2014 Farm Bill Overview A new farm law, the Agricultural Act of 2014 (2014 Farm Act), was signed on February 7, 2014, and will remain in force through 2018—and in the case of some provisions, beyond 2018. The 2014 Farm Act makes major changes in commodity programs, adds new crop insurance options, streamlines conservation programs, modifies some provisions of the Supplemental Nutrition Assistance Program (SNAP), and expands programs for specialty crops, organic farmers, bioenergy, rural development, and beginning farmers and ranchers. I. Commodity Programs Repeals Direct Payments, Countercyclical Payments, and the Average Crop Revenue Election (ACRE) program. Creates two new programs—Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC). Producers of covered commodities can choose to enroll in one of the two programs. Upland cotton producers are not eligible for PLC or ARC, but they are eligible for a new crop insurance product under Title XI—the Stacked Income Protection Plan (STAX). Cotton producers will receive transition payments while new STAX policies are implemented (see Crop Insurance Overview for further details). Revises payment limitations and adjusted gross income eligibility rules. Continues the marketing assistance loan program unchanged, except for an adjustment in the loan rate for upland cotton. Continues the sugar program unchanged Price Loss Coverage Payments are provided to producers with base acres of wheat, feed grains, rice, oilseeds, peanuts, and pulses (covered commodities) on a commodity-by-commodity basis when market prices fall below the reference price. The payment rate is the difference between the reference price and the annual national-average market price (or marketing assistance loan rate, if higher). For each covered commodity enrolled on the farm, the payment amount is the payment rate, times 85 percent of base acres of the commodity, times payment yield. PLC Reference Prices Agriculture Risk Coverage (ARC) Producers may choose county-based or individual coverage. For producers choosing county-based ARC, payments are provided to producers with base acres of covered commodities on a commodity-by-commodity basis when county crop revenue (actual average county yield times national farm price) drops below 86 percent of the county benchmark revenue (5-year Olympic average county yield times 5-year Olympic average of national price or the reference price—whichever is higher for each year), calculated separately for irrigated and non-irrigated crops. Payment Limitations Payments are limited to $125,000 for each individual actively engaged in farming, without specific limits for individual programs. A spouse may receive an additional $125,000. The limitation is applied to the total of payments for covered commodities from the PLC and ARC programs, and marketing loan gains and loan deficiency payments under the marketing assistance loan program Adjusted Gross Income Limitation Th.

1. 2014 Farm Bill Overview
A new farm law, the Agricultural Act of 2014 (2014 Farm Act),
was signed on February 7, 2014, and will remain in force
through 2018—and in the case of some provisions, beyond
2018.
The 2014 Farm Act makes major changes in commodity
programs, adds new crop insurance options, streamlines
conservation programs, modifies some provisions of the
Supplemental Nutrition Assistance Program (SNAP), and
expands programs for specialty crops, organic farmers,
bioenergy, rural development, and beginning farmers and
ranchers.
I. Commodity Programs
Repeals Direct Payments, Countercyclical Payments, and the
Average Crop Revenue Election (ACRE) program.
Creates two new programs—Price Loss Coverage (PLC) and
Agriculture Risk Coverage (ARC). Producers of covered
commodities can choose to enroll in one of the two programs.
Upland cotton producers are not eligible for PLC or ARC, but
they are eligible for a new crop insurance product under Title
XI—the Stacked Income Protection Plan (STAX). Cotton
producers will receive transition payments while new STAX
policies are implemented (see Crop Insurance Overview for

2. further details).
Revises payment limitations and adjusted gross income
eligibility rules.
Continues the marketing assistance loan program unchanged,
except for an adjustment in the loan rate for upland cotton.
Continues the sugar program unchanged
Price Loss Coverage
Payments are provided to producers with base acres of wheat,
feed grains, rice, oilseeds, peanuts, and pulses (covered
commodities) on a commodity-by-commodity basis when market
prices fall below the reference price.
The payment rate is the difference between the reference price
and the annual national-average market price (or marketing
assistance loan rate, if higher). For each covered commodity
enrolled on the farm, the payment amount is the payment rate,
times 85 percent of base acres of the commodity, times payment
yield.
PLC Reference Prices
Agriculture Risk Coverage (ARC)
Producers may choose county-based or individual coverage. For
producers choosing county-based ARC, payments are provided
to producers with base acres of covered commodities on a
commodity-by-commodity basis when county crop revenue
(actual average county yield times national farm price) drops

3. below 86 percent of the county benchmark revenue (5-year
Olympic average county yield times 5-year Olympic average of
national price or the reference price—whichever is higher for
each year), calculated separately for irrigated and non-irrigated
crops.
Payment Limitations
Payments are limited to $125,000 for each individual actively
engaged in farming, without specific limits for individual
programs.
A spouse may receive an additional $125,000. The limitation is
applied to the total of payments for covered commodities from
the PLC and ARC programs, and marketing loan gains and loan
deficiency payments under the marketing assistance loan
program
Adjusted Gross Income Limitation
The limit on eligibility to receive farm program benefits no
longer distinguishes between farm and nonfarm income. Under
the single AGI limit, any individual with an annual AGI above
$900,000 (including nonfarm income) is ineligible to receive
farm program payments under commodity or conservation
programs.
Dairy and Livestock
The Margin Protection Program (MPP) for dairy producers
introduces a margin insurance program that provides benefits to
dairy producers when the difference between milk prices and
feed costs falls below a target margin.

4. The Dairy Product Donation Program (DPDP) requires the
Secretary of Agriculture to purchase dairy products at market
prices for donation to nutrition programs whenever the margin
between milk prices and feed prices falls below the minimum
margin specified under the MPP.
The Dairy Product Price Support Program (DPPSP) and Dairy
Export Incentive Program (DEIP) are repealed. The Milk
Income Loss Contract (MILC) Program is extended
retroactively to October 1, 2013, and remains in place until the
MPP is operational, but no later than September 1, 2014.
The Livestock Indemnity Program (LIP), Livestock Forage
Disaster Program (LFP), and Emergency Assistance for
Livestock, Honeybees, and Farm-Raised Fish Program
(ELAP)—providing protection against losses from natural
disasters, including disease—are now funded through the
Commodity Credit Corporation (CCC) and made permanent.
Country of Origin Labeling (COOL) regulations remain in place
and are extended to include venison (Title XII).
Margin Protection Program
Margin Protection Program (MPP) for dairy producers offers
producers insurance based on the average actual dairy
production margin (difference between the all-milk price and
average feed cost), with payments beginning when the margin
falls below $4.00 per hundredweight (cwt) for a 2-month period.
Benefits apply to a participating operation’s production history,
adjusted annually to reflect national average milk production
increases. All dairy operations are eligible to participate, and
pay only the administrative fee ($100) if they select protection
at the minimum margin level ($4.00 per cwt of milk).
Dairy Product Donation Program
Dairy Product Donation Program (DPDP) requires the Secretary

5. of Agriculture to purchase dairy products for donation to low-
income groups when dairy margins—as determined under the
MPP—fall below $4.00 per cwt for 2 consecutive months. The
program remains in effect until specified margin or product
price levels are met or until purchases have been made for 3
consecutive months. Dairy products will be purchased at
prevailing market prices in consultation with public and private
nonprofit organizations serving the nutrition needs of low-
income populations, who will distribute the donations through
food banks and other feeding programs.
Livestock Indemnity Program, Livestock Forage Disaster
Program, and Emergency Assistance for Livestock, Honeybees,
and Farm-Raised Fish Program—which protect livestock
producers against losses from natural disasters, including
disease—are now funded through the CCC and made permanent,
and the provisions are retroactive to cover losses incurred
beginning October 1, 2011.
Title II: Conservation
Continues emphasis on conservation on working lands.
Gradually reduces Conservation Reserve Program (CRP) cap
from 32 million acres to 24 million acres by 2017.
Consolidates many conservation programs into new programs or
merges them into existing programs, reducing the number of
USDA conservation programs from 23 to 13.
Re-links crop insurance premium subsidies to Conservation
Compliance (conservation of highly erodible land and wetlands)
for the first time since 1996.
ACEP

6. Agricultural Conservation Easement Program (ACEP)—Funding
is provided for long-term easements for the restoration and
protection of onfarm wetlands and protection of eligible
agricultural land from conversion to nonagricultural uses.
ACEP consolidates the functions of the Wetlands Reserve
Program, the Grassland Reserve Program (easement portion),
and the Farmland Protection Program. All land enrolled in
these programs on the date of enactment of the 2014 Farm Act
will be considered enrolled in ACEP.
RCPP
Regional Conservation Partnership Program (RCPP)—Program
is designed to coordinate conservation program assistance with
partners to solve problems on a regional or watershed scale. The
RCPP consolidates functions of existing regional programs:
Agricultural Water Enhancement Program, Chesapeake Bay
Watershed Program, Cooperative Conservation Partnership
Initiative, and Great Lakes Basin Program.
While the new CRP acreage cap cuts maximum enrollment by
25 percent, the impact on program enrollment and related
environmental benefits may be relatively modest. CRP acreage
has been declining since 2007, falling from 36.8 million acres
to 25.6 million—30 percent—by December 2013.
Title IV: Nutrition
Restricts the practice, used in certain States, of providing a
nominal energy assistance benefit (Low-Income Home Energy

7. Assistance Program, or LIHEAP) to increase the SNAP benefit
levels of some recipients by allowing them to claim a standard
deduction for out-of-pocket heating and cooling expenses that
they may not actually incur.
Provides funding to develop and test methods to increase
employment of SNAP recipients, and imposes new requirements
to evaluate and regularly report on outcomes of State SNAP
Employment and Training Programs.
Increases healthy food options of SNAP participants by
requiring a larger variety of food options at authorized retailers
and establishing a grant program to provide incentives for the
purchase of fruits and vegetables by SNAP recipients.
Enhances SNAP integrity by using improved information
technologies to expand efforts to combat fraud and verify
participant eligibility and income.
Title VI: Rural Development
Extends most rural development programs, but with generally
reduced funding authorization levels; provides limited
mandatory funds, and increases funding authorization for some
programs.
Extends rural electrification and telephone loan programs, with
minor changes.
Introduces or replaces a number of programs in rural business
development, energy, and broadband Internet. Broader use of
the Internet in rural communities is encouraged via funding for
integration of Internet processes into specific business
practices.
Provides new authority to prioritize applications and projects
that are more integrated into long-term regional development
strategies; addresses the effectiveness of existing programs
through streamlining application processes and better data
collection.
Makes minor eligibility changes in some programs, including

8. refinements in the definition of rural for some programs.
Value-Added Agricultural Product Market Development
Grants—Program is extended with mandatory funding increased
from $15 million to $63 million per fiscal year. Identifies
veteran farmers and ranchers as eligible for priority and
requires the Secretary to give priority to projects that best
contribute to creating or increasing marketing opportunities for
certain operators, farmers, and ranchers.
Access to rural broadband telecommunication services—
Programs are extended with new instructions and definitions
covering eligibility requirements for loans, follow-up on loans
granted, data collection metrics, and studies of loan program
effectiveness. Broadband is redefined as transmission
capacities of 4-Mbps downstream and 1-Mbps upstream. The
new Rural Gigabit Network Pilot Program aims to bring ultra-
high-speed Internet service to rural areas.
2014 Farm Bill reduced spending on the following programs.
Rural Water Circuit Rider Program—reduced from $25 million
to $20 million per fiscal year.
Solid Waste Management Grant—limited to $10 million per
fiscal year; previous authorization did not set a limit.
Household Water Well System—reduced from $10 million to $5
million per fiscal year.
Rural Cooperative Development Grant—reduced from $50
million to $40 million per fiscal year.
Rural Business Investment Program—reduced from $50 million

9. to $20 million per fiscal year.
Distance Learning and Telemedicine Program—reduced from
$100 million to $75 million per fiscal year.
Agriculture Innovation Center Demonstration Program—
reduced from $6 million to $1 million per fiscal year.
Title VII: Research
The Foundation for Food and Agriculture Research is a new
nonprofit institution to foster research and technology transfer
through public-private collaborations. The Act mandates $200
million in initial funding for the foundation, to be matched with
outside funds.
The 2014 Farm Act broadens support for animal health and
disease research and veterinary services, and sets aside $5
million per year for capacity and infrastructure grants.
Mandatory funding for specialty crops research and extension
will increase to $80 million per year, including at least $25
million for emergency citrus disease research.
High-priority research areas include pulses, coffee plants, corn
and soy meal and other grain byproducts, and food safety
training. Pollinator research is expanded to include health and
population surveillance and a broader definition of pollinator
disorders.

10. Title XI: Crop Insurance
The new Supplemental Coverage Option (SCO) creates a new
insurance product for crop producers that provides area-based
coverage in combination with coverage offered by traditional
crop insurance policies, beginning with the 2015 crop year.
The Stacked Income Protection Plan (STAX) replaces
traditional commodity program coverage for producers of
upland cotton, beginning with the 2015 crop.
The Noninsured Crop Assistance Program (NAP) (Title XII),
which provides weather-related coverage for commodities for
which crop insurance policies are not available, is expanded.
Additional “buy-up” coverage above catastrophic loss levels
will be allowed for commodities that otherwise would not have
additional coverage available to them.
USDA’s Risk Management Agency is directed to move toward
expansion of the Federal crop insurance program by developing
a peanut revenue insurance program to be available beginning
with the 2015 crop and by studying new insurance products for
a range of commodities, including livestock, bioenergy crops,
and specialty crops.
New methods for establishing insurable yields allow producers
to drop years in which the county or adjacent county yield is 50
percent or more below the 10-year county average.
Supplemental Coverage Option (SCO) offers producers
additional area-based insurance coverage in combination with
coverage by traditional crop insurance policies. The program
provides coverage based on county average yield or revenue and
will be made available beginning with the 2015 crop. The
program will provide subsidies to producers of 65 percent of
their premiums. SCO coverage is not available to producers
who elect to participate in either the Agriculture Risk Coverage
(ARC) program under Title I or the Stacked Income Protection

11. Plan (STAX). SCO, like traditional crop insurance, is not
subject to payment limitations or adjusted gross income (AGI)
eligibility limits.
Stacked Income Protection Plan (STAX) provides revenue
insurance policies to producers of upland cotton beginning with
the 2015 crop, in place of coverage for cotton under the new
Title I Price Loss Coverage (PLC) and Agriculture Risk
Coverage (ARC) programs. To provide support while the new
program is being implemented, upland cotton producers will
receive transition payments for crop year 2014 and also for crop
year 2015 in any areas where STAX policies are not yet
available.
STAX policies can supplement insurance coverage available
through the Federal crop insurance program, or be purchased as
a stand-alone policy. Federal subsidies will cover 80 percent of
producers’ premiums. STAX, like traditional crop insurance, is
not subject to payment limitations or adjusted gross income
(AGI) eligibility limits.
Organic Agriculture
Substantially expands funding to assist organic producers and
handlers with the cost of organic certification.
Expands total mandatory organic research funding.
Exempts certified organic producers from having to pay for
conventional commodity promotion programs on their organic
production, and establishes the option for an organic promotion
program.
Requires improvements in crop insurance for organic producers
and strengthens enforcement of organic regulations.

12. Local Foods
Expands the scope, funding, and name of the Farmers’ Market
and Local Food Promotion Program to include local and
regional food business enterprises.
Requires USDA to develop crop valuation methods for purposes
of lending to local and regional food producers and to
implement a mechanism for these producers to establish price
history.
Creates a new program to provide grants to organizations that
encourage fruit and vegetable consumption by SNAP recipients
through increasing their purchasing power. Includes a
preference for projects involving local food and direct-to-
consumer sales venues.
Reauthorizes a number of programs that support locally and
regionally produced foods.
Farmers' Market and Local Food Promotion Program (Title X)—
The scope and name of the Farmers' Market Promotion Program
(FMPP) is changed. The FMPP previously supported promotion
only of farmers’ direct-to-consumer efforts, and this provision
expands the program to include intermediaries—local and
regional food enterprises that process, distribute, aggregate,
store, and/or market locally or regionally produced food
products. Mandatory funding is 3 times higher than for the
FMPP—$30 million per year for 2014-18. Appropriations of $10
million per year for 2014-18 are also authorized. Half of
available funds shall support direct-to-consumer activities and
the other half shall support intermediary projects.

13. Food Insecurity Nutrition Incentive (Title IV)—This new grant
program will support organizations offering bonus incentives to
SNAP participants for purchases of fruits and vegetables—i.e.,
encouraging their purchase through increased purchasing
power—and is based upon successful programs in a few States.
Mandatory funding is $35 million for the FY14 -FY15 period,
$20 million for each of fiscal years 2016 and 2017, and $25
million for FY18. Appropriations of $5 million per year are
authorized for 2014-18. The program is not limited to locally
grown produce but does specify a preference for projects that
provide locally or regionally marketed fruits and vegetables or
operate at direct-to-consumer venues such as farmers’ markets.
SNAP: Authorized Retailers and Benefit Redemption Issues
Retail food stores—Farmers’ markets and other direct-to-
consumer marketing outlets are exempted from having to pay all
electronic benefit transfer (EBT) equipment and implementation
costs, costs that often prohibit these types of retailers from
being able to accept SNAP benefits.
Technology modernization for retail food stores—Authorizes a
demonstration project to test online and mobile technologies for
purchases made with EBT.
Community-supported agriculture—SNAP benefits are now
permitted by statute to be accepted in advance by agriculture
producers operating a Community-Supported Agriculture (CSA)
business model. In a CSA, a farmer grows food for subscribers
who pledge support to a farm (through the shares they
purchase). In return, the members receive shares of the farm's
production during the growing season. USDA is planning to
issue regulations to fully implement this provision.

14. Beginning Farmers and Ranchers
Reauthorizes and increases funding to $33 million (available
until expended) during 2014-18 for the Conservation Reserve
Program Transition Incentives Program to assist retired or
retiring farmers when they transfer land to certain farmers,
including beginning farmers or ranchers.
Reauthorizes and increases funding to $100 million
(cumulative) during 2014-18 for the Beginning Farmer and
Rancher Development Program.
Establishes a Military Veterans Agricultural Liaison to provide
information to returning veterans about, and to connect
returning veterans with, beginning farmer training programs.
Substantially changes the acreage limit in the definition of a
“qualified beginning farmer or rancher”; under the new
definition more producers will qualify as beginning farmers and
ranchers for the USDA Farm Service Agency’s (FSA’s) Direct
Farm Ownership loan program.
Farm Bill Discussion Board
After listening to the 2014 farm-bill lecture and researching
some on your own, please participate in the following class
discussion.
Original Post - For this discussion board, choose at least two
aspects of the 2014 farm bill that are of interest to you and
discuss. Cite at least one source (i.e. post a link to an article or
video). Please limit political views.
Reply - Check out at least one post of your peers & comment on
it
Reply on the given Peer post
One of the programs in the 2014 Farm Bill that I was
particularly interested in was the Margin Protection Program for

15. Dairy. This program offers dairy producers catastrophic
coverage at no cost to the producer (other than the annual $100
administrative fee) and different levels of buy-up coverage. The
catastrophic coverage provides payments to producers when the
difference between all milk price and the average feed costs is
less than $4.00 per hundredweight. The buy-up coverage
provides payments when margins are between $4.00 and $8.00
per hundredweight. This bill replaced the Milk Income Loss
Contract Program, and is administered by the USDA's Farm
Service Agency.
Another program that I found interesting was the Animal Health
Protection Act (AHPA) and National Animal Health Laboratory
Network. This program in particular helps to prevent, detect,
control, and eliminate diseases and pests to protect animal
health and also to respond to bioterrorist threats. The
Laboratory Network works to develop and enhance national
veterinary diagnostic capabilities. Emphasis is put on
surveillance planning, vulnerability analysis and technology
development and validation. This program is administered by
the USDA's Animal and Plant Health Inspection Service, the
National Institute of Food and Agriculture, and the American
Association of Veterinary Laboratory Diagnostics.
https://www.thefarmbill.com/programs (Links to an external
site.)Links to an external site.