On Friday, February 7th, President Obama signed the Agricultural Act of 2014 (H.R. 2642), widely referred to as the 2014 Farm Bill, a comprehensive five-year farm policy package for agricultural and food assistance programs. The U.S. House of Representatives passed this legislation on January 29, 2014 by a vote of 251 to 166. The U.S. Senate passed this legislation by a vote of 68 to 32 on February 4, 2014. The legislation will cost an estimated $956 billion over 10 years, a savings of about $16.6 billion compared with current funding, according to the Congressional Budget Office. This is the first time that Congress has approved a new farm bill since 2008, and follows three years of short-term authorizations and disagreements between the House and the Senate.The Agricultural Act of 2014 includes the most significant reduction to farm policy spending in history by reforming particular agricultural programs.
- Repeals direct payments and limits producers to risk management tools that offer protection when they suffer significant losses.
- Reduces limits on payments, tightens eligibility rules, and streamlines means tests to make farm programs more accountable.
- Strengthens crop insurance, a successful public-private partnership that helps farmers manage risk and protect themselves against losses.
- Provides historic reforms to dairy policy by repealing outdated and ineffective dairy programs. Offers producers a new, voluntary, margin protection program without imposing government-mandated supply controls.
- Supports small businesses and beginning farmers and ranchers with training and access to capital.