FARM BILL
THE AGRICULTURAL IMPROVEMENT ACT OF 2018 Highlights of the New Farm Bill BY CRAIG COLLINS
O
n Dec. 20, 2018, President Donald Trump supports for U.S. farmers, as well as greater flexibility signed an $867 billion farm bill, officially in choosing among them. known as the Agricultural Improvement Act of Though the provision for stricter work requirements 2018, that reauthorized and made minor modifications for SNAP – by far the largest USDA-administered to programs and funding levels authorized in the 2014 program, accounting for 80 percent of farm bill farm bill. The bill was passed by an overwhelming spending – was eliminated from the bill signed by bipartisan majority; the 87-13 vote in the Senate was Trump into law, the administration immediately the largest Senate majority ever for a farm bill. unveiled a plan to toughen work requirements Earlier, in May, a vote had actually failed in the by restricting the ability of states to waive House of Representatives, amid controversies existing requirements. According to Agriculture about work requirements for beneficiaries of Secretary Sonny Perdue, the proposed changes The bill was the Supplemental Nutrition Assistance Program would be entered into the Federal Register passed by an (SNAP, or “food stamps”) and immigration policy and subject to a 60-day period for public for agricultural workers, but toward the end of overwhelming comment. That was subsequently delayed the year, factors converged that compelled negowhen most USDA activities were suspended bipartisan tiators to smooth over differences between the amid the 35-day government shutdown that House and Senate versions. First, several provi- majority; the 87- began on Dec. 22. However, the rule change sions of the 2014 farm bill expired on Sept. was submitted on Feb. 1, 2019, soon after the 13 vote in the 30, the end of the fiscal year, without replacegovernment reopened on Jan. 25, 2019. The ments. Second, in November, the Economic Senate was the comment period ends April 2, 2019. Research Service (ERS) of the U.S. Department largest Senate of Agriculture issued a grim Farm Income Forecast for 2018: The nation’s net farm income, majority ever for RISK MANAGEMENT TOOLS the service projected, was set to drop 12 percent a farm bill. from the previous year, even after the first round The Trump administration’s trade war, of “trade aid” payments announced by the U.S. which by the end of 2018 had widened to Department of Agriculture (USDA) in July were include conflicts with China, Mexico, Canada, factored into the equation. Europe, and Turkey, provoked retaliatory tariffs on When Democrats won control of the House of U.S. agricultural products, which in turn caused Representatives in the November mid-term elections, most prices to plunge for American producers. lawmakers from both parties understood that to delay While trade war-associated risks aren’t addressed further would mean beginning negotiations from specifically by the farm bill (affected farmers scratch when the 116th U.S. Congress was seated are being supported with $12 billion in subsidy in January 2019. The farm bill that resulted offers very payments, much of them distributed through few truly new provisions, but does extend a variety of USDA’s Market Facilitation Program), they provide
36