One of the most influential policies on agriculture is the farm bill. The current farm bill will likely be renewed in 2018. Because the Republican party has a slight majority in both houses, the development, approval and implementation of the next farm bill is “likely to be a smoother process than the two-year process of the previous farm bill,” according to a recent Rabobank report.
However, given President-elect Donald J. Trump continues to advocate reductions in regulation, there’s also a good chance of changes to the programs included, Rabobank argues. The next farm bill will also likely include a revision of crop programs that reflects currently tight row crop margins.
“Due to the challenges U.S. farmers are currently facing, the next congress and administration will need to begin setting policy objectives and direction as soon as possible,” the report says.
Under the Trump administration, Rabobank predicts the farm bill will shift away from conservation to focus more on business sustainability.
“Increasing the budget for the Conservation Reserve Program is expected to become a key issue, along with an adjustment to the revenue support programs, including crop insurance,” the report says.