Farm Leaders Push for Prop 12 Fix, Loan Increases in Skinny Farm Bill

House Ag Committee Chair “GT” Thompson wants to take action on a skinny farm bill this fall. On this special edition of Agri-Pulse Newsmakers at the Minnesota FarmFest, ranking members of both the House and Senate Ag Committees, Rep. Angie Craig and Sen. Amy Klobuchar, discussed their priorities within a skinny farm bill and their willingness to negotiate after nutrition program cuts in reconciliation.

Plus, AFBF President Zippy Duvall discussed his group’s priorities for the second Make America Healthy Again Commission Report due to be released next week, Rep. Brad Finstad defended the need to include a Prop 12 legislative fix in a skinny farm bill, and Rep. Michelle Fischbach reviewed President Trump’s trade negotiations so far.

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Please note: This transcript has not been edited.

Lydia Johnson: Welcome to Agri-Pulse Newsmakers. Where we aim to take you to the heart of ag policy. I’m your host, Lydia Johnson. This week, a special edition of the show from the Minnesota Farm Fest. We’ll have conversations with ranking members of both the House and Senate Agriculture committees. Thousands of industry leaders were gathered in southwest Minnesota for educational sessions policy discussions. And to see the latest AG innovations this week for those in rural America, there was much curiosity about benefits to farm country and President Trump’s one big, beautiful bill prospects for a skinny farm bill this fall, and the second Make America Healthy Again Commission report due out next week.

Senate Committee on Agriculture, Nutrition, and Forestry Ranking Member Amy Klobuchar

To begin, USDA recently announced a broad reorganization plan that would move over half the department’s Washington based staff outside of the Beltway. We asked Senator Amy Klobuchar, the ranking member on the Senate ag committee, if she was reassured about the relocation plan after the committee’s recent hearing and USDA Deputy Secretary Stephen Vaden’s comments at Minnesota FarmFest.

Amy Klobuchar: I’m really concerned about what’s going on. You know, we are down 15,000 employees and we’re down 1600 researchers because of terminations or because of early buyouts and the like. And I just don’t think that’s good for rural America. So I start from that basis.

And you look at the tariffs and all the inconsistencies and drying up markets, all of this is not good for rural. And then you look at what the farmers are dealing with anyway, which is of course input costs. Whether things that can’t they can’t control. And one thing we want to make sure is the USDA has their backs. So this reorg plan would move half of the employees into states that are not in Minnesota. In fact, they’re not even in the Upper Midwest. So you’d have people moving to Utah, which is number 37 for Ag in the country, to Indiana, Missouri, North Carolina, nowhere near us yet. They’re not in the room where it happened.

But I really want to get a farm bill done. And this is what I want to do. Number one, making sure that the loan limit increases for our farmers. It’s been set years and years ago, and costs have gone way up. Senator Hoeven and I have a legislation to take that from 2 million to 2.6 million for ownership loans. And also operating loans would go up as well. We’ve got to do more on allowing for grazing on CRP lands. Senator Thune and I have that bill. We can do more on ARC and reference prices. And that’s something that we could do in a farm bill that was harder to do some of this in the budget bill.

And then finally, we just got to have so many needs in rural America with housing, childcare, those kinds of things. So I’d love to get a farm bill done. I am the happy warrior in terms of working with my Republican counterpart. Bozeman. And I look at this and say, okay, that this stuff help Minnesota or doesn’t it? I’ll work with them when it does. Like, confirm Luke Lindbergh, our neighbor in South Dakota for the trade rep. I was a big supporter of his. I will, under the USDA, supported the secretary. I try very hard. To be positive when I can, because we’ve got to unite when it comes to rural. But when they do stuff that hurts our state or hurts rural, I’m going to stand up and call them out and try to make it better.

Lydia Johnson: And you mentioned many of those farm bill elements were included in reconciliation. But House Ag Committee chair G.T. Thompson says he still wants to move that skinny farm bill with those remaining elements to begin mentioning this fall. Do you think that there could be a restoration of cuts, specifically nutrition cuts and a skinny farm bill? You’d be pushing for that?

Amy Klobuchar: Well, that would certainly be good. I find it hard to believe that they will agree to restore all of them, but even some of them, that was a crazy deal. They ended up to get the vote of the Senator from Alaska. Reward at ten states. At this moment that have the highest error rate. And none of them were in the Midwest. So we’re going to have to have this huge cost shift of $85 million a year on snap. But other states like New York that should be paying 1.2 billion a year will have no shift because they have a higher rate. They mess up more. That’s pretty crazy. But that was the way they got Alaska and the vote of the senator from Alaska. So that’s just one example of how slap together this half baked plan was. It also is going to hurt our local grocery stores. And at a time when grocery prices are high because of these tariff policies and inflation. And, this is the last time you want to be hurting, particularly in rural America, veterans, people with disabilities, families and seniors. And so, you know, my hope is we could revisit some of that as well. But I’m not naive enough to think we’re going to change all of it.

Lydia Johnson: And you mentioned being optimistic about, you know, working with Senator Boozman. Collaborating to push this skinny farm bill. Do you think that your other Democratic colleagues will follow suit with your example on that and negotiate after these cuts?

Amy Klobuchar: I hope so, especially if we’re able to restore some of the SNAP funding. Because we’ve always done rural work on a bipartisan basis. That was one of the reasons I got on the ag committee to begin with. And it’s such an important part of Minnesota where the six biggest ag state in the country, the fourth biggest for ag exports. We are number one for sugar beets. We are number one, when it comes to turkeys, I always love saying that in Washington. And so we have a lot of stake in this working.

House Committee on Agriculture Ranking Member Angie Craig

Lydia Johnson: House Ag committee chairman GT Thompson says he’s planning to take action on the Skinny Farm bill this fall. We asked house ag committee ranking member Angie Craig if that goal is attainable.

Angie Craig: Well, we’re in the beginning process of that discussion, and Chairman Thompson and I met before I left Washington, and we had a conversation about the fact that I need to talk to my committee members about what their priorities would be in a skinny farm bill. Obviously, I wish we had done a full 12 title and five year farm bill instead of doing part of this in reconciliation, but there was a lot undone. We need to, you know, reauthorize CRP. global broadband, you know, some of the farm credit programs.

Lydia Johnson: Budget reconciliation included some cuts in nutrition spending. Now, do you think there will be a restoration of some of those cuts in the skinny farm bill?

Angie Craig: Well, look, we’re in the very early stage of talking about what we would like to see in the skinny farm bill. But, you know, I think when you cut $168 billion from the farm bill, it certainly makes it, for, excuse me, when you cut $168 billion from the nutrition title of the farm bill, it makes it harder to get, you know, full Democratic support for a skinny farm bill down the road. I’ve made that clear. But I also want to make sure that we’re at the table, that we’re working to see what we can do to move forward here.

Lydia Johnson: And, you know, some you mentioned meeting with Chairman Thompson already, but will you and your Democratic colleagues be willing negotiate on a skinny farm bill? You know, after those cuts? You know, I’ve heard you say that the coalition’s frayed Do you think it’s really frayed at this point?

Angie Craig: Well, the coalition normally gets 150 Democrats to vote for, 12 title, five year farm bill. I don’t think that’s possible. Is it possible to get it off the over the finish line? We’re going to have those conversations to see what exactly is going to be in it. So I think what’s in the skinny farm bill, how it’s paid for, is going to guide whether or not we’re able to get it across the finish line.

Lydia Johnson: And the House committee had a hearing right before we left for recess regarding proposition 12. During that hearing and hearing the comments from your fellow committee members. I mean, where do you think that lies in these farm bill discussions?

Angie Craig: Well, it is untenable for us to continue with 50 states having 50 different laws in this country. I personally think the Supreme Court, it was an interstate commerce issue, and that they should have dealt with it, but they didn’t. So, I’m looking for how we can resolve the issue. You know, you’ve got a lot of people who have already invested in becoming prop 12 compliant. So whatever we come up with, I think it needs to be bipartisan, and it needs to not punish the people who have made those investments already.

Lydia Johnson: And the USDA recently released a reorganization plan and ag secretary Brooke Rollins referred to that plan as 95% baked already. You know, the public comment period still has weeks remaining there. I’m curious, what are your thoughts on the plan and the administration steps to both create that plan and communicate it?

Angie Craig: Well, it was egregious that the administration didn’t notify or work with Congress at all. And apparently they didn’t talk to family farmers either when they did it. I fear that USDA is making some of the same mistakes they made in my first term in Congress in 2019, where, they proposed to move those jobs out of the District of Columbia. And what ended up happening, in fact, is that, the agency became much, much less productive. And I think in their plan, I mean, you heard the five regional cities, nowhere in the Midwest. So, you know, all of, Minnesota or Iowa or Illinois. I mean, frankly, I’m annoyed that they didn’t even consider, our input. And so I’ve asked the chairman to call a hearing, with USDA on their reorganization plan. So I think you’re going to see, like we saw in 2019, a lot of the people who, have the experience are not going to be willing to relocate. That’s what happened the first time 75% said, no, thank you. And so 90% of those jobs are already outside the, the Beltway, in the district. And so, I mean, I’m not sure what they’re thinking, but again, it feels a lot more chaotic than it needs to be.

American Farm Bureau Federation President Zippy Duvall

Lydia Johnson: The second Make America Healthy Again Commission report is due out next week. We asked American Farm Bureau Federation President Zippy Duvall about the group’s priorities in the report, and how the report could be different from the first edition.

Zippy Duvall: Well, the process has been different, definitely, because we’ve made our voice heard very loudly that we were disappointed that farmers weren’t at the table. Of course, the Secretary of Agriculture was there and Mr. Zeldin the administrative EPA was there defending agriculture in it. But we needed farmers at the table in the process. This time has involved us. We’ve had farmer groups, Farm Bureau group. I took five farmers myself across the country sit down and talk to them.  And we’ve been communicating back and forth, between our office and the people that’s responsible for writing this report. And we feel like we and we hope we’ve made a difference.

Lydia Johnson: And you mentioned you took many of your state presidents to meet with Callie Means, with Secretary Brooke Rollins Administrator Zeldin. You know, I’m curious in that meeting, how did the tone change? And, you know, what was that meeting like? And how do you think that those comments will be different moving forward?

Zippy Duvall: Well, I was very open and we went from a, a stage in the first report of being supportive of agriculture, but also criticizing some of the things that we did and to, how do we take this Maha movement and join it with agriculture to help agriculture move forward, especially in trying to keep, small, medium sized farms. And so hopefully we’ll see some of that, rise in this next report and hopefully it’ll be, more farmer friendly as far as the, crop protection tools that we have to use on our farms to be able to produce food fiber for this country.

Lydia Johnson: And you mentioned those crop protection tools. RFK junior has been specifically critical of those and seed oils. I mean, do you trust that he will, you know, go lighter on those in this second report?

Zippy Duvall: Well, trust it goes a long way, you know, and, but we’ve been, more of community, been able to communicate with them more. So makes us feel a little bit better about it. We feel like we’re in a good place, so we feel like we’ve made a difference. But we really won’t know that until we see what the report says.

Lydia Johnson: And you mentioned some of those precision agriculture technologies as well. Senator Roger Marshall held a roundtable on Capitol Hill recently, and that was a big focus was with precision ag tools. And, working together for soil health. And Maha. So, you know, I’m curious, within your recommendation list, to elaborate a bit more on the precision ag priorities within that.

Zippy Duvall: Yeah. The, you know, they’re important and and people, if they understand the science behind those precision ag tools that we use, then then, once they understand the science and then they have more understanding, more trust in the system, they’ll be a little allowing us to use it. So, you know, not only, with the MAHA committee, but I’ve also been at the opportunity to express that to the president.

Lydia Johnson: And turning gears, President Trump’s one big beautiful bill act was signed into law around the 4th of July. You know, I’m curious, you know, what are you hearing producers looking forward to most in that bill? There’s many very important provisions for farm country.

Zippy Duvall: Yeah. Well, you know, first place, first thing that really happened was we modernized the reference process, which needed to be done because, you know, the crop we’ve gotten around today is the most expensive crop we’ve ever had in the ground. And and those those reference prices weren’t, weren’t at a level to be helpful to us. So that that was fixed. And then of course, the the tax bill, part of the big one, big beautiful bill is a huge thing for farmers and ranchers and small businesses across this country.

Lydia Johnson: I’m curious here at Farm Fest, lots of sessions regarding the future of sustainable ag and the boost to the farm safety net and, everything in between. But from your perspective, you know, what are you hearing from producers here on the ground in Minnesota? What are their biggest concerns as we, finish the summer and move into the fall?

Zippy Duvall: Well, you know, are their attention is beginning to turn toward harvest and what the weather might doom at do to them as they try to harvest the crops. And then, of course, you know, what’s that crowd going to be worth? What value is it going to have? And then the next step is, I’ve got to go back to my banker and get an operating loan plant, next year’s crop. And that’s exactly what I told the president. The economics and farmland is very, very bad. Commodity prices are bad. And and it’s going to be very difficult if we don’t pull off some of these trade. Trade treaties and been able to level the playing field and thus be able to move our products. It’s going to be very difficult for our farmers moving into the future and getting operating loans and being able to keep the farm sustainable.

Minnesota Congressman Brad Finstad

Lydia Johnson: Optimism is building to make progress on the Skinny Farm bill this fall. We asked Minnesota Congressman Brad Finstad about his priorities and the skinny farm bill.

Brad Finstad: First, we’re you know, I’m very thankful that we were able to get a big portion of some of the really sticky issues done in reconciliation, but it’s important that we don’t lose momentum. And so if you look at the prop 12 fix, that’s really important to me. I have counties where I represent more pigs than people in southern Minnesota. We’re a pork powerhouse, and we have to make sure that political science from California doesn’t dictate the terms. And our farms in Minnesota. So prop 12 is an important one. Reforming, the the way the you out the USA, USDA and FSA, loan program works in regards to the Pace act, expanding or increasing the loan limit sizes, you know, to keep up with really the reality of today, some of those programs and the levels were established when maybe it was five, 6 or $7000 an acre for land, and our inputs were maybe a lot lower. Fast forward to today, you know, the dynamics of change. And we have to make sure the program chains changes with it. And then just the, you know, overall kind of what’s the next phase of conservation funding look like? What’s CRP 2.0 look like? I think that would be a great place in, Skinny farm Bill, for us to have that conversation, making sure that the highest, CRP contracts are going to the most vulnerable land. And maybe we take a little bit less of, of a CRP contract for the most productive, highly quality land in this country. So we’re not competing with our own federal government when it comes to land rent prices.

Lydia Johnson: And I’m curious, you began to mention that fix for proposition 12. I heard you speak at that hearing a few weeks ago before you went to recess. After those comments, after hearing the witness panel, you know, how optimistic are you that that that could be included in and that many of your Democratic colleagues who spoke against the during that hearing?

Brad Finstad: Well, we’ll be supportive of it in that skinny farm bill. Yeah. I mean, I think it was made loud and clear that it has to happen. I honestly believe prop 12 will be one of the most devastating things for middle and small, hog farmers in our country. I think it’ll be do more for consolidation than anything we’ve ever seen in the industry. And so if we don’t fix it, shame on all of us. And so I think there’s gonna be a lot of us that will put line in the sand and say, listen, we’re not going to move this skinny farm bill forward unless this is a part of the fix. So if there’s some anxiety on the other side of the aisle in regards to what our fix looks like today, I welcome them to the table. What can we do to get you on board? That’s my question. And my my ask to them.

Lydia Johnson: President Trump’s tariff policy have generated more than $30 billion in revenue just last month alone. I’m curious there’s some exemptions, but I is still waiting for some of the dealmaking with specific trading partners. Is farm country. You know, initially was very concerned about a potential trade war. Are they right to be concerned about a trade war? What do you see as an outlook looking forward in the in the trade space?

Brad Finstad: Well, I would say that, you know, the old threat of a trade war doesn’t necessarily seem to be playing out. I know it was good political rhetoric, and I know everyone is loving to run on political emotions right now, but it’s not reality. When you look at, you know, just the trade deals in the last few weeks, historic trade deals, I mean, if we have an opportunity to send 750 billion, dollars worth of ethanol to the UK, that’s a huge opportunity for farmers right here down the road. We will see that in the market. And by the way, farmers want the market, not a mailbox check. We don’t want to farm for some subsidized government program. We want a farm for a pure good market price. These trade deals will allow us to do that. We, you know, for right or wrong for the last 20 some years, we kind of became complacent and content with our head in the sand, saying, China’s just going to consume everything because there’s so many, you know, so much demand there. Well, that’s great until it’s not. And so I think this is also an opportunity for us just to diversify trade partners, create more opportunities, more people wanting to buy the products that we grow. We will see that in the price. And these trade deals are starting to happen. It’s been six months of some uncertainty and unknowing of what the economic lever of tariffs really is going to do, but we will start to hopefully see these things settle out and God willing, we start to see them in the price.

Minnesota Congresswoman Michele Fischbach

Lydia Johnson: Dozens of U.S. trading partners were stung with higher tariffs after President Trump’s August 1st negotiating deadline passed. We asked Minnesota Congresswoman Michele Fischbach for her thoughts on the president’s tariff negotiations so far.

Michele Fischbach: He is bringing people to the table, and that’s an incredible feat. You know, for four years, we didn’t have much going on with trade. And now we have people at the table. And I think that the deputy secretary mentioned in addition to that, that he we are talking ag. Ag is at the forefront of those negotiations. And so we are trying to open those markets. I think you mentioned Japan now taking U.S. rice. And, and with the U.K., we opened up beef and we’ve opened up ethanol. And so the ag issue is at the forefront of those negotiations. And so I think he’s the president is using the tariffs to bring those people to the table. I mean, numbers numerous countries are writing those letters to make sure that they are at the table.

Lydia Johnson: And you mentioned many of those countries coming to the table, but the administration has mentioned some tariff exemption list, which are critical for many ag and food products. Given your ag heavy district, you know, what tariff exemptions are you specifically pushing for?

Michelle Fischbach: Well, you know, we’ll continue to there’s some there’s in addition to the ag that we’re looking at, you know, there are some manufacturing, but we’ll continue to push those and work with the work with the administration to make sure that we are that we are meeting the needs.

Lydia Johnson: Have you been given, you know, kind of an indication of how those tariff exemption lists are being assembled or, you know, for each for each country, each trading partner?

Michelle Fischbach: You know, I will say I think they’re part of the negotiations. I think, number one, they’re part of the negotiations. But in addition to that, you know, our our trade subcommittee continues to look at those two and encourage whatever we can do to make sure that we like I said, that we’re meeting the needs of the community.

Lydia Johnson: And economists have predicted the farm country will begin feeling the effects of those tariff policies come harvest time. You know, do you agree with that? And is farm country still justified to be worried about a potential trade war?

Michelle Fischbach: Well, you know, I think what we are, what we’re taking a look at, and we were talking a little bit about it earlier about if there is a need, you know, in 2017, they came through with aid for those farmers that were struggling with the tariff issues. I’m hoping that it doesn’t get to that. I hope they certainly that we are able to deal with that well before that issue. But, you know, we will continue to monitor and I think that’s and and hearing from farmers hearing the effects of it and continuing that conversation and continuing those to pursue those is an important part of the whole negotiation process.

Lydia Johnson: And we’re at Minnesota Farm Fest. So are you hearing concerns from farmers about trade, about tariffs? What are the biggest concerns that you’re hearing from from your constituents this week here at the Farm Show?

Michelle Fischbach: You know, we do hear about the low prices. Nothing necessarily that we can always do about that. But I think what we are hearing about too, is is the wins that we did have in that, in the reconciliation package with those taxes. We had heard a lot about that over the years. The reference prices, the information or the the provisions in, that were included from the farm bill.

Lydia Johnson: Thanks for joining us for another episode of Agri-Pulse Newsmakers. We’ll be back in Washington next week with a special edition of the show, diving into the details of the new Make America Healthy Again Commission report for Agri-Pulse

I’m Lydia Johnson. Thanks for watching.