Center for Rural Affairs applauds effort to close loopholes and cap payments

Lyons, Nebraska - Today, Senator Chuck Grassley (R-IA) and Senator Tim Johnson (D-SD) introduced legislation designed to tighten payment limits on federal farm commodity programs and close loopholes mega-farms use to evade limits, while ensuring small and mid-size family farmers have the kind of support farm programs were designed to deliver.

"This legislation represents the most important step congress can take to strengthen family farms - limit the subsidies that mega-farms use to drive smaller operations out of business," said Brian Depew, Acting Executive Director of the Center for Rural Affairs.

"The Grassley-Johnson bill includes measures to close the loopholes in farm payment limitations that others in Washington know how to close but won't, thanks to the political clout of mega-farms," Depew added.

In commenting the introduction of the bill, Senator Grassley stated, "When seventy percent of farm payments go to only ten percent of farmers, there's something wrong. It's time to change that. A safe, stable and affordable food supply is essential to social cohesion and a strong safety-net geared toward small and medium-sized farmers is an important part of making that happen."

Senator Johnson echoed that rationale, saying, "I have long believed that we must target our farm programs to the small and medium-sized family farmers that are the backbone of our rural economy. Senator Grassley and I acknowledge that the structure of the safety net is likely to change during the upcoming Farm Bill reauthorization process, and so we are introducing this bill to ensure that payment limits apply to the new structure."

According to Depew, the new Grassley-Johnson payment limits bill has a hard cap on marketing loan gains of $75,000 ($150,000 for a couple). The remainder of the payment limit would be a cap on the total amount a farmer can receive in safety-net payments in general.  For instance, if the Congress were to adopt a shallow loss program, the Grassley-Johnson bill would set a limit of $50,000 ($100,000 for a couple) that a farmer could receive.

Additionally, the bill closes loopholes that allow people with ties to farmland whose management consists of little more than an occasional phone call. The bill sets a measurable standard for someone to qualify as actively engaged in farming by providing management for the operation, and the bill provides an exception for farming operations where there is only one manager of the farm. This exception should help the Department of Agriculture administer the standard.

"The bill would tighten rules that are supposed to limit payments to active farmers who work the land and their landlords. Current law is weak. Investors who participate in one or two conference calls are considered active farmers, allowing mega-farms to get around payment limitations by claiming uninvolved investors as partners," explained Depew.

"The farm safety net was designed to help family farmers but it has increasingly led to a windfall for owners of our nation's largest farms. Congress should act to close the loopholes and better target payments to our small and mid-sized family farmers. This legislation represents our best chance to move forward with reforms as consideration of the farm bill continues," said Johnson.

National Sustainable Agriculture Coalition Releases its 2012 Farm Bill Platform

Lyons, NE - Today, the National Sustainable Agriculture Coalition released its comprehensive 2012 Farm Bill policy platform, Farming for the Future: A Sustainable Agriculture Agenda for the 2012 Food and Farm Bill.  The Center for Rural Affairs is a represented member of NSAC, and played an integral role in developing this platform.

"This platform includes a comprehensive set of farm bill proposals that will strengthen family farming and ranching systems, especially beginning farmers and ranchers," said Traci Bruckner, Assistant Policy Director at the Center for Rural Affairs and member of the Coalition's Coordinating Council. "These policies, if advanced, will help farmers and ranchers conserve soil and water, tap into high-value, niche markets; provide access to land and capital for the next generation of farmers and ranchers; level the playing field by capping subsidies to mega-farms and invest the savings in real family farmers and ranchers."

The last several Agriculture Censuses demonstrated large drops in the number of younger farmers involved in farming or ranching as their primary occupation. According to Bruckner, the revitalization of rural America depends, in large part, on reversing that trend.

"The Congressional debate over these issues is underway, with both Senate and House Agriculture Committees currently holding hearings aimed at writing a new farm bill," added Bruckner. "Past farm bills and the recent recession demonstrate the need for a farm bill that truly reforms farm programs and invests in creating real opportunities for family farmers, ranchers and rural communities."

Farming for the Future spans nearly every title in the farm bill and reflects a comprehensive approach to farm policy reform that will -

• Create jobs and spur economic growth through food and farms.

• Invest in the future of American agriculture.

• Enhance our natural resources and improve agricultural productivity.

• Drive innovation for tomorrow's farmers and food entrepreneurs.

• Make healthy food widely available today and for generations to come.

The platform document explains that the policy proposals therein are the culmination of over two years of policy work with a broad, diverse coalition of over 90 grassroots organizations from across the country.  And it reflects the real, urgent needs of farmers, ranchers, and food entrepreneurs across the country.

Of particular focus of the Center for Rural Affairs in this platform are the various provisions of the Beginning Farmer and Rancher Opportunity Act, a cross-cutting initiative aimed at helping the next generation of farmers and ranchers enter into agriculture.

During the first week of March, a cadre of young farmers, ranchers and military veterans traveled to Washington, DC to participate in a nationwide fly-in and grassroots lobbying effort spearheaded by the Center for Rural Affairs and National Sustainable Agriculture Coalition.

Justin Doer, a farmer and military veteran from Plainview Nebraska was one of  the young farmers and ranchers lobbying in Washington and talking to lawmakers and USDA about the importance of programs that support the next generation of farmers and ranchers.

"We face a lot of barriers as beginning farmers as far as access to land and credit and barriers in crop insurance," said Doer. "As a beginning farmer one way of getting a start is through niche markets and raising non-conventional crops, but it's hard to gain access to crop insurance for that... that problem should be addressed."

According to Doer, the Beginning Farmer and Ranchers Opportunity Act - a key element of the National Sustainable Agriculture Coalition Farm Bill Platform - helps break down many of the barriers beginning farmers and ranchers face, including access to land and credit and barriers in obtaining crop insurance.

"And this legislation would include a provision that would assist younger farmers and ranchers that work with older producers in acquiring land, much as the Center for Rural Affairs' Land Link program," added Doer.

The platform can be viewed online at http://bit.ly/2012fbplatform.

Center for Rural Affairs analyzes benefits of Medicaid in rural areas
Rural children increasingly reliant on public health insurance

LYONS, NE - Medicaid protects long-term care for millions of seniors, helps people with disabilities live independently and provides health coverage that ensures children can see a doctor when they get sick. The Center for Rural Affairs released a new health care report today, entitled - Medicaid and Rural America - that examines these and other vital roles Medicaid plays in rural areas.

"A variety of unique characteristics of rural communities make Medicaid crucial for rural people and rural places," said Jon Bailey, Rural Research Director at the Center for Rural Affairs and author of the report.

"The demographics and health care infrastructure of rural America make Medicaid a vital source of insurance coverage, filling gaps in Medicare coverage and the availability of private insurance," Bailey continued.

According to Bailey, rural poverty rates are generally higher. Rural residents have lower rates of employer-sponsored health insurance. And rural areas have a higher proportion of older persons in their total population.

Bailey's report goes on to explain that about 65 percent of families with non-elderly Medicaid enrollees have at least one worker in the family, with nearly half having at least one full-time worker.

"Many perceive Medicaid as the classic 'welfare' program," said Bailey. "That perception is simply not true."

A full copy of the report can be viewed and downloaded at: http://files.cfra.org/pdf/Medicaid.pdf.

The Center for Rural Affairs report makes a detailed case that Medicaid is a critical piece of the rural health care system. The connections between rural areas and Medicaid include :

• The unique rural demographics of an older, lower income, more disabled and less healthy population with lower rates of private health insurance require a well-functioning Medicaid program.
• Medicaid provides health insurance coverage and health care access for rural children and the disabled, both with limited health insurance options.
• Significantly more people in rural areas would be without health insurance without Medicaid coverage.
• Medicaid is a primary financer of long-term care, vital in rural areas with higher rates of elderly population and greater reliance on nursing facilities.
• Medicaid helps expand health services?particularly mental health services?that would otherwise be limited or nonexistent in rural areas.
• Medicaid keeps health care facilities and health care providers in rural areas by providing a significant portion of patient revenue.
• Medicaid enhances the quality of life in rural areas by providing greater access to rural health care services.
• Medicaid helps the rural economy by providing jobs and local revenue.

In the report, Bailey also provides evidence that Medicaid is also vital to the rural health care infrastructure and to rural communities. Health care providers, especially those who serve large percentages of Medicaid patients, rely on Medicaid payments to cover the costs of treating those patients. Federal and state Medicaid dollars contribute to rural economic development by generating health care jobs and other related businesses and services.

"In many respects, Medicaid has become a rural program," explained Bailey.

The most recent data on Medicaid coverage show that 16 percent of rural residents had Medicaid coverage in the past year, compared to 13 percent of urban residents. And a recent analysis of those eligible for Medicaid from state data affirms the importance of Medicaid to rural people.

The data from 35 states and the District of Columbia shows that more rural than urban residents are eligible for Medicaid in 31 states. (New Jersey and the District of Columbia, have no rural counties). In 13 states the rural-urban variation was five percentage points higher for the rural population.

"The importance of Medicaid to certain populations - children, low-income disabled, low-income elderly and pregnant women - in rural America is especially striking," Bailey concluded.

By Elisha Smith, elishas@cfra.org, Center for Rural Affairs

This week, the week of February 18-25, is National Entrepreneurship Week. It was so named in recognition of the contributions of entrepreneurs and to celebrate and nurture the entrepreneurial spirit.

Entrepreneurs create many jobs and economic opportunities in America, especially in our rural communities. They take the biggest risks to capture opportunity where others fear to tread.

Revitalizing rural America requires us to encourage entrepreneurship, stimulate innovative community development, and open up new opportunities for farming and ranching enterprises.

One program that thousands of small business owners across the country have benefited from is the Rural Microentrepreneur Assistance Program, which provides loan capital and training grants to organizations, like the Center for Rural Affairs, who work with small business owners in rural areas.

Perhaps a business in your community has been helped by this program.

Unfortunately, Congress cut this crucial investment in November, citing the need to decrease spending. However, programs like the Rural Microentrepreneur Assistance Program generate new economic activity for businesses that otherwise may not be able to get started or grow.

We need investment in our rural communities, and we need to fight for rural development programs within our government. In the coming year, the Center for Rural Affairs will be fighting for both to be adequately represented in the Farm Bill. We'll let you know about ways to take action and opportunities for your voice to be heard.

Visit www.cfra.org for more information.