Farm bill

Farm equipment sales are slowing alongside the downturn in farm income, creating a headwind to overall U.S. investment activity, said the Beige Book, a summary of economic conditions in Federal Reserve Bank districts. In discussing agriculture, the St. Louis Fed said some businesses were building inventory in anticipation of potential tariffs on imported goods.

Congress should authorize "significant economic assistance" to farmers before the end of this year to offset lower commodity prices and high production costs, said the senior Republican on the Senate Agriculture Committee on Monday. "Federal assistance must support agricultural producers facing market losses and it needs to happen quickly," said Arkansas Sen. John Boozman with Congress scheduled to adjourn in three weeks.

Minnesota Rep. Angie Craig launched a campaign on Monday to be elected the Democratic leader on the House Agriculture Committee, joining two other candidates, California Rep. Jim Costa and Georgia Rep. David Scott, currently the ranking member. Costa and Craig say they will defend SNAP and climate funding in the new farm bill and carry a Democratic message to rural America, a weak spot for the party.

The government would send $2 billion to financially beleaguered farmers almost immediately under a mammoth farm bill proposed by Senate Agriculture chairwoman Debbie Stabenow on Monday — months sooner than the Republican-written bill awaiting a House vote. With only a few weeks left in the congressional session, Republican senators said Stabenow acted too late to enact a new farm bill, already 13 months late.

With little sign of a breakthrough on the farm bill in Congress, farm groups are shifting their attention to a proposed $21 billion bailout bill. Help is needed because high costs and lower commodity prices are sharply eroding farm income, they say.

President Trump rolled up 63 percent of the vote in rural America, a larger margin than in 2016, on the way to winning a second term in the White House on Tuesday. Farm groups offered to work with him on Wednesday to pass the new farm bill, now 14 months overdue, and to bring high costs under control.

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.

Farmer confidence tumbled by 21 percent in the past two months to its lowest level since 2016, with three of every four farmers saying they expect bad times for the agricultural economy in the year ahead, said Purdue University on Tuesday. Producers taking part in the Ag Economy Barometer survey said they were worried about declining income because of low commodity prices and high production costs.

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 time running short for action on the new farm bill, Senate Agriculture Committee chairwoman Debbie Stabenow said on Wednesday that the legislation has to consider public nutrition and agricultural programs equally. While lawmakers have disagreed for months on SNAP funding, higher crop subsidy spending, and climate mitigation, they hope to reach an agreement in the near term.

After seeing record profitability in 2022, the U.S. farm sector is in a downturn for an indefinite period, said a band of agricultural economists on Monday. Congress could feel pressure to provide a bailout to buffer the decline in income, at the same time that producers try to pare their costs, they said at a conference sponsored by the Agricultural Business Council of Kansas City.