As the Sept. 30 deadline approaches, farmers, ranchers and various agricultural producers are calling on Congress to pass a new farm bill.
But with only 10 days left and peak campaigning underway for the Nov. 5 election, it's increasingly likely that the 2018 Farm Bill will be extended for another year.
In May, the U.S. House of Representatives Agriculture Committee passed a bill that includes several important changes related to hemp products and food stamps. Little progress has been made since then, with no further action taken in the House and the bill not publicly considered in the Senate.
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Why is the Farm Bill taking so long?
The Farm Bill is one of the most controversial bills in the United States. That's because the Farm Bill deals with a wide range of non-agricultural issues, causing major disagreements between Democrats and Republicans.
The most contentious aspect of the Farm Bill debate is funding for the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. The program is a key component of the bill and provides food assistance to about 42 million Americans each month.
The controversy arises because SNAP makes up a significant portion of the Farm Bill's budget (approximately 85%), leading to disagreements over the amount of funds it should receive, eligibility requirements, and the potential for fraud and abuse. It's for a reason.
Proponents of SNAP emphasize its role in reducing food insecurity, especially among low-income households, children, the elderly, and individuals with disabilities. They also argue that SNAP benefits can increase demand for food and agricultural products and stimulate local economies.
Opponents have called for stricter work requirements and spending cuts, suggesting the program has expanded beyond its original purpose and should prioritize promoting self-sufficiency. They believe that imposing stricter eligibility criteria and reducing the number of recipients could streamline the program and result in cost savings. They argue that this will allow them to reallocate more funding to agriculture efforts that are also part of the Farm Bill and are in line with the bill's original focus. .
Additionally, one of the most controversial amendments in the 2018 Farm Bill concerned hemp. Although lawmakers had intended to focus solely on hemp as an agricultural product, specifically fiber, seeds, and extracts such as CBD, previous language allowed for the inclusion of addictive hemp products. Lawmakers did not anticipate that hemp, which contains cannabinoids such as delta-8 and THC-a, would enable a vast array of consumables.
As the use of consumable hemp products proliferates, government officials are growing concerned. In late March, 21 attorneys general from around the country sent a letter to the Congressional Agriculture Committee urging new legislation to clearly define hemp products.
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“As Congress prepares for a new five-year reauthorization of the Farm Bill, we urge our committees to address the critical ambiguities that arose in the 2018 Farm Bill: “We urge you to address the issues that have led to the proliferation of hemp products and challenges state and local governments to address the resulting health and safety crisis,” the letter states. “The Agricultural Improvement Act of 2018 seemed clear in its intent to reintroduce industrial hemp as an agricultural product while preserving the federal government’s existing prohibition on hemp products and their use.
“Nevertheless, bad actors exploited the 2018 Farm Bill’s misinterpretation of the definition of hemp, protection of its derivatives, and federal preemption of state-level regulation of these products,” the letter added.
The new law aims to clarify this by explicitly excluding “intoxicating cannabis”, specifically Delta-8 and THCa products.
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What happens if the Farm Bill is not passed?
If Congress fails to approve a new farm bill by the deadline, the current farm bill will likely be extended for another year, with the bill likely to be reconsidered in 2025. This approach was common in the past to ensure continuity. Support for farmers and related programs.
Farm bills are typically valid for five years, but the 2018 Farm Bill has already been in place for six years. The measure was implemented two years before the coronavirus pandemic hit, which significantly affected the lives of millions of people and increased demand for government aid across the country.
Regardless of whether an extension is enacted, most items produced in 2024 will continue to be covered through their respective sales years that run through the summer or fall of 2025. This means farmers will continue to receive support for crops harvested in 2024. If no new legislation is enacted or existing legislation is not extended.
However, there are still some significant concerns.
For example, dairy products are the first products affected by the new year starting January 1st. Without a new farm bill or extension, dairy farmers could face a cash crunch as early as the new year.
Another concern is the Commodity Credit Corporation (CCC). If Congress extends the current Farm Bill, CCC funding would likely continue uninterrupted, ensuring farmers receive the assistance they need. However, if the Farm Bill expires without an extension, CCC funding could be delayed until 2026, potentially creating financial problems for producers.
SNAP benefits, on the other hand, are covered by mandatory spending separate from the Farm Bill. This means that even if the Farm Bill is not renewed, SNAP benefits will not be immediately terminated and will continue as usual.
Regarding potential changes to cannabis production, the Texas Legislature is also considering banning Delta-8 and THCa products. If the Farm Bill is not passed this year, the state Legislature will likely move to ban these products during the 2025 session regardless.
What does the Farm Bill include?
The Farm Bill is a $1.5 trillion program, and it goes beyond just crops and livestock. In fact, it affects everyone in some way, whether through school meals, government aid, or support for natural resources such as forests.
The Act is divided into 12 sections or titles. Each title covers a different aspect of agriculture and related sectors. A summary of each title is as follows.
Products: Covers price and income support to farmers producing nonperishable crops, dairy products, and sugar, as well as agricultural disaster assistance. Conservation: Includes working land natural resource protection programs, land clearance and easement programs. Trade: Covers food export subsidy programs and international ones. Food aid. Nutrition: Includes SNAP and other nutrition programs to help low-income Americans and school lunches. Credit: Focus on federal loan programs that help farmers access financial credit. Rural Development: Supporting rural economic growth through business and community development. , rural housing and infrastructure. Research, Extension, and Related Matters: Funds farm and food research, education, and extension programs. Forestry: Work on forest-specific conservation programs. Energy: Encourage biofuel production, renewable energy installations, and energy-related research. Horticulture: Includes farmers market programs, research funding for horticultural crops and organic farming initiatives. Crop insurance: Provides subsidies for crop insurance premiums and supports the development of insurance contracts. Others: beginners, socially disadvantaged people, and seasoned farmers. Agricultural labor safety. Workforce development. and livestock health.
What are some of the changes recommended in the new draft Farm Bill?
There are some pretty significant changes in the first draft of the new Farm Bill. Some of the key changes in the proposed draft and their respective chambers are:
SNAP Cuts (House): This proposal suggests keeping the thrift food program in place without accounting for inflation adjustments, which could lead to about $30 billion in cuts to SNAP funding over the next 10 years. Over time, these reductions will grow, making SNAP benefits less appropriate. Increase in Price Loss Coverage (House of Commons): The base price for price loss coverage will increase by 10% to 20% depending on the commodity, as well as the Agricultural Risk Coverage Program and Crop Insurance. Reallocating Conservation Funding (House): Incorporating conservation funding from the Inflation Control Act into the bill, the House proposes to remove restrictions that limit funding for climate-smart practices. Instead, funds would be reallocated to modify the sanctuary program and funds for feral pig eradication would be reauthorized. A new forest conservation easement program would also be created. Support for Underserved Producers (Senate): Senate bill expands financial support and price loss compensation to underserved producers (nonmen and communities of color) It is intended to. The Senate would also increase price loss compensation by just 3 to 5 percent. Improving Rural Child Care (Senate): Prioritizes projects for rural child care facilities. Environmental Quality Incentive Program Update (Senate): Expands the purpose of the Environmental Quality Incentive Program. “Promote environmental quality and climate change adaptation and mitigation as goals compatible with agricultural production and forest management, and comply with local, state, and national regulatory requirements for climate change adaptation, mitigation, and resilience.” “and providing flexible support to address climate change.” Producers need to adopt and maintain conservation practices that sequester carbon, increase drought resilience, reduce greenhouse gas emissions, and conserve energy while sustaining food and fiber production. ” Farm Transition (House): Based on a bipartisan bill by Rep. Carabeo, D-Colorado, that would reauthorize the Farm Transition Commission and address its needs and improvements for 2050. Farmland Tracking (House): Adjusts reporting requirements within the Agricultural Foreign Investment Disclosure Act to enhance oversight of acquisitions of U.S. farmland by Chinese and other foreign entities.
This story has been updated with additional information.
