Budget Bill Expands Farm Program Support

By Scout Nelson

The House Agriculture Committee has approved its portion of the budget reconciliation bill, which introduces critical updates to existing farm and nutrition programs. This proposed legislation includes several provisions from last year’s Farm Bill and is expected to impact producers and rural economies across states like Nebraska.

One of the bill’s major changes includes a 10% to 20% increase in reference prices for key commodities. Corn, soybeans, wheat, and grain sorghum will all see updated price supports to help stabilize farm income.

A one-time allocation of new base acres will also be introduced. This benefits producers without current base acres or those who's planted or prevented plant acres have outpaced existing allocations. The cap is set at 30 million acres, and a pro-rated system will be used if requests exceed that.

The Dairy Margin Coverage (DMC) program will also be updated. The definition of production history will be revised, and coverage limits will rise from 5 million to 6 million pounds. A 25% premium discount will be offered to those committing from 2026 through 2031.

For livestock producers, the bill proposes compensation for animal losses. Predation losses will be covered at 100% market value, while adverse weather and disease losses will be covered at 75%, with values set by the USDA. A supplemental payment is included for unborn livestock losses after January 1, 2024.

The Federal Crop Insurance Act will also be enhanced, with better coverage and subsidies. A new Poultry Insurance Pilot Program will protect poultry growers from weather-related financial challenges.

Additionally, the bill redirects $14 billion in unused IRA conservation funds into working lands programs and introduces changes to SNAP funding, requiring states to contribute more starting in 2028.

This legislation now moves to the full House for further debate before a vote expected by Memorial Day.

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