A bipartisan deal aimed at providing aid to American farmers collapsed, leaving Congress scrambling to pass a short-term spending bill to avert a partial government shutdown. The deal included a one-year extension of federal farm programs, around $30 billion in economic relief, and an agreement to increase sales of E15 ethanol. However, President-elect Donald Trump and his allies rejected the package, leading to its downfall.
A new House Republican version was introduced, retaining the one-year Farm Bill extension and economic aid but omitting the ethanol provision. The fate of this version remains uncertain as it faces opposition from Democrats and some conservative Republicans. The urgency to pass this bill is to prevent a government shutdown.
The proposed “continuing resolution” would extend Farm Bill programs for another year, providing $10 billion to assist struggling farmers dealing with high interest rates, declining crop prices, and rising production costs. Additionally, $20 billion of the $100 billion disaster aid package would go to producers.
Farm groups emphasize that the aid sought would not fully compensate producers but would offer much-needed stability as they prepare for the upcoming planting season. Recent projections from the U.S. Department of Agriculture indicate a 4.1% decline in net farm income for 2024 following a significant drop in 2023.
American Farm Bureau President urged Congress to preserve the farm provisions in any new agreement, highlighting the impact of natural disasters on farming communities. Farmers like Carolyn Olson, who faced crop losses due to disease, stress the importance of certainty and support from leaders during this critical period of decision-making.
Corn growers advocated for year-round sales of E15 ethanol, a provision excluded from the House Republican proposal. The Renewable Fuels Association expressed disappointment, emphasizing the importance of this provision for rural America and renewable fuel producers.
Pork producers voiced dissatisfaction with the lack of action on a California animal welfare law affecting pork production standards. The National Pork Producers Council criticized Congress for failing to provide assurance to producers, leading to uncertainty and financial strain for farming families nationwide.
