Passage of the new Federal farm bill last summer marked several “firsts." For the first time, neither “agriculture” nor “farm” is featured in the name. The legislation’s title, The Food, Conservation and Energy Act, is fitting considering well over 80 cents of each farm bill dollar spent over the next five years is directed to food assistance and programs not tied directly to production agriculture.
There are notable “firsts” for farmers and ranchers though, like the Average Crop Revenue Election (ACRE) program providing an optional revenue-based component to the existing safety net to help producers endure market volatility, adverse weather conditions, skyrocketing input costs and other uncertainties inherent to farming. Producers who opt for the ACRE program will be “locked in” for the remainder of the farm bill.
In an attempt to eliminate the need for ad hoc emergency disaster assistance every other year (usually in election years), a permanent disaster program is established. Livestock producers may be eligible for funds depending on the type and scope of the disaster(s) and the damages incurred like the loss of forage for grazing or the death of livestock.
A livestock title is featured in the new law, also a first. Previous farm bills contained animal health, livestock marketing and other provisions pertaining to animal agriculture, but they have usually been under a miscellaneous heading. Of interest to livestock and poultry producers in this section is the Country of Origin Labeling (COOL) program, which after years of delay became mandatory Sept. 30. By law, retailers and suppliers must label covered commodities (e.g. muscle cuts and ground beef, pork, lamb and goat; chicken; fresh and frozen fruits and vegetables; etc.) as to their country of origin. The requirement applies to products in grocery stores and similar outlets, not food service establishments.
Producers aren’t directly covered by COOL, but they will need to sign affidavits attesting to the country of origin of their animals and keep certain records. Farm Bureau is urging the U.S. Department of Agriculture (USDA) to make changes in the rule to make certain an uncomplicated, producer-friendly system for verifying origin is in place to reduce the recordkeeping burden on farmers and ranchers.
State-inspected meat processing facilities that follow federal meat and poultry inspection rules, have less than 25 employees and are approved by USDA will be allowed to ship products in interstate commerce. Seventh District Congressman Roy Blunt was a lead proponent of the change.
Producers raising poultry and swine under contract will benefit from changes in the Packers and Stockyards Act, such as a provision to ensure they are not forced into mandatory arbitration. Integrators will be required to disclose in contracts if additional large capital investments may be required of growers and producers will be allowed to cancel growing or production contracts up to three days after signing or the date specified in the contract.
Various tweaks were also made in conservation and energy programs. The Conservation Security Program, first created under the 2002 farm bill, was revamped and renamed the Conservation Stewardship Program. A forestry component was added to the popular Environmental Quality Incentives Program (EQIP) and the directive that 60 percent of program dollars nationwide be geared toward livestock and poultry operations was maintained.
The Renewable Energy Systems and Energy Efficiency Improvements Program established in 2002 was renamed the Rural Energy for American Program and reauthorized through 2012. Thirteen Southwest Missouri poultry growers are among the most recent grant recipients. Funds awarded will help them cut propane costs through the use of wood chips and pellets, straw and other renewable fuel sources to heat their chicken houses.
Given the November elections and the upcoming Administration change, rules for the ACRE program, permanent disaster programs and others may not be finalized until spring of next year. Farmers and ranchers are encouraged to participate in the rulemaking processes – take time to comment!
