The President recently signed a stop-gap government funding bill that calls for speedy payment of $10 billion to farmers to buffer lower commodity prices and high production costs. Congress had already voted to fund the government through March 14.
Row-crop farmers are eligible for up to $250,000 apiece of the so-called economic assistance payments, with the legislation directing the USDA to make payments within 90 days of enactment of the law, which would be late March. Payments could range from $19 an acre for wheat to $77 an acre for peanuts, according to preliminary estimates. Payments for corn could be $43 an acre and soybeans, $28 an acre.
The stop-gap spending bill included another extension of the 2018 farm law, which expired in fall 2023. Along with the economic assistance payments, the bill had $20.8 billion in disaster assistance for agriculture.
Language authorizing year-round sale of E15, a 15% blend of corn ethanol into gasoline, was part of an initial, bipartisan version of the bill but was dropped during negotiations. The final version dropped the debt ceiling provision and sailed through the House, 366-34, and the Senate, 85-11.
Farm groups cheered the combined $30.8 billion in federal assistance. For many farmers, disaster relief “will be the difference between planting for another year or going out of business,” said the American Farm Bureau Federation. “However,” said the National Farmers Union, “farmers and ranchers deserve better;” most obviously with enactment of a new farm bill in early 2025.
EDITOR’S TAKE:
Passage of this legislation will quickly put over $30 billion into the farm economy. This is part of the reason farm income will likely be higher in 2025 versus the prior year. As a result of this funding, many farmers/ranchers will likely have to borrow less money for operating expenses, thus, lowering interest payments for the year. In addition, the extension of the farm bill will offer farmers/ranchers a continuing safety net until a new bill is passed later this year, which helps to create more certainty in the interim. You also have a fantastic tool called AgPack® at your disposal which can further help farmers/ranchers lower their operating costs. AgPack® offers farmers/ranchers up to $40,000 in exclusive rebates and discounts and it is complimentary!
