A new farm bill is complete and nears approval for the 2002 crop
season. Georgia farmers hope this new deal can correct past
mistakes and hand them a better way to deal with a sluggish U.S.
farm economy trying to ease its way into a global market.

“The Farm Security and Rural Investment Act of 2002,” long
debated by House and Senate conferees, has now been published.
It must be passed by both chambers and then signed by President
Bush before becoming law.

“From what we can see, this new bill will provide for a much
better income safety net for farmers,” said Don Shurley, a
cotton
economist with the University of Georgia College of Agricultural
and Environmental Sciences.

Out with the Old

The new farm bill replaces the controversial “Freedom to Farm
Act
of 1996,” which sought to wean farmers off government subsidies
and into world competition.

This new six-year farm bill is priced at $170 billion, more than
double the government’s spending for the
1996
farm bill.

“This shows that the government is willing to support U.S.
agriculture,” said Nathan Smith, a CAES peanut economist.

Major Change

Peanut growers face major changes in the new farm bill. Georgia
produces the lion’s share of the total U.S. peanut crop.

In the past, the U.S. government regulated, through a quota
system, how peanuts were sold. Under the new farm bill, peanuts
will be treated much like other U.S. commodities. They’ll be
subjected to world competition. Current quota holders will be
compensated for the loss of the old pricing system.

But Smith said Georgia peanut growers can handle the pressure.

“The new farm bill will put our peanuts within about 5 cents per
pound of the world price,” he said.

U.S. manufacturers, he said, would be willing to pay the small
difference for U.S.-grown peanuts.

“The peanut grower that will survive under this farm bill will
be
the one with a low cost of production … who can find a niche
market for certain peanut traits (manufacturers want),” Smith
said.

By the Rules?

The old farm bill sought to comply with world trade rules and
take the government out of the business of controlling the
supply
of major U.S. commodities, such as cotton, wheat, corn and
soybeans.

It did just that, Shurley said. But prices plummeted, with no
adequate safety net to catch the farmers. The government had to
pay out record ad hoc payments to keep many farmers in
business.

Engineered into the 2002 farm bill are mechanisms to compensate
farmers during times of low prices and let things alone when
prices improve. The new farm bill also increases spending to
compensate farmers for improved farm conservation and
environmental practices.

U.S. Rep. Saxby Chambliss (R-Ga.) was the only member of the
Georgia delegation to serve on the farm bill conference
committee.

“It’s going to be a better deal than you’ve had,” Chambliss told
about 70 cotton and peanut farmers in Doerun, Ga., April
26. “You
guys are going to be happy with the numbers on peanuts and
cotton
(and other major U.S. crops).”

But already, other countries are questioning whether or not the
new farm bill complies with the World Trade Organization. They
threaten to protest the new bill.