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Senate Finance Committee Adds Disaster Trust Fund to Farm Bill

The Senate Finance Committee has approved the creation of a $5 billion fund that would compensate farmers hit by weather-related losses over the next five...
October 10, 2007

The Senate Finance Committee has approved the creation of a $5 billion fund that would compensate farmers hit by weather-related losses over the next five years. The proposed Agricultural Disaster Trust Fund is part of a nearly $14 billion package of tax incentives for rural conservation programs, bioenergy development and young farmers, outside the existing farm subsidy program. To offset the costs of the disaster and conservation provisions, the committee approved measures clamping down on tax-avoidance techniques used by businesses.

The Agricultural Disaster Trust Fund, approved by the panel in a 15-3 vote, was promoted as a replacement for the USDA's ad hoc disaster assistance program, with proponents arguing it would encourage take-up of crop insurance. Financial assistance would be available under federal programs covering crops, livestock, tree farms, bees and farm-raised fish for losses that are below normal yield, but not large enough to trigger crop insurance payments.

Disaster Farm Fund Approved (Washington Post 10/5/07)

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