Emily Hatch is a law student in the HLS Food Law & Policy Clinic and a guest contributor to this blog.
On February 9, the Senate Committee on Agriculture, Nutrition, and Forestry hosted its second hearing on the 2023 Farm Bill, which focused on commodity programs, crop insurance, and credit. In her opening remarks, Chairwoman Debbie Stabenow highlighted the fact that some of the United States’ earliest agricultural policies were credit programs adopted nearly a century ago. Likewise, she pointed out that the federal government has long administered programs to assist farmers in responding to weather disasters and price volatility, underscoring the sensitive and uncertain nature of the farming industry.
That uncertainty has been in the spotlight since the adoption of the 2018 Farm Bill, the Agricultural Improvement Act of 2018. In the last three years, Chairwoman Stabenow emphasized, there have been fifty separate weather disaster events costing at least $1 billion to address. Producers have also suffered fallout from trade wars and global market uncertainty, and though commodity prices are currently at historic highs, input costs are also more expensive. Ranking Member John Boozman echoed these concerns, worrying that American producers are only a trade war, natural disaster, market downturn, or geopolitical conflict away from losing their livelihoods. The Chair and the Ranking Member asserted a shared commitment to strengthening the farm safety net to respond to these threats.
The hearing featured testimony from United States Department of Agriculture (USDA) Under Secretary for Farm Production and Conservation Robert Bonnie, who highlighted the agencies’ efforts to expand coverage and services. Bonnie was joined by USDA Risk Management Agency (RMA) Administrator Marcia Bunger, who is the first Asian American and first woman to serve as RMA Administrator, and USDA Farm Services Agency (FSA) Administrator Zach Ducheneaux, who is a fourth-generation rancher on the Cheyenne River Sioux Reservation.
Many attendees at the hearing emphasized that farmers and ranchers depend on Farm Bill–related credit and insurance programs to get operations off the ground and to recover from natural disasters. The last two Farm Bills included various innovations to support producers and make the safety net more equitable: permanent livestock disaster programs (LIP, ELAP, and LFP), permanent authorization for buy-up coverage under the Noninsured Crop Disaster Assistance Program, whole farm insurance, and more. Senators attending the February 9 hearing offered suggestions for how the 2023 Farm Bill can continue this momentum on farm insurance and credit programs. For example, Senator Tina Smith of Minnesota emphasized the importance of loan access for beginning and underrepresented farmers. This priority is strongly shared by Administrator Ducheneaux, who explained that FSA has made an effort to simplify the application process in order to lower barriers to access. In a more niche request, Senator Cindy Hyde-Smith of Mississippi discussed the possibility of expanding the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) to cover economic losses due to bird depredation for catfish producers.
As reflected in FBLE’s Farm Viability Report, FBLE shares policy priorities with the senators and administrators present at the hearing. One FBLE focal point is farm safety net reforms that promote fair competition. That goal was also voiced by Senator Chuck Grassley, who pointed out that “the largest 10 percent of farmers receive nearly 70 percent of the subsidies from Title I programs,” which contributes to the difficulties that young and beginning farmers experience in getting operations off the ground. In addition, FBLE advocates expanding the Whole Farm Revenue Protection (WFRP) insurance program. In responding to Senator Raphael Warnock’s and Senator Amy Klobuchar’s questions about supporting specialty crop producers, Administrator Bunger indicated that WFRP expansions and educational efforts are underway to ensure that this program is accessible to even more producers. Given bipartisan interest in supporting small farmers and producers as well as the increasing frequency of natural disaster events, updates to these critical programs are sure to be a highlight of this year’s Farm Bill process.
The views and opinions expressed on the FBLE Blog are those of the authors and do not necessarily reflect the official policy or position of FBLE. While we review posts for accuracy, we cannot guarantee the reliability and completeness of any legal analysis presented; posts on this Blog do not constitute legal advice. If you discover an error, please reach out to contact@farmbilllaw.org.
