2018 Farm Bill: The Good, the Bad and the Ugly

As we began reading details from the recently passed 2018 Farm Bill, it reminded us of the old 1960s Spaghetti Western starring Clint Eastwood, Lee Van Cleef, and Eli Wallach, “The Good, the Bad and the Ugly,” except in this case no one is likely to end up with the gold. Let’s start with the good.The farm bill eliminates the long-standing prohibition against the growing of industrial hemp on US farms. In addition, the recently passed legislation increases the maximum number of acres that can be enrolled in the Conservation Reserve Program from 24 million to 27 million acres. With 5 years of generally increasing year-ending stock levels that have resulted in low crop prices, the taking of 3 million acres out of production and adding a crop that will compete with existing crops for planted acreage has to be a good thing. These changes may not be enough to restore farm profitability, but in today’s dire financial straits every little bit helps. The bad.The 2018 Farm Bill kept the payment limitation threshold at $900,000 a year in adjusted gross income instead of lowering it to the $700,000 limit that was in the Senate version. Even more troubling is the expansion of those who are allowed to receive farm program payments to more distant relatives of farmers including first cousins, nieces, and nephews, even if they aren’t directly involved in agricultural production.