The Hagstrom Report
USDA: Farmers can apply Wednesday for economic disaster aid
By JERRY HAGSTROM
Agriculture Department officials told reporters today that farmers can begin applying Wednesday for the $10 billion in economic disaster aid that Congress passed as part of an end-of-the-year funding package in December.
The Trump administration has named the program the Emergency Commodity Assistance Program (ECAP).
In an online briefing, Brooke Appleton, deputy undersecretary for farm production and conservation, said that farmers who reported acreage to their local Farm Service Agency offices will be sent a pre-filled application, but that farmers who don’t want to wait to receive that application through the mail can apply immediately.
Farmers can expect to receive payments in their bank accounts three days after USDA receives the application, Appleton said.
Congress gave the Agriculture Department until March 20 to start the program.
Appleton said the Trump administration has been focused on meeting this deadline during the first 50 days of the administration.
She also noted, “We are announcing the details on National Ag Day. The local FSA office is there to help.”
Agriculture Secretary Brooke Rollins added in a statement, “Producers are facing higher costs and market uncertainty, and the Trump administration is ensuring they get the support they need without delay. With clear direction from Congress, USDA has prioritized streamlining the process and accelerating these payments ahead of schedule, ensuring farmers have the resources necessary to manage rising expenses and secure financing for next season.”
USDA will use a formula of calculating a flat rate multiplied by the acreage. For acres reported as prevented planting, ECAP will be limited to 50% of reported acres.
There is a calculator on the Farm Service Agency website that farmers can use to figure out the program, Appleton said. Benefit details for each commodity may be found on the website. (See link.)
Signup will continue through August 15.
Farmers initially will receive only 85% of the total payment to make sure that total payments do not exceed the available $10 billion, Appleton added. If additional funds remain, FSA may issue a second payment, she said.
Farmers initially will receive only 85% of the total payment to make sure that total payments do not exceed the available $10 billion, Appleton added. If additional funds remain, FSA may issue a second payment, she said.
Steve Peterson, a civil servant who is the associate administrator of the Farm Service Agency and a senior adviser to the Trump political appointees at USDA, said that “Congress really laid out how we were to calculate” the formula. USDA will compare the estimated cost of production minus the return that farmers got according to a data set on cost that Congress prescribed and the World Agricultural Supply and Demand Estimates (WASDE) prices for 2025.
If a farmer subtracts the return from the cost of production and the number is positive, the farmer will get a payment, Peterson said. The payment will amount to 26% of the loss, he added, but there is an additional calculation based on the Price Loss Coverage formula, and USDA will make a payment on the higher result of the two formulas, he said.
Appleton said that details on the $20 billion natural disaster program for 2023 and 2024 should be “coming soon.” She noted that the program includes $2 billion for livestock, a separate flood program, block grants and a lump sum for other disasters.
Sen. Cindy Hyde-Smith, R-Miss., praised the Trump administration for completing the program details on time and urged Mississippi farmers to sign up.
“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,” Hyde-Smith 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.”
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.”
Senate Agriculture Committee Chairman John Boozman, R-Ark., 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.”
House Agriculture Committee Chairman Glenn “GT” Thompson, R-Pa., praised the Trump administration for “moving swiftly” on delivering the aid, and 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.
“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 on 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.”