On Thursday, June 5, Congress repeated its May 15 approval of the five-year "Food, Conservation Act and Energy Act of 2008." The new vote was required after it was discovered that due to a clerical error, a 34 page "trade title," which covered international food aid according to CNNMoney.com, was missing when President George Bush, vetoed the bill on May 21.

It is expected that Bush will again veto the bill, and the Congress will override his veto, as they did overwhelmingly on May 22, putting most of the legislation into law.

The new bill replaces the Farm Bill of 2002, which had to be extended five times while Congress hashed out details of the new legislation.

About 11 percent or $35 billion of the $307 billion bill will go to U.S. farmers in the form of the crop subsidies, over the next five years.

Jared Singer, county executive director of the Saline County Farm Service Agency, said it would still be awhile before they have details about sign-ups for local farmers and details about the actual program. (See story from Monday, June 12)

What is known, however, is the new bill includes five disaster programs for producers. The difference between this and previous bills is that the disaster program has been made a "standing program." Previously Congress had passed those "ad hoc," after local offices would send in the damage reports, explained Singer.

Based on the reports, Congress would decide whether or not to pass a disaster bill.

"Under the new bill, it is a standing program," he said. "If the county meets certain criteria then that would enact the program."

In order to participate in any of the disaster programs, producers will be required to carry insurance, as they have before, for crop disasters. The new twist is that they will even be required to carry insurance for participating in the livestock disaster program.

"This new regulation requires that even for grazing losses you would have to have insurance," said Singer, explaining that producers could get the insurance through the Noninsured Crop Disaster Assistance Program (NAP), which is available for fruits and vegetables and other crops not covered under "traditional insurance programs."

"You'd have to get a NAP policy for your pasture in order to get benefits under a livestock program," Singer said.

Another change is that beginning in 2009 producers will have a chance to choose to participate in Average Crop Revenue Election (ACRE).

"They are moving to some revenue protection, as opposed to in the past it may have been yield losses, now they are focusing a little on total farm revenue," said Singer.

Although, exact details are unknown, according to an article written by Top Producer Executive Director Linda Smith, the ACRE program has three "cost components: (1) In order to participate, producers have to give up 20 percent of direct payments (2) If producers choose ACRE they do not receive countercyclical payments and (3) Marketing loan rates are reduced by 30 percent.

According to Singer, the office has received word that as in the 2002 bill, they will be having a Direct and Counter-Cyclical Program sign-up for 2008. However, he noted that they still do not have software or a date on when it will start.

The target prices for local crops have changed. They are expected to be $2.63 for corn for 2008-2012.

For soybeans, the target price is $5.80 a bushel in 2008-09 and $6 a bushel for 2010-2012.

The target price for wheat is $3.92 bushel for 2008-2009 and $4.17 a bushel for 2010-2012.

Several big changes have been made in Adjusted Gross Income (AGI) eligibility requirements for who would or would not be eligible for farm commodity and disaster program benefits.

The new bill requires that in order to receive benefits, an individual's non-farm income may not exceed $500,000.

If a person's farm AGI exceeded $750,000, they would no longer be eligible for direct payments.

One of the reasons, according to news sources, Bush vetoed the bill was because he wanted the AGI cap to be set at $250,000. In past programs, the AGI limitation was $2.5 million.

Another change is that beginning with the 2009 crop year, instead of basing the payment limits on "entities," as in the past, the new payment limit will now will be based on social security numbers, according to Singer.

Some conservation programs have been renewed. They include the Conservation Security Program (CSP), a program of the Natural Resources and Conservation Service. (NRCS)

"If you've been a good steward of the land and have met some criteria and you've already got some conservation practices in place then you are eligible for that program," said Singer.

The Environmental Quality Incentives Program or EQIP, another NRCS program and the Conservation Reserve program are also renewed under the new bill.

A story tomorrow will focus on the cost and who benefits from the new legislation.

Contact Marcia Gorrell at marshallag@socket.net