Ag Policy Blog

OMAHA (DTN) -- Farm groups over the weekend made it clear to members of Congress they should vote against a year-end funding bill this week if it doesn't include economic aid for farmers.

Time is running out on Congress as they face a government shutdown if they do not pass a funding bill by Dec. 21. Lawmakers need to include in that bill a one-year extension of the farm bill and a disaster aid package that deals with a range of natural disasters. Members of Congress are also pressing for funds to support farmers who have faced economic losses due to low crop prices.

Congressional leaders had planned to roll out their year-end package over the weekend, but negotiations broke down Friday. Democrats had proposed a $10.7 billion aid package that also would roll as much as $14 billion from the Inflation Reduction Act (IRA) into the farm bill's baseline. House Speaker Mike Johnson, R-La., rejected that plan, and proposed $12 billion in economic aid to go along with $16 billion in aid for natural disasters.

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 aid.

"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."

General farm groups and a range of commodity organizations representing crop producers weighed in. Groups cited price declines of 40% for their commodities and losses of $300 an acre in the case of cotton.

On Sunday, the Farm Credit System sent a letter to the four top leaders in Congress calling for "meaningful assistance" in the year-end budget bill, citing both natural disasters and "a severe downturn in the agricultural economy."

"As the nation's largest agricultural lender, Farm Credit sees our customers facing increasingly difficult economic circumstances," the Farm Credit letter stated. "Low prices for ag products, coupled with high input costs are creating severe losses for many producers. For some, 2024 is the second or third consecutive year of loss, and producers' working capital has dried up."

Ted McKinney, CEO of the National Association of State Departments of Agriculture, also cited the "powerful headwinds" facing farmers, "ranging from extreme weather to uncertain global demand to supply chain disruptions."

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 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 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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