House passes 2026 Farm Bill with key cooperative priorities

Notably, the bill would reauthorize and modernize the Rural Cooperative Development Grant program through FY2031. The provision, based on the Strengthening Rural Cooperatives and Communities Act, would streamline multi-year grants for cooperative development centers with a demonstrated track record of success.

Other changes include allowing under-serviced and rural applicants to better compete within the program by removing barriers such as "scoring on a curve" within program match requirements, as well as directing the Interagency Working Groups on Cooperative Development to analyze data on co-ops from the Economic Census and submit annual reports on findings.

The House bill would also reauthorize the Rural Energy Savings Program (RESP), which allows households and businesses to establish or expand on-bill financing programs for cost-effective energy efficiency and clean energy improvements. The 2026 Farm Bill reauthorizes RESP through FY2031 and makes several updates to expand its reach, including by broadening its eligibility to include federally recognized tribes and certain public and nonprofit entities, and authorizing USDA to issue grants in addition to loans for repairs, technical assistance, outreach and training.

Despite these changes, this RESP proposal does not align key provisions with the Rural Energy Savings Act (Sec. 205) and Senate consideration of the bill provides an opportunity to fully address priorities for rural electric cooperatives to advance energy affordability for rural households.

Recognizing co-ops as key partners in rural economic development

The 2026 Farm Bill also includes new cooperative provisions:

• Expands Farm Credit home loan access for rural homebuyers Under this bill, the Farm Credit System, which is a major part of the cooperative finance and lending system, will expand rural housing loan access and help strengthen local economies.
• Creates a new local food procurement program modeled on USDA's Local Food Purchase Assistance Cooperative Agreement Program For producer co-ops, this program would offer greater access to regional market supply chains and increases cooperative market access. The program would support new agreements with state, tribal, and territorial governments to purchase unprocessed or minimally processed foods from domestic producers within 400 miles of the delivery destination, with distinct preference for small, new, and veteran producers.
• Includes provisions for capacity building in rural and underserved areas While the full Rural Partnership and Prosperity Act was not included in the House-passed Farm Bill, it does include provisions that would help cooperatives and other local partners in distressed areas better access USDA Rural Development programs, while also supporting technical assistance and modernization across Rural Development.

These updates preserve and strengthen tools that cooperatives and their partners already use to support rural businesses, improve energy affordability, expand local ownership and build community wealth. For NCBA members and partners, the House bill signals continued recognition of cooperatives as essential parts of rural economic development infrastructure.

For NCBA members and partners, the House bill signals continued recognition of cooperatives as essential parts of rural economic development infrastructure.

Ask your Senator to preserve and expand co-op programs

Still, the Farm Bill is not across the finish line. Negotiations in the Senate present significant challenges to the current bill. Until a new Farm Bill is enacted, the 2018 Farm Bill remains the law of the land, with Congress extending it through September 30, 2026 to keep existing USDA programs operating while lawmakers continue working on a longer-term reauthorization.

Now is the time to call your Senators and urge them to work together to pass the 2026 Farm Bill and ensure that our key cooperative priorities are included.

Find your Senator

The script below includes sample talking points:

Hi, my name is [Name] and I'm a member of [co-op/organization] in [City/State]. I'm calling to urge Senator [Name] to support passage of the bipartisan Farm Bill that preserves and expands programs that are essential for cooperatives like mine.

• Protect, reauthorize and modernize the Rural Cooperative Development Grant Program, which supports co-op development and strengthens rural economies.
• Reauthorize the Rural Energy Savings Program, which allows consumers to access affordable energy efficiency upgrades in their homes and businesses and lower the energy cost burden for rural communities.
• Include the Rural Partnerships and Prosperity Act, which ensures rural Americans get access to private and federal investments.

Please urge Senator [Name] to keep co-ops in mind as they work toward a strong Farm Bill this year. Thank you for your time.

NCBA will continue working with lawmakers and partners to ensure the final Farm Bill recognizes the role cooperatives play in building resilient rural economies and preserves and strengthens the federal programs that help them do that work.

For more information on NCBA CLUSA's advocacy priorities and resources, visit ncbaclusa.coop/advocacy or contact[email protected].