By Jamie Martin
The recently passed megabill by Republican lawmakers has introduced major changes to U.S. agriculture funding. The bill expands subsidies for livestock and dairy producers but slashes support for low-income families relying on SNAP benefits.
One significant provision is the Livestock Indemnity Program (LIP), which now compensates farmers 100 percent for livestock lost to predators. Previously, payments covered only 75 percent.
Experts like Vincent Smith from the American Enterprise Institute caution that this may reduce incentives for farmers to implement animal safety measures. As Smith explained, “In principle, every time you reduce a deductible, you increase the likelihood that the mafia will burn down the restaurant.”
The Livestock Forage Disaster Program also sees changes. Farmers can now claim benefits after four weeks of drought instead of eight, with payment amounts doubled.
The bill adds coverage for unborn livestock losses and boosts disease prevention funding under the Animal Health Protection Act.
The Dairy Margin Coverage (DMC) program, a critical safety net for dairy farmers, is extended until 2031. The megabill also raises the premium threshold from five to six million pounds of milk annually, favoring larger producers, especially medium-sized factory farms.
The bill orders the USDA to create a pilot insurance program for poultry farmers. This will offer coverage for increased utility costs due to extreme weather, addressing concerns of contract poultry growers who often face high debt under industry practices.
Beyond livestock, the bill boosts crop insurance funding by $6.3 billion over ten years, raises payment limits, removes income caps, and increases reference prices. Tax benefits for farmers and funding for agricultural trade promotion are also increased.
However, these benefits come at the cost of SNAP, as the megabill cuts federal funding, tightens eligibility, and increases work requirements—potentially lowering fruit and vegetable access for families.
With these issues addressed outside the usual farm bill, the future of U.S. farm policy remains uncertain. While lawmakers may pass a slimmed-down farm bill later this year, the megabill highlights a continued trend of heavy government support for meat and dairy industries—often at taxpayers’ expense and with little regard for environmental impacts.
Photo Credit: usda
Categories: National