Rep. Trent Kelly (R-MS) has introduced the Farmer Assistance and Revenue Mitigation Act of 2024 (The FARM Act) which would provide emergency assistance to producers of eligible commodities for which the expected revenue in crop year 2024 is below the projected per-acre cost of production. Acres planted or prevented from being planted in 2024 to the following crops would be eligible for assistance: barley, corn, cotton, dry peas, grain sorghum, lentils, large chickpeas, oats, peanuts, rice, small chickpeas, soybeans, other oilseeds, and wheat. FARM Act payments are calculated as follows: FARM Act Payment = (Projected Cost – Projected Returns) x Eligible Acres x 60% where:
• Projected Cost is the per-acre cost published by USDA’s Economic Research Service for corn, soybeans, wheat, cotton, rice, sorghum, oats, and barley and otherwise as determined by the Secretary in a similar manner.
• Projected Returns for corn, soybeans, wheat, cotton, rice, sorghum, oats, and barley are determined by multiplying the projected 2024 marketing year average price published in the WASDE by the 10-year national average yield for the eligible commodity and otherwise as determined by the Secretary.
• Eligible Acres consist of 100% of the acres planted to an eligible commodity plus 50% of the acres prevented from being planted to an eligible commodity in crop year 2024, as reported to FSA by the producer.
Existing provisions relative to attribution of payments, actively engaged in farming, and other regulations apply. With respect to payment limitations, persons or entities that derive less than 75% of their income from farming, ranching, or forestry are subject to an overall limitation of $175,000 per person or entity. Persons or entities that derive 75% or more of their income from farming, ranching, or forestry are subject to an overall limitation of $350,000 in assistance per person or entity.
The table right provides an estimate of the per-acre payments under the FARM Act. This analysis from the Texas A&M Agricultural and Food Policy Center uses estimates from the October 2024 WASDE for the marketing year average price along with harvested acre yields from NASS. These are merely estimates and are subject to change, however, proposals are starting to take shape, and the levels of support being discussed would provide a meaningful amount of assistance to help offset losses in 2024 which is much needed.
We will provide more information as it becomes finalized. Our leadership have been working diligently in tandem with the National Cotton Council and other organizations on this much needed assistance and we greatly appreciate the underlying champions for serving as original co-sponsors of this pivotal legislation for production agriculture.
The original co-sponsors are as follows: August Pfluger (R-TX), Henry Cuellar (D-TX), Jake Ellzey (R-TX), John Carter (R-TX), Lance Gooden (R-TX), Marc Veasey (D-TX), Michael McCaul (R-TX), Monica De La Cruz (R-TX), Nathaniel Moran (R-TX), Pat Fallon (R-TX), Pete Sessions (R-TX), Randy Weber (R-TX), Ronny Jackson (R-TX), Tony Gonzales (R-TX), Troy Nehls (R-TX), Vicente Gonzalez (D-TX), Austin Scott (R-GA), Barry Moore (R-AL), Chuck Fleischmann (R-TN), Clay Higgins (R-LA), Dale Strong (R-AL), David Kustoff (R-TN), David Rouzer (R-NC), Earl “Buddy” Carter (R-GA), Frank Lucas (R-OK), Gary Palmer (R-AL), Greg Murphy (R-NC), Jerry Carl (R-AL), John Rose (R-TN), Juan Ciscomani (R-AZ), Julia Letlow (R-LA), Marjorie Taylor Greene (R-GA), Michael Guest (R-MS), Mike Collins (R-GA), Mike Ezell (R-MS), Mike Rogers (R-AL), Rick Crawford (R-AR), Sanford Bishop (D-GA),