Safety Net Issues Stall Farm Bill

A Senate Agricultural Appropriations Committee hearing took place on August 15, 2024, at Grand Farm’s Innovation Campus near Casselton, North Dakota. The meeting featured Senators Amy Klobuchar (D-MN.), John Boozman (R-AR.), Tina Smith (D-MN.), and John Hoeven (RND). The primary focus of the discussion was the passage of a new farm bill before the end of the year.

Senator Klobuchar expressed her determination to pass the farm bill, saying she is “obsessed” with getting it done. However, Senator Boozman emphasized the need for careful consideration, stating, “We need to do the right thing.” Senator Hoeven highlighted the importance of the bill, particularly its role in providing a safety net for farmers through reference prices. These prices act as a “floor” under market prices for crops like corn and soybeans, triggering support programs when prices fall below this threshold.

The farm bill, which covers agricultural support and nutrition programs, was extended last year after Congress could not agree on changes before its expiration in 2023. One of the main sticking points in the negotiations is the reference prices, which farm groups argue should be higher to account for increased production costs such as fertilizer and fuel.

Matt Perdue, a policy specialist with the North Dakota Farmers Union, noted that while this year’s strong crop yields will help farmers, next year could bring more significant challenges. Justin Sherlock, president of the North Dakota Soybean Growers Association, warned of an impending farm crisis that has not yet been widely acknowledged.

With time running out, the pressure is on Congress to reach a bipartisan agreement on the farm bill before the year’s end.

Source: News.Yahoo.com