By Marlee Jackson

With increased reference prices, additional base acres and improved disaster assistance, President Donald J. Trump’s “One Big, Beautiful Bill” fulfills his promise to offer a critical lifeline for American farmers.

Trump signed the landmark legislation, which includes new and extended tax cuts, July 4.

Alabama Farmers Federation President Jimmy Parnell hailed the legislation’s hard-fought passage in the U.S. Senate and House.

“This bill not only preserves tax savings for all Americans; it also provides relief for farmers who’ve endured low commodity prices and high production costs waiting on a farm bill for almost two years,” Parnell said. “While no legislation is perfect, failure to act would have meant the largest tax hike in history and continued financial crisis for agriculture. We appreciate the leadership of Sens. Tommy Tuberville and Katie Britt, along with Reps. Robert Aderholt, Barry Moore, Gary Palmer, Mike Rogers and Dale Strong, in getting this to the president’s desk.”

The bill increases spending on farm bill safety net programs by about $66 billion, with $50 billion provided through Price Loss Coverage (PLC) for row crops. This is largely offset by reducing over-payments and tightening eligibility through increased work requirements for the Supplemental Nutrition Assistance Program (SNAP).

The increase in PLC reference prices, and other enhancements to PLC and Agriculture Risk Coverage, take effect for the 2025 crop year. Prior to this legislation, reference prices had stagnated for a decade while production increases skyrocketed.

The legislation also lowers crop insurance premiums and provides new funding for trade promotion, agricultural research, animal health and disaster assistance.

Ag-related provisions include:

• Raising reference prices 10% to 20% per commodity.
• A one-time voluntary allocation of 30 million new base acres.
• Increasing Title 1 payment limitations from $125,000 to $155,000 while adjusting them annually for inflation.
• Modifying the Livestock Indemnity Program (LIP) to include a 100% payment rate for predation losses due to black vultures (a federally protected species which has been known to kill cows and baby calves), as well as a supplemental payment for loss of unborn livestock. LIP includes a 75% payment rate for losses due to adverse weather. 
• Changing qualification for the Livestock Forage Disaster Program (LFP). Farmers would be eligible for one monthly payment if the U.S. Drought Monitor indicates a D2 (severe drought) level for four or more weeks or two monthly payments if D2 for any seven out of eight weeks.
• Expanding Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish (ELAP) eligibility to include catfish at a minimum payment rate of $600 per acre and honeybees when mortality exceeds 15%. For program year 2024, the mortality threshold was 24%.
• Establishing the Poultry Insurance Pilot Program for contract poultry growers experiencing loss due to extreme weather. 
• Funding the Feral Swine Eradication and Control Pilot Program at $15 million per year for fiscal years 2025-2031.

Federation National Affairs Director Mitt Walker said the bill is particularly important with two farm bill extensions in the rearview mirror. U.S. House Ag Committee Chair G.T. Thompson, R-Pa., has floated fall farm bill discussions, though experts say there’s limited hope the plan bears fruit this year.

“The modernized safety net this program provides will have a real, positive impact on Alabama farm families,” Walker said. “It gives our farmers a glimmer of hope as they struggle to hang on for another crop year.”

The bill additionally offers sweeping tax cuts, modernizes the air traffic control system, expands domestic fuel production capacity and boosts defense spending.