Summary and Evolution of U. S. Farm Bill Commodity Titles
Brandon Willis
National AgLaw Center Graduate Assistant
and
Doug O’Brien
Research Assistant Professor of Law
This outline compares the commodity titles of federal Farm Bills since 1985. The comparisons are made on a program by program basis and are designed to provide the evolution of the particular programs. Within each program, a summary sentence is provided for each provision explaining how that particular farm bill changed the program. Each summary includes a link to an expanded explanation for those interested in greater detail. The expanded sections also include information about how legislation other than a farm bill, usually an appropriations act, changed the legislative authority in the interim between farm bills.
The outline is also linked with other resources in the National Agricultural Law Center Web site, most significantly the texts of the farm bills themselves.
Unless otherwise noted, the citations are to the actual farm bill legislation, as opposed to the U.S. Code. To make the outline more reader-friendly, the formal names and public law cites of the farm bills are generally omitted. For reference, they are provided here:
1985 Farm Bill – Food Security Act of 1985, Pub. L. No. 99-198, 99 Stat. 1354 (Dec. 23, 1985).
1990 Farm Bill – Food Agricultural Conservation and Trade Act of 1990, Pub. L. No. 101-624, 104 Stat. 3359 (Nov. 28, 1990).
1996 Farm Bill – Federal Agriculture Improvement and Reform Act of 1996, Pub. L. No. 104-127, 110 Stat. 888 (Apr. 4, 1996).
2002 Farm Bill – Farm Security and Rural Investment Act of 2002, Pub. L. No. 107-171, 116 Stat. 134 (May 13, 2002).
Index of Topics
Acreage Limitation Program or Acreage Set-Aside Program
Deficiency Payments
1985 Farm Bill § 308 (wheat), § 401 (feed grains), § 501 (upland cotton), § 601 (rice), and § 1002 (advance deficiency payments) – Requires the Secretary to pay deficiency payments for wheat, feed grains, upland cotton, and rice for 1986 through 1990 crops if the price received by farmers during the first 5 months of the marketing year is lower than the established target price for that crop year; provides for advance deficiency payments if the Secretary establishes an acreage limitation or set-aside program. Expanded discussion.
1990 Farm Bill § 308 (wheat), § 401 (feed grains), § 501 (upland cotton), and § 601 (rice) – Requires the Secretary to pay deficiency payments for wheat, feed grains, upland cotton, and rice for 1986 through 1990 crops if the price received by farmers during the first 5 months of the marketing year is lower than the established target price for that crop year; provides for advance deficiency payments if the Secretary establishes an acreage limitation or set-aside program. Expanded discussion.
1996 Farm Bill § 171 – Suspends authority for deficiency payments.
2002 Farm Bill § 1104 – Authorizes counter-cyclical payments that are similar in effect to deficiency payments. See below, Counter-Cyclical Payments, 2002 Farm Bill
National Program Acreage
1985 Farm Bill § 308 (wheat), § 401 (feed grains), § 501 (upland cotton), and § 601 (rice) – Requires the Secretary to announce national program acreage (NPA) for feed grains, wheat, cotton, and rice when an acreage limitation program (also known as an acreage reduction program) is not in effect. Expanded discussion.
1990 Farm Bill– Did not continue NPA.
1996 Farm Bill– Not applicable.
2002 Farm Bill– Not applicable.
Acreage Limitation Program and Acreage Set-Aside Program
1985 Farm Bill § 308 (wheat), § 401 (feed grains), § 501 (upland cotton), and § 601 (rice) – Establishes program to limit the number of acres planted to program commodities. Expanded discussion.
1990 Farm Bill § 301 (wheat), § 401 (feed grains), §§ 501-508 (upland cotton), and § 601 (rice) – Continues the ALP and PLD programs to alleviate crop surpluses. Expanded discussion.
1996 Farm Bill– Not applicable.
2002 Farm Bill– Not applicable.
Commodity Loan Program
1985 Farm Bill § 308 (wheat), § 401 (feed grains), § 501 (upland cotton), § 601 (rice) and § 602 (rice, 1985 crop) – Requires price support for wheat, feed grains, upland cotton, rice, sugar, and soybeans through nonrecourse loans; authorizes the Secretary to implement several optional programs, including marketing loans and loan deficiency payments. Expanded discussion.
1990 Farm Bill § 301 (wheat), § 401 (feed grains), §§ 501-508 (upland cotton), and § 601 (rice), § 701 (oilseeds) and § 1002 (loan forfeiture limitation) – Continues the ALP and PLD programs to alleviate crop surpluses. Expanded discussion.
1996 Farm Bill §§ 131-137 – Authorizes only marketing assistance loans with no price supporting loans except for sugar; bases loans upon total actual production. Expanded discussion.
2002 Farm Bill §§ 1201-1209 – Requires the Secretary to offer marketing loans; extends marketing loans to peanuts, wool, mohair, honey, small chickpeas, lentils, and dry peas; sets the loan rate for each commodity, unlike the previous three Farm Bills that set loan rates based upon proceding years’ market price; continues nonrecourse loans for sugar at the same rates as the 1996 Farm Bill. Expanded discussion.
Farmer-Owned Reserve
1985 Farm Bill § 1012 – Continues program paying farmers to store wheat and feedgrains when certain conditions are met. Expanded discussion.
1990 Farm Bill §1123 – Extends the Farmer-Owned Reserve program; adjusts the loan duration, conditions for allowing grain into the reserve, and maximum amount of grain allowed into the reserve. Expanded discussion.
1996 Farm Bill– Does not extend.
2002 Farm Bill– Not applicable.
Direct Payments
1985 Farm Bill– Not applicable.
1990 Farm Bill– Not applicable.
1996 Farm Bill §§ 111-118 – Creates seven-year production flexibility contracts (PFC) which provide fixed annual payments to eligible farmers with eligible crop land, payments are based upon historical yields and acreage, not current production. Expanded discussion.
2002 Farm Bill §§ 1103-1108 – Creates direct payments similar to production flexibility contracts used in the 1996 Farm Bill, payments are made to eligible producers of covered commodities. Expanded discussion.
Counter-Cyclical Payments
1985 Farm Bill– No counter-cyclical payments, but authorizes similar mechanism known as deficiency payments. See Deficiency Payments, 1985 Farm Bill.
1990 Farm Bill– No counter-cyclical payments but authorizes similar mechanism known as deficiency payments. See Deficiency Payments, 1985 Farm Bill.
1996 Farm Bill– No counter-cyclical payments, but some years did include emergency marketing loss assistance payments. Expanded discussion.
2002 Farm Bill §§ 1104-1108 – Creates counter-cyclical payments providing payments for covered commodities whenever the effective price for the commodity is less than the target price; bases payments on historical production and yield, not current production or yields. Expanded discussion.
Wheat
1985 Farm Bill §§ 301-312 – Continues price support through loans and purchases; provides income support through deficiency payments; authorizes marketing loans, loan deficiency payments, and acreage reduction programs. Expanded discussion.
1990 Farm Bill §§ 301-305 – Continues price support through loans and purchases; continues income support through deficiency payments; provides marketing loans, loan deficiency payments, and certain acreage reduction programs. Expanded discussion.
1996 Farm Bill §§ 111-118 (production flexibility contracts); §§131-137 (marketing loans and loan deficiency payments). Authorizes production flexibility contracts providing annual payments to producers; utilizes marketing loans and loan deficiency payments for income support; eliminates price support loans and purchases, acreage reduction and land diversion programs. Expanded discussion.
2002 Farm Bill §§ 1101-1108 (direct and counter-cyclical payments); §§ 1201-1209 (marketing loans and loan deficiency payments) – Provides direct payments and counter-cyclical payments to eligible producers; authorizes marketing assistance loans; gives Secretary discretion to make loan deficiency payments. Expanded discussion.
Feed Grains
1985 Farm Bill §§ 401-402 – Continues price support through loans and purchases; provides income support through deficiency payments; authorizes marketing loans, loan deficiency payments, and acreage reduction programs. Expanded discussion.
1990 Farm Bill §§ 401-405 – Continues price support through loans and purchases; provides income support through deficiency payments; authorizes marketing loans, loan deficiency payments, and acreage reduction programs. Expanded discussion.
1996 Farm Bill §§ 111-118 (production flexibility contracts); §§ 131-137 (marketing loans and loan deficiency payments) – Authorizes production flexibility contracts providing annual payments to producers; utilizes marketing loans and loan deficiency payments for income support; eliminates price support loans and purchases. Expanded discussion.
2002 Farm Bill §§ 1101-1108 (direct and countercyclical payments); §§ 1201-1209 (marketing loans and loan deficiency payments) – Provides direct payments and counter-cyclical payments to eligible producers; authorizes marketing assistance loans; allows Secretary to make loan deficiency payments. Expanded discussion.
Upland Cotton
1985 Farm Bill §§ 501-506 – Continues price support through target prices; authorizes deficiency payments, nonrecourse loans, and acreage limitations, and allows the Secretary more discretionary authority to administer the program. Expanded discussion.
1990 Farm Bill §§ 501-502 – Continues nonrecourse loans with marketing loan repayment provisions, loan deficiency payments, and deficiency payments; adds a three-step program to keep cotton competitive in world markets. Expanded discussion.
1996 Farm Bill §§ 111-118; §§ 131-137 – Continues nonrecourse loans with marketing loan repayment provisions; makes available annual production flexibility contract payments; discontinues deficiency payments. Expanded discussion.
2002 Farm Bill §§ 1101-1108; §§ 1201-1209 – Replaces production flexibility contracts with direct payments; makes upland cotton eligible for counter-cyclical payments; continues marketing loans and loan deficiency payments; sets loan rates. Expanded discussion.
Rice
1985 Farm Bill §§ 601-603 – Provides price support through loans and purchases; continues income support through deficiency payments; authorizes marketing loans, loan deficiency payments, acreage reduction programs; offers marketing certificate program to promote exports of domestic prices drop. Expanded discussion.
1990 Farm Bill § 601 – Provides price support through loans and purchases; continues income support through deficiency payments; mandates marketing loans and loan deficiency payments; authorizes acreage reduction programs; offers marketing certificate program to promote exports if domestic prices drop. Expanded discussion.
1996 Farm Bill §§ 111-118 (production flexibility contracts); §§ 131-137 (marketing loans and loan deficiency payments) – Authorizes nonrecourse marketing loans, loan deficiency payments, and production flexibility contracts; eliminates acreage limitation programs. Expanded discussion.
2002 Farm Bill §§ 1101-1108 (direct and counter-cyclical payments); §§ 1201-1209 (marketing loans and loan deficiency payments) – Provides direct payments and counter-cyclical payments to eligible rice producers; requires marketing assistance loans; authorizes loan deficiency payments. Expanded discussion.
Soybeans and Oilseeds
1985 Farm Bill §§ 801 – Provides price support through loans and purchases for soybeans only. Expanded discussion.
1990 Farm Bill § 701 – Provides support for soybeans, sunflower seed, canola, rapeseed, safflower, flaxseed, and mustard seed through loans and purchases; authorizes marketing loans and loan deficiency payments. Expanded discussion.
1996 Farm Bill §§ 131-172 – Provides marketing loans and loan deficiency payments. Expanded discussion.
2002 Farm Bill §§ 1201-1205 – Provides marketing loans and loan deficiency payments; sets loan rates; authorizes direct and counter-cyclical payments. Expanded discussion.
Peanuts
1985 Farm Bill §§ 701-707 – Continues the two-tier price support program for quota peanuts and additional peanuts using loans, purchases, and other operations. Expanded discussion.
1990 Farm Bill §§ 801-809 – Continues the two-tier price support program for quota peanuts and additional peanuts with slight modifications. Expanded discussion.
1996 Farm Bill § 155 – Creates a constant loan rate for quota peanuts that will no longer be increased due to cost of production increases; requires a marketing assessment that begins at 1.15 percent in 1996 and increases to 1.2 percent in 2002 which is assessed on the loan rate. Expanded discussion.
2002 Farm Bill §§ 1301-1310 – Eliminates the two-tiered peanut marketing quota system; treats peanuts similarly to other program crops with producers eligible to receive both direct payments and counter-cyclical payments; replaces old support system with a single marketing loan assistance program for all peanut producers; creates “buyout” program for owners of peanut quotas. Expanded discussion.
Sugar
1985 Farm Bill §§ 901-903 – Provides price support through import restrictions and nonrecourse loans for domestically grown sugarcane and sugar beets; authorizes rate increases if the cost of production or the cost of sugar products increase; requires Secretary to estimate domestic sugar demand and then limit imports so that domestic sugar prices discourage sugar forfeitures. Expanded discussion.
1990 Farm Bill §§ 901-903 – Continues price support using nonrecourse loans; requires import quotas and domestic allotments to keep the domestic price of sugar above a “target price”; requires Secretary to establish marketing allotments which restrict domestic sugar production when imports fall below 1,250,000 short tons. Expanded discussion.
1996 Farm Bill § 156 – Offers both nonrecourse and recourse loans, depending upon the tariff-rate quota level; eliminates domestic sugar marketing assessments. Expanded discussion.
2002 Farm Bill §§ 1401-1403 – Provides nonrecourse price support loans, loan rates remain unchanged; extends nonrecourse loans to in-process beets and cane syrups; authorizes a payment-in-kind program that allows CCC owned sugar to be exchanged prior to planting if acreage reductions are taken; restores marketing allotments on domestic sugar producers when imports fall below a stipulated level. Expanded discussion.
Honey
1985 Farm Bill § 1041 – Continues price support through purchases and nonrecourse loans; sets loan rates for 1986 and 1987, then reduces loan levels by five percent each subsequent year. Expanded discussion.
1990 Farm Bill §§ 1001-1002 – Provides price support through recourse and nonrecourse loans, loan deficiency payments, purchases, or other operations. Expanded discussion.
1996 Farm Bill § 171 – Suspends provisions of the 1949 Farm Bill that provided support for honey.
2002 Farm Bill §§ 1201-1205 – Offers both nonrecourse marketing assistance loans and loan deficiency payments. Expanded discussion.
Wool and Mohair
1985 Farm Bill §§ 201-202 – Extends the National Wool Act of 1954 through December 31, 1990 by requiring the Secretary to support the price of wool and mohair through loans, purchases, payments, or other operations. Expanded discussion.
1990 Farm Bill § 201 – Extends the National Wool Act of 1954. Expanded discussion.
1996 Farm Bill– Does not extend the program.
2002 Farm Bill §§ 1201-1202; § 1205 – Authorizes marketing assistance loans for mohair, nongraded wool (except in the form of unshorn pelts), and graded wool; makes nongraded wool in the form of unshorn pelts eligible for loan deficiency payments. Expanded discussion.
Dairy
1985 Farm Bill §§ 101-108 – Mandates a milk termination program and declining price support through government purchases of dairy products; authorizes the dairy export incentive program; makes available Commodity Credit Corporation stocks of nonfat dry milk for the manufacture of casein and for use in a dairy export incentive program. Expanded discussion.
1990 Farm Bill §§ 101-116 – Continues the milk price support program through government purchases of dairy products; reauthorizes the dairy export incentive program. Expanded discussion.
1996 Farm Bill §§ 141-152 – Continues milk price support through government purchases until December 31, 1999 with the support price declining annually; modifies the dairy export incentive program; creates program beginning January 1, 2000, wherein commodity recourse loans will be available to processors at a rate of $9.90 per hundredweight. Expanded discussion.
2002 Farm Bill §§ 1501-1508 – Requires the Secretary to support the price of milk, through the purchases of milk products; continues the dairy export incentive program and leaves the milk marketing order system unchanged; adds a new counter-cyclical program (Milk Income Loss Contract), which provides a safety net for dairy producers when milk prices decline. Expanded discussion.