At USDA’s 100th Agricultural Outlook Forum, Secretary Tom Vilsack again proposed innovative approaches, such as utilizing Commodity Credit Corporation (CCC) funds creatively, to address farm bill funding challenges without compromising other priorities. Vilsack highlighted the need to balance support for both production agriculture and smaller producers, rejecting the idea that farming success should solely be measured by expansion. He advocated for programs like the Partnerships for Climate-Smart Commodities (PCSC) to provide new revenue opportunities for all farmers.
Key farm-state lawmakers have not directly addressed Vilsack’s repeated overtures regarding tapping CCC as a farm bill revenue stream, dubbed as USDA’s ATM machine. “In the past, we figured out creative ways to use the CCC, but there has to be a willingness to be open to the conversation,” said Vilsack.
But some former USDA top economists addressed the topic during USDA’s Forum, with some advocating for Congress to reintroduce restrictions on USDA’s use of CCC, which grants broad authority to support farm income. Joe Glauber, former chief economist at USDA, highlighted the significant expansion of CCC usage under the Trump and Biden administrations since restrictions were lifted during the Obama era. Glauber emphasized the need for congressional oversight on CCC utilization. Bob Thompson, a Reagan administration official, described the CCC as a “license to steal,” advocating for overdue restrictions on its use. Similarly, Dan Sumner, who served in the George H.W. Bush administration, supported imposing limitations on the CCC. But Rob Johansson, former USDA chief economist during the Trump administration, urged caution, emphasizing CCC’s role in responding swiftly to unforeseen events like the trade war with China. Johansson suggested that while Congress may address concerns about CCC usage, it has allowed USDA to react promptly to situations beyond the scope of traditional farm bill provisions.
Vilsack complimented Senate Ag Committee Chair Debbie Stabenow (D-Mich.) for an imaginative proposal to provide higher levels of crop insurance coverage to row-crop growers if they forgo traditional crop subsidies. He also said that Senate Majority Leader Chuck Schumer (D-N.Y.) “says he’s going to bring $5 billion into the [farm] program… He’s obviously got a mechanism for getting those resources into the program outside of the [budget] baseline,” when asked about the reach of congressional accounting rules. “Where there’s a will, there’s a way,” he said.
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