Q&A: Farm Bill Update

Q&A: Farm Bill Update

With U.S. Sen. Chuck Grassley

Q: How did the Working Families Tax Cut law boost the farm safety net?

A: Exactly one year ago on July 4th, President Trump signed into law the Working Families Tax Cuts Act. During my annual county meetings this week across Northwest Iowa, I heard from Iowans how the tax law put more money in their pockets thanks to tax cuts on tips, overtime and senior income. The Republican-led tax law delivered historic tax relief to the American people and unleashed the promise of prosperity, a founding pillar of the American economy as we celebrate our nation's 250th birthday.

The tax law also strengthened the farm safety net, boosting farm risk management programs by more than $65 billion over the next decade. Family farmers feeling the pinch of high input costs will get much-needed relief if market prices fall below federal baseline prices. The Working Families Tax Cuts Act set the minimum threshold at $4.10/bushel of corn and $10/bushel of soybeans. It also improved the formula used to calculate effective reference prices through the 2031 crop year. USDA also will expand eligibility for these risk management programs to 30 million new acres starting in the 2026 crop year, further strengthening the farm safety net for the 2% of Americans who feed and fuel America. The federal law also boosted the government's share of crop insurance premiums to help improve affordability for beginning farmers, enabling more producers to qualify for assistance and secure savings on insurance premiums. On the one-year anniversary of the Working Families Tax Cuts Act, I'm glad these agriculture policies are the law of the land to deliver peace of mind to Iowans whose livelihoods depend on a strong farm economy. Now, I'm pressing to get the five-year farm bill to the president's desk.

Q: What policies are you pushing in the Senate Farm Bill?

A: As a member of the Senate Agriculture Committee, I'm glad the chairman of the committee released a bipartisan discussion draft to keep the ball rolling on the overdue farm bill. The House of Representatives passed its five-year farm bill on April 30th. One of my legislative priorities on behalf of Iowa farmers is addressing the high cost of fertilizer. As a lifelong family farmer, I understand how variable costs of seed, fertilizer, fuel and chemicals impact profitability. High fertilizer costs are hammering farmers' bottom lines across the country, adversely impacting their ability to manage risk and invest in future production. That's why I've been so outspoken to take off the Biden administration's countervailing duties on fertilizer imports from Morocco. I strongly opposed the Biden Commerce Department raising tariff rates from zero to 18% in 2021, costing farmers an estimated $7 billion in the first four years. On behalf of Iowa farmers, I thank President Trump for listening and eliminating these misguided duties to help lower costs. That's a big step in the right direction to address affordability for America's farmers and families, from the farm field to the grocery store.

As work continues on the farm bill in the Senate, I'm glad the discussion draft includes a number of my bipartisan bills that I've introduced or co-sponsored, including:

* Fertilizer Research Act would give farmers a clear-eyed look into market conditions that influence fertilizer costs;

* Farmland Security Act would improve transparency and compliance on reporting requirements of foreign ownership of U.S. farmland;

* Innovative FEED Act would clarify FDA regulation of animal feed substances to reduce foodborne pathogens;

* Farm to Fly Act would foster development of Sustainable Aviation Fuels (SAF) and open a ramp to new markets for farmers and rural economic development;

* U.S. Swine Health Improvement Plan (U.S. SHIP) would standardize biosecurity, traceability and disease surveillance for pork producers.

At the same time, I'm pushing additional policies that would boost the farm economy for years to come, either within the farm bill or another must-pass legislative vehicle leaving the station in this session of Congress. These items include a fix to California's disastrous Proposition 12 that's hurting Iowa pork producers and driving up costs for families and enacting permanent, year-round E15 that would pump $14 billion into the farm economy and lower prices at the pump.

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