Sequester Impact Determination Holding Up Some USDA Payments

March 11, 2013 10:13 PM
 

via a special arrangement with Informa Economics, Inc.

Agency studying which payments are impacted by the sequester


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


Payments under the Supplemental Revenue Assistance Program (SURE) and potentially other programs are on hold pending a review by USDA of what payments are subject to the sequester cuts, according to contacts.

The sequester order was signed March 8 and contacts advisee that no SURE payments are being issued and potentially other payments are also held up as USDA determines which payouts are subject to a sequester reduction.

USDA has been taking applications from producers since Oct. 2012 for SURE payments and those payouts are issued once the application has been approved. So far, some $835 million in SURE payments have been issued.

Here’s a look at estimated SURE payments for 2011 crops:

03 12 13 sure2011

Given that signup and payments have been ongoing since last fall, that would likely not exempt producers from a reduction related to the sequester, as contacts note that funds "overpaid" as a result of any sequester reduction could simply be subtracted from a future payment.

Direct and CCP example. Already, USDA has determined that if there are sequester-forced reductions to Direct and Countercyclical Payments (DCP), the timing of when producers enrolled for those payments would not matter relative to any reduction – i.e., if they had signed up to receive the payments prior to implementation of the sequester reductions. 


 

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


 

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