Ag Policy Blog

KANSAS CITY, Mo. (DTN) -- The state of the farm economy is pushing key members of Congress to look at passing an aid package for commodity farmers because negotiations on a full farm bill are stalled.

Sen. Jerry Moran, R-Kan., spoke Monday at the Kansas City Agribusiness Council's Ag Outlook Forum and suggested lawmakers are looking at passing a "mini-extension plus," to help farmers suffering from low prices.

Moran told more than 250 people at the forum that he has been a critic of Senate Agriculture Chairwoman Debbie Stabenow, D-Mich., and her handling of the farm bill this year. But Moran said he had a "moment of optimism" when he spoke to Stabenow last week on the Senate floor. Moran said Stabenow is recognizing the financial situation for farmers is "dire," and farmers can't wait for Congress to reach an agreement on a five-year farm bill. "We cannot afford to wait past the end of the year," Moran said.

Stabenow also recognizes farmers can't wait for another extension of the current farm bill. One option is adding "something more" by bolstering the commodity safety net either in a farm-bill extension or an appropriations bill.

"The good news to me is that Sen. Stabenow is working to put together a plan to move forward that is an extension of some of the things in the farm bill, but most importantly, something that is added to provide assistance," Moran said.

LOOKING FOR A WAY TO ACCELERATE PAYMENTS

Along with potentially boosting commodity programs, Moran said Stabenow is looking for a way to accelerate payments. Right now, payments for the Title I Agricultural Risk Coverage and Price Loss Coverage programs are always a year after harvest. Any ARC or PLC payments in October, for instance, will be based on last year's harvested crop.

"So, she's looking for a path forward that would deliver agricultural aid assistance to farmers in a more timely fashion than just altering the current provisions of Title One," Moran said.

DTN reached out to Stabenow's office on Monday for comment but did not receive an immediate response.

FINANCIAL STRESSES FACED

Moran said his visits to farmers across Kansas in October highlighted some of the financial stresses producers are facing. The impacts are being felt by businesses that supply farmers as well.

"They will tell me the same thing that I've heard from other lenders in the farm arena, that things are challenging," Moran said.

Moran also pointed to the agricultural trade deficit that is looking at $30 billion this year and $42.5 billion in fiscal-year 2025. Moran said there has to be a way to revitalize agricultural exports or farmers will continue to struggle with income.

"We can produce more than we can sell the United States, and we've got to figure out how to revitalize -- whatever the next administration is -- the opportunity for agricultural exports, or there is going to continue to be lack of income on the farm," Moran said.

Beyond his conversations with Stabenow, Moran said his agricultural staff also suggest "this sentiment is also developing on the House side." Moran said House members he has spoken to are either looking at a full farm-bill extension or a shorter-term extension along with added assistance for commodity producers.

"This may be the opportunity in which we can also make a difference," Moran said.

The senator also credited the various farm groups who came to Washington last week and lobbied lawmakers on the farm bill. The National Farmers Union, National Pork Producer Council and supporters of biofuel groups were among the farm groups in Washington, D.C., last week lobbying Congress. NPPC, for instance, had 130 members in D.C.

"We've got all of agriculture saying we need a farm bill," Lori Stevermer, president of the National Pork Producers Council, said at the Outlook conference. "It's your job to do a farm bill. Please do one for us because we are all facing some economic challenges."

Referencing the election, Moran also said, "It's the perfect time to remind both Republicans and Democrats that agricultural interests have yet to cast their votes in November, and movement on a farm bill and a commitment to get one done might be something that would encourage rural votes for whoever is the candidate running for office, including members of Congress, the House or Senate, and the presidential race."

Rep. Tracey Mann, R-Kan., also spoke Monday, saying a farm bill won't address the immediate concerns facing producers, but it will provide stability going forward.

"If we were to pass a five-year farm bill today, it's not going to solve the cash-flow issues for ag producers, but at least for them and their lenders, it would lock in some certainty," Mann said.

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

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