Possible Expiration (or Extension) of the 2002 Farm Bill

Possible Expiration (or Extension)
of the 2002 Farm Bill
Updated July 23, 2008
Jim Monke, Coordinator,
Tadlock Cowan, and Charles E. Hanrahan
Resources, Science, and Industry Division
Joe Richardson
Domestic Social Policy Division



Possible Expiration (or Extension) of the 2002 Farm Bill
Summary
The 2002 farm bill (P.L. 107-171) authorized an array of agricultural, rural, and
nutrition programs. Many provisions of the 2002 farm bill were scheduled to expire
in 2007. If a new farm bill or year-long extension were not enacted before the 2008
harvest, permanent law would have taken effect. Under permanent law, eligible
commodities would be supported at levels much higher than they are now, and many
of the currently supported commodities might not be eligible (including soybeans and
peanuts). Permanent law for the commodity programs is so radically different from
current policy and inconsistent with today’s farming, marketing, and trade
agreements — as well as costly to the federal government — that Congress was
unlikely to let it take effect. Lack of new legislation would have reduced or
eliminated some conservation, domestic nutrition assistance, trade and foreign food
aid, and rural development programs.
Six temporary extensions continued the authority of most programs in the 2002
farm bill until May 23, 2008. A new farm bill was enacted on May 22, 2008 (P.L.
110-234), when the Senate joined the House in overriding the presidential veto of
H.R. 2419. However, a clerical error omitted Title III, the trade and foreign aid title
from the enrolled version sent to the President. To resolve the absence of Title III,
another complete version of the farm bill (H.R. 6124) was passed, vetoed and
overridden. The final enacted version of the 2008 farm bill is P.L. 110-246.
Prior to enactment of the farm bill, programs that were not extended in the
temporary extensions included the direct, counter-cyclical, and marketing loan
programs for the 2008 crop year for the major crops (such as corn, soybeans, wheat,
cotton, and rice), peanut storage, community food projects authorized under the Food
Stamp Act, the rural broadband program, value-added market development grants,
and certain renewable energy programs. However, the dairy, sugar, and wool and
mohair programs were extended.
Most of the long-standing USDA conservation programs were permanently
authorized and had a current appropriation. Other conservation programs that pay
farmers to remove fragile crop land from production were authorized and received
mandatory funding from the 2002 farm bill but awaited renewal. Two conservation
programs that pay farmers for adopting resource stewardship practices (the
Environmental Quality Incentives Program and the Conservation Security Program)
were extended beyond FY2007 by the Deficit Reduction Act of 2005 (P.L. 109-171).
USDA’s domestic food assistance programs (for example, food stamps)
generally were permanently authorized, and, in most cases, they were not affected by
the possible expiration of the farm bill, since they received a full-year FY2008
appropriation. However, two major provisions of the law could have been affected:
nutrition assistance grants to Puerto Rico and American Samoa and authority to
reduce food stamp administrative payments to states.
This report will not be updated.



Contents
In troduction ......................................................1
Background ......................................................1
Temporary Extensions..........................................2
Commodity Support Programs........................................3
Possible Reversion to Permanent Law..............................4
Conservation Programs.............................................7
Nutrition Programs.................................................9
Trade and Foreign Food Aid Programs................................10
Rural Development Programs.......................................11
Historical Farm Bill Chronology of Major Actions.......................11
1973 Farm Bill...............................................11
1977 Farm Bill...............................................11
1981 Farm Bill...............................................12
1985 Farm Bill...............................................13
1990 Farm Bill...............................................13
1996 Farm Bill...............................................14
2002 Farm Bill...............................................15
2008 Farm Bill...............................................16
List of Tables
Table 1. Average Prices Received and Parity Prices for Farm Products,
and Support Provisions Under Permanent Law.......................6
Table 2. Conservation Program Authorization and Funding................8



Possible Expiration (or Extension)
of the 2002 Farm Bill
Introduction
On June 18, 2008, the Food, Conservation, and Energy Act of 2008 (P.L. 110-
246, the 2008 farm bill) became law when the House and Senate voted to override
President Bush’s veto of H.R. 6124.1 Enactment of the new law suspends the
provisions of permanent law that would have taken effect without a new law.
For more details on the legislative history of the 2008 farm bill, see CRS Report
RL33934, Farm Bill Legislative Action in the 110th Congress. A side-by-side
summary of the provisions and changes in the 2008 farm bill is presented in CRS
Report RL34228, Comparison of the 2008 Farm Bill Conference Agreement with the
House and Senate Farm Bills.
Background
What were the consequences of Congress not having enacted a new farm bill
before the end of fiscal year 2007, the commonly reported expiration date of many
of the provisions of the 2002 farm bill? What might have happened if a new farm
bill were not enacted in early 2008? Would programs authorized by the expiring
legislation have ceased to operate, or would they have continued under non-expiring
provisions of permanent law? Where there is permanent law, would the design and
funding have changed?2
The 2002 omnibus farm bill (P.L. 107-171) included a wide range of program
authorities, some of which were mandatory and others discretionary. Mandatory, in
this context, means that the authority to spend necessary funds is provided by statute.3


1 The conference agreement on the 2008 farm bill was originally approved by the House and
the Senate as H.R. 2419 and vetoed by the President in May 2008. Both chambers overrode
the veto, making the bill law (P.L. 110-234). However, the trade title was inadvertently
excluded from the enrolled bill. To remedy the situation, both chambers repassed the farm
bill conference agreement (including the trade title) as H.R. 6124. The President vetoed the
measure in June 2008 and both chambers again overrode the veto, which made H.R. 6124
law as P.L. 110-246, and superseded P.L. 110-234.
2 In addition to this analysis, the USDA released an unnumbered report on February 29,
2008, titled The Effects of Failure to Enact a New Farm Bill: Permanent Law Support for
Commodities and Lapse of Other USDA Programs, at [http://www.usda.gov/documents/
fbpaper022908.doc].
3 In this context the word mandatory does not relate to participation in the programs. In all
cases, program participation is voluntary.

This mandatory category includes the commodity support programs, export
programs, some conservation programs, and food stamps.4 Discretionary programs
are authorized, but annual funding is subject to congressionally approved
appropriations. Discretionary programs in the farm bill include some conservation
programs, federal farm loan programs, rural development programs, agricultural
research, and some foreign food aid, among others.
In nearly all cases, a farm bill supersedes permanent authorizing law for a period
of four to six years. The farm bill is important because it may substantially change
program design from what is in the permanent law, as is the case with commodity
support programs. Typically, with regard to appropriated programs, the farm bill sets
policy parameters and upper limits on program activity levels and appropriations
authority.
Without an extension, most appropriated programs (also referred to as
discretionary programs) in the 2002 farm bill and some mandatory programs, such
as food stamps, would have faced the prospect of not having statutory authority for
the appropriations committees to provide funding in FY2008 and subsequent years.
The lack of authority to appropriate funds for authorized programs (and even for
some programs not authorized) has not been a barrier for appropriations in past
Congresses.
Temporary Extensions
FY2007 came to a close on September 30, 2007, without either a new farm bill
or an FY2008 appropriations act. Hence, Congress adopted several continuing
resolutions (P.L. 110-92, P.L. 110-116, P.L. 110-137, and P.L. 110-149) last fall that
provided stopgap funding for most non-defense discretionary spending until the
Consolidated Appropriations Act of 2008 (P.L. 110-161) was enacted on December

26, 2007.


For the farm bill specifically, six temporary extensions were enacted. The first
extension was in the Consolidated Appropriations Act of 2008. It extended the
authority for many expiring farm bill programs for nearly three months until March

15, 2008 (P.L. 110-161, Division A, Sec. 751). The second extension in P.L. 110-


196 lasted for about one month until April 18, 2008. Then, P.L. 110-200 continued
the extension for one week until April 25, 2008, and P.L. 110-205 for another week
until May 2, 2008. The fifth extension in P.L. 110-208 lasted for two weeks until
May 16, 2008. The sixth extension in P.L. 110-231 continued for one week until the
earlier of May 23, 2008 or the date the 2008 farm bill was enacted.
All but one title of the 2008 farm bill, except the trade title (which was
mistakenly missing from the enrolled version), were enacted on May 22 when the
House and Senate overrode the presidential veto5 of H.R. 2419, and the 2008 farm


4 Crop insurance is an important farm program with mandatory funding that does not depend
on periodic renewal through farm bills because it is authorized by its own permanent law.
5 The vetoes in 2008 were the second and third presidential veto of a complete stand-alone
(continued...)

bill became P.L. 110-234. Because no further temporary extension was passed, the
trade provisions in Title III of the 2002 farm bill expired. To deal with the omission
of Title III, both chambers repassed the farm bill conference agreement (including the
trade title) as H.R. 6124. The President vetoed the measure on June 18, 2008, and
both chambers again overrode the veto, which made H.R. 6124 law as P.L. 110-246,
superseding P.L. 110-234.
While the 2008 farm bill was being completed in Congress, the temporary
extensions stated that, unless otherwise excepted, 2002 farm bill provisions in effect
on September 30, 2007, shall continue until the new expiration date. The extensions
funded three conservation programs at specific levels (Farmland Protection Program
at $97 million/year, Ground and Surface Water Conservation at $60 million/year, and
Wildlife Habitat Incentives Program at $85 million/year). For the commodity title,
the dairy and sugar programs were included in the extension, as were price support
loan programs for wool and mohair.
Programs that specifically were not extended included the direct,
counter-cyclical, and marketing loan programs for the 2008 crop year for all other
supported commodities (e.g., feed grains, oilseeds, wheat, rice, cotton, and peanuts),
peanut storage payments, agricultural management assistance for conservation,
community food projects in the food stamp program, the rural broadband program,
value-added market development grants, federal procurement of biobased products,
the biodiesel fuel education program, and the renewable energy systems program.
Commodity Support Programs6
The mandatory commodity support programs authorized in the 2002 farm bill
cover the 2007 crops. So, all subsidy obligations related to 2007 crop production are
covered by the law, even if spending occurs in FY2008. For commodity support
programs, there was little reason to enact a farm bill before the end of calendar year
2007. In fact, past farm bills generally have been enacted late in the year, after the
end of the fiscal year. The 1981 and 1985 farm bills were enacted in late December,
and the 1990 farm bill was enacted in late November. What was expected to be a

1995 farm bill was not enacted until April 4, 1996, another case of belated action.


Even in that case, payments were made on the 1995 crops and farmers went ahead
with planting operations for their 1996 crops.7


5 (...continued)
farm bill. President Eisenhower vetoed H.R. 12, the first version of the Agricultural Act of

1956. The overrides in 2008 were the first time a farm bill was enacted by overriding a veto.


A budget reconciliation package that included a 1995 farm bill was vetoed in 1995, but the
farm bill was not necessarily the basis of the veto (see footnote 7).
6 This section on commodity support programs is written by Jim Monke, Specialist in
Agricultural Policy, CRS. It was initially composed by Jasper Womach.
7 The situation surrounding delayed enactment of a 1995 farm bill until 1996 was
complicated by several factors. First, some support provisions for some commodities had
been extended through 1997 by budget savings action taken in the Agricultural
(continued...)

Policy officials and the agriculture community expected a 2007 farm bill to be
enacted before the end of calendar year 2007. However, lack of new commodity
support legislation before harvest in 2008 did little harm other than leaving producers
of “covered commodities” uncertain about the size of payments they might receive.8
The uncertainty about future policy could have affected some farmers’ ability to
acquire production loans from commercial lenders. But even if Congress had
deemed a one- or two-year extension necessary for the commodity support programs
beyond the 2007 crop year, that action likely could have waited until June 2008,
when winter wheat — the first of the 2008 crop year commodities — was harvested.9
Possible Reversion to Permanent Law
If Congress had not enacted the 2008 farm bill before the beginning of the 2008
harvest, then the non-expiring provisions of primarily the Agriculture Adjustment
Act of 1938 and the Agriculture Act of 1949 would have taken effect. Provisions of
these permanent laws are temporarily superseded by each farm bill. The commodity
support provisions of permanent law are so radically different from current policy —
and inconsistent with today’s farming, marketing, and trade agreements, as well as
potentially costly to the federal government — that Congress was unlikely to let
permanent law take effect.
Permanent law provides mandatory support for basic crops through nonrecourse
loans, but without the option of settling the loan obligations at posted county prices
or receiving loan deficiency payments. The only settlement options in permanent law
are forfeiture of the commodities used as loan collateral or full repayment of the
loans. Permanent law does not authorize counter-cyclical payments or decoupled
direct payments. Also, nonrecourse loan rates could be as high as 90% of parity but
not less than 50% of parity for corn, wheat, and rice, and 65% of parity for cotton.10
Acreage allotments and marketing quotas could be implemented for wheat and
cotton. Milk support would be between 75% and 90% of parity. Support for
soybeans, other oilseeds, and peanuts would not be mandatory. Other commodities


7 (...continued)
Reconciliation Act of 1993 (P.L. 103-66, Sections 1101-1111). Second, a 1995 farm bill
was included in a large budget reconciliation package (H.R. 2491) that was vetoed on
December 6, 1995, by President Clinton.
8 Under the 2002 farm bill, farmers receiving direct payments have the option of receiving
them in the calendar year prior to the applicable crop year. This provision allows farmers
to possibly achieve tax savings. The delay of the farm bill until 2008 precluded the
possibility for farmers to receive part of their 2008 direct payment in calendar year 2007.
9 Milk is a commodity that required attention before the end of 2007, because the dairy price
support program was scheduled to expire on December 31, 2007. The temporary extensions
avoided the reversion to permanent law, whereby the government would have been obligated
to purchase surplus cheese, nonfat dry milk, and butter at prices substantially higher than
current support prices.
10 Parity is a price relationship that gives a unit of the commodity the same purchasing power
it had in the 1910-1914 time period. (Average prices received by farmers and commodity
parity prices are reported monthly by the USDA’s National Agricultural Statistics Service
report, Agricultural Prices.

now receiving mandatory support but not identified in permanent law are: sugar
beets, sugar cane, wool, mohair, small chickpeas, dry peas, and lentils.
For wheat and cotton, permanent law requires USDA to announce acreage
allotments and marketing quotas during the prior crop year, and to hold producer
referenda on whether to implement marketing quotas. A two-thirds or more
affirmative producer vote for marketing quotas results in the highest levels of
support, but also mandatory restrictions on planted acreage and therefore on the
quantity eligible for support. For this analysis, it is assumed the Secretary announces
no marketing quotas, and thus no producer referenda. Therefore, the only
requirement is to announce wheat acreage allotments prior to the 2008 harvest.11
Table 1 summarizes the support estimates based on these assumptions.
As shown in Table 1, not all commodities currently receiving federal support
would be covered by mandatory provisions in permanent law. The commodities
losing mandatory support include peanuts, wool, mohair, sugar beats and sugar cane,
soybeans and other oilseeds, dry peas, lentils, and small chick peas. Any and all of
these commodities could receive support under discretionary authority given the
Secretary of Agriculture in the Agriculture Act of 1949 and the CCC Charter Act.
For budgetary and other reasons, that discretionary authority has been seldom used
and was unlikely to be applied in 2008. Important to this supposition is the fact that,
with few exceptions, market prices for agricultural commodities are high and there
would be little economic justification for federal support to be implemented.
Milk is supported currently and in permanent law through the offer of USDA
to purchase manufactured dairy products (nonfat dry milk, cheddar cheese, and
butter) at prices equivalent to the mandated support price for manufacturing grade
milk. Under permanent law those purchase prices (based on January 2008 data)
would be about three times as high a currently mandated and nearly 50% higher than
market prices. Such high USDA purchase prices could result in the government
outbidding commercial markets for a sizeable share of processor output. Under the

2002 farm bill, permanent law would have taken effect on January 1, 2008.


However, temporary extensions continued the dairy price support program.
Under permanent law, nonrecourse loan rates for wheat, corn, and other feed
grains, and cotton function as USDA purchase prices. Unless commercial markets
pay more than the nonrecourse loan prices, farmers simply put their crops under loan
and forfeit the commodities to USDA when the nine-month loans come due. Thus
loan prices effectively are government purchase prices. When market prices are
lower than the nonrecourse loan rates, commercial buyers have to raise their prices
to outbid the USDA to acquire wheat, feed grains, and cotton. These crop subsidy
programs were not extended beyond the 2007 crop year by the temporary extensions.


11 In fact, USDA issued press releases on April 5, 2007 (FSA News Release No. 1439.07),
and September 25, 2007 (FSA News Release No. 1526.07), stating there would be no
national acreage allotments or marketing quotas for, respectively, crop year 2008 wheat and
cotton under the 1938 Act.

Table 1. Average Prices Received and Parity Prices for Farm Products,
and Support Provisions Under Permanent Law
CommodityFarmParityFarmMinimum Support Provisions UnderMinimum
and UnitMarketPrice, JanbPrice asPermanent Law (Agricultural AdjustmentcLoan /
Price, Jana2008% ofAct of 1938 and Agricultural Act of 1949)Purchase
2008Parity,Price Under
Jan 2008Permanent
Law
Basic Commodities
Wheat, Bu$8.55$12.0071%Nonrecourse loans and direct purchases. 75% parity =
Acreage allotments.$8.40
Quotas approved, loan rate = 65%-90% parity.
Quotas not approved, loan rate = 50% parity.
Quotas not announced, loan rate = 75%-90% of
parity.
Rice, Cwt$11.60$28.9040%Permanent authority repealed by P.L. 104-12750% parity =
(1981 farm bill), Sec 601, but restored by P.L.$15.15
104-127 (1996 farm bill), Sec. 171(b).
Loan rate = 50%-90% of parity.
Corn, Bu$4.28$7.5657%Nonrecourse loans and direct purchases.50% parity =
Acreage allotments are not authorized.$3.78
Loan rate = 50%-90% of parity.
Sorghum, Bu$4.61$7.5661%Support set in relation to feed value (TDN)$3.59
compared to corn (sorghum =95%, barley=90%,
oats=90%), and adjusted for differing bushelBarley, Bu$4.92$8.2660%$3.40
weights. Sorghum loan = 95% of corn loan,Oats, Bu$2.71$4.9155%$1.93
barley loan = 77% of corn, oats = 51% of corn.
Cotton,$0.614$2.0630%Nonrecourse loans and direct purchases.$1.34
Upland, LbAcreage allotments.
Quotas approve, loan rate = 65%-90% parity.
Quotas not approved, loan rate = 50% parity
Quotas not announced, loan rate = 65%-90%
parity.
Peanuts, Lb$0.220$0.78528%Permanent authority repealed by P.L. 107-171none
(1996 farm bill), Title I, Subtitle C.
Designated Nonbasic Commodities
Milk, Mfg, Cwt$20.10$40.4050%Purchases of milk and butterfat products at75% parity =
75%-90% of parity.$30.30
Direct payments under Milk Income Lossnone
Contracts (MILC)
Honey, Lb$1.04$2.7438%Purchases of honey at 60%-90% of parity.$1.60
Wool, Lb$0.88$1.8049%Permanent authority repealed by P.L. 103-130.none
Mohair, Lb$2.78$8.3333%Permanent authority repealed by P.L. 103-130.none
Other Nonbasic Commodities
Sugar, RefinednanaTariff rate quotas continue under authority ofnone
Beetchapter 17 of the Harmonized Tariff Schedule of
the United States, Additional Note 5.Sugar, Rawnananone


Can e

CommodityFarmParityFarmMinimum Support Provisions UnderMinimum
and UnitMarketPrice, JanbPrice asPermanent Law (Agricultural AdjustmentcLoan /
Price, Jana2008% ofAct of 1938 and Agricultural Act of 1949)Purchase
2008Parity,Price Under
Jan 2008Permanent
Law
Soybeans, Bu$11.00$18.7059%none
Sunflower $20.90 $37.70 55% none
Seed, Cwt
Rapeseed, Cwt$17.70$38.8046%none
Permanent law includes no mandatory supportCanola, Cwt$20.00$34.3058%none
for these other nonbasic commodities. Safflower, Cwt$18.70$42.2044%none
However, Sec. 301 of the Agricultural Act of
1949, and in the Commodity Credit CorporationFlaxseed, Bu$13.90$20.2069%none
Charter Act give discretionary authority to theMustard Seed,$19.80$44.9044%none
Secretary of Agriculture to “make availableCwt
through loans, purchases, or other operations
price support to producers for any nonbasicCrambenanananone
agricultural commodity ... [not otherwise
designated for mandatory support]....”Sesame Seednanananone
Ch i ckp eas, $16.10 na na none
Small, Cwt
Peas, Dry, Cwt$15.50nananone
Lentils, Cwt$28.50nananone
a. Average January 2008 prices received by farmers as reported by USDA, NASS. January prices are not available
for all commodities, so marketing year 2007 prices are used for wool, rapeseed, safflower, mustard, and small
chickpeas; 2006 prices are used for honey and mohair.
b. Reported by USDA, NASS, Agricultural Prices, January 2008. Parity prices are computed under the provisions
of Title III, Subtitle a, Section 301 (a) of the Agricultural Adjustment Act of 1938 as amended by the
Agricultural Acts of 1948, 1949, and 1956.
c. An explanation of permanent law is provided by USDA, ERS, Possible Economic Consequences of Reverting
to Permanent Legislation or Eliminating Price and Income Support, AER 526, January 1985. For purposes
of this table it is assumed permanent law is implemented without time to hold producer referenda on national
quotas and so mandatory support would be implemented without marketing quotas.
Conservation Programs12
Many of the USDA conservation programs administered by the Natural
Resources Conservation Service (NRCS) deal with evaluating the causes and severity
of resource problems, developing physical and management systems to address the
problems, and providing technical and financial assistance to farmers implementing
preventive and remedial practices. The cost of these programs largely relates to
agency personnel who provide specialized technical training, cost-sharing with
farmers, and administrative overhead. Conservation program spending recently has
averaged about $5 billion annually.
While most of the larger conservation programs were authorized by the 2002
farm bill and would have expired the end of FY2007, several mostly older programs,
with total spending about $1 billion, are permanently authorized and appropriations


12 This section on conservation programs is written by Tadlock Cowan, Analyst in Natural
Resources Policy, CRS. It was initially composed by Jeffrey A. Zinn.

committees are to provide such sums as necessary to meet program needs. Thus,
there is no constraint on appropriators in future years. As with most appropriated
(discretionary) programs, funding depends heavily on budget requests from the
administering executive agency. So, the future of these programs, short of a change
in the permanent authorizing law, largely is in the hands of the appropriators. These
programs are listed at the top of Table 2.
The Food Security Act of 1985 (P.L. 99-198) and subsequent amendments have
become the legal foundation for another set of programs that now account for almost
$4 billion, 80% of USDA conservation spending. Most of these programs are
administered by NRCS, while the largest (the Conservation Reserve Program (CRP))
is administered by USDA’s Farm Service Agency (FSA), with support from NRCS.
The original authorizing legislation expired in 1990, but has been extended and
amended by periodic farm bills. Many of these programs were extended by the 2002
farm bill and most of the programs expired September 30, 2007. However, the
temporary farm bill extensions continued these programs.
The absence of new mandatory program authority likely would mean that no
new contracts could be signed with farmers. All existing contracts would stay in
force for their specified lives, and payments would continue to be made on the
existing contracts. Three mandatory conservation programs were funded at specific
levels by the temporary extensions — the Farmland Protection Program ($97
million), the Wildlife Habitat Incentives Program ($85 million), and the Ground and
Surface Water Conservation Program ($60 million). Also, two programs, the
Environmental Quality Incentives Program (EQIP) and the Conservation Security
Program (CSP), have been extended in earlier legislation to FY2010 and FY2011,
respectively. The mandatory conservation programs are listed in the bottom half of
Table 2, with their temporary expiration dates.
Table 2. Conservation Program Authorization and Funding
Permanently Authorized and Funded with Annual Appropriationsa
Expiration of
ProgramAppropriations Authority
(prior to 2008 farm bill)
Conservation Technical AssistanceNo expiration date (n.e.d.)
Soil Surveys(n.e.d.)
Watershed Planning and Surveys(n.e.d.)
Watershed and Flood Prevention Operations(n.e.d.)
Watershed Rehabilitation ProgramMay 23, 2008c
Resource Conservation and Development (RC&D)(n.e.d.)
Agricultural Management Assistance Program(n.e.d.)
Emergency Watershed Program(n.e.d.)
Emergency Conservation Program(n.e.d.)



Programs with Mandatory Fundingb
ProgramExpiration of Program Authority
Conservation Reserve Program (CRP)May 23, 2008c
Farmland Protection Program (FPP)May 23, 2008c
Wildlife Habitat Incentives Program (WHIP)May 23, 2008c
Grassland Reserve Program (GRP)May 23, 2008c
Ground and Surface Water ProgramMay 23, 2008c
Wetlands Reserve Program (WRP)May 23, 2008c
Watershed Rehabilitation ProgramMay 23, 2008c
Environmental Quality Incentives Program (EQIP)Sept. 30, 2010d
Conservation Security Program (CSP)Sept. 30, 2011d
Agricultural Management Assistance(n.e.d.)
a. With the exception of the Watershed Rehabilitation Program (authorized at $85 million in
FY2007), these programs all are authorized to indefinitely receive appropriations of such sums
as necessary.
b. With one exception, these programs were initially authorized by the Food Security Act of 1985
(P.L. 99-198), or amendments to that act. The Watershed Rehabilitation Program was initially
authorized by amendment to the Watershed Protection and Flood Prevention Act (P.L. 106-
472). All of these programs were extended through FY2007 by the 2002 farm bill.
c. Each of these conservation programs expired on September 30, 2007, under their 2002 farm bill
program authority. Temporary extensions have continued their authority.
d. Subsequent to the 2002 farm bill, the Deficit Reduction Act of 2005 (P.L. 109-171) authorized the
Environmental Quality Incentives Program (EQIP) through FY2010, and the Conservation
Security Program (CSP) through FY2011.
Nutrition Programs13
At the end of FY2007 (and with no enacted farm bill to extend them), a number
of authorities in domestic food assistance laws expired. They effectively were
extended by a series of appropriations actions and temporary farm bill extensions.
Because the Appropriations Act provided funding for all domestic food assistance
programs through the end of FY2008, most programs (and the terms and conditions
under which they operate) would have been unaffected if temporary extensions
expired without new legislation. However, some provisions of domestic food
assistance law would have terminated.
Without some action, authority to continue to pay out nutrition assistance grants
to Puerto Rico and American Samoa (totaling some $1.6 billion for FY2008) would
have terminated without a temporary extension. Provisions allowing USDA to
reduce, by just under $200 million a year, states’ regular federal matching payments
for food stamp administrative costs also would have terminated without a temporary
extension. This authority is intended to adjust for administrative costs shared with
other federally supported public assistance programs.


13 This section on nutrition programs is written by Joe Richardson, Specialist in Domestic
Social Policy, CRS.

Other, less significant authorities that would have been affected include:
!continuation of several food stamp pilot projects in which elderly or
disabled recipients receive cash benefits,
!$5 million in grants for simplified application projects,
!$5 million in grants for community food projects,
!a directive for minimum, per-case administrative cost payments for
Commodity Supplemental Food Program (CSFP) projects,
!provisions regarding the amounts of cheese and nonfat dry milk to
be provided to the CSFP, and
!provisions regarding contracting with private companies to process
USDA-donated commodities.14
Trade and Foreign Food Aid Programs15
Several agricultural trade and international food aid programs were subject to
expiration unless a new farm bill was enacted. In fact, a short-term expiration
occurred between May 22, 2008, and June 18, 2008 — that is, the period between
enactment of the 2008 farm bill without Title III (P.L. 110-234) and enactment of the
version with Title III (P.L. 110-246).
These trade programs were authorized by the 2002 farm bill to receive
mandatory funding. The programs in question regarding expiration were export
credit guarantees, export credit guarantees for emerging markets, facilities credit
guarantees, export market promotion, general export and dairy export subsidies, and
technical assistance for specialty crops.
Authority to carry out international emergency and non-emergency food aid
programs is provided by P.L. 480, the Agricultural Trade Development and
Assistance Act. Several authorities in P.L. 480 expired without a temporary
extension or a new farm bill. These include the authorization of minimum volumes
of commodity assistance under Title II (Title II of P.L. 480, emergency and private
assistance), the authority to finance sales (Title I) or enter into agreements to provide
commodities for emergencies or development projects (Title II), and the authority to
carry out P.L. 480-financed agricultural technical assistance in sub-Saharan African
and Caribbean countries. Authority to replenish stocks of the Bill Emerson
Humanitarian Trust, a reserve of commodities and cash used to meet unanticipated
food aid needs, also expired without temporary extension.


14 The USDA has determined that other authorities that might appear to be affected would
not — e.g., continuation of the Senior Farmers’ Market Nutrition program, continued
funding for employment and training programs for food stamp recipients, support for
TEFAP. Moreover, ending the six affected authorities noted here may not, in the short term,
have a significant effect because of the existence of other authorities that could be used to
replace them or the timing of grant decisions.
15 This section on trade and aid programs is written by Charles Hanrahan, Senior Specialist
in Agricultural Policy, CRS.

Rural Development Programs16
Most rural development loan and grant programs are authorized through
permanent law and funded through annual appropriations, which were received for
FY2008 in the Consolidated Appropriations Act (P.L. 110-161). However, several
mandatory rural development programs were newly authorized or extended by the
2002 farm bill. These programs expired on September 30, 2007, and were not
included in the temporary extensions:
!Enhanced Rural Access to Broadband Technology Program;
!Value-Added Product Development Grants Program;
!Renewable and Alternative Energy Systems Grant Program.
Historical Farm Bill Chronology of Major Actions
1973 Farm Bill
P.L. 93-86 (S. 1888), an original bill to extend and amend the Agricultural Act
of 1970 for the purpose of assuring consumers of plentiful supplies of food and fiber
at reasonable prices
Summary of Major Actions
Introduced May 23, 1973.
Enacted August 10, 1973.
Expiration:
!Appropriations authorities expire June 30, 1977.
!Commodity support authorities expire after the 1977 crop year.
Chronology of Major Actions
05/23/1973 — S. 1888 introduced in Senate

05/23/1973 — S. 1888 reported to Senate, S.Rept. 93-173.


06/08/1973 — S. 1888 passed by roll call vote (78-9).


06/20/1973 — H.R. 8860 introduced in House

06/27/1973 — H.R. 8860 reported to House, H.Rept. 93-337.


07/19/1973 — H.R. 8860 laid on table in House, S. 1888 passed in lieu.


08/10/1973 — Signed by President.


1977 Farm Bill
P.L. 95-113 (S. 275), Food and Agriculture Act of 1977


16 This section on rural development programs is written by Tadlock Cowan, Analyst in
Natural Resources Policy, CRS.

Summary of Major Actions
Introduced January 18, 1977.
Enacted September 29, 1977.
Expiration:
!Appropriations authorities expire September 30, 1981.
!Commodity support authorities expire after the 1981 crop year.
Chronology of Major Actions

01/18/1977 — S. 275 introduced in Senate.


05/13/1977 — H.R. 7171 introduced in House.


05/16/1977 — Reported to Senate, S.Rept. 95-180.


05/16/1977 — H.R. 7171 reported from the House Ag. Committee, H.Rept. 95-348.


05/24/1977 — Passed Senate by roll call, 69-18.


07/28/1977 — Passed House in lieu of H.R. 7171 by roll call, 294-114.


09/09/1977 — Conference report S.Rept. 95-418 agreed to 9/12/1977 by roll call,


63-8.


09/16/1977 — Conference report agreed to in House by roll call, 283-107.


09/29/1977 — Signed by President.


1981 Farm Bill
P.L. 97-98 (S. 884), Agriculture and Food Act of 1981
Summary of Major Actions
Introduced April 7, 1981.
Enacted December 22, 1981.
Expiration:
!Appropriations authorities expire September 30, 1985.
!Commodity support authorities expire after the 1985 crop year.
Chronology of Major Actions

04/07/1981 — S. 884 introduced in Senate.


05/18/1981 — H.R. 3603 introduced in House.


05/19/1981 — Reported by House Ag. Committee, H.Rept. 97-106, Part I. Reported
by House Committee on Appropriations 6/11/1981, H.Rept. 97-106, Part II.
Reported by House Committee on Ways and Means on 6/19/1981, H.Rept.
97-106, Part III. Discharged by House Committee on Banking, Finance and
Urban Affairs on 6/19/1981.
05/27/1981 — S. 884 reported by Senate Ag. Committee under the authority of the
order of May 21, 1981, with written report S.Rept. 97-126.

09/18/1981 — Passed Senate by yeas-nays, 49-32.


10/22/1981 — Passed House by yeas-nays, 192-160.


12/09/1981 — Conference Report H.Rept. 97-377 filed in House.


12/10/1981 — Conference report agreed to in Senate by yeas-nays, 67-32.


12/10/1981 — Conference report S.Rept. 97-290 filed in Senate on the disagreeing
votes of the two Houses on the amendments of the House.



12/16/1981 — Conference report agreed to in House by yeas-nays, 205-203.


12/22/1981 — Signed by President.


1985 Farm Bill
P.L. 99-198 (H.R. 2100), Food Security Act of 1985
Summary of Major Actions
Introduced April 17, 1985.
Enacted December 23, 1985.
Expiration:
!Appropriations authorities expire September 30, 1990.
!Commodity support authorities expire after the 1990 crop year.
Chronology of Major Actions

04/17/1985 — H.R. 2100 introduced in House.


09/13/1985 — Reported to House by House Ag. Committee, H.Rept. 99-271, Part
I; and reported to House by House Committee on Merchant Marine and
Fisheries on 9/19/1985, H.Rept. 99-271, Part II.
09/19/1985 — Senate Ag. Committee incorporated provisions of related measures
S. 501, S. 616, S. 843, S. 908, S. 1036, S. 1041, S. 1051, S. 1083, S. 1119, S.
42, S. 171, S. 1040, S. 1049, S. 1050, S. 250, S. 1069 into a single measure that
was ordered to be reported.
09/30/1985 — S. 1714 introduced in Senate and reported to Senate with written
report S.Rept. 99-145.

10/08/1985 — H.R. 2100 passed House by yeas-nays, 282-141.


11/23/1985 — H.R. 2100 passed Senate in lieu of S. 1714 by yeas-nays, 61-28.


12/17/1985 — Conference Report H.Rept. 99-447 filed in House and agreed to in
House on 12/18/1985 by yeas-nays, 325-96; and agreed to in Senate by yeas-
nays, 55-38.

12/23/1985 — Signed by President.


1990 Farm Bill
P.L. 101-624 (S. 2830), Food, Agriculture, Conservation, and Trade Act of 1990
Summary of Major Actions
Introduced July 6, 1990.
Enacted November 28, 1990.
Expiration:
!Appropriations authorities expire September 30, 1995.
!Commodity support authorities expire after the 1995 crop
year.
!As a buget savings action, some support provisions for several
commodities were reduced and extended beyond 1995 by P.L.

103-66 (Omnibus Budget Reconciliation Act of 1993).



Support for milk was extended through 1996. Some
provisions affecting cotton, wheat, feedgrains, rice, peanuts,
wool, and mohair were extended through 1997. Support for
honey was extended through 1998.
Chronology of Major Actions

02/05/1990 — H.R. 3950 introduced in House.


07/03/1990 — H.R. 3950 reported by the House Ag. Committee with H.Rept.


101-569, Part I. Reported 7/16/1990 by the Committee on Foreign Affairs,


H.Rept. 101-569, Part II. Supplemental report filed 7/17/1990 by the House Ag.
Committee, H.Rept. 101-569, Part III. Reported 7/18/1990 by the Committee
on Education and Labor, H.Rept. 101-569, Part IV. Reported 7/18/1990 by the
Committee on Ways and Means, H.Rept. 101-569, Part V, filed late, pursuant
to previous special order. Discharged 7/18/1990 by the Committee on Merchant
Marine and Fisheries.

07/06/1990 — S. 2830 introduced in Senate.


07/06/1990 — S. 2830 reported to Senate under the authority of the order of June 26,


1990, with written report S.Rept. 101-357.


07/27/1990 — S. 2830 passed Senate by yeas-nays, 70-21.


08/01/1990 — H.R. 3950 passed House by recorded vote, 327-91.


08/04/1990 — S. 2830 passed in House without objection.


10/22/1990 — Conference report H.Rept. 101-916 filed.


10/23/1990 — Conference report agreed to in House by yeas-nays, 318-102.


10/25/1990 — Conference report agreed to in Senate by yeas-nays, 60-36.


11/28/1990 — Signed by President.


1996 Farm Bill
P.L. 104-127 (H.R. 2854), Federal Agriculture Improvement and Reform Act
of 1996
Summary of Major Actions
Introduced January 5, 1996.
Enacted April 4, 1996.
Expiration:
!Appropriations authorities expires September 30, 2002.
!Commodity support authority expires after the 2002 crop year.
Chronology of Major Actions

08/04/1995 — H.R. 2195 introduced in House.


09/20/1995 — H.R. 2195 marked up by House Ag Committee and voted down.


09/28/1995 — Senate Ag Committee completed markup and approved unnumbered
farm bill.

10/26/1995 — H.R. 2195 included in H.R. 2491, Balanced Budget Act of 1985.


H.R. 2491 approved by House on 10/26.



10/28/1995 — Senate Ag Committee farm bill approved as part of the Balanced
Budget Reconciliation Act of 1995 (S. 1357), which was incorporated in H.R. 2491
and approved.

12/06/1995 — H.R. 2491 was vetoed by the President.


01/05/1996 — H.R. 2854 introduced in House.


01/26/1996 — S. 1541 introduced in Senate.


02/07/1996 — S. 1541 passed Senate by yeas-nays, 64-32.


02/09/1996 — H.R. 2854 reported by House Ag. Committee with H.Rept. 104-462,


Part I, and discharged on 2/9/1996 by Committee on Ways and Means.

02/29/1996 — H.R. 2854 passed House by yeas-nays, 270-155.


03/12/1996 — H.R. 2854 passed Senate by voice vote.


03/25/1996 — Conference report H.Rept. 104-494 filed.


03/28/1996 — Conference report agreed to in Senate by yeas-nays, 74-26.


03/29/1996 — Conference report agreed to in House by recorded vote, 318-89.


04/04/1996 — Signed by President.


2002 Farm Bill
P.L. 107-171 (H.R. 2646), Farm Security and Rural Investment Act of 2002
Summary of Major Actions
Introduced July 26, 2001.
Enacted May 13, 2002. Provisions applied to 2002 crops, superseding the unexpired
provisions of the 1996 farm bill.
Expiration:
!Appropriations authorities expire September 30, 2007.
!Commodity support authorities expire after the 2007 crop year.
Chronology of Major Actions

07/26/2001 — H.R. 2646 introduced in House.


08/02/2001 — H.R. 2646 reported by House Ag. Committee, H.Rept. 107-191, Part
I. Supplemental report filed 8/31/2001 by House Ag. Committee, H.Rept.
107-191, Part II. Reported by the Committee on International Relations

9/10/2001, H.Rept. 107-191, Part III.


10/05/2001 — Passed in House by yeas-nays, 291-120.


11/27/2001 — S. 1731 introduced in Senate and reported to Senate by the Senate Ag.


Committee without a written report. S.Rept. 107-117 was filed on 12/7/2001.

02/13/2002 — Passed in Senate in lieu of S. 1731 by yeas-nays, 58-40.


05/01/2002 — Conference report H.Rept. 107-424 filed.


05/02/2002 — Conference report agreed to in House by yeas-nays, 280-141.


05/08/2002 — Conference report agreed to in Senate by yeas-nays, 64-35.


05/13/2002 — Signed by President.



2008 Farm Bill
P.L. 110-246 (H.R. 6124), Food, Conservation, and Energy Act of 2008
Summary of Major Actions
Introduced May 22, 2007.
Enacted June 18, 2008.
Expiration:
!Appropriations authorities expire September 30, 2012.
!Commodity support authorities expire after the 2012 crop year.
Chronology of Major Actions

05/22/2007 — H.R. 2419 introduced in House.


07/23/2007 — H.R. 2419 reported by House Ag. Committee, H.Rept. 110-256.


07/23/2007 — H.R. 2419 discharged by Committee on Foreign Affairs.


07/27/2007 — H.R. 2419 passed in House (231-191).


12/14/2007 — H.R. 2419 passed in Senate, with substitute language (79-14).


Short-term extensions

12/26/2007 — P.L. 110-161 (Consolidated Appropriations Act of 2008)


included language to extend the 2002 farm bill, with specific exceptions,
until March 15, 2008 (Division A, Title VII, Sec. 751).
03/14/2008 — P.L. 110-196 further extended the 2002 farm bill and suspended
permanent price support authority until April 18, 2008.
04/18/2008 — P.L. 110-200 continued to extend the 2002 farm bill as in the
previous extension until April 25, 2008.
04/25/2008 — P.L. 110-205 continued to extend the 2002 farm bill as in the
previous extension until May 2, 2008.
05/02/2008 — P.L. 110-208 continued to extend the 2002 farm bill as in the
previous extension until May 16, 2008.

05/14/2008 — H.R. 2419 conference agreement passed in House (318-106).


05/15/2008 — H.R. 2419 conference agreement passed in Senate (81-15).


05/18/2008 — P.L. 110-231 continued to extend the 2002 farm bill as in the
previous extension until the earlier of May 23, 2008, or enactment of the

2008 farm bill.


05/21/2008 — H.R. 2419 vetoed by President Bush (enrolled without Title III).


05/21/2008 — H.R. 2419 passed in House over veto (316-108).


05/22/2008 — H.R. 2419 passed in Senate over veto (82-13).


05/22/2008 — H.R. 2419 became P.L. 110-234 (without Title III).


05/22/2008 — H.R. 6124 passed in House (306-110, text of H.R. 2419 with Title III).


06/05/2008 — H.R. 6124 passed in Senate (77-15).


06/18/2008 — H.R. 6124 vetoed by President Bush.


06/18/2008 — H.R. 6124 passed in House over veto (317-109).


06/18/2008 — H.R. 6124 passed in Senate over veto (80-14).


06/18/2008 — H.R. 6124 became P.L. 110-246 (and superseded P.L. 110-234).