WASHINGTON (RFD News) — The House Budget Committee has approved a reconciliation resolution that would provide up to $12 billion in aid for farmers facing high production costs and trade-related challenges.
The proposal, known as “Reconciliation 3.0,” now heads to the full House before moving to the Senate. There is no timeline for final passage.
Cameron Castillo with the American Farm Bureau Federation said farmers need a lifeline this year as production costs continue to climb.
“High production costs, we have seen things like fuel, fertilizer and even labor, especially with respect to our specialty crop folks have been particularly unfortunate. And with this ongoing conflict in Iran and some of the issues in the Strait of Hormuz, we have seen significant challenges related to things like farm diesel or phosphorus inputted fertilizer and things of that nature. So that coupled with depressed market prices has created a really unfortunate situation.”
Farm Bureau economists estimate growers will lose $31 billion on staple crops this year, with losses projected to reach $32 billion next year.
Corn losses are expected to increase from $131 per acre this year to $167 per acre next year, while soybean losses are projected to rise another $58 per acre.
