The House of Representatives released its Continuing Resolution (CR) text today, which includes:
- A one-year extension of the 2018 farm bill
- Around $10 billion in farmer economic aid
- $21 billion in ag disaster funding for 2023 and 2024, which is part of the $100.4 billion to help the hurricane-stricken Southeast
- Year-round E15 sales, which is a major victory for the corn and ethanol industries
The plan will offer credits to small refiners that petitioned for exemptions from the Renewable Fuel Standard (RFS) mandates (2016 to 2018 compliance years) but were denied or had pending petitions as of Dec. 1, 2022. The RFS requires refiners to blend biofuels such as ethanol into gasoline or purchase compliance credits.
The provision would override a previous U.S. government decision allowing year-round E15 sales only in eight Midwestern states (set to begin in 2025).
Extension of Orphan Programs in 2018 Farm Bill
There also appears to be an extension of orphan programs in the 2018 farm bill extension and a permanent 1890s scholarship program. The icing on the cake is a four-year extension of SNAP fraud via the skimming reimbursement language.
Orphan programs are ones that were authorized in the 2018 farm bill but did not have funding beyond a specified year. The extension provides $177 million of new mandatory funding for programs that did not have a budget baseline. This ensures these programs can continue to operate during the extension period.
The 1890s scholarship program provides scholarships for students attending 1890 land-grant universities, which are historically Black colleges and universities that were established under the Second Morrill Act of 1890.
The SNAP Fraud Reimbursement extension is the continuation of reimbursements for stolen Supplemental Nutrition Assistance Program (SNAP) benefits. This provision protects SNAP recipients from losses due to benefit theft via card skimming, cloning and other similar methods. States will continue to be required to replace stolen benefits under this measure.
One source said, “Good policy would be emphasizing the need for states to transition to more secure measures for SNAP recipients, including stronger identity verification practices.”
Of Note
Senate Ag Chairwoman Debbie Stabenow (D-Mich.) did not get her wish to move conservation/climate funding into a one-year extension of the 2018 farm bill. That discussion will occur next year.
Economic Aid and Disaster Funding
Disaster aid for crop losses due to natural disasters for 2023 and 2024 will total $21 billion.
The discussions for economic aid centered on a $10 billion package to help farmers cope with price declines and rising input costs. House Agriculture Chairman GT Thompson (R-Pa.) indicated that $10 billion is the minimum he would accept. He mentioned Republican support for reallocating conservation program funds from the 2022 legislation into the farm bill baseline, but that Republicans are disputing the “guardrails” that require funds to support “climate-smart” projects.
Thompson also noted concerns that some critics want to ensure President-elect Donald Trump would have access to funds to compensate farmers for potential retaliation stemming from new Trump import tariffs.
Year-Round E-15
Year-round sales of E15 ethanol has been a long-standing goal for corn growers and ethanol producers, particularly in states such as Iowa, Illinois and Minnesota where a significant portion of corn production goes into ethanol.
Currently, E15 is available at more than 3,200 gas stations in the U.S., indicating room for growth (there are more than 196,000 fuel stations in the U.S.). About 95% of model year 2024 vehicles are explicitly approved for E15 use by manufacturers.
The actual increase in ethanol usage would likely be gradual as E15 adoption expands. While the theoretical maximum ethanol usage through year-round E15 sales could reach 20,586 million gallons annually, the actual increase would depend on factors such as consumer adoption and infrastructure development — separate fuel handling and storage for E15.
Now What?
A vote in the House won’t happen until at least Thursday night if House Speaker Mike Johnson (R-La.) sticks to his plan to honor the rule giving members 72 hours to review the bill.
Other House Happenings
House Democrats removed Rep. David Scott (D-Ga.) as their senior Agriculture Committee leader after he received just 5 votes in Monday’s influential steering panel vote. Rep. Angie Craig (D-Minn.) emerged as the frontrunner with 34 votes, while Rep. Jim Costa (D-Calif.) trailed with 22 votes. Craig now heads into Tuesday’s full caucus vote, seeking additional support. Craig plans to rally House colleagues for the final vote. Meanwhile, Costa vowed to keep pushing and will try to supplant Craig in the full caucus. Lawmakers had anticipated Scott’s ouster amid growing skepticism of his leadership — Scott has dropped out of the race.
Craig indicated part of her pitch to the panel was that there are no other Ranking Members for Democrats from the U.S. Midwest.
“There’s not a single ranking member from the middle of the country right now, and that was certainly part of my pitch to my colleagues, is that if we want to represent this whole country, then we need ranking members and leaders in the Democratic Party who are from the whole country,” she stated.
Craig came into Congress in 2019 while Costa and Scott were elected in the early 2000s.
GOP Eyes Strategic Appointment to Boost House Majority
Republicans may have found a way to temporarily expand their narrow House majority: appointing a Democrat to the Trump administration. Rep. Jared Moskowitz (D-Fla.) is reportedly being considered to lead the Federal Emergency Management Agency (FEMA) next year. The move would leave Democrats short a vote for weeks, bolster the GOP’s edge, and possibly help Republicans flip Moskowitz’s seat. Moskowitz, who previously served as Florida’s emergency management director under Gov. Ron DeSantis, could gain significant recognition if he pursues a 2026 gubernatorial bid. While his office and House Democratic leadership declined to comment, the appointment’s political ramifications are being closely watched ahead of Monday’s internal party elections.
Take our Poll: Do you think Congress should pass emergency relief for farmers in the CR? You can voice your opinion in our AgWeb poll.
