This week's White House budget proposal to cut crop insurance by 31 percent and to tighten eligibility rules for farm subsidies would save less in 10 years than the administration spent to mitigate the impact of the Sino-U.S. trade war on 2018 and 2019 farm production, said an economist.
Three weeks after President Trump boasted of protecting crop insurance in the 2018 farm bill, the White House proposed a 31 percent cut in the federally subsidized program on Monday. The cuts, part of the administration's budget package for fiscal 2021, were proposed — and rejected by lawmakers — in previous years.
For all its cachet as a potential money-making crop for American farmers, industrial hemp ranked midway between safflower and flaxseed in plantings, with an estimated 230,000 acres in 2019, and industry leaders disagree whether 2020 will be a year of expansion or retrenchment. But the USDA is approving state plans to regulate hemp production and offering crop insurance for hemp growers, steps that could help establish the crop.
Congress is on the verge of retroactive restoration of the $1-a-gallon biodiesel tax credit, a result of the last-minute inclusion of a package of tax breaks in a mammoth government funding bill. The House passed the bill on Tuesday, and the Senate is expected to approve it by the end of the week.
Farmers are in line for a “top-up” payment of up to 15 percent if they received a prevented-planting indemnity from crop insurers this year due to flooding or excessive rainfall, said the USDA on Thursday.
For the first time since the 2014 farm bill was implemented, the USDA is giving farmers the option of changing enrollment between the insurance-like Agriculture Risk Coverage and the traditionally designed Price Loss Coverage subsidies.
Climate change is expected to lower U.S. corn, soybean, and wheat production and drive up the cost of the federally subsidized crop insurance program. The increase could be as small as 4 percent or as large as 37 percent, depending on how much temperatures rise and whether mitigation efforts are effective, said a USDA report on Monday.
The wettest spring in a quarter-century may lead to the largest crop insurance payout since 2000 to farmers unable to plant corn and soybeans, said a university economist. He spoke ahead of a USDA report today that will project the impact of a cold and rainy spring on this fall’s harvest.
Farmers can expect a deluge of federal payments in the weeks ahead to cushion the effect of farm exports lost to the trade war and plantings washed away by the rainiest spring in a quarter-century, say analysts. "It's probably going to be August" when the biggest shower of payments begins, the multibillion-dollar, stop-gap Market Facilitation Program, according to Agriculture Undersecretary Bill Northey, who oversees farm subsidies.