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.
The USDA expects storm-ravaged farmers to file more than $1 billion in prevented-planting claims for fields they could not plant this year due to heavy rains and flooding, according to press reports.
Some growers may collect three or even four payments on land where they were unable to plant a crop this spring due to persistent rain and flooding, but no one is going to get rich off of it, said Agriculture Secretary Sonny Perdue on Wednesday.
The past five years, since the collapse of the commodity boom, “has resulted in a massive drain of farm sector liquidity” and working capital is critically low, said economist Brent Gloy on Monday. The new round of up to $14.5 billion in trade mitigation payments promised by …
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.
The U.S. House opened debate on a mammoth federal spending bill, including money for the USDA, on Tuesday under the threat of a presidential veto of the $322 billion bill. The White House said it opposed half a dozen USDA provisions in the bill, including language that would preclude relocating two research agencies to Kansas City and implementing a new inspection system for hog-slaughter plants.
The USDA will not make Trump tariff payments on farmland that is not planted this year, because it's not allowed by law to do so, said Agriculture Secretary Sonny Perdue on Monday. But there may be a way to provide some assistance to growers from the $14.5 billion in Market Facilitation Program (MFP) funds allotted for this year's crops, Perdue said, ahead of President Trump's visit to Iowa.
Agriculture Secretary Sonny Perdue said he'll have a decision "sooner rather than later" — maybe by Friday or maybe next week in Iowa with the president — on whether unplanted cropland will be eligible for Trump tariff payments this year. The USDA initially said unplanted land would not be eligible for the up to $14.5 billion in trade-mitigation payments, but the huge amount of flooded land in the Midwest prompted a second look at the question.
USDA lawyers may have an answer this week on whether Trump tariff payments, intended to mitigate the impact of the trade war, can be given to farmers unable to plant a crop this year, said Agriculture Secretary Sonny Perdue on Monday.