AgWired

Many of the 1.7 million farms enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs will now be receiving safety-net payments, thanks to the down markets of 2015.

“This fall, USDA will be making more than $7 billion in payments under the ARC-County and PLC programs to assist participating producers, which will account for over 10 percent of USDA’s projected 2016 net farm income. These payments will help provide reassurance to America’s farm families, who are standing strong against low commodity prices compounded by unfavorable growing conditions in many parts of the country,” said Agriculture Secretary Tom Vilsack.

“At USDA, we are standing strong behind them, tapping in to every resource that we have to help. So far in 2016, this has included creating a one-time cost share program for cotton ginning, purchasing about $800 million in excess commodities to be redirected to food banks and those in need, making $11 million in payments to America’s dairy farmers through the Dairy Margin Protection Program, and reprogramming Farm Service Agency funds to expand credit options for farmers and ranchers in need of extra capital. As always, we continue to watch market conditions and will explore opportunities for further assistance in the coming months. For producers challenged by weather, disease and falling prices, we will continue to ensure the availability of a strong safety net to keep them farming or ranching.”

Unlike the old direct payment program, which issued payments during both weak and strong market conditions, the 2014 Farm Bill authorized the ARC-PLC safety net to trigger and provide financial assistance only when decreases in revenues or crop prices, respectively, occur. The ARC and PLC programs primarily allow producers to continue to produce for the market by making payments on a percentage of historical base production, limiting the impact on production decisions.

Nationwide, producers enrolled 96 percent of soybean base acres, 91 percent of corn base acres and 66 percent of wheat base acres in the ARC-County coverage option. Producers enrolled 99 percent of long grain rice and peanut base acres and 94 percent of medium grain rice base acres in the PLC option. Overall, 76 percent of participating farm base acres are enrolled in ARC-County, 23 percent in PLC and one percent in ARC-Individual. For other program information including frequently asked questions, visit www.fsa.usda.gov/arc-plc.

Payments will be made for acres of barley, corn, grain sorghum, lentils, lots, peanuts, dry peas, soybeans, wheat and canola.  Other commodity coverages will be announced in the upcoming months as the USDA’s National Agricultural Statistics Service compiles marketing year average prices.

The USDA has released a report showing the biobased products industry contributed $393 billion and 4.2 million jobs to the American economy in 2014.  That’s a growth of 220,000 jobs and $24 billion over 2013.

Agriculture Secretary Tom Vilsack has found the biobased economy to be one of the four pillars that support the rural economy of the U.S. “When USDA released the first-ever Economic Impact Analysis of the U.S. Biobased Products Industry last year, we were thrilled to see what a positive impact this sector was having on our economy, and this updated analysis shows that the sector is not just holding strong, but growing,” Vilsack said. “America has an appetite for everyday products-including plastic bottles, textiles, cleanings supplies and more-made from renewable sources, and that demand is fueling millions of jobs, bringing manufacturing back to our rural communities, and reducing our nation’s carbon footprint. As this sector is strengthening, so is the economy in rural America, where this year the unemployment rate dropped below six percent for the first time since 2007. USDA is proud to see such strong returns on our investment into the biobased products industry.”

This report is the second Economic Impact Analysis of the U.S. Biobased Products Industry released by USDA, and it analyzes revenue and jobs created by the biobased products industry at the national and state level in 2014. USDA released the first report of this kind last year, which analyzed the same information based on 2013 data. The new report shows that the industry directly supported 1.53 million jobs in 2014, with each job in the industry responsible for generating 1.76 jobs in other sectors. In 2013, the industry was found to contribute $369 billion and four million jobs to the U.S. economy.

Biobased materials also benefit the environment by reducing the use of fossil fuels and associated greenhouse gasses.  They can also be used in place of petroleum-based products, a resource that has been heavily relied upon for many years.  Biobased products currently replace the equivalent of 200,000 cars on the road each year.

The current BioPreferred Program was created by the 2002 Farm Bill and reauthorized and expanded in 2014.