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During the Trump administration, the USDA under the direction of former Secretary Sonny Perdue, got creative with the credit line to dole out Market Facilitation Program (MFP) trade mitigation payments and Coronavirus Food Assistance Program payments under the Trump administration. The actions by the Trump administration's USDA empowered the current administration's USDA to creatively use the agency's CCC authority to circumvent Congressional input. This week Secretary of Agriculture Tom Vilsack announced that within the spending authority of the Commodity Credit Corporation, the agency had enough funds to not only pay for the normal farm bill programs which are normally paid out of the CCC, but also use CCC funds to increase USDA's commitment to climate-smart agriculture, nearly tripling the previously announced investment of $1 billion to $3.5 billion for new pilot projects. [Extracted from the article]

Under a deal brokered under the United Nations and Turkey, leaders from Ukraine and Russia signed a deal to allow Ukrainian grain exports to resume. Mercy Corps Chief Executive Officer Tjada D'Oyen McKenna welcomed the deal, but also recognized it will not solve the global food catastrophe. "If respected and enacted in good faith, today's deal to protect Ukrainian grain exports through the Black Sea will help ease grain shortages, but let's be clear - this will not end or significantly alter the trajectory of the worsening global food crisis", McKenna says. [Extracted from the article]

But now the next challenge facing farmers is the realization that supply chains are falling apart and farmers are met with huge inflation and soaring costs of inputs. So as farmers are faced with the best of times and the worst of times, Henderson asked legislators: "Make sure that we're setting ourselves up for success to create a solid footing for the American farmer to stand on and make sure that we're not putting policy stumbling blocks in place", whether from Congress as well as the agencies. Then Henderson shares the Market Facilitation Program propped farmers back up for a bit. [Extracted from the article]

USDA and the U.S. Agency for International Development are taking the extraordinary step to draw down the full balance of the Bill Emerson Humanitarian Trust as part of an effort to provide $670 million in food assistance to countries in need as a result of Russia's invasion of Ukraine. "Russia's invasion of Ukraine has created unprecedented turmoil in agricultural commodity markets that have combined with underlying inflation to accelerate a food security crisis in many developing countries", Conner says. [Extracted from the article]

Where food insecurity exists today could be famine tomorrow as the Russia-Ukraine conflict brews the perfect storm in the Black Sea that could set the world on a further trajectory of increased food insecurity. USAID uses resources authorized under Title II of the Food for Peace Act and appropriated under the annual agriculture appropriations for both emergency and non-emergency food assistance programs. [Extracted from the article]

Where food insecurity exists today could be famine tomorrow as the Russia-Ukraine conflict brews the perfect storm in the Black Sea that could set the world on a further trajectory of increased food insecurity. USAID uses resources authorized under Title II of the Food for Peace Act and appropriated under the annual agriculture appropriations for both emergency and non-emergency food assistance programs. [Extracted from the article]

USDA has made over 20 announcements of significant resources of the pandemic assistance, according to Secretary of Agriculture Tom Vilsack. PLIP payments are calculated by multiplying the number of head of eligible livestock or poultry by the payment rate per head, and then subtracting the amount of any payments the eligible livestock or poultry owner has received for disposal of the livestock or poultry under the Natural Resources Conservation Service Environmental Quality Incentives Program or a state program. USDA announced Sept. 16 it is providing additional time for livestock and poultry producers to apply for the Pandemic Livestock Indemnity Program. [Extracted from the article]

Iowa and Minnesota legislators sent a letter to Ag Secretary Tom Vilsack asking the department to ensure swine producers and contract swine growers are eligible for the pandemic assistance Congress secured for them. We're concerned that USDA's announcement on June 15 - that described its intent to finalize this program within 60 days - only focused on poultry growers and made no mention of providing assistance to contract swine growers.". [Extracted from the article]

The bill provides $3.56 billion to support the Rural Development mission areas, including $700 million for the ReConnect Broadband Pilot, $450 million for rural water and waste programs, and $1.45 billion for rental assistance for affordable rental housing for low-income families and the elderly in rural communities. In action Monday, the Senate Appropriations subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies approved a budget of $25.855 billion, which is an increase of $2.5 billion above fiscal year 2021 enacted level, in discretionary funding to support federal agriculture and nutrition programs in Fiscal Year 2022. [Extracted from the article]

Eligible livestock and poultry include swine, chickens and turkeys, but pork producers are expected to be the primary recipients of the assistance. Livestock producers who had to euthanize animals during the pandemic will receive payments based on 80% of the fair market value, according to new details of the Pandemic Livestock Indemnity Program unveiled on July 13 by Secretary of Agriculture Tom Vilsack. Eligible livestock owners include persons or legal entities who, as of the day the eligible livestock was depopulated, had legal ownership of the livestock. [Extracted from the article]

A federal judge in Florida granted a nationwide injunction against the USDA's farm loan forgiveness program that was included in the American Recovery Act which offered $4 billion for loan forgiveness on 120% of outstanding USDA loans for Black farmers and other socially disadvantaged producers. White farmers claim left out Pacific Legal Foundation filed a lawsuit in May on behalf of a Florida farmer who was unable to apply for farm loan forgiveness because the program excludes those who are white. [Extracted from the article]

USDA says that it will move to strengthen and protect the country's food and agricultural supply chain with $4 billion in funding for expanding supply chain resilience allocated in the American Rescue Plan passed earlier in 2021. Additional USDA focus Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., praised USDA's steps toward as stronger supply chain. [Extracted from the article]

Related: USDA carbon bank still in its infancy Traditionally, the pool of CCC money allowed for USDA to pay farmers for farm bill programs. However, during the Trump administration, USDA began to utilize the authorization to aid farmers with the trade mitigation Market Facilitation Program payments as well as the COVID-aid provided with the Coronavirus Food Assistance Program payments. [Extracted from the article]

These updates include reopening CFAP 2, additional payments for eligible cattle and row crop producers, and the processing of payments for certain applications filed as part of CFAP Additional Assistance. Since the payment is a top-up for CFAP 2, the amount a producer can receive will be based on the CFAP 2 payment limitation, combining the initial payment received under CFAP 2 and PAP. Row crop producers get $20/acre boost Row crop farmers will receive $20 per eligible acre when payments begin next month based on their CFAP 2 application. [Extracted from the article]

Small meatpackers play a critical role in maintaining the U.S. food supply, as well as provide important markets for livestock producers and increase consumer access and options for locally sourced food. "Some of those are long-term investments to increase the resiliency of the food supply in the future, and some are short-term to provide immediate help and assistance", including funds to reduce overtime inspection fees paid by small meat and poultry processors. [Extracted from the article]

Future of food boxes No decision has been made yet on whether to extend the food box program which delivered over 140 million food boxes in 2020 after the pandemic hit. Through TEFAP, USDA purchases a variety of nutritious, high-quality USDA foods, and makes those foods available to state distributing agencies. [Extracted from the article]

Just as the current administration looks to evaluate policies of the past administration in distributing the Coronavirus Food Assistance Program payments, isn't it time all of Congress looks at where funds from the previous COVID packages are using allocated money before sending out more? "The proposals in the nearly $2 trillion package include sweeping policy changes that deserve thorough, bipartisan scrutiny at the committee level", according to an opinion piece penned by Sen. Mike Crapo, R-Idaho, and ranking member of the Senate Finance Committee. [Extracted from the article]

The House advanced its nearly $2 trillion COVID relief package on Friday which includes $5 billion to help farmers of color and $3.6 billion to make the food supply chain more resilient. The final House bill includes a provision raising the federal minimum wage to $15 per hour by 2025, even though the Senate parliamentarian ruled that the bill cannot include an increase of the federal minimum wage if Congress uses the budget reconciliation process. [Extracted from the article]

Alternative size standards government response to small businesses A major win in the update allows the PPP forgiveness amount. may qualify larger businesses, and interin the Paycheck Protection Program got a expenses paid by the PPP loan to be ested larger borrowers are encouraged to needed boost of funds. Takach Takach says this will be a big help, as accountants, NMPF says. ditional funds to meet the ongoing chal- says allowing the tax forgiveness on any the average size of the ag PPP loan was lenges of the coronavirus market impacts. [Extracted from the article]

Kauffman says exports to China did pick up significantly in 2020, and the pace of this growth will be important for measuring the persistence of strength in ag commodity markets going forward. "Cattle prices are relatively subdued compared with a year ago, and recognizing that not all industries will be in the same position even though we've seen a significant increase in prices in some markets that have supported the stronger credit conditions more recently", Kauffman says. Long-term outlook While opening up the ag outlook, USDA Chief Economist Seth Meyer says the longer-run outlook reflects decades-long trends in income growth and shifting dietary patterns toward an increasingly diverse set of crop and animal products, especially in developing countries. [Extracted from the article]

Both the House and Senate are out of session this week, but next week action will pick up considerably on several items of importance to those in agricultural sectors, including the potential full Senate vote on Secretary of Agriculture designee Tom Vilsack and the nomination hearing for U.S. Trade Representative nominee Katherine Tai. Tai hearing scheduled The Senate Finance Committee plans to hold its nomination hearing for the consideration of Tai to be the U.S. Trade Representative on Thursday, Feb. 25 at 10 a.m. ET. The House Agriculture Committee will take its first deep dive into climate change and the U.S. agriculture and forestry sectors in a hearing scheduled for Tuesday, Feb. 23 at 12:30 ET. [Extracted from the article]

As part of its reconciliation bill for additional coronavirus aid, the House and Senate each released details of the $16 billion for the agricultural portion of the bill. The loan forgiveness for Black farmers was debated intensively throughout the markup, with much of the discussion coming from Rep. Austin Scott, R-Ga., who says the funds would lead to reverse discrimination if USDA would forgive 120% of all outstanding USDA loans for farmers of color. [Extracted from the article]

Around 60,000 borrowers were approved for more than $5 billion in forgivable loans during the first week of the reopened Paycheck Protection Program, according to the Small Business Administration. "Prior to this newest PPP round, the SBA supported 5.2 million PPP loan borrowers, providing more than $525 billion in economic relief to small businesses and other eligible entities. [Extracted from the article]

In accordance with the White House memo, Regulatory Freeze Pending Review, USDA has suspended the processing and payments under the Coronavirus Food Assistance Program - Additional Assistance and has halted implementation until further notice. Related: USDA reconciles issues with CFAP The latest round allowed for payments to contract growers who were previously left out of initial rounds of CFAP aid, as well as adjusting some payment calculations. Duvall adds, "We recognize the new administration's desire to review important farmer and rancher assistance programs, and we urge USDA to take into consideration our comments on how to improve such programs. [Extracted from the article]

Incoming Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., laid out an ambitious agenda for the ag committee in a media call Thursday. Related: Vilsack nomination hearing scheduled for Feb. 2 Stabenow says both her and Boozman felt a "great sense of urgency" for the ag department to have its leadership team in place to move forward on a number of fronts. [Extracted from the article]

In one of many final actions heading out the door on Friday, the Trump administration's USDA made significant clarifications to the Coronavirus Food Assistance Program in hopes of widening the assistance available to agricultural producers. Swine producers with approved CFAP 1 applications will soon automatically receive a "top-up" payment of $17 per head increasing the total CFAP1 inventory payment to $34 per head. Additionally, FSA adjusted the payment calculation for certain row crops for CFAP 2, specifically those for which a producer had crop insurance coverage but not an available 2020 Actual Production History approved yield. [Extracted from the article]