Search

(…) USDA controls the level of marketable sugar supply through: (…) (3) the Feedstock Flexibility Program, which authorizes the Secretary of Agriculture to sell surplus sugar to bio-energy producers (sugar for ethanol). (…)

The "miscellaneous" title of the 2014 Farm Bill contains a variety of measures, including SPS or TBT measures (e.g. country-of-origin labelling), and the Non-insured Crop Disaster Assistance programme, which was notified in the natural disaster relief category of the Green Box (US$262 million in FY2011).

The NAP (Non-insured Crop Disaster Assistance programme) is administered by the USDA FSA for producers of crops that are not eligible under crop insurance programmes (administered by the RMA). Prior to the 2014 Farm Bill, the NAP coverage was similar to the Catastrophic Coverage (CAT) crop insurance, and covered losses due to drought, flood, or other natural disasters, as determined by the Secretary of Agriculture. Payments were made to producers if the FSA determined that there was a yield loss greater than 50% of the historical yield for the individual farm; the payment rate was 55% of the average market price. The 2014 Farm Bill makes a number of amendments to the programme (P.L. 113 79, Sec. 12305): additional "buy-up" coverage above the catastrophic level (50%), ranging up to 65% of historical yields and 100% payment rate, for a fee and premium charge; changes the definition (eligibility) from "industrial crops" to "sweet sorghum, biomass sorghum, and industrial crops (including those grown expressly for the purpose of producing a feedstock for renewable biofuel, renewable electricity, or biobased product"); and increases the annual payment limit from US$100,000 to US$125,000 per person.

The 2008 Farm Bill authorized a range of conservation measures, 13 of which were notified by the United States in the environmental payments category of the Green Box (totalling US$4.9 billion in FY2011). The 2014 Farm Bill retains the three main agricultural conservation programmes (Conservation Reserve Program, Environment Quality Incentive Program (EQIP), and Conservation Stewardship Program), while the smaller programmes were repealed and consolidated into two new programmes. All notified conservation programmes are administered by USDA. Overall, the new Farm Bill reduces expenditures for conservation measures.

Participation in conservation programmes is voluntary, although a number of farm programme benefits are tied to conservation compliance requirements, notably the requirement to implement an approved soil conservation system on highly erodible land. The new Farm Bill adds premium subsidies under the crop insurance programme to the list of benefits (marketing loan programme, PLC, ARC, and disaster payments) that farmers risk losing in case of non-compliance (P.L. 113-79, Sec. 1118 and Sec. 2611).

The value of preferential interest rates (relative to commercial interest rates) for direct ownership and operating loans, as well as the value of FSA (USDA Farm Service Agency) guarantees of commercial ownership and operating loans are reported in the Green Box under "structural adjustment assistance provided through investment aids" (US$150 million in FY2011). The value of lower than commercial interest rates for FSA emergency loans are notified under "payments for relief from natural disasters" (US$2 million in FY2011).

The Conservation Reserve Program (CRP) offers financial compensation to farmers willing to retire environmentally sensitive land from crop production for at least ten years. The CRP cap will be gradually reduced from 32 million acres in the 2008 Farm Bill to 24 million acres by FY2017 , continuing the policy shift away from land retirement through the CRP towards conservation measures on land that is in agricultural production (EQIP or Conservation Stewardship Program).

Table 4.2 Key domestic support programmes
(US$ million)
Green Box
(…) Conservation Reserve Program: Marketing year 2010: 1,793; Marketing year 2011: 1,795

Table 4.2 Key domestic support programmes
(US$ million)
Green Box
(…) Environmental Quality Incentives Program (EQIP): Marketing year 2010: 1,246; Marketing year 2011: 1,231

The energy title of the 2014 Farm Bill deals with various renewable energy programmes that provide incentives for research, development, and production of bio-fuels.