Farm Bill Reauthorization Outlook

Overview

Approximately every five years, Congress is tasked with revising and reauthorizing the Farm Bill, a sprawling legislative package that sets the priorities for the U.S. agricultural sector to be implemented by the U.S. Department of Agriculture (USDA). The current version– titled the Agricultural Improvement Act of 2018 and totaling $428 billion–is set to expire on September 23, 2023, and Congress has already begun the reauthorization process by holding hearings with stakeholders. As the 2022 midterm elections approach, there is increased focus on what the priorities for the bill might look like should there be a change in who holds the gavel in one or both chambers. 

The first Farm Bill was enacted in 1933 as a part of Franklin Delano Roosevelt’s New Deal to address the collapsed commodities and agricultural markets and to ensure stability in food supply in the aftermath of the Great Depression and the Dust Bowl. The original bill included just two titles but has since grown substantially in size and scope. It became an omnibus bill in 1973 with the addition of a nutrition title, which funds many federal programs and accounts for over 75 percent of the bill’s total funding. The 2018 version modified certain farm commodity programs, expanded crop insurance, and reauthorized and revised nutrition assistance programs. It contains 12 titles, and it is expected to maintain that number in the 2023 bill. They are: 

1. Title I: Commodities - Price and income support and agricultural disaster assistance.

2. Title II: Conservation - Programs to help implement natural resource conservation.

3. Title III: Trade - Agricultural exports and international food aid programs.

4. Title IV: Nutrition - The Supplemental Nutrition Assistance Program (SNAP) along with smaller nutrition programs.

5. Title V: Credit - Federal loan programs and private loan guarantees.

6. Title VI: Rural Development - Programs to help develop rural economic growth and infrastructure.

7. Title VII: Research, Extension, and Related Matters - Funding for agricultural research and education programs.

8. Title VIII: Forestry - Forest conservation and management programs run by USDA’s Forestry Service.

9. Title IX: Energy - Programs that encourage the production of crops for renewable energy systems.

10. Title X: Horticulture - Specialty crop production and organic farming certification programs.

11. Title XI: Crop Insurance - Subsidies to provide federal crop insurance.

12. Title XII: Miscellaneous - Advocacy and outreach to beginning and socially disadvantaged farmers and ranchers and labor safety and workforce development.

2023 Farm Bill Considerations, Highlights, & New Additions

Since the last reauthorization in 2018, the country has faced myriad challenges including the COVID-19 pandemic, supply chain issues, rising food costs due to inflation, the increasing impact of climate change, and the war in Ukraine, specifically regarding grain exports. These issues, among others, will factor into lawmakers’ thinking as they set agricultural priorities in 2023. 

It is expected there will be intense debate on the cost and scope of certain programs given ongoing tensions between Democrats and Republicans on federal spending, which may create pressure on and competition between farm policy stakeholders. Because the Commodities, Conservation, Nutrition, and Crop Insurance titles are anticipated to account for 99 percent of Farm Bill spending, it is worth examining these sections in depth. 

Commodities: The current approach of commodity support programs is direct income and price support payments. The 2018 Farm Bill authorized several of these programs through 2023, including the Price Loss Coverage Program (PLC), which augments revenues during low market price periods, and the Marketing Assistance Loan Program (MAL), which helps farmers manage their cash flow. 

During negotiations for the upcoming reauthorization, lawmakers are expected to focus on three issues regarding this title: distribution of payments across eligible commodities, timeliness of payment, and payment limits and eligibility criteria. Specifically, Congress will likely discuss whether the triggers for these payments are appropriate given current levels of commodity prices and whether they should tighten payment limits for commodity support programs to save money and reduce payments to large farms. 

Conservation: The Biden Administration has made responding to climate change a key priority and has seen recent success with the passage of the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA). While no conservation program in the 2018 Farm Bill was specifically designed to mitigate climate change, most would be able to incorporate climate goals within their current structures. Thus, Congressional Democrats may hope to utilize some of these programs to aid in carbon reduction efforts and other environmental goals, including environmental justice, a key priority of President Joe Biden’s Justice40 initiative. This would be consistent with the goals of the original Build Back Better (BBB) Act, which would have increased funding for existing conservation programs. In 2018, demand for resources in the conservation programs exceeded the funds available, which may aid in the argument for expanding these programs. Additionally, there has been discussion of the role of agriculture in carbon markets and whether the USDA should standardize voluntary carbon markets for agriculture and forestry.

Nutrition: As the Nutrition title has historically accounted for 75 percent of Farm Bill spending, it is expected to be closely scrutinized during the reauthorization process. A majority of the funding goes to SNAP, an entitlement program serving roughly 40 million Americans. This program has often divided Democrats and Republicans, particularly during the pandemic when new programs and benefits were added. Pre-COVID-19 (Fiscal Year 2019 (FY19)) SNAP food costs were $56 billion, while the projection for FY22 is $118 billion, driven mostly by increased monthly benefits as opposed to increased participation. Additionally, the 2018 Farm Bill required USDA to review the Thrifty Meal Plan, which helps set the amount of monthly benefits for SNAP participants. Effective October 2021, SNAP base benefit amounts were increased by 21 percent, a six percent increase from the ongoing pandemic stimulus. At the recent House Appropriations Committee FY23 Agriculture, Rural Development, and Food and Drug Administration Appropriations Bill full committee mark-up, Republicans expressed concern with the unlimited spending authority given to the USDA at the end of the fiscal year. The 2014 and 2018 Farm Bills changed very little with SNAP funding and eligibility, but it is likely that Congress will consider whether to use this upcoming Farm Bill to extend or even make permanent some of the SNAP changes made during the pandemic. 

Many current and former lawmakers look to the Nutrition title as the make-or-break section of the bill. Former Senate Agriculture Committee Chairman Pat Roberts (R-KS) puts it succinctly: “You’re not going to pass a Farm bill without an appropriate [SNAP] program.” Former House Agriculture Committee Chairman Collin Peterson (D-MN) also warned this Congress that the way to “make sure you don’t have a Farm Bill” is to include unsatisfactory SNAP provisions. 

Outlook

As one of the largest bills that Congress routinely passes, the Farm Bill requires months of hearings and negotiations. Importantly, the reauthorization process for the 2023 Farm Bill is starting in the midst of the 2022 midterm election cycle. As polls indicate that Republicans are likely to take control of the House, and potentially the Senate as well, Democrats are eager to cement priorities for the bill as early as possible. However, some Republicans have indicated they want to hold off on any negotiations until after the midterm elections. 

Already, the House and Senate Agriculture Committees – chaired by Rep. David Scott (D-GA) and Sen. Debbie Stabenow (D-MI), respectively – have held multiple hearings to solicit feedback from stakeholder groups. So far, it seems like conservation and carbon-reduction will play a key role with Rep. Abigail Spanberger (D-VA) hoping to pass her Growing Climate Solutions Act, which would allow farmers to generate revenue from environmentally conscious practices. However, if Democrats lose control of the House or the Senate, it is likely the Agriculture Committees will be chaired by Rep. Glenn Thompson (R-PA) and Sen. John Boozman (R-AK), the current ranking members. Rep. Glenn Thompson (R-PA) has already expressed his skepticism at the Democratic push for increasing funding for climate related agricultural programs. An additional key negotiator will be Secretary of Agriculture Tom Vilsack, who has stated that his priorities include climate smart agriculture. 

The Farm Bill is usually passed with bipartisan support, meaning that the bill will likely be reauthorized regardless of which party controls Congress. The final conference report of the Agriculture Improvement Act of 2018 was passed in the House on a vote of 369-47 and in the Senate by 87-13. A formal schedule for the 2023 Farm Bill has not been released, but from introduction to passage, the 2018 Farm Bill took about eight months of negotiations. If the current timeline is similar, it would pass right before the last Farm Bill expires on September 23, 2023.