ANNOUNCEMENT 20 Dec 2018

In December 2018, the U.S. Administration signed into law the Agriculture Improvement Act, 2018 (farm bill) for the 2019-2023 federal fiscal years with an estimated total budget of USD 428 billion.  

 

NUMBER OF INTERVENTIONS

8

  • 6 harmful
  • 0 neutral
  • 2 liberalising

SOURCE

US Congress, Bills, H.R.2 - Agriculture Improvement Act of 2018. Available at: https://www.congress.gov/115/plaws/publ334/PLAW-115publ334.pdf

Inception date: 20 Dec 2018 | Removal date: 30 Sep 2023

State loan

On 20 December 2018, the U.S. Administration signed into law the Agriculture Improvement Act of 2018 (H.R. 133), also known as the 2018 Farm Bill, allocating USD 3 billion for direct loans per year through 2023. The loans are granted to US farmers.

The new bill states that USD 1.5 billion is allocated for farm ownership and USD 1.5 billion is allocated for operating loans. The new regulation also raised the maximum loan size for Farm Ownership Loans from USD 300,000 to USD 600,000 and for Operating Loans from USD 300,000 to USD 400,000.

For the individual product categories, loan rates under the sugar program, and marketing assistance loan rates for several crops including barley, corn, grain sorghum, oats, extra-long-staple cotton, rice, soybeans, dry peas, lentils, and small and large chickpeas are increased compared to the 2014 farm bill.

During the previous Farm Bill adopted in 2014, the total budget for loan authorizations was announced together with loan guarantees and it amounted to USD 4.226 billion per fiscal year. This amount has been increased to USD 10 billion per year in the FY2019-FY2023 period (please, see related state acts).

The 2018 Farm Bill authorizes agricultural and food policies under twelve titles through a variety of programs including commodity programs, crop insurance, conservation on agricultural land, domestic food assistance, agricultural trade promotion and international food aid, farm credit, rural development, agricultural research, forestry on private lands, horticulture and organic agriculture, and bioenergy (please, see related interventions). The 2018 farm bill builds upon the 2014 Farm Bill and in general, extends major programs through the FY2023.

AFFECTED PRODUCTS

 
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(+ 580 more)
Inception date: 20 Dec 2018 | Removal date: 30 Sep 2023

Loan guarantee

On 20 December 2018, the U.S. Administration enacted the Agriculture Improvement Act of 2018 (H.R. 133), also known as the 2018 Farm Bill, allocating USD 7 billion for loan guarantees per year through 2023. The loan guarantees are granted to US farmers.

The new bill states that a loan guarantee of USD 3.5 billion is allocated for farm ownership loans and USD a loan guarantee of 3.5 billion is allocated for operating loans. The new regulation also raised the maximum guarantee size for Farm Ownership Loans from USD 700,000 to USD 1.750,000 and for Operating Loans from USD 700,000 to USD 1.750,000.

During the previous Farm Bill adopted in 2014, the total budget for loan authorizations was announced together with loan guarantees and it amounted to USD 4.226 billion per fiscal year. This amount has been increased to USD 10 billion per year in the FY2019-FY2023 period (please, see related state acts).

The 2018 Farm Bill authorizes agricultural and food policies under twelve titles through a variety of programs including commodity programs, crop insurance, conservation on agricultural land, domestic food assistance, agricultural trade promotion and international food aid, farm credit, rural development, agricultural research, forestry on private lands, horticulture and organic agriculture, and bioenergy (please, see related interventions). The 2018 farm bill builds upon the 2014 Farm Bill and in general, extends major programs through the FY2023.

 
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(+ 580 more)
Inception date: 20 Dec 2018 | Removal date: 30 Sep 2023

Financial grant

On 20 December 2018, the U.S. Administration signed into law the Agriculture Improvement Act of 2018 (H.R. 133), also known as the 2018 Farm Bill, providing support for crop producers through crop commodity programs and dairy producers through dairy programs. 2018 Farm Bill allocated a total of USD 31.34 billion for commodity programs. Previously, the 2014 Farm Bill allocated a total of USD 23.56 billion for commodity programs.

Regardless of the planting decisions of the crop producers, the two largest crop programs, namely Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) make payments to farmers who have eligible historical base acres when prices and/or yields of covered commodities fall below a certain amount. For these programs, producers are not required to produce the commodities, payments are made on 85% of base acres. Covered commodities for PLC and ARC are wheat, corn, sorghum, barley, oats, seed cotton, long- and medium-grain rice, certain pulses, soybeans/other oilseeds, and peanuts. Compared to 2014 Farm Bill the conditions for crop commodity programs have been modified significantly with the new farm bill.

The 2018 farm bill also modified the dairy programs by replacing the Margin Protection Program for Dairy Producers (MPP-Dairy) with the Dairy Margin Coverage (DMC) program. This program provides margin protection for dairy producers between milk prices and feed costs. Payments are made on historical milk production. This program has also existed in the 2014 farm bill, but the conditions have been revised in the 2018 farm bill.

The 2018 Farm Bill authorizes agricultural and food policies under twelve titles through a variety of programs including commodity programs, crop insurance, conservation on agricultural land, domestic food assistance, agricultural trade promotion and international food aid, farm credit, rural development, agricultural research, forestry on private lands, horticulture and organic agriculture, and bioenergy (please, see related interventions). Under the 2018 Farm Bill, over 75% of the spending is allocated to nutrition assistance programs under the Nutrition title. The 2018 farm bill builds upon the 2014 Farm Bill and in general, extends major programs through the FY2023.

 
Inception date: 20 Dec 2018 | Removal date: 30 Sep 2023

Trade finance

On 20 December 2018, the U.S. Administration enacted the Agriculture Improvement Act of 2018 (2018 Farm Bill) providing funding under foreign market development and export promotion programs for US farmers for their activities in Cuba. More specifically, the 2018 Farm Bill allowed the Market Access Program (MAP) and the Foreign Market Development Cooperator Program (FMDP) to provide funding for activities in Cuba. Farm Bill allocated USD 200 million on MAP, and USD 34.5 million on FMDP, annually. These funding levels also reflect the 2014 farm bill funding levels.

Apart from including Cuba to market development and export promotion programs, the 2018 farm bill consolidated these programs into a new Agricultural Trade Promotion and Facilitation Program and gave greater flexibility to the Secretary of Agriculture in promoting trade. 2018 farm bill also reauthorized direct credits and export credit guarantees for the agricultural exports promotion to emerging markets for approximately USD 1 billion annually through 2023.

The 2018 Farm Bill authorizes agricultural and food policies under twelve titles through a variety of programs including commodity programs, crop insurance, conservation on agricultural land, domestic food assistance, agricultural trade promotion and international food aid, farm credit, rural development, agricultural research, forestry on private lands, horticulture and organic agriculture, and bioenergy (please, see related interventions). The 2018 farm bill builds upon the 2014 Farm Bill and in general, extends major programs through the FY2023.

 
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