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Extension of farm bill won’t mean many changes to commodity programs

What could an extension of the current farm bill mean for producers and their risk management programs?

Brad Lubben, an extension policy specialist with the University of Nebraska-Lincoln, says commodity programs in Title I, like ARC and PLC, must be extended for the 2024 crop. “2024 could be the first two things that are almost identical. Producers will have to think about revenue vs price or ARC vs. PLC.”

He says without an extension, dairy producers would face the dairy cliff, which refers to permanent legislation that was authorized in 1949. “That’s not economically feasible. Those programs really aren’t management in today’s commodity world.”  

If the current farm bill is allowed to expire, permanent law takes effect, which was enacted in 1949 and Lubben says that includes more government regulation.  

Jordan Dux, senior director of national affairs with Nebraska Farm Bureau, says crop insurance won’t be impacted. “That program is permanently funded.  It continues regardless of whether a farm bill passes.”

Dux says funding for research and conservation could be impacted, but that’s highly unlikely in an extension.

Brad Lubben, University of Nebraska-Lincoln:

Jordan Dux, Nebraska Farm Bureau: