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President Trump signed the new Farm Bill on December 20,
2018. The 2018 Farm Bill is similar to the 2014 bill with minor changes.
Ranchers and farmers were anxious for this bill to pass because the net farm
income had decreased by 12% in recent years. The farm economy was not doing
well; there were low crop prices and farms were going out of business. In
addition, there was pressure for this bill due to the trade war in China.
Ranchers and farmers wanted to feel a sense of security and improvement. According
to the Washington Post article, “Congress
Just Passed an $867 Billion Farm Bill. Here’s What’s In It;” the
2018 Farm Bill “is good news because it provides a strong safety net for farmers
and ranchers, who need the dependability and certainty their legislation
affords.”
For a more in-depth knowledge about the 2018 Farm Bill, an
interview was conducted with OSU’s own Dr. Amy Hagerman.
Who is Dr. Amy Hagerman?
Dr. Amy Hagerman is part of the Department of Agricultural
Economics. She specializes in agricultural and food policy, and her research
interests include; animal health, disaster preparedness and response, farm
policy, and risk management. Hagerman is originally from Oklahoma and is an alumni of OSU. She studied at Texas A&M for graduate school and later went on to receive her PhD. Hagerman worked
for the U.S. Department of Agriculture in Washington, D.C and Colorado. After her time away, she decided to return to her southern roots. Hagerman is largely involved
in the extension program at OSU and conducts research. She develops material
for county and regional educators so that they can better inform individuals
about information pertaining to agricultural economics. A learn-it-lunch is
held every month for these county and regional educators, so that they are
continuously updated with new knowledge. Hagerman offers individuals objective
advice and counsel on a wide variety of agricultural topics. She provides
education, support, and resources to everyone in the county. In addition, she
can connect an individual to an agency or area specialist. Hagerman has contributed
to OSU and the community in a monumental way. Her expertise is exceptional and
she seeks to provide aid to those who crave a better understanding of
agricultural economics. As a land-grant university, OSU has an Oklahoma Cooperative Extension office on campus and in downtown Stillwater for Payne County. Extension is designed to meet the needs of state agriculture and also include 4H and consumer and family resources.
What is the Farm Bill?
The National
Sustainable Agricultural Coalition summarizes the Farm Bill
perfectly; “The farm bill connects the food on our plates, the farmers and
ranchers who produce that food and the natural resources our soil, air and
water- that make growing food possible.” The Farm Bill is renewed every five years.
The bill contains 12 different titles. Title I pertains to commodities and
encompasses the price of crops and the income support of farmers and ranchers.
Title II deals with conservation and provides programs and resources to
conserve natural resources. Next, Title III covers trade and the food exports
and international food programs. Title IV embodies nutrition and the
Supplemental Nutrition Assistance Program (SNAP). About 79% of funds are
contributed to the nutrition title. Title V covers credit and provides federal
loans and financial aid. Furthermore, Title VI deals with rural development and
infrastructure. This title focuses on improving economic growth and the
development of community. Title VII is centered on research and extension.
Training and education are provided to help support farming operations. Title
VIII is comprised of forest conservation programs. Title IX encourages farmers
and ranchers to use renewable sources of energy. Next, Title X provides funding
and research for specialty crops and horticulture. Title XI covers crop
insurance and provides subsidies to farmers and ranchers. Lastly, Title XII is
focused on miscellaneous agricultural topics that are not covered in the prior
titles. Four of these titles receive the most funding. These include, Title I, commodities; Title II, conservation; Title IV, nutrition; and Title XI, crop insurance.
What is the history of the Farm Bill?
The first Farm Bill was passed in 1933 after the country
recognized the need for agricultural protection due to the Dust Bowl. Over
time, the Farm Bill has evolved into what it is today. A timeline of the
history of the Farm Bill is provided below.
How was the bill passed?
What changes are associated with the 2018 Farm Bill?
The 2018 Farm Bill
will be very similar to the 2014 Farm Bill with a few minor changes. There will
be no extra money for new initiatives and there are changes in the commodities
and conservation titles. Under the new Farm Bill, farms that been
converted to grasslands or pastures since 2009 will no longer be eligible for Agricultural
Risk Coverage County Option (ARC) and Price Loss Coverage (PLC) payments.
According to Agweb, this revision
was made to "ensure the farm safety net is targeted to those farms that
are producing covered commodities." The PLC sets a reference price for the
crops. If production falls below the PLC, farmers and ranchers receive payments
to break-even. The AgWeb article, “The 2018 Farm Bill: What
You Need to Know,” explains that the PLC “provides assistance to producers
when the market price for a covered commodity falls to critically low levels.”
ARC is a shallow loss revenue program. Agweb describes that ARC “provides
assistance to producers when actual crop revenue for a covered commodity falls
below 86% of the benchmark revenue.” The new Farm Bill allows individuals the
opportunity to change options after 2021. This may prove beneficial if one of
the programs is not favorable due to the year’s crop and economy. The
opportunity to change options gives the farmers and ranchers a sense of power
and control over a risky business endeavor.
The proposed Farm Bill suggested that stricter requirements
be placed on SNAP. This proposed bill advised that able-bodied adults without
dependents must work at least 20 hours a week or participate in a training
program. However, the finalized bill did not implement these changes to SNAP.
Furthermore, the Conservation Reserve Program now covers a total of 27 million
acres, compared to the 24 million it previously covered. In addition, funding
for the conservation programs has shifted. Funding will be more focused on the
Environmental Quality Incentives Program (EQIP) than the Conservation
Stewardship Program (CSP). The 2018 Farm Bill has other minor changes, but
overall, it is very similar to the 2014 Bill.
In time, farmers and ranchers will recognize if the Farm Bill has improved conditions for them. It is the hope of the nation that our farmers and ranchers will have the support they need, because as Hagerman said; “The Farm Bill touches everything from farm to fork.”
In time, farmers and ranchers will recognize if the Farm Bill has improved conditions for them. It is the hope of the nation that our farmers and ranchers will have the support they need, because as Hagerman said; “The Farm Bill touches everything from farm to fork.”
United States Senate Committee on Agriculture, Nutrition, and Forestry: Provides the full document of the Farm Bill and includes its amendments.
Division of Agricultural Sciences and Natural Resources: Provides fact sheets for Agricultural Economics. Topics include: Ag Lease 101 Publications, Agribusiness Management, Enterprise Budget Samples, Farm Management, Marketing & Outlook, Resource Development & Public Affairs, Tax Management & Financial Planning, etc.
Overview of the Agricultural Improvement Act of 2018: Dr. Amy Hagerman summarizes the new Farm Bill in this article.
Explanation of the Farm Bill: Dr. Amy Hagerman uploaded a video over a powerpoint she created that describes the Farm Bill in detail.
Sun Up TV: Sun Up is "your place for Oklahoma agriculture. Whether it's explaining the latest research, providing updates for current crops or covering the issues that matter most, SUNUP is your source."
Amy Hagerman: This is a link to the Agricultural Economics Department with Hagerman's contact information.
2018 Farm Bill is a lot like the 2014 version, but with some key changes: Dr. Amy Hagerman briefly talks about the changes to the 2018 Farm Bill in a short video.
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