House Agriculture Committee Chair Glenn “GT” Thompson (R-Pa.) indicated this week that the spending cuts his committee will be asked to make as part of the upcoming budget reconciliation package may fall below the initially projected $230 billion—potentially reducing pressure on programs such as nutrition assistance and opening the door to include farm-focused provisions.
Speaking to reporters at the North American Agricultural Journalists annual meeting, Thompson noted that the number is likely to be lower than anticipated, which could ease concerns about major reductions to agricultural spending. “Would I feel more comfortable with a number less than $230 billion? You bet,” Thompson said.
The reconciliation package, expected to include Republican priorities like tax cuts, border security, and energy policy, is being advanced by House committees this week, with the Agriculture Committee set to debate its portion next week.
Farm Bill Provisions Folded Into Reconciliation
According to Agri-Pulse and Progressive Farmer, Thompson confirmed that the reconciliation bill will incorporate key provisions from the House Agriculture Committee’s 2023 Farm Bill—particularly those related to commodity programs and crop insurance.
Notable proposed changes include:
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Statutory reference prices for ARC and PLC commodities may increase by 10% to 20%, which would raise the “maximum effective reference price.”
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ARC guarantee would rise from 86% to 90% of benchmark revenue.
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ARC payment rates (County and Individual) would increase from 10% to 12.5%.
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One-time opportunity for producers without base acres to establish them, potentially expanding eligibility for safety net programs.
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Dairy Margin Coverage (DMC) would increase coverage from 5 to 6 million pounds, with a 25% discount for producers who enroll for the entire farm bill period.
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Expanded disaster relief, including indemnities for loss of unborn livestock.
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Crop insurance changes, such as increased premium subsidies for beginning farmers, and boosting Supplemental Coverage Option (SCO) support to 80%, aligning coverage more closely with cotton’s STAX program.
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Maximum coverage levels for Whole Farm Revenue Protection and SCO would be raised to 90%.
These changes were previously scored at an estimated $50 billion to $53 billion over 10 years, offering significant enhancements to risk management for producers.
Path to a Full Farm Bill Still in Play
While reconciliation will handle budget-impacting elements, Thompson reiterated his commitment to passing a comprehensive Farm, Food and National Security Act of 2025 to include additional measures outside the scope of reconciliation rules. “If we’re able to accomplish some things in budget reconciliation and then we’re able to do what’s left over in the Farm, Food and National Security Act of 2025, it all gets put back together as one big, happy bill,” he said.
On the Senate side, bipartisan momentum is growing for updating key programs through reconciliation. Senator John Boozman (R-Ark.) stated the Senate Agriculture Committee supports using reconciliation to advance ARC and PLC updates, emphasizing that reconciliation would supplement—not replace—the full farm bill process.
Senator Amy Klobuchar (D-Minn.) cautioned that successful passage will require cooperation from the Trump administration, expressing concern about its recent decisions and their impact on the rural economy.
Swine producers should monitor the evolving legislation, as enhanced support for crop insurance, disaster relief, and revenue protection could provide critical stability amid market volatility.
For more updates on legislative developments affecting the pork industry, visit SwineWeb.com.
