Ag Policy Blog

OMAHA (DTN) -- Farm groups on Saturday pushed to activate their members to reach out members of Congress and press for an economic aid package or vote against a year-end funding bill.

General farm groups and a range of commodity organizations representing crop producers weighed in after learning Congress wasn't able to reach a deal on funding to provide economic aid for financial losses. Groups cited price declines of 40% for their commodities and losses of $300 an acre in the case of cotton.

Republican leaders of the House and Senate Agriculture committees early Saturday released a joint statement blaming Democratic leaders in Congress for rejecting a $12 billion package for farmers and said Democrats are ignoring rural America. Democratic leaders on the same committees later responded Republicans had made a late offer that fell short of what farmers and would take money away from farmers suffering from natural disasters. Democrats had offered a $10.7 billion economic aid package that also increased the baseline for the next farm bill by rolling the remaining $14 billion or so of Inflation Reduction Act (IRA) dollars into the extension of the farm bill.

The lawmakers who make up the "four corners" in farm-bill talks are Rep. Glenn "GT" Thompson, R-Pa., chairman of the House Agriculture Committee; Sen. John Boozman, R-Ark., ranking member of the Senate Agriculture Committee; Rep. David Scott, D-Ga., ranking member of the House Agriculture Committee; and Sen. Debbie Stabenow, D-Mich., chairwoman of the Senate Agriculture Committee.

The four lawmakers were unable to negotiate a renewal of the farm bill, and they haven't been able to reach an agreement on economic aid to go along with a one-year extension of the 2018 farm bill.

After learning there was no deal on an economic package, farm groups on Saturday began calling for Congress to reject any funding deal that doesn't include it.

"Our country will suffer the consequences if Congress takes farmers & our food supply for granted," said Zippy Duvall, president of the American Farm Bureau Federation, on social platform X. "I call on members of Congress who represent ag to stand with farmers by insisting the supplemental spending bill include economic aid for farmers and voting it down if it doesn't."

AFBF had stated that what farmers are receiving now for their crops doesn't come close to covering the costs. "We lost 141,000 farms in five years and if Congress fails to include economic aid for farmers, the sad reality is that we'll lose more," Duvall said in a statement.

Rob Larew, president of the National Farmers Union, noted Congress is running out of time.

"Lawmakers must not walk away from their responsibility to rural America," Larew said. "Congress has already failed to finalize a five-year farm bill. I urge Farmers Union members to tell their elected representatives to not come home until they have delivered immediate support for family farmers and ranchers."

Chuck Conner, president of the National Council of Farmer Cooperatives, also stressed farmers are "facing the one-two punch of low prices and skyrocketing input costs." Conner added, "It would fall far short of what is needed to ensure the survival of thousands of producers across the country. We urge congressional leaders to rethink this approach, negotiate in good faith, and keep their promises to farmers. Without such action, NCFC cannot support such a bill and would urge a 'no' vote on the measure."

The National Cotton Council (NCC) and American Cotton Producers (ACP) stated the groups strongly oppose any spending package that "lacks meaningful short-term assistance for farmers." They also called on their members to reach out to the congressional representatives. The groups said failure to provide an aid package "will mean that many farm families will go out of business in 2025, leading to devastating impacts throughout the rural economy." The groups called on lawmakers to return to the negotiating table.

"Our producers will lose as much as $300 per acre on this year's harvest due to soaring production costs and low market prices," said David Dunlow, chairman of American Cotton Producers. "Unfortunately, political gamesmanship has resulted in legislators turning their back on farmers during our hour of greatest need."

Kenneth Hartman Jr, president of the National Corn Growers Association, said NCGA was "deeply disappointed" at the impasse over economic assistance. Hartman, an Illinois farmer, also called on lawmakers to continue negotiations.

"Corn growers are faced with low prices and high input costs and economic aid would provide them with critical relief during challenging economic times," Hartman said. "While these developments are disheartening, we call on Congress to resume negotiations and pass legislation that includes economic assistance while there is still time."

Chandler Goule, CEO of the National Association of Wheat Growers (NAWG), said the wheat growers also oppose any continued resolution that does not include economic assistance for farmers.

"Wheat growers have seen their prices drop by over 36% since the 2022/23 marketing year and need the certainty an economic assistance package can provide before the end of the year. Period," Goule said. "Congress has already failed to pass a robust farm bill, and the lack of leadership in reaching an agreement will continue to hurt farmers who feed America and the world."

Caleb Ragland, president of the American Soybean Association and soy farmer from Kentucky, also urged congressional leaders to keep negotiating on a path forward.

"While talks continue on an extension of the farm bill and a package to fund the government, soy farmers and other agricultural groups have expressed they do not support a package that fails to acknowledge the economic realities farmers are facing," Ragland said.

Ragland added that soybean prices have fallen 40% in the past two years. "Compounded by an already insufficient farm safety net, this has made it increasingly difficult for farming operations to remain viable," he said. "Without consideration for U.S. farmers, who provide feed, fuel, food and fiber for our country, rural communities and consumers nationwide will likely feel the residual effects of a mounting agriculture recession."

Amy France, a sorghum farmer from Scott City, Kansas, and chair of the National Sorghum Producers, also urged lawmakers to reject a funding bill without economic aid.

"Farmers are operating under an increasingly bleak economic landscape in 2024, and projections for 2025 offer little improvement. Amid growing financial strain, the industry has emphasized the importance of assistance, but Congress has yet to take action. These mounting challenges pose significant risks to the financial viability of many farming operations," France said. "While this assistance will not make producers whole, it would be an essential step in helping farm families navigate the difficulties brought on by economic and weather-related hardships in 2024.

France added, "We urge agricultural leaders in Congress to demand that the supplemental spending bill include substantial financial aid for farmers, and if it doesn't, we ask that they vote against it."

Also see, "Farmer Economic Aid in Peril Over Congressional Deadlock,"

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

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