	Introduction

The farm commodity provisions of the Food, Conservation, and Energy Act of 2008, as amended ( P.L. 110-246 , the 2008 farm bill) expire with the 2013 crop year. Consequently, the 113 th Congress has been considering an omnibus farm bill that would establish the direction of agricultural policy. On May 14, 2013, the Senate Agriculture Committee reported its version of the bill ( S. 954 , the Agriculture Reform, Food and Jobs Act of 2013), which was approved by the full Senate on June 10, 2013 (vote of 66-27). On July 11, the full House approved a revised bill, H.R. 2642 , which excluded a nutrition title, and on September 19 approved a nutrition title ( H.R. The House adopted a resolution ( H.Res. 361 ) on September 28 that combined the texts of H.R. 2642 and H.R. 3102 into one bill ( H.R. 2642 ) for purposes of resolving differences with the Senate. Conference on the two measures is pending. The broader farming community uses the term farm safety net to refer to the combination of (1) farm commodity price and income support programs in the 2008 farm bill, (2) federal crop insurance (permanently authorized) under the Federal Crop Insurance Act of 1980 as amended, and (3) five disaster assistance programs in the 2008 farm bill, which are currently unfunded. Both bills would reshape the structure of farm commodity support, reauthorize several disaster programs, and expand crop insurance coverage. Direct payments—made to producers and landowners based on historical production and fixed payment rates for corn, wheat, soybeans, cotton, rice, peanuts, and other "covered" crops—have accounted for most farm program spending in recent years. In both bills, approximately three-fourths of the 10-year, $46 billion-$47 billion in savings (as estimated by the Congressional Budget Office) associated with the proposed elimination of current farm programs would be used to offset the cost of updating farm programs (Title I), enhancing crop insurance (Title XI), and retroactively reauthorizing four disaster programs (beginning FY2012). These titles address the issue of "shallow losses" (losses incurred by crop producers that are not covered currently by crop insurance) and provide disaster assistance for livestock producers. 3102) Bills with Current Law . Proposed Farm Commodity Program Revisions

Both S. 954 and H.R. Importantly, the Senate bill covers only crop years 2014-2018. It also suspends permanent price support authority under the Agricultural Adjustment Act of 1938 and Agricultural Adjustment Act of 1949, which would increase price supports well above current market levels and create substantial government outlays. This provision is designed to motivate Congress to reexamine agricultural and related policy (not just farm programs) when program authority in S. 954 expires in 2018. In contrast, the House bill covers crop year 2014 and each succeeding crop year (i.e., no program expiration date) and repeals permanent law. 2642 ) 2013 farm bills, farm support for traditional program crops is restructured by eliminating direct payments, the counter-cyclical price (CCP) program, and the Average Crop Revenue Election (ACRE) program. Authority is continued for marketing assistance loans, which provide additional low-price protection at "loan rates" specified in current law (with an adjustment made to the cotton loan rate). The program is permanently authorized by the Federal Crop Insurance Act (7 U.S.C. Supplemental Coverage Option (SCO)

Under both bills, a new crop insurance policy is authorized to address the issue of "shallow losses," or losses incurred by producers but not covered currently by crop insurance.
The farm commodity provisions of the Food, Conservation, and Energy Act of 2008, as amended (P.L. 110-246, the 2008 farm bill) expire with the 2013 crop year. Consequently, the 113th Congress has been considering an omnibus farm bill that would establish the direction of agricultural policy for the next five years. On June 10, 2013, the Senate approved its version of the farm bill, S. 954, the Agriculture Reform, Food and Jobs Act of 2013. The House approved a farm bill (H.R. 2642) without a nutrition title on July 11, 2013, and a nutrition title (H.R. 3102) on September 19, 2013. The House adopted a resolution (H.Res. 361) on September 28 that combined the texts of H.R. 2642 and H.R. 3102 into one bill (H.R. 2642) for purposes of resolving differences with the Senate. Conference on the two measures is pending.
Among the many provisions, both bills would reshape the structure of farm commodity support, retroactively reauthorize several disaster programs, and expand coverage under the federal crop insurance program. These three areas of federal support for farmers are often collectively called the "farm safety net." Commodity programs under the original 2008 farm bill cover only crops harvested in 2008 through 2012, and were extended for an additional crop year in the American Taxpayer Relief Act of 2012 (P.L. 112-240, the fiscal cliff bill). Unlike farm commodity programs, the federal crop insurance program, which provides subsidized insurance policies for producers, is permanently authorized under the Federal Crop Insurance Act of 1980. Five disaster assistance programs under the 2008 farm bill expired on September 30, 2011, and under the farm bill extension, Congress provided authority to appropriate funds (but no actual funding) for three livestock programs and a tree assistance program.
Under both S. 954 and H.R. 2642, farm support for traditional program crops is restructured by eliminating direct payments. Direct payments—made to producers and landowners based on historical production and fixed payment rates for corn, wheat, soybeans, cotton, rice, peanuts, and other "covered" crops—have accounted for most farm program spending in recent years. As under current law, both bills authorize farm programs (with new program names) that would make payments when crop prices (or revenue) fall below a reference price (or historical average revenue). Authority is continued for marketing assistance loans, which provide additional low-price protection at "loan rates" specified in current law (with an adjustment made to cotton). The Senate bill covers only crop years 2014-2018, and it suspends permanent price support authority under the Agricultural Adjustment Act of 1938 and Agricultural Adjustment Act of 1949 until program authority in S. 954 expires in 2018. In contrast, the House bill covers crop year 2014 and each succeeding crop year (i.e., no program expiration date) and repeals permanent law.
In both bills, approximately three-fourths of the 10-year, $46 billion-$47 billion in savings (as estimated by the Congressional Budget Office) associated with the proposed elimination of current farm programs would be used to offset the cost of revising farm programs (Title I), enhancing crop insurance (Title XI), and retroactively reauthorizing four disaster programs (beginning FY2012). The two bills provide programs for covered crops, except cotton, which would have its own program (a crop insurance product called Stacked Income Protection Plan or STAX). Proponents of farm programs and federal crop insurance are attempting to address the issue of "shallow losses"—crop losses not covered currently by crop insurance—as well as provide disaster assistance for livestock producers. Critics contend that the proposals contain overly generous farm and crop insurance subsidies and shift additional commodity market risk to the federal government.