Both Secretary of Agriculture Brooke Rollins and Deputy Secretary Stephen Vaden said recently that tariff revenue could be a way to help U.S. farmers survive a tough ag economy.
Vaden says using Section 32 funds for ad-hoc payments would require an act of Congress. For more than a decade, annual appropriations haven’t allowed Section 32 funds to be used for emergency direct payments to farmers.
“If it’s Congress’ desire, in order to move in that direction, we will certainly work with them to get them the assistance they need to make it a reality.”
He says there’s not enough money in the Commodity Credit Corporation (CCC) in the current fiscal year to provide emergency relief, like there was in previous years.
“A large amount of the monies in the CCC are already spoken for in this fiscal year. The CCC may not be the best vehicle at this time…it’s capped at $30 billion. Once you hit that cap, there’s no more money in the spigot until the following year.”
Vaden says the USDA understands farmers are having a tough time with low commodity prices and high input costs.
“Farmers are really taking it from both sides of the balance sheet. Secretary Rollins and I are trying to work on both sides of those equations. I think the input side is as equally important as the revenue side, because both come out of the pockets of farmers.”
EDITOR’S TAKE:
Record production of commodities like corn and soybeans, China’s refusal to purchase those products and depressed prices have led USDA to seriously consider the actions outlined in this article. While the funding sources may differ slightly, the idea of government emergency payments to farmers/ranchers is not new. In fact, during the first Trump Administration, such payments helped boost farm income to near record levels while the U.S. and China worked out the first trade agreement between the two powerhouse nations.
Personally, I look for such payments to become a reality prior to the second quarter of 2026, perhaps sooner. The idea will be for this money to help reduce any financial stress and help fund next year’s input purchases. You can also help reduce input costs for farmers/ranchers when they lease or purchase that qualified truck or SUV. How? It’s called AgPack®. AgPack® offers up to nearly $50,000 in exclusive rebates and discounts for products many farmers and ranchers already use. And did you know, they have up to a year from time of purchase to use AgPack® - in some cases up to two years. Help them out and help yourself by promoting this very special perk that you have to offer.
