With Congress set to adjourn in just 10 days, Democrats have put forth a significant economic assistance plan. This initiative aims to provide $10 billion in aid to farmers across the nation, aiming to cushion the blow of lower commodity prices. The drive for farm aid is concurrent with the House Democrats' decision-making process regarding the three-way race for the Democratic leadership position on the Agriculture Committee in the new session starting on Jan. 3.

Democrats' Farm Aid: A Lifeline for Spring Planting Season

Democratic Proposal and Its Components

Under the Democratic proposal, a substantial portion of the funds would be directed towards growers of major row crops. Nearly $8.8 billion would be allocated to them. Producers would also receive more than $1 billion in reimbursements for crop insurance premiums and fees related to two similar risk management programs. This expense is offset by reallocating billions of dollars of climate funding into USDA conservation programs.The top recipient state would be Texas, receiving $1 billion in aid. Iowa follows with $860 million, Kansas with $850 million, Nebraska with $650 million, and North Dakota with $640 million. Every state, except Alaska and Hawaii, would get a share of this much-needed money. As stated in a Democratic post on social media, "This is real help that will reach farmers by the spring planting season."

Senate and House Perspectives on Farm Aid

Sen. Cindy Hyde-Smith emphasized that farmers need not only disaster relief proposed by President Biden but also financial aid. She advocated for an additional $15 billion for market losses. An aide to John Boozman, the senior Republican on the Senate Agriculture Committee, stated that "That’s a level of economic assistance Sen. Boozman would support." Boozman and House Agriculture Committee chairman Glenn Thompson have called for "substantial economic aid" in the face of lower farm income. Hyde-Smith also mentioned that the House and Senate Agriculture committees are working on a market loss package of around $15 billion.Hard-line House Republicans oppose the idea of shifting climate funds into the USDA baseline as they seek to rescind as much funding as possible from the 2022 climate, healthcare, and tax law. House Speaker Mike Johnson has reportedly informed farm-state Republicans that an extension of the farm bill cannot include economic aid.