Farmers are currently focusing on three major priorities:
1. Disaster relief for 2023 and 2024 losses, exacerbated by severe hurricanes in the Southeast
2. Economic assistance for the 2024 crop year
3. Completion of a new farm bill to provide greater certainty for the future
The second priority is gaining momentum with the introduction of the “FARM Act” by Rep. Trent Kelly (R-Miss).
Details about the FARM Act. The Farmer Assistance and Revenue Mitigation Act (FARM Act) aims to provide emergency assistance to producers of eligible commodities for the 2024 crop year. Key features include:
• Eligibility: Crops such as barley, corn, cotton, dry peas, grain sorghum, lentils, chickpeas, oats, peanuts, rice, soybeans, other oilseeds, and wheat. (Some combination of purchases, block grants, or per acre payments for non-PLC/ARC eligible crops.)
• Payment formula: (Projected Cost - Projected Returns) x Eligible Acres x 60% = Total Payment.
Administrative Provisions:
• Payment limitations based on income derived from farming, ranching, or forestry
• $175,000 limit for those deriving less than 75% of income from these activities
• $350,000 limit for those deriving 75% or more of income from these activities
The FARM Act has garnered endorsements from various agricultural organizations, including the American Farm Bureau Federation and National Cotton Council. Rep. Kelly is currently seeking cosponsors for the measure, with a deadline of 9 a.m. ET, Friday, Oct. 25, for original co-sponsorship.
Disaster relief and farm bill progress. Lawmakers are also considering an ad hoc relief package for 2023 and 2024 production losses, aiming to improve upon the implementation of the Emergency Relief Program (ERP) for 2022. As for a new farm bill, despite challenges, there is still opportunity to pass a five-year omnibus bill that strengthens the farm safety net, particularly under the commodity title and crop insurance.
