The US government budget deal reached at the last minute late last week will provide the agricultural sector with $31 billion. Some of it is compensation for income losses, some is to make up for disaster losses.
The first has been budgeted for $10 billion, the second for $21 billion. The term of the old Farm Bill has also been extended until next spring.
The largest part of the support funds goes to arable farms. They are struggling with the consequences of bad weather conditions and falling product prices. Separate compensations per crop and per hectare have been set for them. A smaller part of the funds goes to livestock farms.
Although these are impressive amounts, agriculture has not been successful on all points. There has been a lot of lobbying for additional support for the cultivation of crops needed for the production of biofuel (E-150). This would require another $20 billion. However, this money is not forthcoming. President-elect Donald Trump wants to keep a tighter grip on the purse strings.
However, a new Farm Bill must be presented next spring by the president who has not yet been installed. This law will include new rules that ensure that farmers insure their crops more often and better against bad weather conditions. The government will then also have to spend less often on extra billions for emergency aid, it is expected.