Approval follows months of negotiations | Bill ends direct subsidies to farmers but adds permanent livestock disaster aid
WASHINGTON, D.C. (Reuters) — The U.S. House of Representatives passed a comprehensive farm bill last week that cuts payments for food stamps by about one percent and ends a direct subsidy to farmers, while expanding government-backed crop insurance programs.
After months of negotiations and criticism from both sides of the political spectrum, the measure passed easily, by 251 votes to 166, with 162 Republicans joining 89 Democrats in favour. The last farm bill, which passed in 2008, expired in September after being extended for one year while negotiators ironed out differences between measures approved in the House and Senate.
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A vote in the Democratic-run Senate was expected this week and the bill was expected to pass.
White House spokesperson Jay Carney said president Barack Obama would sign the legislation.
The wide-ranging legislation affects 16 million jobs in the country’s agricultural sector and can have an impact on the business landscape for major agricultural companies.
“This bill eliminates unnecessary subsidies, creates a more effective farm safety net and strengthens our commitment to conservation of land and water,” said Senate agriculture committee chair Debbie Stabenow .
The agriculture committees say the bill will save $23 billion over 10 years, compared with current funding, which is less than many conservative Republicans had hoped for. The Congressional Budget Office, using a different measurement, has estimated savings of $16.6 billion over a decade.
“All Americans stand to benefit in some way from this farm bill,” House speaker John Boehner said after the vote.
“This is an improvement over current law, and there are no earmarks.”
About $8 billion in savings over 10 years comes from cuts to the Supplemental Nutrition Assistance Program, commonly known as food stamps. That was well below the $40 billion cut advocated by the Republican-led House, which would have been the largest reduction in a generation, but it was still double the amount originally supported by Senate Democrats.
The legislation ends direct payment subsidies, which for years have been doled out to farmers and landowners to the tune of $5 billion a year, regardless of whether there is a need for support and whether they actually grew crops.
Instead, agriculture insurance programs would be expanded to help producers manage risk.
The bill would also establish permanent disaster assistance for livestock producers.
