Writing Farm Bill in Time of High Prices Pits Farm Group Wishes Against Budget Realities
Farm Bill Wish List 090622
House and Senate Ag Committee members have a tough job ahead of them writing the 2023 farm bill. They’ll have to balance Republican plans to cut federal spending with desires from farm groups pitching proposals to raise reference prices for commodities, which would require more funds for the farm bill safety net.
History shows writing a farm bill in an environment of strong commodity prices is a challenge. Kevin Scott, American Soybean Association Chairman, says, “Writing a farm bill when prices are good is a little difficult also. A lot of legislators see that you know there’s quite a little money farming right now. However, our inputs and so forth are high so its an easy argument to say we’re not protected quite yet in that part of the farm bill.”
A Republican Study Committee proposed a budget plan to slash federal programs, including farm bill commodity and conservation programs, even crop insurance. Mary Kay Thatcher, Syngenta Sr. Lead Government Relations, says they’re eyeing the deficit.
"One of the toughest things you get a lot of farm groups that say yep we’re gonna go ask for money therefore they’re setting their priorities on having new money," Thatcher says. "Well what happens if there is no more new money then you have to ratchet back everything you’ve asked for? So at the moment it’s a bit of a mess."
It's unclear if the baseline will be helped by the $19.5 billion for conservation in the Inflation Reduction Act. And groups like the American Soybean Association want base acre updates and a higher reference price on soybeans, although they haven’t set that level.
Scott says, “It needs to be higher than where its at. I mean it just does not support us in the ag area. And it hasn’t. I mean we really never dipped into the farm program on the soybean side because of the reference price."
And in an unprecedented move, even cattlemen are coming to the table asking for enhancements to the Livestock Revenue Protection (LRP) program. NCBA President-Elect Todd Wilkinson says, “If we can continue to improve that program it really will help the average cow calf operator because the numbers, you can have one cow, or you can have a large number of animals and be eligible now."
He says they want LRP to it provide the same level of risk management crop insurance does.
Wilkinson says, "If we can get into a level where we can use that to protect the producer from some of these difficult markets where we maybe can’t get into the market timely for the cattle, it really could be an effective tool.”
And when it comes to crop insurance, its one area of the farm bill that continues to have consensus from farm groups and lawmakers regardless of party. So, Thatcher’s confident about preserving it as is, and without caps directed at large farmers.
She says, "You know we’re already seeing ideas to change the premium subsidy so farmers have to pay more but you know if I was thinking optimistically in the farm bill right now I feel very good about where crop insurance is because I think people recognize it’s a pretty important safety net."
Who controls Congress may in the end dictate the tone of the next farm bill. If led by Republicans, it’s expected to look similar to the past two bills, with slight tweaks. Under Democratic control the focus may be on climate.
