Crop Insurance and Farm Bill Updates

By Scout Nelson

The Farm Bill provides vital support to agriculture through risk management, nutrition assistance, conservation, and research funding. Although typically renewed every five years, the last full farm bill passed seven years ago. Due to delays in 2023 and 2024, Congress has only approved one-year extensions, leaving many awaiting a full reauthorization.

Currently, the House of Representatives is considering a budget reconciliation bill that may include updates to farm programs. Republican members of the House Agricultural Committee are proposing changes from last year’s committee farm bill.

These include increases in reference prices, higher revenue guarantees under Agricultural Risk Coverage (ARC) and raised maximum payment rates in ARC. Crop insurance adjustments are also proposed, such as higher premium subsidies for beginning farmers and increased coverage levels for Whole Farm Revenue Protection and Supplemental Coverage Option (SCO).

These changes were previously estimated to cost between $50 and $53 billion over ten years. If included, a separate farm bill focusing on conservation and other areas could follow later.

In 2023, Nebraska producers received $624 million in farm program payments, up from 2022 but much less than the $1.35 billion in 2021. Government support made up 7% of net farm income last year, the lowest since 2011. However, this share may rise in 2025 due to recent ad-hoc assistance. Conservation payments and ARC and PLC program funds also contributed significantly.

Nutrition programs, especially the Supplemental Nutrition Assistance Program (SNAP), consume about 80% of farm bill funding. In Nebraska, around 155,000 people received $332 million in SNAP benefits in 2024. Proposed budget cuts to SNAP have sparked debate, although the House Agriculture Committee chair hopes these cuts will be fewer.

Farm program payments as a share of total government farm support have declined in recent years. Ad-hoc assistance now makes up the majority of aid.

This decline is partly because program triggers have not kept pace with market changes, motivating agricultural groups to push for program updates. The coming months will be crucial in shaping farm support policies for the future.

Photo Credit: nebraska-farm-bureau