The Farm Bill is the foundation of the nation's food policy strategy that expired on September 30 of this year. As a result, an extension was put in place through September 30, 2024, ensuring a budget for a portion of the necessary policies; however, the full ruling is still expected to be ready in the first quarter of next year.
It carries implications for specialty food makers by providing programs to help budding businesses and enforcing policy around top commodities and nutrition programs.
“The Farm Bill is a comprehensive package of legislation that is passed roughly every five years,” said attorney and food policy expert Jeni Lamb Rogers during an SFA webinar on the topic, Thursday. “With rising supply chain costs, Farm Bill support is critical because so many of the raw materials and ingredients that all specialty food makers rely on come from the commodities subsidized by the Bill.”
The Farm Bill comprises twelve titles that address issues regarding the production, purchase, and consumption of food and beverages as well as their social and environmental implications. Nearly a century old, the legislation intends to keep food prices fair for farmers and consumers, ensure an adequate food supply, and maintain the sustainability of natural resources.
Of the twelve titles, Rogers shared that legislation around the following aspects is most relevant to the specialty food industry:
• Commodities—a safety net for wheat, corn, soybeans, peanuts, and rice. Disaster assistance and marketing loan and margin insurance programs also fall into this category.
• Conservation—this includes “working and retired lands” programs that help provide incentives to institute good environmental practices.
• Nutrition—Supplemental Nutrition Assistance Program policies and school food distribution strategies fall under nutrition.
• Miscellaneous—livestock, poultry, limited resources, and socially disadvantaged farmers often get funding through grants or other opportunities in this area.
Rogers noted that, because these programs are outlined in the Bill, they are also at stake. She said that food access, climate change, local or regionally produced food programs, and the future of the hemp crop are all on the table.
When discussing how the upcoming legislation will handle SNAP participation, she said that the Farm Bill devotes the largest percentage of funding to the program, projected to account for 84 percent in the upcoming bill, compared to 76 percent of funding in 2018, and 67 percent of funding in 2008.
SNAP requires beneficiaries to purchase most food items with an Electronic Benefits Transfer card. This includes specialty food so it behooves specialty makers to follow how the Bill is finalized, said Rogers. There are even opportunities for SNAP beneficiaries to devote more SNAP food dollars to specialty food products through the Double-Up Bucks program that emphasizes fresh, better-for-you foods.
The recent Inflation Reduction Act provided increased opportunities for SNAP beneficiaries, and although the act is no longer in effect, it is expected to commute some of its capabilities to the upcoming Farm Bill.
In the video clip below, Rogers explains some of the programs for up-and-coming specialty makers that have been in the Farm Bill in the past and will likely make its way, in some form, in the next one, highlighting the urgency for the legislation to be passed.
To learn more about how the Farm Bill may affect your specialty food business, watch the webinar on demand in the SFA Learning Center.
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