H.R. 5551: Balanced Agricultural Support and Efficiency Act

The Balanced Agricultural Support and Efficiency Act aims to update certain provisions related to agricultural support in the United States, specifically adjusting the base acres for covered agricultural commodities on farms. The primary components of the bill include:

Mandatory One-Time Update of Base Acres

The bill requires a one-time update of base acres for covered commodities, reflecting the planting history from 2020 to 2024. This means that the base acres, which are crucial for determining farm payments and support, will be adjusted to more accurately represent the amount of land farmers have actually used for planting these commodities during that timeframe.

Determining Updated Base Acres

To determine the updated base acres, the Secretary of Agriculture will:

• Assess covered commodities planted on the farm between 2020 and 2024.
• Include acreage that farmers were unable to plant due to natural disasters, like droughts or floods, during the same time period.

These updates will be based on a formula that averages the acreage planted over the five years while ensuring that all years are counted, even if no crops were planted in some of those years.

Treatment of Multiple Planting or Prevented Planting

If a farmer planted different crops on the same land during those years, they will have the option to choose which crop's acreage will count towards the average for that year. However, they cannot include both the initially planted crop and the subsequent crop on the same piece of land.

Conforming Amendments

The bill also includes conforming amendments to other sections of the Agricultural Act of 2014, ensuring consistency across various provisions relating to agricultural support and payment calculations. Some administrative details regarding agricultural yield measurements and payment processes are streamlined to align with the new definitions and updates from this bill.

Overall Goal

The overarching goal of the Balanced Agricultural Support and Efficiency Act is to ensure that the agricultural support systems reflect current agricultural practices and challenges faced by farmers, potentially leading to more equitable support mechanisms in future agricultural policies.

Relevant Companies

• DE (Deere & Company) - As a manufacturer of agricultural equipment, changes in agricultural policy and practices can impact equipment sales based on the crops farmers choose to plant and the acreage they operate. An update to base acres may influence farmers' decisions about investments in new machinery.
• ADM (Archer-Daniels-Midland Company) - This company is involved in food processing and agricultural commodities. Changes to agricultural support mechanisms may affect commodity prices and supply chains, impacting ADM's operations and profitability.