December 19, 2024
Antonio Tovar, National Family Farm Coalition (NFFC) Senior Policy Associate, and Liam Fagan, Agriculture Legislative Assistant in Senator Sanders' office, are helping keep NOFA-VT up to speed on the emerging effort to pass the Continuing Resolution, a stopgap bill to fund the government.
On December 19th, Tovar provided the following update:
"Republican leaders on the Agriculture Committees have requested $10 billion for commodity farmers, while President Trump sought nearly $100 billion for disaster relief. Additionally, various states and farmer groups have requested support for operations that do not fit within the commodity system.
Here are the numbers:
- $220 million in block grants for small farm states—with stipulations regarding net farm income for 2023 and farm size—mean that only a few states, including those in New England, Alaska, and Hawaii, will be eligible. This funding would be more flexible than the USDA’s Emergency Relief Program (ERP) and would be managed by the states.
- $20.78 billion for producers with losses, much of which will likely be funneled through ERP.
- $10 billion in economic assistance for commodity growers (wheat, corn, sorghum, barley, oats, cotton, rice, and soybeans).
In total, that amounts to $31 billion, with a quarter earmarked for commodity growers. Given the current climate in Congress, this proposal is better than expected, which is why Democrats are supporting the bill.
These funds will remain available until expended for necessary expenses related to losses in revenue, quality, or production of crops (including milk, on-farm stored commodities, and crops prevented from planting), as well as for trees, bushes, and vines, due to droughts, wildfires, hurricanes, floods, excessive heat, tornadoes, winter storms, freeze, smoke exposure, and excessive moisture occurring in calendar years 2023 and 2024.
$2 billion of this amount is designated specifically for livestock producers and will be provided by the USDA in the form of block grants to eligible states and territories. Payments to qualifying farmers shall not exceed 70% of the loss as determined by the Secretary. A portion of the resources will be used to implement the programs.
For commodity growers, payments may not exceed $125,000 if their average gross income is less than 75% of the threshold, or $250,000 if it is not less than 75% of their gross income. In addition to the clear preference for commodity farmers, the bill extends the 15% ethanol usage in gasoline annually, which particularly benefits corn farmers.
The Emergency Restoration Program received an additional $356 million, the Emergency Conservation Program $828 million, and the Emergency Watershed Protection Program $920 million. The Rural Development Disaster Assistance Fund was granted $362 million, while the Commodity Assistance Program received an additional $25 million that could be use until September 2026.
The situation is further complicated by Trump's late involvement, wherein he stated that while "Republicans want to support our farmers, pay for disaster relief, and set our country up for success in 2025, the only way to achieve that is through a temporary funding bill without Democrat giveaways, combined with an increase in the debt ceiling. Anything else is a betrayal of our country."
Increasing the debt ceiling, previously opposed by Republicans, particularly Freedom Caucus members, was never part of this bill but will linger in the incoming Congress for sure. Democrats are unwilling to negotiate if House Speaker Johnson attempts to introduce a clean version of the Continuing Resolution. Johnson, who currently holds only a three-seat majority, has less than 48 hours to resolve this issue. This dramatic standoff could also jeopardize Johnson's leadership on January 3.
Will the Democratic Party save the day while Johnson faces the risk of losing his seat early next year? Could the Republican House pass their own version? The Speaker is acutely aware of his margins in both the House and the Senate, and he may sacrifice himself to give the American people a good holiday season, but he could also choose to please the incoming President at the cost of a potential shutdown. We will know very soon."
December 20, 2024
The Continuing Resolution has failed on the House floor. What does this mean moving forward?
According to Tovar, "The federal government is set to shut down at midnight tonight. Initially, a 1,500-page bill failed after Elon Musk and Donald Trump called for the removal of concessions made to Democratic leaders. Speaker Johnson then introduced a revised Plan B—a "clean" version of the Continuing Resolution—containing $100 billion for emergency relief, $31 billion for farmers, funding for Medicaid and Medicare, and a debt ceiling extension until September 2027, while omitting previous provisions for ethanol use, community clinics, and rural hospitals. This bill is now 116 pages long but faced significant opposition, failing on the House floor with 38 Republicans voting against it.
Options are limited. Republicans may schedule another vote on the failed Continuing Resolution package or negotiate with Democrats for support. However, they must convince Democrats that Johnson won't backtrack again. Sources indicate that Democrats may provide the votes, but Johnson must consider dropping the debt-limit increase from the previous bill, which could appeal to both Republicans and some Democrats.
Despite some discussions of a short-term Continuing Resolution through mid-January, Johnson's slim majority and an unpredictable incoming president complicate matters. The lingering question is whether Trump and Vance genuinely want a shutdown, as historical precedents suggest they could emerge as the losers, much like during the 2018 shutdown.
If the government does shut down, lawmakers might have the weekend to reach a resolution, potentially reopening by Monday as if nothing happened. However, as it stands, we are likely heading toward a new shutdown that may require resolution by the 119th Congress early next year."