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The 2023 crop year will CRP acres, as well as for be the final year for the increasing the maximum current Farm Bill, which is annual CRP rental rates to set to expire on Sept, 30, incentivize enrollment into 2023 — unless there is an the CRP program. The large extension. 2022 Inflation Reduction Act contained several provisions which provided added funding for the Environmental Quality Incentives Program and the Conservation Stewardship Program, which are part of the Conservation Title. A Farm Bill is one of the most comprehensive pieces of legislation passed by Congress. Passage of a new Farm Bill is very complex, with programs ranging from farm commodity programs to food and FARM PROGRAMS By Kent Thiesse MARKETING nutrition programs, Title III: Trade — from conservation programs to rural This Title includes funding for impordevelopment programs. tant agricultural trade promotion proIn many cases, finalizing a Farm Bill in Congress can be quite controversial, and not necessarily just by political party lines. The Farm Bill programs become quite geographical, with members of Congress wanting to protect the farm, food, conservation, and economic interests of their state or grams, such as the Market Access Program, the Foreign Market Development Program, and the Emerging Markets Program. These trade related programs are very important for opening new markets and maintaining existing markets for U.S. ag exports. Congressional district. Title IV: Nutrition — The Following are a few insights on the 12 Titles included in the current Farm Bill: Nutrition Title, which includes the SNAP program (food stamps), the Women, Infants and Children (WIC) nutrition program, and school lunch

Title I: Commodities — The program, will probably be debated Commodity Title includes all commodi- more than any other Title during Farm ty farm program payments, marketing Bill hearings in 2023. The Nutrition assistance loans, and other crop subsi- Title will likely account for nearly 85 dy payments. In the past two Farm percent of annual federal spending Bills, crop producers have had the allocated under the next Farm Bill, as option to choose between the price-only opposed to 75 percent in the 2018 Price Loss Coverage (PLC) and county Farm Bill. Several billion dollars were yield revenue-based Ag Risk Coverage added to the Nutrition Title budget (ARC-CO) program, which has been an base as part of Covid relief legislation annual choice since the 2020 crop year. and the 2022 Inflation Reduction Act. Some farm organizations would like to Some members of Congress would like see increased crop reference prices and to separate the Nutrition Title from marketing assistance loan rates, as the Farm Bill. However, ag policy well as to make some adjustments to experts warn that funding for ag comthe ARC-CO program payment formu- modity programs could become much la. The Dairy Margin Coverage pro- more difficult if SNAP and the other gram, which has proved to be quite nutrition programs are removed.beneficial for small to medium-sized dairy herds (under 300 cows), was enhanced in the 2018 Fam Bill. Title V: Credit — This Title sets parameters and provides funding for the FSA direct and guaranteed loan

Title II: Conservation — The cur- programs, which have become quite rent Farm Bill set the maximum important to farm operators and ag Conservation Reserve Program acres at lenders. The direct FSA farm owner27 million acres, with additional focus ship loans are especially important to on the Grassland Reserve Program. provide beginning farmers low interest The Farm Bill also set the maximum loans to purchase farmland. Recently, CRP rental rates at 90 percent of the there have been greater efforts to average Farm Service Agency “prevail- reach underserved farmers and ranching” rental rates for Continuous CRP ers with the FSA loan programs.contracts and at 85 percent for General CRP. There will likely be considerable support for expansion of the maximum Title VI: Rural Development — This Title reauthorizes funding for rural development loans to communities and businesses, as well as programs and funding to assist state and local governments with everything from emergency service providers, fire protection, wastewater treatment programs, and more. Special emphasis in the 2018 Farm Bill was provided for expanding broadband service in rural areas of the United States.

Title VII: Research, Extension

and Related Matters — U.S. Department of Agriculture funding for ag research, extension programs, and other food research and education programs through the nation’s Land Grant University system are provided under this Title. Funding for research and education efforts related to organic production and urban agriculture also fall under this Title.

Title VIII: Forestry — This Title reauthorizes and expands USDA collaborative efforts with states for battling forest fires, forestry research and development, insect and disease control, timber management, etc.

Title IX: Energy — This Title provides funding for USDA programs that support the development of biofuels and renewable energy. There may be efforts to expand this Title to include other types of “green energy” programs.

Title X: Horticulture — USDA funding for farmers markets and other local food programs, as well as for the national organic certification program, are provided under this Title. The last Farm Bill legitimized industrial hemp as an agricultural commodity, thus making hemp eligible for crop insurance and other USDA programs. However, this did not affect federal regulations for hemp raised for marijuana production.

Title IX: Crop Insurance — Most crop producers and ag lenders will highlight a sound working crop insurance program through the USDA Risk Management Agency 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, which are subsidized at a rate of 60-65 percent by the federal government. The RMA also offers some insurance products the dairy and livestock producers. Some members of Congress are calling for some changes and modifications to the current programs under this Title, while most farm organizations are lobbying to keep the current program intact. Some livestock organizations would like to see enhancements to RMA programs for livestock production.

Title XII: Miscellaneous — This Title covers provisions and funding for any other USDA programs such as the provision in the last Farm Bill to provide funding for a foot-and-mouth disease vaccine bank.

Both the U.S. Senate and U.S. House Ag Committees held hearings on a new Farm Bill during 2022 and more hearings will likely be planned early in the new Congressional session in 2023. The Congressional leadership has been very committed with plans to have a new Farm Bill completed by Sept. 30, 2023, with very little talk of an extension to the current Farm Bill. Ultimately, there will likely be a compromise reached, and a new five-year Farm Bill will be passed. However, given the political division that currently exists in Congress, a one-year extension of the current Farm Bill is certainly a possibility by the end of 2023.

Kent Thiesse is a government farm programs analyst and a vice president at MinnStar Bank in Lake Crystal, Minn. He may be reached at (507) 7262137 or kent.thiesse@minnstarbank. com. v

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