[Sec. 12321]
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:
Other miscellaneous provisions:
—
Wind credit [Sec. 12301]
—
Adopts Senate provision modifying
—
Landowner incentive for electric
the calculation of fuel credits. [Sec.
transmission. [Sec. 12302]
15332]
—
Modified treatment of energy
—
Adopts Senate provision extending
grants/loans. [Sec. 12303]
the temporary duty on ethyl
—
Expansion of depreciation for
alcohol. [Sec. 15333]
biofuel plants. [Sec. 12311]
—
Adopts Senate provision with
—
Modified calculation of fuel
changes to limit the drawback of
credits. [Sec. 12316]
duty on imported ethanol. [Sec.
—
Extension of temporary duty on
15334]
ethyl alcohol. [Sec. 12317]
—
Deletes other Senate provisions.

---

CRS-198
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
—
Limits on drawback of duty on
imported ethanol. [Sec. 12318]
—
Treatment of qualified fuel
mixtures. [Sec. 12322]
—
Extension of credit for installing
alternative fuel refueling property.
[Sec. 12332]
Agricultural Tax Provisions
Limitation on farm losses. No
No comparable provision.
Modifies IRC Section 461 to limit
Adopts Senate provision with changes.
comparable provision, although the tax
deductible farm losses for the year in
Modifies IRS Section 461 to limit, for
code’s passive activity rules [IRC Sec.
which losses are incurred to $200,000 in
taxpayer other than C Corporations,
469] may limit farm losses where the
cases where the taxpayer receives
deductible farm losses for the year in
taxpayer does not materially participate
Agriculture Program Payments or CCC
which losses are incurred to the greater of
in the farm business. Section 461
loans. [Sec. 12501]
$300,000 ($150,000 for taxpayers
contains special rules governing when
electing married filing separate status) or
deductions can be claimed.
the taxpayer’s total net farm income over
the preceding 5 years in cases where the
taxpayer receives Agriculture Program
Payments or CCC loans. [Sec. 15351]
Optional methods for self-employment
No comparable provisions.
For the self-employment tax, modifies
Adopts Senate provision increasing and
tax. When farmers have low net income or
the farm optional method so that electing
indexing dollar threshold for computing
losses from farming, they may use one of
taxpayers may be eligible to secure four
net earnings from self-employment under
two optional methods for calculating net
credits of Social Security benefit
the optional methods. [Sec. 15352]
earnings from self-employment. This can
coverage each taxable year by increasing
help them earn the quarters of coverage
and indexing the thresholds. The
necessary to qualify for Social Security
provision makes a similar modification to
benefits. Over time, the number of
the nonfarm optional method. [Sec.
quarters of coverage earned under the
12502]
optional method has been reduced by
inflation. The optional methods are: (1)
the farm optional method; and (2) the
nonfarm optional method. [IRC Sec.
1402(a)]
Limitation on tax deferral for like-kind
No comparable provision.
Denies non-recognition treatment for
Deletes Senate provision.
exchanges. No gain or loss is recognized
like-kind exchanges that include
if property used in a trade or business is
unimproved real estate in cases where the
exchanged for property of a like kind
owner receives Agriculture Program

---

CRS-199
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
used in a trade or business. [IRC Section
Payments or CCC loans. [Sec. 12504]
1031].
Installment Sale Rules for Farm
No comparable provision.
Repeals the immediate recognition of
Deletes Senate provision.
Property. Taxpayers in some cases are
recapture income for sales of single-
permitted to recognize income from
purpose agricultural or horticultural
installment sales gradually, as income is
structures (i.e., barns and similar farm
actually received. [IRC Sec. 453]
buildings). [Sec. 12402]
Separately, 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] 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
No comparable provision.
Creates a new type of tax credit bond
Deletes Senate provision.
qualified rural infrastructure projects.
(rural renaissance bonds) under new
In general, interest on bonds issued by
Section 54A of the tax code for
state/local governments is tax-exempt if
investment in certain rural projects,
used for governmental purposes. [IRC
generally including utilities programs,
Sec. 103] Not all state and local bonds
distance learning or telemedicine
used to finance private activities are tax
projects, electric programs, rural
exempt; private activity bonds are subject
telephone programs, broadband access
to certain restrictions and are subject to
programs, and rural community facility
caps. An additional type of tax-favored
programs. The amount of such bonds
bond are “tax credit” bonds, for which
that can be issued is limited to $400
the purchaser can claim a tax credit rather
million. [Sec. 12404]
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].

---

CRS-200
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
No comparable provision.
No comparable provision.
Creates a new tax credit under new IRC
Deletes Senate provision.
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
No comparable provision.
Shortens the recovery period for farm
Deletes Senate provision.
for certain farm machinery/equip-
machinery and equipment to 5 years from
ment. Federal tax rules (generally IRC
10 years. The shortened recovery period
Sec. 167 and related regulations) specify
applies only to assets placed in service
the rules regarding income tax deductions
before 2010. [Sec. 12407]
for 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).
Rules generally assign a recovery period
of 10 years to farm machinery.
Reduced depreciation recovery period
No comparable provisions.
Shortens the recovery period for seven-
Adopts Senate provision, except that the
for all race horses. Generally assigns a
year race horses to three-years. [Sec.
provision applies to any race horse that is
recovery period of three-years to any race
12509(a)]
two years old or younger at the time it is
horse that is more than two years old at
placed in service after December 31,
the time it is placed in service and a
2008 and before January 1, 2014.
seven-year recovery period is assigned to
[Sec. 15344]
any race horse that is two years old or
younger at the time it is placed in service.
[IRC Sec. 168]
“Aggie” bonds. Qualified small issue
No comparable provisions.
Increase loan limit for aggie bonds from
Adopts Senate provision to increase loan
bonds up to $250,000, known as “aggie
$250,000 to $450,000 and adjust the limit
limit for aggie bonds. [Sec. 15341]
bonds,” are tax-exempt bonds issued by
for inflation after 2008. [Sec. 12401]
State and local governments to finance
private business manufacturing facilities or
the acquisition of land and equipment by
certain first-time farmers. [IRC Sec. 144]
No comparable provision.
No comparable provisions.
Other miscellaneous provisions:
Other miscellaneous provisions:
—
Allow IRC Sec. 1031 like-kind
—
Adopts Senate provision on the
exchange treatment involving
like-kind exchange treatment

---

CRS-201
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
mutual ditch, reservoir, or
involving mutual ditch, reservoir,
irrigation stock. [Sec. 12403]
or irrigation stock. [Sec. 15342]
—
Create an agricultural chemicals
—
Adopts Senate provision creating
security tax credit. A 30% tax
the agriculture business security tax
credit, subject to limits, for
credit. [Sec. 15343]
qualified chemical security
—
Deletes other Senate provisions.
expenses. [Sec. 12405]
—
Expensing of broadband internet
access. [Sec. 12408]
—
Tax credit for energy-efficient
motors. [Sec. 12409]
Other Provisions
Key provisions covering income tax
No comparable provision.
Provides several tax relief measures for
Adopts Senate provision. [Sec. 15345]
relief in times of disaster: casualty loss
areas in Kansas affected by the tornados
deductions [IRC Sec. 165]; deferral of
of May 2007. Among the proposals are
gain from involuntary conversions [IRC
suspension of limits on certain casualty
Sec. 1231]; delayed filing deadlines;
losses and relaxation of time
abatement of fines/fees (P.L. 109-73);
requirements in the case of involuntary
and tax exemption for certain disaster
conversions. [Sec. 12701]
relief payments. [IRC Sec. 139]
No comparable provisions.
No comparable provisions.
Other miscellaneous provisions:
Adopts some provisions and deletes
— Income treatment of Exxon Valdez
others:
litigation. [Sec. 12801]
—
Adopts Senate provision, with
—
Extension of special rule for
modifications to the tax treatment
charitable contributions of food
for forestry con-servation bonds.
inventory. [Sec. 12802]
[Sec. 15316]
—
Increase exclusion amount for
—
Adopts Senate provision modifying
mileage reimbursements to
the awards authority for advanced
volunteers. [Sec. 12803]
coal-based electricity credits and
—
Technical correction for treatment
gasification credits. [Sec. 15346]
of stock basis in S corporations
—
Deletes other Senate provisions.
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.

---

CRS-202
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
[Sec. 12806]
—
Modifies awards authority for
advanced coal-based electricity
credits and gasification credits.
[Sec. 12807]
—
Tax treatment for forestry con-
servation bonds. [Sec. 12808]
Address deficiencies in the Haitian
No comparable provisions.
No comparable provisions.
Establishes the Haitian Hemispheric
Hemispheric Opportunity through
Opportunity through Partnership
Partnership Encouragement Act of 2006
Encouragement Act of 2008 (Hope II) to
(HOPE I).
help Haitian industry attract new
investment and create immediate jobs,
generate income for workers to cover
increased food costs and pay for other
necessities, and continue to provide
incentives to encourage the use of inputs
manufactured by U.S. companies. [Sec.
15401-15407 and 15410-15411]
Extend The Caribbean Basin Economic
No comparable provisions.
No comparable provisions.
Extends The Caribbean Basin Economic
Recovery Act, as amended by the United
Recovery Act, as amended by the United
States-Caribbean Basin Trade Partnership
States-Caribbean Basin Trade Partnership
Act (CBTPA).
Act (CBTPA) through September 30,
2010. [Sec. 15408-15409]
Define “commercially interchange-
No comparable provisions.
No comparable provisions.
The conference agreement amends Sec.
able” in Section 313(j)(2) of the Tariff
313(j)(2) of the Tariff Act of 1930, to
Act of 1930. Sec. 313(j) of the Tariff
provide a standard for what is considered
Act of 1930 provides for unused
to be “commercially interchangeable” for
merchandise drawback. Unused
purposes of unused merchandise
drawback is permitted if imported
drawback for wine. [Sec. 15421]
merchandise is exported or destroyed
within 3 years of import without being
used in the United States. Pursuant to
Sec. 313(j)(2) of the Tariff Act of 1930,
domestic or imported merchandise that is
commercially interchangeable with the
imported merchandise may be substituted
for the imported merchandise and
drawback granted on the export or

---

CRS-203
SENATE-PASSED SUBSTITUTE
ENACTED 2008 FARM BILL
PRIOR LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
AMENDMENT (H.R. 2419)
(P.L. 110-246)
destruction of the substituted
merchandise within the 3-year period
beginning on the date of importation.
‘’Commercially interchangeable”,
however, is not defined.

---

CRS-204
Appendix: 2007-2008 Farm Bill Debate Timeline
May 2005 — One of the first comprehensive sets of recommendations for the next farm bill
is released by a major agricultural trade association, followed by proposal by other
major interest groups and organizations (both traditional farm and nonfarm groups).
July 7, 2005 — U.S. Department of Agriculture (USDA) begins its series of 52 farm bill
forums starting in Nashville, TN, and covering nearly all states (excl. Louisiana and
Mississippi due to Hurricane Katrina.).
February 6, 2006 — House Committee on Agriculture begins farm bill listening field
hearings in Fayetteville, NC, and other hearings to review federal farm policy.
June 23, 2006 — Senate Agriculture, Nutrition, and Forestry Committee begins regional
farm bill hearings in Albany, GA, and other hearings to review federal farm policy.
January 2007 — House and Senate Agriculture Committees begin hearings on selected
farm bill topics.
January 31, 2007 — USDA releases its farm bill recommendations, covering each title of
the current law.
February 2007 — One of the first comprehensive bills recommending broad changes to
current law is introduced in the Senate, followed by other broad-based bill introduced
by others in the House and Senate.
March 21, 2007 — Congressional Budget Office (CBO) releases its multi-year March
baseline estimate of spending, providing the starting point for the budget allocation for
the new farm bill.
March 21, 2007 — House Committee on Agriculture begins subcommittee markup on
individual titles of the farm bill, proceeding through June 19, 2007.
May 17, 2007 — Congress approves the FY2008 budget resolution, adopting the baseline
budget as the fiscal parameters and including a $20 billion reserve for the new farm
bill.
July 17, 2007 — House Committee on Agriculture begins full committee markup on
individual titles of the farm bill (H.R. 2419), proceeding through July 19, 2007.
July 26-27, 2007 — Floor debate and passage of H.R. 2419 in the House.
October 4, 2007 — Senate Finance Committee approves a bill (S. 2242) that would create
new tax credits and a disaster trust fund for farmers, as part of the 2002 farm bill
reauthorization.
October 24, 2007 — Senate Agriculture Committee begins full committee markup on
individual titles of the farm bill (S. 2302), proceeding through October 25, 2007.
November 5, 2007 — Senate floor debate begins, with the Senate Agriculture Committee
Chairman offering an amended Senate bill as a substitute (S.Amdt. 3500) to H.R.
2419. The bill includes provisions in S. 2242.

---

CRS-205
November 16, 2007 — Further action in the Senate is delayed when a key vote in the
Senate fails to invoke cloture on the Senate version of the farm bill.
December 14, 2007 — Floor debate and passage of the Senate version of the farm bill,
which was offered as a substitute to H.R. 2419.
December 26, 2007 — The Consolidated Appropriations Act for FY2008 (P.L. 110-161)
is signed into law and extends certain expiring provisions of the 2002 farm bill until
March 15, 2008.
February 4, 2008 — Senate appoints conferees.
March 12, 2008 — Congress approves a one-month extension (P.L. 110-196) that extends
current law through April 18, 2008.
April 9, 2008 — House appoints conferees.
April 17, 2008 — Congress approves a one-week extension (P.L. 110-200) that extends
current law through April 25, 2008.
April 24, 2008 — Congress approves a one-week extension (P.L. 110-205) that extends
current law through May 2, 2008.
May 1, 2008 — Congress approves a two-week extension (P.L. 110-208) that extends
current law through May 16, 2008.
May 8, 2008 — House and Senate farm bill conferees announce details of the completed
farm bill conference agreement. The Administration announces its intention to veto
the legislation in its present form.
May 14, 2008 — The House passes the conference agreement (H.R. 2419, the Food,
Conservation, and Energy Act of 2008) by a vote of 318-106. Both the House and
Senate pass, by voice vote, a one-week extension (P.L. 110-208) to extend current law
through May 23, 2008, or until the 2008 farm bill, H.R. 2419, is enacted.
May 15, 2008 — The Senate passes the conference agreement by a vote of 81-15.
May 21, 2008 — The Bush Administration vetoes the legislation.
May 21, 2008 — The House votes to override the veto of H.R. 2419 by a vote of 316-108.
However, it is discovered that an enrolling error resulted in one title of the bill (Title
III, Trade) being omitted from the vetoed version that was sent to the White House.
May 22, 2008 — The Senate votes to override the veto of H.R. 2419 by a vote of 82-13.
The conference bill became law on May 22, 2008 (P.L. 110-234), but does not contain
one of the 15 titles, Title III (Trade). The House passes H.R. 6124, a new bill
containing 15 farm bill titles.

June 5, 2008 — The Senate passes H.R. 6124 with all original 15 farm bill titles.

June 18, 2008 — The President vetoes H.R. 6124. Both the House (80-14) and the Senate
(317-109) vote to override the veto and the bill becomes law (P.L. 110-246).

---