By Jamie Martin
The pressure is mounting on Congress to pass a new farm bill as the current legislation nears its expiration. More than 300 agricultural organizations, including the American Farm Bureau Federation, have conveyed the urgent need for legislative action to both Senate and House leaders.
The letter highlights that “farmers and ranchers are facing multiple years of operating in the red, which threatens their ability to continue farming.” It cites ongoing challenges such as severe weather conditions, high input costs, unpredictable global demand, and disruptions in the supply chain.
According to the U.S. Department of Agriculture (USDA), net farm income for 2024 is projected to fall by $55.61 billion, a more than 27% decrease from 2022.
Additionally, crop prices have dropped by an average of 21% since the beginning of the year, while production expenses remain near historic highs.
Since the 2018 farm bill, farmers have endured a series of trials including a pandemic, global tensions, a trade war with China, and persistent supply chain issues.
USDA estimates that farm sector debt will reach almost $541 billion in 2024, the highest inflation-adjusted amount in more than five decades.
The organizations’ letter praises the efforts of committee leaders in developing a new farm bill and acknowledges the importance of farmers in supplying food, feed, fuel, and fiber.
It stresses the need for Congress to pass a new bill with meaningful investments in commodity programs and crop insurance before the year ends.
Without these measures, the letter warns that many family farms may face an uncertain future in 2025 and beyond if only a short-term extension of current law is enacted.
Categories: National