Democrats in Congress Propose $10 Billion in Economic Aid to Farmers

With Congress due to adjourn in 10 days, Democrats proposed $10 billion in economic assistance to farmers nationwide to buffer the impact of lower commodity prices. Senior farm-state Republicans have said substantial aid is needed — $15 billion was mentioned on Wednesday — but House GOP leaders reportedly objected to the offset Democrats would use to pay for the aid.

The economic assistance would be wrapped into an extension of the 2018 farm law, which expired in September 2023 and has been extended once already. “With Congress indicating it will not pass a renewed five-year farm bill before the end of the year, it is even more essential to provide substantive assistance to commodities impacted by current economic challenges,” said the National Farmers Union.

The drive for farm aid is underway at the same time that House Democrats are nearing a decision on the three-way race to serve as Democratic leader on the Agriculture Committee in the new session, beginning on Jan. 3. Georgia Rep. David Scott, the first Black to chair the committee, is running for another term as ranking Democrat. The Congressional Hispanic Caucus endorsed Rep. Jim Costa of California on Wednesday. Minnesota Rep. Angie Craig is also running. Democrats have favored new blood for leadership in two other committee races.

Under the Democratic proposal, nearly $8.8 billion would be paid to growers of major row crops. Producers would also see slightly more than $1 billion in reimbursements of crop insurance premiums and fees for two similar risk management programs. The expense would be offset by shifting billions of dollars of climate funding into USDA conservation programs.

Texas would be the top recipient, with $1 billion in aid, followed by Iowa ($860 million), Kansas ($850 million), Nebraska ($650 million), and North Dakota ($640 million). Every state except Alaska and Hawaii would get a share of the money. “This is real help that will reach farmers by the spring planting season,” said a Democratic post on social media.

Sen. Cindy Hyde-Smith said farmers need financial aid on top of the disaster relief proposed by President Biden. “Farmers need market loss assistance, too. We need an additional $15 billion for market losses,” said Hyde-Smith, a Mississippi Republican, on the Senate floor.

“That’s a level of economic assistance Sen. Boozman would support,” said an aide to John Boozman, the senior Republican on the Senate Agriculture Committee. Boozman and House Agriculture Committee chairman Glenn Thompson have called for “substantial economic aid” for farmers in the face of lower farm income. Hyde-Smith said the House and Senate Agriculture committees were working on a market loss package of around $15 billion.

Hard-line House Republicans opposed the idea of shifting climate funds into the USDA baseline because they want to rescind as much funding as possible from the 2022 climate, healthcare, and tax law, a Biden legislative landmark. House Speaker Mike Johnson reportedly told farm-state Republicans that an extension of the farm bill cannot include economic aid.