HR6061-119

What This Bill Does

The American Farmers First Act amends 31 U.S.C. 5302(b), the Exchange Stabilization Fund authority. Until December 10, 2027, Treasury may not use the ESF to provide direct or indirect financial support to Argentina, including currency swap lines, purchases of Argentine pesos or sovereign debt, or any credit instrument. Any pre-enactment financial contract or instrument that violates the new prohibition must be sold or terminated within seven days after enactment. The bill then requires Treasury to allocate proceeds from those sales or terminations to USDA. USDA must use the proceeds to make one-time economic assistance payments to producers of each crop adversely affected by loss of export markets during the 2025 marketing year, as determined by the Secretary of Agriculture.

Who Benefits and How

Crop producers harmed by lost export markets in the 2025 marketing year benefit because USDA must use redirected proceeds for one-time economic assistance payments. USDA farm-payment administrators benefit from a dedicated funding source tied to terminated Argentina-support instruments. Critics of Argentina financial support benefit because Treasury cannot use the Exchange Stabilization Fund for swaps, peso purchases, sovereign-debt purchases, or credit instruments supporting Argentina through December 10, 2027. Federal budget accounts may benefit if existing Argentina-support positions are sold or terminated and the proceeds are redirected rather than kept in those instruments.

Who Bears the Burden and How

Treasury must identify, sell, or terminate violating Argentina-related financial contracts or instruments within seven days. Argentina and holders of Argentina financial instruments lose access to ESF-backed support that could otherwise stabilize currency or sovereign-debt markets. USDA must determine which crops were adversely affected by loss of export markets during the 2025 marketing year and administer one-time payments. Financial counterparties to affected swaps, debt purchases, or credit instruments must unwind or replace those arrangements quickly.

Key Provisions

• Prohibits Exchange Stabilization Fund support for Argentina, including swaps, peso purchases, sovereign-debt purchases, and credit instruments.
• Requires violating pre-enactment contracts or instruments to be sold or terminated within seven days.
• Terminates the Argentina-support prohibition on December 10, 2027.
• Requires Treasury to allocate proceeds from terminated instruments to USDA.
• Requires USDA to make one-time payments to crop producers harmed by lost export markets in the 2025 marketing year.