Progressive Farmer
Lawmakers, Farm Groups Praise Release of Economic Aid
By Chris Clayton, DTN Ag Policy Editor @ChrisClaytonDTN
Lawmakers and farm groups offered their praise Tuesday for USDA announcing the signup for the Emergency Commodity Assistance Program (ECAP) while also noting their desire to get a farm bill done this year.
Based on the per-acre payment details released Tuesday by USDA on ECAP, a lot of the early estimates of payments overall were in the ballpark.
Looking at the overall projection of payments, John Newton at Terrain Ag -- and a former economist for the U.S. Senate Agriculture Committee -- had pegged corn would take up 39% of payments, soybeans 26%, wheat at 16% and cotton at 10% of payments. Those four crops combined amount to roughly $8.9 billion in payments.
Sen. John Boozman, R-Ark., chairman of the Senate Agriculture Committee, said, "Congress approved this critical funding to provide a bridge to help ensure hardworking American farm families can continue operations this season while we craft an updated farm bill. The current safety net fails to serve as an effective risk management tool that farmers, ranchers and producers can rely on, so it's vital that USDA expeditiously distributes these funds that will help them continue to feed, fuel and clothe the world in the interim. I am grateful for the swift implementation by Secretary Rollins and look forward to continuing to work with her to support the needs of our farmers."
Rep. Glenn "GT" Thompson, R-Pa., chairman of the House Agriculture Committee, said, "Grappling with rising input costs, declining commodity prices, record debt levels, and a lingering agricultural trade deficit, America's farmers and ranchers are teetering on the edge of a financial cliff. That's exactly why I fought to ensure this assistance was included in last year's continuing resolution.
"I commend the Trump Administration for moving swiftly to stand up this vital program and provide much-needed relief to farm country. Secretary Rollins and the team at USDA deserve credit for cutting through red tape and prioritizing farm families facing financial uncertainty.
"While this relief is a crucial financial bridge for many, it is no substitute for the enactment of a strong, five-year farm bill that delivers risk management tools our farmers can rely upon for the long run. I look forward to delivering on this promise in partnership with congressional colleagues and the Trump Administration."
Rep. Angie Craig, D-Minn., ranking member of the House Agriculture Committee, said, "I am proud to have helped secure $10 billion for our farmers, who have been dealing with tough economic conditions, and I congratulate the Agriculture Department for meeting Congress' deadline for rolling the program out. I hope that producers start to feel the benefit of the ECAP program soon. But to truly help meet the needs of farm country, we need to pass a bipartisan farm bill. Farmers need access to markets, reliable program funding, trade opportunities and the power of American research and innovation. Ad hoc assistance is appreciated but does not provide the long-term certainty and support of a bipartisan farm bill. We need to ensure a partisan reconciliation process does not cut the legs out from under the farm bill."
Senate Agriculture Appropriations Subcommittee Chairman John Hoeven, R-N.D., said, "This $10 billion in assistance is an important step to help producers recover from the challenging markets, and comes as part of our commitment to keep our farmers and ranchers in the game, whether they face natural disasters, challenging markets or trade disputes. We worked to ensure a streamlined process to provide producers with certainty and timely access to assistance. Pre-filled applications will be going out shortly, and Secretary Rollins has committed to getting the funds distributed as quickly as possible, with payments to start going out by March 21."
Sen. Cindy Hyde-Smith, R-Miss., said, "President Trump and Secretary Rollins clearly understand the very real financial challenges faced by American producers over the past two years and the fact that high input costs and low prices are likely to persist in the 2025 crop year. They deserve praise for swiftly launching this aid program to ensure that support reaches farmers as quickly as possible," said Hyde-Smith, who serves on the Senate Agriculture Appropriations Subcommittee and Senate Agriculture Committee.
"I strongly encourage Mississippi producers to apply for this funding, which I worked very hard to secure to help keep them afloat to continue on in the dire absence of a new farm bill," the Senator added. "Now, more than ever, we need to ensure that American farmers and ranchers have the stability provided by a multi-year farm bill that strengthens the farm safety net beyond the provisions of the 2018 bill."
Illinois farmer and Kenneth Hartman Jr., president of the National Corn Growers Association, said, "USDA has made implementation of economic assistance a priority," said Illinois farmer and National Corn Growers Association President Kenneth Hartman Jr. "We appreciate that the process should be straightforward for corn growers to apply and receive assistance."
Zippy Duvall, president of the American Farm Bureau Federation, said the aid will help farmers dealing with low commodity prices while also grappling with inflation, higher interest rates and higher supply costs.
"Farmers are committed to growing the food America's families rely on. This emergency assistance is critical in helping farm families navigate an agricultural economy under severe strain, ensuring they can continue to make ends meet until market conditions improve," Duvall said.
Chandler Goule, CEO of the National Association of Wheat Growers, also thanked Rollins and USDA for working quickly to get the relief out.
"As we celebrate National Agriculture Day today, the timeliness in the program delivery is crucial as America's farmers continue to face dire economic challenges," Goule said. "NAWG is proud to have worked with key stakeholders and Congress last to ensure this critical assistance was included in last year's continuing resolution. While this ad hoc assistance is much needed, the short-term relief cannot replace a robust long-term farm bill. NAWG continues to urge lawmakers to work quickly to pass a farm bill that strengthens the farm safety net in the 119th Congress."
It should be noted that the $10 billion in economic aid for commodity producers is being issued less than two weeks after USDA eliminated $1 billion in funding to help markets for local food producers. Those farmers who lost support under the Local Foods Purchase Assistance Program and Local Foods for Schools would say they are also dealing with inflation, higher interest rates and higher input costs. The Iowa Food System Coalition on Tuesday shared an open letter to Rollins from two farms that lost their markets. Farmers noted the cancellation of the programs have now left them with stranded costs as well.