After several years of contentious political fights, the U.S. Senate passed the long-awaited farm bill. But the nearly $1 trillion farm policy will bring about several changes for Texas farmers and ranchers.
The new legislation eliminates direct payments, which have been in place for nearly 20 years. Instead, programs that will only compensate farmers if they lose money will be implemented, according to the Texas Tribune.
Farmers will now have the choice to enroll in two different crop insurance programs, which issue payments either when prices drop below a certain level or when their overall revenues dip below a calculated average based on previous years of local crop data. After selecting a program, farmers will not be able to change their mind each year but will be locked into their choice until the farm bill expires, according to Texas A&M AgriLife Extension Service Economist Jason Johnson.
The farm bill now heads to President Barack Obama, who is expected to sign it.