Millions of Texans would lose food subsidies and farm insurance if Congress doesn’t act before the end of the year.
LUBBOCK — Federal lawmakers are sounding the alarm on the economic catastrophe that could happen if a new farm bill isn’t passed by the end of this year, now that the 2018 version has officially expired.
Since it was introduced by the House Committee on Agriculture in May, there has been no progress on passing the wide-ranging, multi-year law. It has not been discussed on the House floor or in the Senate. In a letter to House Republican leadership, signed by 140 members of Congress, lawmakers said if they wait until the next year to enact an effective farm bill, the impacts will be felt nationwide.
“The negative impacts of failing to act will not just stop at the farm gate,” the letter warns, “but will Main Street businesses, rural communities, and the national economy.”
The Farm, Food, and National Security Act, also known as the farm bill, is considered a “must-pass” package of federal legislation that is typically reauthorized every five years. The last farm bill was passed in 2018 and was supposed to be renewed in 2023, until lawmakers extended the deadline to Sept. 30.
In the letter, the lawmakers say inflation and low market prices have squeezed farmers and ranchers. The money producers are making from their crops is not enough to cover the costs of growing it for the entire country. The result is an estimated $34 billion loss in crop cash receipts, which is expected to cause the sharpest two-year decline in net cash income in U.S. history.
U.S. Reps. Jodey Arrington, Ronny Jackson and Dan Crenshaw — all Republicans — are among the Texas lawmakers who signed the letter.
U.S. Rep. Jasmine Crockett, a Democrat who represents parts of North Texas, did not sign the letter. In a statement to the Tribune, Crockett said Democrats are aware the bill is vital. However, she stressed the need for open negotiations to get the bill passed.
“We need to negotiate a bipartisan bill,” Crockett said. “And leadership needs to put it on the (House) Floor so producers across the country can finally breathe a sigh of relief.”
In Texas, the bill supports more than 230,000 farms and ranches that can be found in nearly every corner of the state — from sprawling pastures in the northern Panhandle to loam-covered rice fields in East Texas. According to a 2024 Feeding the Economy report, an economic impact study organized by food and agriculture groups, the state’s food and agriculture sectors contribute about $860.8 billion in economic activity and employ more than 4.5 million people.
The bill also helps provide more than 3.4 million low-income Texas families receive benefits from the Supplemental Nutrition Assistance Program, according to Every Texan, a nonprofit advocacy organization that analyzes public policy and its impact on Texas residents.
The farm bill sets policies for many agricultural programs, such as federal crop insurance and loans for farmers. It also has loosely related programs for rural development and nutrition, including the Emergency Food Assistance Program and SNAP. Food programs in the bill may account for nearly 80% of the farm bill spending — the bill itself is estimated to be worth at least $1.5 trillion.
The SNAP program, or food stamps, is a sore spot for certain Republican lawmakers. While the bill is historically a bipartisan effort, fights along party lines about funding the program has derailed progress. In the version advanced by the U.S. House agriculture committee, led by Rep. Glenn Thompson, a Pennsylvania Republican, SNAP would get about a $30 billion cut. That’s a nonstarter for many Democrats.
Laramie Adams, associate government affairs director for Texas Farm Bureau, said it’s a pressing matter. After Jan. 1, 2025, the law reverts to statutes approved in 1938 and 1949 that don’t expire and are temporarily suspended with the passing of each new farm bill. Adams thinks the reason for this is to keep the pressure on lawmakers to pass a new bill in a timely manner.
With no agreement in sight and the clock ticking, Adams said farm organizations are not entertaining another extension. Instead, there’s the push to pass it before the end of the year, as well as disaster economic assistance to get farmers and ranchers through 2025. This comes after a particularly rough year for agriculture in Texas, as wildfires, drought and flooding has squashed hopes for a fruitful year.
According to a letter signed from the American Farm Bureau, even if a new bill is enacted this year, the benefits will not be realized until 2026.
“We need our members of Congress and leadership in Congress to recognize there’s no room for delay anymore,” Adams said. “It’s time to actually work together to get something done.”
While the current law has technically expired, the programs under it are still covered through the end of the year. Kody Bessent, CEO for Plains Cotton Growers which represents cotton producers in the Texas South Plains, said this is why there’s a strong push to get a new bill passed this year.
An extension would keep old policies in place, Bessent said. Since the last bill passed, the economy has changed from the COVID-19 pandemic, inflation, and climate disasters, among other issues.
“Those programs are not sophisticated enough now to help producers,” Bessent said. “Based on where the cost of production and market prices are at today.”
For cotton growers, the cash crop in the South Plains is in better shape than it has been in recent drought-ridden years. Still, Bessent says production will be down because of two consecutive weeks of 100-degree days and little rainfall. Agricultural producers could have benefited from the passage of a farm bill in 2023 — its original deadline.
“That would have provided much needed cash flow assistance to producers,” Bessent said. “Especially right now, when we’re seeing systemic price declines and higher input costs.”
The first agricultural sector that would be affected if the proposed legislation doesn’t pass is the dairy industry. Dairy programs in the bill expire before commodity programs.
However, Darren Turley, executive director of the Texas Association of Dairymen, is trying to focus on what the dairy industry stands to gain if the current version is passed. This includes an increase to the Dairy Margin Coverage Program — essentially insurance for dairy producers.
“We do have some issues over the timeline,” Turley said. “It’s not as bad as other commodities.”
Adams with the Texas Farm Bureau said there are still concerns as agricultural producers are having difficulty getting financing from lenders and banks to start work in the new year, as the uncertainty with the bill affects that too. He’s hopeful lawmakers can pass a bill by the end of the year.
Source: Texas Tribune BY Jayme Lozano Carver
