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Boone, IA (WAND) – While negotiations over a new farm bill remain stalled in Washington, U.S. Department of Agriculture officials say there is still momentum on Capitol Hill to get a comprehensive bill across the finish line.
The uncertainty comes as farmers gather at the Farm Progress Show in Boone this week, where the outlook on the farm economy remains cautious but increasingly optimistic.
“There is a quiet optimism in farm country,” said USDA Under Secretary for Farm Production and Conservation Richard Fordyce.
Fordyce said congressional agriculture leaders remain motivated to reach an agreement.
“Chairman Thompson and Chairman Bozeman both are completely motivated to get a farm bill across the finish line,” Fordyce said.
The farm bill is intended to provide farmers with a long-term federal safety net, but some significant changes to farm programs have already been made through the Working Families Tax Cuts Act.
Those changes include increased payments through the Agriculture Risk Coverage, or ARC, and Price Loss Coverage, or PLC, programs.
USDA estimates ARC and PLC payments will increase substantially this year.
“Last year we paid out about $1.9 billion in ARC and PLC payments,” Fordyce said. “This year the estimate is 13.5 billion, 14.5 billion — somewhere in there.”
The payments are expected to begin going out at the start of the new fiscal year on Oct. 1.
Fordyce said there are still important reasons for Congress to pass a comprehensive farm bill, including changes to USDA lending programs. Those changes could include higher loan limits and additional opportunities for beginning farmers.
Meanwhile, farmers continue to deal with high input costs and uncertainty surrounding federal farm policy.
Fordyce said market conditions have shown some improvement, even as many costs remain up.
“Certainly, input costs just don’t seem to want to come down in a lot of cases,” Fordyce said. “But we are seeing a little bit of a movement up in the market.”
For now, farmers are watching Washington and waiting for lawmakers to deliver the long-term certainty provided by a new farm bill.
Gordon is reporting from the annual Farm Progress Show, which continues Thursday in Boone. WTAX will also have live reports from the show throughout the day from Farm Director Jeff Nalley.