Bogged down by politics, Congress let a critical piece of legislation that shapes American food policy expire last week, creating uncertainty for some farmers. Lawmakers failed to pass a new version of the farm bill — which covers a wide range of food policy including nutrition programs, farm subsidies and crop insurance — before a Sept. 30 deadline.
Lawmakers will likely tackle the farm bill after the November election, once Congress returns for it's lame duck session.
There won't be any immediate impact on farmers, said Pat Westhoff, director of the Food and Agricultural Policy Research Institute at the University of Missouri. But if Congress doesn't act before the end of the year, consumers could see dramatic increases in the price of dairy products.
In 1949, Congress enacted legislation referred to as the Dairy Cliff. It would force the government to pay for dairy products at an unreasonable price, sending the food market into flux. The point of the cliff is to force lawmakers to take action on the farm bill, Westhoff said.
"I want to stress this is meant to be not very realistic," Westhoff said. "It's meant to be something that nobody wants to see happen, to force Congress to do something."
Work on the farm bill has stalled over concerns about where and how money should be spent. Farm income is dropping from record highs in 2022 as crop prices fall, and inflation continues to affect farmers.
Audrain County farmer Kenny Brinker said crop producers are squeezed by fluctuating prices. Less than two years ago, corn prices hit a a high of $8 a bushel, Brinker said. That's now dropped to below $4 a bushel.
Brinker grows corn and soybeans and raises hogs east of Auxvasse. Raising both livestock and plants can help smooth out bumps in the market, Brinker said. Production costs have remained stubbornly high, posing difficulties for some farmers.
Daily HeadlinesHave the latest local news delivered every morning to start your day informed.Sign upManage your lists
Hogs provide steady income, but Brinker said he plans to halt purchases of new machinery. Federal subsidies covered by the farm bill can help protect farmers, Brinker said, and keep prices low at the grocery store.
"Without those subsidies, you'd have wild gyrations in the market," Brinker said. "If the market turns extremely negative, you'll see the prices of commodities go way up if farmers can't afford to plant."
FAPRI released a report that projects net farm income in the U.S. to drop by 6% — or $9 billion — in 2024.
Congress is supposed to pass a new version of the farm bill every five years. But Republicans and Democrats have bickered over dueling versions of the bill. The last time lawmakers passed a new farm bill was 2018. Congress approved an extension of the 2018 farm bill last year.
In May, the U.S. House Agriculture Committee passed a draft version of the bill backed by Republicans. The bill includes major increases in farm safety net spending, Politico reported, along with provisions to help farmers sell products abroad.
However, Democrats have balked at the bill's proposal to limit future increases in SNAP benefits. SNAP provides money for low-income families to buy groceries. SNAP funding makes up almost 80% of total farm bill spending at $1.15 trillion, according to the Congressional Budget Office.
It's likely Congress will pass another extension of the 2018 farm by the end of the year, Westhoff said. But when, or if, Congress passes a new version of the bill that increases support for farmers is less clear.
"Finding something everybody can agree to is incredibly difficult," Westhoff said.
