The Trump administration is moving forward with distributing commodity program payments due to farmers this month and also plans to “resume Farm Service Agency core operations,” Agriculture Secretary Brooke Rollins recently announced.
The payments have been held up by the partial government shutdown, which has largely closed FSA field offices and operations.
The payments under the Agriculture Risk Coverage and Price Loss Coverage are for farmers signed up for the programs in 2024. ARC and PLC payments are made in the October of the following year.
About $1.9 billion in ARC payments and $589 million in PLC payments were expected to be made this year, according to The University of Missouri’s Food and Agricultural Policy Research Institute.
ARC payments are triggered when county revenue falls below the average for the previous five years. PLC payments are made when the average market price for a commodity is below its reference price.
“President Trump will not let the radical left Democrat shutdown impact critical USDA services while harvest is underway across the country. USDA will resume Farm Service Agency core operations, including critical services for farm loan processing, ARC/PLC payments, and other programs,” Rollins said in a post on X.
Rollins didn't provide any more details in her post. She said Trump “is standing up for our farmers while Democrats obstruct. Special thanks to our great USDA employees who continue to work without pay to serve our farmers and ranchers.”
Rollins’ announcement comes as the administration is under fire for the impact of its trade war with China and Trump’s comments that he plans to reduce U.S. beef prices by having the commodity imported from Argentina.
Senator John Hoeven, R-ND, celebrated the announcement and that it would ensure farmer's receive much-needed support at a critical time of the year.
"It's harvest. Our guys need to be able to have access to those FSA folks," Hoeven said.
EDITOR’S TAKE:
Both programs mentioned in this article operate in many ways like an insurance program. They also function in lieu of the old-fashioned sporadic disaster payments. In either instance, the payments will help relieve some of the pressure being felt by crop farmers across the country. While this will not make the farmers whole from a financial standpoint, every dollar helps at this juncture.
Keep farmers on your customer prospect list. Some might not be in a position to purchase immediately, but by keeping your name in front of them, they will seek you out when the time comes and they’re ready to purchase or lease that new or qualified used vehicle. In the meantime, look for ways to keep them actively engaged with your dealership. Perhaps your parts and service managers will have a few ideas.
