Two days ago, Congressional lawmakers were gearing up for holiday vacation after crafting a bipartisan budget deal. A continuing resolution proposed by the House Appropriations Committee would have extended the federal budget deadline to March, preventing a government shutdown. It also would have extended the farm bill, provided $10 billion in financial assistance to farmers, authorized $110 billion in disaster aid and legalized year-round E15 sales.

That deal now appears dead after President-elect Trump called on Republicans to reject it. In a series of Wednesday social media posts, Trump called the bill “ridiculous and extraordinarily expensive” and criticized it for having too many Democrat “bells and whistles.” He went on to say that any republican “stupid enough” to support the bill would face a primary challenge in their next election.

Speaker Mike Johnson apparently got the message. He later cancelled plans to vote on the continuing resolution. The speaker is now reportedly meeting individually with Republican lawmakers in hopes of crafting a new deal. That could be a challenge given any legislation must still be approved by the Democrat majority Senate and President Biden.

In the midst of criticizing the spending, Trump also called on Congress in increase the debt ceiling, which caps how much the government is allowed to borrow. In June 2023, Republicans and Democrats reached an agreement to suspend the debt ceiling until Jan. 1, 2025.

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Sometime next spring, lawmakers will again need to raise the ceiling to prevent the country from defaulting on its financial obligations. In recent years, raising the ceiling has become an extremely contentious process with many Republicans demanding steep spending cuts. Trump would like that process to be completed before he comes into office on Jan. 20.

Agriculture world reaction

News of the continuing resolution’s collapse was met with shock among lawmakers. While there was plenty of expected criticism from some corners, the general consensus was the deal had enough support from both parties to pass. Now, there is much uncertainty about what happens next.

American Farm Bureau Federation President Zippy Duvall was among the many ag group leaders who supported the continuing resolution. In a letter to Congress sent late Wednesday, Duvall said that any alternative deal must include a farm bill extension, disaster aid, economic assistance for farmers and year-round E15 sales.

Duvall says farmers are experiencing their third consecutive year of losing money. At the same time, he says lenders are telling farm families that operating loans will not happen or be significantly smaller unless the federal government provides some relief.

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“We’ve lost 141,000 farms in a five-year period and that number will grow if Congress fails to act,” Duvall says.

National Farmers Union President Rod Larew sent his own letter to Congressional lawmakers today urging them not to abandon family farmers and ranchers. While the NFU continues to support the previously agreed to continuing resolution, he says any new bill should include robust disaster and economic assistance as well as well as language allowing year-round E15 sales.

“Family farmers simply cannot wait any longer,” Larew says, “Without timely economic assistance, many farmers will be forced out of business.”