The latest House and Senate versions of the federal spending bill are headed to reconciliation with the stronger farm safety net intact. University of Arkansas Extension Economist Hunter Biram said the Senate’s version of the farm safety net in the package is almost identical to the House version. This is viewed as encouraging.

Both packages include:

  • An average 15% increase in reference prices across all crops
  • An increase in the Agricultural Risk Coverage (ARC) county guarantee from 86% to 90%
  • ARC maximum payment rate increased from 10% to 12.5% of expected county revenue
  • The supplemental coverage option premium subsidy rate would increase from 65% to 80% and other major multi-peril crop insurance products would see a 3 to 5% increase.
  • Maximum coverage levels for the supplemental coverage option would increase from 86% to 90%
  • A stronger safety net for specialty crop farmers with the maximum revenue protection coverage level increasing from 85% to 90%
  • Benefits for specialty and beginning farmers

Biram said the stronger safety net will help farmers who have been able to withstand the economic downturn so far due to low commodity prices, higher input prices and destructive weather. He adds that Arkansas has experienced a 10-fold increase in equipment auctions since December. That indicates the seriousness of the economic downturn.

Read more about the farm safety net included in the budget reconciliation process here.