USDA to give $16 billion in direct farmer payments, buy $3 billion in farm products for food banks - Entrepreneur Generations

"President Donald Trump on Friday announced a $19 billion economic rescue package for farmers and ranchers that will include sending out cash payments as well as buying farm products and redistributing them to food banks," Ryan McCrimmon reports for Politico. "The stimulus plan is the latest in a long string of recent ad hoc relief efforts for the agricultural economy. Trump has pulled out the stops to bail out farmers and ranchers stung by his own trade war and biofuel policies, in addition to long-term economic headwinds."

At the same press conference, Agriculture Secretary Sonny Perdue said that farmers will receive $16 billion in direct aid and that the U.S. Department of Agriculture will spend the other $3 billion buying surplus food to give to food banks and other organizations. "USDA is financing the payments through a combination of the new spending authority from Congress included in the stimulus package and existing funds. Trump said an additional $14 billion in aid would be available in July," McCrimmon reports.

Sen Agriculture Appropriations Committee chair John Hoeven, R-N.D., issued a statement after the press conference with more details on how the $16 billion will be divided up. The livestock industry will receive $9.6 billion, subdivided into $5.1 billion for cattle, $2.9 billion for dairy, and $1.6 billion for hogs. Row crop producers will receive $3.9 billion, specialty crop producers will receive $2.1 billion, and other crops will receive $500 million. 

Producers will receive the direct aid in a single payment, up to $125,000 per commodity and with an overall limit of $250,000 per individual or entity. The amount is calculated by two factors: they'll be compensated for 85 percent of price losses that occurred from Jan. 1 to April 15, and 30% of projected losses from April 15 through the next two quarters, according to Hoeven's statement. To receive payment, the price losses from January through April must be at least 5%. Producers can sign up for the new program in early May, and the USDA hopes to start sending out checks in late May or early June.

from The Rural Blog https://ift.tt/2wY4IJg USDA to give $16 billion in direct farmer payments, buy $3 billion in farm products for food banks - Entrepreneur Generations

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