The federal government narrowly avoided a shutdown in the wee hours of Dec. 21, 2024, when Congress passed the American Relief Act of 2025, which was eventually signed by President Joe Biden. The short-term agreement continues funding of the federal government until March 14. Importantly for the agriculture industry, the act also includes $31 billion in aid for farmers and ranchers facing natural and economic disaster, as well as a second extension of the 2018 Farm Bill and $2.5 billion in additional aid that will be distributed through the USDA.
The 2018 Farm Bill expired – again, after receiving an initial one-year extension in 2023 – on Sept. 30, 2024, though most impacts of the expiration were slow to develop before its most recent renewal. The extension gives Congress until Sept. 30, 2025, to pass a new farm bill. However, it does not fund 21 programs without baseline farming – so-called “orphan programs.” The first extension included around $177 million for 19 of the 21 orphan programs for the 2024 fiscal year. With no such funding included in the new extension, the fate of programs ranging from the Feral Swine Eradication and Control Pilot Program to the Bioenergy Program for Advanced Biofuels remains in doubt.
The American Relief Act of 2025 also includes $21 billion earmarked for disaster aid for agriculture. The majority of that funding is to be dedicated to covering necessary expenses related to loss of revenue, quality or production for crops. Losses caused by droughts, wildfires, floods, hurricanes, excessive heat, tornadoes, derechos, winter storms, freeze, excessive moisture and smoke exposure could qualify for such aid. From the $21 billion total, up to $2 billion will be used to cover livestock losses caused by drought, wildfire or flooding. The USDA is also authorized to provide disaster assistance to producers who have suffered losses due to Mexico’s failure to deliver water to the U.S. in accordance with the 1944 Water Treaty.
The bill also includes $31 billion in direct payments for farmers and ranchers, $10 billion of which is set aside specifically for economic aid to producers in severe financial peril – for example, row-crop farmers entering a third year of losses on every acre they plant. The bill’s text stipulates that the $10 billion must be distributed within 90 days of enactment through a one-time economic assistance payment to producers of eligible commodities in the 2024 crop year, which includes nearly all crops covered by Title I of the farm bill.
Several agricultural organizations, such as the National Cattlemen’s Beef Association (NCBA) and American Farm Bureau Federation, have been vocal in pointing out that while the American Relief Act of 2025 and the extension of the 2018 Farm Bill provide much-needed relief to American producers, an updated farm bill with a fully functioning safety net would have made much of this Band-Aid solution unnecessary. They continue to advocate for passage of a new farm bill in 2025, which would eliminate the need for Congress to scramble providing last-minute ad hoc aid in the future.
