Senate Works to Pass Farm Bill

As of press time, the Senate version of the Farm Bill, the “Agricultural Improvement Act of 2018,” by Sens. Roberts (R-Kansas) and Debbie Stabenow (D-Michigan) is scheduled for a vote before the end of the week. However, disagreement among senators over some provisions of the bill have made it unclear what changes might be made to the bill before the vote.

At least two potential amendments, if adopted, would negatively impact the Federal Crop Insurance Program (FCIP).

Amendment 3103 by Sens. Dick Durbin (D-Illinois), Chuck Grassley (R-Iowa), and Jeff Flake (R-Arizona) would place an adjusted gross income (AGI) limit on the FCIP resulting in large farms seeing a 40% increase in crop insurance premium costs. This is problematic because recent research has shown that some larger farms are less risky and the FCIP risk pools are based on acreage, not number of farms. Since larger farms account for approximately a quarter of the acres covered by the program, an AGI limit could result in larger farms leaving the FCIP, destabilizing the risk pools and increasing crop insurance premiums for the smaller farms that remain.

Amendment 3138 by Sens. Jeanne Shaheen (D-New Hampshire) and Flake would place a limit on the amount of funding a farmer can receive to help them purchase crop insurance and would have a similar impact as Amendment 3103 if adopted.

The Big “I” has been actively advocating against these amendments and has met with several key Senate offices.

Additionally, a letter urging opposition to any amendments to the Farm Bill that would 1) limit participation in crop insurance, 2) make insurance more expensive for farmers, or 3) harm private-sector delivery was circulated to every Senate office. More than 600 groups signed the letter, including the national Big “I” and a number of Big “I” state associations. Many Big “I” state associations also launched targeted grassroots for key Senate offices earlier in the week.

Sens. John Kennedy (R-Louisiana) and Bill Cassidy (R-Louisiana) also introduced an amendment to the Farm Bill that would extend the National Flood Insurance Program (NFIP) through the end of 2018. As of press time, it seemed likely that this amendment would be included in the Senate bill. However, Congress needs to act to extend the program past its current July 31 deadline.

The Big “I” is actively advocating Congress to not let the NFIP lapse next month. Look for updates on flood insurance in News & Views and via Big “I” social media.

Finally, while the outcome of the Farm Bill in the Senate remains uncertain, the House of Representatives passed its version of the Farm Bill late last week by a narrow two-vote margin, after the bill failed to pass the first time it was voted on in May.

Regardless of potential changes to the Senate Farm Bill that may occur before it garners final passage, the Senate and House bills significantly differ on several contentious issues. This means that the process for reconciling the two bills into something both chambers can approve—and that the President will sign— is likely to be difficult. Changes to the bills—including changes to the crop insurance provisions—are possible during this process.

Jennifer Webb is Big “I” federal government affairs counsel.