The House Ag Committee May 14 approved its reconciliation package in a party-line vote of 29-25.
The bill would reduce the deficit by $296 billion over 10 years — exceeding the $230 billion target in the budget resolution — largely by reshaping the Supplemental Nutrition Assistance Program (SNAP). Among the biggest changes:
- All states would cover at least 5% of SNAP costs.
- States with high payment error rates would pay more — up to 25%.
- SNAP administrative costs would shift from a 50/50 federal-state split to 75% state-funded.
- SNAP benefit increases would be tied strictly to inflation.
Broader farm and conservation provisions. The reconciliation package also includes new investments in farm policy and conservation programs:
- Reference prices for all covered commodities beginning with 2025 crops would rise by 10–20%, increasing potential farm payments. Corn goes from $3.70 to $4.10 a bu., soybeans from $8.40 to $10.00 per bu. and wheat from $5.50 to $6.35 per bu. Other crops: Sorghum, $4.40. per bu., barley, $5.45 per bu., oats, $2.65, per bu. rice, $16.90 a cwt and 42 cents a pound for seed cotton. Beginning with the 2031 crop year, the reference price will automatically increase by 0.5% each year. However, it cannot be higher than 15% of the original reference price which would take about 20 plus years to hit that mark based on this small adjustment.
- Base acres will increase by 30 million acres. It appears this will be automatically done by FSA and producers can opt-out.
- ARC is bumped up to 90% guarantee from the current 86% level. The maximum payment amount will now be 12.5% of benchmark revenue, up from the current 10% cap. Both provisions begin with the 2025 crop year.
- The equitable treatment of certain entities is made effective. This treats LLCs, S corporations and similar entities like a general partnership and eliminates the one payment limit for these entities. This was proposed last year, and the language appears similar.
- The payment limit for PLC and ARC is bumped from $125,000 to $155,000 and will be indexed to inflation starting with the 2025 crop.
- Equipment gains, agritourism and direct-to-consumer marketing of agricultural products will now be considered farm income. This is very beneficial for farmers who need to meet the more than 75% farm AGI additional payment limits. Certain programs will be exempt from AGI limits assuming the farmer has more than 75% of their AGI is from farming.
- Loan rates have been bumped 10% for most commodities like last year’s proposal. Marketing loan rates would be increased to $3.72 a bu. for wheat, $2.42 a bu. for corn and sorghum, $2.75 a bu. for barley, $2.20 a bu. for oats, 55 cents a pound for cotton, $7.70 per cwt for rice and $6.82 a bu. for soybeans.
- Beginning farmers and ranchers will get additional premium assistance for crop insurance for up to ten years like last year’s provisions.
- SCO is bumped up to 90% and the cost share is increased from 65% to 80%.
- All levels of crop insurance premium assistance are bumped 5% except for the 80 and 85% levels are only bumped 3%. For example, 38% of the premium at the 85% level was subsidized by the government. This will bump up to 41% under the reconciliation proposal.
- Three major conservation programs would see increased funding through FY 2031:
- Agricultural Conservation Easement Program (ACEP): $625 million in FY26, rising to $700 million in FY 2031
- Environmental Quality Incentives Program (EQIP): $2.7 billion in FY 2026, rising to $3.3 billion in FY 2031
- Conservation Stewardship Program (CSP): $1.3 billion in FY 2026, rising to $1.4 billion in FY 2031
House Ag Chair Glenn “GT” Thompson (R-Pa.) said: “Our section of the One Big, Beautiful Bill restores integrity to the Supplemental Nutrition Assistance Program, provides relief to farmers, invests in the future of rural America, and prevents the largest tax increase on American families. We ensure that SNAP works the way Congress intended it to, by reinforcing work, rooting out waste, and instituting long-overdue accountability incentives to control costs and end executive and state overreach. We preserve the program’s ability to serve the most vulnerable long into the future. At the same time, we’re strengthening the farm safety net and delivering critical support to the farmers, workers, and communities that keep America fed. These commonsense solutions help build a stronger, more resilient rural America. I’m grateful to my colleagues on the Committee for their hard work, and I look forward to passing this bill in the House and delivering results for families across the country.”
The House Ways & Means and Energy & Commerce panels also passed reconciliation measures on Wednesday.
The committees’ approved sections will be sent to the House Budget Committee, which is scheduled to assemble the full reconciliation package for a floor vote.