The latest US Farm Bill is working its way through the federal legislature after two years of political deadlock, with voices from the co-op sector among those weighing in on the direction they want it to take.
Since 1933, the federal government has passed a new farm bill every five or six years, setting out policies in areas such as commodity programmes, trade, rural development, farm credit, conservation, agricultural research and nutrition programmes.
The latest iteration, Farm, Food, and National Security Act, was due in 2023, but has been delayed due to fierce political wrangling at Congress, which is keeping programmes active through a temporary extension of legislation passed in 2018.
Bones of contention include Republican efforts to restrict eligibility to food assistance through the Supplemental Nutrition Assistance Program (Snap), which Democrats are resisting. There is also debate over subsidises for climate action and conservation on farms.
The bill passed a key hurdle on 30 April, when it was approved by the House of Representatives by 224 votes to 200, and has now gone to the Senate for consideration.
NCBA Clusa, the main apex body for US co-ops, said the bill includes several provisions tied directly to its legislative priorities, particularly in rural development, co-operative development and rural energy.
“Notably,” it says, “the bill would reauthorise and modernise the Rural Cooperative Development Grant program through FY2031. The provision, based on the Strengthening Rural Cooperatives and Communities Act, would streamline multi-year grants for co-operative development centres with a demonstrated track record of success.”
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Other changes welcomed by NCBA Clusa include allowing under-serviced and rural applicants to better compete within the programme by removing barriers such as “scoring on a curve” within programme match requirements, as well as directing the Interagency Working Groups on Cooperative Development to analyse data on co-ops from the Economic Census and submit annual reports on findings.
The bill would also reauthorise the Rural Energy Savings Program (RESP), says NCBA Clusa, “which allows households and businesses to establish or expand on-bill financing programmes for cost-effective energy efficiency and clean energy improvements”.
The 2026 Farm Bill reauthorises RESP through FY2031 and makes several updates to expand its reach, including by broadening its eligibility to include federally recognized tribes and certain public and nonprofit entities, and authorizing USDA to issue grants in addition to loans for repairs, technical assistance, outreach and training.
Despite these changes, warns NCBA Clusa, this proposal does not align key provisions with the Rural Energy Savings Act.
“Senate consideration of the bill provides an opportunity to fully address priorities for rural electric co-operatives to advance energy affordability for rural households,” it says.
Meanwhile, the bill expands the Farm Credit System, “which is a major part of the co-operative finance and lending system”, which NCBA Clusa says will “expand rural housing loan access and help strengthen local economies”.
The apex also welcomed a new local food procurement programme which would give producer co-ops greater access to regional market supply chains. “The programme would support new agreements with state, tribal, and territorial governments to purchase unprocessed or minimally processed foods from domestic producers within 400 miles of the delivery destination,” said NCBA Clusa, “with distinct preference for small, new, and veteran producers”
The bill also includes provisions for capacity building in rural and underserved areas, with NCBA Clusa said would help co-ops and other local partners in distressed areas better access USDA Rural Development programs, while also supporting technical assistance and modernisation through rural development.
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“These updates preserve and strengthen tools that co-operatives and their partners already use to support rural businesses, improve energy affordability, expand local ownership and build community wealth,” NCBA Clusa added. “For NCBA members and partners, the House bill signals continued recognition of co-operatives as essential parts of rural economic development infrastructure.”
The National Council of Farmer Cooperatives (NCFC) has also been keen to see progress on the legislation. Back in February, its CEO and president Duane Simpson said the release of a draft bill was “an important and welcome step forward for farmers, co-ops, and rural America. Finishing the farm bill process started in last year’s reconciliation is overdue;
“Farmer co-ops rely on strong risk management tools, effective conservation and trade programmes, and policies that support investment and innovation across rural communities. This draft reflects meaningful progress in a number of areas that matter to our members and reauthorises a number of critical programs left out the reconciliation process.
“NCFC remains committed to supporting a strong, bipartisan farm bill that gives farmers and the co-operatives they own the certainty they need to plan, invest, and continue feeding and fueling the country.”
However, the Federation of Southern Cooperatives, which supports Black farmers and landowners, warned: “As it stands, the bill largely maintains the status quo and does not fully address several critical issues. This includes ongoing challenges facing small farmers, landowners, and co-operatives, changes to how ‘socially disadvantaged farmers’ are defined, and reductions to conservation funding.
“There are also concerns around tightening SNAP eligibility without addressing broader access needs.”
With the bill facing further revision and needing final approval from Congress, the Federation added: “Farmers are first responders, and the policies meant to support them and their communities should reflect the realities they face on the ground. There is still an opportunity to push for improvements, and we will continue to stay engaged and keep our member-owners informed as the process moves forward ”
