| WASHINGTON
—U.S. Senator Debbie Stabenow (D-MI) today announced that the Conference
Committee has completed deliberation on the 2007 Farm Bill, which makes
critical investments in alternative energy. This legislation provides
tax incentives for the development and production of fuel from cellulosic
alcohol, which is made from materials such as the leaves and stalks of
corn, switchgrass, and other organic materials that can be grown anywhere.
“Our economy is going through a transformation
where the right investments today will create a strong economy, new
jobs and energy independence tomorrow,” said Stabenow. “This
legislation is a crucial step to ensure consumers and businesses have
the resources needed to make much needed investments into green, renewable
energy.”
As a member of the Farm Bill
Conference Committee and Senate Agriculture Committee, Stabenow has
served as a leading voice for Michigan throughout the crafting of this
legislation. She has served on agricultural committees in all four legislative
bodies in which she was a member, including the Michigan House, Michigan
Senate, U.S. House and currently, the U.S. Senate. She is also the first
Senator from Michigan to serve on the Senate Agriculture Committee since
Senator Phil Hart from 1959 to 1962.
Alternative Energy
Provisions Included in the Farm Bill:
Cellulosic Ethanol Tax Credit
• Creates a new tax credit for the production of cellulosic ethanol.
This tax credit will help build upon the traditional corn ethanol tax
credit so we can find new sources of renewable fuels. This will also
help alleviate the demands put upon corn and overall food prices.
Biodiesel and Alternative
Fuel Provisions
• Extends for two years the income tax credit, excise tax credit,
and payment provisions for biodiesel. In order to encourage the participation
of small producers into the market, this section would also extend the
small agri-biodiesel produce credit for an additional four years
Loan Guarantees for Advanced
Biofuels Production
• $320 million in mandatory funding for loan guarantees to assist
in the development and construction of commercial, advanced biofuel
production plants.
Biomass Research and Development
Act
• $118 million in mandatory funding for continued research of
cellulosic ethanol by extending the Biomass Research Development Act.
Also establishes a Forest Bioenergy Program to address the use of woody
biomass for energy production.
Rural Energy for America Program (REAP)
• Reauthorizes and provides $250 in mandatory funds which provides
loans, loan guarantees and grants for producers to purchase and install
on the farm renewable energy systems.
CCC Bioenergy Program
• Makes adjustments to this program to provide incentives for
increased use of agriculture commodities (except corn) and agriculture
and forestry waste for biofuels. Provides $300 in mandatory funding
over the life of the bill.
Biomass Crop Assistance Program
(BCAP)
• Provides incentives for producers to establish and grow cellulosic
energy crops. $70 million in mandatory funding for 2009-12.
Feedstock Flexibility Program
for Bioenergy Producers
• Requires the Secretary to purchase sugar for bioenergy production
to avoid forfeitures of sugar to the Commodity Credit Corporation, and
to ensure that the sugar loan program is operated at no cost to the
federal government.
Biodiesel Fuel Education Program
• $1 million in mandatory funding for the reauthorization of this
program.
Other Provisions Included in the Farm Bill:
Specialty Crop Provisions:
$15 million for Asparagus:
This program will help support domestic asparagus producers in Michigan,
Washington, and California who were hurt by the Andean Trade Preference
Act. The market loss program will compensate these growers to help them
plant new acreage and invest in more efficient planting and harvesting
equipment.
$70 million for tree removal
assistance:
This program will help increase payments to qualifying growers for tree
removal and replacement as a result of damage caused by natural disaster.
Current payments do not reflect the actual costs for removal and replacement.
$59 million for trade assistance:
This funding will help boost specialty crop exports by facilitating
the removal of specialty crop trade barriers.
$230 Million for Specialty
Crop Research
This establishes a specialty crop priority focused grant program, awarding
grants to eligible public and private entities to improve the efficiency
and competitiveness of U.S. specialty crop producers.
$78 Million for Organic Research
This will provide for organic agriculture research and extension, to
enhance the ability of organic producers and processors to grow and
market organic food, feed, and fiber.
$800 million for Specialty
Crop Growers in the Disaster Relief Trust Fund:
Currently, ad hoc agriculture disaster relief packages often get to
farmers too late - sometimes years after the disaster. This delay can
mean the difference between maintaining production and losing a farm
for good. Michigan has received about $260 million in disaster relief
from 1995 to 2006. This fund will ensure Michigan farmers can get these
payments faster and easier.
$466 million for the State
Block Grants for Specialty Crops program:
These grants will help support state programs encouraging the consumption
of fruits, vegetables and other specialty crops and enhance the competitiveness
of the specialty crop industry.
$377 million for pests and
disease prevention:
This provision will direct the United States Department of Agriculture’s
Animal and Plant Health Inspection Service to create a program determining
and prioritizing foreign threats to specialty crops’ production,
such as bio-terrorism and will help protect the specialty crop industry
from pests and diseases.
$20 million to establish a
National Clean Plant Network:
The National Clean Plant Network will help ensure that nurseries provide
safe virus-free plant materials to orchards, vineyards, and other growers.
Plant materials such as apples, peaches, and grapes are particularly
vulnerable to viruses.
$33 million for farmers’
markets:
These federal grants will support direct farmer-to-consumer marketing
activities and transactions such as farmers’ markets, roadside
stands, on-farm markets, and community supported agriculture.
$3 million for healthy food:
This program will help support an infrastructure that serves healthy,
affordable food to low-income communities.
$1.3 billion for the School
Snack Program:
This Stabenow provision will help support the Fresh Fruit and Vegetable
Program with $1.3 billion in funding. This program helps increase children’s
access to healthy food options, reducing their risk of obesity and improving
their overall health. This program will serve up to 81,000 students
in Michigan when fully implemented, and up to 3 million children around
the country
$50 million for the Community
Food Projects Competitive Grants Program:
These grants will help support innovative community food projects and
promote a wide variety of community-based solutions to local food system
and food security problems.
$50 million for the Seniors
Farmers Market Nutrition Program:
This program will provide coupons to low-income seniors for the purchase
of fresh, unprepared foods at farmers’ markets and other community
based agriculture programs.
Nutrition Title Provisions:
Fruit and Vegetable Snack
Program
• This Stabenow provision will help support the Fresh Fruit and
Vegetable Program with $1.3 billion in funding. This program helps increase
children’s access to healthy food options, reducing their risk
of obesity and improving their overall health.
• This program will serve up to 81,000 students in Michigan when
fully implemented, and up to 3 million children around the country
Buy American
• This Stabenow provision helps local farmers by enforcing a requirement
for schools to purchase products from American producers (to the extent
possible). Requires USDA to provide education and marketing to schools
about “Buy American” to give our local farmers a chance
to compete
Food Stamps
• $7.8 billion increase in Food Stamps funding
• This funding will reform the food stamp asset test to encourage
savings among low-income families. The nutrition title indexes the asset
limit to keep pace with inflation, and exempts tax-preferred education
and retirement accounts from counting against the asset limit.
• This provision will also end the benefit erosion for food stamps
by increasing the standard deduction, which functions as a cost of living
adjustment, from $134 to $144 and indexes it to inflation, ending benefit
erosion and increasing food stamp benefits for the majority of participating
families.
Senior Farmers Markets
• Will provide coupons to low-income seniors for the purchase
of fresh, unprepared foods at farmers’ markets and other community
based agriculture programs.
The Emergency Food Assistance
Program (TEFAP)
• This program supplies food to homeless shelters, food banks
and disaster relief centers. These agencies are currently facing rising
food costs and a drop in donations.
• $1.25 billion increase
Community Foods Program
• $50 million for Community Food Projects Competitive Grants Program
• These grants will help support innovative community food projects
and promote a wide variety of community-based solutions to local food
system and food security problems. Additionally, the Farm Bill makes
this program permanent and authorizes studies on finding better ways
to improve fresh food delivery to isolated areas.
Renaming the Food Stamp Program
• The nutrition title agreement would rename the Food Stamp Program
the "Supplemental Nutrition Assistance Program" (SNAP); and
authorizes the Congressional Hunger Center's fellows programs.
Conservation/Great
Lakes Provisions:
The Great Lakes Basin Program
for Soil Erosion and Sediment Control
• Senator Stabenow added language so this funding can be used
to help implement the Great Lakes Regional Collaboration Strategy (GLRC)
to restore and protect the Great Lakes. Connecting the program to the
GLRC strategy will help two priority recommendations – targeting
clean-up activities in severely polluted rural watersheds, and restoring
urban watersheds degraded by development.
Wetlands Reserve Program (WRP)
• $1.3 billion authorized to enroll new acreage. This funding
will enhance the first lines of defense for water quality and providing
more wildlife habitat.
Conservation Easements –
Tax Incentive
• Gifts of conservation easements to organizations that are dedicated
to maintaining natural habitats, open spaces, or traditional agriculture
help protect our nation’s heritage.
• Extends for two years an enhanced tax deduction for conservation
easements, which would allow all taxpayers to deduct up to 50 percent
of their adjusted gross income (AGI) for donations of conservation easements,
or 100 percent of the their AGI if they are a farmer, rancher or forester.
Endangered Species Protection
– Permanent Deductions
• Additionally, the farm bill would establish a new tax incentive
for taxpayers who take voluntary measures to aid in the recovery of
threatened and endangered species. These incentives allow a deduction
for the costs of implementing habitat restoration actions from a recovery
plan.
Farmland Protection Program
• Over $500 million in additional money (doubles current funding)
to provide matching funds to help buy the development rights to keep
farm land in agriculture uses.
• Complete change in program to make it more flexible for participants.
Wildlife Habitat Incentives
Program (WHIP)
• This program allows private landowners to apply for grants to
restore and create new habitats for game and nongame species.
Environmental Quality Incentives
Program (EQIP)
• $2.4 billion in additional funds to help producers meet more
environmentally safe guidelines. Non-industrial private forest land
clarified as eligible land.
• Expand program to include working lands that contain forestry
and riparian areas.
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