The Senate Agriculture Committee moved closer this week to advancing its version of the next farm bill as lawmakers also weighed how to move year-round E15 legislation through a divided Senate amid volatile fuel markets and growing election-year pressures.

The committee held a closed-door bipartisan meeting in which senators outlined priorities ahead of draft text expected from Chairman John Boozman, R-Ark. Boozman said he plans to release a draft in early June and hold a markup later in the month.

Supplemental Nutrition Assistance Program funding remains one of the most contentious issues. A provision in the One Big Beautiful Bill Act would require states to absorb part of SNAP costs based on payment error rates. Sen. Amy Klobuchar, D-Minn., raised concerns that states with midlevel error rates, including Minnesota, could face higher costs sooner than states with the highest error rates.

Lawmakers from both parties identified SNAP cost-sharing as a major issue likely to shape negotiations. Senate aides also indicated the chamber’s base farm bill draft is not expected to include language preempting state chemical labeling laws, including glyphosate-related rules, or provisions targeting California’s Proposition 12. Boozman has indicated such additions could complicate efforts to secure the 60 votes needed for passage.

At the same time, Senate leaders face mounting pressure from corn-state lawmakers and the White House to advance legislation allowing permanent nationwide sales of E15 gasoline, a blend containing 15% ethanol.

The House recently passed E15 legislation by a 218-203 vote. Supporters argue expanded E15 sales could lower fuel prices, increase fuel supplies and strengthen corn demand at a time when producers are facing weak commodity prices and elevated input costs. Federal waivers already permit summer E15 sales this year due to concerns about fuel supply disruptions and higher energy costs tied to conflict involving Iran.

Senate support for the measure remains uncertain. Environment and Public Works Committee Chair Shelley Moore Capito, R-W.Va., has questioned whether the bill can secure the 60 votes necessary to overcome procedural hurdles, citing concerns related to small refineries and air quality regulations.

Majority Leader John Thune, R-S.D., said Senate leaders are exploring options to move the legislation while linking E15 expansion to broader efforts aimed at strengthening agricultural markets and boosting fuel supplies. However, lawmakers from refining states remain a significant factor in negotiations.

The policy debates are unfolding as energy markets remain volatile. Conflict involving Iran and restrictions affecting the Strait of Hormuz have contributed to higher oil and transportation costs, while increased U.S. exports of crude oil and refined fuels have tightened domestic inventories.

Political pressures are also intensifying ahead of the midterm elections. Several members of Congress, including lawmakers serving on agriculture and appropriations committees, are retiring or pursuing other offices, while multiple farm-state races are considered highly competitive.

Some Democrats are weighing whether completing a farm bill this year or delaying action until after the midterms would provide greater negotiating leverage. Republicans, meanwhile, are facing pressure to address concerns over food prices, fuel costs and declining farm income.

In major agricultural states such as Iowa and Nebraska, the outcomes of farm bill negotiations, biofuel policy decisions and trade issues could become central campaign topics.

The Senate’s farm bill discussions and the debate over year-round E15 sales reflect the increasingly close relationship between agricultural policy, energy markets and election-year politics. For grain producers and ethanol markets, decisions involving SNAP funding, commodity support programs and biofuel policy could significantly affect profitability during a period marked by elevated costs and softer commodity prices.

Source: Grain and Feed Association of Illinois, "Senate Farm Bill Talks Intensify as E15 Push Runs Into Skepticism, Volatile Fuel Markets and Midterm Jockeying"