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THE LAND — JULY 22/JULY 29, 2022
Today’s Farm Bill different from original 54-page document Even though there is still over a Farm Bill passed in 2018 was over 1,000 year remaining on the current Farm pages in length, and contains 12 separate Bill, discussions have already been titles, which cover a multitude of programs ongoing since earlier this year on administered by USDA. developing the next Farm Bill. The Under the crop loan program, producers can current Farm Bill, known as the take out a low interest loan with USDA, using “Agriculture Improvement Act of the crop as collateral before it is sold. The pro2018”, expires on Sept. 30, 2023, and ducer can either repay the loan principal plus will include coverage of the 2023 crop interest when the crop is sold or can forfeit year. FARM PROGRAMS the crop to USDA. Over the past several Farm Bills date back to Great decades, the crop loan program has been used Depression era of the 1930’s, with the extensively by farm operators to get needed By Kent Thiesse first Farm Bill having just two titles, working capital for purchasing crop inputs for and being only 54 pages in length. The Agricultural the following crop year. Most national crop loan rates Adjustment Act of 1933 established the crop loan were increased as part of the 2018 Farm Bill, and program, which is still in existence today. some groups are pushing for further increases in the The Agricultural Act of 1949, which is also known commodity loan rates in the next Farm Bill. as the “permanent farm legislation”, was never Land set aside and conservation programs were repealed or allowed to expire, and becomes the added to Farm Bills in the 1950’s, with the estabFarm Bill legislation for many commodity programs lishment of the Soil Bank Program. While the Soil if a new Farm Bill is not enacted when the previous Bank Program no longer exists, there have been Farm Bill expires. Many provisions in the 1949 leg- many other set-aside and conservation programs, islation are very outdated and did not include the including the popular Conservation Reserve SNAP program, the current crop insurance proProgram (CRP) which was added in the 1985 Farm gram, or many popular ag and conservation proBill. The 2014 Farm Bill reduced the maximum grams, including CRP. Falling back to the 1949 legCRP acreage from 32 million acres to 24 million islation gives Congress extra incentive to complete acres, which was the lowest level since the initiation Farm Bills in a timely manner. of the CRP program. The 2018 Farm Bill gradually increased the maximum CRP acres back to 27 milSome members of Congress are hoping to move lion acres. There will be slightly over 23 million toward finalizing a new Farm Bill by the end of 2022 acres in the CRP program by the end of 2022. There or early 2023 to allow adequate time for the U.S. Department of Agriculture to implement the new legis- will likely be strong efforts by some members of Congress, as well as agricultural and environmental lation. However, reaching that goal may be difficult, given the mid-term elections later this year and poten- organizations, to increase the CRP participation and tial changes in the U.S. House and Senate Agriculture acreage in the next Farm Bill to enhance carbon sequestration efforts. There are also several other Committees in the 2023 session of Congress. conservation programs that are part of the current When most people hear of a “Farm Bill,” they think Farm Bill, including the Environmental Quality of the commodity programs and payments which Incentives Program (EQIP) and the Conservation affect crop producers. Some people may be aware Stewardship Program (CSP), and the Agricultural that crop insurance and conservation programs are Conservation Easement Program (ACEP). included under the Farm Bill, and some are knowlFood stamps were added to Farm Bill in 1973, edgeable that Supplemental Nutrition Assistance with program being administered by USDA. Program (SNAP) and food stamps are part of the Slightly over 80 percent of the proposed funding for Farm Bill legislation. However, very few people outthe next Farm Bill will go to SNAP-related proside of government officials and policy experts are grams, which includes the food stamp program, the aware that the Farm Bill also covers funding for rural fire trucks and ambulances, export promotion, women, infants, and children (WIC) program, and the school lunch program. The Federal budget outinternational food aid, forestry programs, ag research and extension education at land-grant uni- lay for the SNAP program more than doubled from 2008 to 2013, then declined briefly before increasing versities, and school lunch programs. The current again in 2020 and 2021, due to the economic challenges caused by the Covid pandemic. Some members of Congress and other groups would like to see Call today and receive a the Nutrition Title and SNAP programs removed from the Farm Bill. However, the Nutrition Title programs are important to nearly every member of $ Congress including those in urban areas. About 10-15 percent of the funding in the proposed Farm Bill will be targeted for farm commodity
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programs and crop insurance programs. The current Farm Bill provides eligible crop producers the choice between the county revenue based Ag Risk Coverage (ARC-CO) program, or the price-only Price Loss Coverage (PLC) program for corn, soybeans, wheat, and other eligible commodity crops. Some farm organizations are pushing for higher crop reference prices in the 2023 Farm Bill, given the much higher crop input costs which have occurred in the past couple of years. The current Farm Bill doe allow for small gradual increases in the crop reference prices during extended periods of higher commodity prices. The dairy margin protection program and sugar support programs are also included under the commodity title of the Farm Bill. Most crop producers and ag lenders will highlight a sound working crop insurance program as the centerpiece for a solid risk management plan in a farm operation. Over 95 percent of the corn and soybean acres in the Upper Midwest are typically insured by some type of crop insurance coverage. Most crop insurance premiums are subsidized at a rate of 60-65 percent by the federal government, as part of the Farm Bill. Some members of Congress and some organizations are calling for some changes and modifications to the current Federal Crop Insurance program, while most farm organizations are lobbying to keep the current program. Some livestock producer organizations would like to see enhancements to risk management programs for livestock production. Passage of a new Farm Bill is very complex, with programs ranging from farm commodity programs to food and nutrition programs, from conservation programs to rural development programs, and many more. In many cases, finalizing a Farm Bill in Congress can be quite controversial, and not necessarily by political party lines. The various Farm Bill programs become quite geographical, with members of Congress wanting to protect the farm, food, conservation, and economic interests of their state or congressional district. The very large federal budget deficit in recent years has added a new element to successful passage of a large Farm Bill. Currently, both the U.S. House and U.S. Senate Ag Committees are seeking input on the 2023 Farm Bill through a series of Congressional hearings and listening sessions both in Washington DC and in committee members’ states or districts. In addition, the House Ag Committee is offering an opportunity to submit feedback and ideas for the next Farm Bill through an online Farm Bill feedback form”, which is available at https://agriculture.house.gov/news/documentsingle.aspx?DocumentID=2561 Development of the 2023 Farm Bill and other ag policy issues will garner plenty of attention during the Farmfest candidate forums and other feature forums taking place Aug. 2-4. Details on the forums can be found elsewhere in this issue of The Land. v
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