crop subsidies

The lame-duck session of Congress offers a last chance to enact the new farm bill this year, but it would require compromise on a number of nettlesome policy disputes and an agreement among House and Senate leaders on how much to spend, said farm policy experts. The bill could also be sidetracked by overarching issues such as passing a government funding bill, they cautioned.

The Republican-controlled House has not advanced a new farm bill because "they just don't have the votes" to pass a bill that is $33 billion over budget, said Agriculture Secretary Tom Vilsack over the weekend. Senate Agriculture chairwoman Debbie Stabenow was more "practical," he said, by proposing a smaller increase in so-called reference prices and finding the money to pay for it.

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.

With Congress resuming work after its summer recess, Senate Agriculture chairmwoman Debbie Stabenow said she would do "everything in my power to pass a farm bill" this year. Farm-state lawmakers have been deadlocked for weeks over SNAP funding, higher crop subsidy spending, and climate mitigation.

After soaring at the start of this decade, season-average prices for the three major U.S. crops will drop to pre-pandemic levels and stay there for the near term, said a University of Missouri think tank on Thursday. Cattle would be the most notable exception to an overall decline in crop and livestock values.

Republicans are unwilling to compromise on SNAP and climate funding in the new farm bill, and as a result, “we’re stuck,” said Senate Agriculture chairwoman Debbie Stabenow. “The only way you get that done is if it’s bipartisan.” Progress on the farm bill has been stalled for months. House and Senate Republicans want large increases in crop subsidy spending, cuts in SNAP funding, and to be able to use climate funding for soil and water projects that do not capture carbon or reduce greenhouse gas emissions.

Except for the “lame duck long shot” of a post-election compromise, the slim chances that Congress will pass a new farm bill this year “have become nonexistent,” said farm policy expert Jonathan Coppess on Thursday. The primary reason is the “long-unspecified demand” by Republicans for higher crop subsidy spending without providing details, wrote Coppess, a USDA official during the Obama era, at the farmdoc daily blog.

The largest U.S. anti-hunger program, SNAP, will cost $59 billion less over the coming decade than thought in February because food prices are moderating, said the Congressional Budget Office. The updated CBO baseline also indicated that estimated savings in the House Republican farm bill were too high and not nearly enough to pay for the plan’s proposed increases in crop subsidy and crop insurance spending.

The House Agriculture Committee is relying on made-up math to pay for a huge increase in crop subsidy and crop insurance spending, said analysts during a think tank discussion on Wednesday. “It makes voodoo economics look great,” said moderator Josh Sewell of Taxpayers for Common Sense, a budget watchdog group.

The Republican-controlled House Agriculture Committee, with four Democratic crossovers, approved a farm bill early Friday that increases crop subsidy and crop insurance spending by one-third, cuts SNAP by $30 billion, and repudiates a Biden administration initiative on climate mitigation. Democrats said the bill has no chance of becoming law and might not survive a vote on the House floor because it lacks bipartisan support. (No paywall)

Row-crop farmers would be able to collect up to $155,000 a year in crop subsidies, a $30,000 increase from the current limit, under the farm bill written by House Republicans and scheduled for a committee vote on Thursday. And, for the first time, the subsidy ceiling, often a lightning rod for reformers, would be adjusted annually for inflation.

House Agriculture Committee chair Glenn Thompson would funnel $10 billion in food stamp cuts into an expansion of trade promotion and horticulture programs as part of the new farm bill, said Republican staff workers on Thursday. One of them called opponents of SNAP cuts “hunger weirdos” who “use poor people as props.” (No paywall)

The farm bill drafted by House Agriculture Committee chair Glenn Thompson could boost crop subsidy spending by $23 billion — 56 percent — above current levels and favor growers in the South over farmers in the North, according to analysts at two Midwestern universities. To offset the cost, they said, reductions may be needed in conservation, crop insurance, or nutrition programs.