Ag Policy Blog

A group of 300 national and state farm organizations, agribusinesses, lenders and farmer cooperatives on Monday sent a letter to the leaders of the U.S. House and Senate calling on them to finish a farm bill "before year's end."

The farm groups' letter to the House Speaker, Senate Leader and minority leaders in Congress said Congress needs to pass a "meaningful farm bill in 2024 that addresses worsening conditions in farm country" -- citing the "farm economy that has taken a downward spiral."

"It is critical that Congress pass a new farm bill that strengthens the safety net as many producers are facing multiple years of not being profitable and this is causing their overall financial situation to deteriorate. Some will have challenges as they seek operating credit for the 2025 crop year."

As DTN has reported, net farm income for 2024 is projected 4.4% lower than last year nationally, though not as bad as initial forecasts back in February. Grain farmers are seeing steeper declines in cash receipts versus livestock producers who are seeing better prices and lower feed costs.

Congress right now is looking at potentially extending the current farm bill. Lawmakers are returning this week with a short window to pass legislation that will keep the federal government operating after Sept. 30, the end of the fiscal year. It's likely a farm-bill extension would be tacked onto such a funding bill.

The farm groups in their letter pointed to the House Agriculture Committee farm bill that "addresses many of the significant challenges our members face."

The Senate Agriculture Committee has not advanced a bill as negotiations between Democrats and Republicans continue behind the scenes.

The House Agriculture Committee's farm bill raised reference prices, allows for an update of base acres and provides some improvements for crop insurance as well. The problem is the bill will face a hard time passing the House floor because of its costs and questions about how it is funded. Democrats also are unlikely to back the bill because it reduces nutrition funding and takes away some of USDA's authority to spend funds.

The farm groups pointed to "considerable gaps" in the 2018 farm bill that forced more ad-hoc funding to deal with the Trump administration's trade war with China, the pandemic and the Russian invasion of Ukraine. The farm groups also stated they are facing rising foreign subsidies as well as tariff and nontariff trade barriers.

"These conditions seriously tested the effectiveness of the 2018 farm bill, and it was only by aggressive use of supplemental assistance that many farms survived."

The farm groups called for a bill that offers "a durable safety net, along with risk management tools like a strong federal crop insurance program, voluntary and locally led incentive-based conservation programs, and enhanced international marketing and promotion programs" all of which are needed for farm families and rural communities.

Failing to pass a farm bill or settling for an extension "would leave thousands of family farms with no option to continue producing for this nation in 2025 and beyond," the farm groups stated.

Farm groups' letter

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Chris Clayton can be reached at Chris.Clayton@dtn.com

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