Ag community thankful for early Christmas gift from Congress
The recent passage of a one-year Farm Bill extension and financial assistance for farmers dealing with natural disasters, high production costs and declining prices is welcome relief to Texas agribusinesses.
Capital Farm Credit is grateful to our lawmakers whose actions literally decided whether some farmers could continue putting food on Americans’ tables next year.
“We’re pleased to see the extension, as well as the emergency and disaster support. It’s needed now more than ever,” said Phil Peabody, CFC executive vice president and chief lending officer.
It has been a difficult few years for farmers and ranchers across Texas. With wildfires in the north, hurricanes in the south, high input costs and low prices for ag products, CFC has been working with member borrowers to restructure their debt, so they have extra time to pay.
“We also work with them to make sure they have access to a loan for next year’s crop,” Peabody said. “It’s our willingness to work with our members, providing them individualized customer service and giving back though our annual profit-sharing patronage program that sets us apart from other financial institutions.”
The Continuing Resolution passed by Congress and signed by President Joe Biden over the weekend includes $10 billion in farmer aid. It also includes $21 billion in disaster aid for agriculture, with $2 billion of that set aside for livestock producers. It also extended the 2018 Farm Bill by one year.
CFC Chief Executive Officer Jeff Norte said he looks forward to working in 2025 to get the Farm Bill overhauled for the long-term benefit of American agriculture.
“We look forward to working with the new Congress on a comprehensive rewrite of the Farm Bill next year,” Norte said. “All producers need the certainty of a full five-year farm bill with additional federal investment that reflects today’s market reality.”
Farmers have suffered economic hardship for the past several years. A surplus supply – mostly because of competition from abroad – has lowered crop prices, while agribusinesses are dealing with increased operating costs and unprecedented weather. Costs of seed, fertilizer, chemicals, equipment and labor have continued to go up while yields have gone down.
Relief from the financial assistance should be available to local farmers and ranchers in about 90 days. A story on AgWeb.com outlines the estimated amounts of assistance that farmers could possibly receive based on their acreage and type of commodity.