Geopolitical tensions and the rising cost of inputs for growers were top concerns in a letter signed by 400 agriculture organizations that outlined their priorities for the farm bill. The letter was sent in mid-March to members of the Senate Committee on Agriculture, Nutrition and Forestry and the Committee on the Budget.
The current farm bill is set to expire at the end of September, and the fight over the next one could be protracted.
The letter asked for relief from the “many pressures on United States farmers and others throughout the agricultural supply chain who provide food, feed, fuel, fiber, and other products to consumers across the United States and abroad.” According to the U.S. Department of Agriculture, international sales of U.S. farm and food products reached $196 billion in 2022. The leading market for these products is China, which continues to be “marked with geopolitical volatility.” U.S. farmers continue to suffer from “gaps in the farm safety net” revealed during the tariff war with China, the letter noted.
During the trade war with China that began in 2018, U.S. agriculture endured significant market impacts, which “unfortunately revealed gaps in the farm safety net.” The Title 1 provisions were barely used, despite damage to the farm economy from the tariffs. The letter notes that even though farmers received ad hoc assistance (such as Market Facilitation Program payments), it’s no substitute for a longer-term plan that could be included in a five-year farm bill.
Uncertainties resulting from the Ukraine war, non-tariff agricultural protectionism from other countries, and the rising cost of farm inputs were also cited by the letter. The USDA projects that most expense categories for growers will remain above their 2021 levels in 2023 both in nominal and inflation-adjusted dollars. USDA’s February 2023 Farm Income Forecast publication projected a 20.7% decline in net cash farm income in 2023 compared to 2022, although 2022 was a record year for net farm income.
“The upcoming farm bill reauthorization provides an opportunity to address very real needs in agriculture and rely less on off-budget ad hoc assistance.”
Other concerns mentioned were the need to protect and enhance crop insurance to assist with volatile weather and crop loss; improving access to voluntary conservation incentives; addressing rural development needs; investing in research for innovation and competitiveness; “providing opportunities to help the nation become more energy independent and food secure;” and supporting solutions to address logistics challenges.
David Murray can be reached at [email protected].
