# [[Highlights of USDA's 2007 Farm Bill Proposals]{.underline}]{.smallcaps}

***"These proposals represent a reform-minded and fiscally responsible
approach to making farm policy more equitable, predictable and protected
from challenge."** --- Mike Johanns, U.S. Secretary of Agriculture*

-   **Demonstrate fiscal responsibility**

    -   Spend approximately \$10 billion dollars less than the 2002 farm
        bill spent (past five years, excluding ad-hoc disaster aid)

    -   Uphold President Bush's plan to eliminate the deficit within
        five years

-   **Support emerging priorities**

    -   Increase funding for renewable energy, conservation, research,
        rural development and trade

    -   Authorize approximately \$5 billion more than the projected
        spending if the 2002 farm bill were extended

-   **Tighten payment limits**

    -   End commodity program subsidies to producers who are among the
        top 2.3% of Americans with an Adjusted Gross Income of \$200,000
        or higher

    -   Eliminate the three entity rule and set the payment limit at
        \$360,000

-   **Ensure a strong safety net for producers**

    -   Reduce gaps that currently leave producers without a safety net
        in low yield years

    -   Increase direct payments to provide a more predictable safety
        net that will withstand challenge

-   **Increase conservation funding by \$7.8 billion**

    -   Simplify and consolidate programs

    -   Create new Environmental Quality Incentives and Regional Water
        programs

-   **Provide \$1.6 billion in new funding for renewable energy
    research, development and production**

    -   Target cellulosic ethanol production

    -   Support \$2.1 billion in loan guarantees for cellulosic energy
        projects

-   **Provide \$1.6 billion in loans and \$500 million in grants for
    rural communities**

    -   Rehabilitate more than 1,200 current Rural Critical Access
        Hospitals

    -   Decrease the backlog of rural infrastructure projects

    -   Consolidate and simplify rural development programs

-   **Dedicate nearly \$400 million to trade efforts**

    -   Expand exports

    -   Fight trade barriers and expand involvement in world trade
        standard setting bodies

-   **Target nearly \$5 billion in funding to support specialty crop
    producers**

    -   Increase nutrition in food assistance programs by purchasing
        more fruits and vegetables

    -   Fund specialty crop research

    -   Fight trade barriers and expand markets

-   **Provide \$250 million to increase direct payments for beginning
    farmers and ranchers**

    -   Reserve a portion of conservation funds to support beginning
        producers

    -   Provide more flexibility in loans for down payments, land
        purchases and operating costs

-   **Support socially disadvantaged farmers and ranchers**

    -   Reserve a portion of conservation assistance funds for socially
        disadvantaged producers

    -   Increase access to down payment, direct operating, and farm
        operating loans

-   **Simplify, modernize, and rename the Food Stamp Program**

    -   Improve access for the working poor and better meet the needs of
        recipients and States

    -   Strengthen program integrity

-   **Improve disaster relief**

    -   Create a revenue-based counter-cyclical program

    -   Ensure gap coverage in crop insurance

    -   Link crop insurance participation to farm program participation

    -   Create a new Emergency Landscape Restoration Program

**\*\*\*FUNDING REFLECTS TEN YEAR TOTALS\*\*\***