Time is running out for USDA to issue the nearly $10 billion of economic relief payments to farmers. Congress approved a 90-day window to release those payments, and in an exclusive interview with U.S. Secretary of Agriculture Brooke Rollins Thursday morning, we asked when exactly those payments will be released. Rollins confirmed to Farm Journal that those payments will be released before the current deadline.
“Congress gave us until March 21, that is the ideal deadline,” Rollins said. “It looks like we’re going to be able to beat that, so it should be just around the corner.”
As USDA works to release those payments within the next few weeks, according to some sources, producers are banking on the payments, even making business decisions based on projected payment calculations.
Pro Farmer Washington policy analyst Jim Wiesemeyer says the only issue that could impact that timing is a possible government shutdown. If the government shuts down beginning March 15, and those payments haven’t been released yet, that could impact the March 21 deadline.
Wiesemeyer also reports based on history, the initial payment will likely be around 85% of the projected total, with a supplemental payment likely coming in the summer. Most expect the per acre payment rates to be in line with what staffers on the House Ag Committee released last year, which are:
- Corn: $43.80
- Soybeans: $30.61
- Wheat: $31.80
- Cotton: $84.70
- Rice: $71.37
Payment Cap
Like other recent disaster programs, the payment limit for farmers will depend on how much of a farmer’s income is derived from agriculture. However, this program is based on average gross income rather than adjusted gross income (AGI).
The payment cap will be:
- If < 75% of average gross income from 2020 to 2022 is from agriculture, then the limit is $125,000
- If 75% or more of average gross income from 2020 to 2022 is from agriculture, then the limit is $250,000
- USDA says standard FSA “actively engaged in farming” requirements apply
Update on Timing of $1 Billion to Combat Avian Flu
Led by Rollins, USDA announced on Wednesday plans to invest up to $1 billion in new funding to combat impacts of highly pathogenic avian influenza (HPAI) and soaring egg prices.
“The important piece is not just this immediate short-term goal of getting the cost of eggs down and repopulating our layers and locking our barns down,” Rollins told Farm Journal on Thursday. “But much more importantly, perhaps, is figuring this out for the long term, so we’re not having the same conversation over and over and over again.”
The avian flu plan, which USDA rolled out on Wednesday, includes five major points:
- Dedicate up to $500 million to help U.S. poultry producers implement “gold-standard” biosecurity measures. USDA has developed a successful pilot program, called Wildlife Biosecurity Assessments, to identify and implement more safety measures. USDA will pay up to 75% of the cost to address any identified biosecurity vulnerabilities at poultry farms.
- Make up to $400 million of increased financial relief available to farmers whose flocks are affected by avian flu, and USDA will assist farmers in receiving faster approval to begin safe operations again after an outbreak.
- USDA is exploring the use of vaccines and therapeutics for laying chickens. While vaccines aren’t a stand-alone solution, they will provide up to $100 million in research and development of vaccines and therapeutics, to improve their efficacy and efficiency. This should help reduce the need to depopulate flocks, which means killing chickens on a farm where there’s an outbreak. Note: USDA hasn’t yet authorized the use of a vaccine. Before making a determination, USDA will consult state leaders, poultry and dairy farmers, and public-health professionals. The agency will also work with trading partners to minimize potential negative trade effects for U.S. producers and to assess public-health concerns.
- USDA will take other actions to lower the price of eggs. For starters, it will remove unnecessary regulatory burdens on egg producers where possible. This will include examining the best way to protect farmers from overly prescriptive state laws, such as California’s Proposition 12, which established minimum space requirements for egg-laying hens.
- USDA will consider temporary import options to reduce egg costs in the short term. They will proceed with imports only if the eggs meet stringent U.S. safety standards and if they determine that doing so won’t jeopardize American farmers’ access to markets in the future.
As for the $500 million that will go toward beefing up biosecurity efforts, Rollins says that will happen immediately.
“The team is putting together right now the guardrails for that, but I think they’re almost finished, and that money should be moving out very quickly,” Rollins told Farm Journal. “That biosecurity money is based on a pilot program where 150 different egg laying farms were piloted on specific biosecurity measures. Of those 150, only one has seen the avian flu. Once they implemented, there’s a massive audit that USDA comes in. They help audit. We’re hiring a whole bunch of new folks to come on board to do that — and new epidemiologists to help us work through all of the science on this, and hopefully you see that immediately.”
Where is the $1 Billion Coming From?
At a time when the Trump administration is looking to save money, not spend, we asked Rollins where exactly is the $1 billion of funds going to be sourced.
“We’ve repurposed funds from other programs within USDA, so this is not spending new money,” Rollins said. “Clearly, we’re in an era where President Trump’s vision is to really streamline government, but this is not that. This is outside that lane. This is a really, really important issue. You know, it’s affecting every single American, not just our poultry producers. And so there’s short-term and long-term fixes here now.”
Some of that money, however, is coming from savings from the Department of Government Efficiency (DOGE).
“We are pulling it from multiple different pots. But yes, there’s no doubt that we’ve been able to find some serious savings in DOGE,” Rollins said. “We’ve canceled almost a thousand DEI trainings that were across USDA.... All of it adds up, and we’ve really pulled a lot of that money back. And now putting it where we think it really helps farmers and ranchers.”
What Will It Take for the Ag Economy to Recover
Rollins is set to give the keynote address at USDA’s Ag Outlook Forum on Friday. Rollins told Farm Journal there are a lot of farmers hurting in this economy, saying “it’s one of the worst for that industry that we’ve seen in decades.”
Considering 64% of ag economists think the row crop sector of agriculture is in a recession, we asked Rollins what it will take for the ag economy to recover.
“There’s no doubt, to your point, a lot of our producers in the different lanes are really hurting. Listen, we’ve got to get the cost of input down. We have got to get our export markets opened up around the world. I mean, we’re facing this year a $45 billion trade deficit,” said Rollins.
Rollins says when President Trump left the White House in 2020, there wasn’t a trade deficit. And she says the growign trade deficit is something President Trump wants to address.
“Just think about the amount of ag production that we were once moving out across the world that was keeping our farmers whole and making sure that they could make some kind of a profit,” said Rollins. “That’s not there anymore. Obviously, inflation, the cost of energy has absolutely decimated our producers. The input cost is up 30%. So when you’ve got all of these different factors that are basically piling on at one time, it’s it’s no surprise that sorghum, cotton and so many others are really hurting right now. And we’ve got to do something about that.”
As input prices remain elevated, and commodity prices are below break-even for some, Rollins says she and President Trump are aligned in what needs to happen to bring relief to farmers.
“My perspective, and the president’s perspective, is how do we achieve this through broader access to markets, broader access to capital, making sure that that the cost of inputs goes down. Hopefully with our energy plan, we see that happening almost immediately. And I think that will move into a different era for prosperity for ag, but there’s no doubt it is a dire, dire forecast right now without significant change.”
During the the first Cabinet meeting in President Trump’s second-term, which was held Wednesday, President Trump floated 25% tariffs on the European Union.
“Obviously, tariffs always come up. I’m always saying, ‘let’s be very, very careful and intentional how we move here,’” Rollins said about the first Cabinet meeting. “The border came up, immigration deportations came up. So all the things that the ag community is concerned about that came up, course, I’m at the table. My job is to ensure that that our community’s voice is heard, but also to help effectuate the president’s vision. And we’re moving forward on all fronts.”
You can listen to the complete interview with Secretary Rollins below.
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