By Jessica Domel
Multimedia Reporter

With declining net farm income, a growing agricultural trade deficit, inflation and low commodity prices taking their toll on the agricultural economy, farm organizations are once again urging Congress to roll up their sleeves and pass a modernized, five-year farm bill to provide certainty to America’s farmers, ranchers, rural communities and families.

On Wednesday, the Senate Committee on Agriculture, Nutrition and Forestry held the first of several hearings planned on the agricultural economy.

American Farm Bureau Federation (AFBF) President Zippy Duvall told the committee while farmers appreciate the farm bill extension and economic assistance passed in a continuing resolution in December, they need an updated farm bill.

“Farmers and ranchers have faced unprecedented volatility in recent years. From pandemic lockdowns and supply chain disruptions to highly pathogenic avian influenza and record-high input costs, farmers have dealt with a barrage of impacts to their farms outside of their control,” Duvall, a Georgia farmer, said.

It has been seven years since Congress passed a farm bill. The nation is currently operating under a second, single-year extension of the 2018 Farm Bill.

“In 2025, farmers will plant one of the most expensive crops ever. Thanks to rising interest rates, higher energy prices and input costs that have gone unchecked, choosing whether to plant or not is one a decision that many farmers face,” Duvall said. “It is in this context that we are asking for an increase to the farm bill’s Title I safety net.”

As far as a new farm bill goes, Duvall said AFBF supports an increase in baseline funding commitments to farm programs, maintaining a unified farm bill that includes nutrition programs and farm programs together and prioritizing funding for risk management tools, which include both federal crop insurance and commodity programs.

These updates are needed, Duvall said, as the U.S. Department of Agriculture’s most recent Farm Sector Income Forecast shows a $41 billion decline in net farm income. That’s down nearly 25% from 2022.

Crop prices have also fallen.

“Since crop prices peaked in 2022, they have taken a nosedive,” Duvall said. “Corn and wheat are down 37%. Soybeans are down 28%, and cotton is down 22%.”

At the same time, input costs have remained high.

“As compared to 2020, the cost to produce an acre of corn has grown by nearly 30% nationally,” Duvall said. “The combination of low crop prices and high input costs has many farmers facing losses on every acre they plant.”

Despite the increased costs, Duvall said 2024 payments to farmers are projected to be the lowest since 1982.

In addition to sharing the need for a farm bill, Duvall also urged Congress to address expiring provision in the Tax Cuts and Jobs Act.

“We also can’t ignore that at this time of great economic uncertainty, farmers, ranchers and many other small businesses are staring down what may be the largest tax increase in American history,” Duvall said. “Failing to extend the expiring provisions of the Tax Cuts and Jobs Act would take billions of dollars out of farmers’ pockets when they have no dollars to spare.”

The Tax Cuts and Jobs Act included several provisions that impacted pass-through businesses like farms and ranches, including one that increased the estate tax, or death tax, exemption.

Duvall also asked Congress to address “the greatest domestic policy threat to American agriculture”—a declining agricultural labor force.

“In short, the costs are too high, the domestic willingness to work is too low, and family farms are closing down. This is heartbreaking and has direct and tangible impacts to our rural communities,” Duvall said.

While ag labor does not fall under the jurisdiction of the Senate Ag Committee, Duvall said labor is, by far, the leading issue he hears about when he visits with Farm Bureau members.

“I implore the members of this committee and this body to meet us at the table to get this done—to do right by our farmers and their employees who labor in the fields, so you and I don’t have to,” Duvall said.

Farm Bureau members have also shared their concerns about access and costs of crop protection tools, Duvall said, including fertilizer, fuel and pesticides.

“Ongoing inflation, supply chain disruptions and diverging approaches to regulations all threaten a perfect storm for farmers and ranchers,” Duvall said. “Sound, risk-based science has always guided our approach, and we should not stray from that.”

He encouraged Congress to ensure regulators are performing their roles appropriately and efficiently using sound science.

“Farmers seek to live healthily, just like every other American. That pursuit of a healthy lifestyle must include a domestically produced food supply that is resilient, safe and meets needs,” he said.

The ag committee and those who were testifying also addressed global trade.

“We believe an agricultural trade agenda must focus on maintaining existing markets and completing trade agreements that expand market access for U.S. agricultural products. By eliminating and reducing foreign tariff and nontariff trade barriers, American producers will gain export market opportunities,” Duvall said. “Congress must protect American agriculture and modern production practices from undue burden, and respect farmers’ and ranchers’ ability to innovate and solve problems.”

Committee Ranking Member Amy Klobuchar (D-MN) asked Duvall and National Farmers Union President Rob Larew to address tariffs President Donald Trump threatened against Canada and Mexico and the new 10% tariffs implemented on China earlier this week.

Duvall said agriculture needs more access to markets, not less, and more free trade agreements with good rules.

“We’re very appreciative of the president and his negotiation skills, and he has proven himself in the past in the first administration and had some success and we’re looking forward to having more success, but we’re very appreciative of his negotiation going on now, to be able to delay it for 30 days and see if we can bring some common sense solutions to these problems,” Duvall said. “We need less interruptions in the supply system because it’s our job to create a food system for our people in this country that they can afford, and it’s reliable. We do not want to go back to the days and interrupt this food system like we saw during COVID, and there’s several things going on right now that could cause that.”

The proposed tariffs on Canada and Mexico have been paused for 30 days.

In addition to Duvall, leaders from the National Farmers Union, National Cotton, Council, National Corn Growers Association, United States Peanut Federation, National Sorghum Producers, National Association of Wheat Growers, National Barley Growers Association, American Soybean Association, American Sugarbeet Growers Association and USA Rice testified before the Senate Ag Committee on the farm economy and need for a farm bill Wednesday.

Video of the full hearing is available here.

The House Agriculture Committee will host a hearing on the agricultural economy Feb. 11.

House Ag Committee leaders recently sat down with Texas Farm Bureau to discuss their goals for a new farm bill. You can read that story here.