China’s commitments to dramatically increase its purchases of U.S. commodities have raised new questions for farmers as they face decisions about which farm bill program to enroll in and pencil out their finances and risk management for the year.
Government payments to farmers are forecast to hit their highest level in more than a decade because of the trade assistance being provided to producers this year, and the total could go even higher if Congress, as expected, authorizes a new round of disaster aid.
The new farm bill largely preserves the commodity and conservation programs but it includes some significant improvements for dairy producers and also would raise price floors for sugar and other commodities.
A bipartisan farm bill that would protect crop insurance and commodity programs as well as nutrition assistance from cuts passed the Senate by an overwhelming margin, 86-11, clearing the way for negotiations to begin next month with the House.
Leaders of the Senate Agriculture Committee this week will seek to get a strong bipartisan vote for their farm bill draft from the panel, giving the measure momentum as it heads to the Senate floor in the following days.
The Republican chairman and the top Democrat on the Senate Agriculture Committee hope to release a draft of their farm bill this week, and Majority Leader Mitch McConnell promises to move it quickly to the floor.