By Elizabeth Rembert
The 2018 Farm Bill expired for a second time last month, when the extension ran out on Sept. 30.
Major programs funded through the bill like food assistance and crop insurance are still going. But the bill is stalling out as farmers reckon with hurricanes in the Southeast, wildfires in the West and drought blanketing the Midwest.
That’s on top of federal data that shows farm income is falling for the second year in a row.
Low prices for corn, soybeans and wheat are hitting farmers particularly hard, according to Roger Cryan, chief economist for the American Farm Bureau Federation.
“They’re in the red and next year is looking even worse,” he said. “There’s a call for help right now, for the natural disasters and economic disasters that farmers are facing all over the country.”
Cryan said an updated farm bill would help the agriculture industry through tough weather spells and economic challenges.
“If that had gotten done in 2023, then 2024’s economic crisis would not be nearly what it is now,” Cryan said. “The amount of help that’s needed now would not have been as great.”
Today’s high input costs and low crop prices overpower any assistance farmers get from the old farm bill, according to Cryan. He called the 2018 bill’s reference prices — which trigger payments to farmers when a crop price falls below a certain level — “meaningless.”
“The biggest hole in the 2018 Farm Bill are the reference prices,” Cryan said. “They’re really problematic for farmers, and I’m afraid they may continue through another extension.”
He said he hopes lawmakers can approve a new bill before the year ends, instead of passing another extension.
Until recently, extensions were uncommon over the bill’s 90-year history. Congress has used extensions for three of the past four farm bill updates.
“It’s become a standard thing to not get this done on time,” Cryan said. “It’s unfortunate, because it’s kind of the last big bipartisan thing that gets done in Congress on a regular basis.”
What programs are affected?
The Congressional Research Service reports these federal programs are among those that may have lost funding or authority to operate when the extension expired Sept. 30:
- Some conservation programs, such as the Conservation Reserve Program
- Some animal health programs, such as the National Animal Disease Preparedness and Response Program, the National Animal Vaccine Bank and the National Animal Health Laboratory Network
- Some programs aimed at supporting biofuels, such as the Biobased Markets Program and the Bioenergy Program for Advanced Biofuels
- Some programs for beginning and underserved farmers, such as the Farming Opportunities Training and Outreach Program — including the Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers Program, and the Beginning Farmer and Rancher Development Grant Program
Kalee Olson is the policy manager for the Center for Rural Affairs, a nonprofit that focuses on rural communities and farmers.
Some U.S. Department of Agriculture programs the center participates in — including the Farming Opportunities Training and Outreach Program— lost funding or authority when the extension expired. But Olson said the center’s staff hasn't been impacted by the expirations to date.
“They might affect the timeline of a grant cycle, like when USDA staff review grant proposals or when they announce new awards,” she said. “But there’s usually some ebb and flow in these grant cycles either way.”
The impacts haven’t reached the farmers who participate in the programs, according to Olson.
“Fortunately, none of our farmers have been affected by the expiration,” she said. “It’s important that these programs and resources continue for our beginning and underserved farmers, because they really give folks a leg up in this industry.”
Food assistance
The expiration does not affect funding for the Supplemental Nutrition Assistance Program, which takes up about 80% of the bill’s budget and sends out food assistance to more than 42 million individuals per month.
SNAP relies on the federal government’s overall budget, which is currently supported by a continuing resolution that runs through Dec. 20.
But the massive program’s effectiveness is still curtailed by high grocery prices, according to Tim Williams. He’s the government affairs and advocacy officer at Food Bank for the Heartland, which serves Nebraska and western Iowa.
A combination of inflation, pandemic effects and the lingering impacts of the 2019 flood have pushed demand at food pantries to four times higher than 2018 levels, according to Williams.
“The need has been steadily increasing and now it’s higher than it ever was during the pandemic,” he said. “It’s putting a strain on the resources and really overwhelming our pantry network.”
Williams said SNAP is the most effective tool at fighting hunger and empowering people to make choices about their diets. He said a new farm bill with updated support would help with the region’s food insecurity and reduce the burden on food pantries.
“Another extension would keep people where they’re at now,” Williams said. “But we’re arguing for an elevation of benefits to make sure those dollars will stretch to meet high prices where they are.”
What’s next?
Congress could pass another extension of the 2018 Farm Bill or approve new legislation, likely after November’s election. They’ll need to do either before the end of the year to avoid triggering permanent law for commodity support programs, which would make the government subsidize commodities at prices set in the 1940s.
The Farm Bureau’s Roger Cryan called it a “ticking time bomb” that holds Congress accountable for stalling legislation.
“If this drags out too far, milk would get support at levels that are extremely high. The government would be purchasing milk at a price that’s double the current price,” he said. “It would disrupt markets.”
Lawmakers in the House of Representatives called the farm bill a “must-pass item” in a September letter to Speaker Mike Johnson. Out of 220 House Republicans, 140 signed onto the letter calling for a floor vote on new legislation in a lame duck session following the November elections.
House Democratic leader Hakeem Jeffries also listed the farm bill as one of his top three priorities for post-election legislation.
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