Overview of the House Agriculture Reconciliation Bill

By Jonathan Coppess, Gary Schnitkey, Nick Paulson, Bruce Sherrick, and Carl Zulauf

As the budget reconciliation process kicks off in the House of Representatives, various committees have begun releasing legislative texts and conducting business meetings for markup. Notably, the House Agriculture Committee unveiled its legislative text on May 12, 2025, and commenced discussions the following day. This article provides an initial overview of the proposed provisions, with further analysis to follow as more information is received, particularly from the Congressional Budget Office (CBO).

Background

The recent agreement between the House and Senate on the concurrent budget resolution, finalized on April 10, 2025, sets the framework for the fiscal year 2025 budget and outlines spending levels for the following nine years (FY 2026-2034). Specific committees received reconciliation instructions mandating changes in spending within their jurisdictions. For the House Agriculture Committee, the goal is to reduce spending by $230 billion over the next decade. Uniquely, the committee intends to incorporate broader provisions than typically seen, including significant changes typically found in the Farm Bill.

Discussion

The House Agriculture Reconciliation Bill aims to boost federal support for farmers through modifications to commodity titles, crop insurance, and other funding arenas. To fund these enhancements while achieving the mandated budget cuts, substantial reductions to the Supplemental Nutrition Assistance Program (SNAP) are proposed.

1. Changes to the Supplemental Nutrition Assistance Program (SNAP)

The SNAP provisions, which span the initial 13 pages of the 97-page bill, introduce modifications to existing work requirements and eligibility criteria. Enhanced documentation requirements may lead to reduced participation, thereby cutting projected spending. Additionally, there are proposals to shift costs to states based on error rates, which could result in a projected federal savings of over $300 billion over the next decade—exceeding the originally mandated cuts.

2. Farm Program Changes

The bill prioritizes increasing statutory reference prices for covered commodities, with plans for adjustments beginning in the 2025 crop year. Future increases are also planned for the 2031 crop year, potentially incurring additional costs. The Agriculture Risk Coverage program trigger levels will rise from 86% to 90% of benchmark revenue, along with other significant increases in farm assistance programs, including loan rates and dairy margin coverage.

3. Payment Limits and Loopholes

The legislation proposes increasing farm program payment limits and introduces waivers for legal entities that derive the majority of their income from qualifying agricultural activities. New exemptions would also apply to certain entities, effectively facilitating larger payments under current regulations.

4. Crop Insurance Adjustments

The proposed crop insurance provisions include maintaining coverage levels while introducing a new top level for aggregated coverage. Additionally, premium subsidy rates would be increased—especially for the Supplemental Coverage Option—aiming to mitigate costs for farmers reliant on such insurance mechanisms.

5. Conservation Program Funding

In line with the previous year’s Farm Bill, the reconciliation bill seeks to rescind unobligated funds for conservation programs while enhancing baseline funding levels for those programs, leading to a permanent increase in funding post-2026.

6. Miscellaneous Changes

The bill encompasses various funding allocations for programs lacking a stable baseline, including research initiatives like the Foundation for Food and Agricultural Research and other market development programs.

Concluding Thoughts

The legislative text presented by the House Agriculture Committee marks an initial step in a complex process. Approval will lead to the incorporation of this bill into a comprehensive omnibus, alongside other reconciliatory legislations from various committees. As the Senate approaches its reconciliation task, unique instructions will necessitate distinct outcomes, complicating potential alignments between the two chambers.

This legislation signals significant changes for agricultural and food policy and poses questions regarding the future of the Farm Bill. Further insights will be available as developments unfold.

This overview of the House Agriculture Committee’s Reconciliation Bill was originally published by Farmdoc.

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