The salient question in farm bill negotiations is how large an increase to allow for so-called reference prices that trigger crop subsidy payments, said Agriculture Secretary Tom Vilsack on Thursday. When that issue is resolved, it would be “relatively simple” to wrap up work on the legislation this year after months of deadlock, he said.
If the four Democratic and Republican leaders of the Senate and House Agriculture committees can agree on certain elements of the farm bill soon, Congress could vote on it after the Nov. 5 general election. Farm groups say an increase in reference prices is imperative because of high production costs. SNAP funding and climate mitigation are also areas of disagreement.
“The question is, ‘How much?’ and, ‘Where does the money come from?’ ” said Vilsack during a teleconference, referring to higher reference prices. “I think that’s the challenge.”
Republicans have proposed a 15 percent increase in reference prices. Senate Agriculture Committee chairwoman Debbie Stabenow suggested “at least a 5 percent increase in reference prices” in a farm bill outline. The Congressional Budget Office said in August that the Republican-written farm bill approved by the House Agriculture Committee was $33 billion over budget because it did not fully offset its increase in commodity outlays.
“I think we can get there if people are practical,” said Vilsack. Either the adjustment in reference prices must be tempered in size or additional funding must be found, he said. Republicans have proposed, and Democrats have ruled out, cuts in SNAP funding.
Also on Thursday, Vilsack announced $35 million in grants to 15 independent meat processors to increase their processing capacity. They were the final awards through the Meat and Poultry Processing Expansion Program, created in 2022. “Through investments like these, USDA is working to give farmers and ranchers a fair chance to compete in the marketplace, which will increase local food options and lower grocery costs for American families,” Vilsack said.
More than $325 million has been awarded through the MPPEP to 75 projects, said the USDA. Overall, $1.4 billion has been invested since 2021 “to support new or expanded small-sized and medium-sized processing facilities and to create a more resilient, diverse, and secure U.S. food supply chain,” it said.