The passage of a new Farm Bill continues to be held up by an inability to approve long-term funding of key government agencies. Elected officials in Washington, D.C. have again run up against a deadline that threatens a partial government shutdown. The debate over appropriations funding is happening as officials in the U.S. House and Senate also seek additional aid to Ukraine and Israel while providing greater resources to shore up the southern border.
The government is presently being funded by a continuing resolution (CR), which is a stop-gap measure for funding. These CRs are only temporary. Officials in our nation’s capital continue to kick the can down the road in hopes of buying more time to find a larger agreement.
A key reason for the holdup is the current makeup of Congress. Democrats hold a one-seat majority in the Senate. Republicans hold a slim majority in the House. The controlling majorities in each chamber need their entire caucus to agree. If that doesn’t happen, concessions need to be made to capture enough support from members of the other party. The House GOP is finding it difficult, as some members seek spending cuts of 20%.
House Agriculture Committee Chairman, Rep. G.T. Thompson (R-PA), still indicates his intention to move the Farm Bill in March. That appears difficult given the ongoing funding issues, but we may see the bill finally introduced in committee. The bill will take time once in committee before it hits the House floor. April is likely the earliest we could see the bill debated in the House.
The Senate is quieter than the House, but important work is happening behind the scenes. It is possible that the Senate could introduce their version of the Farm Bill before their House counterparts. Chairwoman Debbie Stabenow (D-MI) would like to get a bill passed before her upcoming retirement.
Differences remain between the two versions. We have heard from multiple GOP officials that they would like to see “more farm in the Farm Bill.” The issue comes down to money and where it will come from. Nutrition makes up over 82% of the bill. Very few in Washington, D.C., want to see cuts to the nutrition program, but it is hard to find the funds necessary to make changes.
AgCountry and the agricultural world would like to see a new bill passed by the end of 2024. The fall elections will soon be the focus. Passage of a new Farm Bill is a possibility in the lame-duck session following the November election. Officials may be motivated at that time as a new Congress will bring unknowns when they are sworn into office in January 2025.
AgCountry and Farm Credit Priorities
We continue to meet with elected officials to promote and gain support for key priorities of the Farm Credit System and AgCountry. We are going to focus on three areas that could provide greater value to our members.
Additional premium support within crop insurance could incentivize more farmers to participate at higher coverage levels. We are working with Sen. John Hoeven (R-ND) to increase premium support on both 80% coverage and 85% coverage. Greater participation at higher levels could reduce the need for recent ad-hoc disaster assistance programs.
A second initiative is increasing limits for Farm Service Agency (FSA) loan programs. We work closely with FSA by utilizing their Guaranteed, Direct, and Down Payment loan programs. These programs should be updated to keep pace with the current cost of farming and ranching. Young or beginning farmers and ranchers take advantage of these programs to get their start in agriculture.
Our mission is to serve agriculture and rural America, and the Invest in Rural America Act would help us better support our rural neighbors. This legislation grants Farm Credit the authority to help finance critical community facilities like hospitals, nursing homes, and assisted living centers. This bill would require greater participation among banks, credit unions, and Farm Credit associations in providing the necessary resources rural communities need.
State Updates
Washington, D.C. is not the only place we are keeping an eye on. Noteworthy things are happening within the three states we serve.
Legislators in Minnesota recently began their 2024 session. Even-numbered years tend to have a different focus as a biennium budget has already passed. We are keeping our eyes open for any bills that would negatively impact agriculture. The Minnesota Democratic-Farmer-Labor Party (DFL) controls the state House, Senate, and governor’s mansion, giving them the trifecta. These majorities are slim, so we are relying on DFL elected officials in farm country to help prevent harmful legislation from going through.
North Dakota elected officials are not in session in 2024. The real news here is that Governor Doug Burgum has announced he is not running for another term. Lieutenant Governor Tammy Miller announced her intent to run for governor as has current U.S. Congressman Kelly Armstrong (R-ND), creating a race worth watching. This also makes an open race to fill the state’s only Congressional office. Three candidates are seeking to succeed Rep. Armstrong in Washington, D.C.
Republicans have dominated state elections in Wisconsin for over a decade. The GOP’s majority will be put to the test this November after the Wisconsin Supreme Court tossed out the GOP’s redrawn district maps. Republicans accepted the proposed maps of Democratic Governor Tony Evers instead of other alternatives. State races are expected to become more competitive, but that is to be seen.
AgCountry will continue to work with elected officials at the federal and state levels on behalf of our member-owners. Look for more future political updates as news unfolds.
