Countdown to 100 Years
Thirty years ago, Congress passed a piece of landmark legislation called "Freedom to Farm." It ended decades of price-based subsidies and government control. The 1996 Farm Bill set in motion a new course for farm policy, one that allowed farmers to plant according to market signals.
In the three decades since it was passed, farmers still have freedom to grow whatever crops they want to plant but are still dependent on government payments. Some of those payments come from ad hoc programs that help farmers recover from weather disasters and the loss of markets, while other payments are for conservation programs and other programs. Government payments currently represent 29% of U.S. net farm income but were as high as 40.5% in 2000.
The Exchange covered the Freedom to Farm debate thanks to detailed reporting from the Des Moines Register.
Over the years, farm income has fluctuated based on supply and demand, foreign competition and trade policies. One of the most important factors influencing corn prices was the rise of ethanol, which now consumes roughly 40% of the U.S. corn crop.
As the Exchange approaches its 100th anniversary, it's ironic that farmers, again, are waiting on Congress to pass a new farm bill. The 2018 Farm Bill expired in 2023 and was extended three times. Last year, Congress made certain changes in the One Big Beautiful Bill passed in July, but some farm bill titles, like conservation, weren't included.
With spring planting set to begin within weeks, all eyes on are Congress.