Bill Boosts Livestock Subsidies but Cuts Nutrition Aid for Low Income Families
The passage of the new megabill brings a significant shift in U.S. agricultural funding priorities, offering expanded support for meat and dairy producers while reducing federal aid for low-income families through SNAP.
Under the Livestock Indemnity Program, farmers will now receive full compensation for livestock killed by predators protected or reintroduced by the government—a jump from the previous 75 percent.
Critics like Vincent Smith of the American Enterprise Institute warn this could encourage riskier practices. Smith remarked, “In principle, every time you reduce a deductible, you increase the likelihood that the mafia will burn down the restaurant.”
The Livestock Forage Disaster Program has also been expanded. Farmers can now access funds after just four weeks of drought, instead of eight, and receive double the previous payments.
The program now includes compensation for unborn livestock deaths, with increased funding for livestock disease prevention through the Animal Health Protection Act.
The Dairy Margin Coverage program, which helps dairy farmers cope with market price swings, has been extended until 2031.
The bill also adjusts premium costs, offering larger dairy farms producing between five and six million pounds of milk annually reduced premium rates—benefiting medium-scale factory farms the most.
The bill introduces a directive for the USDA to develop a pilot insurance program for contract poultry farmers, providing coverage for rising utility costs caused by extreme weather. This move acknowledges the financial strain often experienced by contract poultry growers.
On top of these changes, the megabill increases crop insurance funding by $6.3 billion over ten years, raises payment limits, removes income caps, and enhances reference prices. It also introduces new tax benefits for farmers and boosts agricultural trade promotion funding.
The SNAP program faces cuts in federal funding, stricter eligibility rules, and increased work requirements—changes likely to impact access to healthy food for many American families.
With many typical farm bill provisions absorbed into the megabill, the need for a comprehensive farm bill remains in question. Yet, key policies like the suspension of outdated price support laws still require urgent attention.
The megabill’s emphasis on aiding large-scale meat and dairy operations continues a government trend of supporting factory farms at public expense, with little focus on sustainability or equity.