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2018 Farm Bill Overview: Title by Title Summary

2018 Farm Bill Overview: Title by Title Summary. County Educator Best County in the State. State of Government: the Farm Bill was unique. This was a Bipartisan Bill!. Passed the Senate December 11, 2018 87 yes - 13 no Passed the House December 12, 2018 369 yes - 47 no

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2018 Farm Bill Overview: Title by Title Summary

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  1. 2018 Farm Bill Overview:Title by Title Summary County Educator Best County in the State

  2. State of Government: the Farm Bill was unique

  3. This was a Bipartisan Bill! • Passed the Senate December 11, 2018 • 87 yes - 13 no • Passed the House December 12, 2018 369 yes - 47 no • Trump signed it on December 20, 2018 • Largest margin of yes votes in at least 60 years.

  4. How does Government and Farm Policy Fit into Understanding our Industry? Image Source: USDA- Farm Policy

  5. The 2018 Farm Bill- 10,000 Foot View

  6. 2018 Farm Bill Overview- Same 12 Titles Commodities Conservation Trade Nutrition Credit Rural Development Researchand Extension Forestry Energy Horticulture Crop Insurance Miscellaneous

  7. 2018 Farm Bill Budget- Big Picture • A $867 Billion Bill over 10 years • The Budget Split remained mostly the same as previous bills. • Cuts to nutrition did not make the final bill, but have been proposed through USDA guidance. Data Source: Congressional Budget Office

  8. Title by Title Changes in Spending (FY 2019-2028) • Believe it or not, but 70 million is considered budget neutral. • Some changes within titles. • Largest increase was the Miscellaneous Title. • Large decrease was the Rural Development Title. Data Source: Congressional Budget Office

  9. 2018 Farm Bill-Overview • Title I: Commodities ($61 billion) • Replaces Margin Protection Program • New program called Dairy Margin Coverage • Adds new coverage levels for milk production • Dairy operations can now participate in both DMC and the livestock Gross Margin Insurance for Dairy • Retains the ARC and PLC programs • Revisions to both programs • Decision for 2019 and 2020 together, then annually • Increased Commodity Loan Rates for most crops • Leaves Sugar Programs Alone • Expands Family Member Definition for Payment Limits • Now includes: nieces, nephews and cousins to receive federal payments

  10. 2018 Farm Bill-Overview • Title II: Conservation ($60 billion) • Conservation Reserve Program (CRP) • Acreage Cap increased incrementally to 27 million acres • Reduces payment rate: 85% general and 90% continuous • Working lands programs • Expands the Environmental Quality Incentive Program (EQIP) • Reduces the Conservation Stewardship Program (CSP) • Increased Agricultural Conservation Easement Program (ACEP) • Limits nonagricultural land uses • Makes Regional Conservation Partnership Program a Standalone Program • Ohio is in the Great Lakes Region • Public/Private Partnerships for Conservation Practices Photo Credit- NRCS

  11. 2018 Farm Bill-Overview • Title III: Trade ($4.1 billion) • Does NOT cover USMCA, KORUS, or other trade deals • Nor does it cover the Trade Aid “Market Facilitation Payments” • Reauthorizes Food for Peace and other International Food Aid • Mandatory Funding and Consolidation for Several Programs • Market Access Program (used by commodity groups) • Foreign Market Development Programs • Emerging Markets Program • Technical Assistance for Specialty Crops

  12. 2018 Farm Bill-Overview • Title IV: Nutrition ($663.8 billion) • Reauthorizes the Supplemental Nutrition Program (Food Stamps) • Budget Neutral over 10 Years • Pilot program to incentivize fluid milk purchases for SNAP recipients • Did not expand work requirements for beneficiaries (USDA proposed their own policies outside the bill) • Reauthorizes food distribution programs with few changes. • Food banks and other programs • A number of provisions addressing food waste as a way to reduce food insecurity and hunger. Photo Credit- Duluth News Tribune

  13. 2018 Farm Bill-Overview • Title V: Credit (-$4.5 billion) • Reauthorizes almost all programs with little changes • Farm Ownership Loans Increased • Direct Ownership Loans from $300,000 to $600,00 • Guaranteed Ownership Loans from $700,000 to $1,750,000 • Guaranteed Operating Loans from $700,000 to $1,750,000 • Includes exceptions to 3-year experience requirement for young, beginning farmers, and military veterans. • Education can now be used as an exception to experience. Photo Credit- USDA Farm Service Agency

  14. 2018 Farm Bill-Overview • Title VI: Rural Development (-$2.4 billion) • Temporarily prioritizes assistance for public health concerns • Opioid and substance abuse programs • Amends broadband support to include grants • Minimum services increased for download and upload. • Reauthorizes numerous programs • Rural business development grants • Locally and regionally grown food programs • Budget saving by eliminating interest earned in the loan pre-payments • This is apart of the Rural Economic Development Loan Program Photo Credit- USDA Rural Development Program

  15. 2018 Farm Bill-Overview • Title VII: Research, Extension and Related Matters ($1.2 billion) • Reauthorizes most existing programs with some new priorities • Soil Health • Tools that accelerate research in use of automation or mechanization • Barriers to entry for young, beginning and socially disadvantaged, veterans, and immigrant farmers and ranchers • Establishes new investments at 1890 and 1994 institutions • In Ohio- Central State University • Makes industrial hemp eligible for certain research funding Photo Credit- OSU CFAES and Central State University

  16. 2018 Farm Bill-Overview • Title VIII: Forestry (10 million) • One of the smallest titles, if not the smallest • Yet, it was a huge point of contention this time • Authorization for competitive grants for priority forests • Addresses forest management considerations. Photo Credit-Ohio Park Service, Appalachia Preserve Serpent Mount

  17. 2018 Farm Bill-Overview • Title IX: Energy ($737 million) • Reauthorized most agricultural renewable energy programs • This did not reauthorize the biodiesel credit • Provided mandatory funding for several bioenergy programs: • Biobased Markets Program • Renewable Chemical and Biobased Product Manufacturing Assistance Program • Bioenergy Program for Advanced Biofuels • Adds Algae as an eligible material for Biomass Crop Assistance Program Photo Credit- Reuters News

  18. 2018 Farm Bill-Overview • Title X: Horticulture ($2 billion) • Reauthorizes several programs: • Specialty crop block grants, research and promotion • Organic agriculture • Farmers Market and Local Foods Program • Allows States and Indian Tribes to regulate industrial hemp production. • Decimalized Hemp from the Federal Register of Controlled Substances • Ohio has not passed industrial hemp legislation yet, but there is a bill in the Ohio Legislature to allow it’s cultivation. Photo Credit- Worthington, OH Farmers Market

  19. 2018 Farm Bill-Overview • Title XI: Crop Insurance ($77.9 billion) • Crop Insurance is permanently authorized in The Federal Crop Insurance Act • Small modification were made • Selected Changes • Allows cover crops to be classified as “good farming practice” • Allows for producers to establish single enterprise units across counties • Adds catastrophic cover for grazing crops • Adds industrial hemp to list of eligible insured crops • Biggest news to crop insurance was what wasn’t included in bill • No added limits on payments and subsidy rates • Did not remove the harvest price option in revenue plans Photo Credit- USDA, Risk Management Agency

  20. 2018 Farm Bill-Overview • Title XII: Miscellaneous Title ($3.2 billion) • Largest increase in spending of all titles • Signifies that Farm Bills are becoming large omnibus bills • Creates several livestock programs • National Animal Disease Response Program • Animal Vaccine Bank and Countermeasures Bank • Directs the Secretary to re-establish an Under Secretary of Agricultural for Rural Development • Expands assistance programs for beginning farmers and ranchers, veteran farmers and socially disadvantaged farmers (50 million dollars) • Improves the U.S. Drought Monitor Photo Credit- Farm and Dairy

  21. This material is based upon work supported by the USDA-NIFA under Award Number 2018-70027-28586 and prepared by Ben Brown- The Ohio State University College of Food Agriculture and Environmental Sciences

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