AP News, December 14th, 2007
A comparison of the Senate and House five-year, $286 billion farm and nutrition bills. Both bills expand subsidy programs for several crops, including wheat, barley, oats and soybeans, add money for fruits and vegetables and increase loan rates for sugar producers.
The bills also boost funding for food stamps and other nutrition programs, conservation programs that protect environmentally sensitive farm land and incentives for the production of renewable fuels.
Both bills would require meats and other fresh foods to be labeled with their country of origin starting next year.
Neither bill reduces direct payments, which many farmers receive regardless of crop yield.
SENATE BILL
_By 2010, bans subsidies to farmers whose adjusted gross income exceeds $750,000 and who earn less than two-thirds of their income from agriculture. Current law bans payments for those with incomes above $2.5 million and make less than three-fourths of their income from farming. Would also ban some farmers from collecting payments for multiple farm businesses.
_Increases spending by $5.3 billion for nutrition programs, $4.4 billion for conservation programs that protect environmentally sensitive farm land, and $1 billion for renewable energy programs.
_Includes $5 billion aid package for farmers who have suffered weather-related disasters.
_Is partially paid for by penalizing companies under the "economic substance" doctrine, which holds that for a company to claim a tax deduction for a specific transaction, that transaction must yield a profit or have some other clear economic benefit separate from the tax effect. The Bush administration has opposed similar efforts in the past.
HOUSE BILL
_On enactment, bans subsidies to farmers whose adjusted gross income exceeds $1 million. Also bans subsidies to those whose income exceeds $500,000 if more than one-third of that income is from non-farming sources. Would also ban some farmers from collecting payments for multiple farm businesses.
_Increases spending by $4.2 billion for nutrition programs, $2.8 billion for farm conservation programs, and $2.4 billion for renewable energy programs.
_Does not include a weather-related disaster fund.
_Is partially paid for by imposing new taxes on certain multinational companies with U.S. subsidiaries.
(This version CORRECTS Corrects to say that House bill would ban some farmers from collecting payments for multiple farm businesses, sted allowing it.)
