Economist Looks at Possibilities
in Current Farm Bills

The 2018 Farm Bill moved closer to completion in late June when both the House and Senate passed their versions, which set the stage for a conference committee to work out differences.

Finding compromises that could pass in both chambers will be difficult, but the two bills provide some overlapping direction for major elements of the legislation.

Farm Income Safety Net – Under either version, the farm income safety net, including both commodity programs and crop insurance programs, would remain largely intact. The House and the Senate both propose reforms to the Agricultural Risk Coverage (ARC) program to rely more on crop insurance yield data, a move with broad ag group support that seems certain to proceed. The Senate version includes a trend-adjusted yield history to strengthen the ARC guarantee.

The House language ratchets up the reference price for ARC and Price Loss Coverage programs if market prices return to above-reference-price levels, while the Senate heard but did not adopt language to cut PLC support and use the savings to further strengthen the ARC guarantee.

Both bills also propose adding further protection and support to the dairy margin program that was substantially revised in appropriations legislation in February.

The crop insurance programs were left virtually unchanged.

Conservation Acres to Increase – The conservation title contains significant differences between the House and Senate bills, particularly in the Conservation Reserve Program and the working lands programs. Both bills propose to increase the acreage cap on CRP, and pay for it, at least in part, with reduced rental rates going forward.

Biggest Divide Lies in Food Assistance – By far, the biggest difference between the House and Senate bills is in the nutrition title with SNAP provisions. The House bill was written to appeal to conservative calls for SNAP reforms and tightens eligibility rules and benefit calculations. The House version also beefs up work requirements and adds job training and education programs to serve those faced with increased work requirements.

Writer Brad Lubben is an Extension policy specialist in agricultural economics at the University of Nebraska-Lincoln.