Proposed Farm Bill Changes Target Farm Finances and Risk

Farm Bureau Economist Faith Parum discusses the latest Farm Bill proposal and the path ahead for Congress and U.S. agriculture.

Gail_Starkweather_10_22_15_USA_IA_Starkweather_Farm_033.jpg

Starkweather Farm in Iowa (2015)

FarmHER, Inc.

NASHVILLE, TENN. (RFD NEWS) — The House Agriculture Committee released its 800-page draft proposal as lawmakers continue work on the next Farm Bill, which includes several updated provisions now under review across the agricultural sector. Many producers are closely examining the draft as they consider how potential changes could impact their individual operations.

House lawmakers are preparing to rewrite the farm safety net, with markups of the “Farm Bill 2.0" draft scheduled for next week, and the biggest impact for producers may be on cash flow, borrowing ability, and risk protection starting this season.

The proposal updates ARC and PLC support programs with higher reference prices and additional base acres while strengthening standing disaster programs. It also allows faster payments and broader eligibility, especially for specialty crop operations. Lawmakers also want standing authority to deliver emergency aid through state block grants rather than waiting for Congress to pass relief each time markets collapse or weather disasters strike.

Credit provisions raise USDA loan limits, allow refinancing of distressed guaranteed loans into direct loans, and expand access for beginning farmers and transitioning operations. At the same time, crop insurance would broaden coverage options and create new policies for crops that historically struggled to obtain actuarially sound protection.

Taken together, the changes aim to stabilize farm balance sheets after several years of margin compression and working capital drawdowns.

If approved, the proposal would shift federal support toward predictable, pre-authorized risk management rather than ad hoc relief payments—a major structural change in how farm downturns are handled. Markup begins Monday in the House Agriculture Committee.

Farm-Level Takeaway: The new Farm Bill focuses on keeping producers financeable — protecting collateral, improving loan access, and making risk protection more predictable.
Tony St. James, RFD NEWS Markets Specialist

American Farm Bureau Federation (AFBF) economist Faith Parum joined us on Thursday’s Market Day Report to help break down what the proposal could mean for farmers and ranchers. She joined the program while attending the USDA Agricultural Outlook Forum, where she shared an update on how the event has been unfolding.

In her interview with RFD NEWS, Parum discussed how the draft may affect producers and outlined the next steps in the legislative process. \

Parum also explained why Congress is pursuing a full reauthorization of the Farm Bill, despite extensions of the 2018 legislation and updates to farm programs included in the “One Big Beautiful Bill” Act (OBBBA).

USDA Rolls Out $1B in Early Aid for Specialty Crops Ahead of Potential Farm Bill Provisions

Specialty crop growers may not have to wait for a new Farm Bill to see financial relief. The U.S. Department of Agriculture (USDA) is rolling out new assistance aimed specifically at specialty crop producers not included in the Farmer Bridge Assistance Program, providing early support as growers continue to face volatile markets and high input costs.

AFBF Director of Government Affairs John Walt Boatright says it is still too early to assess the program’s full impact until USDA releases additional details on how the assistance will be distributed.

“This will be the program that is used to disseminate up to $1 billion of a $12 billion package on bridge payments for growers dealing with volatile markets,” Boatright said. “We also know that they will base these payments on reported 2025 planted acres, and that has a deadline associated with it of March 13.”

While some specifics are still forthcoming, Boatright emphasized that now is the time for producers to take action to ensure eligibility. He encouraged growers to work through the Farm Service Agency to confirm their information is up to date.

“Where there will be details associated with that, and they have a list of eligible specialty crops,” Boatright added. “The first action is to make sure that you grow an eligible crop. Make sure to go on there and see if you have reported 2025 planted acres. Work with your local FSA office to report that by the deadline of March 13.”

According to Boatright, the aid is intended to help offset market disruptions, high input costs, and inflation. However, some farm groups argue that the $1 billion allocated for specialty crops may not be enough to fully address producers’ needs.

Related Stories
Sponsored
Like a lot of things, the more you fall in love with a hobby, the more you realize how much you don’t know. Backyard Smart answers the lawn-and-garden questions homeowners are looking for.
Longview FFA gives students practical experience from meat processing to floral design in their unique curriculum.
Cattle farmer Scott Porter, Kentucky Farm Bureau’s 2025 Farmer of the Year, discusses his commitment to mentorship and the importance of strengthening the future of agriculture.
Son of a South Dakota Rancher, Kolt Mendenhall is turning his lifelong passion for riding into a collegiate career, committing to Southeastern Oklahoma State University next fall, bringing years of ranch experience to the collegiate arena.
Rodeo Austin exhibitor Kash Morrison reflects on how FFA taught him the importance of hard work and time management while competing in livestock shows during the school year.
At the White House’s “Celebration of Agriculture,” the Trump Administration announced a slate of policies to support farmers and ranchers, including biofuel mandates, SBA loan programs, and new labeling policies to boost domestic markets for ag products.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

manage risk as milk price volatility increases.
Strong beef demand is offsetting weaker cash cattle.
Brazil logistics issues may support U.S. soybean demand.
AFBF Economist Danny Munch breaks down a new Farm Bureau analysis showing that producers now earn less than 6 cents of every food dollar, as farm input costs continue to squeeze margins.
As ag lawmakers in the Senate await the House vote on the Farm Bill, they are eager to discuss the challenges farmers face before it is their turn to take up the critical legislation.
Productivity gains are supporting supply despite limited herd expansion.