Texans Concerned as Revised Farm Bill Stalls in Congress

The Urgency of the Farm Bill: A Looming Economic Crisis for Texas Agriculture

As the clock ticks down to the end of the year, federal lawmakers are raising alarms about the potential economic disaster that could ensue if a new farm bill is not passed. With the expiration of the 2018 Farm Bill, the stakes have never been higher for farmers, ranchers, and rural communities across the United States, particularly in Texas.

The Farm Bill: A Crucial Legislative Package

The Farm, Food, and National Security Act, commonly referred to as the farm bill, is a comprehensive piece of legislation that is typically reauthorized every five years. It encompasses a wide array of agricultural programs, including federal crop insurance, loans for farmers, and nutrition assistance programs like the Supplemental Nutrition Assistance Program (SNAP). The last iteration of this vital legislation was passed in 2018, and while it was originally set for renewal in 2023, lawmakers extended the deadline to September 30, 2024.

The urgency surrounding the farm bill is underscored by a letter signed by 140 members of Congress, warning that delays in passing the bill could have far-reaching consequences. “The negative impacts of failing to act will not just stop at the farm gate,” the letter cautions, emphasizing that the repercussions will ripple through Main Street businesses, rural communities, and the national economy.

Economic Pressures on Farmers and Ranchers

Inflation and low market prices have created a perfect storm for agricultural producers. According to estimates, farmers are facing a staggering $34 billion loss in crop cash receipts, leading to what could be the sharpest two-year decline in net cash income in U.S. history. Texas lawmakers, including U.S. Reps. Jodey Arrington, Ronny Jackson, and Dan Crenshaw, have voiced their concerns, highlighting the urgent need for a new farm bill to alleviate these pressures.

In Texas alone, the agricultural sector supports over 230,000 farms and ranches, contributing approximately $860.8 billion in economic activity and employing more than 4.5 million people. The farm bill is not just a lifeline for producers; it also provides essential support for over 3.4 million low-income Texas families through SNAP benefits.

The Bipartisan Challenge

While the farm bill has historically been a bipartisan effort, recent discussions have revealed deep divisions, particularly regarding funding for SNAP. The House agriculture committee’s proposed version of the bill includes a $30 billion cut to the program, a move that has been met with resistance from many Democrats. U.S. Rep. Jasmine Crockett, a Democrat from North Texas, emphasized the need for open negotiations, stating, “We need to negotiate a bipartisan bill.”

The stakes are high, as the bill sets policies that affect not only agricultural programs but also rural development and nutrition assistance. With food programs accounting for nearly 80% of the farm bill’s spending, the potential cuts could have dire consequences for vulnerable populations.

The Impending Reversion to Outdated Laws

If a new farm bill is not passed by January 1, 2025, the law will revert to outdated statutes from 1938 and 1949, which do not expire but are temporarily suspended with each new farm bill. This scenario is particularly concerning for agricultural organizations, which are pushing for immediate action. Laramie Adams, associate government affairs director for Texas Farm Bureau, noted that the urgency is palpable, as the current law has technically expired but remains in effect through the end of the year.

Adams pointed out that the economic landscape has changed dramatically since the last bill was passed, influenced by factors such as the COVID-19 pandemic, inflation, and climate-related disasters. “Those programs are not sophisticated enough now to help producers,” he said, highlighting the need for updated policies that reflect current realities.

The Impact on Specific Agricultural Sectors

Different agricultural sectors are bracing for the potential fallout if the farm bill does not pass. The dairy industry, for instance, could be the first to feel the pinch, as its programs are set to expire before those for other commodities. However, there is cautious optimism among dairy producers regarding potential increases to the Dairy Margin Coverage Program, which serves as insurance for dairy farmers.

Meanwhile, cotton growers in Texas are facing their own set of challenges. Although the crop is in better shape than in previous drought years, production is still expected to decline due to extreme heat and insufficient rainfall. Kody Bessent, CEO of Plains Cotton Growers, emphasized that timely passage of the farm bill could have provided much-needed cash flow assistance to producers struggling with systemic price declines and rising input costs.

The Path Forward

As the deadline looms, agricultural producers are increasingly anxious about the uncertainty surrounding the farm bill. Adams noted that the lack of a clear path forward is complicating financing for farmers and ranchers, who rely on stable policies to secure loans and plan for the upcoming year.

With the current law still in effect until the end of the year, there is a strong push from agricultural organizations to finalize a new bill that addresses the pressing needs of producers. The message is clear: lawmakers must recognize the urgency of the situation and work collaboratively to ensure that the farm bill is passed before the year’s end.

In a landscape marked by economic challenges and shifting agricultural dynamics, the farm bill remains a critical piece of legislation that will shape the future of Texas agriculture and the livelihoods of millions.