USDA farm policy one of ‘most significant reforms in decades’
The US Department of Agriculture (USDA) has unveiled programmes to help farmers manage risk, a move it describes as one of the most significant reforms to US farm programmes in decades.
"One of the Farm Bill's most significant reforms is finally taking effect," said secretary Tom Vilsack. "Farming is one of the riskiest businesses in the world. These new programmes help ensure that risk can be effectively managed so that families don't lose farms that have been passed down through generations because of events beyond their control.
“But unlike the old direct payment program, which paid farmers in good years and bad, these new initiatives are based on market forces and include county – and individual – coverage options. These reforms provide a much more rational approach to helping farmers manage risk."
The Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) offer farmers protection when market forces cause substantial drops in crop prices and/or revenues. Producers will have until spring 2015 to select which works best for their businesses.
USDA has helped create online tools that allow farmers to see projections about what each program will mean for them under possible scenarios.
