crop subsidies
Three sectors to watch in general-election results
The 2016 general election can be split into sectors of interest for food and agriculture issues: state referendums on agricultural issues; four municipal referendums on soda taxes, and three House races in which the food movement targeted Republican incumbents.
Big baseline possible for crop subsidies in new farm bill
Farm-state lawmakers could have a "quite large" baseline for crop subsidies, "even approaching $100 billion" over a decade, when they write the 2018 farm bill, says economist Carl Zulauf of Ohio State University. In a blog, Zulaug rebuts speculation, based on the decline in pay-out for the Agricultural Risk Coverage (ARC) subsidy, that the House and Senate Agriculture Committees could have a small amount of money available to confront an era of low commodity prices.
EWG says U.S. farmers feed the (developed) world
A refrain among U.S. farmers and processors is that bountiful America helps feed a hungry world with a population forecast to increase by one-third, to 9.7 billion people, by mid-century. The actuality is that U.S. farm exports "go to countries that can afford to pay for them," and less than 1 percent go to the world's hungriest nations, says the Environmental Working Group.
Crop subsidies to provide 10 percent of U.S. net farm income
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.
Vilsack: Financial stress on the rise as farm income falls
Despite the strong foundation of the farm sector, "it is clear financial stress is increasing and some producers are more exposed to financial risk," said Agriculture Secretary Tom Vilsack in Senate testimony that balanced concern with falling farm income with a valedictory list of the administration's eight-year record in agriculture.
Cotton industry calls for thorough review of global fiber market
With a worldwide glut holding down cotton prices, the National Cotton Council, a U.S. trade group, called for an examination of domestic supports offered to growers in China, India and other developing countries as well as of the impact of synthetic fibers. Gary Adams, the Cotton Council's chief executive, said India, China and Pakistan are years behind in reporting the scope and type of subsidies offered to their growers.
Record exports won’t cure U.S. peanut surplus
U.S. farmers are growing peanuts faster than the nation, or the world, can consume them, say USDA economists, who estimate the peanut supply will be a record 9.5 billion pounds following this year's harvest. Thanks to rising demand, led by China and Vietnam, exports are forecast for a record 1.5 billion pounds — one-fourth of this year's crop — but the U.S. peanut surplus could continue to grow.
Federally subsidized crop insurance reached 297 million acres
Farmers bought crop insurance policies on 297 million acres in 2015, covering 85 percent of land planted to major field crops such as corn, wheat, cotton and soybeans, an increase of 16 percent from the coverage area in 2010, according to Risk Management Agency data. Coverage of fruit, vegetables and other specialty crops has grown more slowly, to reach 8.3 million acres last year.
Big ARC payments are temporary cushion against low prices
Corn, soybean and wheat growers would receive significant payments — as high as $80 an acre for corn — under the insurance-like Agriculture Risk Coverage subsidy based on the low commodity prices now forecast, says Ohio State economist Carl Zulauf.
‘Ignore the subsidy lobby,’ says EWG in review of farm economy
"There's a lot of doom and gloom in the air about the state of the farm economy," says a report by the Environmental Working Group, and much of it is a campaign for larger crop subsidies. "The farm subsidy lobby has been working overtime to sue what it calls a 'farm crisis' to deflect well-deserved criticism of the fatally flawed federal subsidy program that they're desperate to protect."
Top question for 2018 farm bill: Is the safety net working?
Congress is two years away from drafting the new farm bill but Roger Johnson already can name the leading question for farm policy. "The big issue in the next farm bill will be, is the safety net really working for farmers?" Johnson, the president of the National Farmers Union, told Ag Insider. "We have a lot of folks who are beginning to struggle financially."
Conaway calls USDA cotton proposals ‘smoke and mirrors’
USDA will begin fleshing out a cotton-ginning cost-share program as a response to the third year of low cotton prices and financial stress on growers, said Agriculture Secretary Tom Vilsack.
After two years of steep declines, farm income stabilizes
U.S. farm income plummeted by a combined 31 percent in 2014 and 2015. It will fall again this year, says a USDA forecast, but by a modest 2-3 percent. Large crop-subsidy payments, estimated at $9.5 billion, will buffer a 4-percent drop in livestock receipts and a 1-percent decline in crop receipts.
Vilsack: Congress has to give USDA authority on cottonseed
The USDA is prevented by statute from creating a subsidy program, potentially costing $1 billion a year, for cottonseed, Agriculture Secretary Tom Vilsack said in an essay in Farm Journal. Congress, he says, needs to change the law.
Cotton growers can use certificates to boost USDA payments
As directed by Congress, USDA is giving cotton growers the chance to use so-called commodity certificates to retire crop support loans, a step estimated to funnel an additional $40 million to farmers facing the lowest market prices since 2009.
Lower food-stamp costs spur some farm-bill crowing
Cost savings under the 2014 farm law will be more than twice as large as originally forecast, around $36 billion over 10 years, thanks to markedly lower projected outlays on food stamps and crop insurance, says the House Agriculture Committee.
Voices lowered, cottonseed-subsidy debate continues
The cotton industry and a leading ally on Capitol Hill are pressing to make cottonseed eligible for crop subsidies despite the USDA's conclusion that it lacks the authority to do so. Payments could total $1 billion a year, according to an estimate by university economists.
Cottonseed subsidy may require congressional action
Agriculture Secretary Tom Vilsack said he wants to help cotton growers deal with the lowest market prices in seven years, but "there are some serious legal issues involved" in the cotton industry's request for subsidy payments on cottonseed.
Farmers to get $10 billion in economic assistance
President Biden signed a stop-gap government funding bill over the weekend that calls for speedy payment of $10 billion to farmers to buffer lower commodity prices and high production costs. Congress voted to fund the government through March 14 after a fight that showed the limits of President-elect Trump's control over Republican lawmakers.