In the final days of Congress’ 2024 session, lawmakers have agreed on a one-year extension of the 2018 Farm Bill as part of a broader government funding package. The move comes amidst a race to avert a government shutdown and provides temporary stability for America’s agricultural sector. However, it leaves unresolved issues that many farmers and industry groups had hoped would be addressed in a long-term reauthorization.
What’s in the Bill?
The one-year Farm Bill extension, included in a 1,547-page spending bill, keeps existing agricultural programs funded through March 14, 2025. Key provisions include $10 billion in economic assistance to farmers struggling with declining crop prices, high production costs, and rising interest rates. An additional $20 billion in disaster aid aims to support communities recovering from weather-related events, such as hurricanes and droughts.
The extension also preserves the regulatory framework for hemp and cannabinoids, including delta-8 and delta-9 THC. This decision has been welcomed by the hemp industry, which feared restrictions on novel cannabinoids had the Farm Bill undergone a full reauthorization.
“This is big for the hemp industry because if the farm bill was going to be revisited this year, then there was a potential that novel cannabinoids, including THCA, would be banned,” said Paula Savchenko, Esq., founding partner of Cannacore Group. “Now the hemp industry can continue to produce and distribute these types of products, allowing for more variety of products for customers.”
Aid Without Certainty
For many in the farming community, the extension offers short-term relief but falls short of the comprehensive five-year plan they’ve been advocating for. Net farm income is projected to decline by 4.1% in 2024 after a 19.4% drop in 2023, according to the U.S. Department of Agriculture. These economic pressures are compounded by the impacts of extreme weather events and rising costs.
Carolyn Olson, an organic farmer from southwestern Minnesota, emphasized the importance of the aid package: “It’s really important for farmers to have some certainty and for their leaders knowing that it will be OK to lend to their farms.” Olson’s family, which lost its entire 2024 wheat crop to disease, faces significant financial pressures despite successes in other areas, such as raising 14,000 conventional hogs annually.
American Farm Bureau Federation President Zippy Duvall warned that the aid provided by the extension is only a temporary fix. “The high cost of supplies, low commodity prices, and out-of-reach interest rates are a recipe for farm failures without help,” Duvall said. “This funding could make the difference between planting a crop next year and giving up.”
Ethanol Provisions Spark Backlash
The latest version of the spending bill omitted a provision that would have allowed permanent, year-round sales of E15, a higher ethanol blend of gasoline. Corn growers and renewable fuel advocates were quick to criticize this decision.
“Pulling E15 out of the bill makes absolutely no sense and is an insult to America’s farmers and renewable fuel producers,” said Geoff Cooper, CEO of the Renewable Fuels Association. The uncertainty surrounding E15 sales has long been a point of contention, with advocates arguing that year-round availability would bolster demand for corn and stabilize rural economies.
Pork Producers’ Discontent
Pork producers, meanwhile, expressed disappointment over Congress’ failure to address a California animal welfare law requiring stricter standards for the housing of sows. National Pork Producers Council President Lori Stevermer called the lack of action “a bleak holiday season for many farming families across the country.”
Looking Ahead
While the one-year extension provides a temporary lifeline, stakeholders agree that a fully updated five-year Farm Bill is urgently needed to provide stability and certainty to America’s agricultural sector.
“Another one-year extension of the Farm Bill addresses immediate needs, but only a new, modernized Farm Bill will bring certainty for America’s families, farmers, ranchers, and rural communities,” Duvall said.
Rep. Glenn “GT” Thompson, chairman of the House Agriculture Committee, echoed these sentiments. “I think it’s going to send the right signal to the markets that most farmers and ranchers are going to be able to get eligible for the credit they need,” Thompson said, while emphasizing the need for comprehensive legislation in 2025.
As Congress prepares to reconvene in 2025, the agricultural community’s focus will shift toward achieving a long-term Farm Bill that addresses the evolving challenges faced by farmers and ranchers. For now, the extension provides a bridge, albeit a shaky one, for an industry at the heart of America’s economy.
