Debates linking food aid for needy families with crop subsidies for American farmers could hinder the renewal of a comprehensive agricultural policy law — the next modernized farm bill.
Concerns that the delay could push Congress to postpone action on the $1.5 trillion proposal mean America’s farmers and ranchers are in a holding pattern, counting on Congress to make the next move and pass the farm bill.
Congressional leaders face two options: a short-term extension that might allow for an agreement on the farm bill during the post-election session, or a longer-term extension due to persistent disagreements over the bill. The 2018 farm law was passed after a series of negotiations following the mid-term elections.
“America’s farmers and ranchers are counting on Congress to pass a new, modernized farm bill,” was the message delivered by Kevin Lussier, the chair of American Farm Bureau’s Young Farmers & Ranchers Committee, who testified Tuesday before the Senate Agriculture Subcommittee on Commodities, Risk Management, and Trade.
Kevin is a third-generation farmer from Hawthorne, Florida, where he and his wife operate a dairy farm and serve as members of Florida Farm Bureau. “The future of American dairy farming depends on investment in the next generation. By increasing access to credit and enhancing risk management programs, we can ensure that the next generation of farmers have the tools and resources we need to thrive,” Lussier told lawmakers. “I urge the committee to consider these vital programs and to take action to support young farmers across the country by passing a bipartisan farm bill this year. Young farmers like us cannot afford continued delays by Congress.”
Lussier emphasized the importance of affordable credit for young and beginning farmers. He credits USDA-backed loans and grants for enabling him to grow his business during difficult times.
“Traditional lending institutions often view agriculture as a high-risk industry. When you combine that with the limited or zero credit history many young farmers and ranchers have, it makes it difficult for them to secure loans through private lending institutions on favorable terms. Programs like the FSA’s Guaranteed and Direct Farm Ownership and Operating Loans have been invaluable to the success of our farm and to many other young farmers and ranchers,” he said.
Lussier advocated for improvements to risk management programs, like Dairy Margin Coverage (DMC). Suggested enhancements include increasing the cap on Tier 1 coverage above 5 million pounds, providing a premium discount for farmers who choose to enroll in DMC for the life of the farm bill, and restoring the “higher of” formula for the class I mover. “Strengthening and expanding the DMC program will help young dairy farmers like myself manage the inherent risks in agriculture and ensure a more stable, predictable income,” Lussier said.
Another member, representing the Mississippi Farm Bureau, also testified yesterday. Christian Good and his wife operate a corn and soybean farm in Macon, Mississippi. Good is speaking on needed farm bill improvements to reference prices, crop insurance eligibility, rural broadband, and increased funding for conservation programs.