Farmers would see an expanded safety net under a package of provisions released late Monday, May 12 by the House Agriculture Committee.
The committee on Tuesday evening began debating a bill that boosts the farmer safety net, crop insurance and support for trade programs while also tightening eligibility for nutrition programs and shifting some costs to states.
Under the plan, farmers would see better reference prices, a broader band of protection levels under commodity and insurance programs and see the payment limit for farm programs increased.
The budget reconciliation package laid out by House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA-15) essentially addresses the lion’s share of a farm bill package by dealing with the commodity title, nutrition, crop insurance, trade and research titles while leaving out sections such as conservation, forestry and rural development.
The package put together by Thompson is projected to cut $290 billion out of the costs of the Supplemental Nutrition Assistance Program (SNAP) over 10 years while increasing the farmer safety net, crop insurance and trade programs by roughly $60 billion over the next decade. The package will be included in the “The One Big, Beautiful Bill” that Republicans are putting together to extend and expand on the 2017 tax cuts while also cutting spending by rolling back programs such as SNAP and Medicaid.
“For far too long, the SNAP program has drifted from a bridge to support American households in need to a permanent destination riddled with bureaucratic inefficiencies, misplaced incentives, and limited accountability,” Thompson said in a statement. “This portion of the One Big, Beautiful Bill restores the program’s original intent, offering a temporary helping hand while encouraging work, cracking down on loopholes exploited by states, and protecting taxpayer dollars while supporting the hardworking men and women of American agriculture.”
House Ag members met Tuesday evening at which every lawmaker of the 52-member committee had a chance to make an opening statement on the package. The committee was expected to pick up where it left with a markup, member amendments and potential vote on Wednesday, shortly before WLJ press time.
Safety net programs
For the farmer safety net, the bill increases reference prices for the Price Loss Coverage (PLC) program in line with the farm bill package that passed out of the committee last year.
• Corn, $4.10 a bushel.
• Soybeans, $10/bushel.
• Wheat, $6.35/bushel.
• Cotton seed, $0.42/pound.
• Rice, $16.90/cwt.
• Grain sorghum, $4.40/bushel.
For Agricultural Risk Coverage (ARC-County) the ARC guarantee would increase from 86% to 90% of benchmark revenue. The maximum payment rate for ARC-County and ARC-Individual also would increase from 10% to 12.5% of benchmark revenue.
The bill also raises the loan rates for non-recourse marketing loans to producers. For corn, the new loan rate would be $2.42/bushel, $6.82/bushel for soybeans, $0.55/lb. for upland cotton and $3.72/bushel for wheat.
Farmers would also see payment limits increased under the bill from $125,000 per individual or entity to $155,000, starting with the current 2025 crop year.
The adjusted gross income limit for producers would remain at $900,000 except for individuals or legal entities that demonstrate at least 75% of their income is derived from farming, ranching or silviculture.
For base acres, the bill creates a mechanism to add 30 million base acres, reflecting that large tracts of farmland have gone into production, but those acres have been excluded from commodity programs. Eligibility to enroll those acres will be limited based on planted acres and an allocation formula that USDA will use to spread out enrollment.
In dairy, the bill would improve Dairy Margin Coverage protection from 5 million lbs. to 6 million lbs.
Livestock details
Livestock producers also would see a 100% payment based on market value for livestock lost to predators. Producers would see a 75% payment rate for livestock lost to weather. Another provision also would provide payments to producers due to unborn livestock death losses.
The bill also locks in $15 million a year to help eradicate feral swine.
A pilot program for poultry insurance also would be created for poultry producers.
Other details
The bill also improves crop insurance premium support levels for farmers, raising protection levels for area-based plans up to 95% coverage levels while increasing the federal premium cost share from 65% to 80%. The bill’s crop insurance provisions appear to fall in line with a bill that was reintroduced recently by Republican senators.
The bill also includes provisions to increase funding for trade promotion programs. The Market Access Program would receive $400 million a year while the Foreign Market Development Cooperator Program would receive $69 million a year.
The National Sustainable Agriculture Coalition details that the bill rescinds unspent funds from the Inflation Reduction Act (IRA) for programs including the Conservation Stewardship Program, the Environmental Quality Incentives Program, the Regional Conservation Partnership Program and the Agricultural Conservation Easement Program. The bill builds in specific spending for each of those programs through fiscal year 2031.
Also on May 13, the Senate Agriculture Committee held a hearing on conservation where groups that testified highlight that conservation programs remain underfunded and oversubscribed even with the boost in funding that came from the IRA. Groups also raised concerns about staffing.
“The programs are oversubscribed. I believe in fiscal year 2023, 25% of the projects were funded. So a very small amount. The money is tight,” said Brad Doyle, a board member for the Arkansas Farm Bureau, who testified in the Senate hearing.
The red line for Democrats will be the cuts to SNAP.
The bill tightens eligibility for people considered “able-bodied adults without dependents,” known as ABAWDs. In a fact sheet, House Ag Republicans stated only 28% of that population draws work income, and nearly 40% of ABAWDs living in states where the work requirements are waived. The bill would raise the age work requirements for this group from 54 years of age to 64.
The bill also introduces a requirement that states start providing a cost share for benefits in fiscal year 2028, stating that such a requirement would reduce the 11% payment error rate in the program. Such a move also would create an incentive for states to discourage people from enrolling in the program. States also would be required to pay a bigger chunk of the administrative costs for SNAP.
Rep. Angie Craig (D-MN) issued a late statement Monday declaring the bill would “decimate” SNAP and take away food assistance from seniors, children, veterans and people with disabilities. — Chris Clayton, DTN ag policy editor
