Understanding the Farm Bill

Scott Faber Environmental Working Group

Understanding the Farm Bill

Not really a Farm Bill Helps Large Farmers, Not Family Farmers Protects and Restores the Environment Reduces Hunger Support Healthy Diets

Understanding the Farm Bill

Deep v Shallow Losses? Revenue v Price-Based Safety Net? Expands Crop Insurance
o Generous Subsidies o No Limits o No Transparency o No Environmental Protections

Cumulative Cost of Subsidies

250
200

Billions

150 100 50 0

Insurance Subsidies

Commodity and Disaster Payments

Rising Cost of Insurance Subsidies

10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

A&O Subsidy Premium Subsidy

Insurance Subsidy v Direct Payments

100 80 60 40 20 0 Direct Payment Per Acre Premium Subsidies Per Acre

Understanding the Farm Bill

http://farm.ewg.org/cropinsurance.php

The New York Times

June 6, 2012

When you can remove nearly all the risk involved and guarantee yourself a profit, its not a bad business decision, said Darwyn Bach, a farmer in St. Leo, Minn.

I can farm on low-quality land that I know is not going to produce and still turn a profit.

Wetland Loss
100000 0 -100000 Acres -200000 -300000

-400000
-500000

Source: US Fish and Wildlife Service

Understanding the Farm Bill

Senate Bill:
o Ends Direct Payments, Counter Cyclical Payments o Creates Shallow Loss Revenue Guarantee o Expands Crop Insurance o Cuts Conservation o Cuts Nutrition o New $ for Local/Healthy

Understanding the Farm Bill

Senate Bill:
o Reduces Insurance Premiums for Largest Farms o Requires Conservation Protections for Insurance Recipients o Does Not Cap Insurance Subsidies o No Transparency o Does Not Reduce Subsidies to Insurance Companies

Understanding the Farm Bill

House Bill:
o Deeper Cuts to Nutrition o Deeper Cuts to Conservation o Price-Based Safety Net o Less Support for Local and Healthy o Looming Deadline

Understanding the Farm Bill

Contact Information: Scott Faber (202) 939-9127 (202) 384-4280 sfaber@ewg.org www.ewg.org