Farm Bill Side-By-Side

A Comparative Look at Approaches by the House and Senate

As the November general election approaches, the countdown is on with only 13 days both chambers of Congress are in session to reconcile the distinct farm bill proposals from the House and Senate. National Sorghum Producers, and the agricultural community at large, remains vigilant, stressing the necessity of a robust framework to ensure continued support. Differences in safety nets, conservation efforts and crop insurance between the proposals highlight the urgency and complexity of reaching a compromise that secures the economic stability and prosperity of farm country. Here’s a look at the proposals as they currently stand at the end of July headed into August Recess.

Included in All Three:

  • Doubled MAP/FMD funding
  • Voluntary base acre update
  • Authorization for biofuel orphan programs
  • Increased support for beginning farmers and ranchers

Points of Contention:

  • Climate guardrails in Conservation Title/IRA funds
  • Use of CCC dollars – who has the authority under Section 5
  • SNAP payment error rates and cuts to the Thrifty Food Plan
  • The timeline forward is tricky given election timelines, appropriation schedules and differences between the Senate, House and partisan politics

HOUSE

SENATE

SENATE
Chairman Thompson’s Farm, Food, and National Security Act of 2024
Passed through committee via a bipartisan vote on May 23, 2024		Chairwoman Stabenow’s Rural Prosperity and Food Security Act of 2024
Released on May 1, 2024		Ranking Member Boozman's Farm Bill Framework
Released on June 11, 2024
In Numbers$1.5 trillion legislative packageConceptual - no score yet
Safety Net
  • Commodities receive increases to statutory reference price calculated by increases in cost of production

  • Agriculture Risk Coverage level increased to 90% and the maximum payment rate is increased to 12.5%

  • Sorghum’s proposed statutory reference price is $4.40, an 11% increase from current

  • The marketing assistance loan for sorghum isincreased by $0.12

  • 40% increase in the likelihood of receiving assistance through ARC or
    PLC, national increase in average net indemnity by over 20%

  • Effective reference price calculation changed to simple 5-year average

  • Only provides increase for some commodity statutory reference prices (Sorghum does not appear to be one of these commodities)

  • PLC payments may not exceed 20% of the effective reference price

  • Introduces a 110% escalator based on cost of production for marketing assistance loans

  • Restricts commodity payments for entities with an Adjusted Gross Income exceeding $700,000

  • Agriculture Risk Coverage coverage level increased to 88% (These policy changes are estimated to result in loss for sorghum)

  • Average increase of 15% to statutory reference price

  • Effective reference price calculation changed to 88% of 5-year olympic average and escalator increased to 120%

  • Increased coverage level under Agriculture Risk Coverage
ConservationReallocates Inflation Reduction Act dollars, without climate guardrails, into Title II, Conservation. This investment builds into the 10-year baseline, which will ultimately increase funding for future farm billsReallocates Inflation Reduction Act dollars, without climate guardrails, into Title II, Conservation. This investment builds into the 10-year baseline, which will ultimately increase funding for future farm bills
  • 25% increase in funding for conservation programs

  • Reallocated Inflation Reduction Act dollars in the Conservation Title without climate guardrails
Crop InsuranceSupplemental Coverage Option (SCO) coverage level increased to 90% and premium subsidy increased to 80%Supplemental Coverage Option (SCO) coverage level increased to 88% and premium subsidy increased to 80%
  • Supplemental Coverage Option (SCO) coverage level increased to 90%

  • Increased premium support for crop insurance at the 70% and 85% coverage levels
Points of ConcernThere is a disagreement with the Congressional Budget office on the scoring of policy changes in the House Farm Bill. The House Ag Committee had calculated $50 billion in savings through the reallocation of Commodity Credit Corporation dollars, while the CBO scored these savings at $12 billion, resulting in a $38 billion disparityEstimates show Stabenow’s bill could reduce the safety net for crops across the High Plains. Sorghum is estimated to lose 10% to the baseline over a 10-year period

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This story originally appeared in the Summer 2024 Issue of Sorghum Grower magazine.

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