The farm bill passed by the U.S. Senate on Thursday includes some provisions that could help small family farms in Maine. Growth of these smaller scale operations has pushed the overall number of farms in the state to more than 8,000. One key part of the nearly $500 billion bill would allow diversified growers, and not just soybean and other commodity farmers, to get insurance for their crops. The question now is what parts of the Senate bill will make it through the U.S. House, and whether Congress can work out a compromise by the time the current farm law expires at the end of September.

The Senate farm bill may be most notable for what's not in there. Under the measure, a $5 billion "direct payment" farm subsidy program would come to an end.

Direct payment subsidies have been at the heart of U.S. agriculture policy for a generation. But the large deficits hanging over the country have politicians in both parties looking to save money and be seen as offering solutions to the problem.

This fiscal reality coincides with a philosophical debate over the future of U.S. agriculture. Russell Libby with the Maine Organic Farmers and Gardeners Association, explains.

"There's a big debate going on right now about whether the policy should support, essentially, the status quo--that is, large grain and commodity producers, or farmers around the country who are doing more direct marketing," he says--smaller family farmers, who would benefit from several policy changes in the Senate legislation.

Instead of direct subsidies, farmers would be protected by a nearly $10 billion, federally-subsidized crop insurance program.
In the past, such insurance has only been extended to commodity farmers who grow crops like corn and soybeans. The Senate would offer that coverage to farms with diversified crops.

An organic farming cost share program would provide funding to growers looking to transition from conventional methods. A pilot program in the bill would allow schools to use some of their federal money to buy locally produced food. And a second pilot would let farmers markets use smart phones to scan EBT cards so people on food stamps could get better access to local food.

Walt Whitcomb is Maine's agriculture commissioner and a dairy farmer by trade. He says the Senate bill would provide new price supports to help small scale dairy farmers throughout New England.

"The major export traders and some of the huge processing entities would prefer a very cheap, raw-product price. So, from a New England perspective, in trying to protect the regional farms, there has to be an alternative pricing system," Whitcomb says.

The new system would pay farmers less per unit if they increase milk production when prices are rapidly falling. It also allows dairy farmers to purchase insurance when milk prices drop too low.

The farm bill now moves on to the House of Representitives, where 1st District Congresswoman Chellie Pingree, a Democrat, sits on the Agriculture Committee. "The House will look at this quite a bit differently," she says.

Republicans, who control the House, reportedly want much larger spending cuts than the $23 billion of promised reductions in the Senate legislation. But Pingree says she's optimistic some compromises can be reached.

"I've been working with colleagues on both sides of the aisle, trying to keep some of the good legislation that's in there, in the bill," Pingree says. "It certainly has a ways to go, and not everything in this bill is perfect, but it's an important step in the transition from America only supporting big commodity farmers, to recognizing that there's a big growth in a consumer and farming movement that's going on in states like Maine and New England."

But even if the desire for compromise is there, the calender may pose an insurmountable challenge. The House will not begin work on the bill until mid-July, shortly before a five-week summer recess. When lawmakers return in September, they'll have just a few weeks to get something done before the current law expires Sept. 30.