February 4th, 2014
07:00 PM ET
Share this on:

The Senate passed a farm bill on Tuesday that ends direct subsidies for farmers and trims $90 a month from food stamps for 850,000.

The House had already passed the nearly $1 trillion farm bill that will set agriculture policy for the next five years. President Obama has said he would sign it into law.

The bill could be passed before the spring planting season. That's significant because farmers need to know early how it might affect prices and what to expect for their corn, wheat or tobacco yields.

The bill changes the current agricultural subsidy system that's been in place 80 years.

It ends direct payments to farmers for planting crops and replaces them with a beefed-up crop insurance program.

The government will make crop insurance cheaper and it will pay out some benefits at lower levels than it did previously. That will make farming less risky for some. The federal government could be more on the hook if crop prices plummet or if a disaster hits.

| Part of