Capital Update – For the Week Ending June 26, 2026

Senate Agriculture Farm Bill Discussion Draft Lacks Proposition 12 Fix

What happened: U.S. Senate Agriculture, Nutrition, and Forestry Committee Chairman John Boozman (R-AR) released a farm bill discussion draft – the “Agricultural Act of 2026” – without language addressing NPPC’s concerns over California Proposition 12. The committee is expected to consider a farm bill before Congress takes a month-long recess beginning early August.

On April 30, the House approved its version of the farm bill, with a provision that addresses the problems caused by Prop. 12.

While the much-sought Prop. 12 fix is not included, the Senate’s farm bill draft does include other NPPC priorities:

• Funding for the S. Swine Health Improvement Plan
• Funding of and converting the Feral Swine Eradication and Control Pilot Program into a full program
• Expanded loan limits for USDA direct and guaranteed loan programs for farm operating and farm ownership loans
• Increased funding for the Market Access Program and the Foreign Market Development Program

NPPC’s take: NPPC recently led 330 other agricultural groups in urging the Senate to include a Prop. 12 provision in its final farm bill. More ahead on that effort.

Why it matters: The five-year farm bill sets farm, conservation, forestry, and nutrition policy and authorizes various agricultural programs, including ones related to foreign animal disease preparation and prevention and export promotion.

Without Prop. 12 relief in the final farm bill, pork producers face a patchwork of state animal housing laws that hurts small farmers the hardest, takes away veterinarians’ choices, increases the cost of food, and undermines states’ rights.

NPPC Leads Farm Coalition Asking Senate to Include Prop. 12 Language in Farm Bill

What happened: NPPC and 330 other national, state, and local agricultural organizations are urging the U.S. Senate Agriculture, Nutrition, and Forestry Committee to include language in the panel’s final bill to address the problems caused by California Proposition 12. Chairman John Boozman’s (R-AR) discussion draft does not include a fix to Prop. 12. (See related story.)

In a letter to Boozman and committee Ranking Member Amy Klobuchar (D-MN), the farm groups asked that a provision preempting Prop. 12 be added to the Senate farm bill. The House on April 30 approved its farm bill with such language after NPPC sent a similar letter to House leadership.

The organizations pointed out that both the Trump and Biden administrations recognized the consequences of Prop. 12 – compliance costs, higher meat prices, lower production – are untenable. They also noted that in rejecting an NPPC-led lawsuit against the California initiative, the U.S. Supreme Court in 2023 ruled “only Congress has the authority to prevent chaos in the marketplace and provide farmers with the certainty they need” by addressing Prop. 12.

The House Prop. 12 provision would preserve the principles of interstate commerce, prohibiting states and localities, as a condition for selling meat and poultry products in their jurisdictions, from enacting or enforcing production standards for animals raised outside their borders.

Revisions to Livestock Insurance Programs Take Effect July 1

What happened: Revisions to the principal livestock risk management programs, as well as to crop insurance, take effect July 1.

The U.S. Department of Agriculture’s Risk Management Agency made changes to the Livestock Gross Margin and Livestock Risk Protection programs used by pork producers for crop year 2027. Among them:

• Added clarifications for off-exchange contracts and subsidy capture definitions, including additional prohibited conduct under Section 25 of the LRP Basic Provisions
• Allowed concurrent coverage of LRP and LGM in the same month
• Required policies not earning premiums for three consecutive years to be cancelled
• Clarified when coverage can be transferred
• Revised the definition of beginning farmer and rancher and updated subsidy percentages to conform with the One Big Beautiful Bill Act

NPPC’s take: NPPC works to ensure the continued availability, affordability, and long-term viability of risk management tools for pork producers and will continue working to protect access and improve LRP and LGM.

Why it matters: Pork producers rely on LRP and LGM to help manage risk and protect market opportunities. Over the past five crop years, an average of 27% of hogs marketed in the United States were covered by either LRP or LGM, including a high of approximately 35% in crop year 2025. Additional resources for producers are available on RMA’s website, including more information about the latest policy changes and frequently asked questions about using LRP and LGM.