As Congress considers a military funding package, relief for farmers might become a key component of the legislative equation. More than 50 farmer groups are asking President Trump and Congress to include aid in the package. The letter sites severe weather conditions, the effective closure of the Strait of Hormuz and sustained market pressure as their reasons for additional funding.
The farm groups also ask for strong Renewable Volume Obligations under the Renewable Fuel Standard, year-round E-15 and opportunities for farmers in the 45Z Clean Fuel Production Credit. Republican lawmakers are reportedly debating a plan to include $15 billion in relief for producers to mitigate impacts stemming from the conflict in Iran. The proposal, first reported by Politico, appears to be gaining traction in the federal government.
“We appreciate your longstanding commitment to rural America. Now is the time to ensure that American agriculture can weather this period of extraordinary strain. Without timely assistance, continued losses risk accelerating farm closures, reducing domestic production capacity and weakening the ability of farmers and ranchers across this great nation to provide food, clothes and fuel for the American people,” the letter said.
USDA Evaluating Implementation Strategies
Richard Fordyce, USDA Undersecretary for Farm Production and Conservation, says members of Congress reached out to the department about a month ago to seek technical advice on implementing additional assistance.
“We do hear some signals that there is a desire to offer some additional assistance,” Fordyce said on “AgriTalk” recently. “When I say technical assistance it would be Congress, either the Senate or the House, actually proactively reaching out to us and asking us questions about what would be the best way to implement this.”
For quick dispersal, Fordyce says USDA suggests Congress should model new payments after the Farmer Bridge Assistance Program.
“We’ve had those conversations. I don’t know where they are at this point, but I do hear signals that there’s still a desire to do something. I just don’t know what that number would look like,” he expains.
Economic Concerns Over Ad Hoc Assistance
While the potential for aid is welcomed by many in the industry, some agricultural leaders express caution regarding the long-term effects of ad hoc payments.
Matt Perdue, president of the North Dakota Farmers Union, says he supports additional aid because many farmers require the funds to survive the current year. However, he remains concerned about how payments influence the broader agricultural economy.
“I think long-term we have to look at the ways in which ad hoc assistance and the farm safety net are really fueling higher land prices, really fueling higher input costs,” Perdue says.
Perdue notes while farmers are currently battling immediate financial pressures that aid could alleviate, the industry must eventually address these underlying long-term challenges.
“Short-term, the problem is how do we make sure producers have the money they need to get through 2026. The long-term problem is how do we make sure we have a safety net that really reflects the reality that is 2026, 2027 and the years ahead?” Perdue says. “I think both of those are important questions, and we’re wrestling with both at the same time.”
Status of Farmer Bridge Assistance Program Payments
Fordyce says USDA has received close to 400,000 applications for the Farmer Bridge Assistance Program. Of that about an eighth were submitted electronically.
“We’re getting close to $9 billion obligated in that program out of a total of $11 billion,” he adds.
Deadline to apply for the Farmer Bridge Assistance Program: April 17.
