House Releases Draft Farm Bill Text
Interesting reading released Friday, as House Ag Chair GT Thompson released 942 pages of draft bill text encompassing the proposed $1.5 trillion Farm Bill. The House Ag Committee is scheduled to mark up and vote on the package May 23.
Highlights of the House’s version of draft farm bill
- 10 – 20% increase in the statutory reference price for covered commodities in the PLC and ARC programs. Corn would increase from $3.70/bu to $4.10/bu and soybeans from $8.40/bu to $10.00/bu. Current reference prices were established under the 2014 farm bill and have not been increased for inflation.
- Enhancements to dairy programs, including increases in the cap on Tier 1 limits for Dairy Margin Coverage to 6 million pounds, and restores a “higher-of” formula for pricing of fluid milk until updates to the Federal Milk Marketing Order are ratified.
- Reallocates funding from Inflation Reduction Act into Conservation Stewardship Program and Environmental Quality Incentives Program.
- Incentivizes enrollment in CRP.
- Updates the SNAP program to include more promotion of lifestyle choices related to healthy eating and behaviors as well as modernizing distribution of food programs, all while continuing to support families in need.
- Increases in financing limits for producers unable to obtain credit from a traditional financial institution, including continued resources for new, young, beginning, and veteran farmers.
- Support for rural broadband infrastructure.
- Support for expansion of precision agriculture to improve sustainability.
- Enhancements to programs to support rural health, childcare, and workforce development.
- Increased access to Rural Energy for American Program (REAP).
- Expansion of crop insurance premium assistance to beginning and young farmers as well as increased premium support to 90% for whole farm revenue protection.
Opposition to new bill continues
The House’s version expects opposition in the Senate as Democrats have already pointed to contested items. For example, the House proposal includes a roughly $30 billion SNAP cut over the next decade. Environmental groups also oppose the reallocation of funds from the Inflation Reduction Act. The current farm bill expires on September 30.
Expect an action-packed summer as both houses of Congress work toward passage of a new bill.
Kelly Jackson Hardy is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers, privately-held elevators and supply dealers, and cooperatives. Kelly is a principal with CliftonLarsonAllen in Princeton, Illinois, as well as a regular speaker at tax and estate planning seminars. Kelly was raised on a hog, row crop and cattle farm in central Illinois and has been involved in the ag industry her entire life. Kelly, her husband, and two sons are active in 4-H and operate a small feeder calf operation and pumpkin business.