Agricultural Commodities Price Enhancement Act
- Bill Number
- H.R. 2043
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Agriculture and Food
- Status
- Introduced
- Latest Action
- 2025-03-28: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
- Last Updated
- 2025-06-30T15:32:42Z
AI-Generated Summary
Purpose
The Agricultural Commodities Price Enhancement Act (H.R. 2043) aims to raise the baseline "reference prices" for key agricultural crops. These reference prices serve as benchmarks in federal farm programs, such as the Price Loss Coverage (PLC) program, which provides financial support to farmers when market prices drop below these levels. By increasing these prices, the bill seeks to offer greater protection against low commodity prices for producers of wheat, corn, soybeans, peanuts, and seed cotton.
Key Provisions
- Amends Section 1111(19) of the Agricultural Act of 2014 (7 U.S.C. 9011(19)), which defines reference prices for covered commodities.
- Specifies increases for five commodities:
- Wheat: From $5.50 per bushel to $6.50 per bushel.
- Corn: From $3.70 per bushel to $4.20 per bushel.
- Soybeans: From $8.40 per bushel to $10.00 per bushel.
- Peanuts: From $535.00 per ton to $635.00 per ton.
- Seed cotton: From $0.367 per pound to $0.45 per pound.
- No other changes to the structure of the PLC program or eligibility are made; the focus is solely on updating these price thresholds.
Significant Changes to Existing Law
- Directly modifies the reference prices established in the 2014 Agricultural Act, which were set to provide a safety net for farmers through the 2023 crop year (and extended in subsequent farm bills).
- These adjustments represent an approximate 18-20% increase for most commodities, making the thresholds higher than current law and potentially expanding the conditions under which subsidy payments are triggered.
- Does not alter other aspects of farm support, such as payment limits, base acres, or yield calculations.
Potential Impacts
- On government agencies: The U.S. Department of Agriculture (USDA) would likely see increased administrative workload and higher expenditures for PLC payments, potentially straining the federal farm safety net budget (funded through annual appropriations).
- On citizens: Farmers and rural communities reliant on these crops could receive more robust financial support during price downturns, stabilizing farm incomes and reducing bankruptcy risks. However, this may raise costs for taxpayers, as subsidies are publicly funded, without direct benefits to urban or non-agricultural consumers.
- On international relations: Minimal direct impact, though higher U.S. reference prices could indirectly support domestic production, potentially affecting global commodity markets and trade dynamics for these exports (e.g., U.S. soybeans and corn are major global commodities).
Main Stakeholders Affected
- Farmers and producers: Primary beneficiaries, especially those growing wheat, corn, soybeans, peanuts, or seed cotton in major agricultural states like Iowa, Illinois, North Carolina, and Texas, as higher reference prices could lead to larger government payments.
- Agricultural industry: Includes input suppliers (e.g., seed and fertilizer companies), processors, and exporters, who may see stabilized supply chains from protected farm incomes.
- Taxpayers and federal budget: Bear the cost of expanded subsidies, potentially influencing broader fiscal policy.
- USDA and Congress: Responsible for implementation and future farm bill negotiations.
Notable Legal, Constitutional, or Political Implications
- Legal: Builds on existing statutory authority under the Agricultural Act of 2014 without requiring new rulemaking; aligns with periodic updates in farm bills (e.g., the 2018 Farm Bill extended these programs). No challenges to administrative procedures anticipated.
- Constitutional: No apparent issues, as it involves Congress's spending power under Article I, Section 8, to regulate commerce and provide for the general welfare through agricultural support.
- Political: Could appeal to agricultural constituencies in key electoral districts, supporting rural economies amid volatile global prices (e.g., due to weather or trade tensions). However, it may spark debates over federal spending priorities, especially if viewed as favoring specific crops over broader food assistance or deficit reduction efforts. As an introduced bill referred to the House Committee on Agriculture, its passage would depend on inclusion in the next farm bill (expected around 2028).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Davis, Donald G. [D-NC-1]
Recent Actions
- 2025-03-28: Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
- 2025-03-11: Referred to the House Committee on Agriculture.
- 2025-03-11: Introduced in House
- 2025-03-11: Introduced in House
Bill Versions
- Agricultural Commodities Price Enhancement Act — issued 2025-03-11 — PDF (2 pages)