Farm Bill Friday: Total Cost and Commodity Title Highlights

farm billSeveral years in the making, the passage of the Agricultural Act of 2014 was a major win for agriculture and for the food security of our nation. How the provisions in the farm bill will play out on farms across the Mid-Atlantic region will be determined over the next several months as USDA works with stakeholders in the development of corresponding regulations.

2014 Farm Bill Total Cost

  • $956 billion over 10 years
  • $23 billion in savings over the next 10 years, in addition to the spending cuts on commodities (factoring in cuts made during the two year time period when the 2008 Farm Bill expired and was temporarily reauthorized)
  • Breakdown in spending
    • Nutrition – 80%
    • Crop Insurance – 9%
    • Conservation – 6%
    • Commodity programs – 5%

Commodity Title

  • Repeals direct payments
  • Producers can choose between two counter-cyclical safety net programs
    • Price loss coverage – aimed at deep, multiple-year price declines
    • Agriculture risk coverage – aimed directly at revenue losses
      • Reference prices to be used are up sharply from current law
      • Pricing in the new bill is up sharply
        • $5.50/bu wheat
        • $3.70/bu corn
        • $8.40/bu soybeans
  • Payment limits are capped $125,000 per individual or $250,000 per couple
  • Adjusted gross income limits are set at $900,000 for specific commodity and conservation programs
  • New Dairy Margin Protection Program will be in effect by September 1
    • The program is designed to provide payments when actual dairy margins, rather than prices are below the margin coverage the producer has chosen for that year
    • USDA will calculate the margin as all the milk price minus the average feed cost
    • Coverage in one year is equal to the producer’s production history (choosing coverage between 25-90% of production)
    • If a farmer’s growth exceeds the average US milk production increase, that milk is not covered.


This information was provided via Kurt Fuchs, MidAtlantic Farm Credit’s government affairs officer. If you have any questions for Kurt, feel free to leave a comment! And check back next Friday for more information on the 2014 Farm Bill in regards to conservation, crop insurance and miscellaneous titles.


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