after a long day's work. the work we do around this table is hard. farm bills are never easy. and a farm bill like this, especially when we're making serious needed reforms, while also cutting the deficit by $23 billion isn't easy. and i am very appreciative of all of the hard work of everyone sitting around this table. we have examined every program in the farm bill. we have reformed, streamlined and consolidated to get perhaps the most significant reforms in agricultural policy in any farm bill in recent memory. we've listened to farmers, we've strengthened crop insurance and made that the centerpiece of risk management. we have a risk management tool that supplements crop insurance that will work for farmers and save money. some of our members wanted an individual system, some wanted

an accounting system, so we are giving farmers flexibility to decide what's the best for their farm and the risks that they face. we have the tightest payment limits ever, and i want to thank senator grassley for his tireless work on this issue. we now have one simplified limit on income. of $750,000. we will give farmers the assistance they need when there are losses. it will be based on what's actually planted. in other words, the era of direct payments is over. we are working to strike a balance among the different regions and commodities. we will now have a permanent baseline for livestock disaster assistance. and i want to say a special thank-you to senator baucus for his advocacy and hard work on that issue. in short we have put together a bipartisan farm bill that's focused on farmes and that gives

them simplicity, flexibility and real accountability. we're continuing the incredible work that gets done every single day because of the conservation title. we're reducing complexity and refocusing programs to better support farmersers and landowners who protect our land and water and wildlife. we're increasing transparency to make sure every dollar does the most good. we're continuing our nation's commitment to those most in need. everywhere i go this michigan, i hear from people who never before in their lives imagined they would need help putting food on the table for their families. we need every dollar going to those people who need it and not to waste, fraud or abuse. we're expanding expect opportunities, investing in critical agricultural research and supporting innovative bioenergy and bio-based manufacturing companies who are creating jobs across the country.

we recognize the diversity of agriculture with a renewed commitment to specialty crops and organic farms as well as support for farmers' markets and food hubs. we've streamlined the world development teutul, we've ended 16 authorizations that either have never received funding or were duplicative of other efforts so that we could extend and simplify rural development loans that have proven effective for rural job creators and local infrastructure projects that we all know are so important in communities that we represent. this farm bill, as we all know, is a jobs bill. and you can see it in every title and every page. 16 million people work in this country because of agriculture. i would call that a jobs bill. america is the world leader in agriculture exports, and that success is not only critically important for our economy and

the 16 million people whose jobs rely on agriculture, but also for our national security. that's why we're so committed to getting this done this year. and this markup is the first step in that process. i want to thank all of our wonderful staff who have worked so hard to get us to this point. i want to thank the department of agriculture for all of their hard work and help as we've gone through the process. and i want to thank every single member of this committee who have brought very important ideas to the table and worked very hard in good faith to get us to today's markup. and finally, i want to thank my great partner, senator roberts, for all of the long hours and hard work we have done together to write a farm bill that makes sense for farmers, ranchers, rural communities, and american taxpayers and consumers. this has been a long and winding road with more to come.

and i greatly appreciate our partnership. i'd now like to recognize senator roberts. >> it is a privilege to be with you here today as we mark up the agriculture reform underscore reform food and jobs act of 2012. i thank you pore for your comments, and i return the compliment. this legislation representeds the final product of numerous hearings, many hearings and months of discussions as we've worked to write a new farm bill during the most difficult budget climate in our nation's history. i am proud to say that we have put together a bipartisan bill that strengthens and preserves the safety net for our farmers and ranchers. and truly, it was an effort in a bipartisan way. still, i want to underscore what the chairwoman has said. we are still providing $24.7

billion in deficit reduction under this mark has drafted. i don't know of any other committee that has done this. we did this previously with the super committee. and now we're doing it again. and so in terms of deficit reduction, i think we're standing up to our responsibilities. let me repeat it. the senate ag committee has drafted a bill that voluntarily provides $24.7 billion in deficit reduction. we have eliminated, as you have indicated, madam chairman, four commodity programs, rolled them into one, while saving approximately $15 billion from farm safety net programs. without really disturb iing the safety net. 23 conservation programs are streamlined into 13 while saving nearly $6.4 billion. $4 billion is saved in the nutrition title. 15 program authorizations are eliminated in the rural development title, eltding over $1 billion of authorized spending over ten years. two programs are combined, and another two eliminated in

specialty crops. $1.2 billion in mandatory money is transferred to discretionary. and the energy title. five programs are eliminated in the forestry title, reducing authorizations by at least $20 million. and over 60 authorizations are eliminated from the research title, reducing authorizations by at least $770 million over five years. madam chairman, that is $24.7 billion, or if you're writing it in the press, almost $25 billion. and mandatory savings. at least $1.8 billion in reduced discretionary authorizations and at least 96 programs or authorizations eliminated. that's the speech i think we're going to probably have to give on the floor of the senate when we get the bill to the floor of the senate to prove to the critics that this is a reform bill. no other committee in the house or senate has voluntarily undertaken programmatic and funding reforms athe this level

in this budget climate. this is not only a reform bill. it is one that strengthens our farm risk management, our conservation, our research, and our rural community programs. we have strengthened and preserved the crop insurance program. that is the number one priority of virtually every producer that testified before our committee. number one. without question. any region that we went to. every hearing that we've had, crop insurance on behalf of farmers and ranchers in the ag lechbdsi i lending community, that's been number one. we've streamlined our commodity programs. we've updated the acreage upon which support is based or reflect more recent cropping patterns. and that's the point i really want to discuss a little bit more. in recent days, it has seemed there has been a little confusion here in the capital region. it seems that some think we should write farm safety net programs and allocate their funding by commodity group or organization. if all you did was listen to these groups, you'd think we're

robbing peter to pay paul. i understand that the elimination of direct payments is a big deal to many commodities. well, i originally authorized that program. back in 1996. one of the biggest beneficiaries of the program has been wheat, especially in kansas. but the taxpayers have been clear in this budget climate, why should congress defend a program based on planning acreages established over 25 years ago? yes, the elimination of direct payments means the end of many wheat payments in kansas. and other wheat-producing areas. but that does not mean kansas producers will no longer have a farm safety net. quite the contrary, they'll have a strong risk management program. it will just be for different crops. why am i saying that? because when base acres were established 25 years ago, kansas planted 2 boit 8 million acres of corn, 4.2 million acres of sorghum, 1.6 of soybeans, 12.1

million acres of wheat. in the most recent three-year period, however, the reality period in which we live, kansas farmers and in other states very similarly planted 4.6 million acres of corn, 2.6 million acres of sorghum, 4 million acres of soybeans and 8.8 million acres of wheat. that's 4.9 million fewer acres of wheat, sorghum and 4.2 million more acres of corn and soybeans. now, these acreage shifts have occurred because farmers made those decisions. not washington. our producers have planted for the domestic and the international market. money is shifting among many commodities dawes farmers are farming differently throughout the states on this committee. it is not shifting because we are intentionally picking winners and losers. i am very proud of this legislation. we've worked hard to put together not the best possible bill but the best bill possible under difficult circumstances. we performed our duty to taxpayers by cutting deficit

spending while at the same time strengthening and preserving the programs so important to agriculture and rural america. and we've done it, again, madam chairman, in a bipartisan fashion. thank you for bringing us to this point today. and let's pass this farm bill. >> well, thank you very, very much for your comments. and now we want to hear from members. and as we do with a markup, we'll recognize members in order of seniority, alternating from one side to the other. and so senator leahy. >> well, thank you, madam chairwoman and also ranking member roberts. i know you and i discussed this many, many times. late last night, we did. i was able to go home and go to bed. i know you stayed up working. and i think of the fact that you two worked together, and i looked down at the end of this room at the picture painted of senator lugar and myself. we chaired -- we each chaired this committee many different

times. we were each ranking members different time. and we found getting farm bills, you work together in a bipartisan fashion. i know i -- it was great working with senator lugar on that, and i've worked with senator roberts and you. it's the only way it works. you don't get a perfect bill, but you get a bill that can pass. and you get a bipartisan bill. that's the way the senate used to be. that's the way the senate should be. incidentally, when dick and i started, we sat down about where those paintings are. we were that junior. your mark of who's an important dairy reform proposal i believe will help our producers and consumer consumers. this dairy reform proposal will help our producers and consumers get off the dangerous roller coaster of price swings. i think it's a key to our

consideration in our farm bill. i know farmers in vermont are watching it closely as i am. i hope that we can find a bipartisan compromise that will create both a newmar engine protection program and allow our farmers to have a proactive effort in their farm programs. it will go a long way toward easing the volatility in our dairy markets with the dairy market stabilization program. just like corn, wheat and soybeans, sugar, cotton and many other problems in our country, dairy farmers work hard for a living, and none of us want to leave them out. you've made great improvements in rural development and conservation titles. i know both of you have worked painstakingly to consolidate what would have been a confusing alphabet soup of programs and authorization. and i continue to work with you on the new agriculture conservation easement program. i think we have to work now to slow the loss of farmland in

this country. farmland is part of our national security. it is not sustainable. we lose over 1 million acres of farmland each year. since this is the only federal program available for farmland protection, i hope that we can give more funding to the agriculture land easement. and as the author of the organic foods production act, i'm extremely pleased the bill continues to make strong improvements for organic agriculture as well as local foods. i'm very pleased, madam chairwoman, you've agreed to accept my amendment that gives the national organic program much needed authority to effectively protect and force organic integrity. that will give consumers confidence in the brand. the markup also includes support for a critical anti-hunger program such as supplemental nutrition assistance program, the emergency food assistance program. i think that's not just important in vermont, it is

every part of the country, and i'll continue to work with the both of you to include ways to make purchasing local food a reality in the nutrition assistance program. i want to applaud the work by both the chair and the ranking member to improve the national quality of food aid. and on and on. the rest of that in the record, but this is the committee on agriculture and nutrition and forestry. the both of you have recognized all three of that, and i applaud you for it. it is not an easy job, as i know. >> well, thank you very much. and senator leahy, we appreciate your leadership on dairy over the years as the champion of helping us get this right as well as organics and nutrition and other areas as well. and now someone else who has been terrific leader, senator lugar, we would love to hear from you. >> well, thank you very much, madam chairwoman and ranking

member roberts. before i begin, i want to thank the staff, the senate legislative council and congressional budget office for their assistance during this hurried process. i appreciate the work of the committee staff in particular. however, with major revisions to the commodity title being offered only late last night and no score being made available as of this morning, i'm concerned that members of the committee have not been given appropriate opportunity to review the proposed before today and the manager's amendment. but as previous chairman, ranking member, as you pointed out, senator leahy so generously mentioned, i recognize the very great challenge of writing a farm bill that meets the needs of policy reform and fiscal responsibility. as a farmer, i also recognize the need for policy certainty. farmers have enough of a challenge in meeting market and weather uncertainty. so the congress should not make

it more difficult for them by offering political impasses. i commend the chair and ranking member for including in the draft bill several similar policy proposals that i advocated as part of my rural economic farm and ranch sustainability and hunger, the refresh act, last year such as strengthening of the federal crop insurance programs, elimination of direct payments, and countercyclical payments, a shallow loss revenue option for producers that assist only in times of need, not every year, and a production in the size of the conservation reserve program so their productive acres are used to produce and consolidation of several working programs and consolidation of conservation easement programs. i note, however, that while the committee draft offers savings in the area of $25 billion, much more should be done. my refresh act would save $40 billion, making a substantial contribution to reducing our nation's unstable fiscal

situation. so while i'm pleased to see that the committee adopt some of the refresh provisions, i look forward to working with this committee in the markup and on the senate floor. and with my partner, congressman marla stutzman on the house agriculture committee to realize further taxpayer savings. notably, the committee marked little to reduce waste and insure the fiscal situation of our food and nutrition programs which actually accounts for more than 75% of annual farm bill spending. by closing loopholes in the food stamp program, that grant eligibility to some who are not truly needy, we could still meet legitimate hunger and nutrition needs and also fullfill our budgetary obligations. the refresh act demonstrates that substantial savings are possible, even as we fund vital programs. and in particular, the committee draft provided virtual hi no

funding for energy. energy is an important growth area for rural jobs and the incomes of families, farms and small businesses. at the same time, rural americans are rightly proud that they are improving america's national security situation by reducing the need for foreign oil. i thank senator conrad and the bipartisan majority of this committee that has joined me in funding the energy title. and i am proud that american agriculture does not need the federal government to make its decisions. our freedom to farm act ended many of those old controls. in a globally competitive marketplace, american agriculture has remained on top because of efficient land use, machinery, science and technology. and as we debate these policies today, we can celebrate the fact that america's farmers and ranchers will continue to grow even more successful, remaining the world's leader in feeding growing populations. if our government programs stay out of their way.

i thank you again, madam chairlady. >> thank you very much, senator lugar, and for all of your ideas and thoughtfulness and hard work that's helped get us to this point. and that has helped us to this point. and turning to senator conrad, i know he will speak to this, we do have good news on the energy front. i want to take a point of personal privilege with sarah conrad to say what i said in the budget committee earlier, about the fact that very, very sorry to see you retire. you have been an extraordinary budget chair. nobody knows more about agriculture than you do, sitting around here in terms of economics and numbers and how to make it work. it's a great pleasure to work with you, and we're going to continue. and just very grateful for all of your leadership over the years. senator conrad. >> well, thank the chairman -- chairwoman very much. thank you for your extraordinary effort on this bill. you have been fully engaged,

fully committed and very effective. and all of us owe you a debt of gratitude. i don't think i've ever seen anybody dig in as completely as you did at a very difficult time with the special committee looming. you seized the reins of responsibility, and all of us are in your debt. i also want to thank our ranking member, senator roberts, who surprise to me, has actually done some pretty good work on this, as well. okay, it really has been good work. and i enjoy his sense of humor, as i hope he enjoys mine. look, this bill is a win for taxpayers, clearly. this is a win for reformers. this is a win for farm and ranch families all across the country.

this is a win for the economy of america. so this is important business. farm policy has many critics, and one of the things that's amazed me in my 26 years is how often ill informed some of the critics are. we hear all of the time that a farm bill benefits just a few wealthy farmers and ranchers. all of us who sit around this table and participate in the work of this committee knows that is not true. the vast majority of the funding in this bill goes for nutrition programs that are primarily directed to benefit children. and it goes into every corner of america. in fact, only 6% of farm bill spending, less than .2 of 1% of overall federal spending goes to farm programs. and i think somehow that gets lost in the national discussion. between natural disasters and unpredictable price fluctuation,

farming is a risky business. safety net programs are absolutely critical to producing the most abundant, safest, least expensive source of food in the world, and helping our producers compete in world markets where our major competitors are providing four times as much support to their producers as we provide to ours. our european friends are providing four times as much support to their producers as we're providing to ours. that is a critical fact that the people of the united states need to know. and, of course, it's not just the europeans that are competitors. we see brazil and others moving up fast. and we have got to give our farmers a fair, fighting chance. i believe the 2008 farm bill, which many of us around this table had a major role in, enhanced the farm safety net, and expanded conservation,

nutrition, bio energy production. it contributed to the strong economic performance of the american agriculture in an otherwise slow economy. and it was fully paid for, fully paid for. and i want to especially thank senator chambliss for the extraordinary leadership he provided in writing that farm bill. because it made a big difference across our country. as we build on those successes and contribute to deficit reduction, north dakota farmers tell me that direct payments really can no longer be defended. that farm programs need to be simplified, and that crop insurance should be strengthened and complimented with new programs that are easier to administer, and easier to comply with. in particular, while crop insurance works well in most circumstances, it has two gaps that i think we all recognize. first, it does not work well in a period of declining prices,

especially when they're rapidly declining. second, crop insurance does not protect against repeated years of shallow losses. and over an extended period of time, those shallow losses can mean very, very deep problems for our farm and ranch families. in response, we have pushed for a shallow loss revenue program that will fill these two gaps. while saving taxpayer dollars. i'm pleased the chairwoman has included some elements of those proposals in her bill by providing for a farm level revenue assistance program. in the past few days, i think we've been able to improve it and strengthen it. i very much appreciate the chair woman's commitment that we'll continue to work as we go to the floor and beyond to try to do even better. i'm also, just in conclusion, pleased that senator luger and i were able to offer an amendment that you have adopted, as i understand it, in the mark, to provide funding for the energy

title. that, too, is a win for our economy, a win for the environment, and a win for national security. our amendment which has a support from a strong majority of the committee will add a critical dimension. so in conclusion, madam chairwoman, i just want to, again, thank you for your really extraordinary leadership. it is so important to the country, to the congress, to this committee, we appreciate it. and i also want to thank my colleague, senator baucus, who has been a rock, helping stick up for our part of the country. i really deeply appreciate senator baucus, how you've provided leadership over and over on issues critical to our part of the