New House GOP budget proposal revives Farm Bill extension and aid money but drops ethanol provision

MINNEAPOLIS (AP) — American farmers are hoping that aid to agriculture will be revived as Congress struggles to pass a short-term spending bill that would keep the federal government funded and avert a looming partial government shutdown set to begin after midnight Friday night.

A one-year extension of federal farm programs, around $30 billion in economic relief and an agreement that would increase sales of a higher blend of ethanol, called E15, were part of a bipartisan deal that collapsed Wednesday after President-elect Donald Trump and his allies denounced the overall package. But even as he rejected that deal, Trump signaled that he was at least aware of concerns in farm country, which voted heavily for him in the election.

A new House Republican version announced Thursday kept the one-year Farm Bill extension and the economic aid but dropped the ethanol provision. It remained unclear whether it could clear both chambers amid opposition from Democrats and some conservative Republicans, and get President Joe Biden's signature, in time to prevent a shutdown.

Both versions of the proposed “continuing resolution” would extend Farm Bill programs for another year after lawmakers were unable to agree on a new five-year package despite months of negotiations. They also include $10 billion to help farmers who've been struggling with high interest rates, declining crop prices and rising production costs that are outpacing farm revenues. Producers also would get $20 billion of the $100 billion in disaster aid in the package.