MINNEAPOLIS — Farmers across the United States are expressing hope that agricultural assistance will be restored as Congress faces the challenge of passing a short-term spending bill aimed at maintaining federal government operations and preventing a potential partial shutdown that could commence after midnight on Friday.
Recently, a bipartisan agreement that included a one-year extension of federal farm programs and approximately $30 billion in economic relief collapsed after President-elect Donald Trump and his associates criticized the complete package. Trump, while rejecting the deal, appeared to recognize the pressing issues facing rural communities, many of which strongly supported him during the election.
On Thursday, House Republicans unveiled a new proposal that retains the one-year Farm Bill extension and the economic support but eliminated the provision that would have increased the sales of E15, a higher ethanol blend. It remains uncertain whether this revised version can secure approval in both the House and Senate, as it faces resistance from Democrats and some conservative Republicans, along with the need to gain President Joe Biden’s approval to avoid a government shutdown.
Both proposals for a “continuing resolution” would extend the existing Farm Bill programs for an additional year, following a failure to develop a new five-year package after extensive discussions. These proposals also allocate $10 billion to assist farmers grappling with high-interest rates, shrinking crop prices, and escalating production costs that have outstripped revenues. Additionally, the packages would provide $20 billion in disaster relief out of the total $100 billion set aside for urgent aid.
Trump shared on social media about the recent developments, stating, “SUCCESS in Washington! Speaker Mike Johnson and the House have come to a very good Deal for the American People. The newly agreed to American Relief Act of 2024 will keep the Government open, fund our Great Farmers and others, and provide relief for those severely impacted by the devastating hurricanes.”
Many farm organizations emphasize that while the assistance they seek might not fully compensate for losses, it would provide necessary stability for farmers applying for loans in preparation for the upcoming planting season. Recent estimates from the U.S. Department of Agriculture indicate that net farm income is projected to decrease by 4.1% in 2024, following a 19.4% decline in 2023, down from the high earnings of 2022.
Zippy Duvall, President of the American Farm Bureau, appealed to Congress in a letter, urging the preservation of farm-related provisions within any forthcoming agreement. “Any alternative Continuing Resolution (CR) must include: a farm bill extension, aid to rebuild after natural disasters, economic assistance to bridge the gap until we can get to a new farm bill, and year-round E-15 sales,” he stated. He stressed the significant damage inflicted on communities nationwide by weather-related disasters in 2023 and 2024, highlighting the ongoing need for recovery efforts.
Caroline Olson, who operates an organic corn, soybean, and wheat farm in southwestern Minnesota, expressed that any assistance would greatly benefit farmers affected by various natural disasters, such as Midwest droughts and Southeast hurricanes. Olson, also the vice president of the Minnesota Farm Bureau, noted that the winter months will be crucial in determining farmers’ plans for the next planting season.
“It’s really important for farmers to have some certainty and for their leaders to feel secure making lending decisions for their farms,” she commented. “This uncertainty is a significant concern for many farmers.”
The Olsons, despite a successful corn harvest and income from raising approximately 14,000 conventional hogs annually, faced setbacks when they lost their entire 2024 wheat crop due to disease. This has added to their stress, as organic farming means they have less expenditure on herbicides yet still contend with high costs for other expenses like heating fuel. “We need Congress to vote yes on this,” Olson urged.
Corn growers had heavily advocated for inclusion of permanent, year-round sales of E15 gasoline, which contains 15% ethanol derived from corn. However, this provision was excluded from the revised House proposal. Industry stakeholders are still hopeful that it can be reinstated.
Geoff Cooper, President and CEO of the Renewable Fuels Association, condemned the removal of E15, stating, “It’s a kick in the teeth to rural America, and we are urging members to vote ‘no’ on any package that doesn’t include this simple E15 fix.”
During the previous Trump administration, there was support for year-round E15 sales, but opposition from the oil industry and concerns related to air quality during the summer months resulted in the current temporary waivers under the Biden administration. The Environmental Protection Agency recently authorized year-round E15 sales only for a limited number of Midwestern states, further dampening its adoption at gas stations nationwide.
Jim Kanten, who manages 2,300 acres of corn and operates a manure-application service, emphasized the ongoing efforts to secure E15 sales for over a decade, stating the need for both a temporary Farm Bill extension and a comprehensive, updated five-year package.
On the contrary, pork producers have expressed dissatisfaction with the new proposal. They were looking for a Congressional move to mitigate the impacts of a California animal welfare law that prohibits the sale of pork from hogs raised in specific conditions. This has imposed additional costs on producers nationwide. Lori Stevermer, a pork producer, remarked on the uncertainty facing family farms, saying Congress’s lack of direction during this challenging time could detrimentally impact many agricultural families this holiday season.