By Leah Douglas
(Reuters) - The U.S. Department of Agriculture will on Wednesday begin accepting applications from farmers affected by low commodity prices for economic aid passed by Congress last year, an agency official said on Tuesday.
The stop-gap government funding package passed by Congress last December included $10 billion for economic assistance, a supplement to existing farm subsidy programs that support U.S. crops.
U.S. farmers are struggling with slumping prices that have made some crops more expensive to plant than sell, and are expected to plant more corn this year in a bid to eke out a profit.
The Emergency Commodity Assistance Program will pay farmers a flat rate by acreage for eligible commodities like wheat, corn, barley, and oats, said Brooke Appleton, the USDA’s deputy under secretary for farm production and conservation, on a call with reporters.
Once farmers’ applications are approved, they will receive payments directly to their bank accounts within three business days on average, Appleton said.
Congress also passed $20 billion in farm aid for natural disasters in 2023 and 2024, and the USDA will release more details on that aid soon, which will include money for livestock losses due to drought and flood, Appleton said.
Farmers have taken economic hits in the early weeks of the Trump administration, including from a broad USDA spending freeze and potential market loss from tariffs.