Congress is back after more than a month away from Capitol Hill. How they proceed in the coming weeks could have major implications for American farmers.

In late October, Mississippi Republican Rep. Trent Kelly introduced the Farm Assistance and Revenue Mitigation Act. Commonly referred to as the FARM Act, the bill would provide a one-time emergency assistance payment to some crop growers. Eligible producers would receive payments equal to 60% of the difference between projected costs and projected returns, multiplied by eligible acres.

Payments would be capped at $175,000 for farmers who derive less than 75% of their income from eligible crops. The limit increases to $350,000 for those who earn more of their income from impacted commodities.

“Farmers have been hit with circumstances outside of their control, such as natural disasters, inflation pressures and drought, which have crippled their ability to obtain financing from credit and banking institutions,” Kelly says. “The FARM Act will bridge the gap, providing relief so that our farmers can continue to do their best – feed the nation."

Nearly 50 House lawmakers from both parties are cosponsoring the FARM Act. The legislation has also been endorsed by multiple agriculture groups including the American Farm Bureau Federation, American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Barley Growers Association, National Cotton Council, National Sorghum Producers and more. Still, the bill faces an uncertain future.

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According to some analysts, the FARM Act could cost as much as $21 billion. That price tag may be too much for budget-conscious lawmakers to swallow.

Sen. Chuck Grassley, R- Iowa, says disaster assistance should be high on the congressional priority list. Still, he’s not sure the FARM Act is the best way to achieve that.

“While I’ve always been a strong supporter of disaster assistance, I’m concerned about commodity price assistance as part of any package,” Grassley said during a Wednesday call with ag reporters. “This has never been done before and I believe it would be a bad precedent. I also think it would take away the incentive for Republicans to come to the table for a five-year farm bill.

About that farm bill

With Republicans set to control the presidency and both chambers of Congress, there’s a growing sense that lawmakers will not pass a new farm bill this year. Instead, momentum is pointing toward another extension, possibly for another year.

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That’s partly due to the limited time this Congress has left to tackle the looming budget deadline and other priorities. Some Republicans have also indicated they’d prefer to craft a new farm bill next year with the Trump administration and a Republican Senate majority.

While the finished product may be more to their liking, pushing the farm bill to 2025 brings a slew of new challenges. The bill would be subject to the Congressional Budget Office scoring process again. New lawmakers could demand spending cuts or introduce additional amendments. More Inflation Reduction Act funds Republicans planned to use in the farm bill could be gone as well.

Translation: if there’s an extension, don’t expect a new farm bill any time soon next year.

In lieu of the FARM Act or a farm bill, lawmakers could choose to pass some form of disaster relief. Speaker Mike Johnson has indicated the House may consider additional disaster aid for those affected by Hurricanes Helene and Milton. Some lawmakers want to include additional support for farmers impacted by other weather-related disasters across the country.

While there is a growing bipartisan consensus among lawmakers that farmers need help, there is currently no formal legislation to do so. At this point, there is only a concept of a plan.

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According to a recent American Farm Bureau Federation report, only one-third of uncovered losses from18 natural disasters in 2022 have been addressed. There were even more natural disasters in 2023 and 2024. Many impacted farmers are still struggling to recover. According to AFBF economist Daniel Munch, those mounting natural disasters could further weaken the farm economy.

“Since 2022, farmers and ranchers are facing a cumulative minimum $20 billion loss in crops alone that has not been addressed with ad-hoc relief,” Munch says. “These continued losses are severely impacting balance sheets and straining farmers’ financial stability.”

Munch adds that his $20 billion cumulative loss figure does not include the additional billions in losses to livestock, timber and infrastructure also impacting farmers and ranchers nationwide.

Suffice to say, Congress has plenty of work to do if they want to help farmers this year. Time will tell if they can deliver.