Market Aid in Jeopardy During Farm Bill Extension Talks

By Ryan Hanrahan

Progressive Farmer’s Chris Clayton reported that “nearly $10 billion in immediate economic aid to farmers could be lost because House Republican leaders oppose how Democrats came up with the money for the aid.“

“Staff for Sen. Debbie Stabenow, D-Mich., the retiring chairwoman of the Senate Agriculture Committee, found a way to move the conservation dollars from the Inflation Reduction Act (IRA) into the baseline for the farm bill. It would generate a one-time savings of $10.7 billion, the Congressional Budget Office concluded,” Clayton reported. “‘I said, let’s take the majority of that and put that into a package for farmers immediately,’ Stabenow told DTN. ‘This would go out before the 2025 planting season. It would go out right away.'”

Clayton reported that “Stabenow said she thought other lawmakers would back the plan because it was completely paid for using the IRA dollars. She also emphasized those funds would then add to the baseline funding for the next farm bill as well.”

But Politico’s Meredith Lee Hill reported that Speaker Mike Johnson “said the majority of the GOP conference wouldn’t support a proposed agreement that adds Inflation Reduction Act funding into the legislation’s baseline, according to four people familiar with the discussion who were granted anonymity to discuss private conversations.“

“Johnson’s team told Republicans Tuesday that the majority of the GOP conference doesn’t support incorporating IRA dollars into the farm bill baseline and instead pushed for alternatives, the people said,” Lee Hill reported. “Key House GOP leaders have argued such a move is solely Democratic priority, even though agriculture lawmakers on both sides of the aisle generally support it. But ultraconservatives and other Republicans are trying to outright cut those IRA dollars and block any additional federal spending.”

In addition, Clayton reported that “some key Republican agricultural leaders want more money for direct aid to farmers. House Agriculture Committee Chairman Glenn ‘GT’ Thompson, R-Pa., wants $15 billion in the package. Senate Agriculture Committee Ranking Member John Boozman, R-Ark., has been talking for months about providing an economic relief package through Congress. ‘So, if I’ve got anything to do with it, that’s the direction we would like to go but it’s a matter of working with everybody to get a plan that everyone can live with,’ Boozman told DTN.”

What the Democrat Offer Included

Agri-Pulse’s Philip Brasher and Rebekah Alvey reported that Democrat’s offer “would provide $9.8 billion in ‘economic assistance’ for farmers, including $8.8 billion in payments to producers for crop year 2024 under terms of the Farmer Assistance and Revenue Mitigation Act of 2024 (FARM Act) introduced by Rep. Trent Kelly, R-Miss., this fall. Another $1 billion would pay for reimbursing 15% of premiums and fees paid for crop insurance and NAP coverage.”

“Texas farmers would get the largest share of payments and premium reimbursement under the Democratic plan at $1 billion, followed by Iowa ($860 million), Kansas ($850 million), and Illinois ($785 million), according to a Democratic document that details the FARM payments and premium rebates per state,” Brasher and Albey reported. “…The Democratic proposal also calls for funding orphan farm bill programs at existing levels for one year and creating baseline for the Office of Urban Agriculture.”

Clayton reported that Stabenow said that “the risk right now is that nothing comes together and we just do a one-year extension, and I worry that’s where we’re headed.”