Blogging on bureaucracy, organizations, USDA, agriculture programs, American history, the food movement, and other interests. Often contrarian, usually optimistic, sometimes didactic, occasionally funny, rarely wrong, always a nitpicker.
USDA will provide $16 billion in direct payments to farmers and ranchers including:
$9.6 billion for the livestock industry
$5.1 billion for cattle
$2.9 billion for dairy
$1.6 billion for hogs
$3.9 billion for row crop producers
$2.1 billion for specialty crops producers
$500 million for others crops
Producers will receive a single payment determined using two calculations:
Price losses that occurred January 1-April 15, 2020. Producers will be compensated for 85% of price loss during that period.
Second part of the payment will be expected losses from April 15 through the next two quarters, and will cover 30% of expected losses.
The payment limit is $125,000 per commodity with an overall limit of $250,000 per individual or entity. Qualified commodities must have experienced a 5% price decrease between January and April.
USDA is expediting the rule making process for the direct payment program and expects to begin sign-up for the new program in early May and to get payments out to producers by the end of May or early June. "
Sounds as if this part of the program will be FSA's hot potato.