FSA Reminds of 7.2% Sequester Cut for FY 2014

November 15, 2013 06:01 AM

USDA's Farm Service Agency today reminded farmers and ranchers who take part in FSA programs to plan accordingly relative to the automatic spending reductions (sequester) for Fiscal Year (FY) 2014. The Budget Control Act of 2011 mandates federal agencies mandate implement automatic, annual reductions to disretionary and mandatory spending limits.

Mandatory programs will be subject to a 7.2% cut in FY 2014. This includes the following programs:

  • Dairy Indemnity Payment Program; Marketing Assistance Loans
  • Loan Deficiency Payments
  • Sugar Loans
  • Noninsured Crop Disaster Assistance Program
  • Tobacco Transition Payment Program
  • 2013 Direct and Counter-Cyclical Payments
  • 2013 Average Crop Revenue Election Program
  • 2011 and 2012 Supplemental Revenue Assistance Program
  • Storage, handling; and Economic Adjustment Assistance for Upland Cotton


FSA also noted that Conservation Reserve Program (CRP) payments are specifically exempt by statute from sequestration, thus these payments will not be reduced.

"These sequester percentages reflect current law estimates; however with the continuing budget uncertainty, Congress still may adjust the exact percentage reduction. Today's announcement intends to help producers plan for the impact of sequestration cuts in FY 2014," said FSA Administrator Juan M. Garcia. "At this time, FSA is required to implement the sequester reductions. Due to the expiration of the Farm Bill on Sept. 30, FSA does not have the flexibility to cover these payment reductions in the same manner as in FY 2013. FSA will provide notification as early as practicable on the specific payment reductions. "

For information about FSA programs, visit your county USDA Service Center or go to www.fsa.usda.gov.

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