Dec. 19, 2018
www.gfb.org
Vol. 36 No. 25
CONGRESS PASSES 2018 FARM BILL The U.S. House of Representatives and the U.S. Senate have approved the 2018 farm bill. The final bill, which was completed by the Farm Bill Conference Committee, has been sent to President Donald Trump to be signed into law. The Senate passed the bill on Dec. 11 by a vote of 87-13. The House passed it on Dec. 12 with a vote of 369-47. President Trump is expected to sign it as soon as this week. Georgia Sens. Johnny Isakson and David Perdue and Reps. Rick Allen; Sanford Bishop, Doug Collins, Drew Ferguson, Tom Graves, Karen Handel, Hank Johnson, John Lewis, Austin Scott, David Scott and Rob Woodall voted in favor of the bill. The commodity title of the 2018 farm bill reauthorizes the Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs through 2023 with enhancements, improves the dairy safety net (Dairy Margin Coverage), and continues several existing disaster programs, among other things. Producers can choose between ARC and PLC on a crop-by-crop and farm-by-farm basis for 2019/2020 crop years. From 2021 forward, producers can make annual elections. PLC reference prices were maintained at 2014 farm bill levels, but an Effective Reference Price was included, which will allow reference prices to rise up to 115 percent of statutory levels if commodity prices rise—meaning the peanut reference price, for example, could float as high as $615.25 (up from $535). Beginning with crop year 2020, farm owners will have the opportunity to update program yields used to calculate PLC assistance (similar to the yield update in the 2014 farm bill). Yield update will be available for each covered commodity—up to 90 percent of the average yield per planted acre on farms from 2013-2017 times yield update factors. Several targeted reforms were included to improve effectiveness of the ARC-CO program. Marketing loan rates for certain commodities were increased in an effort to more accurately reflect current market prices. For dairy producers, the bill increases coverage options and includes flexibility and reduced premiums. The payment limits and adjusted gross income (AGI) eligibility requirements from the 2014 farm bill were maintained without modification. The “actively engaged in farming” definition was expanded to help family farms. First cousins, -continued on next page