House Agriculture Committee frames national ‘farm economy crisis,’ urges swift farm bill action
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Summary
Chairman Thompson and witnesses told the House Agriculture Committee that commodity prices and rising input costs have pushed many farm families into crisis, and that ad hoc federal payments cannot substitute for an updated five‑year farm bill.
Chairman Thompson opened the House Committee on Agriculture hearing saying, “A crisis is exactly what hundreds of thousands of farm families are facing as we speak,” and he and witnesses laid out declining commodity returns, persistent high input costs, and the limits of one‑time federal aid.
The panel’s witnesses and members said Congress must update the five‑year farm bill to restore a working safety net. Dr. John Newton, the executive head of Terrain, testified that inflation‑adjusted net cash farm income for many crop farms has fallen roughly 40–45% since 2022 and that ad hoc assistance has been propping up incomes. “We are witnesses to historic volatility in the farm economy,” Newton said.
Why it matters: witnesses and lawmakers said market prices and persistent input costs have driven many producers to the edge of insolvency and that predictable programs in a modernized farm bill would reduce reliance on emergency payments. Chairman Thompson noted Congress approved economic and disaster aid late last year — which helped but did not solve the longer‑term problem — and urged passage of a reformed bill with higher, updated support levels.
Committee members across the aisle stressed urgency. Ranking Member Angie Craig called the hearing “extremely timely,” said farmers need “a new farm bill to provide some semblance of stability,” and urged bipartisan negotiation to produce a bill with votes to pass both chambers. Witnesses described how ad hoc payments and disaster assistance have kept some operations solvent but cannot replace a functioning 5‑year safety net.
Testimony highlights: Newton said the American Relief Act of 2025 and other year‑end measures boosted 2025 net farm income projections, but he cautioned ad hoc assistance is unpredictable and that ‘‘the next farm bill can end the reliance on ad hoc support with enhanced risk management tools.’’ Farmer‑witness Alicia Schwettner described having to hold difficult financing conversations with her lender and said many family operations are reconsidering whether a farming future is viable for the next generation.
The committee discussed specific farm bill elements mentioned in testimony: updating reference prices in Title I (PLC/ARC), strengthening crop insurance, expanding foreign market development funding and the Market Access Program (MAP/FMD), and longer‑term measures to address labor, input costs and conservation. Several members suggested more frequent review cycles for program reference prices, given rapidly changing costs.
Ending: Members repeatedly linked the farm bill to rural economic stability and national food security and said the committee’s immediate priority is to craft a bipartisan package that responds to current market conditions rather than rely on intermittent emergency spending.
