Direct Payments to Be Cut 8.5% to Meet USDA Sequestration Target

March 20, 2013 09:51 AM
 

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FSA notifies Congress


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


USDA will cut direct payments coming in October by 8.5 percent to offset the required sequester savings, USDA's Farm Service Agency (FSA) informed Congress earlier this week.

"There is a 30-day Congressional notification period that must pass before we can move forward," wrote FSA Administrator Juan Garcia in an e-mail to staff. "Therefore, payments in the following programs will continue to be deferred for the next 30 days: 2011 Supplemental Revenue Assistance Payments Program (SURE), Noninsured Crop Disaster Assistance Program (NAP) for both 2012 and 2013 crop years, and the Milk Income Loss Contract Program (MILC). After 30 days, we intend to resume making these program payments in full."

The reduction to direct payments, according to Garcia, will "minimize disruption to farmers and ranchers who have already received and will soon be seeking disaster assistance through SURE or NAP. It will allow producers who suffered disasters to be fully paid, and it will avoid having to require about 350,000 producers to refund 5.1 percent of the payments they have already received. It will also prevent the Department from incurring a significant adminstrative burden that would be required to recoup these payments."


 

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 


 

 

 

 

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