What Is the Farm Bill?
Renée Johnson
Specialist in Agricultural Policy
March 12, 2014
Congressional Research Service
7-5700
www.crs.gov
RS22131
What Is the Farm Bill?
Summary
The farm bill is an omnibus, multi-year piece of authorizing legislation that governs an array of
agricultural and food programs. Titles in the most recent farm bill encompassed farm commodity
price and income supports, farm credit, trade, agricultural conservation, research, rural
development, bioenergy, foreign food aid, and domestic nutrition assistance. Although
agricultural policies sometimes are created and changed by freestanding legislation or as part of
other major laws, the farm bill provides a predictable opportunity for policy makers to
comprehensively and periodically address agricultural and food issues. The farm bill is renewed
about every five years.
The Agricultural Act of 2014 (P.L. 113-79) is the most recent omnibus farm bill, and was enacted
into law in February 2014. It succeeded the Food, Conservation, and Energy Act of 2008 (P.L.
110-246). The 2014 farm bill contains 12 titles encompassing commodity price and income
supports, farm credit, trade, agricultural conservation, research, rural development, energy, and
foreign and domestic food programs, among other programs. Provisions in the 2014 farm bill
reshape the structure of farm commodity support, expand crop insurance coverage, consolidate
conservation programs, reauthorize and revise nutrition assistance, and extend authority to
appropriate funds for many U.S. Department of Agriculture (USDA) discretionary programs
through FY2018.
The Congressional Budget Office (CBO) estimates the total cost of mandatory programs at $489
billion over the next five years (FY2014-FY2018). This estimated cost does not include the cost
of discretionary programs that are subject to appropriations. Of the total estimated mandatory
outlays, $391 billion is for nutrition assistance and $98 billion is mostly geared toward agriculture
production. Within the agriculture portion, crop insurance outlays are projected to be $41 billion
over the next five years, $28 billion for conservation, and $24 billion for farm commodity
programs. The trade title is projected to spend $1.8 billion over the next five years, horticulture
$0.9 billion, research $0.8 billion, and bioenergy $0.6 billion. Accordingly, the overwhelming
share (99%) of estimated total net mandatory outlays is anticipated for four farm bill titles:
nutrition, crop insurance, conservation, and farm commodity support. Of the projected net
outlays, about 80% is for the Supplemental Nutrition Assistance Program (SNAP, formerly
known as food stamps). Farm commodity support and crop insurance are expected to account for
13% of mandatory program costs, with another 6% of costs in USDA conservation programs.
Programs in all other farm bill titles are expected to account for about 1% of all mandatory
expenditures.
Congressional Research Service
What Is the Farm Bill?
Contents
What Is the Farm Bill? ..................................................................................................................... 1
What Is the Cost? ............................................................................................................................. 3
Farm Bill at Enactment .............................................................................................................. 3
Title-by-Title Summaries ................................................................................................................. 6
Title I: Commodity Programs .................................................................................................... 6
Title II: Conservation ................................................................................................................. 7
Title III: Trade ........................................................................................................................... 7
Title IV: Nutrition ...................................................................................................................... 8
Title V: Credit ............................................................................................................................ 8
Title VI: Rural Development ..................................................................................................... 9
Title VII: Research .................................................................................................................... 9
Title VIII: Forestry .................................................................................................................. 10
Title IX: Energy ....................................................................................................................... 10
Title X: Horticulture and Organic Agriculture ........................................................................ 10
Title XI: Crop Insurance .......................................................................................................... 11
Title XII: Miscellaneous .......................................................................................................... 11
Figures
Figure 1. Selected Important Dates for U.S. Farm Bill Policy and Related Laws ........................... 4
Figure 2. Projected Outlays in the 2014 Farm Bill .......................................................................... 5
Tables
Table 1. 2014 Farm Bill Budget: Baseline, Scores, and Projected Outlays, by Title ....................... 5
Contacts
Author Contact Information........................................................................................................... 12
Congressional Research Service
What Is the Farm Bill?
What Is the Farm Bill?
The farm bill is an omnibus, multi-year piece of authorizing legislation that governs an array of
agricultural and food programs. Although agricultural policies sometimes are created and changed
by freestanding legislation or as part of other major laws, the farm bill provides a predictable
opportunity for policy makers to comprehensively and periodically address agricultural and food
issues. The farm bill is renewed about every five years.
Since the 1930s, farm bills traditionally have focused on farm commodity program support for a
handful of staple commodities—corn, soybeans, wheat, cotton, rice, dairy, and sugar. Yet farm
bills have grown in breadth in recent decades. Among the most prominent additions have been
nutrition assistance, conservation, horticulture, and bioenergy programs. Figure 1 provides a
timeline of selected important dates for U.S. farm bill policy and other related laws.1
The omnibus nature of the farm bill can create broad coalitions of support among sometimes
conflicting interests for policies that individually might not survive the legislative process. This
can stir fierce competition for funds. In recent years, more parties have become involved in the
debate, including national farm groups, commodity associations, state organizations, and nutrition
and public health officials, as well as advocacy groups representing conservation, recreation, rural
development, faith-based interests, local food systems, and certified organic production.
The Agricultural Act of 2014 (P.L. 113-79, H.Rept. 113-333), referred to here as the “2014 farm
bill,” is the most recent omnibus farm bill. It was enacted in February 2014 and succeeded the
Food, Conservation, and Energy Act of 2008 (P.L. 110-246, “2008 farm bill”). The 2014 farm bill
contains 12 titles encompassing commodity price and income supports, farm credit, trade,
agricultural conservation, research, rural development, energy, and foreign and domestic food
programs, among other programs.2 (See titles described in text box below.)
Provisions in the 2014 farm bill reshape the structure of farm commodity support, expand crop
insurance coverage, consolidate conservation programs, reauthorize and revise nutrition
assistance, and extend authority to appropriate funds for many U.S. Department of Agriculture
(USDA) discretionary programs through FY2018. USDA reports that implementing the 2014
farm bill over the next few years will require about 150 rulemaking actions, and more than 40
studies and reports.
As the 2008 farm bill was approaching expiration, Congress considered an omnibus farm bill to
reauthorize expiring programs and to establish the direction of agriculture and food policy for the
next several years. Many 2008 farm bill provisions expired in September 2012, but were extended
for an additional year in the American Taxpayer Relief Act of 2012 (P.L. 112-240, the fiscal cliff
bill). However, the one-year extension of the 2008 farm bill did not provide any additional
mandatory funding for 37 programs in the 2008 farm bill without a budget baseline.3 The 112th
Congress began work on a farm bill but did not complete action before the conclusion of the
Congress, requiring new bills to be introduced in the 113th Congress.
1 There have been 17 farm bills since the 1930s (2014, 2008, 2002, 1996, 1990, 1985, 1981, 1977, 1973, 1970, 1965,
1956, 1954, 1949, 1948, 1938, and 1933). Farm bills have become increasingly omnibus in nature since 1973, with the
inclusion of a nutrition title.
2 For more information, see CRS Report R43076, The 2014 Farm Bill (P.L. 113-79): Summary and Side-by-Side.
3 For more information, see CRS Report R41433, Expiring Farm Bill Programs Without a Budget Baseline.
Congressional Research Service
1
What Is the Farm Bill?
The 2014 Farm Bill (P.L. 113-79): Functions and Major Issues, by Title
•
Title I, Commodity Programs: Provides farm payments when crop prices or revenues decline for major
commodity crops, including wheat, corn, soybeans, peanuts, and rice. Includes disaster programs to help
livestock and tree fruit producers manage production losses due to natural disasters. Other support includes
margin insurance for dairy and marketing quotas, minimum price guarantees, and import barriers for sugar.
•
Title II, Conservation: Encourages environmental stewardship of farmlands and improved management
practices through a range of land retirement and/or working lands programs, among other programs geared to
farmland conservation, preservation, and resource protection. Working lands programs include Environmental
Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP). Land retirement programs
include the Conservation Reserve Program (CRP). Other support is provided for in the Agricultural
Conservation Easement Program (ACEP) and the Regional Conservation Partnership Program (RCPP).
•
Title III, Trade: Provides support for U.S. agricultural export programs and international food assistance
programs. Major programs included Market Access Program (MAP) and the primary U.S. food aid program, Food
for Peace, which provides emergency and nonemergency food aid, among other programs. Other provisions
address program changes related to World Trade Organization (WTO) obligations.
•
Title IV, Nutrition: Provides nutrition assistance for low-income households through programs including the
Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) and The Emergency Food
Assistance Program (TEFAP). Also supports the distribution of foods in schools.
•
Title V, Credit: Provides support for federal direct and guaranteed loans to farmers and ranchers, and loan
eligibility rules and policies.
•
Title VI, Rural Development: Supports business and community programs for planning, feasibility
assessments, and coordination activities with other local, state, and federal programs. Programs include rural
development loan, rural infrastructure, economic development, and broadband and telecommunications
development, among other programs.
•
Title VII, Research, Extension, and Related Matters: Supports a wide range of agricultural research and
extension programs that help farmers and ranchers become more efficient, innovative, and productive. Other
types of research programs include biosecurity and response, biotechnology, and organic production.
•
Title VIII, Forestry: Supports forestry management programs run by USDA’s Forest Service.
•
Title IX, Energy: Supports the development of farm and community renewable energy systems through
various programs, including grants, loan guarantees, and procurement assistance initiatives. Provisions cover the
production, marketing, and processing of biofuels and biofuel feedstocks, and research, education, and
demonstration programs.
•
Title X, Horticulture: Supports the production of specialty crops—fruits, vegetables, tree nuts, and
floriculture and ornamental products—through a range of initiatives, including market promotion; plant pest and
disease prevention; and public research; among other initiatives. Also provides assistance to support certified
organic agricultural production.
•
Title XI, Crop Insurance: Enhances coverage of the permanently authorized federal crop insurance program.
New policies include Stacked Income Protection (STAX) for cotton and Supplemental Coverage Option (SCO)
for other crops.
•
Title XII, Miscellaneous: Other types of programs and assistance not covered in other bill titles, including
provisions affecting livestock and poultry production and limited-resource and socially disadvantaged farmers,
among other provisions.
Without a new farm bill or an extension, the authority for some farm programs would expire and
some would cease to operate altogether unless reauthorized; also, new activities under some old
programs might not be initiated—either for lack of program authority or available funding.
Nutrition assistance programs require periodic reauthorization if they are to continue. The farm
commodity programs not only expire, but would revert to permanent law dating back to the
1940s. Many discretionary programs would not have statutory authority to receive appropriations
Congressional Research Service
2
What Is the Farm Bill?
in future years. Other programs have permanent authority and do not need to be reauthorized.
Nonetheless, they might be included in a farm bill to make changes for policy or budgetary
goals.4 Crop insurance is the primary example of a permanently authorized program addressed in
the farm bill.
What Is the Cost?
The farm bill authorizes programs in two spending categories: mandatory and discretionary.
Mandatory programs generally operate as entitlements; the farm bill pays for them using multi-
year budget estimates when the law is enacted. Discretionary programs are authorized for their
scope, but are not funded in the farm bill; they are subject to appropriations. While both types of
programs are important, mandatory programs often dominate the farm bill debate.
Farm Bill at Enactment
At enactment of the 2014 farm bill, the Congressional Budget Office (CBO) estimated the total
cost of mandatory programs would be $489 billion over the next five years (FY2014-FY2018).5
The overwhelming share (99%) of estimated total net outlays is anticipated for four farm bill
titles: nutrition, crop insurance, conservation, and farm commodity support (Figure 2). Of the
projected net outlays, about 80% is for the Supplemental Nutrition Assistance Program (SNAP).
Farm commodity support and crop insurance are expected to account for 13% of mandatory
program costs, with another 6% of costs in USDA conservation programs. Programs in all other
farm bill titles are expected to account for about 1% of all mandatory expenditures.
Of the total estimated mandatory outlays, $391 billion is for nutrition assistance and $98 billion is
mostly geared toward agriculture production.6 Within the agriculture portion, crop insurance
outlays are projected to be $41 billion over the next five years, $28 billion for conservation, and
$24 billion for farm commodity programs. The trade title is projected to spend $1.8 billion over
the next five years, horticulture $0.9 billion, research $0.8 billion, and bioenergy $0.6 billion.7
If the 2008 farm bill had continued, CBO estimated that mandatory outlays would have been
$494 billion for the five-year period FY2014-FY2018.8 Compared to this baseline, the 2014 farm
bill reduces projected spending and the deficit by $5.3 billion (-1.1%) over five years. The net
reduction is composed of some titles receiving more funding, while other titles provide offsets.
The titles for farm commodity subsidies, nutrition, and conservation provide budgetary savings.
The titles for crop insurance, research, bioenergy, horticulture, rural development, trade, forestry,
and miscellaneous items receive additional funding (Table 1).
4 For more information, see CRS Report R42442, Expiration and Extension of the 2008 Farm Bill.
5 CBO cost estimate of the Agricultural Act of 2014, January 28, 2014 (http://www.cbo.gov/publication/45049).
6 The 10-year total projected farm bill cost is $956 billion (FY2014-FY2023), with $756 billion for nutrition and $200
billion for the agriculture portion.
7 More details on the farm bill budget are available in CRS Report R42484, Budget Issues Shaping a Farm Bill in 2013.
8 CBO, “May 2013 Baseline for the 2008 Farm Bill Programs and Provisions, by Title,” unpublished, May 2013. See
also “Updated Budget Projections: Fiscal Years 2013 to 2023,” May 14, 2013, at http://cbo.gov/publication/44172.
Congressional Research Service
3
What Is the Farm Bill?
Figure 1. Selected Important Dates for U.S. Farm Bill Policy and Related Laws
Source: CRS.
Congressional Research Service
4
What Is the Farm Bill?
Figure 2. Projected Outlays in the 2014 Farm Bill
(five-year projected mandatory outlays FY2014-FY2018 in billions of dollars by title)
Source: CRS, using CBO’s 2014 farm bill cost estimates (http://www.cbo.gov/publication/45049).
Table 1. 2014 Farm Bill Budget: Baseline, Scores, and Projected Outlays, by Title
(mandatory outlays in millions of dollars, five-year total FY2014-FY2018)
Projected Outlays
CBO baseline
CBO Score (change to
(Baseline + Score) of
2014 Farm Bill Titles
FY2014-FY2018
baseline) of P.L. 113-79
P.L. 113-79
Share
I Commodities
29,888
-6,332
23,556
4.8%
II Conservation
28,373
-208
28,165
5.8%
III Trade
1,718
+64
1,782
0.4%
IV Nutrition
393,930
-3,280
390,650
79.9%
V Credit
-1,011
+0
-1,011
-0.2%
VI Rural
Dev.
13
+205
218
0.04%
VII Research
111
+689
800
0.2%
VIII Forestry
3
+5
8
0.002%
IX Energy
84
+541
625
0.1%
X Horticulture
536
+338
874
0.2%
XI Crop
Ins.
39,592
+1,828
41,420
8.5%
XII Misc.
(NAP)
705
+839
1,544
0.3%
Total, Direct Spending
493,941
-5,310a 488,631a 100.0%
Source: CRS, using the CBO baseline and 2014 farm bill cost estimates (http://www.cbo.gov/publication/45049).
a. Including changes in revenues, the 5-year net impact on the deficit is an estimated change of -$5.361 billion.
On a 10-year basis, the score is -$16.608 billion, with 10-year projected outlays of $956.4 billion.
Congressional Research Service
5
What Is the Farm Bill?
Title-by-Title Summaries
Following are summaries of the major provisions of each title of the 2014 farm bill. For more
detailed information see CRS Report R43076, The 2014 Farm Bill (P.L. 113-79): Summary and
Side-by-Side, which includes a more detailed summary and also a side-by-side comparison of the
provisions in the final 2014 farm bill, compared to previous law/policy and the House- and
Senate-passed versions of the farm bill.
Title I: Commodity Programs9
Under the enacted 2014 farm bill, farm support for traditional commodity crops—grains,
oilseeds, and cotton—is restructured by eliminating direct payments,10 the counter-cyclical price
(CCP) program, and the Average Crop Revenue Election (ACRE) program.11 Under the 2014
farm bill, producers may choose between the following two programs linked to a decline in either
price or revenue (price times crop yield): (1) Price Loss Coverage or PLC, which retains a
counter-cyclical price program and makes a farm payment when farm price for a covered crop
declines below its “reference price” set in statute; and (2) Agriculture Risk Coverage (ARC),
which retains a revenue-based program, is designed to cover a portion of a farmer’s out-of-pocket
loss (referred to as “shallow loss”) when crop revenues decline. These farm programs are separate
from a producer’s decision to purchase crop insurance. The 2014 farm bill makes significant
changes to U.S. dairy policy by eliminating the dairy product price support program, the Milk
Income Loss Contract (MILC) program, and export subsidies. These are replaced by a new
program, which makes payments to participating dairy producers when the national margin
(average farm price of milk minus an average feed cost ration) falls below a producer-selected
margin. The farm bill does not change the objective and structure of the U.S. sugar program. The
2014 farm bill also sets a $125,000 per person cap on the total of PLC, ARC, marketing loan
gains, and loan deficiency payments. It also makes changes to the eligibility requirement based on
adjusted gross income (AGI), setting a new limit to a single, total AGI limit of $900,000.
The bill retroactively reauthorizes and funds four programs covering livestock and tree assistance,
beginning in FY2012 and continuing without an expiration date. The crop disaster program from
the 2008 farm bill (i.e., Supplemental Revenue Assistance, or SURE) was not reauthorized, but
elements of it are folded into the new ARC program by allowing producers to protect against
farm-level revenue losses. Provisions in other farm bill titles provide disaster benefits to tree fruit
producers who suffered crop losses in 2012, and additional coverage levels are authorized under
the Noninsured Crop Assistance Program (NAP).
9 For more direct assistance regarding commodity crops, contact Dennis Shields (dshields@crs.loc.gov, 7-9051); for
dairy, contact Randy Schnepf (rschnepf@crs.loc,gov, 7-4277); for sugar, contact Remy Jurenas (rjurenas@crs.loc.gov,
7-7281); and for payment limits, contact Jim Monke (jmonke@crs.loc.gov, 7-9664).
10 Since 1996, direct payments have been made to producers and landowners based on historical production of corn,
wheat, soybeans, cotton, rice, peanuts, and other “covered” crops. Cotton producers will receive direct payment
assistance in crop years 2014 and 2015 as they transition to the STAX insurance product (see Title XI, Crop Insurance).
11 For information, see CRS Report R42759, Farm Safety Net Provisions in a 2013 Farm Bill: S. 954 and H.R. 2642.
Congressional Research Service
6
What Is the Farm Bill?
Title II: Conservation12
Prior to the 2014 farm bill, the agricultural conservation portfolio included over 20 conservation
programs. The bill reduces and consolidates the number of conservation programs, and reduces
mandatory funding. It reauthorizes many of the larger existing conservation programs, such as the
Conservation Reserve Program (CRP), the Environmental Quality Incentives Program (EQIP),
and the Conservation Stewardship Program (CSP), and rolled smaller and similar conservation
programs into two new conservation programs—the Agricultural Conservation Easement
Program (ACEP) and the Regional Conservation Partnership Program (RCPP). Previous
conservation easement programs, including programs related to wetlands, grasslands, and
farmland protection, were repealed and consolidated to create ACEP. ACEP retains most of the
program provisions in the previous easement programs by establishing two types of easements:
wetland reserve easements that protect and restore wetlands, and agricultural land easements that
prevent non-agricultural uses on productive farm or grasslands. Previous programs focused on
agricultural water enhancement, and two programs related to the Chesapeake Bay and Great
Lakes, among other programs, were repealed and consolidated into the new RCPP. RCPP will use
partnership agreements with state and local governments, Indian tribes, farmer cooperatives, and
other conservation organizations to leverage federal funding and further conservation on a
regional or watershed scale.
The 2014 farm bill also adds the federally funded portion of crop insurance premiums to the list
of program benefits that could be lost if a producer is found to produce an agricultural commodity
on highly erodible land without implementing an approved conservation plan or qualifying
exemption, or converts a wetland to crop production. This prerequisite, referred to as
conservation compliance, has existed since the 1985 farm bill and previously affected most
USDA farm program benefits, but has excluded crop insurance since 1996.
Title III: Trade13
The 2014 farm bill reauthorizes and amends USDA’s food aid, export market development, and
export credit guarantee programs. The bill reauthorizes all of the international food aid programs,
including the largest, Food for Peace Title II14 (emergency and nonemergency food aid), and also
amends existing food aid law to place greater emphasis on improving the nutritional quality of
food aid products and ensuring that sales of agricultural commodity donations do not disrupt local
markets, among other changes. The bill creates a new local and regional purchase program in
place of the expired local and regional procurement (LRP) pilot program of the 2008 farm bill
and increases the authorized appropriations for the program. The 2014 farm bill also reauthorizes
funding for the Commodity Credit Corporation (CCC) Export Credit Guarantee program and
three other agricultural export market promotion programs, including the Market Access Program
(MAP), which finances promotional activities for both generic and branded U.S. agricultural
products, and the Foreign Market Development Program (FMDP), a generic commodity
promotion program. It also made changes to the credit guarantee program to comply with the
12 For more direct assistance, contact Megan Stubbs (mstubbs@crs.loc.gov, 7-8707). For more information, see CRS
Report R40763, Agricultural Conservation: A Guide to Programs.
13 For more direct assistance regarding international food aid, contact Randy Schnepf (rschnepf@crs.loc,gov, 7-4277);
for agricultural export programs, contact Remy Jurenas (rjurenas@crs.loc.gov, 7-7281).
14 Alternatively referred to as Food for Peace (P.L. 480) Title II.
Congressional Research Service
7
What Is the Farm Bill?
WTO cotton case against the United States won by Brazil, and proposes a plan to reorganize the
trade functions of USDA, including establishing an agency position to coordinate sanitary and
phytosanitary matters and address agricultural non-tariff trade barriers across agencies.
Title IV: Nutrition15
The 2014 farm bill’s nutrition title accounts for 80% of the law’s forecasted spending. The
majority of the law’s Nutrition funding and policies pertain to the Supplemental Nutrition
Assistance Program (SNAP), which provides benefits redeemable for eligible foods at eligible
retailers to eligible, low-income individuals. The bill reauthorizes SNAP and The Emergency
Food Assistance Program (TEFAP, the program that provides USDA foods and federal support to
emergency feeding organizations such as food banks and food pantries), and other related
programs, and is estimated by CBO to reduce related spending.16 The bill retains most of the
eligibility and benefit calculation rules in SNAP. It does, however, amend how Low-Income
Home Energy Assistance Program (LIHEAP) payments are treated in the calculation of SNAP
benefits.17 It includes certain other eligibility disqualifications, including the disqualification of
certain ex-offenders from receiving SNAP benefits if they do not comply with the terms of their
sentence. The law establishes a number of new policies related to the SNAP Employment and
Training (E&T) program, including a pilot project authority and related funding for states to
implement and USDA to evaluate work programs for SNAP participants.18 The bill makes
changes to SNAP law pertaining to retailer authorization and benefit issuance and redemption,
including requiring stores to stock a greater variety of foods and more fresh foods, requiring
retailers to pay for their electronic benefit transfer (EBT) machines, and providing additional
funding for combatting trafficking (the sale of SNAP benefits). It also includes new federal
funding to support organizations that offer bonus incentives for SNAP purchases of fruits and
vegetables (called Food Insecurity Nutrition Incentive grants). The bill also increases funding for
TEFAP. It also includes other changes to SNAP and related programs, including amendments to
the nutrition programs operated by tribes and territories, the Commodity Supplemental Food
Program (CSFP), and the distribution of USDA foods to schools.19
Title V: Credit20
The 2014 farm bill makes relatively minor changes to the permanent statutes for two types of
farm lenders: the USDA Farm Service Agency (FSA) and the Farm Credit System (FCS).21 It
15 For more direct assistance, contact Randy Alison Aussenberg (raussenberg@crs.loc.gov, 7-8641). For more
information, see CRS Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer on Eligibility
and Benefits; and CRS Report R42353, Domestic Food Assistance: Summary of Programs.
16 The SNAP provisions alone are estimated to reduce spending by $8.6 billion over 10 years, while certain other title
provisions are estimated to increase spending, which together result in the total estimated reduction of $8.0 billion.
17 CRS Report R42591, The 2014 Farm Bill: Changing the Treatment of LIHEAP Receipt in the Calculation of SNAP
Benefits.
18 The bill does not include changes to broad-based categorical eligibility or a state option to drug test SNAP
applicants; these options has been included in House proposals.
19 The 2010 child nutrition reauthorization (Healthy, Hunger-Free Kids Act of 2010, P.L. 111-296) had already
reauthorized some nutrition programs through FY2015, but P.L. 113-79 included certain related policy changes. See
CRS Report R41354, Child Nutrition and WIC Reauthorization: P.L. 111-296.
20 For more direct assistance, contact Jim Monke (jmonke@crs.loc.gov, 7-9664). For more information, see CRS
Report RS21977, Agricultural Credit: Institutions and Issues.
Congressional Research Service
8
What Is the Farm Bill?
gives USDA discretion to recognize alternative legal entities to qualify for farm loans and allow
alternatives to meet a three-year farming experience requirement. It increases the maximum size
of down-payment loans, and eliminates term limits on guaranteed operating loans (by removing a
maximum number of years that an individual can remain eligible). It increases the percentage of a
conservation loan that can be guaranteed, adds another lending priority for beginning farmers,
and facilitates loans for the purchase of highly fractionated land in Indian reservations, among
other changes.
Title VI: Rural Development22
The 2014 farm bill reauthorizes and/or amends rural development loan and grant programs and
authorized several new provisions, including rural infrastructure, economic development, and
broadband and telecommunications development, among other programs. The bill reauthorizes
funding for programs under the Rural Electrification Act of 1936, including the Access to
Broadband Telecommunications Services in Rural Areas Program and the Distance Learning and
Telemedicine Program, and also reauthorizes the Northern Great Plains Regional Authority and
the three regional authorities established in the 2008 farm bill. It also increases funding for
several programs, including the Value-Added Agricultural Product Grants, rural development
loans and grants, and the Microentrepreneur Assistance Program. The bill retains the definition of
“rural” and “rural area” under current law for purposes of program eligibility; however, it amends
the definition of rural area in the 1949 Housing Act so that areas deemed rural between 2000 and
2010 would retain that designation until USDA receives data from the 2020 decennial census.
The provision further raises the population threshold for eligibility from 25,000 to 35,000. The
bill also authorizes USDA to prioritize otherwise eligible applications that support
multijurisdictional strategic economic and community development, as well as a new Rural
Energy Savings Program, and amends the water and waste water direct and guaranteed loan
programs, among other changes to USDA’s rural development programs.
Title VII: Research23
USDA is authorized under various laws to conduct agricultural research at the federal level, and
to provide support for cooperative research, extension, and post-secondary agricultural education
programs in the states. The 2014 farm bill reauthorizes funding for these activities through
FY2018, subject to annual appropriations, and amends authority so that only competitive grants
can be awarded under certain programs. Mandatory spending for the research title is increased for
several programs, including the Specialty Crop Research Initiative and the Organic Agricultural
Research and Extension Initiative. Also, mandatory funding is continued for the Beginning
Farmer and Rancher Development Program. The bill provides mandatory funding to establish the
Foundation for Food and Agriculture Research, a nonprofit corporation designed to supplement
(...continued)
21 The Consolidated Farm and Rural Development Act is the permanent statute that authorizes USDA agricultural
credit and rural development programs. The Farm Credit Act of 1971, as amended, is the permanent statute that
authorizes the Farm Credit System. See CRS Report RS21977, Agricultural Credit: Institutions and Issues.
22 For more direct assistance, contact Tadlock Cowan (tcowan@crs.loc.gov, 7-7660). For more information, see CRS
Report RL31837, An Overview of USDA Rural Development Programs.
23 For more direct assistance, contact Dennis Shields (dshields@crs.loc.gov, 7-9051). For more information, see CRS
Report R40819, USDA’s Research, Education, and Economics (REE) Mission Area: Issues and Background.
Congressional Research Service
9
What Is the Farm Bill?
USDA’s basic and applied research activities to solicit and accept private donations to award
grants for collaborative public/private partnerships with scientists at USDA and in academia,
nonprofits, and the private sector.
Title VIII: Forestry24
General forestry legislation is within the jurisdiction of the Agriculture Committees, and past
farm bills have included provisions addressing forestry assistance, especially on private lands.
The 2014 farm bill generally repeals, reauthorizes, and modifies existing programs and provisions
under two main authorities: the Cooperative Forestry Assistance Act (CFAA), as amended, and
the Healthy Forests Restoration Act of 2003 (HFRA), as amended. Many federal forestry
assistance programs are permanently authorized, and thus do not require reauthorization in the
farm bill. However, the 2014 farm bill reauthorizes several other forestry assistance programs
through FY2018. It also repeals programs that have expired or have never received
appropriations. The bill also includes provisions that address the management of the National
Forest System, and also authorizes the designation of treatment areas within the National Forest
System that are of deteriorating forest health due to insect or disease infestation, and allows for
expedited project planning within those designated areas.
Title IX: Energy25
USDA renewable energy programs have been used to incentivize research, development, and
adoption of renewable energy projects, including solar, wind, and anaerobic digesters. However,
the primary focus of these programs has been to promote U.S. biofuels production and use.
Cornstarch-based ethanol dominates the U.S. biofuels industry. Earlier, the 2008 farm bill
refocused U.S. biofuels policy initiatives in favor of non-corn feedstocks, especially the
development of the cellulosic biofuels industry. The most critical programs to this end are the
Bioenergy Program for Advanced Biofuels (pays producers for production of eligible advanced
biofuels); the Biorefinery Assistance Program (assists in the development of new and emerging
technologies for advanced biofuels); the Biomass Crop Assistance Program, BCAP (assists
farmers in developing nontraditional crops for use as feedstocks for the eventual production of
cellulosic biofuels); and the Renewable Energy for America Program, REAP (funds a variety of
biofuels-related projects). The 2014 farm bill extends most of the renewable energy provisions of
the 2008 farm bill through FY2018 with some notable modifications to REAP and BCAP, repeals
four provisions, and adds a new reporting requirement.
Title X: Horticulture and Organic Agriculture26
The 2014 farm bill reauthorizes many of the existing farm bill provisions supporting farming
operations in the specialty crop and certified organic sectors. Many provisions fall into the
24 For more direct assistance, contact Katie Hoover (lhoover@crs.loc.gov, 7-9008). For more information, see CRS
Report RL31065, Forestry Assistance Programs
25 For more direct assistance, contact Randy Schnepf (rschnepf@crs.loc,gov, 7-4277). For more information, see CRS
Report R43416, Energy Provisions in the 2014 Farm Bill (P.L. 113-79).
26 For more direct assistance, contact Renée Johnson (rjohnson@crs.loc.gov, 7-9588). For more information, see CRS
Report R42771, Fruits, Vegetables, and Other Specialty Crops: Selected Federal Programs.
Congressional Research Service
10
What Is the Farm Bill?
categories of marketing and promotion; organic certification; data and information collection;
pest and disease control; food safety and quality standards; and local foods. The bill adopts nearly
all the programs, and in some cases provides for increased funding for several key programs
benefitting specialty crop producers. These include the Specialty Crop Block Grant Program,
plant pest and disease programs, USDA’s Market News for specialty crops, the Specialty Crop
Research Initiative (SCRI), and the Fresh Fruit and Vegetable Program (Snack Program) and
Section 32 purchases for fruits and vegetables under the Nutrition title. The final law also
reauthorizes most programs benefitting certified organic agriculture producers provisions as well
as provisions that expand opportunities for local food systems and also beginning farmers and
ranchers.27 Provisions affecting the specialty crop and certified organic sectors are not limited to
this title, but are contained within several other titles of the farm bill. These include programs in
the research, nutrition, and trade titles, among others.
Title XI: Crop Insurance28
The crop insurance title enhances the existing federal crop insurance program, which is
permanently authorized by the Federal Crop Insurance Act. The federal crop insurance program
makes available subsidized crop insurance to producers who purchase a policy to protect against
losses in yield, crop revenue, or whole farm revenue. More than 100 crops are insurable. The
2014 farm bill increases funding for crop insurance relative to baseline levels, most of which is
for two new insurance products, one for cotton and one for other crops. With cotton not covered
by the counter-cyclical price or revenue programs established in Title I, a new crop insurance
policy called Stacked Income Protection Plan (STAX) is made available for cotton producers. For
other crops, the 2014 farm bill makes available an additional policy called Supplemental
Coverage Option (SCO), based on expected county yields or revenue, to cover part of the
deductible under the producer’s underlying policy (referred to as a farmer’s out-of-pocket loss or
“shallow loss”). Additional crop insurance changes in the 2014 farm bill are designed to expand
or improve crop insurance for other commodities, including specialty crops. Provisions revise the
value of crop insurance for organic crops to reflect prices of organic (not conventional) crops.
USDA is required to conduct more research on whole farm revenue insurance with higher
coverage levels than currently available.
Title XII: Miscellaneous
The miscellaneous title in the 2014 farm bill includes various provisions affecting livestock
production;29 socially disadvantaged and limited-resource producers; and oilheat efficiency,
research, and jobs training, among other provisions. The livestock provisions include animal
health-related and also animal welfare provisions, creation of a production and marketing grant
program for the sheep industry, and requirements that USDA finalize the rules on catfish
27 Other provisions supporting local food producers are within the research, nutrition, and rural development titles,
among other titles.
28 For more direct assistance, contact Dennis Shields (dshields@crs.loc.gov, 7-9051). For more information, see CRS
Report RS21212, Agricultural Disaster Assistance and CRS Report R40532, Federal Crop Insurance: Background.
29 The 2008 farm bill included new livestock-related provisions under a new bill title, and made changes to existing
laws governing livestock and poultry marketing and competition. A separate livestock title was not included in the
2014 farm bill. For more direct assistance, contact Joel L. Greene (jgreene@crs.loc.gov, 7-9877). For more
information, see CRS Report R42954, Animal Agriculture: Selected Issues in the 113th Congress
Congressional Research Service
11
What Is the Farm Bill?
inspection and also conduct a study of its country-of-origin labeling (COOL) rule. The farm bill
also extends authority for outreach and technical assistance programs for socially disadvantaged
farmers and ranchers and adds military veteran farmers and ranchers as a qualifying group. It also
creates a research center to develop policy recommendations for socially disadvantaged farmers
and ranchers, reauthorizes funding for the USDA Office of Advocacy and Outreach for socially
disadvantaged and veteran farmers and ranchers, and includes a provision to increase
transparency by automatically providing receipts for service or denial of service. It also creates a
military veterans agricultural liaison within USDA to advocate for and to provide information to
veterans, and establishes an Office of Tribal Relations to coordinate USDA activities with Native
American tribes. Other provisions establish grants for maple syrup producers and trust funds for
cotton and wool apparel manufacturers and citrus growers, and also provide technological
training for farm workers, as well as provisions related to the Environmental Protection Agency.
Author Contact Information
Renée Johnson
Specialist in Agricultural Policy
rjohnson@crs.loc.gov, 7-9588
Congressional Research Service
12