Previewing a 2007 Farm Bill

Publication Date: January 2007

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Agriculture, forestry and fishing

Type:

Abstract:

Federal farm support, food assistance, agricultural trade, marketing, and rural development policies are governed by a variety of separate laws. However, many of these laws periodically are evaluated, revised, and renewed through an omnibus, multi-year "farm bill." The Farm Security and Rural Investment Act of 2002 (P.L. 107-171) was the most recent omnibus farm bill, and many of its provisions expire in 2007, so reauthorization is expected to be addressed in the first session of the 110th Congress.

The heart of every omnibus farm bill is farm income and commodity price support policy -- namely, the methods and levels of support that the federal government provides to agricultural producers. However, farm bills typically include titles on agricultural trade and foreign food aid, conservation and environment, forestry, domestic food assistance (primarily food stamps), agricultural credit, rural development, agricultural research and education, and marketing-related programs. Often, such "miscellaneous" provisions as food safety, marketing orders, animal health and welfare, and energy are added. This omnibus nature of the farm bill creates a broad coalition of support among sometimes conflicting interests for policies that, individually, might not survive the legislative process.

The scope and direction of a new farm bill may be shaped by such factors as financial conditions in the agricultural economy, competition among various interests, international trade obligations, and -- possibly most important -- a tight limit on federal funds. Among the thorniest issues may be future farm income and commodity price support. Questions of equity (who should get aid and how much), program cost, conformance with WTO trade obligations, effects on U.S. competitiveness in the global marketplace, and the unintended impacts of agricultural activities on the environment are among the considerations.

The economic prosperity of the U.S. farm sector is heavily dependent upon exports, so the provisions of a new bill reauthorizing farm export and foreign food aid programs also will be of keen interest. Moreover, the agricultural credit, research, conservation, domestic nutrition assistance, and rural development titles bring an array of interests into the debate, and their issues and concerns could prove equally contentious.

Several farm groups have strongly endorsed a continuation of current policies and programs. However, agriculture and rural interests not receiving much benefit from current programs oppose a simple extension and would like some of the spending to be aimed at solving their problems. Furthermore, the Secretary of Agriculture has repeatedly stated that farm programs need to be made "equitable, predictable and beyond challenge" in the WTO.

This report will be updated as related developments transpire.