U.S. House Ag Committee Passes The “Skinny” Farm Bill

In mid-February, the U.S. House Agriculture Committee Chairman, Congressman Glenn (GT) Thompson (R-PA) released the text for the revised version of the U.S. House Farm Bill, which is titled: “Farm, Food and National Security Act of 2026” (FFSNA), or so-called “Skinny Farm Bill”. The House version of the Farm Bill was reviewed and was approved by the entire U.S. House Agriculture Committee by a vote of 34-17. The proposed Farm Bill was approved by all Republican members of the Ag Committee. as well as by seven Democratic members of the Committee; however, there was strong opposition to the proposed Bill by the Democratic leadership on the Ag Committee. More details on the U.S. House Farm Bill can be found at: https://agriculture.house.gov/farmbill/
The 2023 crop year was set to be the final year for the 2018 Farm Bill; however, the 2018 Farm Bill has received three one-year extensions for the 2024, 2025 and 2026 federal fiscal years, and will now expire on September 30, 2026. Farm Bills are one of the most comprehensive pieces of legislation that are passed by Congress, with programs ranging from farm commodity programs to food and nutrition programs, from conservation programs to rural development programs, and several more. In many cases, finalizing a Farm Bill can be quite controversial, both along political party lines and geographical differences, with members of Congress wanting to protect the farm, food, conservation, and economic interests of their State. The so-called “skinny” Farm Bill covers all titles and provisions normally in the Farm Bill, including the commodity, crop insurance, and nutrition title provisions that were included in the “One Big Beautiful Act” (OBBA) that was passed by Congress in 2025.
The OBBA that was passed in 2025 provided $389 billion in funding over ten years for numerous USDA programs, including several Farm Bill Title I and Title IX provisions that are related to commodity programs and crop insurance. Following are changes that were enacted through the OBBA legislation that are included in the Farm Bill:
Title I - Commodity Programs
­• The statutory (minimum) reference prices were increased by 10 to 20 percent for all farm program crops, beginning with the current 2025 crop year. Following are the increases in statutory reference prices for some common crops:
Corn - $4.10 per bushel (up 11 percent from $3.70/bu.)
Soybeans - $10.00 per bushel (up 19 percent from $8.40/bu.)
Wheat - $6.35 per bushel (up 15 percent from $5.50/bu.)
• The existing formula for calculating the effective reference price (ERP) for a given commodity in a given year continues to be the greater of 85 percent of the “Olympic average” national market year average (MYA) price for the previous five years or the statutory reference price for a crop. For example, the current corn ERP for the 2025 and 2026 crop years is $4.42 per bushel, while the soybean ERP for 2025 and 2026 is $10.71 per bushel. The ERP cannot exceed 115 percent of the statutory reference price.
• Increases the ARC-CO guarantee to 90 percent of the benchmark (BM) revenue (formerly 86 percent). The BM revenue is the county BM yield time the BM price (5-year “Olympic” average price). The maximum ARC-CO payments increase to 12 percent of the ARC-CO revenue (formerly 10 percent).
• Increases the marketing assistance loan (MAL) rates for most commodities by 10 percent.
• Allows for the addition of up to 30 million new crop base acres, targeting farms that currently have no base acres, or that have planted more acres to program crops in recent years than the existing base acres. This provision would not affect existing crop base acres.
• The farm program payment limit has been increased to $155,000 for any eligible individual or entity (formerly at $125,000). The payment limit language was also adjusted to put farm LLC business structures under the same criteria as exists for farm general partnerships for payment limit purposes.
Title XI - Crop Insurance
• The OBBA increased the federal premium subsidies by 3 to 5 percent for most coverage levels of individual crop insurance. Additional premium reductions were also added for beginning farmers during their first ten years of farming.
• The premium subsidy for both the Supplemental Crop Option (SCO) and Enhanced Coverage Option (ECO) crop insurance was increased an 80 percent subsidy level. The SCO coverage will increase to 90 percent in 2027 (currently at 86 percent), while ECO offers 95 percent coverage. SCO coverage is now available with either the PLC or ARC-CO farm program choice (formerly only available with PLC).
Key provisions for other Titles in the “Skinny” Farm Bill:
• Title II – Conservation - The OBBA addressed some provisions for EQIP, CSP, and ACEP programs; however, it did not address the Conservation Reserve Program (CRP). The proposed Farm Bill will maintain maximum CRP acres at the current level of 27 million acres through 2031.
• Title III – Trade - Broadens USDA’s role in for trade and food aid programs.
•Title IV – Nutrition - The OBBA made several changes to the Supplemental Nutrition Program (SNAP). The proposed Farm Bill calls for more USDA commodity purchases from local producers for school and food aid programs.
• Title V – Credit - The FFSNA would increase the maximum loan levels for Direct and Guaranteed FSA loans, as well adjusting criteria for FSA beginning farmer loans.
• Title VI – Rural Development - The proposed Farm Bill reauthorizes and expands many USDA programs related to rural electricity, water and sewage systems, broadband connection, fire departments, and other rural infrastructure. This Title also supports small business loans and grants, rural childcare programs, and many other programs important to rural communities.
• Title VII – Research, Extension & Education --- This title authorizes USDA funding for agricultural research and extension service programs through the land grant universities in various States. There is also special funding to support rural mental health services and programs.
•  Title VIII – Forestry - Focuses on USDA programs related to forest management and stewardship programs, wildfire prevention, agroforestry initiatives, and other Forest Service programs.
• Title IX – Energy - Authorizes funding for USDA research related to sustainable aviation fuel (SAF); however, the FFSNA did not address the nationwide implementation of year-round 15 percent ethanol blends, or any other items related to expanding the use of biofuels.
• Title X – Horticulture - This title authorizes USDA funding for programs for fruits and vegetables, specialty crops, organic production, urban agriculture, etc. The proposed Farm Bill would limit the ability of States to regulate certain pesticides and crop protection products that are federally registered.
• Title XII - Miscellaneous - This Title includes a broad set of USDA programs addressing animal health and diseases, supply chain and national security issues, and emergency preparedness. One of the more controversial provisions in the FFSNA would restrict States from enacting legislation dictating animal production practices that could impact interstate trade of agricultural products, such as the Proposition 12 legislation in California.
The passage of the “skinny” Farm Bill by the U.S. House Agriculture Committees is the first step toward the possible completion of a Farm Bill by the end of 2026; however, many steps remain to complete that process. The Farm Bill will need to be approved by the entire U.S. House and the U.S. Senate, before ultimately sending it to the President for final approval. There are likely to be several amendments and proposed revisions to the FFSNA before a final Farm Bill is finally passed. This may be difficult to accomplish in 2026, given the current political divide that exists.
For additional information contact Kent Thiesse, Farm Management Analyst, Green Solutions Group Phone --- (507) 381-7960; E-mail --- [email protected]