Farm Bill 2025: The Game Changer for American Agriculture!

Ladies and Gentlemen, buckle up! The House of Representatives has just passed H.R.1, the “One Big Beautiful Bill Act,” and it’s a game-changer for American agriculture. This isn’t just another farm bill; it’s a comprehensive package that combines several Farm Bureau-supported provisions across commodity programs and tax policy. The bill extends critical programs through 2031, providing long-term certainty for farmers and ranchers who have been dealing with volatile markets, high production costs, and weather disasters. This is a big deal, folks! The Senate is next, and they better not mess this up!

The Congressional Budget Office (CBO) has crunched the numbers, and the House-passed version of the One Big Beautiful Bill Act would increase agriculture-facing programs spending by $56.6 billion over the next decade. That’s right, $56.6 billion! Of that, $52.3 billion is tied to enhancements in the farm safety net, including higher reference prices under Price Loss Coverage (PLC), adjusted formulas for Agricultural Risk Coverage (ARC), and expanded crop insurance support. The remaining $4.3 billion includes investments in trade promotion, rural school funding, livestock biosecurity, research, and energy programs. This is a massive injection of cash into the agricultural sector, and it’s going to make a huge difference.



Now, let’s dive into the details. The bill extends key commodity support programs, including PLC, ARC, marketing assistance loans, and Dairy Margin Coverage (DMC), through the 2031 crop year. This means no more lapses into outdated “permanent” farm law. The bill raises statutory reference prices for major covered commodities by 11-21%, providing a higher safety net for farmers during low-price environments. Additionally, it introduces a reference price escalator mechanism beginning in the 2031 crop year, which increases reference prices by 0.5% annually on a compounded basis. This is capped at 115% of the original statutory value, allowing for modest growth to reflect longer-term market trends while avoiding unchecked program expansion.

The bill also updates the ARC program by adjusting the revenue guarantee and payment cap beginning in 2025. The coverage threshold is increased to 90% of benchmark revenue, and the payment cap is increased from 10% to 12.5%. This better targets support during deeper revenue losses, providing farmers with more predictable and reliable support during economic downturns.

For dairy producers, the bill enhances the DMC program by increasing Tier I coverage eligibility from 5 million to 6 million pounds per farm. Farms can also use the highest production year from 2021 to 2023 as a new enrollment baseline. Those who commit to multiyear DMC coverage receive a 25% discount on premiums, encouraging long-term participation and providing stability for dairy farmers.

Crop insurance remains a cornerstone of the farm safety net, and the bill increases premium support for beginning farmers. It also authorizes a new pilot insurance product for poultry growers to address risks related to market volatility of inputs such as natural gas and electricity, and adverse weather or animal health occurrences. Additionally, the definition of a "beginning farmer or rancher" is expanded from five to 10 years to align with USDA’s definition, allowing more producers to qualify for premium assistance over a longer period. The premium subsidy for beginning farmers is increased to 15 percentage points above the standard rate for the first two crop years, and 10 percentage points for crop years three through 10. These updates aim to strengthen the agricultural safety net and provide producers with tools to manage both market- and weather-related risks through 2031.

The bill also includes provisions for conservation programs, continuing long-term funding authority for USDA’s major conservation programs, including the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), and Agricultural Conservation Easement Program (ACEP) through fiscal year 2031. These programs help farmers implement conservation practices that can reduce production costs and improve long-term sustainability.

In summary, the One Big Beautiful Bill Act provides a comprehensive package of provisions that address the long-term challenges faced by farmers and ranchers, offering stability and predictability in the agricultural sector. This is a no-brainer for anyone invested in American agriculture. The Senate better not mess this up!