The USDA says it will disburse more than $7 billion in crop subsidies this fall, “which will account for over 10 percent of USDA’s projected 2016 net farm income.” The payments, which cover 2015 crops, are triggered under the 2014 farm law because of continued low commodity prices.
Agriculture Secretary Tom Vilsack said USDA is “tapping every resource that we have to help.” Vilsack presented the same argument to senators two weeks ago, when he said crop subsidies would be much larger than the payout made in 2015 under the two major crop subsidies, the Agriculture Risk Coverage and Price Loss Coverage. ARC and PLC cover the major grain and oilseed crops; cotton has a separate subsidy.
The National Farmers Union said Congress should change the farm law so that farmers could collect so-called advance payments, rather than having to wait until one year after harvest for a government check. Years ago, growers were permitted to claim a portion of their anticipated payment months before the final figure was known. USDA then issued a final payment to square accounts with farmers.
The NFU also urged Congress to change the 2011 budget law that requires the USDA to reduce the subsidy payments by 6.8 percent to hold down the federal deficit.