FARM BILL RENEWED
ROB MILLS
PERRYVILLE, MISSOURI
At the end of a Congressional term that saw the dysfunction and animosity of the modern Congress, bleed over into the once cordial land of agricultural legislation, the 2018 Farm Bill was renewed for a second time, giving the U.S. House & Senate until September 30th to, as Gerry Rafferty once sang, “get it right this time.”
By a 336-34 margin in the House, and an 85-11 vote in the Senate, Congress renewed a bill that was originally passed over six years ago, filling the pre-Christmas renewal with the kind of goodies that will keep their constituents from revolting…for now.
President Joe Biden signed the measure into law on December 23rd. The road to passage saw an unexpected intervention by President-elect Donald Trump into the debate. The President-elect instructed House Speaker Mike Johnson to include in the bill a provision that would have extended the debt ceiling for two years. Trump allies such as Elon Musk took to social media to support Trump’s proposal.
Trump was clear in his opinion of the Continuing Resolution. "Republicans want to support our farmers, pay for disaster relief, and set our country up for success in 2025. The only way to do that is with a temporary funding bill without Democratic giveaways, combined with an increase in the debt ceiling. Anything else is a betrayal of our country,” the president-elect said.
But the measure was voted down 235-174, with 38 Republicans voting against the amended bill.
One of the Republican House members voting against Trump’s proposal was Eric Burlison, (R-MO) who told “The Hill” that “I think that it’s shameful that people celebrate DOGE [Department of Government Efficiency] coming in, and yet we’re going to vote for another billion dollars to be added to the deficit.”
The Continuing Resolution (CR) that was passed contains the 2018 Farm Bill framework, with $30 billion dollars of one-time funding for agriculture included in the package. $10 billion dollars will go to immediate financial relief for farmers, with the remaining $20 billion earmarked for disaster relief aid.
The Farm Bill has been renewed for one year. But it is only funded through March 14th, when the CR will expire. Congress has not passed a complete, twelve-month fiscal year budget since 1996.
Reaction to the renewal by the ag community was positive, mixed with relief and warnings the process is a long way from being finalized. American Farm Bureau President Zippy Duvall said “The Farm Bureau thanks the House & Senate for finding common ground and passing this legislation that will…help farmers who are struggling with natural disasters, high supply costs and out of reach interest rates. “Duvall went on to say the CR was only a “temporary fix.”
Texas Farm Bureau President Russell Boening said “a large segment of Texas agriculture was facing catastrophic consequences if Congress didn’t pass this legislation. The Texas Farm Bureau is thankful Congress passed the Continuing Resolution.”
Instead of thanking Congress, some observers had a different take on how the new extension should be viewed. Tim Borman, News Director of WNAX Radio in Yankton, South Dakota, recalled a conversation he had with Dusty Johnson (R-SD) after the general election about the fate of the Farm Bill. “Dusty said it was time Congress started acting like big boys and girls and quit playing games,” Borman recalled, noting the South Dakota Republican said, “everything goes back to square one next session without a deal.”
According to one official, “square one” was avoided when Congress began to feel angry voters breathing down their necks. Walt Schweitzer, President of the Montana Farm Bureau said the House & Senate acted out of self-interest, not public service, in passing the CR. He told Missoula, Montana’s KPAX-TV that “they had no intention to pass an extension until the heat was on.” Schweitzer said his Farm Bureau alerted their members to storm Congress with phone calls & emails to get their point across. He went on to say that “too many farmers are struggling. We must keep the pressure on.”
Former McDonald’s CEO Ed Renzi told Fox News there are systemic problems in U.S. agriculture that can’t wait to be fixed. “There are serious issues facing American farmers. Productivity is down, the surge in energy prices has dramatically affected costs. The American people don’t understand how oil prices have hurt agriculture.”
Texas Farm Bureau President Russell Boening bluntly stated, “economic assistance to farmers is not a cost, it’s the future of food security.”
Money from the one-time aid package is currently being distributed to farmers through late March. Amounts ranging from $125 thousand to $250 thousand dollars are available to farmers based on their operational costs.
What follows next is the inauguration of a new, albeit familiar President, and the implementation of his policies. Reports out of the Trump camp suggest he intends to remove $20 billion dollars from the Biden Inflation Reduction Act, that is meant to partially fund the next Farm Bill. Talk of tariffs being placed on U.S. trading partners is a concern to some Trump supporters. Scott Van Der Wall of the American Farm Bureau said he “doesn’t like the hammer-tariffs approach” the President-elect is threatening to use in international trade.
But others argue nations like China, Canada and the European Union have placed heavy tariffs on the U.S., ranging from 25% to 300%, and that retaliation is justified. Economists openly question if the next Trump Administration can financially afford to underwrite farmers who would be hurt by a tariff war. They ask whether the U.S., currently $36 trillion dollars in debt, can afford another farmer bailout due to tariffs. Congress approved $37 billion dollars in 2018 & 2019 for financial aid to ag producers affected by President Trump’s tariff policies during his first term.
When Congress convenes in January, the same issues that stalled out Farm Bill negotiations in 2023 and 2024 are still seated at the negotiating table. The major sticking point is the Republican desire to cut SNAP benefits by as much as 25%. Democrats have repeatedly described this proposal as a “non-starter.”
House Agriculture Committee Chairman Glenn Thompson (R-PA) says he wants “a five-year bill that minimizes the need for annual economic aid,” calling the one-year renewal, “an important financial bridge that will help mitigate the severe economic downturn experienced by the agricultural economy.”
Factoring into the Farm Bill debate more than any specific issue will be the presence of Donald Trump as President. Recent statements such as his desire to explore the purchase of Greenland by the United States, or possible overtures to Canada about becoming the 51st state, are a reminder of the “out of the box” way that Trump approaches issues.
Despite the rancor that has dominated the Farm Bill debate in recent times, Sen. Eric Schmidt (R-MO) says he’s still confident Congress can pass a new, five-year law in 2025. Schmidt told the “Better, Cleaner Now” podcast that he has a different take on the trouble passing a new ag bill. “I feel it’s still one of those pieces of legislation that is more regional in scope than partisan,” the freshman Senator said, signaling his belief that 2025 will bring forth a new Farm Bill. “It’s obvious there’s a desire to do something,” Schmidt said.
Optimism doesn’t abound in the District of Columbia concerning passage of a new Farm Bill, but pragmatism isn’t in short supply. The sentiments of Capitol Hill staffers as the new Presidency approaches echo the old saying “if it looks like a duck, quacks like a duck, it’s a duck.”
As one person said seemingly speaking for the many, “with Trump as President, all bets are off.” ∆
ROB MILLS: Staff writer MAFG