Livestock and the Farm Bill

Every five years Congress passes legislation that sets national policy on agriculture, nutrition, conservation and forestry. The first real farm bill was the Agricultural Adjustment Act of 1933, part of the government’s New Deal response to the Great Depression, following a decade of failed efforts to address low crop prices after World War I. The original goal was to raise prices for farmers to a level at ‘parity’ with 1910-1914. Over the 18 farm bills that have been passed since 1933, various provisions and programs have been added including those related to crop insurance, conservation and nutrition. Livestock, though, has had a limited place in all of these farm bills, including the most recent version, the Agriculture Improvement Act of 2018 (PL 115-334), set to expire in 2023.  

This Market Intel will help readers better understand the livestock-related provisions scattered through the farm bill, what they do for U.S. livestock producers, and other risk management tools that are also available outside of the farm bill. 

What’s in the Farm Bill for Livestock Producers

Provisions related to livestock inspection restrictions first appeared in the farm bill in 1996 under the Miscellaneous Title. In 2008 livestock was given its own title, Title XI, but was moved back under Miscellaneous in 2018. The 2018 farm bill did very little to expand livestock provisions under the Miscellaneous Title.

In 2014, three livestock-related programs were permanently incorporated as supplemental disaster programs under Title I, which covers commodity programs. This title provides certainty and predictability to eligible producers by reauthorizing and improving commodity, marketing loan, sugar, dairy and disaster programs. The three livestock programs introduced in the 2014 farm bill are:

• Livestock Forage Disaster Program (LFP)
• Livestock Indemnity Program (LIP)
• Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP)

For more details on these programs, please see our Market Intel, Revisiting Disaster Programs in the Farm Bill.

Title XII Subtitle A: Livestock

Livestock does exist in the Agricultural Improvement Act of 2018 as subtitle A under Title XII, also known as the Miscellaneous Title. Historically, the Miscellaneous Title has included a variety of provisions and has served as an incubator for programs to grow into their own titles.

• Title XII Subtitle A: Livestock
  • Prior to the 2018 farm bill, the Animal Health Protection Act (AHPA) contained provisions to prevent, detect, control and eradicate diseases and pests to protect animal health. The 2014 farm bill (PL 113-79) established a National Animal Health Laboratory Network to develop and enhance national veterinary diagnostic capabilities, with an emphasis on surveillance planning, vulnerability analysis, and technology development and validation. Appropriations were authorized at $15 million per year for fiscal years 2014-2018.
  • The existing National Animal Health Laboratory Network (NAHLN) authority was revised to also establish the National Animal Disease Preparedness and Response Program (NADPRP) and the National Animal Vaccine and Veterinary Countermeasures Bank (NAVVCB). These three programs will improve how the U.S. protects against, prepares for, and responds to animal and zoonotic disease outbreaks, including foot-and-mouth disease. Commodity Credit Corporation funds of $120 million are provided for fiscal years 2019-2022, of which $20 million is reserved for the NADPRP, and $100 million is to be allocated among the NAHLN, the NADPRP and the NAVVCB. For fiscal year 2023 and each year thereafter, the bill provides $30 million of Commodity Credit Corporation funds, $18 million of which is reserved for the NADPRP, and $12 million allocated among the NAHLN, the NADPRP and the NAVVCB. Additionally, the authorization of appropriations for NAHLN is increased to $30 million per year for fiscal years 2019-2023. An authorization for appropriations is established for the NADPRP and the NAVVCB for such sums as are necessary for each of fiscal years 2019-2023.
  • The 2018 farm bill also provides for a USDA study on the feasibility of establishing a Livestock Dealer Statutory Trust, including analysis of the potential impacts a trust would have on livestock producers, dealers, markets, financiers and other parties in the livestock sector. Livestock dealer insolvency can result in substantial unpaid sums to producers and auction houses. The establishment of this trust ensures that all cash sellers of livestock have recourse to obtain payment in the case of a dealer bankruptcy. The American Farm Bureau Federation has strong policy supporting these changes and encourages USDA to stay engaged with stakeholders should further revisions to this proposal be warranted. For more information and AFBF’s comments please follow this link.