Senate Ag Committee

Will 2026 Finally Be the Year for Immigration and Ag Labor Reform?

Wed, 14 Jan 2026 21:44:58 GMT

Talk to any farm group across the country, and they will tell you that the agricultural labor shortage is one of the most limiting factors in the industry right now next to low grain profitability.

The Time is Now
The debate over immigration and ag labor reform has been a political hot potato for decades, which has led to inaction by Congress. However, there are some indications from the leadership of the Senate and House Agriculture Committees that 2026 might be the year a long- or short-term fix could finally be passed.

The chairs and ranking members of both committees joined American Farm Bureau president Zippy Duvall at their annual convention in Anaheim, Calif., this week to talk about a variety of ag topics, but the focus quickly turned to ag labor. There was consensus among all four that solving this crisis was a priority for 2026.

Senate Ag Committee Leadership Making Ag Labor a Priority
Senate Ag Ranking Member Amy Klobuchar, D-Minn., says the H-2A program is not working and there is pressure to find a solution.

“And I just think the time has come to get this done,” she says. “Michael Bennett has a bill that I am a co-sponsor of that would fix the H-2A visa program and make sure that we have year-round visas, that we are doing something on wage certainty protecting the existing workforce.”

Klobuchar says she has worked on immigration and agricultural labor reform over the course of several administrations, only to hit a brick wall in the end. However, she believes the need has become too great in the U.S. among industries like agriculture to ignore. To get this across the finish line farm groups like the American Farm Bureau will need to appeal to lawmakers about how refusing to solve this crisis could put more farmers out of business.

“You’ve got to make that economic case about how we want to feed the world,” she says. “We want to have strong businesses, and to do that we need a smart immigration system that allows for workers.”

Why is 2026 Different?
One change that has improved the political climate is the Trump administration’s beefed up efforts to protect the U.S. southern border says Senate Agriculture Committee Chairman John Boozman, R-Ark.

“We said we could not do reform because the border was not secure, and it wasn’t secure; it was just the opposite of that,” he says. “We’ve worked hard; it is secure now, then through Visa programs you control the flow, but it’s time to do that.”

Boozman adds that another important change is the consensus in agriculture about the importance of reforming immigration and ag labor.

“Every farm group I talk to say this is a top priority,” he says. “We need massive reform, and the good news is on both sides of the aisle, I think, that we are getting that message because of your hard work lobbying.”

House Ag Committee Leadership Has Already Laid the Groundwork
House Agriculture Committee Chair G.T. Thompson, R-Pa., agrees it is time to break the grid lock on ag labor reform in place since the 1980s.

“Because if you don’t have a work force you have food insecurity; if you have food insecurity you have national insecurity,” he says.

In the 118^th Congress Thompson laid the groundwork for legislation by assembling a 16-member bipartisan task force on ag labor that included a cross section of farmers and processors. He says the result was a thoughtful action plan that provided 21 recommendations for reform.

“Fifteen of those were unanimous, and so we have taken those to legislative council,” he says. “We’d probably be a little further ahead if we didn’t have that goofy shutdown. We are looking forward here in this first quarter of this year of getting that introduced.”

House Agriculture Committee Ranking Member Angie Craig, D-Minn., says it’s a good first step but warns the challenge for immigration reform is the ongoing ICE actions carried out by Homeland Security. She had heard from dairy farmers in her home state about the chilling effect its having on the work force.

“Whether they were legal immigrants or not, they don’t want to come to work because they fear this environment right now,” she says.

Craig says at times the administration has given the impression that they do not want immigrant labor in the U.S., and so that needs to change to be able to build enough support in Congress to pass this legislation.

Will Congressional Inaction Force Farmers to Choose Between Health Insurance and Their Farm Budget?

Tue, 16 Dec 2025 15:16:09 GMT

Healthcare insurance plans for some U.S. farmers could double in 2026, as enhanced federal subsidies under the Affordable Care Act (ACA) are scheduled to expire.

The impending cost surge could affect thousands of U.S. farmers who currently rely on the ACA marketplace for their health insurance, according to the non-partisan KFF (formerly Kaiser Family Foundation), a health policy organization.

KFF estimated in 2023 that 27% of “farmers, ranchers, and other agriculture managers” relied on individual ACA market coverage. Nationally, more than 22 million Americans rely on the ACA marketplace for insurance options.

Farmers ‘Don’t Have Many Options’
Iowa farmer Aaron Lehman, who testified before Congress last week, highlighted the severity of the potential cost increase on his family. He said he expects to pay double to purchase an insurance plan for 2026 that would be comparable to what his family had this year.

“That is an incredible cost for our family budget and for our farm budget,” Lehman stated. The fifth-generation farmer and president of the Iowa Farmers Union described how rising healthcare costs are colliding with already harsh economic realities in agriculture.

“Farmers right now are trying to make all sorts of decisions because commodity prices are low, because of the chaotic trade situation that we’re in and higher input prices. All these things have made a real crisis for a lot of our farmers,” said Lehman.

“Finding ways to deal with that, we just don’t have too many options. Farmers will buy less equipment or not make the necessary upgrades and equipment that they need to,” he added. “They’ll look at their input suppliers, and they’ll decide, ‘what can we do to get through just this year … to get a plan to put the crop in the ground?’”

Read the testimony of Aaron Lehman here. A portion of his testimony and discussion is also featured on a posting to YouTube .

Signup Deadlines For Coverage
The challenge for farmers trying to decide on what insurance policy to purchase is compounded by the deadline to enroll in ACA marketplace plans: People needed to choose their ACA plan by Monday for coverage to begin Jan. 1. Open enrollment continues in most states until Jan. 15 for coverage beginning Feb. 1.

Despite broad public support for an extension to the ACA tax credits — a KFF poll said 74% of Americans favor continuing the enhanced credits — a congressional standoff has so far failed to produce a solution:

Failed Votes: Both a Democratic plan to extend the enhanced tax credits for three years and a Republican proposal to replace them with Health Savings Accounts (HSAs) failed to pass the Senate last week.
Impending Crisis: Nearly six in 10 enrollees (across all categories) told KFF they could not afford even a $300 annual increase in 2026 without significantly disrupting household finances.
Political Fallout: The issue of healthcare costs and expiring subsidies is highly polarizing, with some Republicans warning that a failure to address the problem could cost them legislative majorities in next year’s mid-term elections.

As the deadline for open enrollment closes and the Dec. 31 subsidy expiration date approaches, farmers must prepare for substantially higher health insurance costs in 2026 unless Congress acts to reach a last-minute agreement.

Young Farmers Need Better Options
During his testimony and ensuing discussion, Lehman stressed that healthcare isn’t just a personal household issue; it’s central to the future of American farming. With the average age of an Iowa farmer at 57, he said the sector desperately needs young and beginning farmers to return to the land. But without affordable, reliable health coverage, inviting the next generation back onto the farm becomes a far riskier proposition.

“You have to be very smart to figure out the plan that can bring the next generation on the farm,” he said, adding that many talented, innovative young people want to farm, but face daunting financial barriers — healthcare high among them. He noted that one of his sons works with him on their family operation, which is based in Polk County, Iowa.

Lehman framed affordable healthcare for farm families as an investment, not a handout: a way to make it possible for young farmers to feed their communities, support local and regional food systems, or continue larger family commodity operations.

“Extending the federal support for lowering the cost of health insurance is a true win for farmers and for all of rural America,” he said.

Another Temporary Fix: Stopgap Bill Includes Farm Bill Extension — Is This the New Normal for Ag Policy?

Wed, 12 Nov 2025 11:01:18 GMT

A new stopgap spending bill to reopen the government also extends key Farm Bill programs for one year—covering the provisions left out of July’s budget package. While the Senate waits on the House to vote, it brings up what some economists think may be a new reality: the days of passing a comprehensive Farm Bill may be over, and a piecemeal approach could be the new norm in Washington.

It’s been about 6 years and 11 months since Congress passed a new, comprehensive (5-year) farm bill. This week, the continuing resolution (CR), which funds the federal government through January 30, includes an extension of the current farm bill, again. This prevents outdated “permanent law” provisions from taking effect. Without action, those Depression-era statutes could have triggered mandatory price supports for certain commodities, disrupting markets.

The bill also includes an extension of the U.S. Grain Standards Act, ensuring official grain inspection and weighing services continue without interruption.

Senate Votes 60–40 to Advance the Measure

The Senate advanced the package in a 60–40 vote Sunday night, providing farmers relief from uncertainty over whether core safety-net programs might lapse.

An earlier package dubbed the “One Big Beautiful Bill” increased funding for commodity programs, crop insurance, and export promotion, but it left out several smaller and conservation-related initiatives—including the Conservation Reserve Program (CRP). The new CR temporarily fills that gap while Congress works toward a full Farm Bill reauthorization.

Boozman: “Critical USDA Services Resume”

Sen. John Boozman (R-AR), chairman of the Senate Committee on Agriculture, Nutrition, and Forestry, praised the bill’s passage, emphasizing its importance for both producers and rural communities.

“Ending the government shutdown ensures critical USDA services resume so vulnerable families no longer experience disruptions to nutrition benefits, farmers can access the programs and personnel they rely on to keep their operations running efficiently and disaster assistance is delivered,” Boozman said in a statement.“We advanced long-overdue farm bill policy improvements in the One Big Beautiful Bill, including enhanced risk management tools farmers have been calling for, and we’re continuing work to reauthorize other key initiatives. Extending the farm bill and the U.S. Grain Standards Act gives us more time to finalize these programs essential to farmers, ranchers and rural America.”

Is This the New Norm?

The extension buys lawmakers additional time to complete a comprehensive Farm Bill reauthorization, expected to be one of the top legislative priorities in early 2026.

But the loss of urgency to pass a new, comprehensive five-year farm bill may be due to the fact Congress included key enhancements to the Farm Safety Net in the One Big Beautiful Bill earlier this year. The Farm Journal Ag Economists’ Monthly Monitor asked economists in July if that makes it more difficult or easier to pass a Farm Bill this year. 70% said yes. And in September, the Monthly Monitor asked when Congress will pass a new farm bill. Nearly 40% (39%) said a piecemeal approach for passing the farm bill is the new norm.

According to the Congressional Research Service, Sections 10101 and 10108 (Title I, Agriculture) would increase federal outlays by about $52.3 billion + $1.6 billion over 10 years.

The American Farm Bureau Federation says the bill directs about $65.6 billion in new agricultural investment over 10 years: ~$59 billion for core farm safety-net enhancements, ~$6.6 billion for other ag priorities.

Key Farm Bill-style Provisions in the OBBB

Here’s a breakdown of major provisions in the One Big Beautiful Bill Act that impact legislation within the Farm Bill:

1. Extension & enhancement of commodity support / safety-net programs

The bill extends core programs originally in the Agriculture Improvement Act of 2018 (2018 Farm Bill) through crop year 2031.
Reference prices under the Price Loss Coverage (PLC) program are raised.
The Agriculture Risk Coverage (ARC) program’s revenue guarantee is increased (for example, from 86% to 90%) and maximum payment rates increased.
Marketing Assistance Loan rates are increased.
The bill provides a one-time opportunity for eligible producers to update base acres (“new base acre holdings”).

2. Crop insurance and disaster assistance

Premium subsidies for crop insurance increase; the bill boosts coverage levels for the Supplemental Coverage Option (SCO) and Whole Farm Revenue Protection (WFRP) policies.
Disaster assistance programs are expanded: loss types eligible are broadened, thresholds for payment triggers are lowered, and coverage levels increased.

3. Dairy, sugar, and specialty commodities

For dairy: The bill increases the amount of milk production a producer can enroll in the Dairy Margin Coverage (DMC) program. Also, it requires dairy product manufacturers to report cost/yield data so that “make allowances” under the federal milk marketing order system can be updated.
For sugar: Under the sugar support program, priority is given to sugar-beet processors if marketing allotments are raised; the bill also mandates reallocation of tariff-rate quota shortfalls by March 1 and requires USDA to report on refined sugar imports.

4. Agricultural research, animals, trust funds, and miscellaneous programs

Section 10108 of the bill funds: the National Animal Health Laboratory Network, National Animal Disease Preparedness Response Program, and the National Animal Vaccine and Veterinary Countermeasures Bank.
Extends funding for trust funds supporting pima cotton, wool, certain textile, and citrus industries.
Miscellaneous investments in horticulture, energy (for agriculture), trade promotion, and rural infrastructure also included.

While nothing is easy in Washington, it seems addressing portions of farm bill funding within other legislation is the path of least resistance. Which could change the way farm bills are shaped - and passed through Congress- in the years ahead.

Opposition to the Farm Bill Extension

While most farm groups applaud the one-year extension of the 2018 Farm Bill, the Institute for Agriculture and Trade Policy (IATP) says it comes with potential issues for small and medium size farmers.

“The Senate’s deal to reopen the government has a number of problems that will hurt farmers and rural communities. The Senate attaches a 12-month Farm Bill extension to the deal, setting up the possibility for more chaos just a year from now,” says Michael Happ, Program Associate for Climate and Rural Communities. “Even worse, it is not a clean extension. The text proposes eliminating payment limitations for Farm Bill conservation programs such as the Environmental Quality Incentives Program (EQIP). In most years, well over half of applicants to EQIP are turned away due to a lack of funds — and without payment limits, the USDA will likely issue fewer, larger EQIP contracts. By getting rid of the payment limit, the Senate opens the door for more of EQIP’s finite resources to be diverted to the largest operations while more small and midscale farms are closed out.”

IATP is urging the Senate needs to keep payment limits in place and go back to the negotiating table.

Passage of bipartisan farm labor bill would be a 'Christmas miracle'

Fri, 16 Dec 2022 19:06:22 GMT

On Dec. 15, Sen. Michael Bennet, D-Colo., with support from Sen. Michael Crapo, R-Idaho, presented a rarity to the Senate — a bipartisan farm labor bill.

The challenge now is to negotiate a Senate version of the Affordable and Secure Food Act that can go to a floor vote in the final days of 2022 — no small feat. Bennet said negotiating a farm labor bill in the lame duck session of Congress would be “a Christmas miracle,” but Dave Puglia, president and CEO of Western Growers, is holding out hope.

“Stranger things have happened in Congress,” Puglia told The Packer.

According to Puglia, passing the bill would be “a lift for both parties.” At least 10 Republicans would have to step forward for the bill to pass, but every sector that has a labor need is in strong support, he said. The bill passed in the House with votes from 30 Republicans and all but one Democrat.

“We have an obligation to push and fight until the final bell,” Puglia said.

The promise of reform

While long-term farm labor problems persist, additional challenges in recent years — such as inflation and supply chain issues — have exacerbated financial strains on farmers and ranchers and raised the temperature on existing labor issues.

“Businesses need certainty, and these wage reforms will provide that. My members are trying to survive; they’re not in this to lose money and can’t afford to bleed out every year,” Puglia said. “This bill would put guardrails on labor costs. Wages will be capped as to how much they can go up each year.”

The Affordable and Secure Food Act not only offers farm labor wage stabilization, but it also charts a path for legalization for the millions of undocumented workers who currently work in agriculture in the U.S. and streamlines the H2-A visa program. If enacted, the bill would address the precarious status of undocumented farm laborers currently working in the U.S.

“In the produce industry in the West, half of our workforce is not here legally. They are here working, productively paying taxes and keeping this industry running. For them, they live with the fear of not living in the shadows and of deportation,” said Puglia.

The Affordable and Secure Food Act proposes a new status of certified agriculture worker. This CAW status would offer a “degree of certainty for the agricultural workforce that they deserve,” according to Puglia.

“I have members of Western Growers that have moved to H2-A because they cannot find domestic workers,” he added. “This is a simple notion. We don’t have Americans knocking the door down wanting to harvest celery or lettuce.”

Decades advocating for change

“Western Growers has an awful lot of history and footprints in the sand that trace back on this bill,” Puglia told The Packer.

Former Western Growers president Tom Nassif, along with former United Farmworkers president Arturo Rodriguez, were key in bringing foundational farm labor reforms to Congress over a decade ago, said Puglia. The current bill has roots in Nassif and Rodriguez’s work over many years.

“Finally, Congress is addressing an issue we’ve been shouting from the rooftops for 15 years,” he said.

Harnessing industry support

What’s more, Puglia believes that with such a large and diverse produce industry, strong advocacy throughout could increase the likelihood of success.

“Friends in the dairy industry have helped broaden the political appeal to more Republican senators,” Puglia said. “We could have a louder call for this reform to be passed if it came from all sectors of the produce and food industry.”

Related news: Pandemic can’t slow the growth of the H-2A program, USDA report says

In the fresh produce industry, several organizations have joined in support of the bill. The U.S. Apple Association was one organization that joined advocates on Capitol Hill.

“Apple growers from coast to coast are hanging on by a thread as labor as input costs spiral out of control,” Jim Bair, U.S. Apple Association president and CEO, said in a news release. “The reforms included in the Affordable and Secure Food Act would provide much needed stability and certainty for the agriculture workforce and predictability to the H-2A program. In short, it is good for both growers and workers. We thank Senator Bennet for bringing this proposal forward and urge the Senate to act swiftly.”

Ian LeMay, president of California Fresh Fruit Association, also offered his support, thanking Bennet for introducing the bill.

“The agricultural industry in California and across the country prides itself on being able to provide a safe and secure food supply to the nation and the world. However, this can only be accomplished with a dependable workforce. There is no doubt that agriculture has waited many years for immigration reform, and we are optimistic that this bill will finally accomplish this goal,” said LeMay in the release.

The time is right to lean in and push for the bill’s passage now, said Puglia at Western Growers. If the Affordable and Secure Food Act doesn’t pass in the last weeks of 2022, it could be an uphill battle to address this issue with the new Congress.

“I’m concerned with restarting this issue with a Republican House in 2023 with the current border crisis,” said Puglia. “Lack of labor and border security both deserve Congress’ attention, but prospects in both houses are difficult next year.”

Affordable and Secure Food Act Highlights

Certified agricultural workers and path to citizenship

Undocumented agricultural workers could apply for certified agricultural worker status to work legally in the U.S.
CAW candidates would not be at risk of deportation while applications are in review. Additionally, employers would not be penalized for having hired these workers.
If approved, CAW certification would give workers 5½ years of legal residency for themselves and dependents, with the potential for extension.
CAW workers who meet additional residency and work history requirements would be eligible to apply for permanent legal U.S. residency and citizenship.

Streamline and enhance H2-A

Those who don’t qualify for CAW status would receive access to year-round H-2A visas.
Workers would not have to return to their home country to apply for an H-2A visa.
The H-2A process is streamlined for employers.
Housing for farmworkers and transportation in and out of fields is addressed.
H2-A workers would be free to leave one employer for another.
Additional H2-A worker protections include guaranteed minimum hours as well as health and safety plans to avoid serious on-the-job injuries and heat illness.

Additional features

Wage standards set for agricultural workers across the board.
Establishes wage increase limits, capping year over year increases at 3% to 4%, a long-term tool to stabilize labor costs.
E-verify will be mandatory for all agricultural workers.

Senate Confirms Alexis Taylor as USDA Trade Under Secretary

Fri, 03 Feb 2023 01:49:11 GMT

The Senate on Wednesday confirmed Alexis Taylor for the role of Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs.

Background

An Iowa farm native, Taylor went on to serve in the U.S. Army Reserves before taking office as Oregon’s Department of Ag director since 2016. She also served on the 2020-2021 NASDA Board of Directors to sharpening states’ impact on federal ag policy.

In a Sept. hearing with the Senate Ag Committee, Taylor outlined her past positions and laid-out her main priorities, if confirmed for the role:

1. Food insecurity

2. Strengthen export markets

3. Expand market opportunities

What They’re Saying

Following the appointment of her as trade under secretary, Senate Ag Committee emphasized the “invaluable” role Taylor will play for USDA, farmers and rural communities in a press release.

“I am confident she will work to increase export market access for our farmers and ranchers while working to ensure our international partners abide by the spirit of our existing trade agreements,” said Ranking Member John Boozman (R-Ark.).

Chairwoman Debbie Stabenow (D-Mich.) echoed Boozman, saying Taylor is a “dedicated” public servant.

“Throughout this process, she has proven that she understands trade and agriculture and will be an invaluable asset to USDA as they help farmers and rural communities recover from the pandemic,” she said.

Ted McKinney, NASDA CEO, penned a letter in support of Taylor’s nomination prior to her taking the role. In the letter, McKinney underscored Taylors work in expanding market opportunities not only for Oregonians but for farmers and ranchers across the country.

“Alexis’ work as Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs is needed now more than ever as increasing trade is an important element to alleviating supply chain challenges and curbing inflation. We know her efforts are sure to have a meaningful impact on consumers and families nationwide,” said NASDA CEO Ted McKinney.

Two More Confirmations to Come

The nominations of Jose Emilio to be USDA undersecretary for food safety and Doug McKalip to be the chief agricultural negotiator at the Office of the U.S. Trade Representative are still pending as holds remain on their nominations.

Signals surfaced they are likely to be lifted and cleared by the Senate before the end of the year.

More on policy :

USMCA as a Framework: New Talks Between U.S., Ecuador, Uruguay
Ag Commodities Transformed into New Bioproducts

Research in Ag-Tech Top-Of-Mind in Farm Bill Hearing

Mon, 12 Dec 2022 20:03:24 GMT

The Senate Ag Committee met on Tuesday to hear testimony surrounding the need for ag research funding in the coming farm bill. According to Katy Rainey, associate professor at Purdue University who gave testimony, the hearing showed “signs of hope” for ag research.

Representing the American Seed Trade Association , Rainey underscored farm bill ag research and technology funding needs:
• Public-private partnerships
• Better program support in the National Plant Germplasm System (NPGS)
• Regulatory space that allows technology to come to market.

“There is a misconception that the private sector has the basic and applied research needs for row crops,” Rainey said in her testimony. “We rely on the support of farm bill funding and programs to ensure continued U.S. leadership as the provider of the best seed to the world.”

Outside of sharing her own message, Rainey heard four other testimonials as well as questions from senators. While the on-air discussion proved informative, Rainey says she was most intrigued by the conversations happening off-air.

“Senators are concerned with farmers’ bottom line, but they’re also concerned about global events,” Rainey says. “My takeaway from the senators is that there’s actually a hopeful outlook for global food security because there is so much technology. If we can support the research to get that technology to the field or to the plate that could dispel concerns across the board.”

Rainey is confident research funding will come through in the farm bill to deliver that technology.

View Across the Table

Sen. Joni Ernst (R-IA) was also in attendance of the hearing. In Ernst’s view, there are two highlights from the hearing that deserve a spotlight on Capitol Hill.

1. Cybersecurity in Ag

“We know that our adversaries are targeting our farmers [through cyberattacks] and that does affect our nation’s food chain,” said Ernst in the hearing. “What we want to see is additional work in university ag systems through research, education and outreach activities.”

Chavonda Jacobs-Young, undersecretary for research, education and economics at USDA, said the agency is working to deliver on that additional work.

“We first need to raise the awareness for needs in cybersecurity,” she says. “We also need to train — and retain — the generation of professionals who can help us in this space. That involves high-performance computing, AI and cybersecurity.”

Jacobs-Young and Ernst plan to meet and establish a partnership, along with other groups recommended by Jacobs-Young, to make a gameplan for cyber-awareness in rural America.

2. Carbon Credit Opportunities

In the research corridor, Ernst feels there are carbon questions that still need answers.

“I hear about this all the time from Iowa farmers — they want to participate in carbon markets and create healthy soils,” Ernst says. “Getting the right type of information and translating that so producers can measure carbon on their farms and in their production activities is the bigger issue.”

Ernst and Young both agree the outreach chord needs to be reconnected to rural America, but Jacobs-Young isn’t sure what tactic will flip the ignition switch.

“It’s critically important to talk to producers about what they need and how that can be delivered in a way that they will be receptive to,” said Young in the hearing. “Adoption is part of the issue we have. We can develop wonderful technologies, innovations and tools, but we struggle with producers being receptive.”

For her part, Ernst says she’ll work to allocate farm bill funding toward such programs and communicate with Young on ways to relay the program messages to farmers.

Producers with carbon questions can also seek answers in Farm Journal’s Carbon Innovation Center .

More on farm bill 2023:

Rep. G.T. Thompson Lists His 3 Farm Bill Objectives
Opinion: The Value of Partnerships Between the Agriculture and Energy Industries

Commodity Programs Might See a 12% Cut in the Proposed $1 Trillion Farm Bill

Fri, 17 Feb 2023 19:59:17 GMT

The Congressional Budget Office unveiled its 10-year cost estimates (2024 to 2033) for existing farm bill programs on Wednesday, with a projected $1.5 trillion price tag, up from $867 billion in the 2018 farm bill.

Jim Wiesemeyer, Pro Farmer policy analyst, advises not to put too much weight in these estimates, as they are the reason the farm bill is out of date so soon after it is written.

“CBO’s farm bill forecasts are frequently well off the mark in either direction,” he says. “It’s a lot like USDA’s farm income projections in February for the year head. CBO looks out 10 years … good luck taking these forecasts too seriously.”

So, will this amount of money keep the programs ahead of their time? Some aren’t convinced. And it starts with the farm bill’s largest funded program—Supplemental Nutrition Assistance Program (SNAP).

SNAP Spending

Based on the 10-year period, SNAP spending is nearly 82% larger than what it was granted in the 2018 Farm Bill at $663 billion.

(Farm Journal)

A large portion of the increase is due to the administration’s re-evaluation of SNAP’s the Thrifty Food Plan (TFP), which resulted in a quarter-trillion-dollar increase in SNAP benefits from July 2021 to the May 2022 baseline.

In the most recent baseline, CBO increased its estimate of outlays for SNAP by $93 billion over the 2023–2032 period for “technical” reasons.

According to Sen. Boozman (R-AR), these reasons are rooted in “unacceptable” $250 billion spending by the USDA on TFP—which was supposed to have cost nothing—in the previous farm bill. Boozman made his sentiments known at a Senate Ag Committee farm bill hearing on nutrition on Thursday.

“Congress had no intention of your team spending that, and if you understood that was going to happen, you should have alerted Congress,” Boozman said to Cindy Long, USDA administrator. “How can we trust you going forward to give us advice? Spending a quarter of a trillion dollars from this committee is totally unacceptable.”

Related articles: How Long Does it Take to Write a Farm Bill?

While Boozman is adamant other program will suffer funding losses due to the “unsustainable” TFP increases in the coming bill, Senate Ag Committee Chairwoman Debbie Stabenow (D-Mich.) says that’s not the case.

“Whether commodity or SNAP programs go up or down, these monies aren’t traded. So, cutting SNAP won’t add money to the commodity title,” Stabenow says.

The 2018 bill enacted policy for a “thorough” farm bill update that hadn’t been done since 1975, according to Stabenow. She says the TFP increases fall under that update umbrella.

“The Trump administration chose not to use that [update and funding] because that was 2018—they chose not to proceed,” Stabenow rebutted. “The Biden administration came in and chose to proceed with those funds, and I’m glad they did.”

The General Accountability Office (GAO) has since determined USDA failed to submit the TFP food basket increase to Congress as a rule as required by the Congressional Review Act.

Row Crop Safety Net

Disaster programs such as the Market Facilitation Program (MFP), Coronavirus Food Assistance Program (CFAP), Wildfire and Hurricane Indemnity Program Plus (WHIP+) and Emergency Relief Program (ERP) saw billions of dollars moved from taxpayers to producers in the past 10 years, with USDA reporting the largest spike in 2020 at $45 billion.

According to estimates from the House Ag Committee, CBO’s 2023 baselines compared to the 2018 farm bill will cause changes over the five-year period in:
• Commodity programs—12% decrease
• Conservation—19% increase
• Nutrition—82% increase
• Crop insurance—26% increase

However, CBO’s latest baseline provides no built-in ad hoc for these programs.

“If Congress doesn’t provide more funding/investments for Title 1, it puts pressure on farm-state lawmakers to continue the billions in ad hoc aid,” Wiesemeyer says. “Some analysts say reforming Title I would mean spending far less than continuing ad hoc assistance. If Title I is not made more effective, farmers will keep wondering if Congress will fund more emergency aid.”

Related articles: The Cost of a Farm Bill: 2023 Row Crop Priorities

GAO released a report stating that those wanting to change crop insurance program features will try to use to their advantage.

Here are the changes GAO says Congress could make to mitigate the programs costs:

• Reduce subsidies to high-income participants by creating an income limit.
• Adjust compensation to insurance companies to better align with market rates.

Livestock Safety Net

Dairy and livestock did, however, receive a safety net mention in CBO’s baselines.

Under the Dairy Margin Coverage (DMC) program, CBO forecasts FY 2023 payments will total $194 million in FY 2023, with those increasing to $248 million in FY 2024 and $266 million in FY 2025. For the rest of the period—through FY 2033—they are forecast between $196 million and $265 million, for a total of $2.531 billion.

Livestock disaster payments are expected at $621 million in FY 2023 and forecast between $562 million to $591 million over FY 2024 to FY 2033, for a total of $6.333 billion.

New Legislation Would Require USDA to Study Fertilizer Industry

Fri, 15 Dec 2023 22:06:12 GMT

New legislation, called the Fertilizer Research Act , has been introduced to require USDA to study competition and trends in the fertilizer market.

The bill was introduced by Senators Chuck Grassley (R-IA), Joni Ernst (R-IA) and Tammy Baldwin (D-Wisc.). Grassley shared with Ag Day’s Michelle Rook it is a result of the fertilizer industry being too concentrated into too few hands.

“This whole bill is to get the Secretary of Agriculture looking into all this. So, if there is collusion, if there’s antitrust, he can suggest action to the FTC and to the Justice Department to take action through a lawsuit,” he says.

Within one year of the bill’s passage, the Secretary of Agriculture, in consultation with the Economic Research Service, would be required to issue a report on USDA’s website regarding the U.S. fertilizer industry.

Specifically, the report should include:
• A description of impacts on the fertilizer market that influence price
• Market trends in the past 25 years
• A description of the imported fertilizer and market impacts
• Impacts of anti-dumping and countervailing duties
• A study of fertilizer industry concentration
• A study of emerging fertilizer technologies
• A description of whether current public price reporting is sufficient for market transparency

“Farmers’ bottom lines thin as the price of fertilizer rises. With fertilizer being one of the ag industry’s highest input costs, it’s problematic farmers have such a limited window into market fluctuations. Our bill will provide farmers in Iowa and across the Heartland with needed transparency and certainty as they navigate production costs,” Grassley said in a release about the legislation.

At the same time, Josh Linville, vice president of fertilizer at StoneX, says while he appreciates the Congressional attention to fertilizer prices, the market has somewhat corrected the problem with values down sharply from the record highs 18 months ago.

“Overall, a lot of the high price situation we’ve been dealing with have largely been solved and if you look at things like urea, I thinks its urea, UAN and potash are all down 60% from where they were at the high. I think phosphates closer to 40,” Linville says. “So there’s been a lot of the price depreciate since of highs. Obviously, we’d all like to see a cheaper but it’s a good ratio today compared to where corn values are.”

Linville also believes the high prices were less about anti-competitive practices and more about global supply and demand fundamentals.

“It’s Chinese government export restrictions, its European natural gas markets being sky high to where they normally are and production issues around the world. We thought we’d lost exports from Russia when they invaded Ukraine,” he says. “So, a lot of the factors that have driven volatility have had much more to do with the international market than has been domestic.”

Linville adds he agrees with the bill’s aim to improve price transparency in the industry.

Sen. Grassley shared he aims to have this legislation included in the next Farm Bill but is open to other avenues for passage.

To view the legislation in full, click here .

USApple says future of industry may depend on Farm Workforce Modernization Act

Fri, 16 Sep 2022 19:38:07 GMT

Labor reform has long been a priorty for the U.S. Apple Association, says the organization, whose President and CEO Jim Bair spoke at a Sept. 15 press conference on Capitol Hill urging Senate action on the Farm Workforce Modernization Act. He joined Rep. Dan Newhouse and Rep. Mike Simpson, as well as other agriculture industry leaders as part of the American Business Immigration Coalition.

“Agriculture labor reform has been our top legislative priority for more than a decade. It’s the issue that keeps apple growers awake at night, whether they employ 500 workers or five,” said Bair in a statement. “An entire year of care and input costs can be lost when it’s time to harvest and workers arrive late or not at all.”

Like others in the ag industry, apple growers have increasingly turned to the H-2A guest worker program. While Bair estimates that apples may be the largest single commodity user of the program, he also says that workers are often delayed entrance to the program, due to “administrative red tape and the costs associated with the program,” which have outpaced inflation for decades.

“The reforms in the House-passed Farm Workforce Modernization Act would bring the needed stability and predictability to the agriculture labor market as a whole and specifically to the H-2A program,” Bair said.

He argues that if the H-2A wage rate was locked in for a time, growers could plan ahead knowing what their labor costs are for the year.

“Congressman Newhouse, who spoke earlier, represents the largest apple district in the country, and we are so grateful that he has put his shoulder to the wheel to work toward getting this important legislation across the finish line, not once, but twice,” said Bair. “Rep. Simpson, who is also here, has been a great leader, as well as those who on a bipartisan basis supported this effort.

Attention must now turn to the Senate, said Bair, who thanked Sen. Mike Bennett and Sen. Mike Crapo for their willingness to take the issue on. USApples also asked the Senate leadership to “put politics aside for the sake of food security and the economic viability” of rural communities.

“The past few years have created a perfect storm as growers’ input costs such as fuel, fertilizer and freight have risen as much as 300%, while lost export markets have left apples to overhang the market and make the strain even greater,” Bair said. “Apple growers are making tough decisions to determine if they can hang to continue producing America’s favorite fruit for another year, or if what has been a livelihood for three, four or more generations stops with them.”

CBO Report Shows True Cost of Biden Administration's Build Back Better Plan Closer to $5T

Mon, 13 Dec 2021 15:08:40 GMT

Both the House and Senate are in session this week, but it may be the Senate who ends up playing the “Jingle Bell Block” come Christmas relative to the Build Back Better (BBB) proposal.

Senate leadership’s timeline for the BBB proposal is just before Christmas, according to Majority Leader Chuck Schumer (D-N.Y.). But as most should know by now, the “official” timekeeper is centrist Sen. Joe Manchin (D-W.Va.), who keeps calling for a “strategic pause” for the vote, delaying it into 2022. Odds are now rising for that possibility.

President Joe Biden early this week will meet with Manchin at the White House. White House press secretary Jen Psaki said Biden would tell Manchin that “what we need to do now is think about what we’re going to do about rising costs, and what is our plan to address rising costs.” Manchin has already commented on the impact of rising inflation and potential impacts of the BBB proposals: “I don’t know how you control inflation when the first year of spending is going to be quite large,” Manchin said regarding the BBB bill. “And that’s an awful lot more of federal dollars going into a time when we have uncertainty and inflation now.” Manchin and Sen. Kyrsten Sinema (D-Ariz.), two key Democratic votes for the BBB, met privately last Thursday with Schumer.

Senate leaders have not yet even issued a final bill, as negotiations continue.

The Congressional Budget Office (CBO) produced another new BBB dataset for public consumption. Sens. Lindsey Graham (R-S.C.) and John Cornyn (R-Texas) asked CBO director Phillip Swagel to add up the cost of the bill that recently passed the House if all of its programs were made permanent. CBO’s new report provides what many label a less misleading account of how much BBB would cost. The BBB programs, extended through the 10-year window instead of having their costs hidden with arbitrary expiration dates, would cost nearly $3 trillion more than advertised for a total price tag of nearly $5 trillion — that’s roughly three times the figure most of the media have been sharing. The previous scoring from the CBO only accounted for the legislation as it was written, sunsets included, and found it would increase federal deficits by $367 billion over the next 10 years. As the table below shows, some of the programs would be costly — even by congressional standards. For example, take the child allowance, which Democrats say will cost only $185 billion because it ends after one year. No one believes they won’t extend it next year, and later years. CBO says the real cost over 10 years is $1.597 trillion. Democrats also peg their earned-income tax credit expansion at a cost of $13 billion because it too ends after one year. CBO says the real cost is $135 billion over 10 years. Democrats phase out the child-care and pre-K entitlements after 2027 with a total cost of $381 billion. CBO says the real cost over 10 years is $752 billion if made permanent. They also underestimate the cost of expanded healthcare subsidies at $74 billion by phasing them out in 2025 or 2026. CBO says the real cost is $220 billion. Of note the Democrats’ restoration of the state and local tax (SALT) deduction to $80,000 up from $10,000. Democrats say this will raise $15 billion over 10 years because the current $10,000 limit is set to expire after 2025. CBO says the real cost of this Democratic tax deduction for the rich without that budget end around would be $245 billion.

(Farm Journal)

Democratic leaders like Speaker Nancy Pelosi (D-Calif.) countered that Biden’s agenda would reduce costs for middle-class families on some of their biggest priorities. “November’s inflation numbers only add urgency to passing the Build Back Better Act to lower the costs that weigh heaviest on working families’ budgets,” she said.

CBO also last week issued a cost estimate for the Agriculture Committee’s section of BBB. The panel added more than $2 billion in funding for conservation technical assistance to the House-passed bill because of ample evidence conservation spending would be stymied without more technical funding to deliver the huge spending proposed. Additional research spending was also added. CBO noted the ag provisions would authorize $94.4 billion in spending but estimates that only $89.4 billion of that would be spent over the 10-year window allowed by the legislation (showing how the “true” costs of the package are a lot higher than stated levels).

Farm Bill Will Not See an Increase in Funds

Wed, 07 Jun 2023 20:00:50 GMT

Senate Ag Chair Debbie Stabenow, (D-Mich.) said in a Senate Ag Committee hearing that there will be no new funding for the new farm bill. This means any increase in funding for programs will require reallocating money from other parts of the bill.

Related story: 3 Reasons the Farm Bill is Behind Schedule

She expressed her disappointment at new savings from the debt ceiling bill not being allocated to the farm bill. Despite asking the House and Senate Budget Committee for even a few billion dollars, their requests were unmet.

Stabenow specifically warned the audience at the Nutrition Incentive Hub’s National Convening Tuesday that they should not expect additional funding for the Gus Schumacher Nutrition Incentive Program, which aims to provide fresh produce to low-income individuals. She emphasized that a win in this scenario may look like preserving the current funding to maintain the program before moving forward.

Related story: Conservation and CRP Rates Discussed in Latest House Panel Hearing

Stabenow stressed she will not allow conservation funding from the Inflation Reduction Act to be redirected, highlighting the importance of addressing the climate crisis and mitigating risks faced by farmers.

Farm Bill 2023 Draft is Expected by Mid-September

Thu, 20 Jul 2023 17:40:37 GMT

The 2023 farm bill is expected to be drafted for a markup in mid-September. It might be considered by the House before some provisions of the current farm law expire on September 30, though demands for floor time are substantial, and the deadline is tight.

The bill will not likely include further work requirements for the Supplemental Nutrition Assistance Program (SNAP) beyond those stated in the recently approved debt ceiling bill. House Ag Committee Chairman, G.T. Thompson (R-Pa.) envisions SNAP as a workforce development program and prefers using incentives to shape participants’ shopping habits.

Despite the farm bill’s challenges, Thompson aims to achieve as many approving votes as possible from both parties. Further, he’s ensuring new representatives are familiar with the bill’s complexities before the vote, to avoid misunderstandings and flare-ups on the House floor.

Thompson, along with other members, is also seeking additional funding sources for the bill, but that will likely be the biggest farm bill hurdle that may trip up lawmakers.

Prepare for big changes in the farm bill

The committee says they plan a mid-September markup of a draft farm bill once the text is ready after August recess. The top four members of the House and Senate Ag committees urged CBO to ramp up staffing to address a backlog of scores for proposed changes to programs the upcoming farm bill, according to a letter .

The letter , addressed to the leaders of the congressional Budget committees and CBO director Phillip Swagel, said the Ag committees have “become increasingly concerned at the volume of outstanding requests” for scores related to the farm bill.

Lawmakers said they “expect several hundred more preliminary scores will be needed before each chamber, and eventually, the Congress, has a farm bill completed for final scoring.”

To address the concerns, the members said CBO and the Budget committees should “use all available resources and authorities to ensure CBO can reorganize staff to prioritize farm bill requests, hire or contract additional staff, or find available qualified professionals who can be assigned on detail.” They added that new hires or detailees should have experience in scoring farm bill-related programs.

Thompson also said that the timeline could be met in getting the bill done by the end of September if the Senate would follow the House schedule.

“There would be no need for an extension if the Senate would get their [farm bill version] done in the same timeframe I’m talking about,” he observed.

Farm bill bottom line

Thompson acknowledged on Tuesday that Congress would likely need to extend the existing farm bill due to delays caused by unrelated legislation. This marks his first explicit admittance that legislators will miss the imminent deadline, as some of the authorizations from the 2018 Farm Bill are set to expire by the end of September.

As his previous comments signaled, Thompson’s prediction seems to stem from assessing the Senate’s progress, being further behind in drafting its version of the farm bill than the House.

Senator Stabenow “Holds The Keys” to the Farm Bill Getting Done in 2024

According to Washington-based sources, Senate Ag Chairwoman Debbie Stabenow (D-Mich.) holds the key as to whether a farm bill can be completed this calendar year.

The unknown is whether Stabenow can work out a deal with the other farm bill players–Senate Ag ranking member John Boozman, House Ag Chair G.T. Thompson (R-Pa.) and House Ag ranking member David Scott (D-Ga.). Some say that could be at least possible after elections.

Results of the Nov. 5 elections, whenever they come, will likely help determine the odds of a farm bill yet this year.

Some say Stabenow would like another farm bill completion for her legacy items as she is not running for re-election. Others say she already has billions of dollars in additional conservation funding via the Inflation Reduction Act (IRA/Climate Act) and adequate food and nutrition funding without a new farm bill, especially relative to the Thrifty Food Plan.

The Broader Picture

While seen as a win-win for Democrats and Republicans, in the final farm bill Democrats must be content on funding and policy issues relative to food and nutrition and conservation, and Republicans must be satisfied relative to getting most if not all of the increase in reference prices contained in the House Ag Committee-passed measure.

Some long-time Washington contacts still give the odds of a farm bill this year at only 15%.

This group thinks a new farm bill will be part of an already busy agenda for a new Congress and new White House in 2025. This is the reason why some optimists think once the anchor of the elections is out of the way, the four major farm bill players can at least talk with perhaps more flexibility and perhaps more funding than the current farm bill baseline. That will depend in part on whether House Budget Chair Jody Arrington (R-Tex.) is able to get more funding beyond what is now signaled by the Congressional Budget Office (CBO).

And Washington insiders continue to signal high odds for ag disaster and ag price mitigation measures to be part of a “minibus” spending package that includes Agriculture appropriations for fiscal year (FY) 2025. House Speak Mike Johnson (R-La.) does not support a year-end omnibus spending bill and will likely again push his layered approach to spending measures like last fiscal year.

Stabenow Finally Releases Full Text of Senate Farm Bill; Here's What It Means for Agriculture

Stabenow unveiled 1,397-page details of her long-awaited farm bill Monday morning. This comes as early Sunday evening Pro Farmer broke the news that Senate Ag Chairwoman (D-Mich.) had briefed Democrats but not Republicans on her coming farm bill text, which was expected to be released Monday.

Stabenow said in a news release and summary of the bill , “The foundation of every successful farm bill is built on holding together the broad, bipartisan farm bill coalition. This is a strong bill that invests in all of agriculture, helps families put food on the table, supports rural prosperity, and holds that coalition together.”

BREAKING: Chairwoman @SenStabenow Introduces Rural Prosperity and Food Security Acthttps://t.co/qRunZlk6zj
— Senate Ag, Nutrition, & Forestry Committee Dems (@SenateAgDems) November 18, 2024

The Rural Prosperity and Food Security Act includes $39 billion in new resources “to keep farmers farming, families fed, and rural communities strong.” The bill builds on the proposal Stabenow released in May by investing new resources and including innovative, new ideas to deliver the assistance farmers need faster.

It provides farmers with the certainty of a 5-year farm bill and the immediate help they need to manage the urgent needs of the present. It doubles down on our commitment to rural communities, ensures that the Supplemental Nutrition Assistance Program (SNAP) keeps up with the realities of American life, and brings the historic investments in climate-smart conservation practices into the farm bill. These new investments include:

$20 billion to strengthen the farm safety net to support all of agriculture and establishes a permanent structure for disaster assistance so emergency relief reaches farmers faster;
$8.5 billion to help families make ends meet, put food on the table, and improve access to nutrition assistance;
$4.3 billion to improve quality of life in the rural communities that millions of Americans call home.”

Farm CPA Paul Neiffer has already combed through the bill, and says, “This is our first preview of the Senate Farm Bill Proposal. There appears to be some benefit to production Ag, however, many of the proposals seem to penalize production ag such as the following:

Very limited increase in base acres
Restriction on payments due to ownership of farmland by higher AGI individuals or entities
Reduction in AGI limits
No change to definition of farm income
Possible limit on PLC payments
Items that may benefit production ag include:
Permanent ERP (although this is a very messy program)
Partial advance payments of ARC and PLC
Automatic 2023 and 2024 ARC or PLC decisions”

Senate GOP Ag Committee Ranking Member Reacts

Senate Ag Committee ranking member John Boozman (R-Ark.) on X wrote: “An 11th hour partisan proposal released 415 days after the expiration of the current farm bill is insulting. America’s farmers deserve better.”

“An 11th hour partisan proposal released 415 days after the expiration of the current farm bill is insulting. America’s farmers deserve better.” RM @JohnBoozman
— Senate Ag Committee Republicans (@SenateAgGOP) November 18, 2024

Meanwhile, the National Pork Producers Council (NPPC) issued the following statement:

“Though America’s pork producers appreciate Chairwoman Stabenow’s efforts to publish Farm Bill text, this is simply not a viable bill, as it fails to provide a solution to California Prop. 12,” said NPPC President Lori Stevermer, a pork producer from Easton, Minn. “Pork producers have continually spoken up about the negative impacts of this issue, and it is a shame these conversations were disregarded.”

In May, NPPC secured 100 percent of pork producers’ priorities in the House Agriculture Committee-passed bipartisan 2024 Farm Bill. In June, producers once again secured all policy priorities in Senate Agriculture Committee Ranking Member John Boozman’s 2024 Farm Bill framework.

NPPC said it urges both chambers of Congress to swiftly consider and pass a Farm Bill this year that includes a fix to California Proposition 12, a state law that places arbitrary housing standards on the pork industry, creating uncertainty for pork producers as they look to continue their operations to the next generation.

Additional Impact on Agriculture from Farm CPA

In a post this morning, Paul Neiffer of Farm CPA Report included a quick preview of the items that jumped out at him relative to the farm bill details released by Stabenow.

Reference Prices: The House proposal raised reference prices by approximately 10-20%. The Senate proposal appears to raise reference prices by a flat 5% (rounded). Although it appears that Cotton only went up by 4% instead of 5%.
Increase in Base Acres
- Only underserved and disadvantaged farmers may increase base acres
- Based on average of 2018-2022 plantings
- Includes prevent planted acres
- Maximum increase of 160 acres per farm
- If disadvantage farmer does not farm acres during 2025-2029, then increased base acres are eliminated
- Special 2023 and 2024 ARC/PLC election
- Automatic election to be paid the highest amount for 2023 and 2024 crop year even if the farmer originally elected ARC or PLC.

Limit on PLC Payment: The maximum amount of payment for PLC will be 15% of the effective reference price. As example, assume a farmer has a PLC yield of 200 bushels for corn and the effective reference price is $4.30 and the final corn harvest price is $3.50. Under the old PLC rules, the farmer could receive 200 bushels times 80 cents per bushel or $160. Under this proposal, the farmer is limited to 65 cents or $130 per acre.
Partial PLC Payments: Instead of waiting until after October 1 to collect a PLC payment, the farmer, in certain situations may elect to receive up to 50% of the crop beginning February 1. This is based on firm projections by USDA that the final harvest price will be below the effective reference price. If USDA pays too much, then the farmer must pay it back.
Agricultural Risk Coverage: As expected, the Bill increases the guarantee from the current 86% to 88%, less than the 90% in the House Bill. However, not expected, the Bill increases the maximum payment to 12.50% of benchmark revenue, matching the House Bill and makes this retroactive to the 2024 crop. 2023 crop remains at 10%.
Partial ARC Payments: Provides same mechanism for partial payments as under PLC.
Increase to Marketing Loan Rates: For 2025 crops and subsequent years, the loan rate will be the lesser of 110% of current loan rates or an adjustment based on current input costs versus a five-year average.
Sugar Program: Increase sugar cane payment to 24 cents per pound for 2025-2029. Sugar beet growers will receive 136.5% of sugar cane payment rate.
Permanent ERP: Emergency Relief Program would be made permanent (at least until next farm bill). Payment limits of $500,000 for specialty crops and $250,000 for all other crops.
Terms appear similar to old ERP programs, but it does not mandate how USDA will administer it, etc. Also, no extra payment limit if you can prove you are a farmer. This may still be messy for CPAs to help farmers calculate their claim. Also, requires farmers to insure all acres.
Adjusted Gross Income (AGI) limits: AGI limits dropped from $900,000 to $700,000.
- Increases AGI limits to $1.5 million for specialty and high-value crops.
- What happens if a farmer grows both? The Bill does not address this, other than likely leave it up to USDA to come up with rules.
- Waiver of AGI rules available to economically distressed producer.
- It appears that no payments will be allowed if the land is owned by someone or an entity whose AGI is over $700,000. This means that a farmer who is cash renting that ground will not qualify for any payment on that ground. Under current rules and the House Farm Bill proposal, any farmer who is cash renting the ground and their AGI is under the limit will qualify for a payment. This is a major change and will create the law of unintended consequences. They seem to want to not have an incentive for wealthier individuals to purchase land since their high AGI will not qualify them for any payments but under current rules they get no payment anyway.

Increase in CCC Scoring: Section 1708 indicates that for purposes of CBO scoring, the restrictions on utilizing CCC funds shall be $6.7 billion per year for 2024-2033. The last scoring by CBO was $400 million per year.

CRP Rentals Limit Increased to $125,000 from current $50,000

Crop Insurance Changes: Increases subsidies for beginning and veteran farmers and ranchers to essentially match House proposal.
- Increases SCO to allow for payment at 88% instead of 86% of guarantee. House was at 90%.
- Increases premium subsidies.
Makes improvements to Whole Farm and Micro Farm insurance plans.

Comments:

Several contacts, asked to respond to Stabenow’s late farm bill details, used the same words: “Wow, finally, but too late.” Stabenow is departing Congress after this session ends, and veteran farm bill watchers say this late-entry farm bill is not a positive chapter in her long career. Most are asking why she chose today in releasing the details, and why she took a partisan approach in briefing about the matter.