On Friday afternoon, the American Relief Act of 2025 passed the House 366-34-1. This was the third proposal advanced by House Speaker Mike Johnson this week and produced a measure that once is passed by the Senate and signed by the President, will keep the government open through March 14, 2025. It had GOP and Democratic support in the House and also had the blessing of President Elect Donald Trump. Oklahoma Congressman Josh Brecheen was one of the 38 Republicans that voted no.
The Senate missed the midnight deadline to fund the government but just barely- as Senate Leader Chuck Schumer finally got to the actual vote of the CR at about 12:15 AM eastern time. Senate Leader Schumer, Appropriations Chair Patty Murray and Vice Chair Susan Collins all praised the measure ahead of the final vote in the Senate for the 118th Congress. They approved the measure 85 to 11.
The bill would fund the federal government to operate through mid-March. The legislation also includes more than $100 billion in disaster aid and $10 billion in economic aid to farmers, as well as extension of the farm bill through Sept. 30, 2025. Overall, farmers have nearly $31 billion in aid spelled out in the package.
Dropped from the bill was a provision that would have allowed year-round sales of E15.
Also cut was President-elect Donald Trump’s demand that lawmakers remove the debt limit for his first few years in office. Trump’s demands complicated the initial compromise bill that House GOP leaders released earlier in the week. On Thursday night, a funding bill that waived the debt limit until 2027 was defeated on the floor as 38 Republicans joined all but two Democrats in rejecting the bill.
House Appropriations Committee Chairman Tom Cole (R-OK) said, “Disasters know no bounds—they impact cities and states across this nation, leaving communities with destruction and despair. It’s a dire reality faced by so many, including my own constituents in Oklahoma. In the face of recent disasters, Americans throughout the country stepped up to help their fellow Americans, and so must Congress.
“Today, the House acted to provide much-needed assistance in a unified and bipartisan voice as people across the country navigate a way forward. We also supported our farmers, ranchers, and producers to safeguard family farms and ensure food and agriculture security for our nation. The process of recovering from monumental loss demands proper federal support, and this legislation is focused on helping the U.S. heal and rebuild stronger. I encourage our colleagues in the Senate to advance this bill to bring relief to crises felt in every corner of our great nation and keep our government working.”
Former Chairman of the House Ag Committee, Frank Lucas is pleased with the Friday vote(he voted aye): “Extending government funding into early next year and the Farm Bill till September of 2025 allows Republicans and President-elect Trump to get to work on delivering results for the American people. Today’s vote provides economic assistance to American farmers and communities impacted by severe weather, extends the Farm Bill’s authorities, and keeps the government open.”
American Farm Bureau Federation President Zippy Duvall also commented on the Continuing Resolution (CR) passed by the House tonight that includes disaster and economic aid to farmers and a farm bill extension.
“Tonight, the House of Representatives sent a strong bipartisan message that they understand the importance of a stable food supply by passing legislation that includes aid to farmers. For some, it will quite literally make the difference between going under and holding on through another planting season.
“On behalf of farmers across America, I offer them my sincere thanks.
“We are especially grateful to our champions on the House Agriculture Committee, Chairman Glenn ‘GT’ Thompson and Ranking Member David Scott who, along with their colleagues on both sides of the aisle, didn’t give up on negotiations to help agriculture, and to President-elect Trump for weighing-in with strong words of support for farmers.
“We’re disappointed the final measure did not include authorization for year-round E-15 sales, which would have been a win-win for farmers and the American people. This will be a top priority in 2025.
“We now urge the Senate to follow the House’s lead and swiftly pass the CR to avoid a costly shutdown. Once a CR passes the full Congress, they can focus on modernizing the farm bill in 2025 so it actually functions as intended – providing risk management support so farmers aren’t left hanging on by their fingernails as many are now.”
DISASTER AID DETAILS
The bill provides $20.78 billion to help producers with disaster losses during the past two years.
The disaster funds would cover losses from an array of natural disasters in 2023 and 2024 — droughts, wildfires, hurricanes, floods, derechos, excessive heat, tornados, winter storms, freeze events and excessive moisture.
Among those funds, $2 billion is set aside for livestock producers impacted by losses in 2023-24 due to drought, wildfires and floods. Assistance could go to the states as block grants and direct compensation to producers.
The bill also increases payments and losses covered under the Noninsured Crop Disaster Assistance Program (NAP).
ECONOMIC AID DETAILS
The bill provides $10 billion in economic assistance through a formula laid out in the bill. The legislation creates one-time payments to producers based on 100% of planted acres and 50% of prevented-planting acres for the 2024 crop year. The bill requires USDA to issue those checks within 90 days after the bill becomes law.
The payment rates are not final and are subject to USDA discretion, but estimates from House and Senate Agriculture committee staff break down as follows for major crops:
— Corn, $43.80 per acre
— Soybeans, $30.61 per acre
— Wheat, $31.80 per acre
— Seed Cotton, $84.70 per acre
— Sorghum, $41.85 per acre
— Rice (L/M), $71.37 per acre
— Peanuts, $76.30 per acre
— Barley, $21.76 per acre
Those payments would be subject to $125,000 payment limits that could increase to $250,000 for producers who receive 75% or more of their gross income from farming.
ONE-YEAR FARM BILL EXTENSION
The bill provides an extension of the current farm bill through Sept. 30, 2025. The House and Senate Agriculture committees will again be on the clock to try to pass a new farm bill — two years behind schedule.
The extension prevents permanent law from going into effect on Jan. 1, 2025. The “dairy cliff” is often mentioned as the biggest issue with permanent law. Under the law, USDA would be required to buy dairy products to help boost prices to the mandated levels of 117% higher than the current all-milk price. At current prices, around $20.38 per cwt, the mandated price for milk would jump to more than $44.22 per cwt. This would effectively drive private buyers of milk out of the market.
This story includes excerpts from a story posted on Friday by Chris Clayton, Ag Policy Editor of DTN.
