FARM FUNDING
After nearly three years of short-term extensions, Congress is once again debating and drafting comprehensive farm legislation. In May, the House passed the Farm, Food, and National Security Act of 2026 (H.R. 7567), while in late June Senate Agriculture Committee Chairman John Boozman (AR) released the Agricultural Act of 2026, a discussion draft providing the Senate a starting point for negotiation with other committee members.
While the two proposals differ in several areas, they share broad agreement on many of agriculture’s priorities. Both bills would strengthen the farm safety net, invest in conservation, modernize USDA credit programs and expand support for specialty crops through fiscal year 2031. Perhaps more notable than what the Senate proposal includes is what it leaves out. Unlike the House bill, the Senate draft largely avoids the most politically divisive provisions, instead focusing on areas where bipartisan consensus already exists.
Title 1: Commodity Programs
While many Title I provisions were addressed through the One Big Beautiful Bill (OBBB), both the House and Senate proposals recognize that the current farm safety net has not kept pace with rising production costs. Both the House and Senate bills as drafted will:
- Increase statutory reference prices under the Price Loss Coverage (PLC) program;
- Raise marketing assistance loan rates;
- Update Agriculture Risk Coverage (ARC) benchmark calculations;
- Continue Dairy Margin Coverage (DMC); and
- Reauthorize disaster assistance programs.
- Both bills also include ad-hoc assistance for specialty crop producers via the Specialty Crop Assistance Framework and authorize USDA to administer future disaster relief payments through state disaster block grants.
The Senate proposal also includes several administrative improvements, including expanded authority for USDA to continue marketing assistance loans during appropriations lapses and additional Commodity Credit Corporation transparency and reporting.
The House proposal includes several producer-focused provisions not found in the Senate bill, including restoring tobacco as a Commodity Credit Corporation commodity, authorizing electronic disaster assistance applications, directing USDA to study fertilizer storage loans, and revising livestock indemnity standards for losses caused by Mexican wolves.
Title 2: Conservation Programs
Conservation represents another area of general agreement between both chambers. There are no substantial changes to the following conservation programs in either proposal:
- Conservation Reserve Program (CRP)
- Environmental Quality Incentives Program (EQIP)
- Conservation Stewardship Program (CSP)
- Agricultural Conservation Easement Program (ACEP)
- Regional Conservation Partnership Program (RCPP)
Both bills would incorporate much of the Inflation Reduction Act’s conservation funding into the farm bill baseline, providing long-term funding certainty beyond annual appropriations.
The two proposals diverge primarily in implementation. The Senate bill places greater emphasis on CREP, technical assistance, updated conservation practice standards and administrative flexibility, while the House proposal focuses more directly on conservation outcomes.
Title 5: Credit Programs
Credit title provisions are among the least controversial sections of both bills and have provided critical updates for the Farm Credit System. Both proposals include measures affecting Farm Credit partnerships, the Farm Credit Administration, USDA loan guarantees and fishing/aquaculture lending.
- H.R. 1246 would give Farm Credit institutions authority to partner with community banks and other lenders to finance essential community facilities.
- H.R. 1063 would confirm FCA as the Farm Credit System’s sole regulator and protect certain applicant demographic information.
- S.899/H.R. 1991 would increase amounts for USDA Farm Service Agency loan guarantees.
- S.1217/H.R. 2518 would expand Farm Credit’s ability to lend to businesses supporting fishing and aquaculture.
House Only:
- H.R. 6779 USDA Loan Modernization Act would expand eligibility for certain direct loans.
- H.R. 7426 USDA Express Loan Act would simplify applications for real estate and operating loans up to $1 million.
Senate Only:
- Expanding rural-business equity access through RBIC reforms.
- Promoting U.S. agricultural exports.
- Clarifying CoBank renewable and waste authority.
- Improving transparency and safety and soundness for Farmer Mac.
Overall, both proposals seek to modernize USDA lending while improving producer access to capital and strengthening the Farm Credit System.
Title 10: Horticulture Programs
Support for specialty crop producers remains a priority in both proposals. Both bills continue Specialty Crop Block Grants, Local Agriculture Market Program support, specialty crop market reporting, National Plant Diagnostic Network funding and National Organic Program activities.
The Senate proposal expands organic certification cost-share, food safety education, biotechnology coordination and agricultural quarantine inspection funding. The House proposal places greater emphasis on hemp production, organic oversight and improved organic data collection.
Title 11: Crop Insurance Programs
The crop insurance title shows strong alignment between the two proposals. Both bills strengthen premium assistance for beginning farmers, improve Whole-Farm Revenue Protection, expand quality loss adjustment coverage, continue research and development and reinforce program integrity.
The Senate proposal includes additional changes to yield determinations and Federal Crop Insurance Corporation administration. The House proposal establishes a Specialty Crop Advisory Committee to give specialty crop producers a formal role in shaping federal crop insurance policy.
Major Policy Differences Outside the Core Farm Bill Titles
The House bill focuses more on program modernization and regulatory reform, while the Senate draft provides broader policy and programmatic expansions. Major differences include SNAP reforms, year-round E15, California Proposition 12, foreign ownership restrictions and regulatory reforms.
- SNAP reforms — The House includes more significant changes to SNAP eligibility, administration and spending.
- Year-round E15 — The House addresses nationwide year-round sales of E15 gasoline.
- California Proposition 12 — The House addresses livestock production standards associated with Proposition 12.
- Foreign ownership of agricultural land — The House adopts broader restrictions on foreign ownership of farmland.
- Regulatory reforms — The House contains more expansive pesticide and environmental provisions.
Looking Ahead
Despite their differences, the House and Senate proposals share significant common ground. Both seek to strengthen the farm safety net, preserve conservation investments, modernize agricultural lending, expand specialty crop support and reinforce crop insurance for producers facing higher costs and increasing risk.
The principal differences lie less in agricultural policy than in broader political priorities, particularly around nutrition policy. The challenge ahead will be preserving bipartisan consensus around core farm programs while resolving the broader policy issues.
