Government Payments

Government Payments

David Sparks Ph.D.
David Sparks Ph.D.
Lord willing and the creek don't rise. That woeful yet familiar refrain typically refers to desperate situations and hope. Over the last several years, I kinda think that's how too many farmers have felt, between tariffs, higher input costs, crazy swings in commodity prices. But there has been a little help from our friends...the feds.

USDA's deputy chief economist Warren Preston says government payments have boosted farm income 42.5% from last year.

"Total direct payments to farmers are expected to increase compared to 2018. They are expected to total 19.5 billion dollars in 2019." He gives a breakdown. "Conservation related payments are estimated at 3.7 billion dollars. That's down 8.4% from last year. Those that are related to crop prices are estimated at 2.8 billion dollars, and that's down 12.4% from last year."

He says all other payments total around 13 billion dollars.

" A big part of that are the market facilitation payments due to the unfair trade retaliation and the tariffs imposed by our trading partners. Last year those market facilitation programs that were received by farmers in 2018 were 5.1 billion dollars. And for 2019, we're forecasting those market facilitation program payments at 10.7 billion dollars.

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