As commodity prices continue to decline, agriculture companies such as John Deere are performing large numbers of layoffs; Mother Nature continues to keep us on our toes; the Farm Bill deadline approaches ever so quickly; and producers throughout the country are uneasy with where the Ag Economy stands.
The Farm Bill: a “Food Bill”
Unless you’ve taken the time to read the Farm Bill front to back, one may assume that it is directed to the agriculture industry. While this is partially true, the infamous Farm Bill encompasses a wide variety of programs, budgets, and restriction revolving around food production, consumption, and availability of funding.
In the opinion of Brian Duncan, Illinois Farm Bureau President, the farm bill is a “food bill” for the American public. “It’s a food availability bill, and it’s a food production bill,” Duncan stated as he joined the American Farm Bureau Federation’s Council on Capitol Hill earlier this month. He also touched on the empty shelves during COVID and how the farm bill plays an important role in ensuring that we can produce the food, fiber, and fuel that America needs. (Farm Week Volume 52, No 28)
We’ve heard from many that this may be the first year the current generation of farmers will be relying heavily on crop insurance for revenue loss. Crop insurance is covered in the farm bill as a safety net, and other pro-farm programs such as ARC- County (Agriculture Risk Coverage) and PLC (Price Loss Coverage) are extremely important in loss of revenue circumstances.
The push for a bill to be passed in 2024 stems from the 2018 farm bill previously being extended a year to September 30th. However, with the fast-approaching election and hard lines drawn on several key issues, another extension is highly possible.
Come September, it is harvest time. As producers, this is when the process starts for thinking inputs for next year’s crop. There is little to no price security at this point with where the farm bill stands, due to the unknown details of different risk coverage programs as mentioned above.
Ultimately the 2018 Farm Bill needs a refresh. In an industry that is ever changing and evolving, there are programs and restrictions that are out dated.
Your Ag Banker’s Role
Our role as your Ag Banking Team here at CSB is to ensure we are up to date on the modifications made to safety net programs, farm lending, conservation programs, disaster assistance, etc., in order to help your operation succeed. We have also teamed up with outside resources, to help guide you through farm bill updates.
We will continue to monitor the status of the Farm Bill, and we encourage you to reach out to our team with any questions, concerns, or needs you have, as you navigate through this time in the Ag Economy.
Representatives from Illinois have been active on this topic, with Rep. Eric Sorenson being one of four Democrats on the House Ag Committee to vote yes during the markup of a farm bill. This markup provided for expansion of crop insurance coverage and enhanced credit resources for beginning farmers. The industry that feeds the world is an industry worth fighting for.
