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Reviewing H.R. 10045: The 2024 Ad Hoc Farm Payment Proposal

H.R. 10045 proposed 2024 crop-year payments equal to 60% of estimated losses on eligible acres. Here is how its formula, limits, and estimated cost worked.
From TheFinanceBase Team4 min to read
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H.R. 10045, the Farmer Assistance and Revenue Mitigation Act of 2024 (FARM Act), proposed one-time payments to eligible producers for the 2024 crop year when expected crop revenue per acre fell below expected production costs. Its proposed formula paid 60% of the calculated loss on eligible acres. The bill and its estimates describe a 2024 proposal—not current USDA eligibility, an open application process, or a payment entitlement in 2026.

What was the FARM Act, and how would its proposed 2024 crop payments have been calculated?

H.R. 10045 would have directed the Agriculture Secretary to make a one-time economic-assistance payment for an eligible commodity if its expected gross return per acre was below its expected production cost per acre. The bill’s test was a comparison of estimated crop returns and costs, not a reimbursement of a producer’s documented individual loss. The Congressional Research Service described the proposal in 2024 as one possible response to pressure on farm-sector profitability.

How the bill proposed to estimate a loss

For corn, soybeans, wheat, cotton, rice, sorghum, oats, and barley, expected returns would have been based on USDA’s projected average farm price for the 2024–2025 marketing year and the most recent ten-year national average harvested yield. Production costs would have used USDA Economic Research Service forecasts. For other eligible commodities, the bill left comparable return and cost estimates to the Secretary of Agriculture.

If the estimated cost per acre exceeded the estimated gross return, the difference formed the calculated economic loss. The proposed payment was 60% of that loss multiplied by eligible acres.

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Which acres would have counted

Eligible acres would have included acreage planted to the commodity in the 2024 crop year, plus 50% of acreage prevented from planting because of a natural disaster or another condition beyond the producer’s control. The proposal therefore did not count all prevented-planting acreage at full weight.

What payment limits did H.R. 10045 propose?

The bill proposed limits based on the share of a person’s average gross income for tax years 2020–2022 derived from farming, ranching, or silviculture:

Rank #2
Sale
Share of average gross income from farming, ranching, or silviculture Proposed payment limit
Less than 75% $175,000
At least 75% $350,000

The farmdoc daily authors argued that this structure departed from precedent and could result in higher limits for larger farms. That is their policy analysis of the proposed design, not a settled legal conclusion or an established finding about how payments would have been distributed.

How large was the estimated cost?

Cost figures published in 2024 were estimates of the proposal, not actual spending or current 2026 forecasts.

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Source and year Estimate What it describes
farmdoc daily authors, 2024 At least $21 billion Estimated ad hoc support for major commodities with specified payment calculations; the estimate excluded potential additional costs for other eligible commodities.
Congressional Research Service, 2024 Approximately $20 billion or more Approximate cost attributed to agricultural experts’ analysis of H.R. 10045.

The two estimates are broadly similar in scale, but they come from different sources and should not be treated as a single precise score.

How did the proposal fit into Congress’s farm-policy choices?

In its 2024 analysis, CRS said farm-sector profitability had declined in 2023 and was forecast to decline further in 2024, with rising production costs among the contributing factors. It presented several possible congressional responses: take no additional action, provide ad hoc assistance, reauthorize or expand farm-bill programs, pursue measures to reduce production costs, or reduce support.

H.R. 10045 represented the ad hoc-payment option. CRS also reported that in 2022, about 23% of U.S. farms had sales of grains, oilseeds, or cotton, while 18% specialized in grain, oilseed, or cotton production. Those are 2022 descriptions of farms, not current estimates or evidence of which producers would have received payments under the proposal.

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How did H.R. 10045 differ from the related H.R. 10545 provision?

The enrolled text of H.R. 10545 contains a distinct provision for one-time 2024 crop-year economic assistance. It should not be confused with the standalone FARM Act proposal: the texts specify materially different payment rates and limits.

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Feature H.R. 10045, FARM Act proposal H.R. 10545, enrolled provision
Payment rate and minimum 60% of calculated economic loss multiplied by eligible acres; a minimum-payment formula is not stated in the cited H.R. 10045 description. 26% payment rate and a minimum-payment formula.
Eligible commodities and estimates Specified return and cost methods for eight named commodities; the Secretary would estimate comparable returns and costs for other eligible commodities. The cited statutory text addresses expected returns and costs for eligible commodities; a comparable commodity-by-commodity estimate is not stated here.
Prevented-planting acres Included 50% of qualifying acreage prevented from planting. A comparable prevented-planting treatment is not stated in the cited provision.
Payment caps and income thresholds $175,000 or $350,000, depending on the specified 75% average-gross-income threshold. Different payment limits; specific amounts and thresholds are not stated here.
Status and outcomes A proposal analyzed in 2024; the cited material does not establish payments made under it. Enrolled statutory text; the cited material does not establish current USDA implementation, application status, or payment outcomes.

Section 2102(a)(1) of H.R. 10545 states: “With respect to the 2024 crop year, if the Secretary determines that the expected gross return per acre for an eligible commodity determined under paragraph (2) is less than the expected cost of production per acre for that eligible commodity determined under paragraph (3), the Secretary shall, not later than 90 days after the date of enactment of this Act, make a 1-time economic assistance payment to each producer of that eligible commodity during that crop year.” The quoted statutory language describes the provision’s direction; it does not establish whether or how USDA administered payments.

What H.R. 10045 does—and does not—tell producers now

The bill was a proposal addressing the 2024 crop year. Its formula, limits, and cost estimates are useful for understanding that legislative approach, but they do not establish a producer’s current eligibility, a present payment amount, or whether any USDA application process is open. The available material also does not establish current 2026 farm profitability or individual producer outcomes.

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