House Ag Republicans Unveil New Insights On Draft Farm Bill

Key Takeaways

House Agriculture Committee proposes raising Price Loss Coverage reference prices by 10-20% and expanding income protection for farmers.
The bill introduces new crop insurance benefits and streamlines conservation program funding.
Contrasting with Senate proposals, House measures are more inclusive and less restrictive on payment limits.

Proposed Changes in Agricultural Policy

Republicans on the House Agriculture Committee have introduced a significant draft bill aimed at enhancing economic support for farmers. The proposed legislation outlines a raise in Price Loss Coverage (PLC) reference prices by 10% to 20% based on the commodity. Additionally, it aims to bolster the Agriculture Risk Coverage (ARC) program and improve crop insurance options for growers.

The 38-page summary released reveals further intentions to provide farmers with a one-time opportunity to obtain base acres needed for qualifying payments under PLC and ARC, referencing plantings from 2019 to 2023. The guarantee under ARC would be increased from 86% to 90% of benchmark revenue. Notably, the maximum payment rate is set to increase from 10% to 12.5%. These mechanisms will come into effect when average market prices of commodities fall below established reference prices or when county or individual revenues fail to meet a rolling five-year average.

Although the summary doesn’t disclose specific PLC reference price increases for each commodity, it states that adjustments would result from analyzing the average annual increase in per-unit production costs since the establishment of these prices in the 2014 farm bill. Furthermore, the draft bill proposes to enhance crop insurance options, increasing premium subsidies on the Supplemental Coverage Option from 65% to 80% and raising the top coverage level from 86% to 90%.

The proposed legislation also aims to integrate funding from the Inflation Reduction Act (IRA) while removing restrictions that limit these funds to climate-smart practices. This dual focus would not only support modifications to the Conservation Reserve Program but also fund feral swine eradication and establish a new Forest Conservation Easement Program.

Additionally, the House proposal sharply contrasts with a draft bill introduced by Senate Agriculture Committee Chairwoman Debbie Stabenow, which suggests a more limited 5% increase in PLC prices for just three commodities and imposes tighter restrictions on farm payment limits. In this regard, the House bill is more inclusive, allowing any producer with planted acres beyond their current base to access updates, regardless of demographic status.

In an accompanying open letter, House Agriculture Committee Chairman Glenn “GT” Thompson emphasized the bill’s alignment with producer needs, long-term conservation investments, and the importance of rural economic revitalization. Among the proposed changes include modifications to disaster aid programs, ensuring future ad hoc assistance can be issued via block grants to states.

Key provisions of the draft address various areas like commodity programs, conservation efforts, nutrition assistance, and rural development. For instance, it includes increases in loan limits for USDA direct and guaranteed loans, enhancements to broadband initiatives in rural areas, and new measures to promote U.S. commodities internationally.

In addition, it aims to tackle nutrition assistance reform, proposing a “cost neutral process” for future updates to the Thrifty Food Plan, a controversial point that has faced opposition from Senate Democrats due to concerns of potential future benefit cuts. The proposed legislation also seeks to enhance the eligibility of individuals with past drug offenses for SNAP benefits, allowing better support during career transitions.

The draft provides a comprehensive approach to agricultural policy, focusing on expanding economic supports while balancing diverse interests amid contrasting legislative objectives between the House and Senate. Clarity on specifics will emerge as the committee prepares to vote on the draft in the upcoming weeks, with discussions likely to continue regarding contentious aspects of the bill.

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