Purdue Economists: Too Much To Dislike With Failed Farm Bill, Extension Likely

Three Purdue University agricultural economists agree that another extension of 2008 farm legislation is a distinct possibility following the U.S. House’s defeat of the proposed farm bill.

Chris Hurt, Otto Doering and Roman Keeney, who closely follow developments of farm legislation, question whether Republican leadership in the House will allow debate on the contents of the farm bill again anytime soon. With the one-year extension set to expire at the end of the fiscal year Sept. 30, farmers could see another extension of the five-year agricultural spending plan.

“There was just too much in the bill to dislike,” Hurt said. “Too many amendments passed at the last moment that changed the bill.”

One amendment in particular, sponsored by Rep. Steve Southerland (R-Fla.), would have given states the power to require food stamp recipients to seek work while on the program. That brought a backlash from Democrats and was key to the bill’s failure Thursday (June 20).

Without passage of a farm bill, farm legislation would revert to a 1949 law that could lead to steep price increases on some items, including milk, for consumers. Legislators avoided that scenario by extending the 2008 farm bill in late December as dairy subsidies were scheduled to expire and the nation also was about to fall off the “fiscal cliff.”

“We cannot go without a farm bill because the 1949 legislation has too extreme of consequences,” Hurt said. “So odds may favor a second year of extension of the old farm bill.”

Doering believes the bill foundered on elements not directly related to agriculture – primarily the battle over how much spending should be cut from the Supplemental Nutrition Assistance Program, known as food stamps, and from commodity programs.

“There was the lack of real budget cuts in either the Senate or House version for either the food or the commodity titles, which rankled those conservatives wanting to make substantive, deep budget cuts,” Doering said. “The regions, especially the South, had already gained what they wanted most out of the commodity titles, so it came down to an almost ideological battle on how much to cut food stamps and whether the bill actually met any real budget-cutting principles.”

The Republican majority in the House will not follow its leadership and likely will remain fractured on important issues, such as a long-term budget fix, Doering said.

“It will come together primarily on issues of shared values, and the farm bill was not such an issue,” he said.

While it is difficult to predict what Congress will do about farm legislation this year, Keeney said farmers should understand that the Sept. 30 end of the federal fiscal year doesn’t mean that all farm programs would end on that date without congressional action. Programs for corn and soybean crops, for example, remain intact throughout the crop season, which extends well beyond September.

“September 30 is not doomsday for farming and safety nets,” he said. “Expiration of the fiscal year last year wasn’t a big deal at all, and it probably wouldn’t be this year, either.”

Topics:

Leave a Reply

Legislation Stories

Legvold Farm, Northfield, MN
LegislationASA Notes Progress, Urges EU To Improve Biotech Approval Process
January 29, 2016
The American Soybean Association (ASA) urged the European Commission today to continue its work in addressing delays in the approvals Read More
LegislationARA, TFI: Retailers Urged to Consider PSM Compliance
January 20, 2016
In December, the Occupational Safety and Health Administration (OSHA) issued a revised Interim Enforcement Policy addressing enforcement of Process Safety Read More
United States Capitol Building in Washington D.C.
LegislationCongress Halts OSHA Overreach; Significant Victory For Ag Retailers
December 21, 2015
Congress just put the brakes on the Occupational Safety and Health Administration’s regulatory overreach. On July 22, OSHA released an Read More
LegislationFall Fertilizer Transportation Could Be At Risk With Possible Rail Stoppage
October 1, 2015
Failure by Congress to extend the deadline for the implementation of Positive Train Control (PTC) on the railroads could gridlock Read More
Top 100 Articles
Elburn Cooperative
CropLife 100Elburn Cooperative Members Vote To Join CHS
December 28, 2015
With 81% of eligible producers voting, 94% cast an affirmative ballot for Elburn Cooperative, a diversified agricultural retailer based out Read More
West Central Cooperative, Jefferson, IA
CropLife 100Farmers Cooperative-West Central Merger Approved
December 21, 2015
The members of Farmers Cooperative Co. (FC), Ames, IA, and West Central Cooperative, Ralston, IA, have both approved the merger Read More
Wheat Growers Innovation Center, Bath, SD
CropLife 100Wheat Growers Opens Innovation Center
December 21, 2015
Wheat Growers’ commitment in providing its farmer-owners with the latest in technological advancements now has a one-of-a-kind focal point, as Read More
CropLife 100ARA Selects The Andersons As 2015 Retailer Of The Year
December 9, 2015
The Agricultural Retailers Association today named Maumee, OH-based The Andersons as its Retailer of the Year for 2015. The award Read More
CPS Washington Court House John Deere Sprayer
CropLife 100Application Equipment Report: It Is Easy Being Green For Top 100 Ag Retailers
December 5, 2015
On The Muppets television show, Kermit the Frog is famous for singing a song about the troubles he encounters in Read More
Fertilizer Bin
CropLife 100Fertilizer Sales: Another Down Year For Top 100 Ag Retailers
December 4, 2015
In pure number terms, the fertilizer category still dominates all crop inputs/services among CropLife 100 ag retailers. In 2015, for Read More
Latest News
Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide F…
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Grow…
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
ManagementOABA Annual Conference Wraps Up In Columbus
February 5, 2016
More than 300 Ohio AgriBusiness Association (OABA) members and industry professionals were on hand to engage in collaborative learning and Read More
Crop InputsBayer To Contest EPA Flubendiamide Decision
February 5, 2016
Crop Science, a division of Bayer, announced today it has refused a request by EPA to voluntarily cancel the uses Read More
Syngenta
Seed/BiotechNot So Fast: ChemChina Syngenta Takeover Could Draw Nat…
February 5, 2016
State-owned China National Chemical Corp. (ChemChina), which plans to buy Swiss seeds and pesticide maker Syngenta, will promptly start preparations Read More
Rendering of Syngenta Seedcare Institute expansion
Seed/BiotechExpansion Of Syngenta’s North America Seedcare In…
February 4, 2016
As demand for seed treatment knowledge and products grows among farmers, retailers and others in the seed industry, Syngenta is Read More
Soybean Field
Industry NewsArysta LifeScience Strengthens Sales Team
February 4, 2016
Arysta LifeScience North America recently announced three new personnel additions: Jake Cook and Peter White are Territory Sales Managers for Read More
Davor Pisk Syngenta COO
Crop InputsSyngenta COO: Why ChemChina Offer Beat Monsanto’s
February 4, 2016
Syngenta Chief Operating Officer Davor Pisk says he is confident the proposed acquisition by ChemChina will ultimately help preserve choice Read More
Young corn plants in soil
Crop InputsKoch Biological Solutions Invests In Pathway Biologic
February 4, 2016
An affiliate of Koch Biological Solutions, LLC has acquired a minority equity position in, and entered into collaboration with, Pathway Read More
Crop InputsABG: China Signs Off On Monsanto’s Roundup Ready …
February 3, 2016
Monsanto Co. on Wednesday announced it plans to launch its Roundup Ready 2 Xtend soybeans in time for the 2016 Read More
Syngenta headquarters in Basel, Switzerland
Crop Inputs6 Things To Know About The ChemChina-Syngenta Deal
February 3, 2016
After months of rumors and speculation, Syngenta has announced that ChemChina has offered to acquire the Swiss-based company. “In making Read More
FertilizerPhosphorus: Is Band Or Broadcast Application The Better…
February 3, 2016
Is band or broadcast application the better method when it comes to phosphorus? The answer to this question depends mostly Read More
Syngenta Sign
Crop InputsChemChina Nearing Deal To Buy Syngenta For Record $43 B…
February 3, 2016
China National Chemical Corp. is nearing an agreement to buy Swiss pesticide-and-seeds-maker Syngenta AG for about 43.7 billion francs ($42.8 Read More
Herbicides2015 ASA Trials Demonstrate Valent Fierce XLT Herbicide…
February 2, 2016
Valent U.S.A. today announced that new Fierce XLT Soybean Herbicide ranks in the top tier among growers for length of Read More
Crop Protection Products in storage
Paul SchrimpfCrop Input Selling: Return Of The Price List
February 2, 2016
It was a good 15 years ago, shortly after I first started writing for this esteemed publication, that it all Read More
Potash storage at Growmark
FertilizerThe Phosphate And Potash Outlook For 2016
February 2, 2016
Like other commodities, prices of the leading plant nutrient products dropped sharply in 2015. At this writing, the price of Read More
Chesapeake Bay
StewardshipKeeping A Watch On Water Issues
February 2, 2016
During a down cycle in the market, it’s difficult to think about investing for the long term. For retail businesses, Read More
Young Corn Plants
FertilizerNutrient Considerations For Low Corn Prices
February 2, 2016
Corn prices are low and many producers are asking tough questions about their nutrient management programs. Here are some suggestions Read More