AFBF Analysis Details Concern About Available CCC Funds

ISSUES

Farm Policy Farm Bill

TOPICS

Farm Bill Farm Economy

John Newton, Ph.D.

Vice President of Public Policy and Economic Analysis

Chad Smith

Associate News Service Editor, NAFB

photo credit: North Carolina Farm Bureau, Used with Permission

John Newton, Ph.D.

Vice President of Public Policy and Economic Analysis

Chad Smith

Associate News Service Editor, NAFB

The Commodity Credit Corporation may soon fall short of funds, hindering farm safety net programs. Chad Smith has the details.

Smith: While increases in the farm safety net through the One Big, Beautiful Bill Act are welcome, there are concerns about USDA receiving enough funding for the safety net to work. John Newton, vice president of public policy with the American Farm Bureau Federation, says this is where the Commodity Credit Corporation comes into play.

Newton: For close to 100 years now, USDA has used the Commodity Credit Corporation to implement congressionally established programs, and today, those programs are really the Farm Bill programs that farmers and ranchers have come to depend on. All of those programs are funded through the Commodity Credit Corporation, which has a borrowing authority of $30 billion per year.

Smith: The improvements in the Farm Bill programs last year will likely cost more than the CCC’s defined limit.

Newton: We're going to approach the $30 billion borrowing authority pretty quickly, so it's renewed questions in policy circles on whether or not the borrowing authority needs to be increased. If the Commodity Credit Corporation doesn't have liquidity, USDA's hands are really tied.

Smith: Without an increase in the CCC borrowing limit, USDA would need to turn to Congress for the funding, which could lead to major road blocks for farmers and ranchers.

Newton: Potentially have to delay or prorate these important programs that farmers depend upon. Without additional borrowing authority and if USDA is out of liquidity, there's going to be some important policy decisions that need to be made, or Congress is going to have to step in and replenish the CCC.

Smith: Learn more on the Farm Bureau Intel page at fb.org. Chad Smith, Washington.

What We're Saying