U.S. farmers face, and have faced for several years, a looming financial emergency. We need a new farm bill with real-world, real-farm reference to bolster us in the future, but we need sooner-rather-than-later direct assistance to farmers or it’s going to get really bad.

We’re still working with a farm bill that was created and passed in 2018. It was extended last year to continue until the end of September 2024..

During May planting season, the House Ag Committee approved a Republican farm bill proposal. Many Democrats criticized the bill, saying the spending was well over budget based on projections by the Congressional Budget Office. In August, CBO determined the proposal would increase deficit spending by nearly $33 billion, which became a political football as Congress took recess to go home in August.

Congress will return in September, but it has a lot it needs to do to keep the government funded and running. And it’s a politically charged election year.

“If It’s Not Time to Hit the Panic Button… We Are Getting Close.” That headline caught my eye in mid-August on Southern Ag Today, which is a collaboration of Southern Extension economists, and a great resource.

The to-the-point article was written by Joe Outlaw, Bart Fisher and Natalie Graff, all with the Texas A&M University Agricultural and Food Policy Center. People in the ag-policy universe know this group knows what they are talking about.

“The steady decline in market prices has continued, with current price projections from USDA below the average cost of production for some crops.  Why?  While costs for some inputs have decreased from their 2022 highs… commodity prices have fallen more,” the economists say.

Reports from Federal Reserve banks around farm country indicate loan delinquencies are on the rise, they add. In the last presidential election year, record amounts of assistance were provided to agricultural producers due to short-term price declines when the Covid pandemic almost broke the supply chain.

“A strong farm bill would be much better than ad hoc assistance, but if Congress can’t come to an agreement… there will be pressure to help producers endure the current financial downturn. And, even if a new farm bill is put in place this Fall, the fact that it is not slated to kick in until the 2025 crop year – with support not arriving until Fall 2026 – will undoubtedly put tremendous pressure on Congress to help bridge the gap,” the Texas ag policy experts say.

Let's pan to the real world.

“Y’all hiring?” a farmer friend quipped with me recently.

“What do you mean?” I said.

“Don’t know what I’ll be doing next year. Not looking too good,” he said.

“Well, if you’re out of business, I’ll be out of business and many others, too. And the grocery store shelves will start looking different,” I said.

“Yep,” he said.

Over the next several weeks and months check back with southeastfarmpress.com to stay current on regional and national farm bill, economic conditions and conversations as we ease into the ’24 harvest. We’ll talk about the bright spots, too.