GOP Budget Bill Aims to Boost Big Agriculture

Senate Yet to Approve Law Helping Big Farms and Cutting Aid

House Republicans have approved a large budget bill that mainly supports big meat and dairy industries while reducing food aid programs. Called the “megabill,” it still needs to pass the Senate and is expected to undergo changes.

One of its key effects is on the SNAP program, which helps around 41 million Americans buy groceries. The bill shifts funding responsibility from the federal government to states, with states expected to cover between 5% and 25% of costs.

The administrative cost-sharing will also be reduced, and work requirements extended to older recipients.

Meanwhile, the bill increases financial support for agriculture. The Dairy Margin Coverage (DMC) Program is expanded, helping more dairy producers during low milk price periods.

Crop subsidies for rice and wheat also grow, and livestock farmers receive more protection against animal loss.

“That’s a direct transfer of wealth,” deCoriolis says of the DMC expansion. “That’s a direct giveaway to dairy companies.”

Support for biofuel producers also increases. The bill extends the 45Z tax credit, originally part of the 2022 Inflation Reduction Act. This credit is often claimed by farms producing biofuels from manure, especially in the Midwest.

Although the EATS Act, which would block state animal welfare laws, was proposed earlier, it is not part of this bill due to budget rules in the Senate. This gives a temporary win to laws like California’s Proposition 12.

Additional measures include increased crop insurance, farm-related tax deductions, and reduced estate taxes for inherited farmland.

While the bill benefits large agribusinesses, it faces likely changes in the Senate due to opposition to its major cuts in social programs like Medicare and Medicaid.