The Republican-led megabill expands farm subsidies, especially for livestock and large dairy operations, while slashing SNAP funding and nutrition aid. It boosts crop insurance, disaster relief, and trade promotion – but critics say it favors big agribusiness at the expense of smaller farms, the environment, and low-income families. Meanwhile, the fate of the broader U.S. Farm Bill remains unclear.
A controversial new “megabill” passed by Republican lawmakers has introduced sweeping changes to U.S. agricultural funding – greatly expanding federal support for livestock and dairy producers while reducing assistance for low-income Americans who rely on nutrition aid. The bill significantly boosts subsidies and insurance for large-scale farm operations, drawing praise from industry groups but sparking criticism from food policy advocates and anti-hunger organizations.
Full Compensation for Livestock Losses
One of the bill’s most impactful provisions is the expansion of the Livestock Indemnity Program (LIP), which now offers 100% reimbursement to farmers for livestock killed by predators or other eligible causes, up from the previous 75%. Critics argue this change could discourage investment in preventative measures such as improved fencing or shelter, while supporters say it provides crucial relief amid growing climate-related risks.
The Livestock Forage Disaster Program has also been revised to allow farmers to claim benefits after just four weeks of drought, instead of the previous eight-week threshold. In addition, payment amounts have been doubled, and unborn livestock losses are now covered for the first time. Funding has also been increased for animal disease prevention under the Animal Health Protection Act.
Big Dairy Gets Bigger Boost
The Dairy Margin Coverage (DMC) program, a key income safety net for dairy farmers, has been extended through 2031. While this is welcome news for the dairy sector, the bill raises the premium threshold from 5 to 6 million pounds of milk annually – a move that mostly benefits larger, factory-style dairy operations. Small and independent producers warn this could widen the gap between family farms and corporate dairies.
Pilot Program for Poultry Farmers
Acknowledging rising climate-related costs, the megabill directs the USDA to create a pilot insurance program for contract poultry growers, many of whom are burdened by high energy bills and heavy debt under current industry contracts. The new program will help cover increased utility costs due to extreme weather, though the pilot nature of the initiative leaves its long-term impact uncertain.
Billions in Crop Insurance, Tax Breaks, and Trade Promotion
Beyond livestock and dairy, the megabill includes a $6.3 billion boost to crop insurance funding over the next ten years. It removes income caps, raises payment limits, and increases reference prices, all of which are seen as favorable to large-scale commodity crop growers.
In addition, the bill introduces new tax benefits for farmers and doubles funding for agricultural trade promotion efforts – further strengthening U.S. agribusinesses with a global market focus.
Cuts to SNAP Raise Concerns
These gains for big agriculture come at a clear cost. The megabill slashes federal support for the Supplemental Nutrition Assistance Program (SNAP) by pushing more funding responsibilities to state governments, tightening eligibility criteria, and increasing work requirements.
Nutrition advocates warn that the changes could reduce access to healthy foods, especially fruits and vegetables, for millions of low-income households, particularly children and seniors.
Farm Bill Uncertainty Remains
Many of the megabill’s provisions are typically part of the broader U.S. Farm Bill, which is due for renewal. By rushing them through separately, lawmakers have reduced the urgency to pass a new comprehensive farm bill, leaving several major agricultural policies unresolved.
This includes permanent price support authority, environmental sustainability efforts, and expanded equity programs for small and historically underserved farmers. Some analysts suggest that only a “skinny” farm bill may be passed later this year, focused on maintaining basic operations rather than implementing structural reforms.