Update: The U.S House and Senate overwhelmingly passed the 2018 farm bill, which now awaits President Trump’s signature. Below is a statement from Minnesota Corn Growers Association President Brian Thalmann on the farm bill’s passage:

“Minnesota’s corn growers thank the leaders of the House and Senate Agriculture Committees for their work to complete a farm bill this year and members of Minnesota’s congressional delegation for their support of the bill. The full protection of crop insurance, funding of market development programs, and the strengthening of the farm bill’s safety net are welcomed by Minnesota corn farmers. With the severe economic stress on farm families today, growers would have liked to have seen even greater investment in the farm safety net, but this bill makes some meaningful improvements and provides growers with much needed certainty. We are grateful for Congressional approval and President Trump’s promise to sign the bill.”

U.S. House and Senate Agriculture Committee Leaders agreed to a version of the farm bill Monday, providing relief to farmers after some doubted it could be accomplished in 2018. A vote in both the U.S. House and Senate is expected this week.

The current version of the farm bill strengthens the farm safety net, boosts conservation programs and secures funding for developing foreign market initiatives. Here are the highlights most important to Minnesota’s corn growers:

Crop insurance preserved 

• Federal crop insurance is fully protected and preserved.
• Improvements to augment the availability of crop insurance for cover crops, industrial hemp and underserved crops and producers.
• Cover cropping is deemed a good farming practice if the cover crop is terminated according to USDA guidelines.

Farm safety net enhanced under commodity title

• Producers on a farm may make a new election between Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC). Choice is applied jointed to the 2019 and 2020 crop years. Beginning in 2021 crop year, farmers can make an annual decision between ARC and PLC.
• Reference prices for PLC and ARC are established at the greater or current reference prices, or 85 percent of the marketing year average prices for the most recent five years, excluding the high and low prices. Any increase in reference prices are capped at no more than 115 percent of the current reference price.
• For a farm where all crop land was planted or prevented from being planted to grass or pasture from 2009-2017, base acres on the farm will be maintained, but no PLC or ARC payments will be made.  However, this land may be enrolled in a grasslands program under the Conservation Stewardship Program with payment of $18.00 per acre.
• Farmers have a one-time opportunity to update payment yields for PLC on a covered commodity by covered commodity basis.
• ARC payments are based on the physical location of the farm, and a yield plug of 80 percent will be used under ARC. Trend-adjusted yields will be used under ARC to increase yield history, but not in excess of increased yields under trend-adjusted yields through crop insurance. Data from Risk Management Agency will be used to calculate county yields.
• Marketing Assistance Loan rates by bushel will be $2.20 for corn, up from $1.95.
• The definition of “family” will now extend to nephews, nieces and first cousins. Exempts marketing loan gains and loan deficiency payments from pay limits.

Strong conservation title maintained

• The Conservation Reserve Program (CRP) acreage cap will rise to 27 million by 2023, including 8.6 million for continuous sign-up and 2 million acres for grasslands
• CRP soil rental rates are limited to 85-90 percent of the county average.

Full funding for market develop programs

• The Market Access Program, Foreign Market Development Program and Emerging Markets Program will consolidate under Agricultural Trade Promotion and Facilitation Program, which will receive $255 million in annual mandatory funding.

The Minnesota Corn Growers Association would like to thank Congressman Collin Peterson for his leadership on the conference committee and his hard work on behalf of Minnesota farmers. We would also like to thank Senators Amy Klobuchar and Tina Smith and Congressman Tom Emmer for advocating for priorities important to the state’s corn farmers. A special thank you to all of Minnesota’s congressional delegation who have met and worked with MCGA to help make farm bill priorities a reality for corn growers.

You can read the full highlights from the current farm bill here.