The Farm Bill is an omnibus bill (E) governing policy in many areas related to the agricultural sector, including farm income support, food assistance, trade, and more. This bill is renewed on a regular basis, about every five years. This gives policymakers an opportunity to regularly address agricultural policy issues. The US has passed 18 farm bills, the most recent being the Agricultural Improvement Act of 2018. 

Agricultural policy in the United States prior to the farm bills (E) focused on land distribution, support for education and research programs to increase agricultural productivity, and programs to provide farmers with market information.  

The first farm bill, the Agricultural Adjustment Act of 1933, was a part of the New Deal. In response to the drop in US crop prices after the first World War and the effect of both the Great Depression and the Dust Bowl on farmers and agricultural markets, the Agricultural Adjustment Act created programs to reduce surplus and raise crop prices. Farmers were eligible to receive subsidy payments in exchange for agreeing to reduce production of certain commodity crops. The purpose of this was to achieve what is called “parity,” or a fair exchange value for agricultural products. Price control and other forms of support for farmers would continue to be one of the main functions of the farm bill in years to follow.

The Agricultural Act of 1933 was replaced five years later by the Agricultural Act of 1938. The 1938 Act continued the 1935 Soil Conservation Act and the 1936 Soil Conservation and Domestic Allotment Act, two laws designed to address the ecological crisis of soil erosion. These soil conservation acts established the Soil Conservation Service to conduct surveys and develop preventative measures against soil erosion. Farmers were compensated for planting soil supporting crops such as soybeans and reducing production of crops that contributed to soil erosion.

Supporting Farmers

Supporting farmers is a primary purpose of the farm bill. Over time, farm bills have been used to authorize a variety of programs to support farm income, though the nature of agricultural commodity support varies depending on prevailing economic policy.

One of the main funding outlays to support farm income in farm bills is for federal crop insurance. The Agricultural Adjustment Act of 1938 established the Federal Crop Insurance Corporation (E). Farm bills continue to support farmers by authorizing funding for federal crop insurance, an important risk management tool."