Lingering Issues on New Farm Bill

Despite lawmaker chatter this week about various high-level meetings regarding a new farm bill, the same issues remain.

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Farm bill - capitol - grain system - soybean field - corn field - By Lindsey Pound
(Lindsey Pound)

Despite lawmaker chatter this week about various high-level meetings regarding a new farm bill, the same issues remain: (1) Major policy differences between Republicans and Democrats and (2) House GOP funding issues for its farm bill. There is agreement that a financial/ag disaster aid package is needed. Both issues are being punted until after Nov. 5 elections.

The only way veteran farm bill watchers will up the odds of a new farm bill is if/when Senate Ag Chair Debbie Stabenow (D-Mich.) releases actual text of her farm bill. Only then can key policy differences between the two chambers be worked out. Also, it will be interesting to see how much additional funding Stabenow received for farm bill spending, and where it came from — if we will ever know that before she retires after this Congress.

Meanwhile, USDA Secretary Tom Vilsack said the main issue in farm bill negotiations is determining the size of reference price increases that trigger crop subsidy payments. Once settled, lawmakers could finalize the legislation, which has been stalled for months. Farm groups insist on higher reference prices due to rising production costs, while disagreements over SNAP funding and climate measures persist. Republicans propose a 15%-plus increase, while Stabenow suggests 5%. Vilsack urged practicality, as the House bill currently exceeds the budget by $33 billion. “I think we can get there if people are practical,” said Vilsack. Either the adjustment in reference prices must be tempered in size or additional funding must be found, he said.

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