Overview
The Food, Conservation, and Energy Act of 2008 (2008 Farm Act) builds on previous policy and provides
a new counter-cyclical revenue program and a permanent
disaster fund for farmers. Government payments provide
an important source of income to the farm sector, but
U.S. farm policy has undergone significant changes over
the last 15 to 20 years. Beginning with the 1985 Farm
Act and continuing with farm legislation in 1990 and 1996,
a series of fundamental changes in commodity and other
agricultural policies moved the sector toward market-oriented
decisions. Against a background of low commodity prices
that spurred enactment of five supplemental emergency
assistance packages, the new farm bill adds income stabilization
provisions, among other new programs, to already existing
policies.
ERS analysts evaluate the economic effects on producers,
consumers, taxpayers, and rural communities of current
farm legislation and alternative policy instruments and
programs. This briefing room provides a background on
farm policy and an explanation of the various programs.
Also included is access to ERS analyses of the impacts
of farm policy, commodity-specific farm programs, and
commodity trade policy, highlighting the impacts of the
2008 Farm Act.
Features
 2008 Farm Bill Side-By-Side (August 2008) presents a title-by-title summary of key provisions of the 2008 Act in a side-by-side comparison with previous legislation. The side-by-side includes links to related ERS publications and to analyses of previous farm acts. New features include a user's guide, an A-Z list of major provisions, and a search function.
New Market Realities Affect Crop Program Choices (November 2008) discusses the implications of higher crop prices for commodity program payments. Higher prices reduce the likelihood of commodity program payments based on fixed target prices, but increase the importance of insurance under the Federal crop insurance program. The new Average Crop Revenue Election (ACRE) program offers revenue protection based on recent market prices, but participating farmers must forgo some benefits of traditional commodity programs.
2008 Farm Act: Where Will the Money Go? (November 2008) provides an overview of spending under the 2008 Farm Act. Over two-thirds of Farm Act-related spending will go not to farmers in fiscal years 2008-17 but to food and nutrition programs to help low-income Americans purchase food, and provide food to programs that serve children and the elderly. Less than a third of the funding (spending) in the legislation will benefit farmers through commodity programs, crop insurance, and conservation programs.
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