By Jamie Martin
Amid concerns that an expired Farm Bill would leave farmers without crucial support, Congressional leaders introduced a Continuing Resolution this Tuesday that includes substantial aid for crop producers.
The resolution aims to provide a vital economic safety net through a $10 billion package following the framework of the Farmer Revenue Assistance Mitigation Act.
This package calculates payments based on key factors like the national season-average price, the 10-year national average yield, and the 2024 cost of production.
A notable change in the payment mechanism includes reducing the payment factor from 60 percent to 26 percent of the estimated economic loss but introducing a minimum payment level.
This minimum payment will be calculated as 8 percent of the statutory reference price from previous farm bills, combined with the national Price Loss Coverage payment yield, as determined by the USDA.
This structure ensures that barley, peanuts, and rice producers, prevalent in the southeast, will likely receive a minimum payment that exceeds the estimated economic loss, whereas other crops like corn and soybeans will receive the estimated payment.
The resolution's passage is not guaranteed, with a looming deadline of December 20 to prevent a government shutdown. While there is significant support from leaders like Speaker Mike Johnson and Senate Majority Leader John Thune, opposition remains within the GOP, pushing to defer funding decisions to 2025.
For more information on agricultural research, visit Arkansas Agricultural Experiment Station website.
Categories: National