The latest deadline for the Farm Bill passed unceremoniously – and seemingly, unnoticed by many – at midnight on Sept. 30, without a push from lawmakers to pass a new Farm Bill or an extension. So, it looks like Congress will have to scramble in the lame-duck session set to begin Nov. 12 to come up with some agreement on the Farm Bill before benefits run out at the end of the year. Should the Farm Bill lay dormant much longer, there will be major consequences.
From 30,000 feet, why is the bill so important to the $16.7 billion agricultural industry? Here are just a few reasons:
Financial security through commodity programs
The Farm Bill includes commodity programs that provide direct financial support to farmers who grow staple crops like corn, wheat, soybeans, rice, and cotton. These programs help protect farmers from fluctuations in commodity prices, which can be affected by a variety of factors, such as global market demand, trade policies, and natural disasters. The bill provides mechanisms like Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) to help farmers to protect their income when prices fall below a certain threshold due to poor yields.
Access to Credit and Loans
The Farm Bill provides access to low-interest loans and credit through the Farm Service Agency (FSA), which helps farmers, especially inexperienced and socially disadvantaged farmers, access the capital they need to, for example, purchase land, equipment, and supplies, as well as to recover from financial losses.
Crop insurance and disaster assistance
Unpredictable weather patterns, such as droughts, floods, and early frosts, can disrupt the growing season and significantly impact yields. Farmers rely on crop insurance and disaster assistance, which are subsidized by the Farm Bill, to protect their income in case of crop failures due to adverse weather conditions. This is especially critical as the length of growing seasons is impacted by weather events.
Yes, it takes an act of Congress
While partisan division is not uncommon in today’s Congress, it is worth nothing – and not just a bit disheartening – that the bill has traditionally brought together lawmakers from both sides of the aisle who understand its importance. Additionally, the stalemate over the current Farm Bill could very well be ushering in a new era in “farm politics,” as it joins the last three Farm Bills in a trend of delays and partisan division — a marked contrast from the legislation’s history of bipartisanship.
Unfortunately, bipartisan support is essential for final passage because the size of the $1.5 trillion Farm Bill means it inevitably loses some votes from fiscal conservatives and others. Unfortunately, too, the Farm Bill is one of our most important pieces of legislation. It establishes the main agricultural and food policies of the government, covering price supports for farm products, especially corn, soybeans, wheat, cotton, rice, peanuts, dairy, and sugar; crop insurance; conservation programs; and nutritional programs for 41 million Americans, including the Supplemental Nutrition Assistance Program (SNAP) formerly known as food stamps.
Fortunately, there are forces at work that are least trying to move the Farm Bill in the right direction. The House and Senate both approved stopgap spending bills at the end of September to avoid a partial government shutdown. The short-term funding bill, or CR (Continuing Resolution) will keep the federal government running through December 20. The day the CR was approved, 140 Republican House members sent a letter to congressional leadership asking to make the Farm Bill a priority in the waning weeks of 2024. “Farmers and ranchers do not have the luxury of waiting until next Congress for the enactment of an effective Farm Bill,” the letter stated, noting rising production costs and falling commodity prices that have put farmers in a very difficult position. House Democrats agreed, saying they also say they want to pass a new farm bill this year.
According to reporting in The Washington Standard, “House Minority Leader Hakeem Jeffries, a New York Democrat, listed the Farm Bill as one of his top three priorities for the lame duck. ‘It will be important to see if we can find a path forward and reauthorize the Farm Bill,’ Jeffries was quoted saying, “in order to make sure that we can meet the needs of farmers, meet the needs from a nutritional standpoint of everyday Americans, and continue the progress we have been able to make in terms of combating climate crisis.’
In addition, nearly 300 members of the National Farmers Union visited lawmakers in September to ask for passage before the end of 2024. National Farmers Union President, Rob Larew, made the case on behalf of the union, telling Congress that family farmers and ranchers simply cannot wait and need a new bill by the end of this year. “With net farm income projected at historic lows, growing concentration in the agriculture sector, high input costs, and more frequent and devastating natural disasters, Congress can’t miss this opportunity to pass a five-year Farm Bill,” warned Larew.
Agriculture Secretary Tom Vilsack, a former Iowa governor, summed up his advice to Congress in simple, straightforward terms. “If they want to pass the Farm Bill,” he said, “they’ve got to get practical, and they either have to lower their expectations or raise resources. You close a loophole here or there in terms of the taxes, you generate more revenue, and you have that revenue directly offset the increase in the Farm Bill.”
Hopefully, Congress can figure it out and quickly. Too many Americans, and American farming families, are relying on when, and what, Congress does next.
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