Industry analysts say the Farm Assistance and Revenue Mitigation Act sponsored by Mississippi Representative Trent Kelly may be too much money for Congress.
The estimated $21 billion cost might make things more difficult for a new farm bill. Kelly says his bill keeps farmers in operation despite high costs and lower commodity prices, and it’s supported by a dozen of America’s biggest farm groups. Analysts in a Farmdoc Daily blog estimate that for the major commodities with a specified payment rate calculation outlined in the legislation, the FARM Act would result in $21 billion in ad hoc support payments to farmers.
The bill may also be interpreted by those on Capitol Hill as evidence of U.S. farm policy shortcomings, and that may delay work on the next farm bill into 2025. Kelly’s bill allows payments of up to $350,000 per farmer. The farm program typically sets a limit of $125,000 per farmer.
-NAFB