Agriculture Issues In The 2024 Election

The 2024 Presidential election has gathered a majority of the news headlines in recent weeks, as we head to National Election Day on November 5. As we have listened to the presidential debates, interviews, and campaign ads, very little discussion has been focused on issues directly related to agriculture or family farm businesses. However, there are many key issues affecting farmers and the ag industry during this election season. It is also important to remember that there are other elections on November 5th besides the Presidential election, which includes congressional races, state legislative races, and local races for county commissioners, school boards, etc. It is important to pay attention to where the various candidates stand on the issues that are most important your business and your family.
Following are some of the main issues that are important to agriculture during the 2024 election:
• Passing a New Farm Bill -The inability of Congress to pass a new Farm Bill and the provisions in the next Farm Bill are front and center for many farmers and most ag organizations in 2024. The U.S. House Agriculture passed its version of a new Farm Bill earlier this year; however, the bill has not been voted on yet by the entire U.S. House of Representatives. The U.S. Senate has not yet released any version of a new Farm Bill and has offered no timeline for any action on a new Farm Bill.
Most of the congressional candidates from the major political parties in the Upper Midwest agree on many aspects of the next Farm Bill, especially as it related to enhancing and improving the “safety net” programs for farmers. Many of the agriculture leaders, as well as several of the candidates, have proposed increasing crop reference prices, enhancing crop insurance options, and improving risk protection opportunities for livestock producers and farmers that raise specialty crops.
There has also considerable discussion regarding the importance of conservation programs and how those programs can enhance ongoing carbon sequestration efforts in the U.S. Most members of both political parties agree that the nutrition title of the Farm Bill, which accounts for over 80 percent of the annual Farm Bill spending, should not be separated from the Farm Bill; however, there are some differences on specific provisions in the nutrition title. There are also many other important programs and provisions that are part of the existing titles in the Farm Bill, including rural development, ag research and extension, trade promotion, livestock disease mitigation, beginning farmer loans, and hemp production.
The 2018 Farm Bill originally expired on September 30, 2023; however, the current Farm Bill was extended until September 30, 2024. Now the question is: “Will we get a new Farm Bill passed in time for the 2025 growing season in the Midwest, or will we have another one-year extension until September 30, 2025 ?” While there is still a possibility that a new Farm Bill might be completed during “lame-duck” congressional session following the 2024 election, most ag experts feel that another one-year extension of the current Farm Bill until September 30, 2025 is more likely. The experts include the rather large cost of the Farm Bill, differences on nutrition, conservation, and other policies, as well as the continued partisan political divide in the U.S., as the main reasons that a new Farm Bill is not likely to pass later this year.
•Downturn in the Farm Economy - The continued tight margins and low profitability in farming seems to be on everybody’s mind in ag country this Fall. Profit margins in crop production have worsened considerably in the past two years, which could put some farm operations at the brink of financial disaster. Crop production expenses and land rental rates have increased substantially in 2023 and 2024, while crop prices for corn, soybeans and wheat have remained below breakeven levels, and are now at the lowest levels in several years. For Upper Midwest farm operators that are experiencing crop losses in 2024 due to weather issues, the financial situation is likely to be even more severe.
The struggling profit margins for crop producers are somewhat linked to discussions on the new Farm Bill and the need for improved risk management tools for farmers. Many farm operators are wondering if Congress will pass a supplemental agriculture disaster program after this year’s election to deal with 2023 and 2024 crop losses. The last disaster program of this type was only inclusive through the 2022 crop year.
Much of the livestock sector has not fared much better from a profitability standpoint in the past couple of years. Iowa and Minnesota are the top two swine production states in the U.S. and most swine producers have had very low or negative profit margins in the past two years. Dairy profit margins have improved in recent months; however, that followed a long period of very low profit margins that forced several dairy farmers to discontinue operation. Payments through the Dairy Margin Coverage (DMC) program, which is authorized through the Farm Bill, helped prevent even more small-to-medium sized dairy farms from being forced to exit the industry. Dairy and poultry producers have also been dealing with the impacts of the highly pathogenic avian influenza (H5N1) outbreak in certain areas of the U.S.
• Importance of Ag Exports and Trade Agreements - Most agriculture leaders and farm operators are very focused on the importance of having strong trade agreements and solid markets for ag exports. Many farmers are quite concerned about the potential for future trade disputes between the United States and China, as well as the lack of any new trade agreements with other countries. There is also some concern regarding the future of the current trade agreements with China and other countries, as well as with the current United States-Mexico-Canada Agreement (USMCA) trade agreement. China, Canada and Mexico are the three largest trading partners for U.S. ag exports.
• Future of the Renewable Fuels Industry - Many farm operators, agriculture and community leaders, and investors in renewable energy plants, are concerned about government policies related to the development and use of ethanol and other biofuels. Many States in the Upper Midwest, including Minnesota, have a very strong and well-established corn-based ethanol industry, which utilizes over 35 percent of the corn produced each year in the United States. The U.S. Environmental Protection Agency (EPA) has been slow to implement E-15 as an ethanol fuel blend for wide-scale use in the U.S. The renewable diesel industry in the U.S. has also been growing significantly in recent years, which has become more important for soybean usage in the past few of years. In addition to the direct benefits to farmers, renewable energy plants have become cornerstones in rural communities by providing jobs, adding to the local tax base, and enhancing the overall economic vitality of the communities.
Many leaders point to “sustainable aviation fuel” (SAF) as a key growth opportunity for both the ethanol and renewable diesel industries in the future. However, federal agencies have set up very stringent farm-level practices that farmers must follow in order to be eligible to sell their corn and soybeans to processing plants for SAF production. Due to the restrictions being placed on U.S. farmers and the processing plants, some feedstock for SAF production, such as used cooking oil, is being imported from other countries. Ag leaders wonder how the Presidential and congressional elections, as well as statewide elections, might shape the future for ethanol and renewable diesel.
The new Farm Bill, the struggling rural economy, ag trade agreements, and the future of renewable energy issues are only a few of the issues affecting farm families and rural businesses. There are many other issues and programs that affect rural families, businesses, and communities in a variety of ways. These include dealing with the economic challenges currently being experienced by farmers and rural businesses, impact of labor policies and shortages on rural communities, family health care access and costs, expansion of broadband coverage in portions of rural areas, infrastructure needs, and other issues affecting agriculture and rural communities. Elections do have consequences, so take time to find out where the candidates for national, state, and local offices stand on the issues that are most important to your family, your business, and your community.
Note - For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Phone - (507) 381-7960; E-mail - [email protected]
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