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After months of posturing, political rhetoric, and backroom Washington negotiations, the 2007 farm bill is finally being drafted. In the past several weeks, we have slowly seen the House Agriculture Committee’s version of the farm bill take shape. Five of the six subcommittees have “marked up” their titles of the farm bill, sending them on for full Agriculture Committee consideration, which is scheduled to begin June 26 (as of this mid-June writing, only the Commodity Subcommittee had not completed their work).

Much of the work the Center for Rural Affairs has done over the past months and even years is reflected in these initial drafts of the farm bill titles. There are significant successes to celebrate, along with some disappointments that need to be fixed as we move through the rest of the farm bill process. Most importantly, none of this could have happened without your help, and the entire Center for Rural Affairs staff thanks you.

Rural Development Title
In a significant step forward, Rural Development Subcommittee Chair Mike McIntyre (D-NC) included the Rural Entrepreneurs and Microenterprise Assistance Program in his version of the Rural Development title. This vital program will make grants to organizations and educational institutions to provide loans, training, and technical assistance to small rural businesses.

The inclusion of this program in Representative McIntyre’s draft Rural Development title essentially guarantees that it will be part of the final House version of the 2007 Farm Bill. That has never happened before, and the credit for success is given to the many organizations and individuals who worked very hard to make this happen. Of course, this is just the first step – now we have to find the funding.

Additionally, the subcommittee extended the life of the Value Added Producer Grants Program through the next farm bill, reserving 10 percent of grants for projects benefiting beginning, minority, and low-income farmers and ranchers. That program makes grants to producers to develop high value markets and engage in value added processing.

Representative Jeff Fortenberry (R-NE) offered an amendment developed by the Center to prioritize projects that strengthen small and mid-size farms. Subcommittee Chairman McIntyre agreed to work with Fortenberry to refine the amendment and adopt it in the coming weeks.

The subcommittee extended the life of several other rural development programs, including the Appropriate Technology Transfer for Rural Areas (ATTRA) program, which provides information and expertise on sustainable agriculture and alternative energy. Also extended are the Rural Business Opportunity Grants Program and the Rural Cooperative Development Grants Program that funds cooperative development centers.

The biggest shortcoming in the House provisions is that they provide no money for rural development through the funds under the control of the Agriculture Committee. Rural development programs would be funded only by annual allocations from the Appropriations Committee, making it difficult to achieve funding increases for existing rural development programs or any funding for new programs, such as the microenterprise program. We will continue to work to secure funding in the House, and we are hoping for a greater commitment to rural development by the Senate Agriculture Committee.

Research Title
The bill emerging from the House Agriculture Subcommittee on Conservation, Credit, Energy, and Research chaired by Representative Tim Holden (D-PA) combines existing programs with two proposals, one from state universities and land grant colleges and the other from a coalition of public and private research interests including Monsanto.

The land grant proposal, coined “Create21”, seeks to consolidate research agencies and free more funding for competitive grants and protect the land grant formula funding, which goes to land grants based on their percentage of rural population. The other proposal, “NIFA” – National Institute for Food and Agriculture – seeks to combine all competitive grant programs under its purview.

The draft bill melds these two concepts together and would establish a new “Agricultural Research Institute” that consolidates all USDA research and research grants under six mission areas or “institutes.” They are:
- Renewable Energy, Resources, and Environment - Food Safety, Nutrition, and Health - Plant Health and Production - Animal Health and Production - Agriculture Systems and Technology - Agriculture Economics and Rural Communities

Unfortunately, it appears funding for much of this would come from the Initiative for Future Agriculture and Food Systems (IFAFS). We have long advocated for this program, both as a separate program within USDA and as a vital part of larger programs. We are urging Congress to retain as much funding as possible for our research priorities (see www.cfra.org/policy/2007/research).

Overall, it is very difficult to figure out just exactly where the money will come from or even the main goals of the House research proposal. Like rural development programs, it does appear that most of the money would come through the annual appropriations process, which makes it difficult to achieve needed funding increases and money for vital new programs.

Given the importance of research programs to the future of farming and rural communities, we will continue to closely monitor the Research title as it moves through the farm bill process.

Conservation Title
The Conservation title introduced by Chairman Collin Peterson (D-MN) and debated by the Conservation, Credit, Energy, and Research Subcommittee, includes some of our priorities, but still left much to be desired.

One of our priorities is the Cooperative Conservation Partnerships Initiative. This initiative would allow communities and farmers and ranchers to work together through conservation programs to address rural community development opportunities and environmental enhancement.

The Chairman’s proposal failed to include any reference to community development needs and opportunities. Congressman Tim Walz (D-MN) offered an amendment to include eligible conservation partnerships that promote not only environmental innovation but also community development innovation. This is a big win!

The most disappointing provision under the Conservation title is the Chairman calling for cutting $1.1 billion from the Conservation Security Program (CSP). This cut would eliminate any new program sign-ups until 2012 and would effectively kill the CSP for the next five years. However, after hundreds of calls from concerned citizens, Peterson responded by saying he will support an amendment before the full House Agriculture Committee to restore CSP funding.

Under the Chairman’s original proposal, the funding designated to be cut from the CSP would be transferred to the Farm and Ranch Land Protection Program (FRPP) and the Environmental Quality Incentives Program (EQIP). The Chairman’s Environmental Quality Incentives Program proposal continues both the $450,000 per person payment limitation and allowing funds to be used for building new and expanded industrial livestock facility waste systems.

Beginning farmers and ranchers are given a 15 percent bonus for cost-share payments under the Environmental Quality Incentives Program, which is a step in the right direction. However, the subcommittee failed to make the same provision available under the CSP.

Commodity Title
As of this writing, the House Commodity Subcommittee has not begun its work. The number of proposals flying around regarding potential changes to commodity programs is truly amazing. The Center for Rural Affairs continues to fight for strong, effective payment limitations, which were included in the recently reintroduced Dorgan-Grassley Senate bill.

We have very high hopes that those limits will be included in the Senate version of the farm bill. Additionally, we are urging adoption of effective payment limitation reform in the House version of the farm bill.

Miscellaneous
Chairman Peterson’s draft Credit title bill includes several provisions from the Beginning Farmer and Rancher Opportunity Act we have been advocating for. It was introduced in the House by Representatives Stephanie Herseth Sandlin (D-SD) and Tim Walz (D- MN).

Provisions included in the Beginning Farmer and Rancher Opportunity Act are the conservation loan program, with priorities for beginning farmers and for organic transition, and the revised direct ownership and operating loan limitations.

Conclusion
As we write this, we do not know exactly what the House of Representatives 2007 farm bill will look like. However, by the time this newsletter is in your hands, we may have a much better clue as to the nature of the final product, and the farm bill may even be completed on the House side. (Check the Center’s website, www.cfra.org, for the latest on the 2007 farm bill.)

Even though much is still unknown, even in the middle of June, we can tell you for certain that the fight for funding will be crucial, and just as difficult as the fight to get these vital provisions included in the 2007 farm bill in the first place.

The Center for Rural Affairs is fighting hard for a 2007 farm bill that creates genuine opportunity and a brighter future for rural America. The only way we will succeed is through the support and actions of rural Americans like you. We thank you for your efforts.

Contact: Dan Owens, dano@cfra.org or 402.687.2103 x 1017 for more information. Dan had help from Kim Leval, (research) kimleval@qwest.net ; Traci Bruckner, (conservation) tracib@cfra.org ; and John Crabtree, (commodity) johnc@cfra.org.