The clock is ticking as the deadline for the 2023 farm bill approaches, and ag economists are expressing doubts about its timely completion. The latest survey in the Ag Economists' Monthly Monitor reveals that a majority of economists believe it is "very unlikely" or "unlikely" that a farm bill will be written before the current legislation expires on September 30, 2023. While hopes remains for a finished bill by January 1, 2024, time is running out.
Congressional hearings and listening sessions are actively taking place in both the House and Senate to draft the new five-year bill. However, this week, Congress may seize the opportunity to propose amendments to the fiscal 2024 agriculture appropriations bill, potentially leading to test votes on farm bill matters. The debate on the measure could commence as early as next week.
Key areas of debate include the availability of funding and how climate goals outlined by the current administration will shape the 2023 farm bill. A recent think tank report by University of Maryland professor Erik Lichtenberg suggests that the USDA could reorient its major land stewardship programs, such as the Conservation Reserve, the Environmental Quality Incentives Program (EQIP), and the Conservation Stewardship Program (CSP), to combat climate change. However, such a move is deemed risky as it may impact the support for these programs.
With no additional funding allocated for the farm bill this year, members of Congress are exploring creative solutions to secure funds. Senate Ag Chair Debbie Stabenow, D-Mich., has suggested the possibility of reallocating around $20 billion from the party's climate and tax credit law to more general spending in the upcoming farm bill.
The current farm bill debate differs significantly from the 2018 farm bill, enacted during a period of low commodity prices and less burdensome production costs. According to the Ag Economists' Monthly Monitor, high production costs are currently the biggest challenge for farmers.
While economists expect further financial challenges in the next 12 months, views differ on the extent of pressure farmers will face, as well as the outlook for U.S. crop production and commodity/feed prices.
The Ag Economists' Monthly Monitor, conducted anonymously by nearly 50 agricultural economists, offers valuable insights representing both the private and public sectors. It is a joint effort between the University of Missouri and Farm Journal, with the university collecting and analyzing the data, while Farm Journal distributes the results to provide a comprehensive understanding of the sector.
Source : wisconsinagconnection