Farm Bill 2024: Updates before the deadline arrives

What Is the Farm Bill 2024 and Why Is It Important?

The Farm Bill is a comprehensive piece of legislation that governs various agricultural and food programs in the United States. It includes provisions for commodity programs, conservation, nutrition assistance, and crop insurance. The 2024 reauthorization of the Farm Bill is crucial as it sets the framework for these programs over the next decade.

When Is the Deadline for the Farm Bill 2024?

The current Farm Bill is set to expire in 2024. Congress faces a tight legislative calendar to reauthorize the new Farm Bill before this deadline. Despite efforts, substantive progress has been slow, and the chances of reauthorization in 2024 are diminishing.

Where Does the Farm Bill Stand Now?

As of midsummer 2024, Congress has made minimal progress on the Farm Bill. The House Agriculture Committee reported its bill just before Memorial Day. In June, Senator John Boozman released a series of summaries outlining the Senate Republicans’ framework for the Farm Bill. However, significant legislative movement has stalled.

Why Is the Farm Bill Facing Challenges?

The reauthorization faces several challenges:

• Legislative Gridlock: The lack of agreement and progress in Congress has stalled the reauthorization process.
• Budgetary Issues: The Congressional Budget Office (CBO) released new spending projections, highlighting budget constraints and changes in program costs, complicating the negotiation process.
• Political Disagreements: Disputes over reference prices, SNAP funding, and farm program payments have created significant obstacles.

Who Is Affected by the Farm Bill 2024?

The Farm Bill impacts a wide range of stakeholders:

• Farmers and Producers: The bill’s provisions on commodity programs, crop insurance, and conservation directly affect farmers’ financial stability and operations.
• Low-Income Families: Changes to the Supplemental Nutrition Assistance Program (SNAP) will impact millions of low-income Americans who rely on this assistance.
• Environmental Programs: Conservation programs within the Farm Bill play a crucial role in promoting sustainable farming practices.

How Does Section 280E Affect Cannabis Businesses?

The Farm Bill also intersects with issues facing cannabis businesses, particularly through tax regulations like Section 280E of the Internal Revenue Code. This section prohibits cannabis businesses from deducting ordinary business expenses, impacting their profitability. However, changes in federal laws or future Farm Bill provisions could potentially address these challenges for cannabis companies.

What happened to the Farm Bill 2023?

The Farm Bill 2023 has seen a number of developments:

• The 2018 Farm Bill was extended until September 30, 2024¹.
• The Senate Agriculture Committee started the process for the 2023 Farm Bill with field hearings in Michigan and Arkansas in 2022².
• In May 2024, the House and Senate agriculture committees released summaries of their respective farm bill proposals³.
• The Senate’s proposal is largely bipartisan and aligns with many of Farm Aid’s values, including preserving IRA climate funding and improving the farm safety net³.
• The House Agriculture Committee’s summary indicates a very different and much more partisan bill.
• The full drafts of the House and Senate farm bill are yet to be released³.

In terms of specific proposals, the bill concentrates on funding to combat the citrus disease Huanglongbing, and may expand climate-saving ‘agroforestry’⁵. However, it has been criticized by some for lacking details on spending⁶.

What are the key provisions of the Farm Bill 2024?

The 2023 Farm Bill has several key provisions that address the diverse needs of farmers and the agricultural industry:

1. Commodity Program Reference Prices: These serve as a safety net for farmers by providing support when market prices fall below a certain threshold¹.
2. Conservation and Climate-Smart Programs: The bill places a significant emphasis on conservation and climate-smart agriculture. It includes programs aimed at promoting sustainable farming practices, protecting natural resources, and mitigating the impacts of climate change. These programs provide financial incentives for farmers to adopt conservation practices, such as cover cropping, nutrient management, and soil health improvement.
3. Agricultural Research and Technical Assistance: The bill allocates funding for research programs, education, and extension services that support innovation, training, and knowledge transfer to the next generation of farmers and ranchers¹.
4. Rural Infrastructure and Broadband Access: The bill includes provisions to improve rural infrastructure, such as roads, bridges, and water systems, to support economic growth and enhance the quality of life for rural residents¹.
5. Nutrition Assistance Programs: These programs are designed to enhance access to healthy food for low-income populations¹.

In addition, the NRDC has outlined some priorities for the 2023 Farm Bill²:

• Reducing Barriers to Organic Agriculture: The bill should build on the USDA’s Organic Transition Initiative by providing flexible assistance for organic and transitioning farmers and ranchers².
• Reducing Food Waste Across the Food System: The bill should invest in efforts and resources that address the biggest drivers of food waste².
• Incentivizing Cover Crops to Boost Healthy Soils: The bill presents an opportunity to strengthen the federal crop insurance program by offering voluntary financial incentives to farms that use this risk-reducing practice².

Former Sen. Saxby Chambliss, who worked on the last farm bill, mentioned that these bills affect food prices, availability, global trade, and renewable fuels. The current farm bill WILL expire in September 2024, so lawmakers and advocacy groups are already preparing for the new bill. We sincerely hope the extra time will allow for them to include hot topics from coast to coast.

The Updated 2024 Farm Bill has several policy priorities. Some of these priorities include increasing baseline for farm bill program spending, maintaining a unified farm bill which keeps nutrition programs and farm programs together, prioritizing risk management tools and funding for both federal crop insurance and commodity programs, and ensuring adequate USDA staffing capacity and technical assistance.

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What does the farm bill say about hemp?

The 2018 Farm Bill significantly changed the legal landscape for hemp in the United States. It removed it from the list of controlled substances and categorized it as an agricultural commodity.  This allowed for the cultivation, production, and sale of hemp and hemp-derived products, including CBD, under specific regulations. Since then, the hemp industry has flourished all over the country. The production of hemp-derived CBD became legal at the federal level, as long as it contains no more than 0.3% THC. However, individual states have the authority to regulate or ban CBD within their borders. It is safe for us to presume that the 2024 Farm Bill may include legislation about hemp as there are issues that need to be resolved in order to improve the sector. One of these issues is the FDA’s position on CBD. Lawmakers, stakeholders, and witnesses have highlighted reforms they aim to include in the 2024 Farm Bill in order to reshape and improve the hemp industry.

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What will the 2024 Farm Bill say about Marijuana?

The 2024 Farm Bill is very likely to include several provisions that relate to hemp and cannabinoids. The current dividing line between hemp and marijuana is 0.3% THC. The 2024 Farm Bill may increase the allowable THC amount to 1%¹. Lawmakers, stakeholders, and witnesses have highlighted reforms they aim to include in the 2023 Farm Bill in order to reshape and improve the hemp industry². The bill could change the game for THC products³.

How can Cover Cannabis help my business?

As the legal landscape surrounding hemp and marijuana continues to evolve, businesses operating in these sectors need comprehensive insurance coverage that accounts for the unique risks and challenges they face. Here at Cover Cannabis, we offer tailored insurance solutions for hemp and marijuana-related businesses, including cultivators, processors, manufacturers, dispensaries, and ancillary service providers. Our services are designed to protect businesses from financial losses that may result from property damage, liability claims, product recalls, and other unforeseen events. With our expertise and understanding of the cannabis industry, Cover Cannabis can help businesses navigate the ever-changing regulatory landscape and ensure they are adequately protected. Contact Us for a Free Quote or Give us a Call. 

People Also Ask

Why is hemp legal and not marijuana?

Hemp and marijuana both come from the Cannabis sativa plant, but they have distinct differences. Hemp contains less than 0.3% THC, the psychoactive compound responsible for the “high” associated with marijuana. Because of its low THC content, hemp is considered non-intoxicating and has been legalized for agricultural and industrial purposes.

What is the difference between Hemp Farms and Marijuana Farms?

Hemp farms cultivate Cannabis sativa plants containing less than 0.3% THC for industrial and agricultural purposes, such as producing fiber, oil, and CBD. Marijuana farms grow Cannabis sativa plants with higher THC content for recreational or medicinal use.

What is the USDA’s final rule for hemp production?

The USDA’s final rule for hemp production, published on January 19, 2021, establishes a regulatory framework for hemp cultivation, including licensing, testing, disposal of non-compliant plants, and recordkeeping requirements.

About Cover Cannabis

Cover Cannabis is a company specializing in reliable, discreet, and professional cannabis insurance services for cannabis-related enterprises. Our team comprises seasoned insurance professionals with experience in underwriting and claims management. As the legal landscape surrounding hemp and marijuana continues to evolve, businesses operating in these sectors need comprehensive insurance coverage that accounts for the unique risks and challenges they face.

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