U.S. Representative Stephanie Herseth

Washington Report: 2007 Farm Bill
June 29, 2007
By U.S. Rep. Stephanie Herseth Sandlin

U.S. Rep. Stephanie Herseth Sandlin is a member of the House Agriculture Committee and two Agriculture Subcommittees: Conservation, Credit, Energy and Research; and General Farm Commodities and Risk Management.

Last week, the 2007 Farm Bill took another step towards passage in the U.S. House of Representatives, as the initial draft of sections, or “titles,” including the Commodity, Conservation, Energy, Rural Development and Livestock Titles, passed through relevant Agriculture Subcommittees. The next step will be consideration before the full Agriculture Committee and I wanted to take this opportunity to update South Dakotans on progress thus far.

Based on the debate and action of the General Farm Commodities Subcommittee, I expect the current Commodity Title of the bill to look quite similar to what we have today. In fact, the Subcommittee essentially voted extended the 2002 Farm Bill’s Commodity Title through 2012. While I voted in favor of this extension, it was not my first choice. I look forward to further debate in the full Agriculture committee next month on payment limitations and direct payment reductions, among other issues. And I do support a realignment of the current loan rates and target prices provided in the 2002 bill for certain commodities, including wheat and soybeans.

Several other Commodity Title proposals offered by other members of Congress or outside groups were considered and soundly defeated in the Subcommittee. This included a proposal to virtually eliminate all of the farm price support programs in the title and a plan to offer one-time lump sum payments to farmers who agree to permanently terminate their participation in federal farm programs. I opposed both these proposals.

The Conservation Title is likely to be among the most contentious of the entire debate, but not because there is any disagreement about its importance. Many in Congress, myself included, would like to see more money made available to conservation programs. There may be some disagreement, however, in how to pay for it. I support additional resources directed toward many valuable programs, including the Environmental Quality Incentives Program (EQIP) and the Conservation Security Program (CSP), but it is going to be very difficult to find sufficient funds to do both. The Subcommittee also included increased resources for the Grassland Reserve Program (GRP), which I was pleased to support, but did not yet address what I believe to be important “Sodsaver” proposals, which would enhance soil quality and conservation by protecting native sod and grassland.

Other important titles include Energy and Rural Development. The growth of the biofuels industry in South Dakota has been the most important economic driver in our region in more than a generation. I am working to ensure both these important sections contain the resources and the focus they need in order to continue the revitalization of our rural economies.

The Energy Title includes an amendment I offered to allow farmers, ranchers and rural small businesses to apply for grants and loans to purchase renewable energy systems and make energy efficiency improvements. The Rural Development Title includes a portion of my legislation to improve access to broadband telecommunications services in rural areas as well as a number of provisions I support to help beginning farmers and ranchers get started in agriculture.

The Livestock Title is also of great importance to South Dakota. The farm bill has historically been less focused on that sector of agriculture and I am working to ensure that livestock producers have the provisions in the bill they need to effectively manage risk and access a fair marketplace. A top priority is mandatory country-of-origin labeling (COOL) for meat products in this country. While it is still unclear if any changes will be made to the current mandatory COOL law, the concept has the strong support of Chairman Collin Peterson of Minnesota, and I am working with him to ensure that any changes to the program will provide a real benefit to producers and consumers alike.

Not surprisingly, a number of the major decisions have been delayed until the full committee hearing in July. I will continue to meet with and hear from South Dakotans as this process continues. We are in a tough budget situation, and there are many complex factors going into the legislation, but I believe that ultimately South Dakota producers will, by and large, be pleased with the result.

Summary: 2007 Farm Bill in the House of Representatives
June 29, 2007

Below is a summary of selected provisions included to date in the 2007 Farm Bill. These provisions reflect input from each Agriculture Subcommittee, but are subject to change as the bill receives further consideration in the full Agriculture Committee.

Commodity Title

Reauthorizes and retains the basic farm safety net by extending marketing assistance loans, direct payments and counter-cyclical payments.
Keeps intact the percentage of base acres for which farmers may receive payments.

Conservation Title

Extends important environmental and conservation programs.
Substantially increases funding for the Environmental Quality Incentives and Farmland Protection Programs.
Increased resources for Grasslands Reserve Program (GRP).
Reauthorizes the Conservation Security Program (CSP).
Expands the Cooperative Conservation Partnership Initiative (CCPI) to include projects that simultaneously address rural community development opportunities and environmental enhancement.
Adds bison to the definition of livestock for the purposes of the Environmental Quality Incentives Program (Herseth Sandlin amendment).

Energy Title

Creates a $2 billion federal loan guarantee program to incentivize the construction of biorefineries and biofuel production plants.
Reauthorizes and improves several important existing bioenergy programs.
Establishes a pilot program to demonstrate on-farm energy production systems to help farms become energy independent using existing technologies.
Modifies the Section 9006 program that allows farmers, ranchers and rural small businesses to apply for grants and loans to purchase renewable energy systems and make energy efficiency improvements in farms or businesses (Herseth Sandlin amendment).
Provides for feasibility studies for the construction of a dedicated ethanol pipeline and requires a report to Congress on the issue.
Creates an Energy Council in the Office of the Secretary at USDA to promote the Department’s role in renewable energy production.

Livestock Title

Repeals the prohibition on the use of a mandatory animal identification system to implement country-of-origin labeling.
Prevents a State or locality from prohibiting the interstate shipment of USDA-inspected and approved meat.
Prohibits livestock integrators from requiring contract livestock producers to consent to arbitration in contract disputes.
Makes the dairy forward contracting program permanent.
Extends the dairy export incentive program.
Streamlines the federal milk marketing order process.

Nutrition Title

Raises the allowable deductions to expand eligibility for the food stamp program and eliminate the limit on the deduction for child care expenses used when determining food stamp eligibility.
Reauthorizes the Food Distribution Program on Indian Reservations (part of Herseth Sandlin nutrition bill).

Rural Development Title

Changes program eligibility requirements to improve access to broadband. telecommunications services in rural areas (Includes portions of Herseth Sandlin Rural Utility Service broadband bill).
Reauthorizes U.S. Department of Agriculture Rural Development programs that facilitate the financing of essential infrastructure, including public water and waste disposal systems.
Establishes grant and loan programs for rural healthcare facilities and entrepreneur and microenterprise assistance.
Amendments were passed regarding the development of a comprehensive rural broadband strategy and technology transfer for rural areas.

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