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For Immediate Release Contact: Betsy Hart
May 14, 2008 (202) 226-8555

FARM BILL CONFERENCE REPORT PASSES WITH BIPARTISAN VETO-PROOF MAJORITY

Landmark Legislation Includes Herseth Sandlin Priorities: Strong Safety Net for Producers, Mandatory COOL Agreement, Permanent Disaster Assistance, Preventing FSA Office Closures

Washington, DC-May 14, 2008 – Today, by a broad, bipartisan vote of 318-106, the House sent the Farm Bill Conference Report to the President for his signature, pending Senate approval which is expected late this evening or tomorrow. H.R. 2419, The Food, Conservation and Energy Act, more commonly referred to as the Farm Bill, plays an instrumental role in shaping agriculture policy and practice – and is the most important single piece of legislation affecting South Dakota producers, families and businesses. Although the president has signaled that he will veto the bill, today’s vote demonstrates that there are sufficient votes to override a potential veto and the bill is one step closer to becoming law.

“The process of drafting the new Farm Bill probably has taken more time than anyone anticipated. But good policy and good legislation takes time, and with this Farm Bill, it is certainly worth the effort because we know the policy implications are so critical to our entire state’s economy. This final version of the Farm Bill makes important reforms while at the same time includes a number of wins for our state, including a strong safety net for producers, an agreement for Mandatory Country of Origin Labeling, permanent disaster assistance and language to prevent the closure of FSA offices,” Herseth Sandlin said. “Although the final bill doesn’t include everything that we would like, I believe that the result of this long process ultimately does right by our farm and ranch families and rural communities in South Dakota.”

Herseth Sandlin, who helped craft the Farm Bill as a member of the House Agriculture Committee, added “Although I’m disappointed that the President has indicated his opposition to the Farm Bill we agreed to today, it’s important to note that it has garnered the support of bipartisan lawmakers in both chambers from various regions across the country who represent the diversity of American agriculture.”

The final conference report agreed to today makes critical reforms of key farm programs while still maintaining a solid safety net for our producers by providing for:

• Increased target prices for wheat, sorghum, barley, oats, and soybeans and rebalanced loan rates on wheat, barley, oats, oilseeds and honey, enhancing the basic safety net for these commodities
• Permanent Disaster Assistance
• The establishment of a 30-day rolling average as the basis for calculating repayment rates for marketing loans while still allowing producers to retain beneficial interest in their commodities at the time they receive a Loan Deficiency Payment under the marketing loan program
• A hard cap on average adjusted gross income (AGI) for farmers for eligibility to receive farm program payments of $500,000 for non-farm income, a substantial reduction from the former eligibility limit of $2.5 million, and $750,000 for farm income for which there was no previous eligibility limit. There is also a ban on conservation payments to people with adjusted gross incomes of $1 million per year unless two thirds of that money comes from agriculture or forestry, then no limit.
• The elimination of the three-entity rule that has allowed individual producers to collect as much as double the current limit on farm program payments, and requires direct attribution of farm program payments to the individuals who receive them – a key transparency measure. Both of these reforms will crack down on those who try to game and abuse the system.

In addition to maintaining a safety net for producers, the farm bill includes provisions to encourage the development of renewable sources of energy within the energy title including:

• The creation of the Biomass Crop Assistance Program to develop the next generation of feedstocks for renewable energy
• Loan guarantees for biorefineries producing advanced biofuels
• The creation of the Rural Energy for America Program (REAP) to provide grants and loan guarantees for agricultural producers and rural small businesses to purchase renewable energy systems and make energy efficiency improvements
• The establishment of Forest Biomass for Energy, a program authorizing funding for research and development supporting the use of woody biomass for energy, including feedstocks such as byproducts of forest health treatments and hazardous fuels reduction

For the first time, the Farm Bill includes a dedicated livestock title including an agreement for implementing mandatory COOL and interstate shipment of beef. Additionally, 70% of the bill’s spending will go toward domestic and international food assistance, a critical necessity as we see food prices rising around the world. Finally, the agreement increases money for conservation programs, including a Conservation Stewardship Program, Environmental Quality Incentives Program (EQIP), Grasslands Reserve, and Wetlands Reserve.

Provisions authored by Rep. Herseth Sandlin in the House-passed Farm Bill that have been retained in the Conference Report include:

Delay USDA County Office Closures

This provision would prevent the Farm Service Agency, the Rural Development Agency, and the Natural Resources Conservation Service from closing any county or field offices for two years after the enactment of the overall Farm Bill.

Access to Broadband Internet in Rural America

The Rural Development title includes provisions derived, in part, from Rep. Herseth Sandlin’s legislation to improve access to broadband telecommunications services in rural areas. It ensures Rural Utility Service (RUS) broadband loans will be better directed to companies providing service to unserved households, like many areas in South Dakota and rural America. The changes made in the Farm Bill show important progress in the effort to reform the RUS Broadband Loan Program.

Beginning Farmers and Ranchers

The bill includes language sponsored by Rep. Herseth Sandlin and Rep. Tim Walz of Minnesota to help beginning and socially disadvantaged farmers and ranchers succeed in agriculture and ensure that family-based agriculture in this country thrives for generations to come. In particular, the conference agreement increases the amount of direct farm ownership loans, guaranteed farm ownership loans, direct farm ownership loans reserved for down payment and direct operating loans for beginning farmers and ranchers; adjusts the Beginning Farmer and Rancher Down Payment Loan Program to better serve producers; and provides $75 million in mandatory funding for the Beginning Farmer and Rancher Development Program, which provides training, education, outreach and technical assistance initiatives.

Agronomist on the Biomass Research and Development Technical Advisory Committee

Directs the appointment of an individual to the Biomass Research and Development Technical Advisory Committee with expertise in agronomy, crop science, or soil science.

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Congresswoman Stephanie Herseth Sandlin serves South Dakota in the U.S. House of Representatives. She is a member of the Blue Dog Coalition, a group of moderate Democrats committed to fiscal discipline and strong national security, and is co-chair of the Rural Working Group, which is dedicated to raising the profile of issues important to rural America. She also serves on three committees vital to South Dakota’s interests: Agriculture, Veterans’ Affairs and Natural Resources. In the 110th Congress, Rep. Herseth Sandlin was one of only 15 members appointed to serve on the Select Committee on Energy Independence and Global Warming.