By Marlee Jackson and Jeff Helms

WASHINGTON, D.C., Dec. 20 — The Alabama Farmers Federation hailed today’s hard-fought victory to include $10 billion in economic aid for farmers in the American Relief Act. The U.S. House passed the measure in the early evening 366-34, with all seven members from Alabama voting to support the bill. The Senate is expected to approve the continuing resolution later tonight or tomorrow.

The White House has signaled it supports the bill, which funds the government through March 14, includes $21 billion for farmers recovering from natural disasters and extends the 2018 farm bill through September.

Federation President Jimmy Parnell said the relief package is a critical first step in helping farmers stay in business until a new and improved farm bill can be passed.

“Farmers are facing one of the worst economic downturns in four decades,” Parnell said. “Many issues impacting their bottom line are out of their control — including poor trade policies, depressed commodity markets and sky-high inflation. High fuel prices are directly due to President Biden’s war on energy, while the war in Ukraine has led to high fertilizer prices. I am convinced passing this package is one of the most impactful actions the 118th Congress has taken. While $10 billion won’t make farmers whole, it will allow many to plant another crop.”

Farm aid payments would begin within 90 days of the legislation’s enactment. Commodities would be eligible for payments if the gross revenue for the 2024 crop is below the cost of production. 

Estimated payment rates per acre are: 

• Corn – $43.80
• Cotton – $84.70
• Oats – $80.14
• Peanuts – $76.30
• Sorghum – $41.85
• Soybeans – $30.61
• Wheat – $31.80

Prevent-plant acres will be reduced by 50% for the sake of the calculation. Payment limits are separate from annual payment limits under any other program. The limit is $250,000 if not less than 75% of adjusted gross income (AGI) is derived from farming. The limit is $125,000 if less than 75% of AGI comes from farming.

Parnell praised Federation National Affairs Director Mitt Walker’s leadership in rallying farm groups and members of Congress around the need for immediate economic assistance. 

“I have said many times that this effort started in Montgomery with Mitt Walker,” Parnell said. “Mitt began working on the issue months ago, when much of the country was focused solely on the farm bill. We were hearing from our members about the desperate financial situation and knew they couldn’t wait 18 months for a new farm bill to go into effect. Mitt worked tirelessly to gather information, build a coalition and educate members of Congress.”

House Agriculture Committee Chairman G.T. Thompson, R-Pa., and Senate Agriculture Committee Ranking Member John Boozman, R-Ark., played key roles in bringing the relief package to the floor.

Parnell and Walker specifically thanked Alabama’s Congressional delegation, which was unified in support of the bill.

“I want to thank our legislative delegation for their willingness to get in on this and help,” Parnell said. “They’ve been as engaged in this effort as anything I’ve seen. Alabama farmers are blessed to be represented in Washington by senators and congressmen who appreciate agriculture.”