Ag economist says future of ad hoc farm payments unsure
By Julie Harker, Brownfield
November 13, 2020
An ag economist says the future of more special payments for farmers in 2021 is in question.
David Widmar, cofounder of Ag Economic Insights, says it’s important to remember that the farm economy wasn’t in good shape going into the trade war, which resulted in Market Facilitation Program Payments for farmers. Because of the pandemic, even bigger payments through the CFAP program have been issued. But, he says, things could quickly go back to normal…
“These are all ad hoc programs, for the most part. There’s a lot of ways of slicing the data but it looks like to us that without additional action by Congress or the USDA ad hoc programs are going to disappear and we could see something closer to $10-15 Billion dollars next year.” He says the recent ad hoc payments are on pace to reach $40-Billion dollars.
Widmar says it’s hard for producers to plan their budgets for 2021...
more, including audio [8:59 min.]