Farm Bill markup held before August recess

Several NCBA policy priorities are included in the Senate draft, while others remain unfinished business as negotiations continue. [photo courtesy CoBank]On August 6, the Senate Agriculture, Nutrition and Forestry committee held its markup on the Agricultural Act of 2026. While the bill was ultimately rejected 10-11 along party lines, NCBA continues to advocate for key cooperative provisions.

The farm bill shapes many of the federal programs that support cooperative development, rural infrastructure, energy affordability, local food systems and community economic development. Several NCBA priorities are included in the Senate draft, while others remain unfinished business as negotiations continue.

Rural Cooperative Development Grant Program

• The House and Senate Farm Bill included the Strengthening Rural Cooperatives and Communities Act (H.R. 6991/S. 3075) to modernize and reauthorize the program through FY2031.
• Supports multi-year grants, helping cooperative development centers plan and deliver services more effectively.
• Requires a report on the Interagency Working Group on Cooperative Development, including analysis of Economic Census data to better capture cooperatives' economic impact.
• Allows under-resourced centers to have competitive access to the program by awarding full points to applicants that meet the 25% federal cost matching requirement.

Rural Energy Savings Program

• Extends eligibility for energy-efficiency loans to lower the energy cost burden for rural families to all households in a rural electric cooperative's service territory.
• Includes manufactured housing units as an eligible use.
• Provides administrative grants for rural electric cooperatives to support increased program access, including 5% generally and 10% in persistent poverty counties.

Local Food, Heirs Property and Rural Development

• Includes heirs' property cooperative agreements.
• Creates a $200 million program focused on local food procurement with cooperative eligibility.
• Includes Rural Care Economy Grants.
• Provides rural healthcare revitalization funding.
• Adds new mobile and expanded eligibility for small and intermediate meat processing grants including cooperatives.

Rural Partnerships and Prosperity

The Rural Partnerships and Prosperity Act (H.R. 6041) was not included in the Senate draft. NCBA and our partners will continue to evaluate opportunities to advance this priority as the bill moves through the legislative process. The omission underscores the continued challenge of securing resources for rural capacity-building, even as the need for long-term investment remains clear.

• While the Rural Partnerships and Prosperity Act was not included, the draft does contain language intended to support capacity building across Rural Development Programs.

Food for Peace and International Food Assistance Programs

The Senate draft does not include the House provision that would codify the transfer of the Food for Peace aid program to the U.S. Department of Agriculture. According to committee staff, that provision was excluded because of jurisdictional hurdles in the Senate.

However, the draft does make changes to trade and food assistance programs, including Farmer-to-Farmer and Food for Peace. NCBA is reviewing this language closely to understand its implications for development assistance funding and international cooperative development.

What Happens Next

Several major funding questions remain unresolved. The Minority called for a two-year delay on the SNAP benefits cost-sharing provision, which imposes billions in new costs for states. A one-year compromise was included in the Senate Farm Bill; however, the two-year delay continues to be a key sticking point.

Committee absences, including Sen. Mitch McConnelll (R-KY) and Sen. Tommy Tuberville (R-AL), present another challenge. These issues could determine whether the bill can move forward with bipartisan support. Chair John Boozman (R-AR) signaled his intent to hold another vote when the Senate return in September.

NCBA will continue working to advocate for key priorities and ensure that cooperatives remain central to federal policy on rural development.

To learn more about our advocacy work, ask questions or find out how you can get involved, visit our website or email [email protected].