January 10, 2025

Congress grants second farm bill extension

Economic assistance

By Tom C. Doran
Passed and signed into law in the early hours of Dec. 21 — the day a government shutdown would have begun if Congress had not acted — the American Relief Act of 2025 includes $31 billion in natural and economic disaster aid for farmers and ranchers, a second extension of the 2018 farm bill and $2.5 billion in additional aid to be distributed through the U.S. Department of Agriculture.

Passed and signed into law in the early hours of Dec. 21 — the day a government shutdown would have begun if Congress had not acted — the American Relief Act of 2025 includes $31 billion in natural and economic disaster aid for farmers and ranchers, a second extension of the 2018 farm bill and $2.5 billion in additional aid to be distributed through the U.S. Department of Agriculture. (AFBF photo)

WASHINGTON — Congress approved a one-year extension to the 2018 farm bill late on Dec. 20 that included nearly $31 billion in disaster and economic assistance for farmers and ranchers.

The legislation, part of a spending agreement that narrowly avoided a government shutdown, was the second yearlong extension of the 2018 bill. The bill passed by a 366-34 margin the House and 85-11 in the Senate.

Under the agreement, $10 billion in ad-hoc economic assistance was provide and an additional $20.78 billion in disaster aid for farmers who suffered losses in 2023 or 2024.

Losses from droughts, wildfires, hurricanes, floods, derechos, excessive heat, tornados, winter storms, freeze events and excessive moisture are eligible for disaster aid.

The economic assistance in the bill provides farmers one-time, per-acre emergency payments for every acre of crop planted in 2024 for 21 eligible commodities to offset low commodity prices and high production costs. It would also provide a 50% payment for prevent plant acres.

The payment rates are not final and are subject to U.S. Department of Agriculture discretion.

According to the American Farm Bureau Federation, since crop prices peaked in 2022, corn and wheat prices are down 37%, soybeans are down 28% and cotton has fallen 22%. At the same time, input costs have remained high.

According to the American Farm Bureau Federation, since crop prices peaked in 2022, corn and wheat prices are down 37%, soybeans are down 28% and cotton has fallen 22%. At the same time, input costs have remained high.

Economic assistance estimates provided by the House and Senate agriculture committees included an estimated $43.80 per acre for corn, $30.61 for soybeans, $31.80 for wheat and $78.42 for oats.

The payments are limited to $125,000 that could increase to $250,000 for producers who receive 75% or more of their gross income from farming.

Additionally, the bill requires USDA to issue checks within 90 days after the bill becomes law. However, with the change in administration and new leadership not yet in place at USDA, it may be a challenge to meet the deadline.

E15 Removed

The final spending bill removed a proposal to allow for year-round E15 ethanol fuel sales that was included in a previous version of the funding bill in the days leading up to the final vote.

If a new farm bill or extension had not been enacted by Dec. 31 when the crop subsidy and dairy support programs expired, the law would revert back to how it was written in the 1940s.

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Tom Doran

Tom C. Doran

Field Editor