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Farm Bureau: CCC has ‘looming’ liquidity crisis
['Hagstrom Report']
The Fence Post
Newton wrote, “If the borrowing authority is not increased and CBO projections for farm program outlays are realized or climb even higher because of lower prices or revenues than currently projected, USDA could expend its borrowing authority under the CCC.
Recent years in which an anomaly was needed include fiscal years 2017, 2020 and 2021, when CCC expenditures approached the $30 billion borrowing authority.
“Absent an anomaly, i.e., early replenishment, USDA would need to prioritize or prorate program payment delivery.
This could result in farmers and ranchers receiving less than the full amount of commodity program or conservation program payments or even delaying the delivery of these program payments until after a replenishment has occurred.”
Agriculture Secretary Brooke Rollins has called on Congress to increase the CCC’s borrowing authority.