Farm bill

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.

U.S. net farm income will be a much better than expected $140 billion this year, the fourth-highest total on record, forecast the Agriculture Department on Thursday. Production expenses are down for the first time since 2018, while farmers are pocketing increased revenue from eggs, cattle, milk, and broiler chickens.

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.

The Republican-written House farm bill is $33 billion over budget and fails to pay for its large increase in crop subsidies, said congressional scorekeepers in an official cost estimate. House Agriculture chairman Glenn Thompson, who brushed aside earlier warnings about over-spending, said if the nonpartisan Congressional Budget Office won't change its mind, he would rely on the House Budget Committee to overrule the CBO.

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 SNAP payment error rate ticked upward to 11.68 percent in fiscal 2023, the second straight year of sharply higher post-pandemic error rates, said the Agriculture Department. Farm-state Republicans, who want to cut SNAP spending, said the new farm bill should eliminate any tolerance for overpayments by states, which administer SNAP.

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)

Protracted disputes over SNAP funding are preventing progress on the new farm bill and endangering support for the legislation, said Senate Agriculture chairwoman Debbie Stabenow on Tuesday. The House Agriculture Committee was expected to vote next week on a Republican-written bill that would cut SNAP funding by $28 billion, despite Democratic opposition.