USDA Economic Aid Applications Expected by Friday

By Ryan Hanrahan

Politico’s Grace Yarrow reported Monday that “the Agriculture Department is expected to open applications for economic aid to farmers by the deadline of Friday.”

“USDA chief Brooke Rollins promised farmers at the Commodity Classic at the beginning of March that the funds would be ready by that deadline. Senate Ag Chair John Boozman (R-Ark.) told (Politico’s Morning Agriculture) on Friday he’s spoken with Rollins and expects the funds to start flowing on time,” Yarrow reported. “Sen. John Hoeven (R-N.D.) confirmed USDA is ‘very close’ and said last week that farmers can expect an announcement of open applications soon.”

Harvest Public Media’s Jess Savage reported that “when Rollins spoke in Colorado on March 2, she assured farmers that she has a plan in place to distribute the relief as soon as possible.”

“‘Our approach is guided by three principles,’ she said ‘We want the process to be simple, transparent and fast,'” Savage reported. “Rollins said the department is on track to start applications on or before March 20, according to a USDA press release. Ben Brown, a senior agriculture research associate at the University of Missouri, said that some farmers are counting on the financial aid to prepare for this season and next year.”

What Payments are Expected in the Economic Assistance

Terrain’s John Newton reported in January that “corn, soybean and wheat producers combined are expected to receive nearly $7.9 billion, or more than 80% of the economic support provided by Congress. Producers of other major crops such as cotton, sorghum, rice and peanuts are expected to receive nearly 16% of the support at $1.6 billion.”

“For major program crops such as corn, soybeans, wheat, sorghum, oats and cotton, the estimated economic assistance payments offset a portion (26% on average nationally) of the farm’s negative margins — defined as the difference between the USDA’s estimated cost of production and the estimated revenue,” Newton reported. “These economic assistance payments could range from a high of $87/ac. for cotton to a low of $29/ac. for soybeans.”

On a state level, Newton reported that “with more than 18 million acres eligible for economic assistance payments and a third of those acres eligible for the largest per acre payment, Texas is projected to receive the most support at $967 million. Following Texas, corn belt states such as Iowa and Illinois and Plains states such as Kansas, Nebraska and the Dakotas are all projected to receive more than $500 million each — with Iowa being the second highest nationally at $846 million, followed by Illinois at $791 million.”

Producers Also Waiting on More Than $20 Billion in Disaster Aid

Yarrow reported that “lawmakers haven’t gotten clarity on timing for another $21 billion in disaster aid to help farmers recover from last year’s hurricanes, floods, droughts and more.”

Pro Farmer Editors reported on March 11 that “a bipartisan group of senators urged USDA Secretary Brooke Rollins on Monday to speed up the distribution of $20 billion in disaster relief for farmers recovering from last year’s hurricanes in the Southeast.”

“‘Producers from vulnerable agriculture communities that were hit hard by these recent natural disasters are at risk of greatly downsizing or having to shut down their operations if the agricultural disaster relief funding is not fully accessible in the upcoming months,’ the letter reads,” according to Pro Farmer. “‘Clear direction and quick action from the USDA on disaster payment structure would provide certainty and, in many cases, a lifeline for farmers to continue their operations.'”