USDA Budget Ends Direct Payments

Apr 16, 2013

USDA to expect 5.9% Decrease in Upcoming 2014 Fiscal Year

The U.S. Department of Agriculture (USDA) is to expect a 5.9% decrease in its budget for the upcoming 2014 fiscal year. The White House plans to eliminate direct payments, cut crop insurance subsides and better target conservation funding. The Obama administration says that with crop and livestock production at all-time highs and that income support payments based on levels of production can no longer be justified. The crafting of the new Farm Bill is expected to begin this month in collaboration with the House and Senate and Agriculture committees. Currently, the bulk of the USDA budget is allocated for the Supplemental Nutrition Assistance Program, or food stamps which are pegged to cost $80 billion in the 2014 budget year.

Video: Did Bears Win Thanksgiving, Will Bulls Get Christmas?

Did the bears win Thanksgiving (although this week had green on the screen), and will the bulls get Christmas? Bears won thanksgiving thanks to a USDA Nov crop report dud that stalled the bullish grain momentum for a brief period. But a bullish lower yield surprise in the Dec crop report could reignite the rally.
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