LUBBOCK, TX – Farm bill payment limits could prevent improved safety-net programs from fully protecting commercial family farms during prolonged economic downturns.
Dr. Joe Outlaw, co-director of Texas A&M’s Agricultural and Food Policy Center, says Congress has strengthened Agriculture Risk Coverage and Price Loss Coverage. However, the current $160,000 annual payment limit may still fall short for larger family operations that depend primarily on farming income.
Outlaw notes producers have received $37.09 billion through several temporary assistance programs covering economic losses and disasters. Those programs carried separate payment limits, allowing more support than permanent farm bill programs may provide during widespread losses.
Temporary aid is often delayed, uncertain, and repeated assistance may also contribute to higher input costs. Still, he argues payment limits could make permanent programs less effective and keep pressure on Congress to approve additional emergency assistance.
The House has passed its farm bill, while the Senate released a discussion draft and expects further action after the summer recess.
Farm-Level Takeaway: Payment limits may need to be adjusted if permanent farm programs are expected to replace repeated emergency assistance.