Co-written by Howard Olson, SVP Government and Public Affairs & Ginger Langemeier, Legislative Affairs Officer
Senator Boozman releases Republican Farm Bill framework but Farm Bill still at impasse.
Senate Agriculture Committee Republicans unveiled their own framework of the Farm Bill in June, including key priorities, a short summary, and title-by-title highlights.
Why It Matters:
Many of the provisions are similar to the version passed out of the House Agriculture Committee at the end of May and reported in our June 5 Farm Bill Update. Neither Ranking Member Boozman’s (R-AR) nor Chairwoman Stabenow’s (D-MI) framework (released in May) contains legislative bill text. However, having both party’s priorities and funding sources on the table helps spur discussion to reach a compromise bill agreement that can pass through the Senate. Don’t expect this to happen soon.
Deeper Dive: “More farm in the Farm Bill.”
The Boozman framework addresses headwinds facing farmers including the drop in farm income, higher input costs, and the agricultural trade deficit. The framework uses similar funding mechanisms as the House version, such as reining in the Secretary of Agriculture’s use of Commodity Credit Corporation (CCC) funds and limiting future updates to the Thrifty Food Plan.
Boozman’s plan would increase statutory reference prices for all commodities by an average of 15% and update existing commodity coverage programs, including an opportunity for producers to update base acres. The framework increases crop insurance discounts for young, beginning, and veteran farmers. It also contains similar crop insurance affordability language to Senator Hoeven’s (R-ND) FARMER legislation, which lowers the farmer premium of individual yield policies and the Supplemental Coverage Option (SCO) and raises the available coverage level on SCO from 80% to 90%.
Farm Credit priorities
The Boozman framework contains language allowing Farm Credit institutions to partner with community banks and other lenders to finance essential community facilities, and provisions of the Hoeven-Klobuchar (D-MN) PACE Act to increase FSA Direct, Down Payment and Guaranteed loan limits.
The framework also contains provisions that were not included in the Stabenow framework, such as flexible financing for agriculture exports and fishing-related lending authority.
The Farm Credit Council issued a statement about the Senate Farm Bill drafts, saying:
“Farm Credit applauds Senate Ag leaders for putting forth ideas to move the Farm Bill process forward. Both Chairwoman Stabenow and Ranking Member Boozman have released policy proposals to support rural communities and agriculture, and we hope this momentum continues. Economic conditions in agriculture are tightening, and America's farmers and ranchers need the certainty of a full, five-year Farm Bill. We look forward to working with Democrats and Republicans in the House and the Senate as the process continues, and we encourage all sides to find a bipartisan path toward final passage of a Farm Bill this year."
CBO Score
The updated Congressional Budget Office (CBO) estimate was released and projected the USDA will spend $12 billion from the Commodity Credit Corporation (CCC). The new CBO estimate is less than the $50 billion House Republicans were projecting from the language that restricted the Secretary’s authority contained in the version that passed the committee. This has become a major point of contention and an obstacle for future passage of the bill. House Agriculture Committee Chairman Thompson (R-PA) is working with the CBO and the House Budget Committee Chairman Jodey Arrington (R-TX) to find a solution for the difference.
Senate Next Steps
Chairwoman Stabenow is working on more text of her Farm Bill proposal. She spoke publicly that she will not hold a mark-up until there is bipartisan agreement of the policies within the bill. With the sharp lines that remain on the nutrition and climate policies, a bipartisan path forward seems difficult in the near term.
Now What?
It is currently difficult to see a path forward in either the House or Senate, given the hard lines drawn on funding sources and priorities by both Republicans and Democrats. The bill must have bipartisan support to pass either chamber as there are both Democrats and Republicans that will always oppose the Farm Bill.
It appears lawmakers are going to miss the September 30 deadline, when the current Farm Bill extension expires. There’s a chance it could be completed in the lame duck session after the election and before the end of the year. We know the real deadline is December 31 before USDA authority on certain programs requires reauthorization. At that point an extension is required. How long will the extension be? The elections in November will be a barometer.
