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Congress passes budgets, aids cotton and dairy producers

President Donald Trump has signed a two-year spending bill into law, ending a brief government shutdown. The budget agreement will aid US dairy and cotton producers by boosting farm bill funding by $1.2 billion.

Through the agreement, cotton is eligible for the Price Loss Coverage program and dairy producers will see a reduction in the cost of the Dairy Margin Protection Program.

Farmers and ranchers will also see an increase in disaster aid. The budget includes $2.4 billion in disaster assistance, and will raise the annual $20 million cap on livestock insurance programs at the USDA.

The bill also restores, for 2017, the $1 per gallon tax credit that subsidizes biodiesel.

The budget does not include any changes to the section 199A co-op deduction in the new tax code. Lawmakers have been looking for ways to fix the provision that incentivizes farmers who sell to co-ops over other types of companies.

The US Senate and House of Representatives voted to approve the spending bill after 5 a.m. this (Friday) morning. The budget deal adds $300 billion in spending over two years.