Subsidies

USDA Releases Per-Acre Rates for Farmer Bridge Assistance Program

Wed, 31 Dec 2025 21:02:36 GMT

The long-awaited Farmer Bridge Assistance rates are out! Rice and cotton will receive the highest per-acre rates, in keeping with earlier predictions.

On the last day of 2025, USDA announced the Farmer Bridge Assistance program rates for row crop and oil seed farmers hit hard in 2025 by the ongoing trade wars.

“Farmers who qualify for the FBA program can expect payments in their bank accounts by Feb. 28, 2026,” says Agriculture Secretary Brooke Rollins in the announcement.

The following per-acre rates apply:

Corn: $44.36
Soybeans: $30.88
Wheat: $39.35
Cotton: $117.35
Rice: $132.89
Peanuts: $55.65
Sorghum: $48.11
Barley: $20.51
Canola: $23.57
Sunflower: $17.32
Lentils: $23.98
Peas: $19.60
Oats: $81.75
Mustard: $23.21
Safflower: $24.86
Flax: $8.05
Chickpeas: $26.46 (large), $33.36 (small)
Sesame: $13.68

Oil seeds rapeseed and crambe — which were included in the original list of commodities to receive payments according to USDA’s Dec. 8 announcement of the bridge payments — were not included in the Dec. 31 rate list.

The payments, which amount to $11 billion, are intended to bridge the gap between current economic straits of farmers dealing with “unfair market disruptions” and the stepped-up farmer support programs from the previously titled “One Big Beautiful Bill Act ,” which will take effect in October 2026.

In addition to the $11 billion for row crops, $1 billion was set aside for specialty crops and sugar. The Dec. 31 rate announcement, like the Dec. 8 initial announcement of the bridge payments, notes “timelines for payments to producers of these crops are still under development.”

The bridge payments are funded under the Commodity Credit Corporation and will be administered by the Farm Service Agency based on 2025 acreage reports. Payments will be released to eligible producers by Feb. 28 with a limit of $155,000 per entity or individual. Click here to access USDA’s FBA program calculator.

Reaching the Farmer Bridge Assistance Rates

According to USDA, the FBA rates were developed using “a uniform formula to cover a portion of modeled losses during the 2025 crop year.” This loss average was reportedly based on planted acres reported to the Farm Service Agency, cost of production estimates from the Economic Research Service, and yields and prices from the World Agricultural Supply and Demand Estimates report.

The announced rates were mostly in keeping with earlier estimates. For example, shortly after the bridge payments were announced Farm CPA Paul Neiffer projected that corn would see rates of $43.52 to $48.35. Later in December, University of Illinois’s farmdoc Daily released its own estimates , which trended a bit higher than Neiffer’s, but they were also in line with the Dec. 31 announcement. For example, farmdoc estimated cotton would see a $115 rate.

Both based their estimates on how USDA did the 2024 Emergency Commodity Assistance Program payments given the similarities between how that is calculated and how USDA described it would calculate the FBA rates to row crop and oil seed growers.

What About the Other Commodities?

Notably absent from the list of crops benefiting from the bridge payments are fruit, vegetables, dairy, meat, and nuts, crops that collectively represent hundreds of billions of dollars to the U.S. economy.

According to USDA’s Dec. 8 announcement, “the remaining $1 billion of the $12 billion in bridge payments will be reserved for commodities not covered in the FBA program such as specialty crops and sugar, for example.”

By contrast, the Dec. 31 rate announcement specified that the $1 billion would be just for specialty crops and sugar.

Shortly after the FBA program was announced, the Specialty Crop Farm Bill Alliance expressed disappointment that specialty crop growers were not included directly in the bridge payments. The group noted specialty crops account for more than one-third of all U.S. crop sales. Later, on Dec. 18, the Congressional Specialty Crop Caucus urged congressional agricultural committees to make that $1 billion available to growers immediately .

According to records from USDA’s Economic Research Service, these agricultural commodities not directly named to receive bridge payments saw the following total cash receipts in 2024 :

Cattle and calves; $112.09 billion
Dairy products; $50.73 billion
Fruits and nuts; $31.34 billion
Hogs; $27.31 billion
Vegetables and melons; $25.31 billion
“Other Crops” which include commodities like sugar, mushrooms, flowers, and herbs; $40.58 billion

Speaking specifically about the specialty crop industry, Rebeckah Freeman Adcock, vice president of U.S. government relations for the International Fresh Produce Association, told The Packer that $1 billion is not enough : “Quite frankly, the $12 billion is not enough for agriculture in general, and USDA knows that, it’s just this is what they have.”

Some See Payments as a Bandage on a Bigger Problem

Following the announcement of the planned bridge payments, commodity groups and ag economy experts voiced appreciation for the planned payments, but some also noted the payments would be too little, too late in many cases.

Ed Elfman, senior vice president of agriculture and rural banking policy at the American Bankers Association, told AgWeb that the support will help , but it won’t fix structural issues in the ag economy.

“Any aid will help,” he said. “It’ll help make cash flow work a little better. It’ll make the margins look a little better. Profitability will go up, but at the end of the day, it’s just a Band-Aid. It’s not a long-term solution.”

Jerry Gulke, president of the Gulke Group, had much the same to say, calling the payments “like a bridge to nowhere.” Referring to earlier estimates on the FBA rates for corn, he told AgWeb a $46-per-acre payment is woefully inadequate for him to plant corn next spring and that he may need to shift to soybeans in 2026 where the cost of production is lower.

Luke Lindberg, USDA under secretary for trade and foreign agricultural affairs, acknowledged the bridge payments are a short-term solution in a one-on-one interview with AgWeb .

“We don’t want Band-Aid programs. We want fundamental shifts to the farm economy that allow our producers to be profitable for the long run, bring rural prosperity back to rural America,” he said, pointing to USDA’s three-point plan , announced in late September, aimed at bolstering international demand for U.S. ag products.

“Our team certainly plays an important role in generating demand overseas for the products,” he said.

“A lot of those One Big Beautiful Bill provisions, like some of the taxing, tax expenses and things, all start next year,” he added. “We’re bridging the gap from today to what that better future will look like next year.”

Has Government Shutdown Stalled Farm Financial Aid Package?

Tue, 07 Oct 2025 23:33:05 GMT

While U.S. Treasury Secretary Scott Bessent said last week details of potential new federal support for farmers could be released as soon as Tuesday, the announcement didn’t materialize. Furthermore, no announcement is expected this week, according to some media reports.

“The Trump administration has pushed back its plans to roll out economic aid for farmers this week due to the government shutdown,” said an article published Tuesday afternoon by Politico .

The article said the “Office of Management and Budget has readied between $12 billion and $13 billion to be allocated from an internal USDA account,” but no final decision has been made on how much or when the money would go to farm aid.

“If this is a temporary shutdown, you know, if we’re talking another week or two, it’s probably not going to affect too much more in that length of time,” CPA Paul Neiffer ventured during a conversation with Chip Flory, host of AgriTalk.

Still, Neiffer noted farmers are being impacted by delayed and/or canceled payments. He cited ARC and PLC payments farmers have anticipated for the 2024 crop. The funds were supposed to be distributed on Oct. 1 but got postponed.

“That certainly doesn’t help farmers from a cash flow standpoint,” he said. Get the complete discussion on AgriTalk:

Neiffer added that farmers also need to know there is another type of cost to ARC and PLC payments — they are subject to the 5.7% sequestration adjustment.

“If farmers were counting on, let’s say $50 an acre, maybe they’re going to get $47 an acre. So that is something that’s going to affect them,” he said.

As for when the government shutdown might end, Neiffer referenced Washington Policy Analyst Jim Wiesemeyer, who reported the closure might conclude by Friday, Oct. 17.

“Of course, we are dealing with Congress, so let’s don’t use logic,” Neiffer said. “If they can come to a deal on the extension of the Obamacare premium subsidies, I think that’s fairly easy. If the Democrats are going to dig in on Medicaid and some of that other stuff, then, yeah, this could go on quite a while.”

Various Programs And Reports Are Suspended
It’s estimated about 42,000 USDA workers are being furloughed during the shutdown.

“Local FSA offices have mostly closed. It’s about 67% of USDA staff who work in those offices and deal with all the different programs that FSA administers,” Callie Eideberg, policy expert with the Vogel Group, told AgDay TV’s Clinton Griffiths.

“Folks…are waiting for this government to reopen so farmers can continue to engage with these programs and get the money that they so desperately need,” Eideberg said.

Neiffer cited the Environmental Quality Incentives Program (EQIP) and the second stage of the Supplemental Disaster Relief Program (SDRP) as two of the numerous financial programs on hold.

Also in jeopardy of being delayed or cancelled is the October WASDE, scheduled for release this Thursday.

Payment Wheels Likely To Turn Slowly
Even if the financial aid package is announced this week, Neiffer said farmers are unlikely to see any money until December at the earliest, and January 2025 is more likely.

“I think what we have to remember when the ECAP program (Economic Assistance Payment)
was announced in December, it had 90 days to get done, and they took the full 90 days to get it done,” he said.

During their conversation, Flory asked Neiffer whether the timing is right for the aid package.

“I’m starting to get a little concerned,” Neiffer acknowledged. “You know, there are other industries out there that are likely to soon say, ‘Hey, what about us?’”

Another concern Neiffer voiced was whether an aid package is artificially keeping cash rent prices at higher levels.

“You talk to landlords and they could say, ‘Hey, these farmers are getting an extra $50 or $100 per acre. I want a third of that or 40% of it, because I’m the cash rent landlord.’ So, yeah, I do have a concern. The aid is needed, but at what point do we get the law of diminishing returns, and it’s too much? We might be approaching that.”

Your next read: Soybeans Firm on China/Aid Hopes but Corn Falls: Can Cattle Retest Highs?

Fusing The Best of Regenerative Ag and Smart Farming: Senator Marshall’s Take on MAHA

Fri, 25 Jul 2025 14:22:11 GMT

Having grown up as a Kansas fifth generation farm kid and spending many years as a physician, U.S. Senator Roger Marshall, R-Kan., views the Trump administration’s Make America Healthy Again (MAHA) agenda through a different lens than many of his Beltway colleagues.

“I delivered a baby every day for some 25 years in my hometown,” Marshall says. “And certainly, diet and nutrition are so, so, so important. When I came to Congress, this was one of the things I wanted to address. And I want to start by saying there’s no MAHA without American agriculture leadership.”

RELATED: MAHA Report’s Surprising Stance on Glyphosate, Atrazine Explained

While much of the recent reporting around MAHA focuses on unpacking the movement’s outwardly anti-pesticide bent , Marshall has fashioned his own, more conventional ag-friendly version covering four distinct pillars:

Increase American agricultural efficiency
Grow healthier, nutrient rich food
Unlock affordable health care access for millions of Americans
Focus on health care resources to combat the mental health epidemic

“I believe soil health leads to healthy food, which leads to healthy people,” Marshall says. “I hear the MAHA group and I hear the ag folks. I have a foot in each of those worlds, and I am trying to bring them together. Because guess what? American agriculture wants healthy children just as much as anybody.”

RELATED: Decode MAHA’s Potential Effect on the Agriculture Sector

Marshall believes MAHA can achieve that goal by embracing some – but not all – of the regenerative ag principles Health and Human Services Secretary Robert F. Kennedy, Jr., espoused on the campaign trail. American farmers are already reducing chemical use with tools like selective spraying systems and mechanical weeding implements, but the senator knows there’s still meat on that bone. He views it less as a return to “40 acres and a mule” and more as a combination of pieces and parts from the regenerative ag playbook with precision ag technology generously sprinkled into the mix.

“Regenerative ag should be centered around precision ag and growing more with less,” he says. “We’re already using 60% less fertilizers and less pesticides. I think we must continue to decrease the amount of fertilizers and pesticides, so there’s less residue on that loaf of bread in the grocery store.”

Marshall is currently rallying Congressional support for the bipartisan Plant Biostimulant Act. This yet-to-be-ratified farm policy would streamline the FDA approval process under FIFRA for new, novel and natural modes of action. But the senator emphasizes the program must remain voluntary.

“About 5% of the farm bill is conservation practices,” he says. “So, I would streamline the FDA process and allow these biostimulants to be one of the options. It’s not a subsidy, though. I just want to make the regulatory process easier. And that’s going to make it more affordable, as well.”

More MAHA: 250-Plus Ag Groups Ask Trump Administration To ‘Correct’ MAHA Commission’s ‘Activities’

Another goal is for the American producer to embrace best-in-class crop production and sustainability practices. The Kansas senator points to one example from his home state as the creative and nimble thinking he wants to see American farmers embrace.

“We have a group of sorghum growers that have their own mill,” Marshall says. “And they’re selling that flour directly to the infant formula (companies) as well as to European markets. The EU has higher standards, so to speak, than America does, and so be it. I don’t know if they’re necessary, but I don’t make the rules. These Kansas farmers have cracked the code and they’re getting a premium for their sorghum right now, and all it takes is a little extra effort.”

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USDA Ends Consideration of Race, Gender in Many Farm Programs

Fri, 11 Jul 2025 18:14:31 GMT

The U.S. Department of Agriculture (USDA) announced an about face on Thursday with regard to how it will consider farmer applications for loans and programs, moving forward.

Specifically, the agency says it will no longer consider a farmer’s gender or race in the decision-making process for how dollars in such programs will be awarded.

The decision ends a longstanding effort by the agency and the Trump administration to address bias and discrimination.

“Moving forward, USDA will no longer apply race- or sex-based criteria in its decision-making processes, ensuring that its programs are administered in a manner that upholds the principles of meritocracy, fairness, and equal opportunity for all participants,” said acting General Counsel Ralph Linden.

According to the 2022 Census of Agriculture, roughly 4.5% of farmers are considered persons of color or of mixed race.

The New Rule Is In Effect

While many rules are posted as a draft first for public comment, agency officials posted this rule in its finalized form without soliciting input. The rule went into effect immediately, July 10.

“These actions collectively support the conclusion that past discrimination has been sufficiently addressed and that further race- and sex-based remedies are no longer necessary or legally justified under current circumstances,” a consortium wrote in the Federal Register.

The groups weighing in included: Office of the Secretary, Federal Crop Insurance Corporation, Natural Resources Conservation Service, Farm Service Agency, Commodity Credit Corporation, Rural Business-Cooperative Service, Rural Housing Service, and Rural Utilities Service, USDA.

Trump Administration Dismantles DEI Policies

The new rule is part of the Trump administration’s directives to dismantle diversity, equity and inclusion policies across the federal government.

In a prepared statement, USDA Secretary Brooke L. Rollins reprimanded former President Joe Biden and USDA Secretary Tom Vilsack, respectively, for looking at “any way possible to give taxpayer dollars to anyone they could based on the color of their skin, not based on merit or need.”

Rollins added, as long as she is Secretary of Agriculture, “when we find leftover Biden discrimination in our programs, we will hold those persons who have committed these insidious acts accountable and take swift action to correct these illegal actions.”

Previous Lawsuits Played A Role

In making the new rule, USDA referenced various lawsuits over its prioritization of racial groups.

Black farmers and other groups in agriculture have long alleged discrimination in the agency’s lending and farm programs. As recently as 2024, the USDA made payments to tens of thousands of farmers who experienced past bias.

In addition, white farmers, some backed by prominent Republicans, have sued the agency, claiming discrimination.

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Why U.S. Agriculture Needs More AI Investment to Stay Ahead in Global Crop Innovation Race

Tue, 20 May 2025 18:15:48 GMT

Artificial Intelligence (AI) is a key tool in accelerating the discovery, development and manufacturing of new crop protection molecules to fight yield-robbing weeds, pests, and diseases in U.S. farm fields.

The technology helps researchers shorten the discovery window and find new and novel active-ingredient molecules that are much more difficult and expensive to uncover using traditional research methods.

That was among the talking points that emerged from Tuesday’s congressional hearing on AI in farming, held in front of the U.S. House of Representatives Science, Space, and Technology Committee in Washington, D.C.

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At the hearing, key agricultural stakeholders advocated for increasing government investment in AI technology and infrastructure. The group warned Congress that America’s status as a world leader in AI has been usurped by Japan and China, while other rival countries are also gunning for top positions.

Testifying on behalf of U.S. agriculture was Corteva Vice President of Agricultural Solutions Brian Lutz, University of Florida associate professor Chris Swale and University of Illinois assistant professor Boris Camiletti.

“AI is without a doubt one of the most profound technologies ever to be invented,” Lutz said. “We believe there is tremendous opportunity for our government to support and incentivize advanced innovation — including by leveraging the benefits of AI — to benefit American farmers. If we want to win, we need to move smarter and faster than our competition. Corteva believes with the support of our government, we will do exactly that.”

Lutz said researchers at Corteva recently used AI to model how 10,000 different molecules might be used in crop protection, all within a matter of weeks. The Corteva model was able to identify dozens of new potential crop protection molecules that its overworked chemists could not have found otherwise. He said the company is currently testing a handful of these molecules and AI will also play a role in moving the testing phase along more quickly than traditional lab-based methods.

Lutz also told Congress how Corteva scientists have deployed AI technology in its fermentation processes, which the company uses to create what he called “molecules of interest” for evaluation. Over the past few years, Corteva has used AI modeling to engineer various bacterial strains that drive fermentation reactions and optimize reaction conditions, allowing the company to run a manufacturing operation that is as efficient as possible. This application of AI helps Corteva maintain a strong U.S. manufacturing base in the Midwest, Lutz said.

“This is the new face of ag innovation,” he added. “We can accelerate discovery of new classes of crop protection products, like biologicals — nature-based solutions that help farmers grow more food by working alongside traditional crop protection products. With AI, we can begin to predict the incredible diversity of biomolecules and metabolites that are produced by microbes and other organisms, with the goal of unlocking the secrets within plant biology to develop the next generation of safe, highly targeted, nature-inspired products.”

Swale testified to AI’s role in helping researchers on his team find and develop biological-based treatments to combat Asian citrus psyllid, an invasive pest that has left the Florida citrus industry — valued at almost $10 billion just five years ago — teetering on the brink of collapse. Effective synthetic chemicals to manage the Asian citrus psyllid exist, but the regulatory hurdles to get those products onto the market are too high, he said

“We have turned to using AI to help discover chemicals of the natural world because the registration requirements are significantly lower when compared to synthetic insecticides,” Swale said.

Camiletti leads a team of researchers combining plant pathology, remote sensing and AI to help U.S. soybean farmers overcome red crown rot, a soil-borne disease first detected in Illinois soybean fields in 2018.

Illinois has been hit the hardest by the yield-robbing disease, Camiletti said, and the pathogen is spreading rapidly to Indiana, Kentucky and Missouri. The disease is difficult to detect visually, he added, and once symptoms appear it’s often too late for successful remediation.

“My team uses satellite imagery and machine learning to identify red crown rot hot spots, and we train the models with high resolution multi-spectral data to near-infrared bands and use ground observations to teach the algorithm what diseased plants look like,” Camiletti said. “This technology has real on-farm impact. We are building tools that generate prescription maps so instead of applying fungicides across entire fields farmers can target only the affected areas.”

After key witness testimony concluded, the committee opened the floor to questions from members of Congress. Watch the full hearing via the video embedded below:

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Farmers Back U.S. Efforts To Rebalance Trade With China Despite Economic Hardship

Wed, 07 May 2025 21:34:47 GMT

Willing to endure short-term pain for long-term gain might best describe U.S. farmers’ current sentiment regarding ongoing trade and tariff troubles with China and other countries.

Bill Flory, who grows wheat in northern Idaho near Lewiston, said he likes how the U.S. is handling current negotiations with its trade partners, especially China. Officials from the two countries are set for talk trades this weekend in Switzerland.

“I’ll just say that the Trump administration is doing some excellent, excellent heavy lifting, a lot of tough negotiations that will have direct and indirect impacts on production ag,” Flory said on Wednesday.

A similar sentiment appears to be shared on a broad scale by U.S. farmers, according to the latest Purdue University/CME Group Ag Economy Barometer, which was released Tuesday.

The Barometer, a nationwide measure of the health of the U.S. agricultural economy, showed improved farmer outlook in April, climbing 8 points to a reading of 148. This was driven by farmers’ optimism, despite their ongoing concerns about the impact of trade wars and tariffs, reported Jim Mintert, emeritus professor of economics at Purdue University.

“The improvement in farmer sentiment came as a bit of a surprise to us,” Mintert said.

As he dug deeper into the survey results, he was able to identify how farmers were thinking about their finances in the present as well as the future.

“When farmers were asked about what tariffs might mean for their finances in 2025, over half (56%) said they believe there’s a good chance that tariffs will reduce farm income in 2025,” Mintert reported.

“But when we came back and asked them how they feel about tariffs’ impact on the ag economy from a long-term perspective, 70% said they think tariffs will be beneficial long-term to U.S. agriculture,” he added.

Farmers Want Trade To Pay Their Way
Illinois farmer Chad Leman said he is glad to see trade “back in the conversation” at the national level. “We haven’t had any trade talks for the last number of years, and now we’re talking trade again,” said Leman, a third-generation farmer raising corn, soybeans and hogs near Eureka, Ill. “As always with this administration there’s a lot of noise, and you have to try and figure out where it’s headed. But it also brings some volatility to these markets, which, if we play that correctly, can be beneficial to us.”

Secretary of Agriculture Brooke Rollins has promised to have a plan, such as the Market Facilitation Program (MFP), ready for farmers, if needed. In 2019, MFP provided direct payments to producers impacted by retaliatory tariffs that resulted in the loss of traditional exports.

“Everything is on the table right now. Everything. I know that President Trump, whom I speak with regularly, realizes the state of the farm economy in this country,” Rollins told Farm Journal earlier this year.

Market Facility Program Outlook
Both Leman and Flory expressed their dislike for Market Facility Programs and other financial relief-type payments to farmers.

I’m probably swimming upstream a little here, but I really hate to hear talk about another MFP,” Leman said. “I really wish we could get through this without a subsidy of some sort. I wish [the U.S. government] would focus more on the commodity credit loans or something. I mean, we’re looking at 7% borrowing interest on operating right now. And if they would look more at low interest money to get farmers through, I think that would be a win-win for farmers, and it sure looks better from a public perception standpoint,” he added.

The Ag Economy Barometer reported that more farmers believe an MFP could be on the way. “Eighty percent of farmers surveyed say they think an MFP is likely, if [trade talks] cause lower prices for ag products,” Mintert said.

“It’s the market, not a subsidy that we want to put the priority on,” Flory emphasized, recalling the Trump administration’s negotiations with China during his first term.

“The first Trump administration had a large trade deal with China, though China did not fully uphold their quantities and the terms,” Flory said. “But talks with China are extremely important, because they have been such a large [buyer of U.S. commodities], and South America is taking advantage of that.”

Given the ongoing financial upheaval in commodity markets and other economic uncertainty for agriculture, Mintert said the Ag Economy Barometer picked up on increased farmer interest in getting a farm bill passed in 2025.

“For a while there we didn’t have very many people too worried about a farm bill. Now, 45% of the farmers surveyed said it’s very important that a farm bill be passed in 2025, and another 27% say it’s important,” Mintert said. “When you put those two percentages together, you’ve got 72% of the people surveyed saying a farm bill is important. That wasn’t true a year and a half, two years ago. People weren’t worried about a farm bill then. That’s really changed.”

Flory and Leman were part of the Farmer Forum on AgriTalk on Wednesday. Get the full conversation here .

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Rollins: First 50 Days Fighting for Our Country Has Been A Joy, But There's More Work To Do

Fri, 11 Apr 2025 18:36:21 GMT

USDA Chief Brooke Rollins is feeling pretty good about her first 50 days as President Donald Trump’s secretary of agriculture.

The Texas native, who just celebrated her 53rd birthday on April 10, is proud of what her team at USDA has accomplished since taking the reins from former Secretary of Agriculture and Iowa attorney Tom Vilsack.

But despite that progress, her list of issues to tackle soon is quickly filling up. Among those action items is deciding if American farmers will need another round of assistance payments later this year and if USDA headquarters should be relocated.

If Trump’s tariff plan proves successful, Rollins says we’ll be “shipping and selling more of our row crops than ever before.”

In that case, she doesn’t anticipate needing to sign off on additional USDA assistance payments for farmers later this summer. But there’s also a potential worst-case scenario where the agency may need to provide direct farmer aid, which also happened in 2019 during tariff disruption.

Rollins hopes to soon have answers to the rumor that USDA headquarters are being relocated. With more than 106,000 employees across 29 divisions, she says USDA is a “mammoth agency” and alluded that the agency may be better positioned to serve America’s farmers and ranchers in a location closer to the major crop and livestock producing areas of the country.

“Does it make sense for one of the bigger divisions to be in Washington, D.C.? Maybe not,” she says. “So, how do we get the government closer to the people we serve? That is one of the President’s key visions in realigning the entire government and returning the power to the people – by ensuring we have the right governance structure in place, and we’re not strangling the very people we’re trying to help with more regulation and more bureaucrats.”

Rollins also expects some reductions in the USDA workforce could be coming as the Trump administration and the Department Of Government Efficiency (DOGE) set out to “realign USDA around farmers, ranchers, foresters and ag producers first.”

Of course, the issue most farmers have top of mind today, besides low commodity prices and high interest rates, is the ongoing tariff saga.

Rollins says she can’t promise anything on that front yet, but she is confident President Trump’s negotiating chops will be able to finagle the best deal possible. Her USDA onboarding agenda included a deep dive into the global ag economy and tariffs – lessons that have proven rather enlightening for the former D.C. think-tank policy director.

“I’ll tell you what I understand now, and I’ve studied the numbers, the non-tariff barriers and what these other countries have done – not just to all American imports, but specifically to our farmers and our ranchers,” she says. “I’ve heard the President say multiple times just in the last few days how it’s unbelievable what these other countries have gotten away with for decades. And that’s what he’s changing (with tariffs).”

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$10 Billion in ECAP Aid Now Available to Qualifying Farmers

Fri, 28 Mar 2025 19:34:08 GMT

Applications are now open through August 15, 2025, for farmers interested in participating in the $10-billion Emergency Commodity Assistance Program (ECAP), which is being administered by USDA’s Farm Service Agency (FSA).

The aid comes available at a crucial time as farmers are experiencing low commodity prices, high input costs and a variety of trade uncertainties going into the 2025 production season.

The American Relief Act of 2025, which was passed by Congress late last year, authorized the $10 billion for ECAP payments to help offset losses growers incurred during the 2024 crop year.

Payments will be made to farmers on a flat per-acre rate on 100% of planted acres, or 50% of those prevented from planting, Paul Neiffer, Farm CPA, told AgriTalk Host Chip Flory earlier this week.

“Eligible farmers are those planting commodity crops like corn, soybeans, wheat, legumes, dry peas, oilseeds,” Neiffer said.

Acres planted for harvest, grazing, haying, silage or other similar purposes in the 2024 crop year also qualify. In all, a total of 22 different crops are included in the program (see list below).

Neiffer addresses many of the questions farmers are asking him about ECAP in his discussion with Flory on AgriTalk. Listen here:

Specific Requirements For Eligibility
To be eligible, farmers must meet the following requirements, according to Betty Resnick, American Farm Bureau Federation economist:

Be actively engaged in farming.
Have an interest in input expenses for a covered commodity.
Have reported acreage of eligible commodities to FSA for the 2024 crop year planted and prevent plant acres to FSA on an FSA-578, Report of Acreage form.
Have reported acres that were prevented from being planted to FSA for the 2024 crop year on an CCC-576 Notice of Loss form (if applicable).

Producers who have not previously reported 2024 crop year acreage or filed a notice of loss for prevent plant crops, must submit an acreage report by the August 15, 2025 deadline.

Notably, the initial round of payments will only amount to 85% of the per-acre payment to ensure that enough funding is available for all farmers who sign up for the program, Neiffer told Flory.

After the ECAP application period closes on August 15, a second payment may be issued with the remaining funds up to the additional 15% of the per-acre payments. Farmers can estimate their total expected payments using an online calculator available at fsa.usda.gov/ecap.

Producers can also contact their local FSA offices with additional questions.

Farmers can use the ECAP calculator provided by USDA-FSA to get an idea of what their payment could be potentially.

(Lori Hays)

Eligible Crops And Rates
Commodities included in the program are:

Wheat: $30.69
Corn: $42.91
Sorghum – $42.52
Barley – $21.67
Oats – $77.66
Upland cotton & Extra-long staple cotton – $84.74
Long & medium grain rice – $76.94
Peanuts – $75.51
Soybeans – $29.76
Dry peas – $16.02
Lentils – $19.30
Small Chickpeas – $31.45
Large Chickpeas – $24.02

Eligible Oilseeds:

Canola – $31.83
Crambe – $19.08
Flax – $20.97
Mustard – $11.36
Rapeseed – $23.63
Safflower – $26.32
Sesame – $16.83
Sunflower – $27.23

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Here’s How Much You Can Receive Per Acre From $10 Billion USDA Payment

Tue, 18 Mar 2025 20:02:39 GMT

Secretary of Agriculture Brooke Rollins announced today new information about the first round of direct payments for farmers through the Emergency Commodity Assistance Program (ECAP) .

Rollins says the program, administered by FSA, will help producers offset some of the impacts of increased input costs amid falling commodity prices. In an exclusive interview with Farm Journal in late February, she confirmed emergency relief payments would be released before the March 21 deadline established by Congress.

ECAP payments are based on planted and prevented plant crop acres for the 2024 crop year. Assistance will be calculated using a flat payment rate for the eligible commodity multiplied by the eligible reported acres. For acres reported as prevented plant, ECAP assistance will be calculated at 50%. These payments are separate from the $21 billion in proposed natural disaster aid payments, which will be rolled out later this year.

Here are the per-acre payment rates and eligible commodities:

Sign-up starts tomorrow, March 19, and runs through Aug. 15, 2025. Only one application is required for all ECAP eligible commodities. Applications can be submitted to FSA in-person, electronically using Box and One-Span , by fax or by applying online at fsa.usda.gov/ecap using a secure login.gov account.

Rollins has tasked FSA with ensuring a streamlined sign-up and approval process, and pre-filled applications will be sent to farmers who have already submitted 2024 acreage reports.

USDA also wants farmers to know they do not have to wait for the pre-filled ECAP application to arrive to apply for the funds. They can visit fsa.usda.gov/ecap and apply or contact their local FSA office to request an application starting March 19.

ECAP payments will be issued as applications are approved, though initial payments will be factored by 85% to ensure total program payments do not exceed available funding. If additional funds remain, FSA might issue a second payment.

Why Payments Now?
The payments will “definitely help” farmers and ranchers in the U.S., said Chad Hart, Iowa State University ag economist, on a March 18 AgriTalk segment.

“If you think about what the ag economy has been going through in the past couple of years, we have seen a drop in net farm income that has led to a softening of the overall ag economy, which has manifested itself in, for example, the layoffs we’ve seen with John Deere and things like that,” he says. “So this does help support that cash flow going into planting season.”

American Farm Bureau Federation vice president Scott VanderWal says he’s already hearing stories from farmers who are being turned down for operating loans to get a crop in the ground this spring, so the additional support from USDA will be well-received among farmers that need a quick influx of operating capital.

“Agriculture is really hurting after the last year or so, and we’re looking at negative margins on corn and soybeans, and probably wheat as well, so its not a good situation,” said VanderWal on AgriTalk. “We’re not seeing our markets come up at all with the rumors of retaliatory tariffs and all these things that are going on.”

30 Minutes With Secretary of Agriculture Brooke Rollins In Her First Week On the Job

Wed, 19 Feb 2025 21:13:59 GMT

Since Saturday, Nov. 23, 2024 , Brooke Rollins has been focused on how to build the teams and the plans that impact the trajectory of agriculture and rural America. On that day, while en route with her husband and four teenagers in their motor home to Auburn, Ala., for the Texas A&M football game, she got a call from now President Donald Trump. The purpose of his call: She was his top choice to fill his final significant cabinet position, Secretary of Agriculture.

Obviously, she had to wait for confirmation, which came last week on Feb.13 when the Senate overwhelmingly confirmed her as the 33^rd Secretary of Agriculture , but since that Saturday before Thanksgiving, she’s been on the go with an accelerated enthusiasm to understand the significant challenges facing rural communities that lost 147,000 family farms between 2017 and 2022 and why the cost of inputs are up 30% as exports are down $37 billion this year and likely to fall further in the months to come.

“This is a crisis, and this is something that I understand inherently,” Rollins said to kick off Top Producer Summit in Kansas City on Tuesday. “My promise to you is this, and my commitment will never waver, that every minute of every day for the next four years I will do everything within my power, with hopefully God’s hand on all of us and our work, to ensure we are not just entering the golden age for America, as my boss, President Trump, likes to say, but we are entering the golden age for agriculture.”

What Has Rollins Been Up to the Past Four Years?
Secretary Rollins and President Trump have worked together for almost eight years. She was in the West Wing with him for years two, three and four of his first term running his domestic policy agenda.

“This real estate guy from New York City brought that vision to life, and then in the last term, was able to really do some remarkable things,” Rollins said in regard to President Trump returning power to the people who just want a chance at the American dream. “I call it the great pause, the four years in between term one and term two. But I think the great pause allowed very intentional planning. It allowed a courageous and bold leader in President Trump to become a fearless leader and to do everything he can to bring America back to greatness.”

In the “dark days of January 2021,” as she described, Secretary Rollins helped launch the America First Policy Institute, a think tank established by former Trump officials to promote conservative policies. The idea was that those policies that made America great in Trump’s first term would continue indefinitely, not just for a second term, but for four years, eight years or 36 years, Rollins described.

First Week On the Job
Since being confirmed last week, Secretary Rollins has been in the Washington, D.C., USDA office for a few hours, but most of her time has been spent in Kentucky at National Farm Machinery Show in Louisville and Gallrein Farms and in Kansas visiting Finney’s County Feeder, High Plains Ponderosa Dairy and the National Beef Packing Plant .

Describing herself as “a reader and a studier,” Rollins seems adamant to hear firsthand from farmers and ranchers. She referenced her visits to the dairy farm and National Beef facility as inspiring, in a good way but also in a way that helps her understand the real challenges at hand.

Speaking to the crowd at Top Producer Summit, she shared her appreciation for the “entrepreneurial American game changers” who are doing their part to feed the world.

“It is so inspiring and a reminder of the very beginning of our country.” Rollins said. “Our revolution was fought by farmers, our Founding Fathers, like Thomas Jefferson and George Washington. The backbone of the great American experiment is this community.”

Thank you @topproducermag for hosting @RogerMarshallMD and me in Kansas City, Missouri, with 1,000 of the Top Producers from across the US to talk about issues like expanding trade access and cutting regulatory red tape for farmers.

Biden’s ZERO trade deals and inflationary… pic.twitter.com/ejMxKxkRMG
— Secretary Brooke Rollins (@SecRollins) February 19, 2025

Farmer Q&A
Watch and listen to what Secretary Rollins, as well as Sen. Roger Marshall of Kansas, had to say on stage at Top Producer Summit about these 7 topics:

Trade and tariffs — “ Let’s go barnstorm the world , and let’s go find some more trade partners and access [to market opportunities],” Rollins said.
Department of Government Efficiency (DOGE) efforts and modernizing USDA — “DOGE is a very valid and important effort across all government. The stories of waste and abuse were really just, not USDA specific but across government, beginning,” Rollins said.
Federal programs, such as CSP and EQIP — “Our commitment is that if there have been commitments made, those will be honored. Getting our arms around all of that right now is really, really, important. Again, going back to the President’s heart and commitment to our farmers, I feel confident we will be able to solve any issues that are in front of our ag community, that are potentially being compromised by the DOGE effort, while at the same time recognizing how very, very important it is,” Rollins said.
Future of USDA — “There’s no question USDA needs some modernization. I’m just beginning to lean into that as well,” Rollins said. USDA has 106,000 employees and 29 departments. “The Secretary is taking over a department where only 6% of the [D.C.] people work in the office,” Marshall added.
Renewable fuels — Prior to President Trump’s first term, he was “the first major candidate to support biofuels, and I think that carried him through Iowa in many ways. … We’ve got E15 year-round. I think that gives us some certainty as well. … The President is supporting that. I think we’re trying to figure out how to save 45Z, but we can’t let China benefit from it. Right now, China is benefiting more from [45Z] than my farmers and ranchers are, so we’ve got to fix that,” Marshall says.
Immigration policies and availability of long-term labor — “I have a full-bodied understanding of the challenges within the labor market, and I believe the President does too. … I believe that we will very soon be talking about it again. Clearly, the H-2A program needs significant reform, and Lori Chavez-DeRemer, she’s going through the [confirmation] process right now. … Hopefully she’ll get her vote very soon. We’ve got a lot of work to do,” Rollins said.
Trump’s cabinet members — “Our cabinet is comprised of people that have been working together and have been friends and colleagues for years, with a few exceptions. Bobby Kennedy is a new friend, but Lee Zeldin and I worked together in America First Works and America First Policy Institute for the last almost four years, Linda McMahon in education and John Brooks — these are our people,” Rollins said.

How Do Wind, Solar, Renewable Energy Effect Land Values?

Thu, 26 Sep 2024 18:31:51 GMT

Since the signing of the Paris Agreement and its Net Zero by 2050 iniative, the ripple effects are still being ironed out as the demand for renewable energy increases.

With expanding renewable energy installations such as wind and solar, The Top Producer Podcast host Paul Neiffer asked David Muth of Peoples Company Capital Markets , the Investment platform for Peoples Company, how those land uses change long term land values.

“We’re really seeing emerging revenue streams from our land base–outside of the ag production,” he says. “We’re trying to get our arms wrapped around the asset management strategy and really get this well positioned. So over the next 10 or 20 years, we’re expanding revenue right and capturing that correctly.”

Muth shares the estimate that over $1 trillion dollars a year is being invested globally in the low-carbon energy transition.

“If we step back and look at what that means for farmland, we’re taking our energy production system from highly centralized production facilities and we have to distribute it,” he says.

The team at Peoples Company used the Princeton Net Zero America study as the basis scenario for its work, which shows if there are 6,000 wind turbines in Iowa today, it needs to increase to about 48,000, which could bring almost $1 billion a year in additional revenue back to the landowners from the turbines.

Muth highlights the considerations for landowners with solar power are different than wind.

“With solar, it’s different. There’s certainly a free market element to this where the revenue streams and the value equations associated with the land in different areas will drive just how high they’ll push those numbers,” he says.

Solar’s Impact On Rural Property Values

He notes he’s seen annual leases with standard escalators for $1,100, and there are additional state and federal incentives.

“In Illinois, there’s been a big push, and we’ve seen options for solar development contracts on some of the best of the best farm ground for $1,400. It is what they’re talking about as a starting place on these assets. The core question is because it’s a fundamental shift in land use, how do you look at the underlying land value where you put solar in place?”

Thinking of recent trends, he says Illinois farm land has appreciated 7% a year, but the future appreciation rate is unknown just as the productivity of the land after solar panels are removed is unknown.

“It’s part of this sort of chaos that landowners are having sort through,” he says. “That’s where a pretty detailed discounted cash flow and understanding how much am I really making on that $1,400 an acre lease payment with a 2% escalator if the underlying farmland value doesn’t appreciate the way that the rest of that highly productive Illinois farm ground is going to appreciate.”

Pop-Up Solar: Can Farmers Make Fertilizer, Fuel and Electricity from the Sun?

Muth says the biofuels industry growth will also effect land values as the production of corn and soybeans is needed for Sustainable Aviation Fuel and renewable diesel.
He discusses more about wind, solar, biofuels as well as carbon storage opportunities on The Top Producer Podcast.

Why Farmers Are Protesting In Europe

Tue, 20 Feb 2024 21:08:22 GMT

Farmers are protesting across the European Union, saying they are facing rising costs and taxes, red tape, excessive environmental rules and competition from cheap food imports. Demonstrations have been taking place for weeks in countries including France, Germany, Belgium, the Netherlands, Poland, Spain, Italy and Greece.

While many issues are country-specific, others are Europe-wide. Here is a detailed look at the problems that have prompted the protest movement across the bloc and in individual countries.

IMPORTS

Demonstrations in eastern Europe have focused on what farmers say is unfair competition from large amounts of imports from Ukraine, for which the EU has waived quotas and duties since Russia’s invasion. Polish farmers have been blocking traffic at the border with Ukraine, which Kyiv says is affecting its defense capability and helping Russia’s aims. Meanwhile, Czech farmers have driven their tractors into downtown Prague, disrupting traffic outside the farm ministry.

The farmers resent the imports because they say they put pressure on European prices while not meeting environmental standards imposed on EU farmers. Renewed negotiations to conclude a trade deal between the EU and South American bloc Mercosur have also fanned discontent about unfair competition in sugar, grain and meat.

RULES AND BUREAUCRACY

Farmers take issue with excessive regulation, mainly at EU level. Centre stage are new EU subsidy rules, such as a requirement to leave 4% of farmland fallow, which means not using it for a period of time.

They also denounce bureaucracy, which French farmers say their government compounds by over-complicating implementation.

In Spain, farmers have complained of “suffocating bureaucracy” drawn up in Brussels that erodes the profitability of crops.

In Greece, farmers demand higher subsidies and faster compensation for crop damage and livestock lost in 2023 floods.

RISING DIESEL FUEL COSTS

In Germany and France, the EU’s biggest agricultural producers, farmers have railed against plans to end subsidies or tax breaks on agricultural diesel. Greek farmers want a tax on diesel to be reduced.

In Romania, protests in mid-January were mainly against the high cost of diesel.

In France, many producers say a government drive to bring down food inflation has left them unable to cover high costs for energy, fertilizer and transport.

WHAT ARE GOVERNMENTS DOING?

The European Commission late last month proposed to limit agricultural imports from Ukraine by introducing an “emergency brake” for the most sensitive products - poultry, eggs and sugar - but producers say the volume would still be too high. The Commission has also exempted EU farmers for 2024 from the requirement to keep some of their land fallow while still receiving EU farm support payments, but they would need to instead grow crops without applying pesticides.

French Prime Minister Gabriel Attal announced measures including controls to insure imported foods do not have traces of pesticides banned in France or the EU, and talks to get farmers higher prices and loosen bureaucracy and regulation.

Paris and Berlin have both relented to the pressure and rowed back on plans to end subsidies or tax breaks on agricultural diesel. In Romania, the government has acted to increase diesel subsidies, address insurance rates and expedite subsidy payments.

In Portugal, the caretaker government has announced an emergency aid package worth 500 million euros, including 200 million euros to mitigate the impact of a long-running drought.

WHY FARMERS ARE PROTESTING, BY COUNTRY:

FRANCE

- EU red tape

- Diesel prices

- Need more support to shore up incomes

- Access to irrigation

- Criticism over animal welfare and use of pesticides

POLAND

- Cheap imports from Ukraine

- EU regulation

CZECH REPUBLIC

- Bureaucracy

- Cheap imports

- EU farm policy

SPAIN

- “Suffocating bureaucracy” drawn up in Brussels that they say erodes the profitability of crops

- Trade deals that they say open the door to cheap imports

PORTUGAL

- Insufficient state aid, subsidy cuts

- Red tape

ROMANIA

- Cost of diesel

- Insurance rates

- EU environmental regulations

- Cheap imports from Ukraine

BELGIUM

- EU requirement to leave 4% of land fallow

- Cheap imports

- Subsidies favoring larger farms

GREECE

- Demands for higher subsidies and faster compensation for crop damage and livestock lost in 2023 floods

- Diesel tax and surging electricity bills

- Falling state and EU subsidies

(Reporting by Sybille de La Hamaide and Gus Trompiz; Editing by Crystal Chesters)

USDA's CRP Payments Reach $1.77 Billion in 2023, Iowa Easily Tops the List of States Receiving the Most Money

Tue, 17 Oct 2023 21:54:01 GMT

USDA has allocated more than $1.77 billion this year to agricultural producers and landowners through its Conservation Reserve Program (CRP). This program plays a major role in the USDA’s efforts to promote climate-smart agriculture and forestry on working lands.

Currently, over 667,000 participants in the CRP have received payments from the USDA’s Farm Service Agency (FSA) for their voluntary conservation initiatives covering more than 23 million acres of private land. Since 2021, the CRP has witnessed a 21% increase in enrolled acres, reflecting the Biden-Harris administration’s commitment to enhancing the program.

The top five states receiving CRP participant payments are as follows:

1. Iowa - $402,508,900

2. Illinois - $172,723,800

3. Minnesota - $150,773,400

4. South Dakota - $129,545,200

5. Missouri - $99,849,600

The CRP is a voluntary program in which agricultural producers commit environmentally sensitive agricultural land to conservation purposes. Participants establish resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality, and create wildlife habitat. In return, FSA provides participants with rental payments and cost-share assistance, with contract durations ranging from 10 to 15 years.

Since 2021, the FSA has implemented several changes to the CRP program, including:

Introducing a new climate-smart practice incentive for CRP general and continuous signups aimed at rewarding participants who implement conservation practices enhancing carbon sequestration and reducing greenhouse gas emissions.
Enabling additional soil rental rate adjustments or rate flexibilities, including potential rate increases where warranted.
Increasing payments for practice incentives from 20 percent to 50 percent, based on establishment cost, for continuous CRP practices.
Raising payments for water quality practices rates from 10% to 20% for specific water quality-enhancing practices available through the CRP continuous signup, such as grassed waterways, riparian buffers, and filter strips.
Establishing a Grassland CRP minimum rental rate benefiting over 1,000 counties with rates currently below the $13 minimum.

FSA has also enhanced the Conservation Reserve Enhancement Program (CREP) to make it more accessible to a broader range of agricultural producers and conservation partners. These improvements include greater flexibility for partners to contribute matching funds in cash, in-kind contributions, or technical assistance. Additionally, FSA is investing in additional full-time staff dedicated to collaborating with CREP partners and program specialists in state offices.

In 2023, FSA enrolled 3.9 million acres in CRP, including 927,000 acres through General CRP, 2.3 million acres in Grassland CRP, and 694,000 acres in Continuous CRP.

Senators Look To Rein-In Abuse Of Farm Payment System

Thu, 03 Aug 2023 11:43:57 GMT

U.S. Senators Chuck Grassley (R-IA) and Sherrod Brown (D-OH) have introduced bipartisan legislation called the Farm Program Integrity Act of 2023 to rein-in what they call abuse of the farm payment system.

“Too often, farm subsidy payments go to those who don’t need the support or aren’t even engaged in farming,” Brown said in a news release the senators distributed jointly.

The proposed legislation would create a hard cap of $250,000 in total commodity support for a single farm operation. It would also require that beneficiaries of the system spend at least 50% of each year engaged in farm labor or management.

“General partnerships and qualified joint ventures would now be treated just like corporations or other limited liability entities is my understanding,” Paul Neiffer, CPA and Principal with CliftonLarsonAllen LLP, told Chip Flory on AgriTalk.

“Under current law, a general partnership with six equal owners would have a payment limit of $750,000. This Act would reduce it to $250,000,” Neiffer adds.

Help For Family Farms

Grassley’s decision to support the Farm Program Integrity legislation is consistent with his repeated efforts to put limits on farm program payments, Flory notes.

“He doesn’t say that big is bad. But what he does emphasize is he wants it to be a program for family farms,” Flory says.

Grassley says too many farm program dollars go to the largest U.S. farming operations.

"(We need to make) sure that the farm program is in fact a safety net, but for medium and small farmers as opposed to those that farm 10,000 to 15,000 acres,” Grassley said earlier this week. “I don’t have anything against big farms getting bigger, but I don’t think we should subsidize them to get bigger.”

He adds that just 10% of U.S. farming operations receive 70% of all yearly farm payments.

“It isn’t right to send bloated farm payments to people who are more familiar with an office chair than a tractor seat,” Grassley said, in the senators’ joint release. “This bill brings honesty to the farm payment system and prioritizes farming families over mega farms. Hard-earned tax dollars should only be sent to hard-working farmers – those with calluses on their hands and dirt under their fingernails.”

Good Intentions, Questionable Results?

Neiffer cautions that the Act, if passed, could have unintended negative consequences for family farms and their owners.

“Currently a large general partnership can have unlimited active family members and each can receive up to the maximum payment limit. This legislation would limit the payment to $250,000 which likely means these larger general partnerships will now break down into smaller two-person partnerships, which will create more tax returns, more administrative burden on the local FSA office, etc.

“I know that Sens. Grassley and Brown mean well, but in my opinion, there should be no limit on entities,” Neiffer adds. “It should simply be a limit on the owners. If they really want to limit the payments, implementing the labor requirement would be more than sufficient.”

With the focus of conservative Republicans looking to cut government spending, Neiffer says he thinks the proposed legislation could have support.

“A month ago, I would have said it has no chance, but with what’s going on in the House, maybe this has a chance of coming into the new farm bill,” he says.

The AgriTalk conversation between Neiffer and Host Chip Flory is available below:

In other news, see:

Senate Votes to Limit Foreign Land Ownership

Carbon Intensity Is Going To Be A Team Sport

Is Mexico Banning GMO Corn to Protect Native Corn Varieties?

Crop Insurance, Production Costs, ERP Among Key Topics at Senate Ag Farm Bill Hearing

Fri, 10 Feb 2023 21:00:25 GMT

A Senate Ag Committee hearing Thursday on the new farm bill raised a issue that is now evident: the Title 1 farm bill safety net can no longer deal with the current ag environment of rising production costs and relatively high prices for some commodities. USDA officials also faced criticism about its handling of Phase 2 payments via the Emergency Relief Program (ERP).

Other topics that have previously surfaced included Republican concerns about climate and conservation changes to crop insurance, while Democrats continued to urge expansion of the program to more producers.

Need for change

Senate Ag Chair Debbie Stabenow (D-Mich.) said the 2018 Farm Bill largely lived up to expectations, but she suggested its successor must deal with several challenges: increasingly damaging natural disasters and accelerated costs of production.

“There are still gaps in the farm safety net as farmers continue to face global market uncertainty and climate-fueled weather disasters,” she said. “While many commodity prices are at historic highs, which is good, we also know that land and fertilizer and input costs are also near record highs.”

Farm safety net gaps

Ranking Member John Boozman (R-Ark.) said a focus on boosting nutrition and climate programs has obscured the fact that farm safety net programs like Price Loss Coverage (PLC) are ill equipped to deal with the current situation.

Related articles: Stepped-Up Basis Leaning in Favor of Rural America on House Ways and Means Panel

“Prices for many of our major commodities would have to drop sharply before the current Title 1 Price Loss Coverage safety net would start to work,” Boozman said, noting corn prices would need to plummet 46% before PLC would provide enrolled farmers any assistance. “By the time corn prices fell that low, the significant damage would have already been done.”

Sen. Tommy Tuberville (R-Ala.) asked if USDA had looked at how the two safety net programs respond to inflation, such as adjusting reference prices — which trigger payments under the PLC program.

“I will tell you my legislative staff is always quick to tell me to emphasize that Congress writes the farm bill, and then that’s going to be important here too, obviously those reference prices are in statute,” USDA Undersecretary for Farm Production and Conservation Robert Bonnie told Tuberville. “When we talk to producers, there’s lots of concern about obviously rising input costs,” he added, but then emphasized USDA can only operate farm safety net programs as dictated by Congress.

USDA disaster aid implementation was both praised and criticized

Democrats and Republicans agreed with farmers who have complained about USDA’s methodology for payments under Phase 2 of the ERP, saying they do not adequately compensate farmers for their losses. “I appreciate USDA’s efforts through Phase 1 of ERP, which generally worked well in supporting producers with crop losses and [2020 and 2021],” said Sen John Thune (R-S.D.). “But the Phase 2 methodology… often does not accurately reflect crop losses that Congress meant to cover.”

Thune urged USDA consider reverting to the approach used in Phase 1 of the ERP effort for 2022 losses, a suggestion echoed by Sen. Amy Klobuchar (D-Minn.), who said farmers in her state “are grateful for the quick and effective approach taken during the implementation of ERP Phase 1,” but “a number of them have been less enthusiastic of the income tax-based approach taken during the rollout of ERP Phase 2.”

Bonnie said USDA’s approach on ERP Phase 2 focused on ensuring more producers had access to aid, but said if there are resources remaining after the effort the department may look at a shallow loss effort to address some of the concerns with Phase 2.

Related articles: The Cost of a Farm Bill: 2023 Row Crop Priorities

Bonnie said ad hoc programs like ERP have helped farmers facing disaster-related losses, but he stressed that federal crop insurance remains a key risk management tool, and that USDA has worked to expand the program to cover more producers.

Crop insurance and climate intersect

Boozman again raised a concern voiced by many Republicans about any move to use crop insurance to incentivize climate or conservation practices — which GOP members contend could undermine the actuarial soundness of the program and move it away from its core focus as a risk management tool.

“Can you commit to making sure that any efforts to expand the crop insurance programs are science based, peer reviewed, and protect the integrity of the program,” he asked Bonnie, saying a “one-size fits all” approach that elevates certain practices like cover cropping could disadvantage farmers in areas where those practices are not practical.

Bonnie responded that “with respect to crop insurance, everything we have to do has to be actuarially sound as we’ve got to maintain the integrity of crop insurance.” He said recent incentives offered to farmers for cover cropping have taken the form of premium rebates — not changes to premiums or the overall premium subsidy paid by the government.

Stabenow praised federal crop insurance, calling it “the number one risk management tool for producers.” However, improvements are needed, she said, promising improvements to the program, “including specialty crop growers, organic producers, beginning and diversified farmers.”

Regarding prevent plant coverage

Sen. Ben Ray Lujan (D-N.M.) asked if USDA was looking at expanding prevented plant coverage under crop insurance, which pays farmers when they are unable to plant an insured crop due to extreme weathers. He noted eligibility currently hinges on a farmer being able to plant, insure and harvest crops in one of the four preceding crop years — known as the four-in-one rule — and some farmers in the West are at more risk of losing coverage due to prolonged drought conditions.

“One in four is very regionalized in a lot of cases,” acknowledged USDA Administrator Marcia Bunger. “So, for this coming year, we’ve made an exception for several western states to step outside of that one and four,” adding USDA would consult with stakeholders over the next year about a potential long-term solution to the issue.

Related articles: How USDA’s $2.8 Billion Climate-Smart Investment Might Impact Your Operation

USDA climate program efforts were raised by Sen. Chuck Grassley (R-Iowa), who noted concern over USDA’s move to tap more than $3 billion from the Commodity Credit Corporation (CCC) to fund its Partnerships for Climate-Smart Commodities (PCSC) effort that funds climate-smart ag pilot projects.

“Spending over $3 billion without input from Congress is a serious concern for everybody in the Congress,” Grassley stated.

Grassley then asked Bonnie if USDA had any plans to tap CCC for additional USDA programs. Bonnie reiterated what USDA Secretary Tom Vilsack has said — that PCSC falls within the CCC’s charter as it looks to expand and create new markets for ag commodities.

However, Bonnie ultimately said there were no plans for new CCC-backed programs under the Farm Production and Conservation (FPAC) mission area.

USDA Withholds the Names of Farm Subsidy Payment Recipients

Wed, 01 Feb 2023 21:21:34 GMT

USDA withholds releasing the names of everyone who receives farm subsidy payments, hiding the names of a portion of farm subsidy recipients.

An advocacy group that publishes the data says that the decision to withhold recipient names obscures how billions of dollars of taxpayer money is spent.

Read more: Ag Groups File Lawsuit to Challenge EPA’s “Vague” New WOTUS Definition

“It’s a mystery as to why the USDA began to hide the names of many recipients,” said Scott Faber, senior vice president for government affairs for the Environmental Working Group (EWG).

How it Works

EWG files a Freedom of Information Request every year to obtain information about who receives farm subsidies, where the recipients live and how much they get. That information then goes into a public database that dates back to 1995. The most recent version, containing data from 2020 and 2021, was released Wednesday.

Read more: Vilsack Focuses on Farm Bill Possibilities with National Sustainable Ag Coalition

Faber said USDA told them the changes occurred because of a software update to its reporting system in 2019, during the Trump administration.

USDA has denied the nonprofit’s appeals requesting the names of the obscured individuals.

Speaker McCarthy Selects Unruly House Rules Panel

Tue, 24 Jan 2023 20:17:01 GMT

House Speaker Kevin McCarthy (R-Calif.) issued the new GOP roster for the House Rules Committee Monday, and he made good on his pledges to give his conference’s hard right three positions on the powerful panel, which decides along with the speaker the bills going to the floor and the scope of amendments and debate.

He named Reps. Thomas Massie (R-Ky.), Ralph Norman (R-S.C.) and Chip Roy (R-Texas) to the panel. All have track records of holding up major spending legislation, emergency disaster aid and forcing votes on divisive amendments against the wishes of GOP leadership.

Key for the Ag Sector

Norman in the past unsuccessfully pushed crop insurance amendments that would have cut premium incentives/subsidies by 15% for producers with specified adjusted gross incomes. Another amendment, co-sponsored by Norman, would have effectively muted the harvest price option.

Bottom Line

If Norman, Massie and Roy are in agreement, they can functionally block legislation, even bills McCarthy supports, from getting to the floor — unless McCarthy and his allies can garner Democratic votes on the legislation. But the minority usually votes no on the 9-4 split panel.

Farm Share of the U.S. Food Dollar Hit a Record Low; What Does this Mean for Producers?

Fri, 02 Dec 2022 14:14:10 GMT

The farm share of the U.S. food dollar has been tracked since 1993. The 2021 data provided by the USDA on Monday shows U.S. farm share hit an all-time low.

USDA found that out of every food dollar spent, the farmer receives 14.5¢. This is down from 2020’s 15.5¢.

Seth Meyer, USDA’s chief economist, says the decrease in return doesn’t necessarily mean a producer is making less in a given year.

“If the farm share’s slice of the product pie is growing, while the pie as a whole is growing, the farm is better off in the long run,” he says.

However, Meyer says there are “bits and pieces” of the piece that eat up both food and farm shares even when overall prices go up. Some of these include:
• How much consumers are eating out
• Commodity prices
• Wholesale trade prices
• Transportation and freight costs

The Year Ahead

According to Meyer, eating out attributed most to the farm share decrease this year, but there may be next year.

Looking to 2022’s farm share predictions, Meyer thinks the trend of food away from home will slow, along with the disruptions from supply chains. However, other political and biological factors such as the war in Ukraine and avian influenza could put the coming year in jeopardy.

Do You Know Your Value-Added Opportunities?

To make the most of the farm share, Meyer suggests producers look at every angle of value-added that’s at their disposal. He offers an example:

“In cattle, you have to consider if there are some value-added aspects beyond simply sending your calf to the feedlot or finished cattle to the slaughter plant,” he says. “Are there some elements that you can try and grab above that from a marketing standpoint? Or do you focus on just being a great cattle producer that makes efficient gains?”

Meyers says many opportunities in both incentives and consumer preferences often go untapped as well. He challenges producers to weigh the options.

“If consumers want that [climate-smart option] and are willing to pay, is USDA’s Climate Smart Commodities program an opportunity to make your operation better off when it comes to the share of the food dollar? You have to ask yourself these questions,” Meyer says.

More from USDA :

How USDA’s $2.8 Billion Climate-Smart Investment Might Impact Your Operation
Know Someone Who Wants to Farm or Ranch, But They’re Not Sure Where to Start? New USDA Funds Could Help
$670 Million Awarded by USDA to Farm, Meatpacking and Grocery Workers for their ‘Essential Role’ in U.S. Food Systems During Pandemic

USDA Announces Phase 2 of ERP Along With New Aid Opportunities

Thu, 17 Nov 2022 15:05:21 GMT

USDA announced the launch of Phase 2 of its Emergency Relief Program (ERP) with Phase 1 paying out $7.15 billion to eligible producers.

Who Qualifies for ERP Phase 2?

Phase 2 is targeted to those who suffered losses in 2020 and 2021 but may not have received any payments under Phase 1 for losses in allowable gross revenue for traditionally insurable crops and specialty crops intended to be commercially marketed.

The payments will be based on the difference in farm revenue between a typical year and the disaster year and are to avoid windfall or duplicate payments.

USDA said that the signup deadline for Phase 1 ERP, which was previously extended indefinitely, will now be set to Dec. 16.

Can You Defer ERP Payments?

As you’ll recall from Paul Neiffer’s article , only certain ERP payments can be deferred.

According to Neiffer, if the payment relates directly to damage occurred in 2021, then the payment can’t be deferred until 2023. But if the damage if really for the crop that was harvested in 2022 and damage was for drought during the growing period, then it should be able to be deferred.

As a reminder, here are the three requirements to defer crop insurance proceeds:

• Farmer is on the cash method of accounting (almost all are),
• Farmer normally reports more than 50% of total sales in the year after harvest (most do), and
• The farmer can only defer to the year after the damage was incurred

The last item is what blows up any ability to defer Phase 1 payments. These payments are for damage that occurred in 2020 and 2021. 2022 is the latest you could defer 2021 payments and since you collected them this year, you are stuck with reporting these payments in 2022.

More Payment Opportunities

USDA also mentioned the new Pandemic Assistance Revenue Program (PARP) will be available to help those with ag commodities that saw revenue declines in calendar 2020 compared with 2018 or 2019 due to the COVID-19 pandemic.

The agency said PARP is aimed at addressing “gaps in previous pandemic assistance which was targeted at price loss or lack of market access, rather than overall revenue.”

Under PARP, USDA says producers will use revenue information available from “most tax records,” and urged producers to have those documents available for the past few years along with supporting materials.

According to USDA, the documentation is similar to what producers had to provide for the Coronavirus Food Assistance Program 2 (CFAP 2) effort which allowed for 2018 or 2019 to be used as the benchmark year.

More on ag business:

Can You Defer 2022 ERP?
Paul Neiffer: When Can Inflation Help You?

Perdue: 3rd MFP Payment Coming Soon, No New MFP for 2020

Mon, 08 Nov 2021 20:59:48 GMT

With the phase one trade deal with China official, farmers are expecting more positive momentum in the markets. However, they shouldn’t expect an extension of the Market Facilitation Program (MFP) in the meantime, according to USDA Secretary Sonny Perdue.

“My expectation is that the president will direct when they fulfill that third tranche of the 2019 MFP payments,” Perdue said to AgDay Host Clinton Griffiths. “Now, I’ve told producers all along that they shouldn’t expect a 2020 MFP because they told us all along they’d rather have trade, not aid, and that’s what the president has delivered.”

For farmers, bankers and other stakeholders who’d bet on a 2020 payment, this might come as a surprise. With markets opening to China this week, and soon to Mexico and Canada, will the market respond fast enough?

“This takes effect in 30 days but the fact that China’s going to fulfill their $40 to $50 billion commitment they’ve got to begin very quickly,” Perdue says. “We’ll see demand among all sectors here, begin to build probably even in the next several days as we work out the technical permits and those kind of things that need to happen between economies in between traders.”

The deal with China makes way for $200 billion in total U.S. sales over the next two years, about $80 billion dedicated to agricultural products alone. In addition, USMCA passed in the Senate earlier this week and is just a couple steps away from being final.

“This is huge for American agriculture and our farmers and ranchers—essentially doubling the amount of products, U.S. products, that China has ever imported from our producers,” Perdue says.

Who’s the next big ag trade partner?

“Let me surprise you with this one,” Perdue says. “India… we’ve done frankly very little [with it] and we haven’t had the same trade relationships—there’s been a lot of barriers. I am hoping and I’m expecting that we can make some progress with India in agricultural products and trading relationships.”

The opportunity with India is massive and Perdue says he could see that trade relationship being as important as China over the next 20 years.

Check out more trade news:

Doubts Remain Over U.S.-China Phase One Trade Agreement

Phase 1 China Deal: What You Need To Know

Senate Overwhelmingly Passes USMCA

USDA To Begin Issuing Round Two of 2019 MFP Next Week

Thu, 04 Nov 2021 20:22:29 GMT

USDA Agriculture Secretary Sonny Perdue on Friday announced that the second tranche of 2019 Market Facilitation Program payments will begin being issued next week.

Producers of MFP-eligible commodities will now be eligible to receive 25% of the total payment expected, in addition to the 50% they have already received from the 2019 MFP, USDA said in a release.

“This second tranche of 2019 MFP payments, along with already provided disaster assistance, will give farmers, who have had a tough year due to unfair trade retaliation and natural disasters, much needed funds in time for Thanksgiving,” Perdue said. “President Trump has shown time and again that he is fighting for America’s farmers and ranchers. While we continue to have confidence in the President’s negotiations with China, this money shows President Trump following through on his promise to help and support farmers as he continues to fight for fair market access.”

RELATED CONTENT:

Farmer on Farm Income: “I Can’t Pay Bank Back With Hopes And Prayers”

BREAKING: Second Installment of China Trade Aid Authorized

Lawmakers Disagree on MFP, Peterson Calls It Unfair

Labor Shortage? Data Shows Added Unemployment Payments are Crippling Employers' Ability to Find Workers

Tue, 11 May 2021 16:15:45 GMT

Restaurants closing early. Sign after sign plastered along roadsides with businesses looking for help. The hiring issue is evident in many regions of the country, crippling everything from manufacturing to the restaurant industry.

“In talking with my guys that do the welding for us in ordering to steel, they said it all goes back to the steel mills,” says Nic Beck of Carks Ag Supply based in Nebraska, a company that produces seed tenders. “It’s not a shortage of iron ore. It’s not a recycled steel shortage. It comes down to labor.”

And in the Pacific Northwest, farmer Shay Myers is also dealing with a labor shortage. He pushed out a TikTok video that went viral after he pointed out 350 pounds of asparagus that was on the verge of going to waste.

“We can’t get the labor,” he said on the video. “We can’t get people to show up and do the work for $16 an hour, with housing, transportation and all of those things. What we usually do is bring people in on a H2A visa, but the border is so screwed up, that we can’t get people across. So, they are telling us it’s 30 to 45 days before we have laborers in this field to pick this crop.”

While Myers points to the border being the issue for him, the lack of available workers in the U.S. is creating bottlenecks, and it’s driven in part by a shortage of truck drivers.

The California Farm Bureau says during carrot and onion harvests in South California, they are seeing up to 30% fewer drivers than before the pandemic.

“In order to alleviate some of the shortage, we need to get President Biden to enact the Stafford Act, as Donald Trump did last year,” says Joe Antonini, president of Antonini Enterprises. “This would allow the weights of the loads to go from 80,000 pounds maximum to 88,000 pounds, a 10% weight tolerance. Given that, there would be some relief on the amount of drivers needed to bring in the harvest.”

The Labor Debate

Purdue University’s Jayson Lusk says there’s not necessarily a shortage of workers in the U.S.

“It’s a little perplexing,” says Lusk. “You mentioned the word ‘shortage.’ If you actually looked at data on employment, there’s actually a lot fewer workers in the restaurant industry, and a little bit fewer workers in food manufacturing and in grocery retail. So that would seem to suggest, well, we don’t really have a shortage.”

The Bureau of Labor Statistics data shows wages and earnings have increased significantly, especially in the grocery and retail food sectors.

“Wages are getting pulled up, so you would think that would pull in more workers into those sectors. But we’re not really seeing that at the moment. That’s really where this perception of a shortage comes from,” Lusk says.

According to AP on Tuesday, U.S. employers posted a record number of available jobs in March, illustrating starkly the rush of businesses seeking to find new workers as the economy expands. Yet total job gains increased only modestly, according to a Labor Department report issued Tuesday.

JUST IN: WASHINGTON (AP) - U.S. employers posted a record number of available jobs in March. Job openings rose nearly 8%, to 8.1 million in March, the most on records dating back to December 2000.
— AgDay TV (@AgDayTV) May 11, 2021

The data comes after the April jobs report last week that fell far short of economist expectations, largely because companies appear unable to find the workers they need. Data that shows it’s not a shortage of workers, it’s a shortage of people willing to work.

“That the natural question: why? Why are people showing back up at work? And I think there are several possible explanations,” he says.

In the latest Kansas City Federal Reserve Manufacturing Report , one manufacturer said, “Stimulus and increased unemployment money are wrecking the labor pool. Lower-level employees are quitting to make just as much not working.”

By the Numbers

The issue is also heating up in Washington, D.C. The Labor Department report on Friday showed 266,000 new jobs were created in April, which was much smaller than the 1 million expected by a Reuters poll. The report also showed a drop in temporary help positions.

Today, someone with a $15-per-hour job, working 40-hour weeks, would bring home $600 a week. However, in Kentucky, the maximum unemployment pay is $569 per week, plus the extra $300 per week passed in the Biden Administration’s American Rescue plan. In Kansas, those who were getting $488 for unemployment before, are now getting $788 with the added federal benefit. The numbers show instead of getting paid to work, some Americans can make more money by simply not working at all.

“I haven’t seen empirical estimates of the effect, but it has to be having some effect,” says Lusk. “If people can stay at home and make something similar to what they might at work, that’s going to keep people out of the workforce.

The extra $300 per week federal unemployment benefit was extended through the beginning of September as some states are now taking the matter in their own hands. Just last week, Montana’s governor announced the state will end its participation in the federal unemployment program, which means unemployed workers will no longer receive the extra $300 per week. Instead, Montana’s governor says the state will launch a new program to provide bonuses to unemployed workers who return to work.

The Biden administration held a press briefing on Friday and dismisses concerns that the added unemployment benefits are causing hiring issues across the U.S.

“It’s clear there are people who are not ready and able to go back into the labor force,” U.S. Treasury Secretary Janet Yellen said.

The True Cost of Fewer Workers

And as food service employers offer sign-on bonuses or pay more to find people to fill those jobs, basic economics show there’s no such thing as a free lunch as those added costs will get passed on through the menu.

“It gets pushed in both directions,” adds Lusk. “It has a depressing effect on commodity prices, despite the highs we’re seeing at the moment, but also is going to result in higher retail food prices. That extra cost in the system is going to ultimately be born - at least in part - by the food consumer.

The labor debacle is coming at a time when commodity prices are also racing higher.

“We are starting to see those higher farm commodity prices show up in higher retail food prices,” says Lusk. “If you just look at the year-over-year change, it doesn’t look crazy, it doesn’t look outside the norms. But I think the cumulative effect is really starting to appear in the data. And really, over the course of the last year, we’re seeing retail food prices starting to tick up quite a bit.”

As corn prices gained $1 in just two weeks, the rise in commodities may not be over yet, as the debate over inflation also heats up.

“At the moment, it looks like those high commodity prices may be with us,” says Lusk. “I think we’ll probably continue to see that in our food prices and our meat prices.”

Just last week, wholesale choice beef prices reached prices not seen since the early weeks of the pandemic. With added expenses and labor challenges for those trying to serve customers, it’s making for an expensive and challenging return to normal.