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House ag's farm bill moment is here
Story Date: 4/19/2018
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Source: POLITICO'S MORNING AGRICULTURE, 4/18/18
It's a big day for the House Agriculture Committee, as members are set to consider the farm bill during a markup that's expected to be relatively short, despite all the political wrangling over the bill and the changes it would make to the Supplemental Nutrition Assistance Program. House Ag Chairman Mike Conaway said Tuesday evening that he's not expecting Democrats to introduce any amendments, which would serve to speed up the process, or vote in favor of H.R. 2 (115). Some 20 amendments from Republicans are expected.
Here are some dynamics to watch this morning:
Easing limits on subsidies: Criticism has been building of provisions in the House bill that would make it easier for some farms to cash in on additional subsidies, particularly as Conaway pursues a plan to make it more difficult for millions of low-income Americans to receive SNAP benefits unless they meet stricter work requirements.
House Agriculture proposes allowing more family members, like first cousins, nieces and nephews of farm owners, to qualify for up to $125,000 in commodity subsidies as long as they earn less than $900,000 in adjusted gross income. Those limits now apply to limited liability companies and S-corporations, with owners splitting subsidies based on the portion of the business they own. Under the House bill, each individual owner would get their own payment limit, as long as they fall under the AGI threshold, Pro Ag's Catherine Boudreau reports this morning.
Conaway told POLITICO the changes are intended to keep family farms intact across generations, while also ensuring that farm policy treats all farms equally, regardless of their ownership structure. Other pass-through entities, like general partnerships and joint ventures, are also exempt from subsidy caps and means tests due to provisions in the 2014 law.
The loophole argument: But critics, including an influential Republican senator, advocates for smaller farms and taxpayer watchdog groups, are calling Conaway on what they see as a bluff. Sen. Chuck Grassley told reporters on Tuesday that the way House Agriculture is trying to revamp SNAP is "pretty inconsistent with having loopholes you can drive a truck through where [people] who aren't working on the farm get more money from the federal Treasury."
The National Sustainable Agriculture Coalition, the Environmental Working Group, and Taxpayers for Common Sense also have criticized the House proposal as paving the way for America's largest farms to rake in unlimited subsidies and skirt what the groups describe as the modest guardrails around commodity payments.
Will members break ranks? There's been some speculation that a few Democrats or Republicans could vote in a way that bucks their faction on the committee, but lately it has sounded like the party lines are likely to hold.
Freedom Caucus wild card: Rep. Mark Meadows, chairman of the conservative Freedom Caucus, said late Tuesday that the group's members are waiting to see what happens in the committee today before taking a stance on the bill. The Freedom Caucus will wield considerable influence over the bill's fate on the House floor.
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