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The Farm Security and Rural Investment Act of 2002, also known as the 2002
Farm Bill In the United States, the farm bill is a comprehensive omnibus bill that is the primary agricultural and food policy instrument of the federal government. Congress typically passes a new farm bill every five to six years.Johnson, R. and Monke, ...
, includes ten titles, addressing a great variety of issues related to
agriculture Agriculture encompasses crop and livestock production, aquaculture, and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization, whereby farming of domesticated species created ...
,
ecology Ecology () is the natural science of the relationships among living organisms and their Natural environment, environment. Ecology considers organisms at the individual, population, community (ecology), community, ecosystem, and biosphere lev ...
,
energy Energy () is the physical quantity, quantitative physical property, property that is transferred to a physical body, body or to a physical system, recognizable in the performance of Work (thermodynamics), work and in the form of heat and l ...
,
trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. Traders generally negotiate through a medium of cr ...
, and
nutrition Nutrition is the biochemistry, biochemical and physiology, physiological process by which an organism uses food and water to support its life. The intake of these substances provides organisms with nutrients (divided into Macronutrient, macro- ...
. This act has been superseded by the 2007 U.S. Farm Bill. The act directs approximately 16.5 billion dollars of funding toward
agricultural subsidies An agricultural subsidy (also called an agricultural incentive) is a government incentive paid to agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural products, and influence the ...
each year. These subsidies have a dramatic effect on the production of grains, oilseeds, and upland cotton. The specialized nature of the farm bill, as well as the size and timing of the bill, made its passage highly contentious. Debated in the
U.S. House of Representatives The United States House of Representatives is a chamber of the bicameral United States Congress; it is the lower house, with the U.S. Senate being the upper house. Together, the House and Senate have the authority under Article One of th ...
during the immediate aftermath of the
September 11th attacks The September 11 attacks, also known as 9/11, were four coordinated Islamist terrorist suicide attacks by al-Qaeda against the United States in 2001. Nineteen terrorists hijacked four commercial airliners, crashing the first two into ...
in 2001, the bill drew criticism from the White House and was nearly amended. The amendment, which failed by a close margin, was proposed by Rep. Ron Kind (D-WI) and would have shifted money away from grain subsidies to conservation measures. Public debate over the farm bill continued, and the Senate proposed sweeping amendments to the bill, leading to a series of meetings from February through April. As a result, the current farm bill was not passed until May 2002, a few weeks after the
1996 farm bill The Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127), known informally as the Freedom to Farm Act, the FAIR Act, or the 1996 U.S. Farm Bill, was the omnibus 1996 farm bill that, among other provisions, revises and simplifies ...
had already expired.


Contents


Summary

Provisions included: * Country-of-origin labeling for fresh beef, pork, and lamb


Spending tables

The following is the subsidies by crop in 2004 in the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
. Source
USDA The United States Department of Agriculture (USDA) is an United States federal executive departments, executive department of the Federal government of the United States, United States federal government that aims to meet the needs of commerc ...
2006 Fiscal Year Budget


Titles


Passage of the bill


Proponents of subsidy expansion

* Rep. Larry Combest (R-TX), chairman of the House Committee on Agriculture, drafts and sponsors initial house farm bill. His proposal would spend the equivalent of the entire federal budget surplus for FY2001, and included $76 billion in new spending on top of the previous bill's spending, for a total of $171 billion. * Rep. Terry Everett (R-AL), owner of of peanut crops, drafted $3.5 billion peanut provision i
Title I
* Sen.
Tom Daschle Thomas Andrew Daschle ( ; born December 9, 1947) is an American politician and lobbyist who represented South Dakota in the United States Senate from 1987 to 2005. A member of the Democratic Party, he led the Senate Democratic Caucus during the ...
(D-SD), Majority Leader, reassured South Dakotans that commodity subsidies would not be diminished as a result of heightened national security concerns. Credited with prioritizing the Senate version of the farm bill.


Shifting subsidies to conservation

* Rep. Ron Kind (D-WI) brought an amendment to shift $19 billion from commodities
Title I
to conservation
Title II
(amendment fails 10/4/2001, 200–226) ** Kind planned to re-introduce the content of his failed amendment in the next farm bill, with the Healthy Farms and Forests Act of 2006. * Rep. Sherwood Boehlert (R-NY) co-sponsored the Kind amendment. He looked to Florida fruit and vegetable growers for support, because they received no subsidies in 2001. "The inability to persuade more Florida members to vote yes was a key to its defeat." * Rep. Wayne T. Gilchrest (R-MD) also co-sponsored the Kind amendment. * Rep. Leonard Boswell (D-IA) brought an amendment to put $650 million into renewable energy, which failed (10/3/2001) * Sen.
Tom Harkin Thomas Richard Harkin (born November 19, 1939) is an American lawyer, author, and politician who served as a United States Senate, United States senator from Iowa from 1985 to 2015. A member of the Democratic Party (United States), Democratic Pa ...
(D-IA), senior Democrat on the Senate Committee on Agriculture, revised the House bil
(H.R.2646)
for passage in the Senate. After the passage of the House version, he told reporters about his ideas for "green" payments rewarding conservation methods. * Rep. Gil Gutknecht (R-MN) spoke for many legislators who complained that this was a "farm bill not an environmental bill" (10/4)


Subsidy caps

The largest difference between the House bill and its Senate counterpart was that the total amount of subsidies received by an individual farmer was capped by the Senate. Voicing concerns that "millionaire farmers" were reaping all the benefits of the farm bill legislation, a coalition of farm-state Senators pushed for these limits. * Sen. Charles Grassley (R-IA) was vehement about lowering subsidy caps from $500,000 to $225,000 "we don't want 10 percent of the farmers getting 60 percent of the farm bill." * Sen.
Byron Dorgan Byron Leslie Dorgan (born May 14, 1942) is an American author, businessman and former politician who served as a United States House of Representatives, United States Representative (1981–1992) and United States Senate, United States Senator (1 ...
(D-ND) cosponsored the subsidy cap amendment. * Sen. Ben Nelson (D-NE) supported subsidy caps "I believe, along with most Nebraskans, that our farm program should discourage consolidation in agriculture... These enormous payments do exactly the opposite." * Sen. Blanche Lincoln (D-AR) and Sen. Thad Cochran (R-MS) opposed capping subsidies. Lincoln was the only Democrat in opposition. Cochran said the caps would be "catastrophic for southern farm interests"


Opposing overproduction

After September 11, the farm bill was considered problematic for three reasons. First, it would neither receive nor deserve the careful attention necessary during the aftermath of the terrorist attacks. Second, its expenditures would consume the entire budget surplus, money that could be necessary for the American invasion of Afghanistan. Finally, Secretary of Agriculture Ann Veneman opposed the new farm bill. On September 19, her office issued a report criticizing traditional agricultural policies and calling for a shift from subsidies to conservation. According to her assessments, commodity subsidies would lead to
overproduction In economics, overproduction, oversupply, excess of supply, or glut refers to excess of supply over demand of products being offered to the market. This leads to lower prices and/or unsold goods along with the possibility of unemployment. T ...
and expensive land. Her position was supported by various other groups and legislators. * The White House
Office of Management and Budget The Office of Management and Budget (OMB) is the largest office within the Executive Office of the President of the United States (EOP). The office's most prominent function is to produce the president's budget, while it also examines agency pro ...
issued a formal manifesto (10/3) opposing the initial farm bill, calling it expensive and unresponsive to changes in agriculture. * Sen.
Richard Lugar Richard Green Lugar ( ; April 4, 1932 – April 28, 2019) was an American politician who served as a United States Senate, United States Senator from Indiana from 1977 to 2013. He was a member of the Republican Party (United States), Republ ...
(R-IN), a farmer with a modest operation, was outraged that the farm bill remained on Congressional agendas after the terrorist attacks. (Omaha Herald 9/27/01) ** Agreeing with Secretary Veneman and the White House, he argued that the farm bill causes overproduction so bad "we've got it coming out of our ears." ** Proposed 6 percent payment to cover premium on crop insurance instead of guaranteeing income. (1/21) * Sen.
Chuck Hagel Charles Timothy Hagel ( ; born October 4, 1946)Earl Pomeroy (D-ND) also opposed the revised bill, concerned that it will continue to subsidize overproduction.


Eggplant Caucus

With mounting opposition from both sides of the aisle, the fate of the farm bill was unclear in early 2002. Anxious farmers were frustrated by the gridlocked Senate, which had promised a quick resolution to the impending expiration of the previous bill. The emergence of the Eggplant Caucus, so named for a major New Jersey crop, was a major factor in the passage of the bill. Sen.
Patrick Leahy Patrick Joseph Leahy ( ; born March 31, 1940) is an American politician and attorney who represented Vermont in the United States Senate from 1975 to 2023. A member of the Democratic Party (United States), Democratic Party, he also was the pr ...
(D-VT) saw the opportunity for what he considered to be a more fair and equitable farm bill, and sought to unite over 20 senators from states with less powerful farming interests in support of subsidies for specialty crops and conservation. Active members of the Eggplant Caucus included Senators
Hillary Clinton Hillary Diane Rodham Clinton ( Rodham; born October 26, 1947) is an American politician, lawyer and diplomat. She was the 67th United States secretary of state in the administration of Barack Obama from 2009 to 2013, a U.S. senator represent ...
, Charles E. Schumer, and
Harry Reid Harry Mason Reid Jr. (; December 2, 1939 – December 28, 2021) was an American lawyer and politician who served as a United States Senate, United States senator from Nevada from 1987 to 2017. He led the Senate Democratic Caucus from 2005 to 2 ...
.


Timeline


The House of Representatives

September 10, 2001: $171 billion, 10-year farm bill (with $73 billion in new spending) reported out of committee, to be considered by the full House of Representatives. September 11:
September 11, 2001 attacks The September 11 attacks, also known as 9/11, were four coordinated Islamist terrorist suicide attacks by al-Qaeda against the United States in 2001. Nineteen terrorists hijacked four commercial airliners, crashing the first two into ...
September 19: Secretary of Agriculture Ann Veneman criticizes traditional farm policy, calls for a shift from commodity subsidies to conservation measures September 27: Secretary Veneman criticizes the new bill as expensive in post-9/11 budget, claims it will lead to overproduction and expensive land. October 2: Rep. Ron Kind (D-WI) introduces an amendment to shift $19 billion (approx. 15%) of commodity subsidies to conservation measures. October 2: Rep. Larry Combest (R-TX), farm bill sponsor, threatens to pull the bill if it is amended. October 3: Rep. Leonard Boswell (D-IA), proposes shifting $650 million to ethanol, amendment fails. October 4: Kind amendment falls 26 votes short, fails. October 5: 10 year, $73 billion farm bill increase passes in the House of Representatives. :''Source:'
(H.R.2646)


The Senate

October 24: Senators Ben Nelson (D-NE) and
Tom Harkin Thomas Richard Harkin (born November 19, 1939) is an American lawyer, author, and politician who served as a United States Senate, United States senator from Iowa from 1985 to 2015. A member of the Democratic Party (United States), Democratic Pa ...
(D-IA) reject Sec. Veneman's request that the Senate delay consideration of the farm bill to focus on war effort. December 14: Sen.
Patrick Leahy Patrick Joseph Leahy ( ; born March 31, 1940) is an American politician and attorney who represented Vermont in the United States Senate from 1975 to 2023. A member of the Democratic Party (United States), Democratic Party, he also was the pr ...
(D-VT) and his Eggplant Caucus add dramatic increases in conservation spending ($21.3 billion). Co-sponsors Nelson and Harkin cut the House version in half (5 year life, $45 billion in new spending). January 17, 2002: Spurred by a website listing absentee landlords of huge farms, Sen.
Chuck Grassley Charles Ernest Grassley (born September 17, 1933) is an American politician serving as the president pro tempore of the United States Senate since 2025, a role he also held from 2019 to 2021. A member of the Republican Party (United States), Re ...
(R-IA) supports an amendment to cap subsidy payments at $225,000. Amendment passes, shifting $1.3 billion to programs for beginning farmers. February 14: Senate passes a 5-year version of the bill, with a $45 billion spending increase, by a 58:40 vote. :''Source:'
(S. 1731)


Reconciling the bills

March 19: After two weeks of closed door negotiations, House agrees to $17 billion for conservation. April 19: House passes non-binding resolution capping subsidies at $275,000 per farm (a $50,000 increase from the Senate bill). April 26: Final version agreed upon: $360,000 subsidy cap, $17.1 billion for conservation. Expected to cost a total of $190 billion over ten years, an increase of over $90 billion (expires in September, 2007, six years later) May 13: The Farm Security and Rural Investment Act of 2002 signed into law by President Bush.


Criticism

Critics of U.S. agricultural policy claim that it may be in violation of
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...
agreements, asserting that domestic subsidies may be considered to be a
non-tariff trade barrier Non-tariff barriers to trade (NTBs; also called non-tariff measures, NTMs) are trade barriers that restrict imports or exports of goods or services through measures other than the imposition of tariffs. Such barriers are subject to controversy and ...
. Others, including the
Cato Institute The Cato Institute is an American libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Ed Crane, Murray Rothbard, and Charles Koch, chairman of the board and chief executive officer of Koch Industries.Koch ...
's Center for Trade Policy Studies, the
Union of Concerned Scientists The Union of Concerned Scientists (UCS) is a nonprofit science advocacy organization based in the United States. The UCS membership includes many private citizens in addition to professional scientists. Anne Kapuscinski, Professor of Environment ...
, the Iowa Corn Growers Association, and
Oxfam America Oxfam is a British-founded confederation of 21 independent non-governmental organizations (NGOs), focusing on the alleviation of global poverty, founded in 1942 and led by Oxfam International. It began as the Oxford Committee for Famine Relief ...
, argue that subsidizing domestic grains leads to overproduction that is harmful both for farmers and for the general public. They claim that subsidies depress market prices while increasing land values. Many farmers do not own their land, and as a result, the subsidies they receive are capitalized into the value of the land they farm, and therefore provide little benefit to the farmers themselves. Author Michael Pollan's book, '' The Omnivore's Dilemma'' suggests that corn subsidies in particular have led to the success of the feedlots or concentrated animal feeding operation (CAFOs) that he and journalist Eric Schlosser have blamed for the emergence of
e. coli ''Escherichia coli'' ( )Wells, J. C. (2000) Longman Pronunciation Dictionary. Harlow ngland Pearson Education Ltd. is a gram-negative, facultative anaerobic, rod-shaped, coliform bacterium of the genus ''Escherichia'' that is commonly foun ...
as a major health concern. Subsidized corn is so inexpensive that beef companies find it profitable to build large facilities to feed corn to their cattle. Cows do not normally live in enclosed areas or consume corn, so these CAFOs generate large amounts of waste and require antibiotics and other drugs to keep the animals healthy. Others have criticised the balance of subsidies on nutritional grounds, saying that oilseed crops (used to make
vegetable oil Vegetable oils, or vegetable fats, are oils extracted from seeds or from other parts of edible plants. Like animal fats, vegetable fats are ''mixtures'' of triglycerides. Soybean oil, grape seed oil, and cocoa butter are examples of seed ...
) and corn should be subsidized less (because it can be made into
high fructose corn syrup High-fructose corn syrup (HFCS), also known as glucose–fructose, isoglucose, and glucose–fructose syrup, is a sweetener made from corn starch. As in the production of conventional corn syrup, the starch is broken down into glucose by enzy ...
) and that fruits and vegetables should be subsidized more. The act's expansion of food stamp eligibility to non-citizens has also been criticized.


See also

* Biotechnology and Agricultural Trade Program * Butter-Powder Tilt * Community Fire Protection Program *
Conservation Reserve Program The Conservation Reserve Program (CRP) is a cost-share and rental payment program of the United States Department of Agriculture (USDA). Under the program, the government pays farmers to take certain agriculturally used croplands out of produc ...
* Conservation Security Program * Desert Terminal Lakes Program *
Distance Learning and Telemedicine Grant and Loan Program The Distance Learning and Telemedicine Grant and Loan Program (DLT) is a program authorized by the 1990 farm bill (P.L. 101-624) to provide grants to rural schools and health care provider A health care provider is an individual health professio ...
* Exporter Assistance Initiative * Partnerships and Cooperation Program * Resource Management System * Rural Strategic Investment Program *
Triple base plan In United States agricultural policy, the triple base plan, also called the flexible base plan, is a proposal under which farmers who raise program crops would receive program payments only on a certain percentage of their permitted acreage. A pro ...
* Technical Assistance for Specialty Crops


References


External links


Farm Security and Rural Investment Act of 2002
as amended
PDFdetails
in the GPObr>Statute Compilations collection

Farm Security and Rural Investment Act of 2002
as enacted
details
in the US Statutes at Large * on
Congress.gov Congress.gov is the online database of United States Congress legislative information. Congress.gov is a joint project of the Library of Congress, the House, the Senate and the Government Publishing Office. Congress.gov was in beta in 2012, and ...
* on Congress.gov
White House Farm Bill Summary
{{DEFAULTSORT:Farm Security And Rural Investment Act Of 2002 United States federal agriculture legislation Acts of the 107th United States Congress