Earlier this week, ag leaders told a Senate Ag panel that farm bill spending must be increased to meet soaring input and interest costs, inflation, foreign competition, and disasters. In the way of that increase is the looming debt ceiling crisis.
“I have serious concerns about the potential for default that’s hanging over our heads, for all of us who care about this farm bill,” says Senate Ag Chair Debbie Stabenow.
The Michigan Democrat harkens back to what happened during the 2011 debt limit crisis.
“Ultimately, that ended up in across-the-board cuts to a variety of mandatory programs, including ARC and PLC, which continues today…and will continue for another eight years, regardless of the current debate—5.7 percent every year.”
Treasury Secretary Janet Yellen says the U.S. could default as early as June 1 without a White House-GOP deal to raise the nation’s borrowing limit—a deal that could severely limit new spending.
Iowa Republican Chuck Grassley weighed in while questioning American Farm Bureau’s Zippy Duvall.
“I continue to hear that we need to improve and strengthen the farm safety net. Do you have any idea of ways of doing that, without spending any more money?”
Duvall laughed while responding, “I wish I did—I’d get the prize of the day.”
Responses to that question were similar from other farm group witnesses who all sought more money to boost crop insurance, ARC and PLC reference prices, conservation, and trade programs.
National Association of Wheat Growers’ Brent Cheyne argued, “The farming safety net makes up only two-tenths of one percent of federal spending. It is essential to keep food supplies stable and rural economies thriving.”
Over 400 farm and food groups have asked Congress’ budget committees to increase the farm bill ten-year baseline. That baseline is already at a record 1.4 trillion dollars.
Source: NAFB News Service
