Time is running out for Congress to pass a farm bill that would address an agricultural economy that is in a downward spiral. More than 300 agricultural organizations, including the American Farm Bureau Federation shared that message with Senate and House leadership in a letter sent today.
It is critical that Congress pass a new, modernized farm bill. Farmers and ranchers are facing multiple years of operating in the red, which threatens their ability to continue farming.
“Throughout the life of the current farm bill, producers across the country have experienced powerful headwinds, ranging from extreme weather to high input costs to uncertain global demand to supply chain disruptions,” the organizations wrote. “Farmers are struggling, and the decline in the farm economy is real. Estimated (inflation adjusted) 2024 net farm income for U.S. agriculture is projected to be down $55.61 billion, a more than 27% drop from the 2022 level, according to the U.S. Department of Agriculture (USDA). Since the beginning of the year, the harvest price of major crops traded on the Chicago Mercantile Exchange and the Intercontinental Exchange have fallen by an average of 21% while total production costs remain near record levels.”
Since the passage of the 2018 farm bill, farmers have endured a pandemic, global unrest, a trade war with China and supply chain challenges. USDA forecasts farm sector debt to reach almost $541 billion in 2024, the highest inflation-adjusted level in more than 50 years.
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