Congress adjourned without reauthorizing the 2018 Farm Bill, leaving critical agricultural programs in limbo until lawmakers return after the election. If no action is taken by the end of the year, the expiration could trigger outdated policies and disrupt critical support for farmers and ranchers, potentially resulting in economic consequences.
A report by the Congressional Research Service on the expiration of the 2018 Farm Bill highlighted how farm programs may be affected by the temporary extension for the 2024 crop year. The Congressional Research Service is the nonpartisan public policy research institute for Congress.
Here are the primary impacts related to farm commodity support, crop insurance, disaster programs, conservation and their effects on livestock production:
• Farm commodity support programs: If Congress fails to pass a new farm bill or extend the current one by January 2025, outdated “permanent law” from the 1938 and 1949 farm bills will take effect.
According to Roger Cryan, chief economist at the American Farm Bureau Federation, the permanent laws were left as a safeguard. They would implement “parity prices” based on 1910-14 levels and do not account for modern farming efficiencies. While the higher prices might initially seem beneficial, they are so far above current market rates that they would severely disrupt the agricultural economy once the 2025 crops are harvested.
For dairy producers, this could trigger the “dairy cliff,” potentially doubling milk prices and creating market volatility. Farm bill commodity programs are extended through the 2024 crop year, but without action, permanent law will replace them.
• Crop insurance and disaster programs: Unlike other farm programs, federal crop insurance is permanently authorized and will continue to operate regardless of the farm bill’s expiration. This is crucial for livestock feed production, as it protects against crop yield and revenue losses. The disaster assistance programs for livestock, including the Livestock Indemnity Program and Livestock Forage Disaster Program, are also permanently authorized, ensuring continued support for livestock producers facing disasters.
• Conservation programs: The farm bill’s expiration impacts various agricultural conservation programs, many of which have permanent and temporary components.
Mary-Thomas Hart, chief counsel for the National Cattlemen’s Beef Association (NCBA), told WLJ that the only current funding for conservation programs comes from the Inflation Reduction Act, which is allocated for four specific Natural Resources Conservation Service programs. However, only climate-smart agriculture and forestry practices are eligible for funding. Hart said the climate-smart limitation leaves programs like the Conservation Reserve Program, Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP) without funding.
Hart continued that a big concern of NCBA is the loss of policy provisions tied to these programs, particularly the 50% livestock carve-out under EQIP, which mandates that USDA allocate half of EQIP funds for livestock-specific practices.
Hart said that NCBA wants to see the farm bill finalized during the lame-duck session. She emphasized that the expiration at the end of September highlighted the necessity of prioritizing the farm bill before the year ends. Hart shared NCBA’s full support for the House version of the farm bill, which she said maintains the critical 50% livestock carve-out and includes essential pilot programs while removing barriers hindering producers’ access to vital programming.
Hart noted that if the Senate version of the farm bill is finalized, it would limit the conservation practices available under EQIP and CSP, taking important options off the table for livestock producers.
Lame-duck session
Progress on the farm bill has been stalled for the last few months, with some lawmakers calling for passage after Congress returns for a lame-duck session on Nov. 12.
Shortly after passing the continuing resolution, more than half of the Republican members of the House of Representatives sent a letter to leaders urging the passage of the bill advanced by the House Agriculture Committee.
“The negative impacts of failing to act will not just stop at the farm gate, but will also hit Main Street businesses, rural communities and the national economy,” the letter read. “Among some commodities and regions, calamitous impacts in farm country, such as those felt during the crisis of the 1980s, are a genuine possibility.”
House Minority Leader Hakeem Jeffries (D-NY-08) also expressed the need to pass the farm bill, listing it third on the bills that need addressing behind averting a government shutdown and ensuring military preparedness when Congress returns. Jeffries told reporters it is important to find a way to reauthorize the farm bill to meet the needs of farmers and everyday Americans while continuing efforts to address the climate crisis.
According to The Hill, House Agriculture Committee Chair Glenn “G.T.” Thompson (R-PA-15) met in late September with House Agriculture Committee ranking member David Scott (D-GA-13), Senate Agriculture Committee Chair Debbie Stabenow (D-MI) and Senate Agriculture Committee ranking member John Boozman (R-AR) to discuss the farm bill.
Thompson said getting a deal in the lame-duck session isn’t “highly likely, but I’m an eternal optimist, and I’m going to work hard every day to make that happen.”
Agriculture Secretary Tom Vilsack also expressed optimism that a farm bill will pass by the end of the year, stating, “I think there’s better odds than not that we get it done,” at a Farmers and Ranchers in Action event.
Vilsack said it was a positive sign that Republican and Democratic House and Senate Agriculture Committee leaders were actively engaged in discussions. According to Vilsack, the key issue was determining how much of an increase in crop subsidy spending could be achieved.
Hart said if the farm bill is not passed during the lame-duck session, NCBA will continue prioritizing it in the next Congress. — Charles Wallace, WLJ contributing editor
