2008 Farm Bill

The legislation for the 2008 Farm Bill entails a diverse set of agricultural, environmental, and energy policy goals. The 2008 Farm Bill as every other farm bill provides subsidies for farmers dependent upon the type of produce grown on the farm. However the 2008 Farm Bill takes a new approach particularly in the area of environmental and energy policy.

Provisions from the 2008 Farm Bill led to the implementation of a guaranteed loan for the creation of a commercial-scale cellulosic ethanol plant. Range Fuels Inc. will receive an 80 million dollar loan from the USDA to begin production of cellulosic ethanol from wood chips, to help initiate successful research and production of cellulosic ethanol in America. Although a step in the right direction towards alternative energy, cellulosic ethanol is still not a viable or productive energy source. Fossil-fuel energy particularly that of coal will be used to work the Range Fuels plant and petroleum will be used to ship wood chips across the country to them. The bill also has cellulosic energy tax credits worth about 400 million and gives incentives for farmers in the form of subsidies to produce energy crops. Even more money is provided for research and development of biomass facilities. Once again the net energy gained from cellulosic ethanol, much like corn based ethanol is significantly diminished by the inputs required to make it. The focus of this bill, as it has always been in America, is on innovation and changing the problem as opposed to incentives to lower energy usage.

The simplified process of wood chips to usable energy.

For most of the history of the farm bill the debate has raged about the incentives for land conservation and its allocation of funding. The debate between conservationists and agribusinesses continues as both argue over the importance of natural resources conservation and productive agriculture. The Grassland Reserve Program (GRP) and the Conservation Security Program (CSP) are two controversial and debated parts of the new Farm Bill. The Grassland Reserve Program added an additional 1.22 million acres to its conservation efforts. It allows third parties to more accessibly reach an agreement with the USDA to hold environmental easements with landowners. The Conservation Security Program increased funding by 1.3 billion for the next five years but gives much discretionary authority to third parties and the state. The CSP will give up 7.2 million acres under its protection but third parties may purchase lands to go under CSP authority. There is a serious debate about the new amendments to the CSP. Conservationists fear that the newly released lands will be bought and used for agriculture production and abuse resources in unstable areas. The GRP is under scrutiny from agribusinesses for its huge increase in land protected from cultivation.

One of the biggest problems with agriculture, energy, and environmental policy is that too often conflicting interests battle with uneducated politicians about how to set up agricultural subsidies. The focus of the Department of Agriculture and the USDA is very undecided. Never is there a clear message that they are trying to improve agricultural production or environmental protection. Until Americans pay the true costs of food and energy, energy resources will always be depleting. The subsidized food industry allows people to have a greater quality of life in that they can spend more of their income on non-necessities. American's only spend 10-15% of their income on food. The growth problem in a lot of the world would slow down as food becomes more expensive and more scarce. Environmental quality will improve because there would be less petroleum fertilizers and dangerous synthetic pesticides running off into our waters and streams. Until the farm subsidy system rewards organic produce and promotes conservation, the fight over natural resources will continue to ensue in an ugly and wasteful battle.

Can we provide food for the well being of America while still protecting our natural resources?