The Trump administration has had virtually a free hand since 2018 in sending billions of dollars in cash to U.S. farmers and ranchers to mitigate the impact of trade war and the coronavirus pandemic. House Agriculture chairman Collin Peterson said on Tuesday that it was time for Congress to exert control over the USDA agency that bankrolls the outlays.
“I am not giving the [Commodity Credit Corporation] or the [agriculture] secretary any more money unless we have a say in how it is spent,” said Peterson during a teleconference. The CCC, created during the Depression era, is nicknamed “USDA’s bank” because it can spend up to $30 billion at a time and has broad authority to support farm income and commodity prices. Farm program payments are drawn from the CCC.
The Trump administration tapped CCC’s powers and funding when it created stopgap programs that sent $23 billion in trade-war payments to producers and would use it again for $16 billion in coronavirus payments announced on April 17. By comparison, crop subsidies approved by Congress in the 2018 farm law were projected to cost $6 billion annually.
“I just think this thing is out of control,” said Peterson, suggesting USDA should be required to get approval from the four leaders of the House and Senate Agriculture committees for CCC expenditures. “[Agriculture Secretary Sonny Perdue] would have to come to us and get a sign-off.” Peterson said the requirement could be coupled in an upcoming coronavirus relief bill with an increase in the CCC spending limit to $68 billion.
Press aides for Senate Agriculture chairman Pat Roberts and Michigan Sen. Debbie Stabenow, the Democratic leader on the Senate panel, were not immediately available for comment.