Low market prices on this year's corn and soybean crops due to the coronavirus could trigger up to $7.2 billion in USDA subsidies to corn and soybean growers, said five university economists on Wednesday. "In estimating the damage that U.S. crop agriculture has suffered, it is important to take into account the payments made by existing farm safety net programs," they said. (No paywall)
When the Trump administration poured billions of dollars into rural America to mitigate the impact of trade war, "most of it bypassed the country's traditional small and medium-sized farms that were battered by the loss of their export market," said the CBS News program 60 Minutes on Sunday. It's just as likely big farmers will benefit in a big way when the USDA disburses $16 billion in coronavirus-relief cash to farmers and ranchers, said the program.
After looking at the latest USDA price projections for corn, wheat, and soybeans, and taking into account price patterns for the crops, five university economists say the Price Loss Coverage subsidy is a better choice for growers than the Agricultural Risk Coverage subsidy for corn and wheat grown this year.
More than 21,200 farmers have enrolled in the new dairy support program created by the 2018 farm bill, said Agriculture Undersecretary Bill Northey on Thursday, announcing a one-week extension of the signup period.
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.
The Trump administration enabled multimillion-dollar payments to some large operators in this year’s round of trade war payments by obliterating the usual limits on farm subsidies, said the president of the National Farmers Union on Thursday.
Staunch conservative Michael Conaway, an eight-term Republican from west Texas and the most divisive House Agriculture chairman in decades, said on Wednesday that he will retire at the end of 2020.
More than $500 billion is spent annually around the world on "often ineffective and trade-distorting support to farmers," says the Organization for Economic Cooperation and Development. In an annual report, the OECD said, "little progress has been seen this decade in reforming agricultural support policies."
The farm safety net offers many strands of support to farmers swamped by a historically slow planting season, but the strands pull in different directions, says associate professor Bradley Lubben, of the University of Nebraska. "The complexity for producer decision-making is compounded," he said, when potential Trump tariff payments and disaster aid are woven into traditional crop subsidies and crop insurance.