The senators from the No. 1 corn state in the country, Iowa, asked USDA to explain how it determines county yields, a key factor in determining subsidy payments. The letter by Sens. Chuck Grassley and Joni Ernst said per-acre payments vary widely among counties; farm groups across the Midwest have complained about the situation for months.
“Legitimate questions have been raised about the significant payment disparity that has occurred between adjacent counties in certain areas throughout the country,” says the letter to Agriculture Secretary Tom Vilsack. There was a $60 an acre difference between two adjoining counties in northern Iowa, they said. The questions involve the Agriculture Risk Coverage subsidy, created by the 2014 farm law to shield grower revenue from the effects of poor yields and low prices. Most corn and soybean growers enroll in ARC. The formula for determining ARC payments includes the season-average price for a crop and the average yield in each county.