By John Crabtree, johnc@cfra.org, Center for Rural Affairs

The House Agriculture Committee's draft farm bill is deeply disappointing.

It would make federal subsidies for crop insurance premiums the primary farm program, but impose no payment caps, no income limits for recipients and no conservation requirements. Mega farms would get unlimited subsidies to bid land away from small, mid-size and beginning farmers.

For traditional farm programs, the draft would increase the commodity payment limit by 250 percent above generous Senate-passed levels. Unlike the Senate bill, however, it would leave current loopholes that invite widespread farm program abuse wide open. It would also reduce acreage enrollment for the Conservation Stewardship Program by a staggering 30 percent at a time when record numbers of farmers are enrolling acres into the program.

But that's not all, this farm bill would remove restrictions on subsidies intended to protect native grasslands everywhere except one small region of the Northern Great Plains. It would slash investment in programs for beginning farmers and ranchers by half. It would cut investment in proven job-creating rural development initiatives by 88 percent.

The House's draft farm bill fails to deliver for family farmers and ranchers, rural communities and the natural environment. The Committee should address these deficiencies when they take up the bill this week and, failing that, all members of Congress should prepare to debate these crucial issues on the House floor if there is any hope that this farm bill will reflect rural America's values and invest in a better future for our rural communities and the people that live there.

By John Crabtree, johnc@cfra.org, Center for Rural Affairs

The U.S. Supreme Court recently upheld the constitutionality of the Patient Protection and Affordable Care Act, also known as Obamacare.

The Center for Rural Affairs has said from the beginning, the Affordable Care Act is a perfectly legal response to the health care and health insurance challenges facing millions of Americans and rural Americans in particular. The Supreme Court's ruling will continue the already existing benefits and protections helping young adults, Medicare beneficiaries, children, and every one of us from unreasonable health insurance rate increases.

The Supreme Court decision also authorizes states to implement the system that allows Americans to purchase affordable, comprehensive health insurance coverage beginning in 2014. For those of us living in rural America, where we are more likely to be uninsured or underinsured, and where local economies are even more dependent on self-employment and small business, this ruling is a true victory.

It is now time to move forward in implementing the Affordable Care Act and the federal Department of Health and Human Services as well as the states should take action to fully implement the Act and immediately establish health insurance marketplaces with serious consumer protections and a robust governing board. Congress should also continue investing in access to medical professionals in medically underserved rural areas and maintaining rural hospitals.

Now that the legal wrangling is complete, it's time to bind up the nation's political wounds and get about the business of resolving the health care challenges facing the nation and its people.

By John Crabtree, johnc@cfra.org, Center for Rural Affairs

The Farm Bill, which helps set the nation's food, farm and rural policy, passed the U.S. Senate on June 22nd.

Some eleventh hour victories were won for rural communities in the Senate debate. The Senate bill made modest but significant commitments to funding beginning farmer and rancher training, rural small business assistance, help for small town water and sewer systems and value-added enterprise grants for family farmers and ranchers, thanks to passage of an amendment offered by Senator Sherrod Brown (D-OH). These are vitally important steps forward for rural America.

The bill's greatest weakness, however, is that there is no limit on crop insurance premium subsidies doled out to the nation's largest farms. More than 10,000 large farms received over $100,000 in premium subsidies just last year - a year of record income.

While the Senate bill does close loopholes in the cap on traditional farm program payments to large farms, requires recipients of crop insurance subsidies to practice some conservation and denies premium subsidies on native grasslands broken out for crops, it will continue over-subsidizing crop insurance premiums for mega-farms, helping them drive out small, mid-sized and beginning farmers.

As the debate moves to the House of Representatives, those of us who are concerned about the future of rural America must stand up for the modest, hard-fought victories won on the Senate floor. Likewise, we must join the call for a much-needed cap on crop insurance premium subsidies to the nation's largest farms.


For more information visit www.cfra.org.

Center for Rural Affairs voices mixed reaction to Senate Farm Bill

Lyons, NE - Today the United States Senate passed their version of the 2012 Farm Bill by a vote of 64-35.

"The farm bill that passed the Senate today funds beginning farmer and rancher training, small business loans and assistance, grants and loans for small town water and sewer systems and value-added enterprise grants for family farmers and ranchers," said Chuck Hassebrook of the Center for Rural Affairs. "These are vitally important steps forward for rural America."

But the Center for Rural Affairs also found real flaws in the Senate's Farm Bill. According to Hassebrook, the bill's greatest weakness is that there is no limit on crop insurance premium subsidies doled out to the nation's largest farms.

"More than 10,000 large farms received over $100,000 in premium subsidies last year - a year of record income. This bill will continue over-subsidizing crop insurance premiums for wealthy and powerful agribusiness interests, helping them drive out small, mid-sized and beginning farmers," explained Hassebrook.

"However, the bill does close loopholes in the cap on traditional farm program payments to large farms, requires recipients of crop insurance premium subsidies to practice some conservation and denies premium subsidies on native grasslands broken out for crops," concluded Hassebrook.

Lyons, NE - Either Thursday, June 21st or Monday, June 25th the Supreme Court will likely release their ruling on the constitutionality of the Patient Protection and Affordable Care Act, commonly known as Obamacare or the Affordable Care Act.

Rural policy experts with the Center for Rural Affairs will be available for comment on the outcome of the Supreme Court's ruling.

Since 2008, the Center for Rural Affairs has become the leading voice for health care reform in rural America. The Center played an instrumental role in winning support for the Affordable Care Act from key swing votes in the Midwest and Great Plains region.

The Center has authored a series of 16 reports dealing with how health care reform and the Affordable Care Act is impacting rural America. Visit http://www.cfra.org/policy/health-care/research to review or download earlier Center for Rural Affairs health care reports.

WHO: Center for Rural Affairs rural health policy experts will be available to comment on the Supreme Court's ruling when the Court issues its decision.

WHEN: Either Thursday June 21st or Monday, June 25th.

By Paul Mansoor, paulm@cfra.org, Center for Rural Affairs

People want wind energy, but don't want to pay a lot more for it. According to a new study, they may be able to have their cake--and eat it too.

Wind energy is attractive for economic reasons. A robust wind industry could bring hundreds of thousands of jobs and tens of billions of dollars per year into the economy, much of it in rural America.  But fear of higher prices has kept wind development grounded.

Although wind produces some of the cleanest energy, nobody wants higher electric rates. Wind towers are expensive. And in remote areas, developing new wind farms can require transmission improvements, which are necessary to send the electricity from producers to consumers. Power companies usually pass these costs onto ratepayers. This creates a bottleneck, stalling wind projects and keeping clean energy from getting off the ground.

However, introducing greater levels of wind together with smart system planning can decrease the annual market price relative to today. This means consumers would pay less for wind energy!

The key is to go "all in." The savings accrue when healthy wind development is combined with transmission upgrades. Installing just a few turbines at a time will cost more, on average, than multiple developments.

The case for wind energy keeps getting stronger. Job creation, clean energy and lower electric bills?

Change is coming... you can feel it in the breeze.

By Chuck Hassebrook, chuckh@cfra.org, Center for Rural Affairs

Small towns and the people who live in them are forgotten by the proposed new farm bill developed by the Senate Agriculture Committee.  It would be the first farm bill in decades to invest no funds in rural development.

But help may be on the way.  Senator Sherrod Brown (D-OH) is developing an amendment to change that.  It will likely be offered this week or next as the farm bill is debated by the full Senate.   Last week, 185 rural leaders and organizations from across the nation sent a letter to every U.S. Senator urging them to work with Senator Brown in securing farm bill investment in rural development.

Since, 2003, the federal investment in rural development has been cut by one-third, even as overall federal spending has grown.  Without farm bill funding, the Rural Microentrepreneur Assistance Program will wither, denying loans, training and business plan assistance for rural enterprises with up to ten employees.

Grants will be fewer for farmers and ranchers launching innovative value added enterprises. Training and other assistance will be cut in half for beginning farmers and ranchers seeking a place on the land and in our communities. The $3 billion waiting list will lengthen for small towns in need of federal help with critical water and sewer upgrades.

Ordinary rural people can't hire a bevy of high paid lobbyists. That makes it all the more critical that our Senators hear directly from us.  Rural people and communities should not be forgotten by the farm bill.

Lyons, NE - Today, the Center for Rural Affairs joined more than 185 leaders and rural organizations from across the nation in signing and sending a letter sent to every U.S. Senator expressing support for Federal investment in rural development in the Farm Bill currently being debated on the floor of the Senate.

The letter states that one of the proven job-creating titles of the farm bill is the Rural Development title, which authorizes essential grants and loan programs targeted at leveraging local initiatives to spur growth and opportunity in small towns and rural areas.

"If passed as it now stands, this will be the first farm bill in decades to provide no funding for small town and rural development..." Chuck Hassebrook, Center for Rural Affairs


"If passed as it now stands, this will be the first farm bill in decades to provide no funding for small town and rural development. Rural development has already been cut by one-third since 2003, mostly by the annual appropriations process through which Congress divides up the budget," said Chuck Hassebrook of the Center for Rural Affairs. "But passing a farm bill with no funding for job creating and community building rural development programs deepens that cut."

The Center for Rural Affairs and other signatories on the letter urged Senators to correct this deficiency by providing robust funding for the following successful Rural Development programs: Value-Added Producer Grants, Rural Microentrepreneur Assistance Program, Rural Energy Savings Program, and Rural Water and Wastewater Treatment Backlog.

"This letter demonstrates strong support for programs that create jobs and assist beginning farmers, small businesses and small towns across rural America," added Hassebrook.

The signatories also urged investment in the future of American agriculture. Specifically, the letter noted that, "The average age of an American agricultural producer today is 57, and if we let current trends go unchecked, that number will only increase.  Providing training and technical assistance to the next generation of farmers can help buck the trend and ensure future food security."

However, according to the letter, the Farm Bill passed by the Senate Agriculture Committee falls far short of maintaining current investment in the training tools that new and diverse farmers need to succeed.

"And that is why we are urging Senators to provide robust mandatory funding for the Beginning Farmer and Rancher Development Program and Outreach for Socially Disadvantaged and Minority Producers (Section 2501 program)," Hassebrook explained.

The complete letter, including signatories is available here: http://files.cfra.org/pdf/Support-Letter-Brown-Amendment.pdf

Statement in response by Chuck Hassebrook, Center for Rural Affairs


Lyons, NE - An analysis of over a million government records pertaining to federal crop insurance has found that in 2011 more than 10,000 individual farming operations have received federal crop insurance premium subsidies ranging from $100,000 to more than $1 million apiece. The analysis found that some 26 farming operations received subsidies of $1 million or more last year.

According to the Environmental Working Group, the records have never before been made public and were obtained through the Freedom of Information Act.

"Subsidized crop insurance premiums have become the primary farm program," said Chuck Hassebrook of the Center for Rural Affairs. "And if one corporation farmed the entire Midwest, the government would pay over 60 percent of its crop insurance premiums on every acre."

"It's past time to put a cap on crop insurance premium subsidies and stop subsidizing mega farms to bid land away from smaller and beginning farmers, " Hassebrook added.

A copy of the Environmental Working Group (EWG) release, along with links to the analysis and supporting data, can be viewed and downloaded at http://static.ewg.org/pdf/2012cropinsurance.pdf .

According to the EWG analysis, U.S. taxpayers pick up an average of about 62 percent of the crop insurance premiums for farm businesses. Their share of these premiums has soared from $1.5 billion in 2002 to $7.4 billion in 2011. The subsidies go to large operators with no conservation strings attached to protect water and soil, no means testing, and no payment limit on how much a farm business can collect (excerpted from EWG release).

Among the facts disclosed in the EWG analysis:

  • A single farm business in Florida received $1.9 million in subsidies for premiums to insure crops of tomatoes and peppers in five counties.
  • A Minnesota farm business insuring corn and soybeans in eight counties received $1.7 million in federal crop insurance subsidies.
  • In Texas, the 10 percent of farm businesses that received the greatest amount of insurance subsidies harvested 63 percent of all the crop insurance subsidies that went into the state last year.
  • The 10 percent of North Dakota farm businesses that received the greatest amount of insurance subsidies took in 45 percent of the subsidies going to all farms in the state.

By Chuck Hassebrook, chuckh@cfra.org, Center for Rural Affairs

It's election year and the perfect time to talk to candidates about critical rural issues.   An elected official is most likely to make a commitment to you when seeking your vote.   So seize the opportunity.  Commitments are harder to get after the election.

There are a few simple steps you can take.  None requires detailed policy knowledge or expertise.

First, tell them who you are - a voter in their district and current or potential constituent.  That gives you credibility.  If you are an elected official, farmer, community developer, community volunteer or small business person - tell them that too.

Ask for a commitment.  If you want Congress to cap payments to mega farms and invest in rural development, conservation and beginning farmer programs, first tell them what you want.   But don't stop there.  Ask them, "Will you promise to support funding for rural development?" or whatever else you request.

Finally, establish a personal relationship and follow-up.   Stay after the formal meeting to shake the candidate's hand, thank him/her for coming and provide your business card or your name and address scribbled on a scrap of paper.  Ask who on their staff you should contact when the issue comes up in the future.  When it does, get back to that person and, if you got a commitment, tell them.

You can make a difference.  It takes a little effort, but you can do it.  Campaign season is the best time to extract a commitment from an elected official to support good legislation.

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