House Passes 5-Year Farm Programs Reauthorization — Senate, Presidential Hurdles Await

WASHINGTON, D.C. -U.S. Representative Chet Edwards supported House passage of H.R. 2419, the 2007 Farm Bill, which extends Agriculture Department commodity and conservation programs, food stamps, rural development, agricultural trade through 2012 and provides the first reauthorization of farm programs since 2002.

“Because of the success of the programs under the Farm Bill, Americans spend the lowest percentage of their income in the world for food,” said Edwards. “This bipartisan House Farm Bill makes real reforms that protect Texas family farmers and rural economies in a fiscally responsible way and will strengthen American agriculture to meet the 21st century needs of the United States and the world with a safe, stable food supply.”

While the $286 billion Farm bill extends many of the programs from the 2002 Farm Bill, some of the most significant changes to current farm policy will save more than half a billion dollars by preventing large, factory farm operations making more than $1 million a year in adjusted gross income from receiving any federal subsidies, including price support and conservation payments. The current income limit for cutting off federal payments is $2.5 million. Portions of the Farm bill will be paid for with revenue generated from cracking down on some foreign companies who use loopholes in the tax code to avoid paying taxes that every American-owned business must pay. This overseas tax haven loophole allows some to unfairly collect up to double the farm payment limits.

The 2007 Farm Bill also takes critical steps to expand renewable fuel production needed to encourage American energy independence and protect our environment. The measure boosts renewable energy programs by 600 percent, providing $2 billion in loan guarantees for the development of refineries that process renewable fuels, a key step toward bringing more renewable fuels to market in America and $1.5 billion for production incentives for ethanol and biodiesel made from agricultural, forest, and waste plant materials.

“In today’s world, it is important that we encourage the expansion of renewable fuel production that promotes American energy independence and protects our environment,” said Edwards. “The bottom line is that many farmers and ranchers and their communities, the backbone of America, may not be able to stay in business without this legislation. Congress and the Administration should work together in good faith to do what is right for our farmers and ranchers, and American families who benefit from low food prices.”

The bill must still pass the Senate and be signed by the president.