This blog post is the second of a two-part series analyzing the history of the Farm Bill and the current proposals of a new Farm Bill in the United States Congress. Part one explored the history of agricultural policy in the United States from the early years of the Nation, through the Great Depression and Dust Bowl eras, the modernization in the 1970s and Farm Crisis in the 1980s, and the present era since the mid-1990s. Understanding the history and background of the Farm Bill provides the necessary perspective for analyzing the current proposals and likelihood of Congressional action before the end of the 118th Congress.
On May 21, 2024, Representative Glen Thompson, introduced H.R. 8467 in the House of Representatives. Thompson represents the 15th District of Pennsylvania and serves as the chairman of the House Committee on Agriculture. The bill was referred to the Committee on Agriculture, which held a “markup” hearing on May 23. A “markup” hearing is when a committee goes through each section of the bill to make sure the bill is written in the way desired by the committee. This may include amendments to add provisions, removal of provisions, or changes to the as-introduced language. The Committee on Agriculture approved the bill on May 24 by a vote of 33-21 and reported the bill back to the House. The bill has been sitting on the House calendar since then, with no actions taken since May. The Congressional Budget Office (CBO) released cost estimates on August 2 and November 8.
So, what is in the House version of the Farm Bill? The Committee on Agriculture published a title-by-title overview of H.R. 8467. Each title is a specific section of the bill that covers a specific area of policy. Certain titles have a more direct impact on agriculture than others, and those titles will be covered in this post. Title I is the commodities title, which provides the framework and funding for commodity support programs such as Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC). The bill proposes a 10 to 20% increase in statutory reference prices (SRPs) for commodities covered under ARC and PLC. The current reference prices were established with the 2014 Farm Bill and have not been significantly modified since. Title I also contains a one-time increase in base acres that allows producers currently not enrolled in ARC or PLC the opportunity to enroll their acres. The rest of Title I contains provisions relating to sugar production and various indemnity programs. The CBO estimate from November 8 projects approximately $38 billion will be spent on Title I programs from 2025 through 2034.
Title II covers conservation programs such as the Conservation Reserve Program (CRP), the Environmental Quality Incentive Program (EQIP), and the Conservation Stewardship Program (CSP). The House bill reallocates funding provided under the Inflation Reduction Act (IRA) of 2021 to existing conservation programs and some new programs. The CBO estimates approximately $6.7 billion will be spent on Title II programs over the next ten years. Title III covers trade policy and programs designed to help export U.S. agricultural products to foreign markets. The main expenditure in this title is a doubling of funding for the Market Access Program (MAP) and the Foreign Market Development Program (FMD). The CBO estimates that Title III programs will cost approximately $2.4 billion over ten years. Title XI covers federal crop insurance programs. The House bill establishes an advisory committee to develop crop insurance programs for specialty crops, and reforms various crop insurance programs to reduce the need for ad hoc assistance funding at later dates. The CBO estimates that Title XI spending will cost approximately $5.1 billion over ten years. Across all titles, the CBO estimates that spending in this Farm Bill will total approximately $30.6 billion from 2025-2034.
Just as the House of Representatives introduced their version of a new Farm Bill, the Senate also has a proposed new Farm Bill. The bill was introduced on November 18 by Senator Debbie Stabenow of Michigan, who also serves as the chairwoman of the Senate Committee on Agriculture, Nutrition, and Forestry. The bill was referred to the Committee on November 18, but no action has occurred since. This bill does not yet have a CBO estimate, but the Committee has released a summary of the various measures included in the bill.
Like the House bill, the Senate bill proposes an increase in the SRPs for ARC and PLC. However, the Senate bill proposes a 5% increase, less than the 10-20% increase in the House bill. The Senate bill also addresses conservation funding by formally allocating IRA funding into conservation programs, but also makes certain conservation programs permanent and emphasizes climate-smart practices in agriculture. On crop insurance, the Senate bill includes language on crop insurance for specialty crops and reducing the need for ad hoc assistance. The Senate bill, like the House bill, doubles the funding for MAP and FMD. In total, the Committee summary states that the Senate bill will spend $39 billion across all titles, presumably over the next ten years.
One of the most popular ways that children learned the legislative process was School House Rock’s song “I’m Just a Bill.” If we recall what must happen before a bill becomes a law, the process seems straightforward. Once introduced, a bill goes to a committee, which reviews the text. If the committee approves of the bill, it goes to the rest of the chamber for their approval. Once approved by one chamber, it goes to the other chamber and go through the same process. If the bill changes in the other chamber, then both chambers need to agree on the new text in order to send the bill to the President.
So, what needs to happen to the Farm Bill? Let’s use the House version for this exercise. The House bill would need to be passed by the House, which requires at least 218 votes in favor. Then, the House bill will be sent to the Senate and the Senate Committee on Agriculture, Nutrition, and Forestry for their review and markup. It is likely the Senate would change the House bill to better reflect the Senate bill. Once approved by the Senate committee, the bill would need approval by the Senate. However, a simple majority is not the threshold for passage. Rather, 60 votes are needed to prevent a filibuster in the Senate. A filibuster is when a senator or small group of senators slow down the passage of a bill. Assuming the House bill was changed by the Senate and received 60 votes, then the bill would have to go to a conference committee to resolve the differences and create a version the House and Senate could agree on. Only then can the bill be sent to the President.
All of this will need to happen by December 20, in addition to other key pieces of legislation that Congress must pass before then. Once Congress adjourns on December 20, then everything must start anew with the start of the 119th Congress in January 2025. A new Farm Bill before December 20 seems unlikely given all the steps that need to occur and other bills that need passed. The prevailing hope is for an extension of the current framework to be passed, and the negotiations for a new Farm Bill starting with the new Congress.
For additional information, visit the following links:
- CBO Estimate of H.R. 8467: https://www.cbo.gov/system/files/2024-11/hr8467_Letter_Thompson_Stabenow.pdf.
- House Committee on Agriculture Summary of H.R. 8467: https://agriculture.house.gov/uploadedfiles/detailed_summary_final.pdf.
- Senate Committee on Agriculture, Nutrition, and Forestry Summar of S. 5335: https://www.agriculture.senate.gov/imo/media/doc/summary_of_the_rural_prosperity_and_food_security_act.pdf.