USDA to Launch Second Stage of Supplemental Disaster Relief Program

The Agriculture Department is set to roll out the second stage of the Supplemental Disaster Relief Program (SDRP) soon. In a recent discussion, Richard Fordyce, the USDA Undersecretary for Farm Production and Conservation, provided insights on the program and addressed the anticipated trade aid payments from the administration.

Unpacking the SDRP Stage Two

Fordyce explained that the SDRP stage two announcement is the final component of the American Relief Act’s $30 billion allocated for agriculture. This program aims to support farmers who were uninsured, addressing what are termed “shallow losses,” which refers to losses that did not hit the indemnity threshold but were still significant.

“This program targets those crops that were underperforming but did not qualify for indemnity,” Fordyce stated, emphasizing that specialty crop producers, who often face unique challenges with insurance products, will significantly benefit from SDRP stage two.

Impact of Government Shutdown on Aid Rollout

Highlighting the complications caused by the long government shutdown, Fordyce noted that while some USDA staff were furloughed, efforts to finalize SDRP two continued. “We had staff exempt from furloughs who worked on regulations and program development,” he explained.

Training for county office staff on SDRP two is currently underway, with applications for the program expected to be accepted shortly after.

Market Facilitation Program Updates

In response to questions about the long-awaited market facilitation program to assist farmers with trade-related losses, Fordyce shared that discussions are ongoing. “We want any assistance to accurately reflect the current market dynamics,” he remarked, alluding to improvements in soybean prices following recent agreements with China.

US Farm Bureau Focus on Legislative Updates

Joby Young, the Executive Vice President at the American Farm Bureau Federation, emphasized the significance of the farm bill extension and highlighted the challenges still facing farmers, including declining commodity prices and rising input costs in the wake of the government shutdown.

Year-Round E15 and Renewable Volume Obligations

The biofuels sector is also navigating legislative changes, with a strong push for year-round E15. Emily Skor, CEO of Growth Energy, mentioned the burgeoning corn harvest and how it might prompt lawmakers to accelerate biofuel policy changes. “We need markets for U.S. farmers,” Skor urged, citing that E15 offers a lower-cost fuel option for consumers amid rising prices.

Influence of Trade Deals on Exports

In discussions surrounding the U.S.-China trade deal, Dan Halstrom, president and CEO of the U.S. Meat Export Federation, expressed cautious optimism. “While recent thawing relations are promising,” he noted, “we still face challenges related to plant registration and non-tariff issues that must be resolved.”

Thanksgiving Spending Trends

As Thanksgiving approaches, Young pointed out that Americans are on track to spend less on this year’s dinner, driven primarily by promotional pricing on turkeys. “We observed a 5% decline in prices, providing some relief for consumers,” he stated.

Conclusion

The upcoming weeks promise to be pivotal for the agriculture sector as the USDA prepares to launch disaster relief and potentially impactful trade programs. Stakeholder advocacy and active legislative discussions will shape the landscape for U.S. farmers in the months ahead.

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