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April 23, 2008

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Seth

Background:

The House passed its version of the farm bill in July; the Senate did the same in December. Key representatives and senators are meeting now to reconcile the two different versions and prepare a conference report that sets out the terms of the final bill. However, conferees have been unable to agree on total funding for the bill and how to pay for it. The president has threatened to veto the bill if it includes funding mechanisms he does not approve or fails to incorporate adequate commodity program reform. The current farm bill is scheduled to expire on April 25.

Both the House and Senate bills included significant increases to the farm bill's nutrition programs, especially food stamps. These increases represented a powerful recognition of current needs in the food stamp program and food bank programs. Since then, food price inflation has accelerated, squeezing many low-income families. However, if Congress does not pass a new farm bill, we will lose the nutrition increases currently on the table. This will mean fewer families will receive the assistance they need to be assured of an adequate, nutritious diet.

Rising food prices are also having a devastating impact on poor people outside our country. Our food aid assistance is a critically important tool to help the poorest people in the world cope with the rapidly rising food prices that we are currently seeing. However, some provisions of our food aid programs cause inefficiencies that cost lives. One of the most direct changes we could make to our food aid programs is to provide the flexibility to purchase some of our food aid locally or regionally. A pilot study of how to buy food locally or regionally was rightly included in the Senate version of the farm bill. Though the original language was weakened by an amendment during the Senate floor debate, it is a good first step and should be retained in the final bill.

At the same time, the Senate- and House-passed bills do very little to make commodity programs fairer or more equitable. Neither version includes meaningful payment limits and both actually increase the most trade-distorting programs.

It's not too late to pass a final farm bill that addresses these issues. A few changes to the commodity programs would make the programs fairer for farm families of modest means while producing enough savings to pay for the nutrition increases we know are necessary. Funding is not an issue for the food aid pilot program, but conferees do need encouragement to include it in the final bill. The result would be farm bill that is better for poor people, in our own country and around the world.

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