The year-end funding bill congressional leaders released late Tuesday includes nearly $21 billion to help farmers recovering from natural disasters and another $10 billion in economic aid to crop producers.
Editors note: This story was originally published on Dec. 18 but this aid package for farmers was included in the final Continuing Resolution to fund the government that passed on Dec. 21.
By Chris Clayton, DTN Ag Policy Editor
Congress on Tuesday released the details of a disaster package that includes nearly
$31 billion for farmers.
The year-end funding bill includes nearly $21 billion to help farmers recovering from
natural disasters and another $10 billion in economic aid to crop producers.
Congress has released the full bill text of a continuing resolution to fund the federal
government through March 14. The bill adds roughly $100 billion overall for disaster aid.
The bill also includes a one-year extension of the 2018 Farm Bill through the end of
September.
In another provision, the bill solves a major demand problem for the ethanol industry by
tweaking language to allow year-round sales gas blended with ethanol.
Zippy Duvall, president of the American Farm Bureau Federation, said thousands of
farmers had reached out to Congress in recent days requesting aid be included in the
bill.
“There is no doubt in my mind that for many farmers, the critical funding in this bill could
make the difference between planting a crop next year and giving up,” Duvall said.
Rob Larew, president of the National Farmers Union, called on congressional leaders to
pass the legislation. He also urged his members to keep up pressure on lawmakers.
“Family farmers and ranchers cannot afford any more delays, and frankly, neither can
the rest of the country. Congress must see this deal through,” Larew said. “Farmers
don’t get to walk away from their obligations; Congress shouldn’t either.”
Republican lawmakers, especially in the House, were critical of both the spending and
the process behind the Continuing Resolution. Several conservative lawmakers on
Tuesday said they would not back the bill.
Economic aid for farmers
The bill spells out how $10 billion in economic assistance available to farmers should be
calculated.
The USDA will have 90 days after the bill becomes law to make one-time payments to a
producer of an eligible commodity crop. The money would go to crops where the
expected gross return per acre is less than the expected cost of production.
Under the details, the U.S. Department of Agriculture will use the projected farm price
for the commodity contained in the “most recent World Agricultural Supply and Demand
Estimates” published before the date the bill becomes law.
The price would be calculated by a 10-year-yield average for the crop, which is then
compared to the national average cost of production for the crops.
Total payments are capped at $125,000 for farm operations that received less than 75%
of their gross income from farming in the 2020-22 tax years. For producers who made at
least 75% of their income from farming in those tax years, the maximum payment can
go up to $250,000.
Natural disasters
Overall, the USDA will receive about $31 billion to cover crop, livestock and horticulture
losses. Beyond the economic aid, $21 billion would go to help with losses from an array
of natural disasters in 2023 and 2024 — droughts, wildfires, hurricanes, floods,
derechos, excessive heat, tornados, winter storms, freeze events and excessive
moisture.
Among those funds, $2 billion is set aside for livestock producers tied to losses for
drought, wildfires and floods. Assistance could go to the states as block grants and
direct compensation to producers.
The bill also increases payments and losses covered under the Noninsured Crop
Disaster Assistance Program (NAP). Another $220 million is block granted to states to
provide compensation to producers for crop, timber and livestock losses.
Under the Natural Resources Conservation Service, the Emergency Watershed
Protection Program would receive $920 million. The Rural Development Disaster
Assistance Program would receive $362.5 million.
Farm Bill extension
Certain programs such as the Dairy Margin Program are extended through Dec. 31,
2025.
The bill also provides funding for several USDA programs that do not have baseline
funding or authorization without a new Farm Bill.
Some of those programs include the Foundation for Food & Agricultural Research;
scholarships for 1890s institutions and the Urban, Indoor and Emerging Agricultural
Production Research and Extension Initiative.
IRA money at risk
Sen. Debbie Stabenow, D-Mich., the retiring chairwoman of the Senate Agriculture
Committee, said she was pleased economic aid was going to farmers, but she criticized
Republicans for how it was done, calling it “political malpractice.”
Republicans resisted using $14 billion or so from the Inflation Reduction Act (IRA.)
Those funds for USDA conservation programs were tied to using climate-smart
practices to reduce greenhouse gas emissions or sequester carbon.
The funding, if it had been rolled into the extension of the Farm Bill, would have paid for
the $10 billion in economic aid, Stabenow noted. The funds also could have added
nearly $20 billion to the baseline spending allowed for the next Farm Bill, Stabenow
said.
“While I am relieved that we reached an agreement, it’s shocking that Republican
leadership failed to support such a commonsense and bipartisan proposal,” she said.
The Union of Concerned Scientists also noted the move puts those IRA dollars at risk of
being lost if the next Congress repeals the IRA, pointing out that extreme weather
driven by climate change and fossil fuel use leaves farmers vulnerable.
“If Congress really wanted to make farmers more economically resilient while also
investing in the stability of our food system, they should do two things: give farmers the
tools to better withstand and recover from extreme weather and persuade the incoming
administration not to start new trade wars,” said Melissa Kaplan, senior manager of
government affairs for the Food and Environment Program for UCS.
“Across the country,” she added, “eighty percent of people support helping farmers
proactively adapt and protect their land and crops against flooding and drought, rather
than waiting and paying for losses after the fact.”
Chris Clayton can be reached at Chris.Clayton@dtn.com. Follow him on social platform
X @ChrisClaytonDTN
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