New bill provides bright spot for ag despite tariffs
The prospect of a new farm bill landing on the president’s desk any time now is good news for Colorado farmers and ranchers who have been buffeted this year by low prices for their products, trade disputes and extreme weather, from drought to hailstorms.
The U.S. House overwhelmingly passed the bill Wednesday, a day after the Senate voted 87-13 for the legislation. It now goes to President Donald Trump.
“We’re definitely excited about having a farm bill so farmers and ranchers across the country and in Colorado have some surety,” said Don Shawcroft, Colorado Farm Bureau president and a cattle rancher in the San Luis Valley.
The five-year bill includes more than $400 billion in farm subsidies, conservation programs and food aid for the poor. Other programs are crop insurance, expansion of broadband for rural areas and promoting expansion of foreign markets. A new provision will allow states to regulate the production of hemp based on a state or tribal plan.
When debate over tightening work requirements for food-aid recipients stalled negotiations between the House and the Senate earlier this year, farmers and ranchers feared they might have to wait until next year for a new bill, said Nick Levendofsky, director of external affairs for the Rocky Mountain Farmers Union.
“I think for the most part we are pleased with the turnout. It looks like the Senate version, which is the version we were in support of all along,” added Levendofsky.
Before Congress passed the bill, Don Brown, the Colorado state agriculture commissioner, said its approval was critical because it finances services and programs that are vital to Colorado farmers and ranchers.
“The old bill expired at the end of Sep-
tember. The programs are ongoing but you can’t sign up for them. They need funding,” Brown said.
Among the crucial programs is crop insurance. The new bill will allow people to choose each year which of two programs they want to enroll in. Levendofsky said the change is good because the differences in the programs can be crucial if conditions on the ground change. People previously were locked into one program for five years
“Now, producers will have the flexibility to move from one program to another, on a crop-by-crop and farm-by-farm basis,” Levendofsky said.
The authorization of $225 million a year to promote foreign trade is important to Colorado’s beef industry, Shawcroft said. Beef is Colorado’s No. 1 agricultural export.
The new bill increases the land covered by the Conservation Reserve Program to 27 million acres from 24 million acres. Under the program, farmers are paid a yearly rent to remove environmentally sensitive land from production and grow other plants to improve the land’s health.
“Many farmers and ranchers utilize the conservation program,” Levendofsky said. “It’s usually marginal land, not as highly productive. It’s good to see more acreage.”
Efforts to expand broadband to more rural areas will get a big boost in the legislation. Funding will increase to $350 million a year from $25 million.
The bill also includes $10 million a year for outreach to farmers and ranchers struggling with stress and mental health issues. Levendofsky said the funds could be used for workshops and seminars.
Dale McCall, president of the Rocky Mountain Farmers Union, said in a statement that his organization is concerned the legislation doesn’t do enough to address consolidation in the agriculture industry, leaving farmers and ranchers with fewer choices when it comes to selling their livestock or buying seed and fertilizer.
While approval of a farm bill provides some relief for farmers and ranchers, the tariffs imposed by the U.S. and retaliatory actions by China continue to add to woes caused by low commodity prices and the effects of a severe drought in a big chunk of western Colorado. There has been confusion about the status of the trade dispute since the G20 meeting in Argentina. At the meeting, Trump announced a hold on further moves so the U.S. and China could try to resolve differences.
“We are still very concerned about the whole tariff process. There are conflicting statements coming from the White House and China,” Levendofsky said. “We need this administration to come out and give us the facts and say here’s what we’re doing and where’s what we’re working on and we have a plan.”
At this point, it’s difficult to quantify the financial losses resulting from the tariffs, Shawcroft said. A bright spot has been efforts by the administration to increase access to existing markets.
“But the price of beef, corn and soybeans has taken a tremendous hit,” Shawcroft said.
Another huge blow has been the jump in prices for aluminum and steel because of tariffs. Shawcroft said Colorado farmers and ranchers have struggled with rising prices of agriculture equipment and repairs.