2024 Farm Bill: Prospects and challenges for passage

The 2024 Farm Bill stands at the forefront of agricultural policy discussions, poised to shape the future of America's farming landscape. As the current farm bill nears its expiration, stakeholders across the agricultural sector are closely monitoring its status and potential reauthorization. This comprehensive legislation has a significant impact on various aspects of agriculture, including crop insurance, the Supplemental Nutrition Assistance Program, and the Conservation Reserve Program, making its passage crucial for farmers, consumers, and rural communities alike.

The path to enacting the 2024 Farm Bill faces several hurdles and opportunities. Both the House Agriculture Committee and Senate Agriculture Committee play key roles in crafting and advancing the legislation. As discussions unfold, policymakers must navigate a complex political environment, balancing diverse interests and addressing challenges such as climate change, food security, and rural development. This article delves into the prospects and challenges surrounding the 2024 Farm Bill, examining its key components, the political landscape, stakeholder perspectives, and potential outcomes that will influence its eventual passage and implementation.

Key Components of the 2024 Farm Bill

The 2024 Farm Bill encompasses several critical components that shape agricultural policy and support various aspects of rural America. These key components include nutrition programs, commodity support, conservation efforts, and rural development initiatives.

Nutrition Programs

The nutrition title represents the largest portion of the Farm Bill's spending, projected to account for 82% of the total in the upcoming legislation . This title provides funding for essential programs such as the Supplemental Nutrition Assistance Program (SNAP), which supports nearly 40 million low-income individuals with monthly grocery benefits. The 2024 Farm Bill aims to address long-standing nutritional inequities and strengthen food system infrastructure.

Key proposals for nutrition programs include:

1. Increasing purchasing power for nutritious foods by potentially replacing the Thrifty Food Plan with the Low-Cost Food Plan as the basis for SNAP allotments.
2. Strengthening the Gus Schumacher Nutrition Incentive Program (GusNIP) with increased funding to $3 billion for national expansion.
3. Improving access to SNAP grocery delivery by reimbursing direct market operations and smaller retailers for delivery fees.
4. Establishing a metric for measuring and reporting the impact of SNAP participation on nutrition security.

Commodity Support

The Commodity title of the Farm Bill provides crucial support to farmers and ranchers through various programs. These programs offer financial assistance when crop prices or revenues decline for major commodity crops and help manage production losses due to natural disasters.

Key commodity support programs include:

1. Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) Programs, which provide financial support for losses in income accrued by producers of certain eligible commodities.
2. Livestock Indemnity Program, offering benefits to livestock producers for livestock deaths caused by adverse weather or animal attacks.
3. Livestock Forage Disaster Program, compensating eligible livestock producers who have suffered grazing losses.
4. Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP), providing financial assistance for losses due to disease and adverse weather events.

Conservation Efforts

The Conservation title encourages environmental stewardship and improved land management practices through various programs. The Farm Bill provides $6 billion annually for conservation, making it the single largest source of U.S. federal funding for conserving, restoring, and managing private land.

Key conservation programs include:

1. Conservation Reserve Program (CRP), which allows enrolled producers to remove environmentally sensitive land from agricultural production.
2. Conservation Stewardship Program (CSP), connecting eligible producers with NRCS representatives to devise conservation stewardship plans.
3. Agricultural Conservation Easement Program, assisting landowners in protecting working farms and ranches through conservation easements.
4. Environmental Quality Incentives Program (EQIP), providing financial and technical assistance to eligible producers to integrate conservation into work lands. 

Rural Development

The Rural Development title supports rural business and community development, addressing a wide range of policy issues concerning rural America. This component focuses on essential services, infrastructure, and economic development in rural areas.

Key rural development programs include:

1. Rural Broadband Loans, Loan/Grant Combinations, and Loan Guarantees, providing funding for broadband service in eligible rural areas.
2. ReConnect Loan and Grant Program, offering grants and loans for broadband infrastructure in rural areas.
3. Rural Innovation Stronger Economy Program, providing competitive grants to establish job accelerators in underserved rural areas.
4. Rural Economic Development Loan and Grant Program, offering zero-interest loans to local utilities for projects that create and retain employment in rural areas.

These key components of the 2024 Farm Bill collectively aim to address the diverse needs of America's agricultural sector, rural communities, and food security initiatives.

Political Landscape and Challenges

The 2024 Farm Bill faces significant hurdles in its path to passage, reflecting a complex political landscape and numerous challenges that have emerged in recent years. These obstacles have led to a stalemate in the current farm bill negotiations, potentially solidifying a new era in farm politics characterized by delays and partisan division.

Partisan Divide

The once bipartisan nature of farm bill legislation has given way to increasing partisan tensions. Historically, farm bills were completed within a few months of their expiration date, with ten of the 13 farm bills since 1965 enacted by December 31 in the year of their expirations. However, three of the four farm bills since 2008 have extended beyond that date, each marked by partisan disagreements about spending.

The Republican-led House Agriculture Committee approved its farm bill proposal largely along party lines at the end of May, after hours of debate and complaints from Democrats that the process had not been as bipartisan as in years past . This partisan divide is particularly notable given the farm bill's history of bringing together lawmakers from both sides of the aisle.

Key points of contention include:

1. Nutrition Programs: Democrats oppose the proposed limits on the "Thrifty Food Plan" formula that calculates benefits for the Supplemental Nutrition Assistance Program (SNAP).
2. Conservation Programs: Democrats rejected efforts to preserve conservation programs' focus on farming practices that reduce emissions tied to climate change.
3. Secretary's Authority: Democrats argue that limiting the agriculture secretary's authority would hinder the administration's ability to respond to emergencies affecting farmers.

Budget Constraints

Budget issues have become a significant obstacle in the 2024 Farm Bill reauthorization process. The House Agriculture Committee faces challenges in offsetting the substantial increase in spending projected to result from the proposed increase in reference prices.

Key budgetary issues include:

1. Insufficient Offsets: The committee's proposal to limit Commodity Credit Corporation (CCC) authority as an offset was not sufficient to cover the projected costs.
2. Disputes with CBO: The committee has disputed the Congressional Budget Office's (CBO) scoring of the bill, leading to attacks on the nonpartisan agency.
3. CUTGO Provision: The 118th Congress tightened offset requirements with a "CUTGO" provision, prohibiting consideration of legislation that increases mandatory spending within either a six-year or 11-year window.

These budgetary constraints have complicated the legislative process and stifled innovation in policy development.

Competing Priorities

The 2024 Farm Bill must balance a range of competing priorities, reflecting the diverse interests of stakeholders across the agricultural sector and beyond. Some of the key areas of contention include:

1. Farmer Safety Net: Both House and Senate proposals emphasize strengthening the farmer safety net, particularly through increases in reference prices for commodity crops.
2. Conservation Funding: There is debate over the reallocation of Inflation Reduction Act (IRA) conservation funds to the Farm Bill's conservation title.
3. Nutrition Assistance: Disagreements persist over the approach to nutrition assistance programs, with Republicans and Democrats at odds over participation and eligible items.
4. Animal Agriculture: The House proposal seeks to limit states' ability to impose conditions or standards on animal agriculture production.

As the 2024 election approaches, industry stakeholders are making final pushes for their farm bill priorities. However, many are bracing for another extension of the current bill due to the ongoing impasse. The outcome of the November elections could significantly influence the final shape of the farm bill, adding another layer of uncertainty to an already complex process.

Stakeholder Perspectives and Advocacy

The 2024 Farm Bill has drawn attention from various stakeholders, each with their own priorities and concerns. This section examines the perspectives of key groups and their advocacy efforts in shaping the legislation.

Agricultural Industry

The agricultural industry, represented by organizations such as the American Farm Bureau Federation, has been actively lobbying for provisions that support farmers and ranchers. These groups have spent significant resources to influence the Farm Bill, with agribusiness annual lobbying expenditures rising 22 percent from $145 million in 2019 to $177 million in 2023.

Key priorities for the agricultural industry include:

1. Strengthening safety net and price support programs to provide stability for producers managing market fluctuations.
2. Increasing the availability and accessibility of farm loans to help start, improve, expand, and strengthen American farms.
3. Supporting the Dairy Margin Coverage Program, which builds on the former Margin Protection Program for Dairy.
4. Advocating for disaster programs to rehabilitate farmland and ranchland damaged by natural disasters.

However, critics argue that large agribusinesses have disproportionate influence over the Farm Bill. A report by the Union of Concerned Scientists found that out of more than 560 industry associations, special interest groups, and advocacy organizations lobbying on the 2024 Farm Bill, some of the highest spenders were the U.S. Chamber of Commerce, the American Crystal Sugar Company, and the American Farm Bureau Federation.

Environmental Groups

Environmental organizations, such as The Nature Conservancy, have become increasingly involved in Farm Bill discussions, recognizing the significant impact of agricultural practices on land and water resources. These groups advocate for conservation programs and sustainable farming practices.

Key priorities for environmental groups include:

1. Maintaining and expanding conservation programs, which receive about $6 billion annually through the Farm Bill.
2. Promoting regenerative agriculture practices to address climate change and improve soil health.
3. Protecting grasslands and wetlands through programs like the Agricultural Conservation Easement Program.
4. Supporting forest management and restoration initiatives, such as the Forest Legacy Program and the Collaborative Forest Landscape Restoration Program.

Environmental groups emphasize the importance of these programs, noting that over 70% of the land in the lower 48 states is privately owned and eligible for Farm Bill conservation programs.

Consumer Advocates

Consumer advocacy groups focus on aspects of the Farm Bill that directly impact food accessibility, affordability, and nutrition. These organizations often advocate for programs that benefit low-income individuals and families.

Key priorities for consumer advocates include:

1. Strengthening nutrition programs, particularly the Supplemental Nutrition Assistance Program (SNAP), which supports nearly 40 million low-income individuals with monthly grocery benefits.
2. Improving the nutritional quality of food distributed through federal programs by aligning with the Dietary Guidelines for Americans.
3. Enhancing outreach efforts to identify and notify eligible students who qualify for SNAP benefits.
4. Supporting programs like the Gus Schumacher Nutrition Incentive Program (GusNIP) to increase access to nutritious foods.

Consumer advocates also emphasize the need for greater transparency and public participation in the Farm Bill process. A recent survey found that around one-third of American adults have never heard of the Farm Bill, while a similar proportion has heard of it but does not know what programs it supports . This lack of public awareness highlights the importance of education and outreach efforts by consumer advocacy groups.

Potential Outcomes and Timeline

The 2024 Farm Bill reauthorization process faces significant challenges, with potential outcomes ranging from a timely passage to extended delays. The current political landscape and legislative hurdles have created uncertainty about the bill's future.

Extension Scenarios

Given the complexities surrounding the 2024 Farm Bill, an extension of the current legislation appears increasingly likely. In November 2023, Congress enacted a one-year extension of the 2018 farm bill, continuing its authorizations until September 30, 2024, and for the 2024 crop year . This extension scenario has become more common in recent years, with three of the past four reauthorizations requiring extensions.

The timeline for the 2024 Farm Bill remains uncertain. The House Agriculture Committee advanced its version, the Farm, Food, and National Security Act of 2024, on May 24, 2024 . However, the fate of this bill on the House floor is in serious doubt. Initial indications suggest that floor time will not be scheduled prior to September, and the odds of considering a $1.5 trillion, controversial piece of legislation in the middle of a contentious campaign season are minimal.

Several factors contribute to the potential for further delays:

1. Partisan divisions in the House Agriculture Committee
2. Budgetary constraints and disputes
3. Competing priorities among stakeholders
4. The approaching 2024 election season

If a new Farm Bill is not passed before the current extension expires, additional short-term extensions may be necessary to prevent disruptions to agricultural programs and policies.

Impact on Farmers and Rural Communities

The uncertainty surrounding the 2024 Farm Bill has significant implications for farmers and rural communities. As the legislative process continues, various sectors of agriculture face potential changes and challenges.

1. Commodity Programs: Field crop producers will once again need to choose between the Farm Bill commodity programs of Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) for the 2024 production season . These decisions have direct impacts on farmers' risk management strategies and financial planning.
2. Rural Development: The current Farm Bill enhances USDA Rural Development's ability to support rural American prosperity. Title VI provides assistance for improving rural health outcomes, broadband access, community and economic development, water and waste disposal facilities, and rural energy . Any delays or changes to these programs could affect ongoing projects and future investments in rural areas.
3. Broadband Access: The Farm Bill plays a crucial role in expanding rural broadband access. It authorizes Congress to appropriate an additional $350 million to the Rural Broadband Access Loan and Loan Guarantee Program and prioritizes providing broadband access to underserved areas . Delays in reauthorization could slow progress in bridging the digital divide in rural communities.
4. Local Agriculture Markets: The current bill created the Local Agriculture Market Program (LAMP) to support local and regional food systems . Uncertainty about the future of such programs may impact small-scale producers and local food initiatives.
5. Conservation Programs: Any changes to conservation programs could affect farmers' ability to implement sustainable practices and access related financial support.

As the legislative process unfolds, farmers and rural communities must navigate this period of uncertainty while making crucial decisions about their operations and long-term planning. The potential outcomes of the 2024 Farm Bill will have far-reaching consequences for agricultural policy, rural development, and food security in the United States.