By Ryan Hanrahan
RFD-TV’s Tony St. James and Marion Kirkpatrick reported that “the U.S. Department of Agriculture (USDA) has already sent nearly $9.6 billion in Farmer Bridge Assistance payments as crop producers continue to face weak prices and high costs. According to the American Farm Bureau Federation (AFBF), many farms are still operating at a loss or near break-even, even with federal help in place.”
“Almost 500,000 applications have been approved, and corn received the largest share at about $3.45 billion, followed by soybeans at $2.27 billion. Wheat, cotton, and rice also accounted for major shares of the federal aid,” St. James and Kirkpatrick reported. “The support is helping cash flow, but it is not covering the full downturn. The report said all nine principal row crops are still expected to post negative returns, even after accounting for federal assistance.”
“Iowa producers have received the most assistance so far ($843 million), followed by Texas ($784 million) and Illinois ($765 million), which reflects where the majority of eligible row-crop acres are located,” St. James and Kirkpatrick reported. “The report adds that more pressure could still build across the agricultural sector. Specialty crop and sugar payment details are still being finalized, and rising fertilizer and fuel costs may keep the need for added support on the table.”
The Farm Bureau’s Faith Parum and Cameron Castillo reported that “given the historic economic losses facing the American agriculture sector, the FBA was designed to serve as an economic bridge for farmers ahead of the Agriculture Risk Coverage and Price Loss Coverage enhancements enacted in the One Big Beautiful Bill Act, which take effect later this year.”
USDA Also Boosting 2023 and 2024 Natural Disaster Payments
Progressive Farmer’s Chris Clayton reported that “farmers hit with natural disasters in 2023 and 2024 who filed claims under the Supplemental Disaster Relief Program (SDRP) will receive a second ‘top-up’ payment starting next week, Agriculture Secretary Brooke Rollins announced (this past) Friday.”
“USDA announced farmers will receive a second payment under the SDRP that will essentially double the aid they receive under the program. USDA has paid $6.7 billion so far under the SDRP,” Clayton reported. “SDRP payments initially had a 35% payment factor, meaning producers saw payments equaling 35% of the allowable economic loss reported. After further analysis, Rollins said USDA is increasing the payment factor to 70%.”
Source : illinois.edu