Roughly every five years, Congress debates and revises omnibus legislation—referred to as the "farm bill"—governing federal farm and food policy. Congress is currently reviewing U.S. farm policy before commodity provisions in the Food, Conservation, and Energy Act of 2008 ( P.L. 110-246 ; the 2008 farm bill) expire in 2012. The U.S. Department of Agriculture and the broader farming community often refer to the price and income support programs of the farm bill's Title I and the crop insurance and disaster assistance programs of Title XII as encompassing the farm safety net. Several farm programs contain elements of a safety net, which is intended to protect farmers against risks or ensure a minimum level of economic well-being. Many policymakers and farmers consider federal support of farm businesses necessary for their financial survival, given the unpredictable nature of agricultural production and markets. In contrast, many environmental groups argue that these subsidies encourage overproduction on environmentally fragile land using excessive pesticides and fertilizers. Others, including budget hawks, have long argued that farm subsidies are an unfair market-distorting use of taxpayer dollars. As provided under the 2008 farm bill and other legislation, farm safety net programs can be divided into three main categories (as shown in Figure 1 and Table 1 ): 
c ommodity programs provide income support and attempt to address farm price or revenue risk for selected field crops; risk management provides protection from declines in yield or revenue for a much broader set of commodities, including many field and specialty crops and some livestock; and supplemental disaster assistance is available for most commodities (crops and livestock) when weather-related losses are not covered by other programs. Historically, federal programs have primarily benefitted farmers (and landowners) of the major field crops, such as wheat, corn, soybeans, rice, cotton, and sugar. Importantly, farm support has evolved over many decades by modifying or adding programs. As a result, programs sometimes overlap or work at cross purposes, generating criticism that they are not well integrated, cost too much, or do not provide adequate risk protection. In recent years, prices for some commodities, including peanuts and cotton, have been below levels that trigger counter-cyclical payments. At best, this budget situation is likely to prevent any increase in overall new spending on a 2012 farm bill. Thus, the level of funding in the CBO baseline for agricultural programs will be of paramount importance as the development of a 2012 farm bill progresses. Thus, the pool of money for any proposed revisions to the farm safety net may likely come from the existing baseline for the farm commodity programs and the crop insurance program. The average for the actual outlays from FY2003 to FY2010 is $15.7 billion per year. The projected annual average for FY2011-FY2020 in the August 2010 CBO baseline is 5.6% smaller at $14.8 billion. Several issues might shape any potential changes to farm safety net programs in the next farm bill debate. WTO Compatibility of Current Farm Programs

A major constraint affecting future U.S. policy choices is the broad set of rules and disciplines of the World Trade Organization (WTO), which the United States, as a founding member, has agreed to adhere to and abide by. Under the AA, the United States is committed to spending no more than $19.1 billion per year on AMS amber box support. A Whole-Farm Safety Net Under the WTO

The WTO compatibility of a whole-farm safety net program would depend on many things. Will the program have adverse market effects?
Roughly every five years, Congress debates and revises omnibus legislation governing federal farm policy. Commodity provisions in the 2008 farm bill (P.L. 110-246) expire in 2012, and Congress is currently reviewing U.S. farm policy. The collection of federal farm programs, which make payments to farmers and landlords, is often referred to by the broader farming community as the "farm safety net." Some programs such as "counter-cyclical payments" (which rise when crop prices decline) contain elements of a safety net—which is usually intended to protect recipients against economic risks. Other farm program payments, such as direct (fixed) payments, are made irrespective of market prices.
As provided under the 2008 farm bill and other legislation, farm safety net programs can be divided into three main categories. Commodity programs provide income support and attempt to address farm price or revenue risks for selected field crops. Risk management (primarily crop insurance) provides protection from declines in yield or revenue for a much broader set of commodities, including many field and specialty crops and some livestock. Supplemental disaster assistance is available for most agricultural commodities (crops and livestock) when weather-related production losses are not covered by other programs.
Many policymakers and farmers consider federal support of farm businesses necessary for their financial survival, given the unpredictable nature of agricultural production and markets. In contrast, many environmental groups and budget hawks argue that farm subsidies encourage overproduction on environmentally fragile land and are a market-distorting use of tax dollars.
Historically, federal programs have primarily benefitted farmers (and landowners) of the major crops, such as wheat, corn, cotton, and sugar, with policy constructed over many decades by modifying or adding programs. As a result, programs sometimes overlap or work at cross purposes, generating criticism that they are not well integrated, cost too much, or do not provide adequate risk protection. Additional potential issues for Congress in the next farm bill debate include the extent of the current commodity coverage, program complexity and its impact on participation and effectiveness, and the effect of biofuel subsidies on agriculture.
The current federal budget situation is likely to prevent any increase in overall spending on a 2012 farm bill. Thus, the level of funding in the Congressional Budget Office (CBO) baseline budget for agricultural programs will be of paramount importance. Combined outlays for farm safety net programs have averaged $15.7 billion per year during FY2003 to FY2010, with a high of $20.5 billion in FY2006 and a low of $12.2 billion in FY2008. CBO's projected annual average for FY2011-FY2020 is $14.8 billion. With crop prices relatively high, counter-cyclical support has declined in recent years while crop insurance outlays (which are directly related to crop prices) have increased sharply. The pool of money for any changes to the farm safety net will likely come from the existing baseline for the commodity programs and the crop insurance program.
A constraint affecting future U.S. policy choices is the broad set of rules of the World Trade Organization (WTO), which the United States, as a founding member, has agreed to abide by. Farm bill proposals, if implemented, will affect U.S. commitments, mainly through cost, program design, implementation, and market effects. Under the WTO Agreement on Agriculture, the United States is committed to spending no more than $19.1 billion per year on "amber box" support (programs considered to be the most trade distorting). The WTO compatibility of any new proposal, such as a whole-farm safety net program, would depend on how its provisions mesh with WTO criteria for loss triggers, payment levels, and production and trade effects.