LITTLE ROCK – Amid worries that an expired Farm Bill would leave farmers without an economic safety net, Congressional leadership released a Continuing Resolution Tuesday that includes $10 billion for crop producers.
“Two key elements of this payment mechanism differ from the FARM Act,” Biram said. “The payment factor has been reduced from 60 percent to 26 percent of the estimated economic loss. However, a minimum payment has been included.”
Biram said the minimum payment will be the product of 8 percent of the statutory reference price laid out in the 2014 and 2018 farm bills and the national Price Loss Coverage payment yield to be determined by USDA.
“Among the nine program crops that are relevant to farmers in the southeast, three should expect to see the minimum payment be greater than the estimated payment,” Biram said. “This includes barley, peanuts and rice. The other six program crops considered will receive the estimated payment per acre. These include corn, cotton, grain sorghum, pats, soybeans and wheat.”
Although the resolution has been the subject of much discussion, Biram said it is important to remember it still has to pass.
“The deadline to pass a funding bill to avoid a government shutdown is Dec. 20,” he said. “While Speaker Mike Johnson (R-LA-04) and Senate Majority Leader John Thune (R-SD) have both voiced support for economic assistance to farmers, there has been opposition from GOP hardliners who have voiced frustrations over not pushing funding issues to 2025.
“Economic assistance seems likely, but we will not know with full certainty until the bill passes. The situation is very fluid,” Biram said.
