09.12.24

Hoeven: In a World of Increased Uncertainty for Ag Producers, We Need to Get the Farm Bill Done

Senator Outlines Impacts of Low Commodity Prices & High Input Costs on Farmers, Calls for Updates to Crop Insurance & Counter-Cyclical Safety Net

WASHINGTON – During remarks delivered on the floor of the U.S. Senate this week, Senator John Hoeven outlined the need for Congress to pass a Farm Bill that makes key investments in the farm safety net. To this end, Hoeven is working to advance the following priorities, among other efforts:

  • Maintaining and strengthening crop insurance, the primary risk management tool for many producers.
    • Improving the affordability of higher levels of coverage, consistent with Hoeven’s FARMER Act, will better enable producers to weather natural disasters and reduce the need for ad-hoc disaster assistance.
  • Updating and improving the counter-cyclical safety net, including the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs.
    • Hoeven stated that reference prices need to reflect market realities and the cost of production that farmers are currently facing.

“During the recent state work period, I visited with farmers and ranchers from across North Dakota to gather feedback on their most pressing issues,” said Hoeven. “As part of these efforts, I convened a field hearing of the Senate Agriculture Appropriations Subcommittee near Fargo, North Dakota to discuss the future of agriculture research and development.

“While the hearing focused on research, we also heard from numerous witnesses about the need to pass a Farm Bill and what needs to be in there to make sure it works. That means a strong commodity title, updating crop insurance and the counter-cyclical safety net. Those two tools are how our farmers manage risk in a world where they don’t control prices, they don’t control weather and they don’t control trade.

“Economic conditions in farm country continue to worsen. Last week, the Farm Income Forecast from USDA came out and indicated that lower commodity prices, high input costs and elevated interest rates continue to create a real challenge for our producers… Adjusted for inflation, the 2024 net cash farm income projections for corn, soybeans, and wheat represent the worst numbers since USDA began collecting this data 15 years ago. Now, we have the opportunity to address this through the Farm Bill.

“Between the framework released by Senator Boozman and the bill that’s come out of the House Ag Committee, it’s going the right direction. The reality is that we’re in position to get it done, but we need to come together on a bipartisan basis and reach agreement on updating the reference prices in the counter-cyclical safety net and making the updates needed for crop insurance.”

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