Monday, January 16, 2023

Government Payments To Farmers 2021

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Farm Sector Income Forecast

Union Budget 2021 | “Government Committed To Welfare Of Farmers”: Nirmala Sitharaman

Suggested citation for linking to this discussion:

U.S. Department of Agriculture, Economic Research Service. Farm Sector Income & Finances: Farm Sector Income Forecast, December 1, 2022.

Net farm income, a broad measure of profits, is forecast to increase by $19.5 billion from 2021 to $160.5 billion in calendar year 2022. This expected increase follows an increase of $46.6 billion in 2021 from 2020. Net cash farm income is forecast to increase by $39.4 billion to $187.9 billion in 2022, after an increase of $31.7 billion in 2021. In inflation-adjusted dollars, 2022 net farm income is forecast to increase by $10.7 billion net cash farm income is forecast to increase by $30.1 billion compared with the previous year. If realized, net farm income would be at its highest level since 1973 and net cash farm income at its highest level on record .

Note: In the text below, year-to-year changes in the major aggregate components of farm income are discussed only in nominal dollars unless the direction of the change is reversed when looking at the component in inflation-adjusted dollars.

Farmers & Rural Communities

This page will be updated as more information becomes available

Congress has passed several rounds of financial assistance and relief in response to the COVID-19 pandemic, including most recently the American Rescue Plan Act of 2021, which was signed into law on March 11, 2021.

The American Rescue Plan Act of 2021 provides needed relief to our farmers, including:

  • $4 billion to address major pandemic-related disruptions throughout the food supply chain invest in new infrastructure for farmers, food processors, and farmers markets to build resiliency monitor COVID-19 in animals support small meat and poultry processors protect food and farm workers on the job and increase food donations.
  • More than $5 billion in debt relief and assistance for farmers of color who have faced widespread and longstanding discrimination and have seen disproportionate impacts from the pandemic.

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Usda To Begin Payments For Producers Impacted By 2018 And 2019 Natural Disasters

WASHINGTON, June 11, 2021 More than $1 billion in payments will be released over the next several weeks starting June 15 for agricultural producers with approved applications for the Quality Loss Adjustment Program and for producers who have already received payments through the Wildfire and Hurricane Indemnity Program Plus . These U.S. Department of Agriculture programs provide disaster assistance to producers who suffered losses to 2018 and 2019 natural disasters.

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The American Rescue Plan Act Of : Farm Loan Assistance

The American Rescue Plan Act of 2021 gives the USDA authority to provide farm loan assistance by making payments of up to 120% of outstanding agricultural loans as of January 1, 2021, to help farmers and ranchers from socially disadvantaged groups.

Details on these new programs have yet to be determined, but this webpage will be updated as the USDA implements this authority. Please also check the USDAs website on COVID relief for updates. In addition, the USDAs Farm Service Administration is expected to continue playing a central role in providing service to agricultural producers. Local FSA agents and offices can be found here.

Secretary Perdue Announces New Dairy Margin Coverage Signup Begins June 17

PM Kisan Yojana

WASHINGTON, June 14, 2019 U.S. Secretary of Agriculture Sonny Perdue today announces that signup begins June 17 for the new Dairy Margin Coverage program, the cornerstone program of the dairy safety net that helps dairy producers manage the volatility of milk and feed prices, operated by the U.S. Department of Agricultures Farm Service Agency .

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Wisconsin Farm Support Program

Under the direction of Governor Evers, the Wisconsin Farm Support Program provided three rounds of direct aid payments to farmers to help them respond to the challenges presented by COVID-19. In total, the program has provided $100 million to Wisconsin farmers who experienced economic losses associated with the pandemic.

The first round of the Farm Support Program ran from June 15-29, 2020 and nearly 12,000 farmers received a total of $41.6 million in direct payments.

The second round of the Wisconsin Farm Support Program distributed $8.4 million and closed on August 24, 2020.

The third round of the Farm Support Program closed on November 29, 2021 and distributed $50 million to more than 20,000 farmers. You can find a map of county-by-county distribution of each round of funding here. For more information, visit DOR’s Farm Support Program page.

Usda Extends Application Deadline For The Quality Loss Adjustment Program

WASHINGTON, March 5, 2021 The U.S. Department of Agriculture is extending the deadline from March 5 to April 9 for agricultural producers to apply for the Quality Loss Adjustment Program because of recent winter storms and some clarifications to program rules. This program assists producers who suffered crop quality losses due to qualifying 2018 and 2019 natural disasters.

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Heres Your Check: Trumps Massive Payouts To Farmers Will Be Hard To Pull Back

The president was already spending double his predecessor to spare farmers the cost of his trade war. Now the price is reaching unsustainable levels.

A farmer harvests corn near Burlington, Iowa. | Scott Olson/Getty Images

07/14/2020 04:30 AM EDT

Government payments to farmers have surged to historic levels under President Donald Trump as the Agriculture Department floods the industry with cash to stem the financial losses from Trumps tariff fights and the coronavirus pandemic.

But as agriculture grows more reliant on unprecedented taxpayer support, farm policy experts and watchdog groups warn the subsidies are growing too big and too fast, with no strings attached and little oversight from Congress and that Washington could have a difficult time shutting off the spigot.

Direct farm aid has climbed each year of Trumps presidency, from $11.5 billion in 2017 to more than $32 billion this year an all-time high, with potentially far more funding still to come in 2020, amounting to about two-thirds of the cost of the entire Department of Housing and Urban Development and more than the Agriculture Departments $24 billion discretionary budget, according to a POLITICO analysis. But lawmakers have taken a largely hands-off approach, letting the department decide who gets the money and how much.

POLITICO Dispatch: July 14

But under Trump, the trade bailout and coronavirus relief efforts have pushed farm spending to more than twice that level, with far more in the pipeline.

Usda Temporarily Suspends Debt Collections Foreclosures And Other Activities On Farm Loans For Several Thousand Distressed Borrowers Due To Coronavirus

Federal Government Approved A #10 Per Liter Tax On Non-Alcoholic, Carbonated Beverages

WASHINGTON, Jan. 26, 2021 â Due to the national public health emergency caused by coronavirus disease 2019 , the U.S. Department of Agriculture today announced the temporary suspension of past-due debt collections and foreclosures for distressed borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs administered by the Farm Service Agency . USDA will temporarily suspend non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice and USDA will work with the U.S. Attorneys Office to stop judicial foreclosures and evictions on accounts that were previously referred to the Department of Justice. Additionally, USDA has extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers.

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Introduction To Farm Payment Files

FSA maintains records on payments made to agricultural program participants in electronic form. In response to public interest in this data, FSA makes it available in two ways. It can be downloaded from this website in the form of flat files or it can be requested through the Freedom of Information Act .

Coronavirus And Usda Assistance For Farmers

USDA has developed a detailed, data-driven COVID workplace safety plan that prioritizes the health and safety of our staff and visitors.

In addition to delivering our typical programs and services to producers, USDA is also offering relief to producers through programs and flexibilities through the Pandemic Assistance for Producers initiative, a broad set of programs to help farmers, ranchers, and producers who felt the impact of COVID-19 market disruptions.

Additionally, for information on USDA-wide response to the COVID-19 pandemic, visit USDA’s coronavirus response page.

Many USDA Service Centers are open for visitors, but some may remain open by appointment only. Contact your local Service Center to determine their open status or make an appointment. Service Center staff continues to work with agricultural producers via phone, email, and other digital tools.

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Usda Launches New Conservation Pilot Program For Prairie Pothole Producers To Plant Perennial Cover

WASHINGTON, D.C., February 24, 2020 The U.S. Department of Agricultures Farm Service Agency today announced a new pilot program that enables farmers in the Prairie Pothole region to receive payments for planting perennial cover for conservation use for three to five years. The new Conservation Reserve Program Soil Health and Income Protection Program pilot is available to producers in Iowa, Minnesota, Montana, North Dakota and South Dakota. The signup for this pilot starts March 30, 2020 and ends August 21.

Federal Payments To Idaho Farmers Drop 41 Percent

USDA ERS

Idaho Farm Bureau Federation

BOISE Total federal government payments to Idaho farmers and ranchers dropped 41 percent in 2021 compared with 2020.

Government payments to U.S. farmers and ranchers increased substantially in 2020 due to the financial assistance provided to agricultural producers through USDAs Coronavirus Food Assistance Program.

That money was approved by Congress to assist farmers and ranchers that were impacted financially by the government-ordered shutdowns due to COVID-19.

Some of those payments carried over into the 2021 calendar year but for the most part, they decreased substantially last year compared with 2020. As a result, total federal government payments to ag producers around the nation decreased substantially last year.

CFAP payments to Idaho ag producers totaled $337 million in 2021, which was half of what they were the previous year.

Total federal government payments to Idaho farmers and ranchers in 2021 are estimated at $488 million, which is 41 percent lower than what they were in 2020.

Those estimates are provided in University of Idahos Financial Condition of Idaho Agriculture: 2021 report, which was released to state lawmakers Jan. 6.

The CFAP payments were an anomaly and in a typical year, Idaho farmers and ranchers get a very small percentage from 1 to 2 percent of their total farm income from federal government payments.

CFAP payments accounted for 69 percent of total federal government payments to Idaho ag producers in 2021.

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Usda Adds Digital Options For Farmers And Ranchers To Apply For Coronavirus Food Assistance Program

WASHINGTON, June 25, 2020 USDAs Farm Service Agency will now accept applications for the Coronavirus Food Assistance Program through an online portal, expanding the options available to producers to apply for this program, which helps offset price declines and additional marketing costs because of the coronavirus pandemic. FSA is also leveraging commercial document storage and e-signature solutions to enable producers to work with local service center staff to complete their applications from home.

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Usda And Dairy Farmers Work Together To Mitigate Risk For 2021

WASHINGTON, Jan. 18, 2021 In an unprecedented year, USDA staff and dairy producers across the country worked together to protect dairy operations for the 2021 production year under USDAs risk management program options the Dairy Margin Coverage , Dairy Revenue Protection , and Livestock Gross Margin for Dairy Cattle programs. Recent enrollment data for these programs indicate that dairy operations are proactively managing their risk.

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Global Food Prices And International Trade

Although some critics and proponents of the World Trade Organization have noted that export subsidies, by driving down the price of commodities, can provide cheap food for consumers in developing countries, low prices are harmful to farmers not receiving the subsidy. Because it is usually wealthy countries that can afford domestic subsidies, critics argue that they promote poverty in developing countries by artificially driving down world crop prices.

Generally, developing countries have a comparative advantage in producing agricultural goods, but low crop prices encourage developing countries to be dependent buyers of food from wealthy countries. So local farmers, instead of improving the agricultural and economic self-sufficiency of their home country, are forced out of the market and perhaps even off their land. This occurs as a result of a process known as “international dumping” in which subsidized farmers are able to “dump” low-cost agricultural goods on foreign markets at costs that un-subsidized farmers cannot compete with. Agricultural subsidies often are a common stumbling block in trade negotiations. In 2006, talks at the Doha round of WTO trade negotiations stalled because the US refused to cut subsidies to a level where other countries’ non-subsidized exports would have been competitive.

Others argue that a world market with farm subsidies and other results in higher food prices, rather than lower food prices, as compared to a free market.

Usda Extends Deadline To Apply For Pandemic Assistance To Livestock Producers With Animal Losses

AP Government Adjusted Employees Salaries || AP Government employees Departments |#NovemberSalaries

WASHINGTON, Sept. 16, 2021 The U.S. Department of Agriculture is providing additional time for livestock and poultry producers to apply for the Pandemic Livestock Indemnity Program . Producers who suffered losses during the pandemic due to insufficient access to processing may now apply for assistance for those losses and the cost of depopulation and disposal of the animals through Oct. 12, 2021, rather than the original deadline of Sept. 17, 2021. PLIP is part of USDAs Pandemic Assistance for Producers initiative.

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Usda Announces August 2021 Lending Rates For Agricultural Producers

WASHINGTON, August 2, 2021 The U.S. Department of Agriculture announced loan interest rates for August 2021, which are effective August 2. USDAs Farm Service Agency loans provide important access to capital to help agricultural producers start or expand their farming operation, purchase equipment and storage structures, or meet cash flow needs.

How Does Government Affect Agriculture

Government policy can definitely affect farming production. Subsidies, low-interest loan and guaranteed price can raise the quantity of farming output, i.e. the yield. With the increase of capital, quality of farming output can also be raised. For examples, the use of combine-harvestor can ensure the crop to be fresh.

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Commodity Container Assistance Program

Ongoing market disruptions have created logistical challenges associated with the availability and flow of containers to transport agricultural commodities, which has prevented or delayed American-grown agricultural commodities from reaching their markets. The Commodity Container Assistance Program currently includes a partnership with the Port of Oakland in California and the Northwest Seaport Alliance , which is a marine cargo operating partnership between the Port of Seattle and the Port of Tacoma in Washington State. The Farm Service Agency is providing per-container payments at eligible ports to help cover additional logistics costs and ensure that American-grown commodities can once again move efficiently through supply chains to global markets.

The Agricultural Marketing Service is covering a percentage of the start-up costs of the pop-up site in Oakland and Port of Houston. The Port of Houston is not eligible for CCAP payments through the Farm Service Agency.

Applications will be accepted based on the number of eligible shipping containers utilized between March 1, 2022, through December 31, 2022. Eligible applicants must submit the FSA-862, Commodity Container Assistance Program Application. Please refer to the CCAP application instructions. The Notice of Funding Availability provides additional eligibility information.

Refer to our CCAP frequently asked questions for more information.

Government Paying Farmers Not To Farm

Union Budget 2021 explained in 15 charts

American farm subsidies began in the 1930s, the Encyclopedia of the Great Plains says. In the first three years of the Great Depression, prices for farm products fell by half. Farmers were operating a loss, unable to make their mortgage payments and frequently facing foreclosure. Even though nobody could afford to buy, they kept bringing food, cotton and tobacco to market, driving prices down further.

The Agricultural Adjustment Act of 1933 was the federal solution, originally applied to wheat, corn, cotton, rice, tobacco, milk and hog farming. The federal goal was to keep farmers from overproducing, thereby shoring up prices. This is sometimes described as government paying farmers not to farm. Another solution, The Living New Deal said, was to buy up the surplus and distribute it to people who couldn’t afford market prices.

The economic demands of WWII put an end to the Depression, but farm-support programs continued. In recent decades, the government has stepped back from managing supply levels by paying farmers not to farm. Instead, the government leaves farmers more freedom to set their own prices in the global market. This has made prices more volatiles and generally lower. Subsidies to keep farm incomes up have become life support for many farmers.

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Is There Truth To Tiktoks Claiming Farmers Are Paid To Destroy Crops

Videos are going viral on TikTok claiming that farmers across the country are getting paid by the government to destroy their crops. If you havent seen any of the videos yet, heres one of the many out there.

Food shortage videos

Posted by Scott Stephenson on Tuesday, August 17, 2021

The first lesson to learn about social media is that you shouldnt believe everything you see. Agriculture Director Steve Wellman says the rumors of farmers getting paid to destroy crops are not true. No, the Nebraska Department of Agriculture is not paying farmers to take out their corn, or any other crops and neither is the United States Department of Agriculture.

Wellman added that hes confused as to why people would post videos on TikTok with false claims about the government, especially claiming theyre hurting farmers. Theres little to zero amount of truth in any of what Ive seen. So, I dont know why the information would be put out in that manner. I think its just a good reminder for us to not always believe what we see on social media, and farmers and ranchers have been working hard to build trusting relationships with consumers for quite some time and then videos of this type that contain scare tactics and false information are really counter to building that consumer competence and trust, he said. So, in the end, its not productive for agriculture and its surely not productive for the consumers.

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