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USDA Issues Payments in Response to 2015 Markets

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On Tuesday, the U. S. Department of Agriculture announced payments to farmers enrolled in safety-net programs due to market downturns during the 2015 crop year. USDA says many of the 1.7 million farms enrolled in either the Agriculture Risk Coverage or Price Loss Coverage programs will receive payments. USDA will issue more than $7 billion in payments, which USDA says is more than 10 percent of the projected 2016 net farm income. Agriculture Secretary Tom Vilsack says the payments will “provide reassurance” to farmers “who are standing strong against low commodity prices.”

Unlike the old direct payment program, which issued payments during both weak and strong market conditions, the 2014 Farm Bill authorized the ARC-PLC safety net to trigger and provide financial assistance only when decreases in revenues or crop prices, respectively, occur.

Source: NAFB News Service