Talk about an economic aid package for farmers is accelerating quickly by key members of Congress and Secretary of Agriculture Brooke Rollins.
In Congress, the chairs of both the House and Senate Agriculture Committees in recent days have made comments about rallying support among lawmakers for an economic package. Last year, Congress passed $10 billion in economic relief for producers in December that led to the Emergency Commodity Assistance Program (ECAP).
ECAP has paid about just over $8 billion but payments were capped at 85% of payment eligibility. USDA has not made any announcements so far about whether the other 15% of payments will be made.
Politico quoted House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA-15) saying Congress will need to look at another package for the 2025 crop year.
“Unfortunately … we’re going to need some additional economic assistance for our farmers,” Politico quoted Thompson. “We really do have a significant sense of urgency. I’ve never seen it this bad in terms of what our farmers are experiencing.”
Sen. John Boozman (R-AR), chairman of the Senate Agriculture Committee, also is saying in state media he is talking to the White House and other members of Congress about passing an aid package before the end of the year.
“Certainly, it needs to happen in the next few months, as far as 30 days or whatever. These things take awhile to get done, as you know,” Boozman told Talk Business & Politics in Arkansas. “Right now, we’re building momentum to get it done. I’ve met with members, I’m meeting with the White House tomorrow. So again, just covering all of our bases. The good news is my experience is that members are open to doing something. They’re hearing this at home just like our delegation is hearing it.”
Boozman added, “So once it looks like I think that we’re going to go forward and the word gets out that it’s going to happen, then I think that’ll take some of the pressure off from the lenders that will make them feel better knowing that there’s a pot of money out there that’s going to go out and help them, help the farmers service their debts, which is the main thing.”
Arkansas has become an epicenter over the need for economic aid in recent weeks following a meeting that drew hundreds of farmers. Agricultural groups in Arkansas have cited the state’s farmers could lose $1.4 billion in income this year.
Arkansas also happened to be where the National Association of State Directors of Agriculture (NASDA) was meeting.
Reuters quoted Rollins speaking to the NASDA gathering: “We are working with our colleagues in Congress and closely monitoring markets daily to evaluate the amount of additional assistance that might be needed this fall.”
Reuters also quoted Rollins saying USDA is looking at fertilizer markets to ensure “input suppliers are giving farmers a fair shake, to exploring options to provide relief.”
On social media, Rollins continues to blame farmers’ economic conditions on the Biden administration. After speaking to NASDA, Rollins posted on X, “Our farmers are hurting. The last 4 years under the Biden Administration were devastating for rural America—input costs exploded—including a 78% increase in interest payments, a 47% increase in labor costs, a 37% increase in fertilizer, and the list goes on. Our commodity prices collapsed, margins shrank, and markets turned volatile.”
The One Big Beautiful Bill Act increases farm payments by roughly $11 billion a year, but those payments would not begin until a year from now. — Chris Clayton, DTN ag policy editor
