The House Appropriations Committee finalized a resolution on Tuesday that would extend federal funding through March 14, 2025, taking action to avoid a potential government shutdown. This resolution would not only extend the 2018 Farm Bill for another year but also allocate $10 billion in economic aid for U.S. farmers. Additionally, it includes provisions for year-round sales of E15, a gasoline blend with 15% ethanol.
With lawmakers unable to pass a new farm bill this Congress, $10 billion in economic assistance was included for farmers facing hardships from low crop yields, declining commodity prices, and natural disasters, which resulted in $21.94 billion of crop losses in 2023 alone.
However, negotiators could not reach an agreement to include up to $14 billion in conservation funding from the Inflation Reduction Act (IRA), a point of disagreement among Agriculture Committee Democrats and Republicans. House Agriculture Chair GT Thompson (R-PA) has said that while it “should have been now,” he plans to take unspent conservation program money from the IRA and include it into a new five-year farm bill next year. Rep. Mariannette Miller-Meeks (R-IA), a champion of voluntary conservation programs, said that a lack of funding in this short term resolution did not concern her as it could be addressed in a farm bill next year.
This resolution comes a few short days after Congressional leaders dismissed a separate proposal to provide economic aid to farmers. Both Rep. Dusty Johnson (R-SD) and House Chair Thompson indicated that they hoped the agricultural provisions in the continuing resolution would provide temporary relief for farmers until Congress can pass a new farm bill. Johnson noted that while the current package is not comprehensive and more work needs to be done, it is a start to bridging the gap.
In addition to the economic assistance, another key provision is the allowance for year-round sales of E15, a gasoline blend containing 15% ethanol, which is a higher percentage than the standard E10 blend. Allowing year-round sales of E15 is expected to benefit corn growers by increasing the demand for ethanol, providing a substantial market for corn, and supporting the agricultural sector. The provision is also significant for the biofuel industry at large, as it could further solidify ethanol’s role in the U.S. energy landscape. While ethanol serves as an oxygenate for gasoline to reduce pollution, the market should dictate how much ethanol drivers use in their tanks. The government’s forcing of biofuels into the market with subsidies and the nearly two-decade-old Renewable Fuel Standard has harmed American consumers, taxpayers, and the environment.
While a short-term resolution is better than a government shutdown, a comprehensive farm bill must be prioritized in the new year. Otherwise, farmers will be living with 2018 provisions in 2025. Incoming Senate Agriculture Chairman John Boozman (R-AR) has urged Congress to “redouble” their efforts to pass a five-year farm bill in the new year, stating that “The consequences of ignoring the stark realities facing rural America would be devastating to farm families, American agriculture, and our nation’s food security.”
As Congress looks ahead to crafting a new farm bill, it is crucial that the legislation reflects principles that strengthen American agriculture and the broader economy. An updated bill should prioritize private property rights—recognizing that landownership is the strongest incentive for conservation—while also reforming costly and ineffective programs. Additionally, it must ensure that conservation and forest management efforts deliver real, measurable outcomes. By focusing on these core principles, Congress can create a policy framework that benefits farmers, the environment, and the economy alike.
