U.S. Senate Passes New Farm Bill

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The U.S. Senate has passed a five-year farm bill that makes some changes, but does not overhaul federal farm policies. The bill provides for nearly $500 billion in spending over its five-year life, with about 80 percent of the spending devoted to the food stamp program. The bill includes $23 billion in budget cuts from current spending levels, including $4 billion in cuts in the food stamp program.

To achieve a projected $6 billion in budget savings the senate bill calls for the consolidation of 23 federal conservation programs. Further, the bill ends direct payments made to farmers regardless of whether they plant a crop, generating a $5 billion savings. The Senate approved ending commodity program subsidies for farmers with adjusted gross incomes of more than $750,000 and ensures that those receiving subsidies are actively involved in farming operations.

Regarding programs of interest to the fruit and vegetable industry, funding for Specialty Crop Block Grants is proposed at $70 million per year, and the Specialty Crop Research Initiative would be funded at $25 million in FY 2013; $30 million in FY 2014-2015; $65 million in FY 2016; $50 million in FY 2017.

The House Agriculture Committee is expected to release their version of the Farm Bill in July.

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