Conservation, Loan Rates and Insurance: 3 Farm Bill Topics Gain Traction
The Senate Committee on Agriculture, Nutrition and Forestry met in early May at Michigan State University to officially open the floor for the 2023 Farm Bill.
Throughout the hearing, participants mainly spoke to what U.S. Sen. Stabenow (D-MI) considers to be the biggest issue at hand—establishing needed changes to foster a “resilient and sustainable food supply chain” following the Russian invasion of Ukraine, and the ongoing pandemic.
To make these changes, participants and senators at the hearing agreed the 2023 Farm Bill should embellish elements in the current farm bill and address new topics.
1. Bolstered conservation practices
USDA has been granted a budget of $195.9 billion for fiscal year 2023, which is $10.2 billion lower than 2021’s budget.
These cuts couldn’t come at a worse time, as many farmers are already outpacing previously established programs, according to Michigan local, Jake Isley of Stewardship Farms.
“Between 2010 and 2020, just 31% of farmers who applied to EQIP and 42% of those who applied to CSP were awarded contracts,” Isley said. “We need to adequately fund these programs and ensure they are flexible enough to accommodate this country’s needs.”
Producers who are awarded this funding aren’t given a fair shot, according to Michigan Dairy Farmer Ashley Kennedy. In her experience, these programs are “messy” and require more boots on the ground.
“From my view, USDA needs to hire more engineers to get through the massive backlog of projects and needs to find out how to keep the people already there,” Kennedy said.
2. Crop insurance provisions
The hearing hosted a crowd with a consensus to maintain and amplify standing crop insurance legislation. However, some testimonies shed light on areas that could use improvements.
Affordable coverage is Isley’s biggest concern. He says with dramatic increase in input costs, he “cannot afford to have the crop insurance premium subsidy reduced in the next farm bill.”
3. Loan rate revisions
In April, the Biden administration proposed $500 million in farmer aid to mitigate disruptions due to “Putin’s war, not sanctions,” according to President Biden.
Outlined in the proposal, wheat loan rates would increase from $3.38 to $5.52 for 2022 and 2023 crops. Similarly, Soybeans would move by 40%, shifting prices from $6.20 per bushel to $8.68.
Jim Wiesemeyer, ProFarmer policy analyst, says the last farm bill rejected calls to action in a 12-month commodity loan program. He says this bill is different because it’s on a crop-by-crop basis.
“Higher loan rates for some crops versus others will raise an equity debate in the farm bill process,” he says. “This could be used by some lawmakers to boost loan rates permanently in the next farm bill.”
Whispers of a one- or two-year farm bill extension have been shared on The Hill, according to Wiesemeyer. No official word has confirmed this rumor as the next farm bill hearing maintains its scheduled date in Arkansas.
