The American Relief Act of 2025 provides $31 billion in ad hoc disaster assistance for farmers. Farmdoc Daily says $20.78 billion will help farmers who suffered natural disasters in 2023 and 2024. The USDA hasn’t announced how the aid will be distributed.
The ARA also had another $10 billion in economic assistance payments that the Farm Service Agency will distribute early this year. Many farmers and lenders welcome the assistance, which can make planning and loan renewal easier for the upcoming growing season.
But Farmdoc points out there will be unintended consequences from federal aid. The aid will likely slow the cost adjustments that need to occur given the current low commodity price levels. The assistance may also make landowners less inclined to lower their cash rents. Also, input suppliers may see reduced pressures to lower the cost of inputs.
Farmdoc’s 2025 projections continue to show low returns this year.
NAFB news service
Comments