farm subsidies

The largest U.S. farm group believes “it makes perfect sense” to combine commodity supports and SNAP in the same piece of big-ticket legislation, said president Zippy Duvall in announcing the American Farm Bureau Federation’s farm bill priorities on Thursday. The AFBF called for higher subsidy rates, at a still-to-be-determined cost, and more emphasis of stewardship on working lands rather than long-term idling of cropland.

Net farm income is at record levels, thanks to high commodity prices, and is expected to remain strong for two or three years, yet farm groups are telling Congress “that existing subsidy programs should be continued, their scope expanded, and federal spending increased” in the 2023 farm bill, said an American Enterprise Institute analyst.

Climate mitigation does not deserve priority over other soil and water conservation goals notwithstanding the $20 billion earmarked for it, said two senior Republicans on the House Agriculture Committee on Tuesday. "I don't feel bound by the amount of funding or the specific program allocation passed in the partisan (climate, health and tax) bill," said Pennsylvania Rep Glenn Thompson, the Republican leader on the committee.

More than 60 percent of consumers across the political spectrum support increasing government support for both farmers and food assistance as a response to inflation, according to a survey released last week by the University of Illinois. Liberals had the highest rates of support for both, with 90.2 percent supporting increased funding for food programs and 85.3 percent supporting increased funding for farmers, the Gardner Food and Agricultural Policy Survey found. Conservatives had lower levels of support for both, but 64.4 percent still supported increased funding for food programs and 66.4 percent, increased funding for farmers.

Billions in taxpayer dollars could be saved over the next decade if the 2023 Farm Bill puts a cap on federal subsidies paid to farmers who purchase crop insurance, according to a special report published Tuesday by the National Sustainable Agriculture Coalition (NSAC).

Nearly one in 10 people worldwide suffer from hunger, an increase of 150 million since the pandemic struck in 2020, and the numbers are sure to worsen, said the annual UN hunger report on Wednesday. “The global price spikes that we are seeing as a result of the crisis in Ukraine threaten to push countries around the world into famine,” said the leader of the World Food Program.

Congress traditionally enacts the farm policy bills covering the gamut from crop subsidies to food stamps at the urging of a coalition of farm, conservation and anti-hunger groups. A former USDA official said the 2023 farm bill could be in peril if there is a repetition of the political turbulence that temporarily derailed the omnibus legislation twice in the eight years.

When crop insurance indemnities and unemployment benefits are counted, the government sent $57.7 billion to farm operations and farm households in 2020, while the pandemic sent the U.S. economy into recession, said a working paper by USDA economists. It was the highest estimate yet of federal assistance to farmers last year and the most inclusive.

U.S. ethanol production plunged 13 percent last year due to the pandemic, costing the industry around $4 billion in sales. But it may recover fully by 2023, on the strength of larger exports and rising domestic use of higher blends of ethanol into gasoline, said the Food and Agricultural Policy Research Institute.

Farmers expect to be paid for climate mitigation, and not at the expense of the traditional farm subsidies, said the president of the largest U.S. farm group during a discussion of President Biden's goal of an agriculture sector that achieves net-zero emission of greenhouse gases by 2050. Other ag leaders on the panel organized by USDA agreed there must be a financial payoff for the voluntary, incentive-based practices espoused by the administration to succeed.

The government will help farmers mitigate climate change by paying them to "put their land in conservation" and plant cover crops, said President-elect Biden, providing some details on his campaign call to offset greenhouse gas emissions from agriculture. The sector accounts for roughly 10 percent of emissions nationwide.

The final coronavirus aid package of the year would direct 3 percent of its $900 billion in funding to food assistance and relief for agricultural producers, according to its Democratic and Republican sponsors. "It's a deal that must come together," said one of the sponsors, Sen. Joe Manchin of West Virginia, on Sunday.