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Agricultural Adjustment Act introduced
This is known as the first farm bill. It was created to boost agricultural prices by reducing surpluses. The Government bought livestock for slaughter and paid farmers subsidies not to plant part of their land. -
Farm Bill Ruled Unconstitutional
The Supreme Court decided in United States v. Butler that the act was unconstitutional for levying this tax on the processors only to have it paid back to the farmers. The federal government could not force states to adopt the Agricultural Adjustment Act due to lack of jurisdiction. -
Supplemental Nutrition Assistance Program created
Commonly known as “food stamps,” today’s Supplemental Nutrition Assistance Program (SNAP) is the largest component of the farm bill. The federal program was created as part of the “great society” acts of the Johnson Administration. It was first included in the farm bill in 1973. -
Supplemental Nutrition Assistance Program Cont.
Nutrition programs are 78 percent of all mandatory spending in the farm bill today. Its cost has increased over time. These programs generally qualify people for vouchers or cash assistance for qualified food purchases based on income and asset tests. -
Conservation Title
This farm bill created a conservation title with the Conservation Reserve Program and the Wetlands Reserve Program. The conservation title has focused more on working lands cost-share assistance through programs such as the Environmental Quality Incentives Program, the Wildlife Habitat Incentives Program, and the Conservation Security Program. -
Conservation Title Cont.
Spending on conservation programs has grown to roughly $5 billion per year. These programs are important tools for farmers, as often conservation practices do not translate to profit. From its desperate beginnings in the Dust bowl, the NRCS has worked with farm families to create the most sustainable and efficient agricultural industry in history. -
Federal Crop Insurance Act
More than 100 crops are insurable under the 2014 Farm Bill with the adoption of two new programs. Since cotton is no longer included as a program crop under Title I, a policy called Stacked Income Protection Plan (STAX) was made available to cotton producers. Additionally, Supplemental Coverage Option (SCO) was introduced to address a portion of losses not covered by individual crop insurance policies. -
Federal Crop Insurance Act Cont.
A provision to help beginning farmers and ranchers have access to crop insurance was also included. Federal crop insurance remains a crucial tool for farmers to protect against losses in yield, crop revenue, and whole farm revenue. Without federal involvement, multi-peril crop insurance would not be affordable for producers. Without multi-peril crop insurance, many farmers would be unable to gain the financing needed to operate.
